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Senate File 401 - IntroducedA Bill ForAn Act 1relating to the imposition of certain fees on public
2utilities for the use of public rights-of-way.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 480A.2, subsection 2, Code 2019, is
2amended to read as follows:
32. “Management costs” means the reasonable, direct, and
4fully documented costs a local government actually incurs in
5managing to manage public rights-of-way.
6 Sec. 2. Section 480A.3, Code 2019, is amended to read as
7follows:
8480A.3 Fees.
91. A local government shall not recover any fee from a
10public utility for the use of its available right-of-way, other
11than a permit fee for its management costs attributable to
12the public utility’s requested use of the local government’s
13right-of-way. A local government may recover from a public
14utility only those management costs caused by the public
15utility’s activity in the public right-of-way. A fee or
16other obligation under this section shall be imposed on
17a competitively neutral basis. When a local government’s
18management costs cannot be attributed to only one entity,
19those costs shall be allocated among all users of the public
20rights-of-way, including the local government itself. The
21allocation shall reflect proportionately the costs incurred by
22the local government as a result of the various types of uses
23of the public rights-of-way.
242. This section does not prohibit:
25a. Prohibitthe collection of a franchise fee as permitted
26in section 480A.6.
27b. Prohibit voluntary agreements between a public utility
28and local government to share services for the purpose of
29reducing costs and preserving public rights-of-way for future
30public safety purposes.
31 Sec. 3. Section 480A.4, Code 2019, is amended to read as
32follows:
33480A.4 In-kind services.
34A local government, in lieu of a fee imposed under this
35chapter, shall not require in-kind services by a public utility
-1-1right-of-way user, or require in-kind services as a condition
2of the use of the local government’s public right-of-way,
3unless pursuant to a voluntary agreement between a public
4utility and local government to share services for the purpose
5of reducing costs and preserving public rights-of-way for
6future public safety purposes.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to certain fees imposed on public
11utilities for the use of public rights-of-way. Code chapter
12480A allows local governments to impose certain fees on public
13utilities for operating public utility facilities in public
14rights-of-way. A local government may only impose a fee for
15management costs, as defined, that are caused by the public
16utility’s activity in the right-of-way, and cannot require
17in-kind services in lieu of a fee.
18The bill modifies the definition of “management costs” in
19Code chapter 480A to provide that such costs must be direct and
20fully documented. The bill specifies that a local government
21may only recover a permit fee for management costs attributable
22to the public utility’s requested use of an available public
23right-of-way, instead of management costs caused by the
24public utility’s activity in the right-of-way. The bill
25provides that Code section 480A.3, relating to permissible
26fees imposed on public utilities, shall not prohibit voluntary
27agreements between a public utility and local government to
28share services for the purpose of reducing costs and preserving
29public rights-of-way for future public safety purposes, and
30allows in-kind services in lieu of a fee if pursuant to such a
31voluntary agreement.
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2utilities for the use of public rights-of-way.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 480A.2, subsection 2, Code 2019, is
2amended to read as follows:
32. “Management costs” means the reasonable, direct, and
4fully documented costs a local government actually incurs in
5managing to manage public rights-of-way.
6 Sec. 2. Section 480A.3, Code 2019, is amended to read as
7follows:
8480A.3 Fees.
91. A local government shall not recover any fee from a
10public utility for the use of its available right-of-way, other
11than a permit fee for its management costs attributable to
12the public utility’s requested use of the local government’s
13right-of-way. A local government may recover from a public
14utility only those management costs caused by the public
15utility’s activity in the public right-of-way. A fee or
16other obligation under this section shall be imposed on
17a competitively neutral basis. When a local government’s
18management costs cannot be attributed to only one entity,
19those costs shall be allocated among all users of the public
20rights-of-way, including the local government itself. The
21allocation shall reflect proportionately the costs incurred by
22the local government as a result of the various types of uses
23of the public rights-of-way.
242. This section does not prohibit:
25a. Prohibitthe collection of a franchise fee as permitted
26in section 480A.6.
27b. Prohibit voluntary agreements between a public utility
28and local government to share services for the purpose of
29reducing costs and preserving public rights-of-way for future
30public safety purposes.
31 Sec. 3. Section 480A.4, Code 2019, is amended to read as
32follows:
33480A.4 In-kind services.
34A local government, in lieu of a fee imposed under this
35chapter, shall not require in-kind services by a public utility
-1-1right-of-way user, or require in-kind services as a condition
2of the use of the local government’s public right-of-way,
3unless pursuant to a voluntary agreement between a public
4utility and local government to share services for the purpose
5of reducing costs and preserving public rights-of-way for
6future public safety purposes.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to certain fees imposed on public
11utilities for the use of public rights-of-way. Code chapter
12480A allows local governments to impose certain fees on public
13utilities for operating public utility facilities in public
14rights-of-way. A local government may only impose a fee for
15management costs, as defined, that are caused by the public
16utility’s activity in the right-of-way, and cannot require
17in-kind services in lieu of a fee.
18The bill modifies the definition of “management costs” in
19Code chapter 480A to provide that such costs must be direct and
20fully documented. The bill specifies that a local government
21may only recover a permit fee for management costs attributable
22to the public utility’s requested use of an available public
23right-of-way, instead of management costs caused by the
24public utility’s activity in the right-of-way. The bill
25provides that Code section 480A.3, relating to permissible
26fees imposed on public utilities, shall not prohibit voluntary
27agreements between a public utility and local government to
28share services for the purpose of reducing costs and preserving
29public rights-of-way for future public safety purposes, and
30allows in-kind services in lieu of a fee if pursuant to such a
31voluntary agreement.
-2-gh/rn