House File 2446 - IntroducedA Bill ForAn Act 1relating to matters under the purview of the utilities
2division of the department of commerce, providing fees, and
3making penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 474.1, subsection 2, Code 2018, is
2amended to read as follows:
   32.    a.  The utilities board shall organize by appointing
4an executive secretary, who shall take the same oath as the
5members. The board shall set the salary of the executive
6secretary within the limits of the pay plan for exempt
7positions provided for in section 8A.413, subsection 3, unless
8otherwise provided by the general assembly. The board may
9employ additional personnel as it finds necessary.
Subject to
10confirmation by the senate, the governor shall appoint a member
11as the chairperson of the board. The chairperson shall be the
12administrator of the utilities division. The appointment as
13chairperson shall be for a two-year term which begins and ends
14as provided in section 69.19.
   15b.  The board shall appoint a chief operating officer to
16manage the operations of the utilities division as directed
17by the board. The board shall set the salary of the chief
18operating officer within the limits of the pay plan for exempt
19positions provided for in section 8A.413, subsection 3, unless
20otherwise provided by the general assembly. The board may
21employ additional personnel as it finds necessary.
22   Sec. 2.  Section 474.2, Code 2018, is amended to read as
23follows:
   24474.2  Certain persons barred from office.
   25No person in the employ of any common carrier or other public
26utility, or owning any bonds, stock or property in any railroad
27company or other
public utility shall be eligible to the office
28of utilities board member or secretary chief operating officer
29 of the utilities board; and the entering into the employ of any
30common carrier or other public utility or the acquiring of any
31stock or other interest in any common carrier or other public
32utility by such member or secretary chief operating officer
33 after appointment shall disqualify the member or secretary
34
 chief operating officer to hold the office or perform the
35duties thereof.
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1   Sec. 3.  Section 474.8, Code 2018, is amended to read as
2follows:
   3474.8  Office — time employed — expenses.
   4The utilities board shall have an office at the seat
5of government and each member shall devote the member’s
6whole time to the duties of the office, and the members and
7secretary
, chief operating officer, and other employees shall
8receive their actual necessary traveling expenses while in
9the discharge of their official duties away from the general
10offices.
11   Sec. 4.  Section 476.1B, subsection 3, Code 2018, is amended
12to read as follows:
   133.  Unless otherwise specifically provided by statute, a
14municipally owned utility providing local exchange services
15is not subject to regulation by the board under this chapter
16except for regulatory action pertaining to the enforcement of
17sections 476.11, 476.29, 476.95, 476.95A, 476.96, 476.100,
18476.101, and 476.102.
19   Sec. 5.  Section 476.1D, subsection 10, paragraph b, Code
202018, is amended to read as follows:
   21b.  The board shall promptly notify the director of revenue
22that a long distance telephone company has been classified
23as a competitive long distance telephone company. Upon such
24notification by the board, the director of revenue shall assess
25the property of such competitive long distance telephone
26company, which property is first assessed for taxation in this
27state on or after January 1, 1996, in the same manner as all
28other property assessed as commercial property by the local
29assessor under chapters 427, 427A, 427B, 428, and 441. As used
30in this section, “long distance telephone company” means an
31entity that provides telephone service and facilities between
32local exchanges, but does not include a cellular service
33provider or a local exchange utility holding a certificate
34issued under section 476.29, subsection 12
.
35   Sec. 6.  Section 476.2, subsection 6, Code 2018, is amended
-2-1by striking the subsection.
2   Sec. 7.  Section 476.6, subsection 21, Code 2018, is amended
3by striking the subsection.
4   Sec. 8.  Section 476.10, subsection 1, paragraph a, Code
52018, is amended to read as follows:
   6a.  In order to carry out the duties imposed upon it by law,
7the board may, at its discretion, allocate and charge directly
8the expenses attributable to its duties to the person bringing
9a proceeding before the board, or to persons participating in
10matters before the board, or to persons subject to inspection
11by the board
. The board shall ascertain the certified expenses
12incurred and directly chargeable by the consumer advocate
13division of the department of justice in the performance of
14its duties. The board and the consumer advocate separately
15may decide not to charge expenses to persons who, without
16expanding the scope of the proceeding or matter, intervene in
17good faith in a board proceeding initiated by a person subject
18to the board’s jurisdiction, the consumer advocate, or the
19board on its own motion. For assessments in any proceedings or
20matters before the board, the board and the consumer advocate
21separately may consider the financial resources of the person,
22the impact of assessment on participation by intervenors, the
23nature of the proceeding or matter, and the contribution of
24a person’s participation to the public interest. The board
25may present a bill for expenses under this subsection to the
26person, either at the conclusion of a proceeding or matter,
27or from time to time during its progress. Presentation of a
28bill for expenses under this subsection constitutes notice of
29direct assessment and request for payment in accordance with
30this section.
31   Sec. 9.  Section 476.51, subsection 5, Code 2018, is amended
32to read as follows:
   335.  Civil penalties collected pursuant to this section from
34utilities providing water, electric, or gas service shall be
35forwarded by the executive secretary chief operating officer
-3-1 of the board to the treasurer of state to be credited to the
2general fund of the state and to be used only for the low
3income home energy assistance program and the weatherization
4assistance program administered by the division of community
5action agencies of the department of human rights. Civil
6penalties collected pursuant to this section from utilities
7providing telecommunications service shall be forwarded to
8the treasurer of state to be credited to the department of
9commerce revolving fund created in section 546.12 to be used
10only for consumer education programs administered by the board.
11Penalties paid by a rate-regulated public utility pursuant to
12this section shall be excluded from the utility’s costs when
13determining the utility’s revenue requirement, and shall not be
14included either directly or indirectly in the utility’s rates
15or charges to customers.
16   Sec. 10.  Section 476.53, subsection 3, paragraph c,
17subparagraph (2), Code 2018, is amended to read as follows:
   18(2)  The rate-regulated public utility has demonstrated to
19the board that the public utility has considered other sources
20for long-term electric supply and that the facility or lease is
21reasonable when compared to other feasible alternative sources
22of supply. The rate-regulated public utility may satisfy the
23requirements of this subparagraph through a competitive bidding
24process, under rules adopted by the board, that demonstrate
25the facility or lease is a reasonable alternative to meet its
26electric supply needs.

27   Sec. 11.  Section 476.103, subsection 4, paragraph c, Code
282018, is amended to read as follows:
   29c.  A civil penalty collected pursuant to this subsection
30shall be forwarded by the executive secretary chief operating
31officer
of the board to the treasurer of state to be credited
32to the department of commerce revolving fund created in section
33546.12 and to be used only for consumer education programs
34administered by the board.
35   Sec. 12.  Section 478.29, subsection 1, Code 2018, is amended
-4-1to read as follows:
   21.  A person who violates a provision of this chapter is
3subject to a civil penalty, which may be levied by the board,
4of not more than one hundred dollars per violation or one
5thousand dollars per day of a continuing violation, whichever
6is greater. Civil penalties collected pursuant to this
7section shall be forwarded by the executive secretary chief
8operating officer
of the board to the treasurer of state to be
9credited to the general fund of the state and appropriated to
10the division of community action agencies of the department
11of human rights for purposes of the low income home energy
12assistance program and the weatherization assistance program.
13   Sec. 13.  Section 479.14, Code 2018, is amended to read as
14follows:
   15479.14  Inspection fee.
   16A pipeline company shall pay an annual inspection fee of
17fifty cents per mile of pipeline or fraction thereof for
18each inch of diameter of the pipeline located in the state,
19the inspection fee to be paid to the board for the calendar
20year in advance between January 1 and February 1 of each year
21
 The board may, in accordance with section 476.10, charge a
22pipeline company with an annual inspection fee that is directly
23attributable to the costs of conducting annual inspections
24pursuant to this chapter
.
25   Sec. 14.  Section 479.31, subsection 1, Code 2018, is amended
26to read as follows:
   271.  A person who violates this chapter or any rule or order
28issued pursuant to this chapter shall be subject to a civil
29penalty levied by the board not to exceed one hundred thousand
30dollars for each violation. Each day that the violation
31continues shall constitute a separate offense. However, the
32maximum civil penalty shall not exceed one million dollars for
33any related series of violations. Civil penalties collected
34pursuant to this section shall be forwarded by the executive
35secretary
 chief operating officer of the board to the treasurer
-5-1of state to be credited to the general fund of the state and
2appropriated to the division of community action agencies
3of the department of human rights for purposes of the low
4income home energy assistance program and the weatherization
5assistance program.
6   Sec. 15.  Section 479.46, subsection 6, Code 2018, is amended
7to read as follows:
   86.  The pipeline company shall pay all costs of the
9assessment made by the commissioners and reasonable attorney
10fees and costs incurred by the landowner as determined by the
11commissioners if the award of the commissioners exceeds one
12hundred ten percent of the final offer of the pipeline company
13prior to the determination of damages; if the award does not
14exceed one hundred ten percent, the landowners shall pay the
15fees and costs incurred by the pipeline company
. The pipeline
16company shall file with the sheriff an affidavit setting forth
17the most recent offer made to the landowner. Commissioners
18shall receive a per diem of fifty dollars and actual and
19necessary expenses incurred in the performance of their
20official duties. The pipeline company shall also pay all costs
21occasioned by the appeal, including reasonable attorney fees
22to be taxed by the court, unless on the trial of the appeal the
23same or a lesser amount of damages is awarded than was allowed
24by the commission from which the appeal was taken.
25   Sec. 16.  Section 479B.4, unnumbered paragraph 5, Code 2018,
26is amended to read as follows:
   27The notice shall set forth the following: the name of the
28applicant, the applicant’s principal place of business, the
29general description and purpose of the proposed project, the
30general nature of the right-of-way desired, a map showing the
31route or location of the proposed project, that the landowner
32has a right to be present at the meeting and to file objections
33with the board, and a designation of the time and place of the
34meeting. The notice shall be sent by restricted certified
35mail and shall be published once in a newspaper of general
-6-1circulation in the county not less than thirty days before
2the date set for the meeting
 served by certified mail with
3return receipt requested not less than thirty days previous
4to the time set for the meeting, and shall be published once
5in a newspaper of general circulation in the county
. The
6publication shall be considered notice to landowners whose
7residence is not known and to each person in possession of or
8residing on the property provided a good faith effort to notify
9can be demonstrated by the pipeline company.
10   Sec. 17.  Section 479B.21, subsection 1, Code 2018, is
11amended to read as follows:
   121.  A person who violates this chapter or any rule or
13order issued pursuant to this chapter shall be subject to a
14civil penalty levied by the board in an amount not to exceed
15one thousand dollars for each violation. Each day that the
16violation continues shall constitute a separate offense.
17However, the maximum civil penalty shall not exceed two hundred
18thousand dollars for any related series of violations. Civil
19penalties collected pursuant to this section shall be forwarded
20by the executive secretary chief operating officer of the board
21to the treasurer of state to be credited to the general fund
22of the state and appropriated to the division of community
23action agencies of the department of human rights for purposes
24of the low income home energy assistance program and the
25weatherization assistance program.
26   Sec. 18.  Section 479B.30, subsection 6, Code 2018, is
27amended to read as follows:
   286.  The pipeline company shall pay all costs of the
29assessment made by the commissioners and reasonable attorney
30fees and costs incurred by the landowner as determined by the
31commissioners if the award of the commissioners exceeds one
32hundred ten percent of the final offer of the pipeline company
33prior to the determination of damages; if the award does not
34exceed one hundred ten percent, the landowners shall pay the
35fees and costs incurred by the pipeline company
. The pipeline
-7-1company shall file with the sheriff an affidavit setting forth
2the most recent offer made to the landowner. Commissioners
3shall receive a per diem of fifty dollars and actual and
4necessary expenses incurred in the performance of their
5official duties. The pipeline company shall also pay all costs
6occasioned by the appeal, including reasonable attorney fees
7to be taxed by the court, unless on the trial of the appeal the
8same or a lesser amount of damages is awarded than was allowed
9by the commission from which the appeal was taken.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
   13This bill modifies various provisions relating to the
14utilities division of the department of commerce.
   15Current law requires the Iowa utilities board to appoint an
16executive secretary, whose salary is set by the board and who
17takes the same oath as board members. The bill requires the
18board to appoint a chief operating officer (COO) instead of
19an executive secretary. The bill specifies that the role of
20the COO is to manage the operations of the utilities division
21as directed by the board. The bill provides that the board
22shall set the salary of the COO within the limits of the
23law and authorizes the board to employ additional personnel
24as necessary. The bill replaces references to “executive
25secretary” with “COO” in the Code.
   26Current law disqualifies a person owning any bonds, stock,
27or property in any railroad company from holding office in the
28utilities board. The bill removes this disqualification.
   29The bill removes the requirement for the board to provide
30the general assembly with a report on certain energy efficiency
31planning efforts to be completed by January 1, 1998.
   32The bill strikes Code section 476.6(21), which provides
33cost recovery for certain rate-regulated public utilities for
34undertaking analyses of and preparations for the possible
35construction of nuclear generating facilities in the state.
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   1Current law allows the board to allocate and charge expenses
2attributable to its duties to a person bringing a proceeding
3before the board or participating in matters before the board.
4The bill allows the board to also allocate and charge expenses
5attributable to its duties to a person subject to inspection
6by the board.
   7Current law requires the board to specify certain ratemaking
8principles that will apply to certain electric generating and
9transmission facilities. In doing so the board must find
10that a public utility has demonstrated to the board, through
11a competitive bidding process under rules adopted by the
12board, that its facility or lease is reasonable. The bill
13removes the requirement that a public utility demonstrate the
14reasonableness of its facility or lease through a competitive
15bidding process under rules adopted by the board.
   16Current law requires pipeline companies doing business in
17the state to pay the board an annual inspection fee of 50
18cents for each mile of pipeline located in the state. The
19bill removes this set fee and instead allows the board to
20charge pipeline companies with annual inspection fees that are
21directly attributable to the costs of conducting inspections.
   22Current law allows a landowner to petition the county
23board of supervisors to appoint a compensation commission to
24determine damages arising from the construction of certain
25pipelines if the landowner and pipeline company are unable to
26agree on damages. If the compensation commission’s assessment
27of damages exceeds 110 percent of the pipeline company’s final
28offer prior to the assessment, the pipeline company must pay
29all costs of the assessment, including costs incurred by the
30landowner; if the assessment does not exceed 110 percent of
31the pipeline company’s final offer prior to the assessment,
32the landowner must pay the costs incurred by the pipeline
33company. The bill removes provisions requiring a landowner to
34pay the costs incurred by a pipeline company if a compensation
35commission’s assessment of damages does not exceed 110 percent
-9-1of the pipeline company’s final offer prior to such assessment.
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