Bill Text: IA HF2446 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to matters under the purview of the utilities division of the department of commerce, providing fees, and making penalties applicable. (Formerly HSB 591.) Effective 7-1-18.
Spectrum: Committee Bill
Status: (Passed) 2018-05-17 - Signed by Governor. H.J. 997. [HF2446 Detail]
Download: Iowa-2017-HF2446-Enrolled.html
House File 2446 - Enrolled
HOUSE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO HSB 591)
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A BILL FOR
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House File 2446
AN ACT
RELATING TO MATTERS UNDER THE PURVIEW OF THE UTILITIES
DIVISION OF THE DEPARTMENT OF COMMERCE, PROVIDING FEES, AND
MAKING PENALTIES APPLICABLE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 474.1, subsection 2, Code 2018, is
amended to read as follows:
2. a. The utilities board shall organize by appointing
an executive secretary, who shall take the same oath as the
members. The board shall set the salary of the executive
secretary within the limits of the pay plan for exempt
positions provided for in section 8A.413, subsection 3, unless
otherwise provided by the general assembly. The board may
employ additional personnel as it finds necessary. Subject
to confirmation by the senate, the governor shall appoint a
member
as the chairperson of the board. The chairperson shall be the
administrator of the utilities division. The appointment as
chairperson shall be for a two=year term which begins and ends
as provided in section 69.19.
b. The board shall appoint a chief operating officer to
manage the operations of the utilities division as directed
by the board. The board shall set the salary of the chief
operating officer within the limits of the pay plan for exempt
positions provided for in section 8A.413, subsection 3, unless
otherwise provided by the general assembly. The board may
employ additional personnel as it finds necessary.
Sec. 2. Section 474.2, Code 2018, is amended to read as
follows:
474.2 Certain persons barred from office.
No person in the employ of any common carrier or other public
utility, or owning any bonds, stock or property in any railroad
company or other public utility shall be eligible to the office
of utilities board member or secretary chief operating officer
of the utilities board; and the entering into the employ of any
common carrier or other public utility or the acquiring of any
stock or other interest in any common carrier or other public
utility by such member or secretary chief operating officer
after appointment shall disqualify the member or secretary
chief operating officer to hold the office or perform the
duties thereof.
Sec. 3. Section 474.8, Code 2018, is amended to read as
follows:
474.8 Office == time employed == expenses.
The utilities board shall have an office at the seat
of government and each member shall devote the member's
whole time to the duties of the office, and the members and
secretary, chief operating officer, and other employees shall
receive their actual necessary traveling expenses while in
the discharge of their official duties away from the general
offices.
Sec. 4. Section 476.1, subsections 4 and 6, Code 2018, are
amended by striking the subsections.
Sec. 5. Section 476.1B, subsection 3, Code 2018, is amended
to read as follows:
3. Unless otherwise specifically provided by statute, a
municipally owned utility providing local exchange services
is not subject to regulation by the board under this chapter
except for regulatory action pertaining to the enforcement of
sections 476.11, 476.29, 476.95, 476.96, 476.95A, 476.95B,
476.100, 476.101, and 476.102.
Sec. 6. Section 476.1D, subsection 4, Code 2018, is amended
to read as follows:
4. Upon deregulation, all investment, revenues, and
expenses associated with the service or facility shall be
removed from the telephone utility's regulated operations and
shall not be considered by the board in setting rates for the
telephone utility unless they continue to affect the utility's
regulated operations. If the board considers investment,
revenues, and expenses associated with unregulated services
or facilities in setting rates for the telephone utility, the
board shall not use any profits or costs from such unregulated
services or facilities to determine the rates for regulated
services or facilities. This section does not preclude the
board from considering the investment, revenues, and expenses
associated with the sale of classified directory advertising
by a telephone utility in determining rates for the telephone
utility.
Sec. 7. Section 476.1D, subsection 10, Code 2018, is amended
by striking the subsection.
Sec. 8. Section 476.2, subsection 6, Code 2018, is amended
by striking the subsection.
Sec. 9. Section 476.6, subsection 2, Code 2018, is amended
to read as follows:
2. Written notice of increase. All public utilities,
except those exempted from rate regulation by section 476.1
and telecommunications service providers registered pursuant
to section 476.95A, shall give written notice of a proposed
increase of any rate or charge to all affected customers served
by the public utility no more than sixty=two days prior to
and prior to the time the application for the increase is
filed with the board. Public utilities exempted from rate
regulation by section 476.1, except telecommunications service
providers registered pursuant to section 476.95A, shall give
written notice of a proposed increase of any rate or charge to
all affected customers served by the public utility at least
thirty days prior to the effective date of the increase. If
the public utility is subject to rate regulation, the notice
to affected customers shall also state that the customer has
a right to file a written objection to the rate increase and
that the affected customers may request the board to hold a
public hearing to determine if the rate increase should be
allowed. The board shall prescribe the manner and method that
the written notice to each affected customer of the public
utility shall be served.
Sec. 10. Section 476.6, subsection 21, Code 2018, is amended
by striking the subsection.
Sec. 11. Section 476.9, subsections 1, 2, and 3, Code 2018,
are amended to read as follows:
1. Every public utility, except telecommunications service
providers registered pursuant to section 476.95A, shall keep
and render to the board in the manner and form prescribed by
the board uniform accounts of all business transacted.
2. Every public utility engaged directly or indirectly in
any other business than that of the production, transmission,
or furnishing of heat, light, water, or power, or the
collection and treatment of sanitary sewage or storm water, or
the furnishing of communications services to for the public
shall, if required by the board, keep and render separately
to the board in like manner and form the accounts of all such
other business, in which case all the provisions of this
chapter shall apply to the books, accounts, papers and records
of such other business and all profits and losses may be taken
into consideration by the board if deemed relevant to the
general fiscal condition of the public utility.
3. Every public utility, except telecommunications service
providers registered pursuant to section 476.95A, is required
to keep and render its books, accounts, papers and records
accurately and faithfully in the manner and form prescribed
by the board, and to comply with all directions of the board
relating to such books, accounts, papers and records.
Sec. 12. Section 476.10, subsection 1, paragraph a, Code
2018, is amended to read as follows:
a. In order to carry out the duties imposed upon it by law,
the board may, at its discretion, allocate and charge directly
the expenses attributable to its duties to the person bringing
a proceeding before the board, or to persons participating in
matters before the board, or to persons subject to inspection
by the board. The board shall ascertain the certified expenses
incurred and directly chargeable by the consumer advocate
division of the department of justice in the performance of
its duties. The board 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 board proceeding initiated by a person subject
to the board's jurisdiction, the consumer advocate, or the
board on its own motion. For assessments in any proceedings or
matters before the board, the board 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 board
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. 13. Section 476.20, Code 2018, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. This section shall not apply to
telecommunications service providers registered pursuant to
section 476.95A.
Sec. 14. Section 476.51, subsection 5, Code 2018, is amended
to read as follows:
5. Civil penalties collected pursuant to this section from
utilities providing water, electric, or gas service shall be
forwarded by the executive secretary chief operating officer
of the board to the treasurer of state to be credited to the
general fund of the state and to be used only for the low
income home energy assistance program and the weatherization
assistance program administered by the division of community
action agencies of the department of human rights. Civil
penalties collected pursuant to this section from utilities
providing telecommunications service shall be forwarded to
the treasurer of state to be credited to the department of
commerce revolving fund created in section 546.12 to be used
only for consumer education programs administered by the board.
Penalties paid by a rate=regulated public utility pursuant to
this section shall be excluded from the utility's costs when
determining the utility's revenue requirement, and shall not be
included either directly or indirectly in the utility's rates
or charges to customers.
Sec. 15. Section 476.53, subsection 3, paragraph c,
subparagraph (2), Code 2018, is amended to read as follows:
(2) The rate=regulated public utility has demonstrated to
the board that the public utility has considered other sources
for long=term electric supply and that the facility or lease is
reasonable when compared to other feasible alternative sources
of supply. The rate=regulated public utility may satisfy the
requirements of this subparagraph through a competitive bidding
process, under rules adopted by the board, that demonstrate
the facility or lease is a reasonable alternative to meet its
electric supply needs.
Sec. 16. Section 476.54, Code 2018, is amended to read as
follows:
476.54 Delayed payment charges.
A public utility shall not apply delayed payment charges
on a customer's account if the scheduled payment was made by
the customer within twenty days from the date the billing was
sent to the customer. Delayed payment charges on a customer's
account shall not exceed one and one=half percent per month
of the past=due amount. This section shall not apply to
telecommunications service providers registered pursuant to
section 476.95A.
Sec. 17. Section 476.95, Code 2018, is amended by striking
the section and inserting in lieu thereof the following:
476.95 Internet protocol=enabled service and voice over
internet protocol service ==== regulation.
1. For purposes of this section:
a. "Internet protocol=enabled service" means any service,
capability, functionality, or application that uses internet
protocol or any successor protocol and enables an end user
to send or receive voice, data, or video communications in
internet protocol format or a successor format.
b. "Political subdivision" means the same as defined in
section 145A.2.
c. "Voice over internet protocol service" means an internet
protocol=enabled service that facilitates real=time, two=way
voice communication that originates from, or terminates at, a
user's location and permits the user to receive a call that
originates from the public switched telephone network and to
terminate a call on the public switched telephone network.
2. Notwithstanding any other provision of law to the
contrary, a department, agency, board, or political subdivision
of the state shall not regulate, by rule, order, or other means
directly or indirectly, the entry, rates, terms, or conditions
for internet protocol=enabled service or voice over internet
protocol service.
3. This section shall not be construed to affect, modify,
limit, or expand any of the following:
a. The authority of the attorney general to take any action
pursuant to chapter 537 or section 714.16.
b. The application or enforcement of any law that is
intended to have general application to the conduct of business
in this state.
c. Any entity's obligation under section 251 or 252 of the
federal Telecommunications Act of 1996.
d. Any authority of the board over wholesale
telecommunications services, rates, agreements,
interconnection, providers, or tariffs.
e. Any authority of the board to address or affect the
resolution of a dispute regarding intercarrier compensation.
f. Any authority of the board, in accordance with state and
federal law, to assess voice over internet protocol service for
any of the following:
(1) Surcharges for 911 emergency services under section
34A.7.
(2) Assessments for dual party relay service under section
477C.7.
(3) Direct costs under section 476.10 and a share of
remainder assessments that reflect the service's lesser degree
of regulation.
g. Any authority of the board to regulate internet
protocol=enabled service or voice over internet protocol
service pursuant to section 476.91.
Sec. 18. NEW SECTION. 476.95A Annual registration for
telecommunications service providers.
1. A provider of telecommunications service, as defined in
section 476.103, offering telephone numbers to retail customers
in this state shall register annually with the board.
2. An applicant shall complete an application for
registration on a form provided by the board. The form shall
include contact information, the approximate number of service
lines provided in the state, and any other information deemed
necessary by the board.
3. Within five business days of the receipt of a completed
application for registration, the board shall issue a
nonexclusive acknowledgment of compliance with this section.
The acknowledgment shall authorize the registrant to obtain
telephone numbers, interconnect with other telecommunications
service providers, cross railroad rights=of=way pursuant to
section 476.27, and provide telecommunications service in this
state. An acknowledgment may be transferred by filing a new
or updated registration form.
4. A registrant shall submit to the board corrections
to the information supplied in the registration form
within a reasonable time after a change in circumstances,
which circumstances would be required to be reported in an
application for registration form.
5. Refusal to file and maintain an annual registration
pursuant to this section is a violation of this chapter and
may subject a telecommunications service provider to a civil
penalty pursuant to section 476.51.
6. Notwithstanding this subsection, the board shall
continue to recognize the validity of, and the rights conferred
upon, a certificate of public convenience and necessity issued
to a telecommunications service provider by the board prior to
July 1, 2018.
Sec. 19. NEW SECTION. 476.95B Applicability of authority.
1. The board may exercise any powers reserved or delegated
to the state by the federal Telecommunications Act of 1996
or any other federal law, rule, or order thereunder, and may
hear and resolve any dispute arising thereunder, including but
not limited to intercarrier compensation, interconnection, and
number portability.
2. In proceedings under 47 U.S.C. {251=254, the board
shall allocate the costs and expenses of the proceedings to
persons identified as parties in the proceeding who are engaged
in or who seek to engage in providing telecommunications
service or other persons identified as participants in the
proceeding. The funds received for the costs and the expenses
shall be remitted to the treasurer of state for deposit in the
department of commerce revolving fund created in section 546.12
as provided in section 476.10.
Sec. 20. Section 476.102, subsection 2, paragraph d, Code
2018, is amended to read as follows:
d. The plan should be based on other principles as the board
determines are necessary and appropriate for the protection of
the public interest, convenience, and necessity and consistent
with the purposes of sections 476.95 through 476.101 and this
section.
Sec. 21. Section 476.103, subsection 4, paragraph c, Code
2018, is amended to read as follows:
c. A civil penalty collected pursuant to this subsection
shall be forwarded by the executive secretary chief operating
officer of the board to the treasurer of state to be credited
to the department of commerce revolving fund created in section
546.12 and to be used only for consumer education programs
administered by the board.
Sec. 22. Section 477A.3, subsection 1, paragraph f, Code
2018, is amended to read as follows:
f. Documentation that the applicant possesses sufficient
managerial, technical, and financial capability to provide
the cable service or video service proposed in the service
area. An applicant or its subsidiary which has been issued
a certificate of public convenience and necessity to provide
telephone service pursuant to section 476.29 shall be exempt
from the provisions of this paragraph.
Sec. 23. Section 477C.7, Code 2018, is amended to read as
follows:
477C.7 Funding.
1. The board shall impose an annual assessment to fund the
programs described in this chapter upon all telecommunications
wireless carriers and wire=line local exchange carriers
providing telecommunications service in the state in the amount
of three cents per month for each telecommunications service
phone number provided in this state.
2. The total assessment shall be allocated as follows:
a. Wireless communications service providers shall be
assessed three cents per month for each wireless communications
service number provided in this state.
b. (1) The remainder of the assessment shall be allocated
one=half to local exchange telephone utilities and one=half to
the following:
(a) Interexchange carriers.
(b) Centralized equal access providers.
(c) Alternative operator services companies.
(2) The assessment shall be allocated proportionally based
upon revenues from all intrastate regulated, deregulated, and
exempt telephone services under sections 476.1 and 476.1D.
3. 2. The telecommunications carriers entities subject
to assessment shall remit the assessed amounts quarterly to a
special fund, as defined under section 8.2, subsection 9. The
moneys in the fund are appropriated solely to plan, establish,
administer, and promote the relay service and equipment
distribution programs.
4. 3. The telecommunications carriers entities subject to
assessment shall provide the information requested by the board
necessary for implementation of the assessment.
5. 4. The Wire=line local exchange telephone utilities
carriers shall not recover from intrastate access charges
any portion of such utilities assessment imposed under this
section.
Sec. 24. Section 478.29, subsection 1, Code 2018, is amended
to read as follows:
1. A person who violates a provision of this chapter is
subject to a civil penalty, which may be levied by the board,
of not more than one hundred dollars per violation or one
thousand dollars per day of a continuing violation, whichever
is greater. Civil penalties collected pursuant to this
section shall be forwarded by the executive secretary chief
operating officer of the board to the treasurer of state to be
credited to the general fund of the state and appropriated to
the division of community action agencies of the department
of human rights for purposes of the low income home energy
assistance program and the weatherization assistance program.
Sec. 25. Section 479.14, Code 2018, is amended to read as
follows:
479.14 Inspection fee.
A pipeline company shall pay an annual inspection fee of
fifty cents per mile of pipeline or fraction thereof for
each inch of diameter of the pipeline located in the state,
the inspection fee to be paid to the board for the calendar
year in advance between January 1 and February 1 of each year
The board may, in accordance with section 476.10, charge a
pipeline company with an annual inspection fee that is directly
attributable to the costs of conducting annual inspections
pursuant to this chapter.
Sec. 26. Section 479.31, subsection 1, Code 2018, is amended
to read as follows:
1. A person who violates this chapter or any rule or order
issued pursuant to this chapter shall be subject to a civil
penalty levied by the board not to exceed one hundred thousand
dollars for each violation. Each day that the violation
continues shall constitute a separate offense. However, the
maximum civil penalty shall not exceed one million dollars for
any related series of violations. Civil penalties collected
pursuant to this section shall be forwarded by the executive
secretary chief operating officer of the board to the treasurer
of state to be credited to the general fund of the state and
appropriated to the division of community action agencies
of the department of human rights for purposes of the low
income home energy assistance program and the weatherization
assistance program.
Sec. 27. Section 479.46, subsection 6, Code 2018, is amended
to read as follows:
6. The pipeline company shall pay all costs of the
assessment made by the commissioners and reasonable attorney
fees and costs incurred by the landowner as determined by the
commissioners if the award of the commissioners exceeds one
hundred ten percent of the final offer of the pipeline company
prior to the determination of damages; if the award does not
exceed one hundred ten percent, the landowners shall pay the
fees and costs incurred by the pipeline company. The pipeline
company shall file with the sheriff an affidavit setting forth
the most recent offer made to the landowner. Commissioners
shall receive a per diem of fifty dollars and actual and
necessary expenses incurred in the performance of their
official duties. The pipeline company shall also pay all costs
occasioned by the appeal, including reasonable attorney fees
to be taxed by the court, unless on the trial of the appeal the
same or a lesser amount of damages is awarded than was allowed
by the commission from which the appeal was taken.
Sec. 28. Section 479B.4, unnumbered paragraph 5, Code 2018,
is amended to read as follows:
The notice shall set forth the following: the name of the
applicant, the applicant's principal place of business, the
general description and purpose of the proposed project, the
general nature of the right=of=way desired, a map showing the
route or location of the proposed project, that the landowner
has a right to be present at the meeting and to file objections
with the board, and a designation of the time and place of the
meeting. The notice shall be sent by restricted certified
mail and shall be published once in a newspaper of general
circulation in the county not less than thirty days before
the date set for the meeting served by certified mail with
return receipt requested not less than thirty days previous
to the time set for the meeting, and shall be published once
in a newspaper of general circulation in the county. The
publication shall be considered notice to landowners whose
residence is not known and to each person in possession of or
residing on the property provided a good faith effort to notify
can be demonstrated by the pipeline company.
Sec. 29. Section 479B.21, subsection 1, Code 2018, is
amended to read as follows:
1. A person who violates this chapter or any rule or
order issued pursuant to this chapter shall be subject to a
civil penalty levied by the board in an amount not to exceed
one thousand dollars for each violation. Each day that the
violation continues shall constitute a separate offense.
However, the maximum civil penalty shall not exceed two hundred
thousand dollars for any related series of violations. Civil
penalties collected pursuant to this section shall be forwarded
by the executive secretary chief operating officer of the board
to the treasurer of state to be credited to the general fund
of the state and appropriated to the division of community
action agencies of the department of human rights for purposes
of the low income home energy assistance program and the
weatherization assistance program.
Sec. 30. Section 479B.30, subsection 6, Code 2018, is
amended to read as follows:
6. The pipeline company shall pay all costs of the
assessment made by the commissioners and reasonable attorney
fees and costs incurred by the landowner as determined by the
commissioners if the award of the commissioners exceeds one
hundred ten percent of the final offer of the pipeline company
prior to the determination of damages; if the award does not
exceed one hundred ten percent, the landowners shall pay the
fees and costs incurred by the pipeline company. The pipeline
company shall file with the sheriff an affidavit setting forth
the most recent offer made to the landowner. Commissioners
shall receive a per diem of fifty dollars and actual and
necessary expenses incurred in the performance of their
official duties. The pipeline company shall also pay all costs
occasioned by the appeal, including reasonable attorney fees
to be taxed by the court, unless on the trial of the appeal the
same or a lesser amount of damages is awarded than was allowed
by the commission from which the appeal was taken.
Sec. 31. Section 714H.4, subsection 1, paragraph d, Code
2018, is amended to read as follows:
d. The provision of local exchange carrier telephone service
pursuant to a certificate issued under section 476.29.
Sec. 32. REPEAL. Sections 476.11, 476.57, 476.96, and
476.101, Code 2018, are repealed.
LINDA UPMEYER
Speaker of the House
CHARLES SCHNEIDER
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2446, Eighty=seventh General Assembly.
CARMINE BOAL
Chief Clerk of the House
Approved , 2018
KIM REYNOLDS
Governor
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