HSB 589 (LSB 5627YC (2) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON BODEN)

A BILL FOR

An Act related to competitive information of city utilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 388.9, subsection 1, Code 2026, is amended to read as follows:
   1.  Notwithstanding section 21.5, subsection 1, the governing body of a city utility or combined utility system, or a city enterprise or combined city enterprise as defined in section 384.80, by a vote of two-thirds of the members of the body or all of the members present at the meeting, may hold a closed session to discuss proprietary information or marketing and pricing strategies or proprietary information if its the competitive position of the utility or a third party would be harmed by the public disclosure of the marketing and pricing strategies and such disclosure is not required of potential or actual competitors, and if no public purpose would be served by such disclosure or other utilities. The minutes and an audio or audiovisual recording of a session closed under this subsection shall be available for public examination at that point in time when the public disclosure would no longer harm the utility’s competitive position.
    Sec. 2.  Section 388.9, subsection 2, paragraph b, Code 2026, is amended to read as follows:
   b.  For purposes of this subsection section, “proprietary information” includes customer records that if disclosed would harm the competitive position of a customer or a utility; or information required by a noncustomer contracting party to be kept confidential pursuant to a nondisclosure agreement which relates related to electric transmission planning and construction, critical energy infrastructure, electric generation capacity planning, energy markets or prices, or an ownership interest or acquisition of an ownership interest in an electric generating facility, including but not limited to information required to be kept confidential pursuant to a nondisclosure agreement, or other information made confidential by law or rule.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Under current law, the governing body of a city utility or combined utility system, or a city enterprise or combined city enterprise, may vote to hold a closed session to discuss marketing and pricing strategies or proprietary information if its competitive position would be harmed by public disclosure not required of potential or actual competitors, and if no public purpose would be served by such disclosure. The minutes and an audio or audiovisual recording of the session shall be made available for public examination once the public disclosure would no longer harm the utility’s competitive position.
   This bill allows for a closed session by vote to discuss proprietary information or marketing and pricing strategies if the competitive position of the utility or a third party would be harmed by the public disclosure of the marketing and pricing strategies and such disclosure is not required of potential or actual competitors or other utilities.
   “Proprietary information” is currently defined, for purposes of Code section 388.9, subsection 2, as customer records that if disclosed would harm the competitive position of a customer, or information required by a noncustomer contracting party to be kept confidential pursuant to a nondisclosure agreement which relates to electric transmission planning and construction, critical energy infrastructure, an ownership interest or acquisition of an ownership interest in an electric generating facility, or other information made confidential by law or rule.
   The bill changes the definition of “proprietary information” to include customer records that if disclosed would harm the competitive position of a customer or a utility; or information related to electric transmission planning and construction, critical energy infrastructure, electric generation capacity planning, energy markets or prices, or an ownership interest or acquisition of an ownership interest in an electric generating facility, including but not limited to information required to be kept confidential pursuant to a nondisclosure agreement, or other information made confidential by law or rule. The bill applies this definition of proprietary information to all of Code section 388.9.