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House Study Bill 137 - IntroducedA Bill ForAn Act 1relating to matters under the purview of the utilities
2division of the department of commerce.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ADMINISTRATION
3 Section 1. Section 476.2, Code 2021, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. The board shall have the authority
6to employ or appoint an independent administrative law judge
7to preside over any hearing or proceeding before the board.
8Sections 10A.801 and 17A.11 do not apply to the employment or
9appointment of an administrative law judge pursuant to this
10subsection.
11 Sec. 2. Section 476.10, subsection 1, paragraph b, Code
122021, is amended to read as follows:
13b. The board shall ascertain the total of the division’s
14expenses incurred during each fiscal year in the performance
15of its duties under law. The board shall add to the total of
16the division’s expenses the certified expenses of the consumer
17advocate as provided under section 475A.6. The board shall
18deduct all amounts charged directly to any person from the
19total expenses of the board and the consumer advocate. The
20board may assess the amount remaining after the deduction
21to all persons providing service over which the board has
22jurisdiction in proportion to the respective gross operating
23revenues of such persons from intrastate operations during the
24last calendar year over which the board has jurisdiction. For
25purposes of determining gross operating revenues under this
26section, the board shall not include gross receipts received
27by a cooperative corporation or association for wholesale
28transactions with members of the cooperative corporation
29or association, provided that the members are subject to
30assessment by the board based upon the members’ gross operating
31revenues, or provided that such a member is an association
32whose members are subject to assessment by the board based
33upon the members’ gross operating revenues. If any portion
34of the remainder can be identified with a specific type of
35utility service, the board shall assess those expenses only
-1-1to the entities providing that type of service over which the
2board has jurisdiction. The board may make the remainder
3assessments under this paragraph on a quarterly basis to some
4or all persons providing service over which the board has
5jurisdiction, based upon estimates of the expenditures for
6the fiscal year for the utilities division and the consumer
7advocate. Not more than ninety days following the close of the
8fiscal year, the utilities division shall conform the amount
9of the prior fiscal year’s assessments to the requirements of
10this paragraph. For gas and electric public utilities exempted
11from rate regulation pursuant to this chapter, the remainder
12assessments under this paragraph shall be computed at one-half
13the rate used in computing the assessment for other persons.
14DIVISION II
15PIPELINE
16 Sec. 3. Section 479.31, subsection 1, Code 2021, is amended
17to read as follows:
181. A person who violates this chapter or any rule or
19order issued pursuant to this chapter shall be subject to a
20civil penalty levied by the board not to exceed one hundred
21thousand dollars for each violation in accordance with 49
22C.F.R. §190.223. Each day that the violation continues shall
23constitute a separate offense. However, the maximum civil
24penalty shall not exceed one million dollars for any related
25series of violations. Civil penalties collected pursuant to
26this section shall be forwarded by the chief operating officer
27of the board to the treasurer of state to be credited to the
28general fund of the state and appropriated to the division of
29community action agencies of the department of human rights for
30purposes of the low income home energy assistance program and
31the weatherization assistance program.
32 Sec. 4. Section 479A.7, Code 2021, is amended to read as
33follows:
34479A.7 Annual inspection fee.
35A The board may, in accordance with section 476.10, charge
-2-1a pipeline company shall pay with an annual inspection fee of
2fifty cents per mile of pipeline or fraction thereof for each
3inch of diameter of the pipeline located in this state that
4is directly attributable to the costs of conducting annual
5inspections pursuant to this chapter. The annual inspection
6fee shall be paid for the calendar year in advance between
7January 1 and February 1 of each year.
8DIVISION III
9TELECOMMUNICATIONS SERVICES
10 Sec. 5. Section 34A.2, subsections 8 and 14, Code 2021, are
11amended to read as follows:
128. “Competitive local exchange service provider” means the
13same as defined in section 476.96 any person, including a
14municipal utility, that provides local exchange services, other
15than a local exchange carrier or a non-rate-regulated wireline
16provider of local exchange services.
1714. “Local exchange carrier” means the same as defined in
18section 476.96 any person that was the incumbent and historical
19rate-regulated wireline provider of local exchange services
20or any successor to such person that provides local exchange
21services.
22 Sec. 6. Section 423.3, subsection 47A, Code 2021, is amended
23to read as follows:
2447A. a. The sales price from the sale or rental of central
25office equipment or transmission equipment primarily used
26by local exchange carriers and competitive local exchange
27service providers as defined in section 476.96, Code 2017;
28by franchised cable television operators, mutual companies,
29municipal utilities, cooperatives, and companies furnishing
30communications services that are not subject to rate regulation
31as provided in chapter 476; by long distance companies as
32defined in section 477.10; or for a commercial mobile radio
33service as defined in 47 C.F.R. §20.3 in the furnishing of
34telecommunications services on a commercial basis.
35b. For the purposes of this subsection, “central:
-3- 1(1) “Centraloffice equipment” means equipment utilized
2in the initiating, processing, amplifying, switching, or
3monitoring of telecommunications services. “Central office
4equipment” also includes ancillary equipment and apparatus
5which support, regulate, control, repair, test, or enable such
6equipment to accomplish its function.
7(2) “Competitive local exchange service provider” means
8any person, including a municipal utility, that provides
9local exchange services, other than a local exchange carrier
10or a non-rate-regulated wireline provider of local exchange
11services.
12(3) “Local exchange carrier” means any person that was the
13incumbent and historical rate-regulated wireline provider of
14local exchange services or any successor to such person that
15provides local exchange services.
16(4) “Transmission equipment” means equipment utilized
17in the process of sending information from one location to
18another location. “Central office equipment” and “transmission
19 “Transmissionequipment” also include includes ancillary
20equipment and apparatus which support, regulate, control,
21repair, test, or enable such equipment to accomplish its
22function.
23 Sec. 7. Section 477C.7, subsection 2, Code 2021, is amended
24to read as follows:
252. The entities subject to assessment shall remit the
26assessed amounts quarterly, as determined by the board, to a
27special fund, as defined under section 8.2, subsection 9. The
28moneys in the fund are appropriated solely to plan, establish,
29administer, and promote the relay service and equipment
30distribution programs.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to matters under the purview of the
35utilities division of the department of commerce.
-4- 1The bill provides the Iowa utilities board with authority
2to employ or appoint an independent administrative law judge
3to preside over any hearing or proceeding before the board.
4Certain provisions applicable to the employment or appointment
5of administrative law judges by state agencies do not apply to
6appointments by the board.
7Current law requires the board to deduct all amounts charged
8directly to any person subject to the jurisdiction of the
9board for providing utility services from the total annual
10expenses of the board and the consumer advocate. The board may
11assess the remaining amount on a quarterly basis to all persons
12providing service over which the board has jurisdiction in
13proportion to their respective gross operating revenues. The
14bill strikes the requirement that these assessments be made on
15a quarterly basis and allows the board to make the assessments
16to some or all persons providing service over which the board
17has jurisdiction.
18Current law allows the board to impose a civil penalty of up
19to $100,000 for each violation of Code chapter 479, relating
20to pipelines and underground gas storage, or any rule or order
21issued pursuant to the Code chapter, provided that the maximum
22penalty does not exceed $1 million for any related series of
23violations. The bill removes these maximum amounts and instead
24provides that a civil penalty levied by the board shall be in
25accordance with specified federal law.
26Current law requires pipeline companies operating pipelines
27or underground gas storage under Code chapter 479A to pay the
28board an annual inspection fee of 50 cents for each mile of
29pipeline located in Iowa. The bill removes this set fee and
30instead allows the board to charge pipeline companies with
31annual inspection fees that are directly attributable to the
32costs of conducting inspections.
33The bill removes cross references in Code section 34A.2
34to repealed Code section 476.96, which included definitions
35for “competitive local exchange service provider” and “local
-5-1exchange carrier”, and provides new definitions for such terms.
2“Competitive local exchange service provider” is defined as
3any person, including a municipal utility, that provides
4local exchange services, other than a local exchange carrier
5or a non-rate-regulated wireline provider of local exchange
6services. “Local exchange carrier” is defined as any person
7that was the incumbent and historical rate-regulated wireline
8provider of local exchange services or any successor to such
9person that provides local exchange services.
10The bill amends Code section 423.3, subsection 47A, to
11modify the definitions of “central office equipment” and
12“transmission equipment”. The bill provides “central office
13equipment” includes ancillary equipment and apparatus which
14enable central office equipment to accomplish its function.
15Additionally, the bill provides “transmission equipment”,
16including ancillary equipment and apparatus which enable
17transmission equipment, to accomplish its function.
18The bill defines “competitive local exchange service
19provider”, for purposes of Code section 423.3, subsection 47A,
20as any person, including a municipal utility, that provides
21local exchange services, other than a local exchange carrier
22or a non-rate-regulated wireline provider of local exchange
23services. The bill defines “local exchange carrier”, for
24purposes of Code section 423.3, subsection 47A, as any person
25that was the incumbent and historical rate-regulated wireline
26provider of local exchange services or any successor to such
27person that provides local exchange services.
28Current law requires wireless carriers and wireline local
29exchange carriers providing telecommunications service in the
30state to remit the amounts assessed to fund the dual party
31relay service to a special fund on a quarterly basis. The bill
32provides that these remittances will be made as determined by
33the board.
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2division of the department of commerce.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ADMINISTRATION
3 Section 1. Section 476.2, Code 2021, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. The board shall have the authority
6to employ or appoint an independent administrative law judge
7to preside over any hearing or proceeding before the board.
8Sections 10A.801 and 17A.11 do not apply to the employment or
9appointment of an administrative law judge pursuant to this
10subsection.
11 Sec. 2. Section 476.10, subsection 1, paragraph b, Code
122021, is amended to read as follows:
13b. The board shall ascertain the total of the division’s
14expenses incurred during each fiscal year in the performance
15of its duties under law. The board shall add to the total of
16the division’s expenses the certified expenses of the consumer
17advocate as provided under section 475A.6. The board shall
18deduct all amounts charged directly to any person from the
19total expenses of the board and the consumer advocate. The
20board may assess the amount remaining after the deduction
21to all persons providing service over which the board has
22jurisdiction in proportion to the respective gross operating
23revenues of such persons from intrastate operations during the
24last calendar year over which the board has jurisdiction. For
25purposes of determining gross operating revenues under this
26section, the board shall not include gross receipts received
27by a cooperative corporation or association for wholesale
28transactions with members of the cooperative corporation
29or association, provided that the members are subject to
30assessment by the board based upon the members’ gross operating
31revenues, or provided that such a member is an association
32whose members are subject to assessment by the board based
33upon the members’ gross operating revenues. If any portion
34of the remainder can be identified with a specific type of
35utility service, the board shall assess those expenses only
-1-1to the entities providing that type of service over which the
2board has jurisdiction. The board may make the remainder
3assessments under this paragraph on a quarterly basis to some
4or all persons providing service over which the board has
5jurisdiction, based upon estimates of the expenditures for
6the fiscal year for the utilities division and the consumer
7advocate. Not more than ninety days following the close of the
8fiscal year, the utilities division shall conform the amount
9of the prior fiscal year’s assessments to the requirements of
10this paragraph. For gas and electric public utilities exempted
11from rate regulation pursuant to this chapter, the remainder
12assessments under this paragraph shall be computed at one-half
13the rate used in computing the assessment for other persons.
14DIVISION II
15PIPELINE
16 Sec. 3. Section 479.31, subsection 1, Code 2021, is amended
17to read as follows:
181. A person who violates this chapter or any rule or
19order issued pursuant to this chapter shall be subject to a
20civil penalty levied by the board not to exceed one hundred
21thousand dollars for each violation in accordance with 49
22C.F.R. §190.223. Each day that the violation continues shall
23constitute a separate offense. However, the maximum civil
24penalty shall not exceed one million dollars for any related
25series of violations. Civil penalties collected pursuant to
26this section shall be forwarded by the chief operating officer
27of the board to the treasurer of state to be credited to the
28general fund of the state and appropriated to the division of
29community action agencies of the department of human rights for
30purposes of the low income home energy assistance program and
31the weatherization assistance program.
32 Sec. 4. Section 479A.7, Code 2021, is amended to read as
33follows:
34479A.7 Annual inspection fee.
35A The board may, in accordance with section 476.10, charge
-2-1a pipeline company shall pay with an annual inspection fee of
2fifty cents per mile of pipeline or fraction thereof for each
3inch of diameter of the pipeline located in this state that
4is directly attributable to the costs of conducting annual
5inspections pursuant to this chapter. The annual inspection
6fee shall be paid for the calendar year in advance between
7January 1 and February 1 of each year.
8DIVISION III
9TELECOMMUNICATIONS SERVICES
10 Sec. 5. Section 34A.2, subsections 8 and 14, Code 2021, are
11amended to read as follows:
128. “Competitive local exchange service provider” means the
13same as defined in section 476.96 any person, including a
14municipal utility, that provides local exchange services, other
15than a local exchange carrier or a non-rate-regulated wireline
16provider of local exchange services.
1714. “Local exchange carrier” means the same as defined in
18section 476.96 any person that was the incumbent and historical
19rate-regulated wireline provider of local exchange services
20or any successor to such person that provides local exchange
21services.
22 Sec. 6. Section 423.3, subsection 47A, Code 2021, is amended
23to read as follows:
2447A. a. The sales price from the sale or rental of central
25office equipment or transmission equipment primarily used
26by local exchange carriers and competitive local exchange
27service providers as defined in section 476.96, Code 2017;
28by franchised cable television operators, mutual companies,
29municipal utilities, cooperatives, and companies furnishing
30communications services that are not subject to rate regulation
31as provided in chapter 476; by long distance companies as
32defined in section 477.10; or for a commercial mobile radio
33service as defined in 47 C.F.R. §20.3 in the furnishing of
34telecommunications services on a commercial basis.
35b. For the purposes of this subsection, “central:
-3- 1(1) “Centraloffice equipment” means equipment utilized
2in the initiating, processing, amplifying, switching, or
3monitoring of telecommunications services. “Central office
4equipment” also includes ancillary equipment and apparatus
5which support, regulate, control, repair, test, or enable such
6equipment to accomplish its function.
7(2) “Competitive local exchange service provider” means
8any person, including a municipal utility, that provides
9local exchange services, other than a local exchange carrier
10or a non-rate-regulated wireline provider of local exchange
11services.
12(3) “Local exchange carrier” means any person that was the
13incumbent and historical rate-regulated wireline provider of
14local exchange services or any successor to such person that
15provides local exchange services.
16(4) “Transmission equipment” means equipment utilized
17in the process of sending information from one location to
18another location. “Central office equipment” and “transmission
19 “Transmissionequipment” also include includes ancillary
20equipment and apparatus which support, regulate, control,
21repair, test, or enable such equipment to accomplish its
22function.
23 Sec. 7. Section 477C.7, subsection 2, Code 2021, is amended
24to read as follows:
252. The entities subject to assessment shall remit the
26assessed amounts quarterly, as determined by the board, to a
27special fund, as defined under section 8.2, subsection 9. The
28moneys in the fund are appropriated solely to plan, establish,
29administer, and promote the relay service and equipment
30distribution programs.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to matters under the purview of the
35utilities division of the department of commerce.
-4- 1The bill provides the Iowa utilities board with authority
2to employ or appoint an independent administrative law judge
3to preside over any hearing or proceeding before the board.
4Certain provisions applicable to the employment or appointment
5of administrative law judges by state agencies do not apply to
6appointments by the board.
7Current law requires the board to deduct all amounts charged
8directly to any person subject to the jurisdiction of the
9board for providing utility services from the total annual
10expenses of the board and the consumer advocate. The board may
11assess the remaining amount on a quarterly basis to all persons
12providing service over which the board has jurisdiction in
13proportion to their respective gross operating revenues. The
14bill strikes the requirement that these assessments be made on
15a quarterly basis and allows the board to make the assessments
16to some or all persons providing service over which the board
17has jurisdiction.
18Current law allows the board to impose a civil penalty of up
19to $100,000 for each violation of Code chapter 479, relating
20to pipelines and underground gas storage, or any rule or order
21issued pursuant to the Code chapter, provided that the maximum
22penalty does not exceed $1 million for any related series of
23violations. The bill removes these maximum amounts and instead
24provides that a civil penalty levied by the board shall be in
25accordance with specified federal law.
26Current law requires pipeline companies operating pipelines
27or underground gas storage under Code chapter 479A to pay the
28board an annual inspection fee of 50 cents for each mile of
29pipeline located in Iowa. The bill removes this set fee and
30instead allows the board to charge pipeline companies with
31annual inspection fees that are directly attributable to the
32costs of conducting inspections.
33The bill removes cross references in Code section 34A.2
34to repealed Code section 476.96, which included definitions
35for “competitive local exchange service provider” and “local
-5-1exchange carrier”, and provides new definitions for such terms.
2“Competitive local exchange service provider” is defined as
3any person, including a municipal utility, that provides
4local exchange services, other than a local exchange carrier
5or a non-rate-regulated wireline provider of local exchange
6services. “Local exchange carrier” is defined as any person
7that was the incumbent and historical rate-regulated wireline
8provider of local exchange services or any successor to such
9person that provides local exchange services.
10The bill amends Code section 423.3, subsection 47A, to
11modify the definitions of “central office equipment” and
12“transmission equipment”. The bill provides “central office
13equipment” includes ancillary equipment and apparatus which
14enable central office equipment to accomplish its function.
15Additionally, the bill provides “transmission equipment”,
16including ancillary equipment and apparatus which enable
17transmission equipment, to accomplish its function.
18The bill defines “competitive local exchange service
19provider”, for purposes of Code section 423.3, subsection 47A,
20as any person, including a municipal utility, that provides
21local exchange services, other than a local exchange carrier
22or a non-rate-regulated wireline provider of local exchange
23services. The bill defines “local exchange carrier”, for
24purposes of Code section 423.3, subsection 47A, as any person
25that was the incumbent and historical rate-regulated wireline
26provider of local exchange services or any successor to such
27person that provides local exchange services.
28Current law requires wireless carriers and wireline local
29exchange carriers providing telecommunications service in the
30state to remit the amounts assessed to fund the dual party
31relay service to a special fund on a quarterly basis. The bill
32provides that these remittances will be made as determined by
33the board.
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