SF 229 (LSB 2367XS (2) 91)

SENATE FILE 229

BY  SALMON, CAMPBELL, ALONS, GUTH, WESTRICH, and GREEN

A BILL FOR

An Act relating to the office of the consumer advocate.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.461, subsection 1, Code 2025, is amended to read as follows:
   1.  Unless otherwise provided by law, the governor shall establish a salary for nonelected persons appointed by the governor within the executive branch of state government. In establishing a salary for a person holding a position enumerated in subsection 3 within the range provided, the governor may consider, among other items, the experience of the person in the position, changes in the duties of the position, the incumbent’s performance of assigned duties, and subordinates’ salaries. However, the attorney general shall establish the salary of the consumer advocate, the chief justice of the supreme court shall establish the salary of the state court administrator, the ethics and campaign disclosure board shall establish the salary of the executive director, the Iowa public information board shall establish the salary of the executive director, the board of regents shall establish the salary of the executive director, and the Iowa public broadcasting board shall establish the salary of the administrator of the public broadcasting division of the department of education, each within the salary range provided in subsection 3.
    Sec. 2.  Section 12.91, subsection 1, paragraph b, Code 2025, is amended to read as follows:
   b.  “Chargeable expenses” means expenses charged by the utilities commission and the office of the consumer advocate division of the department of justice under section 476.10.
    Sec. 3.  Section 475A.1, subsection 1, Code 2025, is amended to read as follows:
   1.  Appointment.  The attorney general governor shall appoint the consumer advocate from among a list of three candidates submitted by a committee consisting of the secretary of agriculture, the auditor of state, and the treasurer of state, who shall serve at the pleasure of the attorney general, subject to confirmation by the senate, no less frequently than once every four years, in accordance with section 2.32 who shall serve a term of five years. The consumer advocate is the chief administrator of the office of the consumer advocate division of the department of justice. 
    Sec. 4.  Section 475A.1, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Reporting.  The consumer advocate shall regularly report to a committee consisting of the secretary of agriculture, the auditor of state, and the treasurer of state, regarding the activities of the consumer advocate.
    Sec. 5.  Section 475A.3, Code 2025, is amended to read as follows:
   475A.3  Office —— employees —— expenses.
   1.  Office.  The office of consumer advocate shall be a separate division of the department of justice and an independent agency located at the same location as the utilities commission. Administrative support services may be provided to the office of the consumer advocate division by the utilities commission.
   2.  Employees.  The attorney general consumer advocate may employ attorneys, legal assistants, secretaries, clerks, and other employees necessary for the full and efficient discharge of the duties and responsibilities of the office of the consumer advocate division. The consumer advocate may employ consultants as expert witnesses or technical advisors pursuant to contract as the consumer advocate finds necessary for the full and efficient discharge of the duties of the office. 
   3.  Salaries, expenses, and appropriation.  The salary of the consumer advocate shall be fixed by the attorney general governor within the salary range set by section 8A.461. The salaries of employees of the consumer advocate shall be at rates of compensation consistent with current standards in industry. The reimbursement of expenses for the employees and the consumer advocate is as provided by law. The appropriation for the office of consumer advocate shall be a separate line item contained in the appropriation from the commerce revolving fund created in section 546.12.
    Sec. 6.  Section 475A.6, subsection 2, Code 2025, is amended to read as follows:
   2.  The consumer advocate is entitled to notice and opportunity to be heard in any utilities commission proceeding on objection to an assessment for expenses certified by the consumer advocate. Expenses assessed under this section shall not exceed the amount appropriated for the office of the consumer advocate division of the department of justice.
    Sec. 7.  Section 476.10, subsection 1, paragraph a, Code 2025, is amended to read as follows:
   a.  In order to carry out the duties imposed upon it by law, the commission may, at its discretion, allocate and charge directly the expenses attributable to its duties to the person bringing a proceeding before the commission, to persons participating in matters before the commission, or to persons subject to inspection by the commission. The commission shall ascertain the certified expenses incurred and directly chargeable by the office of the consumer advocate division of the department of justice in the performance of its duties. The commission and the consumer advocate separately may decide not to charge expenses to persons who, without expanding the scope of the proceeding or matter, intervene in good faith in a commission proceeding initiated by a person subject to the commission’s jurisdiction, the consumer advocate, or the commission on its own motion. For assessments in any proceedings or matters before the commission, the commission and the consumer advocate separately may consider the financial resources of the person, the impact of assessment on participation by intervenors, the nature of the proceeding or matter, and the contribution of a person’s participation to the public interest. The commission may present a bill for expenses under this subsection to the person, either at the conclusion of a proceeding or matter, or from time to time during its progress. Presentation of a bill for expenses under this subsection constitutes notice of direct assessment and request for payment in accordance with this section.
    Sec. 8.  Section 476.10, subsection 4, paragraphs a and b, Code 2025, are amended to read as follows:
   a.  Fees paid to the utilities commission shall be deposited in the commerce revolving fund created in section 546.12. These funds shall be used for the payment, upon appropriation by the general assembly, of the expenses of the utilities commission and the office of the consumer advocate division of the department of justice.
   b.  The administrator and consumer advocate shall account for receipts and disbursements according to the separate duties imposed upon the utilities commission and the office of the consumer advocate division by the laws of this state and each separate duty shall be fiscally self-sustaining.
    Sec. 9.  Section 476.10B, subsections 1, 2, 5, and 7, Code 2025, are amended to read as follows:
   1.  For the purposes of this section, “building project expenses” means expenses that have been approved by the utilities commission for the building and related improvements and furnishings developed under this section and that are considered part of the regulatory expenses charged by the utilities commission and the office of the consumer advocate division of the department of justice for carrying out duties under section 476.10.
   2.  The department of administrative services, in consultation with the utilities commission and the office of the consumer advocate division of the department of justice, shall provide for the construction of a building to house the utilities commission and the office of the consumer advocate division of the department of justice. A building developed under this subsection shall be a model energy-efficient building that may be used as a public example for similar efforts. The building shall comply with the life cycle cost provisions developed pursuant to section 72.5. The building shall be located on the capitol complex grounds or at another convenient location in the vicinity of the capitol complex grounds.
   5.  A cost-effective approach for financing construction of the building shall be utilized, which may include but is not limited to lease, lease-purchase, bonding, or installment acquisition arrangement, or a financing arrangement under section 12.28. If financing for the building is implemented under section 12.28, the limitation on principal under that section does not apply. This subsection is not a qualification of any other powers which the utilities commission and the office of the consumer advocate division of the department of justice may possess and the authorizations and powers granted under this subsection are not subject to the terms, requirements, or limitations of any other provisions of law. The department of administrative services must comply with the provisions of section 12.28 when entering into financing agreements for the purchase of real or personal property.
   7.  The department of administrative services, in consultation with the utilities commission and the office of the consumer advocate division of the department of justice, shall secure architectural services, contract for construction, engineering, and construction oversight and management, and control the funding associated with the building construction and the building’s operation and maintenance. The department of administrative services may utilize consultants or other expert assistance to address feasibility, planning, or other considerations connected with construction of the building or decision making regarding the building. The department of administrative services, on behalf of the utilities commission and the office of the consumer advocate division of the department of justice, shall consult with the office of the governor, appropriate legislative bodies, and the capitol planning commission.
    Sec. 10.  TRANSITION PROVISIONS.  Notwithstanding any other provision of law to the contrary, the term of office of the consumer advocate serving immediately prior to the effective date of this Act shall terminate on the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the office of the consumer advocate. The bill changes the office of the consumer advocate from a division of the department of justice to an independent agency. The bill requires the consumer advocate to be appointed by the governor, subject to confirmation by the senate, from a list of three candidates provided by a committee consisting of the secretary of agriculture, the auditor of state, and the treasurer of state. The consumer advocate shall serve a term of five years and shall regularly report to a committee consisting of the secretary of agriculture, the auditor of state, and the treasurer of state, regarding the activities of the consumer advocate. The bill makes conforming changes, including by removing the authority of the attorney general to set the salary of the consumer advocate and employ staff to support the office of the consumer advocate. The bill terminates the term of office of the person serving as the consumer advocate immediately prior to the effective date of the bill on the effective date of the bill.