Bill Summary – FastDemocracy

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