Bill Text: IA HF355 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to matters under the purview of the utilities division of the department of commerce, and making penalties applicable. (Formerly HSB 107.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2019-04-27 - Referred to Commerce. H.J. 1076. [HF355 Detail]

Download: Iowa-2019-HF355-Introduced.html
House File 355 - Introduced HOUSE FILE 355 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 107) A BILL FOR An Act relating to matters under the purview of the utilities 1 division of the department of commerce, and making penalties 2 applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1268HV (1) 88 gh/rn
H.F. 355 Section 1. Section 34A.2, subsections 8 and 14, Code 2019, 1 are amended to read as follows: 2 8. “Competitive local exchange service provider” means the 3 same as defined in section 476.96 any person, including a 4 municipal utility, that provides local exchange services, other 5 than a local exchange carrier or a non-rate-regulated wireline 6 provider of local exchange services . 7 14. “Local exchange carrier” means the same as defined in 8 section 476.96 any person that was the incumbent and historical 9 rate-regulated wireline provider of local exchange services 10 or any successor to such person that provides local exchange 11 services . 12 Sec. 2. Section 423.3, subsection 47A, Code 2019, is amended 13 to read as follows: 14 47A. a. The sales price from the sale or rental of central 15 office equipment or transmission equipment primarily used by 16 local exchange carriers and competitive local exchange service 17 providers as defined in section 476.96 ; by franchised cable 18 television operators, mutual companies, municipal utilities, 19 cooperatives, and companies furnishing communications services 20 that are not subject to rate regulation as provided in chapter 21 476 ; by long distance companies as defined in section 477.10 ; 22 or for a commercial mobile radio service as defined in 47 23 C.F.R. §20.3 in the furnishing of telecommunications services 24 on a commercial basis. 25 b. For the purposes of this subsection , 26 (1) “central office equipment” means equipment utilized 27 in the initiating, processing, amplifying, switching, or 28 monitoring of telecommunications services. “Central office 29 equipment” also includes ancillary equipment and apparatus 30 which support, regulate, control, repair, test, or enable such 31 equipment to accomplish its function. 32 (2) “Competitive local exchange service provider” means 33 any person, including a municipal utility, that provides 34 local exchange services, other than a local exchange carrier 35 -1- LSB 1268HV (1) 88 gh/rn 1/ 6
H.F. 355 or a non-rate-regulated wireline provider of local exchange 1 services. 2 (3) “Local exchange carrier” means any person that was the 3 incumbent and historical rate-regulated wireline provider of 4 local exchange services or any successor to such person that 5 provides local exchange services. 6 (4) “Transmission equipment” means equipment utilized 7 in the process of sending information from one location to 8 another location. “Central office equipment” and “transmission 9 “Transmission equipment” also include includes ancillary 10 equipment and apparatus which support, regulate, control, 11 repair, test, or enable such equipment to accomplish its 12 function. 13 Sec. 3. Section 476.2, Code 2019, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 4A. The board shall have the authority 16 to employ or appoint an independent administrative law judge 17 to preside over any hearing or proceeding before the board. 18 Sections 10A.801 and 17A.11 do not apply to the employment or 19 appointment of an administrative law judge pursuant to this 20 subsection. 21 Sec. 4. Section 476.10, subsection 1, paragraph b, Code 22 2019, is amended to read as follows: 23 b. The board shall ascertain the total of the division’s 24 expenses incurred during each fiscal year in the performance 25 of its duties under law. The board shall add to the total of 26 the division’s expenses the certified expenses of the consumer 27 advocate as provided under section 475A.6 . The board shall 28 deduct all amounts charged directly to any person from the 29 total expenses of the board and the consumer advocate. The 30 board may assess an estimate of the amount remaining after 31 the estimated deduction for direct charges to some or all 32 persons providing service over which the board has jurisdiction 33 in proportion to the respective gross operating revenues 34 of such persons from intrastate operations during the last 35 -2- LSB 1268HV (1) 88 gh/rn 2/ 6
H.F. 355 calendar year over which the board has jurisdiction. For 1 purposes of determining gross operating revenues under this 2 section , the board shall not include gross receipts received 3 by a cooperative corporation or association for wholesale 4 transactions with members of the cooperative corporation 5 or association, provided that the members are subject to 6 assessment by the board based upon the members’ gross operating 7 revenues, or provided that such a member is an association 8 whose members are subject to assessment by the board based upon 9 the members’ gross operating revenues. If any portion of the 10 remainder can be identified with a specific type of utility 11 service, the board shall assess an estimate of those expenses 12 only to the entities providing that type of service over which 13 the board has jurisdiction. The board may make the remainder 14 assessments under this paragraph on a quarterly basis, based 15 upon estimates of the expenditures for the fiscal year for 16 the utilities division and the consumer advocate. Not more 17 than ninety days following the close of the fiscal year, the 18 utilities division shall conform the amount of the prior fiscal 19 year’s assessments to the requirements of this paragraph. For 20 gas and electric public utilities exempted from rate regulation 21 pursuant to this chapter , the remainder assessments under 22 this paragraph shall be computed at one-half the rate used in 23 computing the assessment for other persons. 24 Sec. 5. Section 476.55, subsection 2, paragraph a, 25 unnumbered paragraph 1, Code 2019, is amended to read as 26 follows: 27 Notwithstanding section 476.1D , the board may receive 28 a complaint from a local exchange carrier that another 29 local exchange carrier has engaged in an activity that is 30 inconsistent with antitrust laws and the policies which 31 underlie them. For purposes of this subsection , “local exchange 32 carrier” means the same as defined in section 476.96 any person 33 that was the incumbent and historical rate-regulated wireline 34 provider of local exchange services or any successor to such 35 -3- LSB 1268HV (1) 88 gh/rn 3/ 6
H.F. 355 person that provides local exchange services, and includes a 1 city utility authorized pursuant to section 388.2 to provide 2 local exchange services. If, after notice and opportunity for 3 hearing, the board finds that a local exchange carrier has 4 engaged in an activity that is inconsistent with antitrust laws 5 and the policies which underlie them, the board may order any 6 of the following: 7 Sec. 6. Section 477C.7, subsection 2, Code 2019, is amended 8 to read as follows: 9 2. The entities subject to assessment shall remit the 10 assessed amounts quarterly to a special fund, as defined under 11 section 8.2, subsection 9 , at intervals as directed by the 12 board . The moneys in the fund are appropriated solely to 13 plan, establish, administer, and promote the relay service and 14 equipment distribution programs. 15 Sec. 7. Section 479.31, subsection 1, Code 2019, is amended 16 to read as follows: 17 1. A person who violates this chapter or any rule or 18 order issued pursuant to this chapter shall be subject to a 19 civil penalty levied by the board not to exceed one hundred 20 thousand dollars for each violation in accordance with 49 21 C.F.R. §190.223 . Each day that the violation continues shall 22 constitute a separate offense. However, the maximum civil 23 penalty shall not exceed one million dollars for any related 24 series of violations. Civil penalties collected pursuant to 25 this section shall be forwarded by the chief operating officer 26 of the board to the treasurer of state to be credited to the 27 general fund of the state and appropriated to the division of 28 community action agencies of the department of human rights for 29 purposes of the low income home energy assistance program and 30 the weatherization assistance program. 31 Sec. 8. Section 479A.7, Code 2019, is amended to read as 32 follows: 33 479A.7 Annual inspection fee. 34 A The board may, in accordance with section 476.10, charge 35 -4- LSB 1268HV (1) 88 gh/rn 4/ 6
H.F. 355 a pipeline company shall pay with an annual inspection fee of 1 fifty cents per mile of pipeline or fraction thereof for each 2 inch of diameter of the pipeline located in this state. The 3 annual inspection fee shall be paid for the calendar year in 4 advance between January 1 and February 1 of each year that 5 is directly attributable to the costs of conducting annual 6 inspections pursuant to this chapter . 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill modifies provisions relating to the utilities 11 division of the department of commerce. 12 The bill removes cross references throughout the Code to 13 repealed Code section 476.96, which included definitions for 14 “competitive local exchange service provider” and “local 15 exchange carrier”, and provides new definitions for such terms 16 in those Code sections. “Competitive local exchange service 17 provider” is defined as any person, including a municipal 18 utility, that provides local exchange services, other than 19 a local exchange carrier or a non-rate-regulated wireline 20 provider of local exchange services. “Local exchange carrier” 21 is defined as any person that was the incumbent and historical 22 rate-regulated wireline provider of local exchange services 23 or any successor to such person that provides local exchange 24 services. 25 The bill provides the Iowa utilities board with authority 26 to employ or appoint an independent administrative law judge 27 to preside over any hearing or proceeding before the board. 28 Certain provisions applicable to the employment or appointment 29 of administrative law judges by state agencies do not apply to 30 appointments by the board. 31 Current law requires the board to deduct all amounts charged 32 directly to any person subject to the jurisdiction of the 33 board for providing utility services from the total annual 34 expenses of the board and the consumer advocate. The board may 35 -5- LSB 1268HV (1) 88 gh/rn 5/ 6
H.F. 355 assess the remaining amount to all persons providing service 1 over which the board has jurisdiction in proportion to their 2 respective gross operating revenues. The bill allows the board 3 to charge such assessments based on estimated amounts, and to 4 be assessed to some or all persons providing service over which 5 the board has jurisdiction. 6 Current law requires telecommunications carriers subject to 7 assessments under Code chapter 477C to remit the assessments 8 to a special fund quarterly. The bill removes the requirement 9 that assessments under Code chapter 477C be remitted quarterly 10 and instead allows the board to direct the intervals of when 11 such assessments are to be remitted. 12 Current law allows the board to impose a civil penalty of up 13 to $100,000 for each violation of Code chapter 479, relating 14 to pipelines and underground gas storage, or any rule or order 15 issued pursuant to the Code chapter, provided that the maximum 16 penalty does not exceed $1 million for any related series of 17 violations. The bill removes these maximum amounts and instead 18 provides that a civil penalty levied by the board shall be in 19 accordance with specified federal law. 20 Current law requires pipeline companies operating pipelines 21 or underground storage under Code chapter 479A to pay the board 22 an annual inspection fee of 50 cents for each mile of pipeline 23 located in Iowa. The bill removes this set fee and instead 24 allows the board to charge pipeline companies with annual 25 inspection fees that are directly attributable to the costs of 26 conducting inspections. 27 -6- LSB 1268HV (1) 88 gh/rn 6/ 6
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