H.F. 2446 Section 1. Section 474.1, subsection 2, Code 2018, is 1 amended to read as follows: 2 2. a. The utilities board shall organize by appointing 3 an executive secretary, who shall take the same oath as the 4 members. The board shall set the salary of the executive 5 secretary within the limits of the pay plan for exempt 6 positions provided for in section 8A.413, subsection 3 , unless 7 otherwise provided by the general assembly. The board may 8 employ additional personnel as it finds necessary. Subject to 9 confirmation by the senate, the governor shall appoint a member 10 as the chairperson of the board. The chairperson shall be the 11 administrator of the utilities division. The appointment as 12 chairperson shall be for a two-year term which begins and ends 13 as provided in section 69.19 . 14 b. The board shall appoint a chief operating officer to 15 manage the operations of the utilities division as directed 16 by the board. The board shall set the salary of the chief 17 operating officer within the limits of the pay plan for exempt 18 positions provided for in section 8A.413, subsection 3, unless 19 otherwise provided by the general assembly. The board may 20 employ additional personnel as it finds necessary. 21 Sec. 2. Section 474.2, Code 2018, is amended to read as 22 follows: 23 474.2 Certain persons barred from office. 24 No person in the employ of any common carrier or other public 25 utility, or owning any bonds, stock or property in any railroad 26 company or other public utility shall be eligible to the office 27 of utilities board member or secretary chief operating officer 28 of the utilities board; and the entering into the employ of any 29 common carrier or other public utility or the acquiring of any 30 stock or other interest in any common carrier or other public 31 utility by such member or secretary chief operating officer 32 after appointment shall disqualify the member or secretary 33 chief operating officer to hold the office or perform the 34 duties thereof. 35 -1- HF 2446 (3) 87 gh/rn/md 1/ 14

H.F. 2446 Sec. 3. Section 474.8, Code 2018, is amended to read as 1 follows: 2 474.8 Office —— time employed —— expenses. 3 The utilities board shall have an office at the seat 4 of government and each member shall devote the member’s 5 whole time to the duties of the office, and the members and 6 secretary , chief operating officer, and other employees shall 7 receive their actual necessary traveling expenses while in 8 the discharge of their official duties away from the general 9 offices. 10 Sec. 4. Section 476.1, subsections 4 and 6, Code 2018, are 11 amended by striking the subsections. 12 Sec. 5. Section 476.1B, subsection 3, Code 2018, is amended 13 to read as follows: 14 3. Unless otherwise specifically provided by statute, a 15 municipally owned utility providing local exchange services 16 is not subject to regulation by the board under this chapter 17 except for regulatory action pertaining to the enforcement of 18 sections 476.11, 476.29, 476.95, 476.96, 476.100, 476.101, 19 476.95A, 476.95B, and 476.102. 20 Sec. 6. Section 476.1D, subsection 4, Code 2018, is amended 21 to read as follows: 22 4. Upon deregulation, all investment, revenues, and 23 expenses associated with the service or facility shall be 24 removed from the telephone utility’s regulated operations and 25 shall not be considered by the board in setting rates for the 26 telephone utility unless they continue to affect the utility’s 27 regulated operations. If the board considers investment, 28 revenues, and expenses associated with unregulated services 29 or facilities in setting rates for the telephone utility, the 30 board shall not use any profits or costs from such unregulated 31 services or facilities to determine the rates for regulated 32 services or facilities. This section does not preclude the 33 board from considering the investment, revenues, and expenses 34 associated with the sale of classified directory advertising 35 -2- HF 2446 (3) 87 gh/rn/md 2/ 14

H.F. 2446 by a telephone utility in determining rates for the telephone 1 utility. 2 Sec. 7. Section 476.1D, subsection 10, Code 2018, is amended 3 by striking the subsection. 4 Sec. 8. Section 476.2, subsection 6, Code 2018, is amended 5 by striking the subsection. 6 Sec. 9. Section 476.6, subsection 2, Code 2018, is amended 7 to read as follows: 8 2. Written notice of increase. All public utilities, 9 except those exempted from rate regulation by section 476.1 10 and telecommunications service providers registered pursuant 11 to section 476.95A , shall give written notice of a proposed 12 increase of any rate or charge to all affected customers served 13 by the public utility no more than sixty-two days prior to 14 and prior to the time the application for the increase is 15 filed with the board. Public utilities exempted from rate 16 regulation by section 476.1 , except telecommunications service 17 providers registered pursuant to section 476.95A, shall give 18 written notice of a proposed increase of any rate or charge to 19 all affected customers served by the public utility at least 20 thirty days prior to the effective date of the increase. If 21 the public utility is subject to rate regulation, the notice 22 to affected customers shall also state that the customer has 23 a right to file a written objection to the rate increase and 24 that the affected customers may request the board to hold a 25 public hearing to determine if the rate increase should be 26 allowed. The board shall prescribe the manner and method that 27 the written notice to each affected customer of the public 28 utility shall be served. 29 Sec. 10. Section 476.6, subsection 21, Code 2018, is amended 30 by striking the subsection. 31 Sec. 11. Section 476.9, subsections 1, 2, and 3, Code 2018, 32 are amended to read as follows: 33 1. Every public utility , except telecommunications service 34 providers registered pursuant to section 476.95A, shall keep 35 -3- HF 2446 (3) 87 gh/rn/md 3/ 14

H.F. 2446 and render to the board in the manner and form prescribed by 1 the board uniform accounts of all business transacted. 2 2. Every public utility engaged directly or indirectly in 3 any other business than that of the production, transmission, 4 or furnishing of heat, light, water, or power, or the 5 collection and treatment of sanitary sewage or storm water , or 6 the furnishing of communications services to for the public 7 shall, if required by the board, keep and render separately 8 to the board in like manner and form the accounts of all such 9 other business, in which case all the provisions of this 10 chapter shall apply to the books, accounts, papers and records 11 of such other business and all profits and losses may be taken 12 into consideration by the board if deemed relevant to the 13 general fiscal condition of the public utility. 14 3. Every public utility , except telecommunications service 15 providers registered pursuant to section 476.95A, is required 16 to keep and render its books, accounts, papers and records 17 accurately and faithfully in the manner and form prescribed 18 by the board, and to comply with all directions of the board 19 relating to such books, accounts, papers and records. 20 Sec. 12. Section 476.10, subsection 1, paragraph a, Code 21 2018, is amended to read as follows: 22 a. In order to carry out the duties imposed upon it by law, 23 the board may, at its discretion, allocate and charge directly 24 the expenses attributable to its duties to the person bringing 25 a proceeding before the board , or to persons participating in 26 matters before the board , or to persons subject to inspection 27 by the board . The board shall ascertain the certified expenses 28 incurred and directly chargeable by the consumer advocate 29 division of the department of justice in the performance of 30 its duties. The board and the consumer advocate separately 31 may decide not to charge expenses to persons who, without 32 expanding the scope of the proceeding or matter, intervene in 33 good faith in a board proceeding initiated by a person subject 34 to the board’s jurisdiction, the consumer advocate, or the 35 -4- HF 2446 (3) 87 gh/rn/md 4/ 14

H.F. 2446 board on its own motion. For assessments in any proceedings or 1 matters before the board, the board and the consumer advocate 2 separately may consider the financial resources of the person, 3 the impact of assessment on participation by intervenors, the 4 nature of the proceeding or matter, and the contribution of 5 a person’s participation to the public interest. The board 6 may present a bill for expenses under this subsection to the 7 person, either at the conclusion of a proceeding or matter, 8 or from time to time during its progress. Presentation of a 9 bill for expenses under this subsection constitutes notice of 10 direct assessment and request for payment in accordance with 11 this section . 12 Sec. 13. Section 476.20, Code 2018, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 6. This section shall not apply to 15 telecommunications service providers registered pursuant to 16 section 476.95A. 17 Sec. 14. Section 476.51, subsection 5, Code 2018, is amended 18 to read as follows: 19 5. Civil penalties collected pursuant to this section from 20 utilities providing water, electric, or gas service shall be 21 forwarded by the executive secretary chief operating officer 22 of the board to the treasurer of state to be credited to the 23 general fund of the state and to be used only for the low 24 income home energy assistance program and the weatherization 25 assistance program administered by the division of community 26 action agencies of the department of human rights. Civil 27 penalties collected pursuant to this section from utilities 28 providing telecommunications service shall be forwarded to 29 the treasurer of state to be credited to the department of 30 commerce revolving fund created in section 546.12 to be used 31 only for consumer education programs administered by the board. 32 Penalties paid by a rate-regulated public utility pursuant to 33 this section shall be excluded from the utility’s costs when 34 determining the utility’s revenue requirement, and shall not be 35 -5- HF 2446 (3) 87 gh/rn/md 5/ 14

H.F. 2446 included either directly or indirectly in the utility’s rates 1 or charges to customers. 2 Sec. 15. Section 476.53, subsection 3, paragraph c, 3 subparagraph (2), Code 2018, is amended to read as follows: 4 (2) The rate-regulated public utility has demonstrated to 5 the board that the public utility has considered other sources 6 for long-term electric supply and that the facility or lease is 7 reasonable when compared to other feasible alternative sources 8 of supply. The rate-regulated public utility may satisfy the 9 requirements of this subparagraph through a competitive bidding 10 process, under rules adopted by the board, that demonstrate 11 the facility or lease is a reasonable alternative to meet its 12 electric supply needs. 13 Sec. 16. Section 476.54, Code 2018, is amended to read as 14 follows: 15 476.54 Delayed payment charges. 16 A public utility shall not apply delayed payment charges 17 on a customer’s account if the scheduled payment was made by 18 the customer within twenty days from the date the billing was 19 sent to the customer. Delayed payment charges on a customer’s 20 account shall not exceed one and one-half percent per month 21 of the past-due amount. This section shall not apply to 22 telecommunications service providers registered pursuant to 23 section 476.95A. 24 Sec. 17. Section 476.95, Code 2018, is amended by striking 25 the section and inserting in lieu thereof the following: 26 476.95 Internet protocol-enabled service and voice over 27 internet protocol service —— regulation. 28 1. For purposes of this section: 29 a. “Internet protocol-enabled service” means any service, 30 capability, functionality, or application that uses internet 31 protocol or any successor protocol and enables an end user 32 to send or receive voice, data, or video communications in 33 internet protocol format or a successor format. 34 b. “Political subdivision” means the same as defined in 35 -6- HF 2446 (3) 87 gh/rn/md 6/ 14

H.F. 2446 section 145A.2. 1 c. “Voice over internet protocol service” means an internet 2 protocol-enabled service that facilitates real-time, two-way 3 voice communication that originates from, or terminates at, a 4 user’s location and permits the user to receive a call that 5 originates from the public switched telephone network and to 6 terminate a call on the public switched telephone network. 7 2. Notwithstanding any other provision of law to the 8 contrary, a department, agency, board, or political subdivision 9 of the state shall not regulate, by rule, order, or other means 10 directly or indirectly, the entry, rates, terms, or conditions 11 for internet protocol-enabled service or voice over internet 12 protocol service. 13 3. This section shall not be construed to affect, modify, 14 limit, or expand any of the following: 15 a. The authority of the attorney general to take any action 16 pursuant to chapter 537 or section 714.16. 17 b. The application or enforcement of any law that is 18 intended to have general application to the conduct of business 19 in this state. 20 c. Any entity’s obligation under section 251 or 252 of the 21 federal Telecommunications Act of 1996. 22 d. Any authority of the board over wholesale 23 telecommunications services, rates, agreements, 24 interconnection, providers, or tariffs. 25 e. Any authority of the board to address or affect the 26 resolution of a dispute regarding intercarrier compensation. 27 f. Any authority of the board, in accordance with state and 28 federal law, to assess voice over internet protocol service for 29 any of the following: 30 (1) Surcharges for 911 emergency services under section 31 34A.7. 32 (2) Assessments for dual party relay service under section 33 477C.7. 34 (3) Direct costs under section 476.10 and a share of 35 -7- HF 2446 (3) 87 gh/rn/md 7/ 14

H.F. 2446 remainder assessments that reflect the service’s lesser degree 1 of regulation. 2 g. Any authority of the board to regulate internet 3 protocol-enabled service or voice over internet protocol 4 service pursuant to section 476.91. 5 Sec. 18. NEW SECTION . 476.95A Annual registration for 6 telecommunications service providers. 7 1. A provider of telecommunications service, as defined in 8 section 476.103, offering telephone numbers to retail customers 9 in this state shall register annually with the board. 10 2. An applicant shall complete an application for 11 registration on a form provided by the board. The form shall 12 include contact information, the approximate number of service 13 lines provided in the state, and any other information deemed 14 necessary by the board. 15 3. Within five business days of the receipt of a completed 16 application for registration, the board shall issue a 17 nonexclusive acknowledgment of compliance with this section. 18 The acknowledgment shall authorize the registrant to obtain 19 telephone numbers, interconnect with other telecommunications 20 service providers, cross railroad rights-of-way pursuant to 21 section 476.27, and provide telecommunications service in this 22 state. An acknowledgment may be transferred by filing a new 23 or updated registration form. 24 4. A registrant shall submit to the board corrections 25 to the information supplied in the registration form 26 within a reasonable time after a change in circumstances, 27 which circumstances would be required to be reported in an 28 application for registration form. 29 5. Refusal to file and maintain an annual registration 30 pursuant to this section is a violation of this chapter and 31 may subject a telecommunications service provider to a civil 32 penalty pursuant to section 476.51. 33 6. Notwithstanding this subsection, the board shall 34 continue to recognize the validity of, and the rights conferred 35 -8- HF 2446 (3) 87 gh/rn/md 8/ 14

H.F. 2446 upon, a certificate of public convenience and necessity issued 1 to a telecommunications service provider by the board prior to 2 July 1, 2018. 3 Sec. 19. NEW SECTION . 476.95B Applicability of authority. 4 1. The board may exercise any powers reserved or delegated 5 to the state by the federal Telecommunications Act of 1996 6 or any other federal law, rule, or order thereunder, and may 7 hear and resolve any dispute arising thereunder, including but 8 not limited to intercarrier compensation, interconnection, and 9 number portability. 10 2. In proceedings under 47 U.S.C. §251-254, the board 11 shall allocate the costs and expenses of the proceedings to 12 persons identified as parties in the proceeding who are engaged 13 in or who seek to engage in providing telecommunications 14 service or other persons identified as participants in the 15 proceeding. The funds received for the costs and the expenses 16 shall be remitted to the treasurer of state for deposit in the 17 department of commerce revolving fund created in section 546.12 18 as provided in section 476.10. 19 Sec. 20. Section 476.102, subsection 2, paragraph d, Code 20 2018, is amended to read as follows: 21 d. The plan should be based on other principles as the board 22 determines are necessary and appropriate for the protection of 23 the public interest, convenience, and necessity and consistent 24 with the purposes of sections 476.95 through 476.101 and this 25 section . 26 Sec. 21. Section 476.103, subsection 4, paragraph c, Code 27 2018, is amended to read as follows: 28 c. A civil penalty collected pursuant to this subsection 29 shall be forwarded by the executive secretary chief operating 30 officer of the board to the treasurer of state to be credited 31 to the department of commerce revolving fund created in section 32 546.12 and to be used only for consumer education programs 33 administered by the board. 34 Sec. 22. Section 477A.3, subsection 1, paragraph f, Code 35 -9- HF 2446 (3) 87 gh/rn/md 9/ 14

H.F. 2446 2018, is amended to read as follows: 1 f. Documentation that the applicant possesses sufficient 2 managerial, technical, and financial capability to provide 3 the cable service or video service proposed in the service 4 area. An applicant or its subsidiary which has been issued 5 a certificate of public convenience and necessity to provide 6 telephone service pursuant to section 476.29 shall be exempt 7 from the provisions of this paragraph. 8 Sec. 23. Section 477C.7, Code 2018, is amended to read as 9 follows: 10 477C.7 Funding. 11 1. The board shall impose an annual assessment to fund the 12 programs described in this chapter upon all telecommunications 13 wireless carriers and wire-line local exchange carriers 14 providing telecommunications service in the state in the amount 15 of three cents per month for each telecommunications service 16 phone number provided in this state . 17 2. The total assessment shall be allocated as follows: 18 a. Wireless communications service providers shall be 19 assessed three cents per month for each wireless communications 20 service number provided in this state. 21 b. (1) The remainder of the assessment shall be allocated 22 one-half to local exchange telephone utilities and one-half to 23 the following: 24 (a) Interexchange carriers. 25 (b) Centralized equal access providers. 26 (c) Alternative operator services companies. 27 (2) The assessment shall be allocated proportionally based 28 upon revenues from all intrastate regulated, deregulated, and 29 exempt telephone services under sections 476.1 and 476.1D . 30 3. 2. The telecommunications carriers entities subject 31 to assessment shall remit the assessed amounts quarterly to a 32 special fund, as defined under section 8.2, subsection 9 . The 33 moneys in the fund are appropriated solely to plan, establish, 34 administer, and promote the relay service and equipment 35 -10- HF 2446 (3) 87 gh/rn/md 10/ 14

H.F. 2446 distribution programs. 1 4. 3. The telecommunications carriers entities subject to 2 assessment shall provide the information requested by the board 3 necessary for implementation of the assessment. 4 5. 4. The Wire-line local exchange telephone utilities 5 carriers shall not recover from intrastate access charges 6 any portion of such utilities assessment imposed under this 7 section . 8 Sec. 24. Section 478.29, subsection 1, Code 2018, is amended 9 to read as follows: 10 1. A person who violates a provision of this chapter is 11 subject to a civil penalty, which may be levied by the board, 12 of not more than one hundred dollars per violation or one 13 thousand dollars per day of a continuing violation, whichever 14 is greater. Civil penalties collected pursuant to this 15 section shall be forwarded by the executive secretary chief 16 operating officer of the board to the treasurer of state to be 17 credited to the general fund of the state and appropriated to 18 the division of community action agencies of the department 19 of human rights for purposes of the low income home energy 20 assistance program and the weatherization assistance program. 21 Sec. 25. Section 479.14, Code 2018, is amended to read as 22 follows: 23 479.14 Inspection fee. 24 A pipeline company shall pay an annual inspection fee of 25 fifty cents per mile of pipeline or fraction thereof for 26 each inch of diameter of the pipeline located in the state, 27 the inspection fee to be paid to the board for the calendar 28 year in advance between January 1 and February 1 of each year 29 The board may, in accordance with section 476.10, charge a 30 pipeline company with an annual inspection fee that is directly 31 attributable to the costs of conducting annual inspections 32 pursuant to this chapter . 33 Sec. 26. Section 479.31, subsection 1, Code 2018, is amended 34 to read as follows: 35 -11- HF 2446 (3) 87 gh/rn/md 11/ 14

H.F. 2446 1. A person who violates this chapter or any rule or order 1 issued pursuant to this chapter shall be subject to a civil 2 penalty levied by the board not to exceed one hundred thousand 3 dollars for each violation. Each day that the violation 4 continues shall constitute a separate offense. However, the 5 maximum civil penalty shall not exceed one million dollars for 6 any related series of violations. Civil penalties collected 7 pursuant to this section shall be forwarded by the executive 8 secretary chief operating officer of the board to the treasurer 9 of state to be credited to the general fund of the state and 10 appropriated to the division of community action agencies 11 of the department of human rights for purposes of the low 12 income home energy assistance program and the weatherization 13 assistance program. 14 Sec. 27. Section 479.46, subsection 6, Code 2018, is amended 15 to read as follows: 16 6. The pipeline company shall pay all costs of the 17 assessment made by the commissioners and reasonable attorney 18 fees and costs incurred by the landowner as determined by the 19 commissioners if the award of the commissioners exceeds one 20 hundred ten percent of the final offer of the pipeline company 21 prior to the determination of damages ; if the award does not 22 exceed one hundred ten percent, the landowners shall pay the 23 fees and costs incurred by the pipeline company . The pipeline 24 company shall file with the sheriff an affidavit setting forth 25 the most recent offer made to the landowner. Commissioners 26 shall receive a per diem of fifty dollars and actual and 27 necessary expenses incurred in the performance of their 28 official duties. The pipeline company shall also pay all costs 29 occasioned by the appeal, including reasonable attorney fees 30 to be taxed by the court, unless on the trial of the appeal the 31 same or a lesser amount of damages is awarded than was allowed 32 by the commission from which the appeal was taken. 33 Sec. 28. Section 479B.4, unnumbered paragraph 5, Code 2018, 34 is amended to read as follows: 35 -12- HF 2446 (3) 87 gh/rn/md 12/ 14

H.F. 2446 The notice shall set forth the following: the name of the 1 applicant, the applicant’s principal place of business, the 2 general description and purpose of the proposed project, the 3 general nature of the right-of-way desired, a map showing the 4 route or location of the proposed project, that the landowner 5 has a right to be present at the meeting and to file objections 6 with the board, and a designation of the time and place of the 7 meeting. The notice shall be sent by restricted certified 8 mail and shall be published once in a newspaper of general 9 circulation in the county not less than thirty days before 10 the date set for the meeting served by certified mail with 11 return receipt requested not less than thirty days previous 12 to the time set for the meeting, and shall be published once 13 in a newspaper of general circulation in the county . The 14 publication shall be considered notice to landowners whose 15 residence is not known and to each person in possession of or 16 residing on the property provided a good faith effort to notify 17 can be demonstrated by the pipeline company. 18 Sec. 29. Section 479B.21, subsection 1, Code 2018, is 19 amended to read as follows: 20 1. A person who violates this chapter or any rule or 21 order issued pursuant to this chapter shall be subject to a 22 civil penalty levied by the board in an amount not to exceed 23 one thousand dollars for each violation. Each day that the 24 violation continues shall constitute a separate offense. 25 However, the maximum civil penalty shall not exceed two hundred 26 thousand dollars for any related series of violations. Civil 27 penalties collected pursuant to this section shall be forwarded 28 by the executive secretary chief operating officer of the board 29 to the treasurer of state to be credited to the general fund 30 of the state and appropriated to the division of community 31 action agencies of the department of human rights for purposes 32 of the low income home energy assistance program and the 33 weatherization assistance program. 34 Sec. 30. Section 479B.30, subsection 6, Code 2018, is 35 -13- HF 2446 (3) 87 gh/rn/md 13/ 14

H.F. 2446 amended to read as follows: 1 6. The pipeline company shall pay all costs of the 2 assessment made by the commissioners and reasonable attorney 3 fees and costs incurred by the landowner as determined by the 4 commissioners if the award of the commissioners exceeds one 5 hundred ten percent of the final offer of the pipeline company 6 prior to the determination of damages ; if the award does not 7 exceed one hundred ten percent, the landowners shall pay the 8 fees and costs incurred by the pipeline company . The pipeline 9 company shall file with the sheriff an affidavit setting forth 10 the most recent offer made to the landowner. Commissioners 11 shall receive a per diem of fifty dollars and actual and 12 necessary expenses incurred in the performance of their 13 official duties. The pipeline company shall also pay all costs 14 occasioned by the appeal, including reasonable attorney fees 15 to be taxed by the court, unless on the trial of the appeal the 16 same or a lesser amount of damages is awarded than was allowed 17 by the commission from which the appeal was taken. 18 Sec. 31. Section 714H.4, subsection 1, paragraph d, Code 19 2018, is amended to read as follows: 20 d. The provision of local exchange carrier telephone service 21 pursuant to a certificate issued under section 476.29 . 22 Sec. 32. REPEAL. Sections 476.11, 476.57, 476.96, 476.100, 23 and 476.101, Code 2018, are repealed. 24 -14- HF 2446 (3) 87 gh/rn/md 14/ 14