Bill Text: IA HF2446 | 2017-2018 | 87th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
House File 2446 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 591) A BILL FOR 1 An Act relating to matters under the purview of the utilities 2 division of the department of commerce, providing fees, and 3 making penalties applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5328HV (2) 87 gh/rn PAG LIN 1 1 Section 1. Section 474.1, subsection 2, Code 2018, is 1 2 amended to read as follows: 1 3 2. a.The utilities board shall organize by appointing 1 4 an executive secretary, who shall take the same oath as the 1 5 members. The board shall set the salary of the executive 1 6 secretary within the limits of the pay plan for exempt 1 7 positions provided for in section 8A.413, subsection 3, unless 1 8 otherwise provided by the general assembly. The board may 1 9 employ additional personnel as it finds necessary.Subject to 1 10 confirmation by the senate, the governor shall appoint a member 1 11 as the chairperson of the board. The chairperson shall be the 1 12 administrator of the utilities division. The appointment as 1 13 chairperson shall be for a two=year term which begins and ends 1 14 as provided in section 69.19. 1 15 b. The board shall appoint a chief operating officer to 1 16 manage the operations of the utilities division as directed 1 17 by the board. The board shall set the salary of the chief 1 18 operating officer within the limits of the pay plan for exempt 1 19 positions provided for in section 8A.413, subsection 3, unless 1 20 otherwise provided by the general assembly. The board may 1 21 employ additional personnel as it finds necessary. 1 22 Sec. 2. Section 474.2, Code 2018, is amended to read as 1 23 follows: 1 24 474.2 Certain persons barred from office. 1 25 No person in the employ of any common carrier or other public 1 26 utility, or owning any bonds, stock or property in anyrailroad 1 27 company or otherpublic utility shall be eligible to the office 1 28 of utilities board member orsecretarychief operating officer 1 29 of the utilities board; and the entering into the employ of any 1 30 common carrier or other public utility or the acquiring of any 1 31 stock or other interest in any common carrier or other public 1 32 utility by such member orsecretarychief operating officer 1 33 after appointment shall disqualify the member orsecretary 1 34chief operating officer to hold the office or perform the 1 35 duties thereof. 2 1 Sec. 3. Section 474.8, Code 2018, is amended to read as 2 2 follows: 2 3 474.8 Office == time employed == expenses. 2 4 The utilities board shall have an office at the seat 2 5 of government and each member shall devote the member's 2 6 whole time to the duties of the office, and the membersand 2 7 secretary, chief operating officer, and other employees shall 2 8 receive their actual necessary traveling expenses while in 2 9 the discharge of their official duties away from the general 2 10 offices. 2 11 Sec. 4. Section 476.1B, subsection 3, Code 2018, is amended 2 12 to read as follows: 2 13 3. Unless otherwise specifically provided by statute, a 2 14 municipally owned utility providing local exchange services 2 15 is not subject to regulation by the board under this chapter 2 16 except for regulatory action pertaining to the enforcement of 2 17 sections 476.11,476.29,476.95, 476.95A, 476.96, 476.100, 2 18 476.101, and 476.102. 2 19 Sec. 5. Section 476.1D, subsection 10, paragraph b, Code 2 20 2018, is amended to read as follows: 2 21 b. The board shall promptly notify the director of revenue 2 22 that a long distance telephone company has been classified 2 23 as a competitive long distance telephone company. Upon such 2 24 notification by the board, the director of revenue shall assess 2 25 the property of such competitive long distance telephone 2 26 company, which property is first assessed for taxation in this 2 27 state on or after January 1, 1996, in the same manner as all 2 28 other property assessed as commercial property by the local 2 29 assessor under chapters 427, 427A, 427B, 428, and 441. As used 2 30 in this section, "long distance telephone company" means an 2 31 entity that provides telephone service and facilities between 2 32 local exchanges, but does not include a cellular service 2 33 provider or a local exchange utilityholding a certificate 2 34 issued under section 476.29, subsection 12. 2 35 Sec. 6. Section 476.2, subsection 6, Code 2018, is amended 3 1 by striking the subsection. 3 2 Sec. 7. Section 476.6, subsection 21, Code 2018, is amended 3 3 by striking the subsection. 3 4 Sec. 8. Section 476.10, subsection 1, paragraph a, Code 3 5 2018, is amended to read as follows: 3 6 a. In order to carry out the duties imposed upon it by law, 3 7 the board may, at its discretion, allocate and charge directly 3 8 the expenses attributable to its duties to the person bringing 3 9 a proceeding before the board,orto persons participating in 3 10 matters before the board, or to persons subject to inspection 3 11 by the board. The board shall ascertain the certified expenses 3 12 incurred and directly chargeable by the consumer advocate 3 13 division of the department of justice in the performance of 3 14 its duties. The board and the consumer advocate separately 3 15 may decide not to charge expenses to persons who, without 3 16 expanding the scope of the proceeding or matter, intervene in 3 17 good faith in a board proceeding initiated by a person subject 3 18 to the board's jurisdiction, the consumer advocate, or the 3 19 board on its own motion. For assessments in any proceedings or 3 20 matters before the board, the board and the consumer advocate 3 21 separately may consider the financial resources of the person, 3 22 the impact of assessment on participation by intervenors, the 3 23 nature of the proceeding or matter, and the contribution of 3 24 a person's participation to the public interest. The board 3 25 may present a bill for expenses under this subsection to the 3 26 person, either at the conclusion of a proceeding or matter, 3 27 or from time to time during its progress. Presentation of a 3 28 bill for expenses under this subsection constitutes notice of 3 29 direct assessment and request for payment in accordance with 3 30 this section. 3 31 Sec. 9. Section 476.51, subsection 5, Code 2018, is amended 3 32 to read as follows: 3 33 5. Civil penalties collected pursuant to this section from 3 34 utilities providing water, electric, or gas service shall be 3 35 forwarded by theexecutive secretarychief operating officer 4 1 of the board to the treasurer of state to be credited to the 4 2 general fund of the state and to be used only for the low 4 3 income home energy assistance program and the weatherization 4 4 assistance program administered by the division of community 4 5 action agencies of the department of human rights. Civil 4 6 penalties collected pursuant to this section from utilities 4 7 providing telecommunications service shall be forwarded to 4 8 the treasurer of state to be credited to the department of 4 9 commerce revolving fund created in section 546.12 to be used 4 10 only for consumer education programs administered by the board. 4 11 Penalties paid by a rate=regulated public utility pursuant to 4 12 this section shall be excluded from the utility's costs when 4 13 determining the utility's revenue requirement, and shall not be 4 14 included either directly or indirectly in the utility's rates 4 15 or charges to customers. 4 16 Sec. 10. Section 476.53, subsection 3, paragraph c, 4 17 subparagraph (2), Code 2018, is amended to read as follows: 4 18 (2) The rate=regulated public utility has demonstrated to 4 19 the board that the public utility has considered other sources 4 20 for long=term electric supply and that the facility or lease is 4 21 reasonable when compared to other feasible alternative sources 4 22 of supply.The rate=regulated public utility may satisfy the 4 23 requirements of this subparagraph through a competitive bidding 4 24 process, under rules adopted by the board, that demonstrate 4 25 the facility or lease is a reasonable alternative to meet its 4 26 electric supply needs.4 27 Sec. 11. Section 476.103, subsection 4, paragraph c, Code 4 28 2018, is amended to read as follows: 4 29 c. A civil penalty collected pursuant to this subsection 4 30 shall be forwarded by theexecutive secretarychief operating 4 31 officer of the board to the treasurer of state to be credited 4 32 to the department of commerce revolving fund created in section 4 33 546.12 and to be used only for consumer education programs 4 34 administered by the board. 4 35 Sec. 12. Section 478.29, subsection 1, Code 2018, is amended 5 1 to read as follows: 5 2 1. A person who violates a provision of this chapter is 5 3 subject to a civil penalty, which may be levied by the board, 5 4 of not more than one hundred dollars per violation or one 5 5 thousand dollars per day of a continuing violation, whichever 5 6 is greater. Civil penalties collected pursuant to this 5 7 section shall be forwarded by theexecutive secretarychief 5 8 operating officer of the board to the treasurer of state to be 5 9 credited to the general fund of the state and appropriated to 5 10 the division of community action agencies of the department 5 11 of human rights for purposes of the low income home energy 5 12 assistance program and the weatherization assistance program. 5 13 Sec. 13. Section 479.14, Code 2018, is amended to read as 5 14 follows: 5 15 479.14 Inspection fee. 5 16A pipeline company shall pay an annual inspection fee of 5 17 fifty cents per mile of pipeline or fraction thereof for 5 18 each inch of diameter of the pipeline located in the state, 5 19 the inspection fee to be paid to the board for the calendar 5 20 year in advance between January 1 and February 1 of each year 5 21The board may, in accordance with section 476.10, charge a 5 22 pipeline company with an annual inspection fee that is directly 5 23 attributable to the costs of conducting annual inspections 5 24 pursuant to this chapter. 5 25 Sec. 14. Section 479.31, subsection 1, Code 2018, is amended 5 26 to read as follows: 5 27 1. A person who violates this chapter or any rule or order 5 28 issued pursuant to this chapter shall be subject to a civil 5 29 penalty levied by the board not to exceed one hundred thousand 5 30 dollars for each violation. Each day that the violation 5 31 continues shall constitute a separate offense. However, the 5 32 maximum civil penalty shall not exceed one million dollars for 5 33 any related series of violations. Civil penalties collected 5 34 pursuant to this section shall be forwarded by theexecutive 5 35 secretarychief operating officer of the board to the treasurer 6 1 of state to be credited to the general fund of the state and 6 2 appropriated to the division of community action agencies 6 3 of the department of human rights for purposes of the low 6 4 income home energy assistance program and the weatherization 6 5 assistance program. 6 6 Sec. 15. Section 479.46, subsection 6, Code 2018, is amended 6 7 to read as follows: 6 8 6. The pipeline company shall pay all costs of the 6 9 assessment made by the commissioners and reasonable attorney 6 10 fees and costs incurred by the landowner as determined by the 6 11 commissioners if the award of the commissioners exceeds one 6 12 hundred ten percent of the final offer of the pipeline company 6 13 prior to the determination of damages; if the award does not 6 14 exceed one hundred ten percent, the landowners shall pay the 6 15 fees and costs incurred by the pipeline company. The pipeline 6 16 company shall file with the sheriff an affidavit setting forth 6 17 the most recent offer made to the landowner. Commissioners 6 18 shall receive a per diem of fifty dollars and actual and 6 19 necessary expenses incurred in the performance of their 6 20 official duties. The pipeline company shall also pay all costs 6 21 occasioned by the appeal, including reasonable attorney fees 6 22 to be taxed by the court, unless on the trial of the appeal the 6 23 same or a lesser amount of damages is awarded than was allowed 6 24 by the commission from which the appeal was taken. 6 25 Sec. 16. Section 479B.4, unnumbered paragraph 5, Code 2018, 6 26 is amended to read as follows: 6 27 The notice shall set forth the following: the name of the 6 28 applicant, the applicant's principal place of business, the 6 29 general description and purpose of the proposed project, the 6 30 general nature of the right=of=way desired, a map showing the 6 31 route or location of the proposed project, that the landowner 6 32 has a right to be present at the meeting and to file objections 6 33 with the board, and a designation of the time and place of the 6 34 meeting. The notice shall besent by restricted certified 6 35 mail and shall be published once in a newspaper of general 7 1 circulation in the county not less than thirty days before 7 2 the date set for the meetingserved by certified mail with 7 3 return receipt requested not less than thirty days previous 7 4 to the time set for the meeting, and shall be published once 7 5 in a newspaper of general circulation in the county. The 7 6 publication shall be considered notice to landowners whose 7 7 residence is not known and to each person in possession of or 7 8 residing on the property provided a good faith effort to notify 7 9 can be demonstrated by the pipeline company. 7 10 Sec. 17. Section 479B.21, subsection 1, Code 2018, is 7 11 amended to read as follows: 7 12 1. A person who violates this chapter or any rule or 7 13 order issued pursuant to this chapter shall be subject to a 7 14 civil penalty levied by the board in an amount not to exceed 7 15 one thousand dollars for each violation. Each day that the 7 16 violation continues shall constitute a separate offense. 7 17 However, the maximum civil penalty shall not exceed two hundred 7 18 thousand dollars for any related series of violations. Civil 7 19 penalties collected pursuant to this section shall be forwarded 7 20 by theexecutive secretarychief operating officer of the board 7 21 to the treasurer of state to be credited to the general fund 7 22 of the state and appropriated to the division of community 7 23 action agencies of the department of human rights for purposes 7 24 of the low income home energy assistance program and the 7 25 weatherization assistance program. 7 26 Sec. 18. Section 479B.30, subsection 6, Code 2018, is 7 27 amended to read as follows: 7 28 6. The pipeline company shall pay all costs of the 7 29 assessment made by the commissioners and reasonable attorney 7 30 fees and costs incurred by the landowner as determined by the 7 31 commissioners if the award of the commissioners exceeds one 7 32 hundred ten percent of the final offer of the pipeline company 7 33 prior to the determination of damages; if the award does not 7 34 exceed one hundred ten percent, the landowners shall pay the 7 35 fees and costs incurred by the pipeline company. The pipeline 8 1 company shall file with the sheriff an affidavit setting forth 8 2 the most recent offer made to the landowner. Commissioners 8 3 shall receive a per diem of fifty dollars and actual and 8 4 necessary expenses incurred in the performance of their 8 5 official duties. The pipeline company shall also pay all costs 8 6 occasioned by the appeal, including reasonable attorney fees 8 7 to be taxed by the court, unless on the trial of the appeal the 8 8 same or a lesser amount of damages is awarded than was allowed 8 9 by the commission from which the appeal was taken. 8 10 EXPLANATION 8 11 The inclusion of this explanation does not constitute agreement with 8 12 the explanation's substance by the members of the general assembly. 8 13 This bill modifies various provisions relating to the 8 14 utilities division of the department of commerce. 8 15 Current law requires the Iowa utilities board to appoint an 8 16 executive secretary, whose salary is set by the board and who 8 17 takes the same oath as board members. The bill requires the 8 18 board to appoint a chief operating officer (COO) instead of 8 19 an executive secretary. The bill specifies that the role of 8 20 the COO is to manage the operations of the utilities division 8 21 as directed by the board. The bill provides that the board 8 22 shall set the salary of the COO within the limits of the 8 23 law and authorizes the board to employ additional personnel 8 24 as necessary. The bill replaces references to "executive 8 25 secretary" with "COO" in the Code. 8 26 Current law disqualifies a person owning any bonds, stock, 8 27 or property in any railroad company from holding office in the 8 28 utilities board. The bill removes this disqualification. 8 29 The bill removes the requirement for the board to provide 8 30 the general assembly with a report on certain energy efficiency 8 31 planning efforts to be completed by January 1, 1998. 8 32 The bill strikes Code section 476.6(21), which provides 8 33 cost recovery for certain rate=regulated public utilities for 8 34 undertaking analyses of and preparations for the possible 8 35 construction of nuclear generating facilities in the state. 9 1 Current law allows the board to allocate and charge expenses 9 2 attributable to its duties to a person bringing a proceeding 9 3 before the board or participating in matters before the board. 9 4 The bill allows the board to also allocate and charge expenses 9 5 attributable to its duties to a person subject to inspection 9 6 by the board. 9 7 Current law requires the board to specify certain ratemaking 9 8 principles that will apply to certain electric generating and 9 9 transmission facilities. In doing so the board must find 9 10 that a public utility has demonstrated to the board, through 9 11 a competitive bidding process under rules adopted by the 9 12 board, that its facility or lease is reasonable. The bill 9 13 removes the requirement that a public utility demonstrate the 9 14 reasonableness of its facility or lease through a competitive 9 15 bidding process under rules adopted by the board. 9 16 Current law requires pipeline companies doing business in 9 17 the state to pay the board an annual inspection fee of 50 9 18 cents for each mile of pipeline located in the state. The 9 19 bill removes this set fee and instead allows the board to 9 20 charge pipeline companies with annual inspection fees that are 9 21 directly attributable to the costs of conducting inspections. 9 22 Current law allows a landowner to petition the county 9 23 board of supervisors to appoint a compensation commission to 9 24 determine damages arising from the construction of certain 9 25 pipelines if the landowner and pipeline company are unable to 9 26 agree on damages. If the compensation commission's assessment 9 27 of damages exceeds 110 percent of the pipeline company's final 9 28 offer prior to the assessment, the pipeline company must pay 9 29 all costs of the assessment, including costs incurred by the 9 30 landowner; if the assessment does not exceed 110 percent of 9 31 the pipeline company's final offer prior to the assessment, 9 32 the landowner must pay the costs incurred by the pipeline 9 33 company. The bill removes provisions requiring a landowner to 9 34 pay the costs incurred by a pipeline company if a compensation 9 35 commission's assessment of damages does not exceed 110 percent 10 1 of the pipeline company's final offer prior to such assessment. LSB 5328HV (2) 87 gh/rn