House File 2279 - Enrolled
House File 2279
AN ACT
RELATING TO PUBLIC UTILITIES, INCLUDING ENERGY PRODUCTION,
PUBLIC UTILITY AFFILIATES, AND CABLE AND VIDEO SERVICE.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 DIVISION I
2 ENERGY PRODUCTION
3 Section 1. Section 364.2, subsection 4, Code 2024, is
4 amended by adding the following new paragraph:
5 NEW PARAGRAPH. h. (1) When a person requests a franchise
6 for a merchant line as defined in section 478.6A and that
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7 requester possesses a franchise issued by the Iowa utilities
8 board outside of a city, and when the proposed merchant line
9 is more than fifty miles in total length within the state and
10 will be underground within the limits of the city, all of the
11 following apply:
12 (a) A person shall submit a written franchise request
13 including the proposed terms and conditions of the franchise.
14 (b) Upon receipt of the franchise request for a merchant
15 line, a city shall conduct a hearing pursuant to this
16 subsection. The city and the person may negotiate the terms
17 of a franchise prior to the approval of an ordinance. A city
18 may not unreasonably refuse to grant a franchise for a merchant
19 line. If the city denies the franchise request, the city shall
20 provide the person with a written denial of the franchise based
21 on substantial evidence in the record demonstrating that the
22 proposed transmission line would have a significant adverse
23 impact on the health or safety of the city’s residents or
24 public facilities that would not have been considered by the
25 Iowa utilities board.
26 (c) If the city has not held the required hearing or has not
27 acted on a request for a franchise for a merchant line within
28 ninety days of the receipt of the request, notwithstanding any
29 other terms of the Code, the franchise is deemed approved by
30 the city. If a request is timely denied, the person may seek a
31 certiorari judicial review by filing a petition either in Polk
32 county district court or in the district court for the county
33 in which the petitioner resides or the principal place of the
34 requester for the merchant line.
35 (d) This subsection applies to eligible merchant lines for
1 which a franchise has been granted pursuant to chapter 478
2 prior to the effective date of this subsection.
3 (2) This paragraph is repealed effective January 1, 2026.
4 Sec. 2. Section 476.42, subsection 1, paragraph a,
5 subparagraph (1), Code 2024, is amended to read as follows:
6 (1) A solar, wind turbine, electric storage unit, nuclear,
7 waste management, resource recovery, refuse-derived fuel,
8 agricultural crops or residues, or woodburning facility. For
9 purposes of this definition only, “waste management” includes a
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10 facility using plasma gasification to produce synthetic gas,
11 either as a stand-alone fuel or for blending with natural gas,
12 the output of which is used to generate electricity or steam.
13 For purposes of this definition only, “plasma gasification”
14 means the thermal dissociation of carbonaceous material into
15 fragments of compounds in an oxygen-starved environment.
16 Sec. 3. Section 476.48, subsection 6, Code 2024, is amended
17 by striking the subsection.
18 Sec. 4. Section 476A.1, subsection 5, Code 2024, is amended
19 to read as follows:
20 5. “Facility” means any electric power generating plant,
21 electric storage unit, or a combination of plants or units
22 at a single site, owned by any person, with a total capacity
23 of twenty-five or more megawatts of electricity for plants
24 or twenty-five or more megawatt hours of electricity for
25 electric storage units, and those associated transmission lines
26 connecting the generating plant or electric storage unit to
27 either a power transmission system or an interconnected primary
28 transmission system or both. Transmission lines subject to the
29 provisions of this subchapter shall not require a franchise
30 under chapter 478.
31 DIVISION II
32 PUBLIC UTILITY AFFILIATES
33 Sec. 5. Section 476.74, subsection 5, Code 2024, is amended
34 to read as follows:
35 5. Exemption. The provisions of this section requiring
1 filing of contracts or agreements with the board shall not
2 apply to transactions with an affiliate where the amount of
3 consideration involved is not in excess of fifty thousand
4 dollars or five percent of the capital equity of the utility,
5 whichever is smaller two hundred fifty thousand dollars.
6 However, regularly recurring payments under a general or
7 continuing arrangement which that aggregate a greater annual
8 amount shall not be broken down into a series of transactions
9 to come within this exemption. In any proceeding involving
10 the rates, charges, or practices of the public utility, the
11 board may exclude from the accounts of the public utility any
12 unreasonable payment or compensation made pursuant to any
13 contract or arrangement which that is not required to be filed
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14 under this subsection.
15 DIVISION III
16 CABLE OR VIDEO SERVICE
17 Sec. 6. Section 474.1, subsection 4, Code 2024, is amended
18 to read as follows:
19 4. As used in this chapter and chapters 475A, 476, 476A,
20 477A, 477C, 478, 479, 479A, and 479B, “board” and “utilities
21 board” mean the Iowa utilities board.
22 Sec. 7. Section 477A.1, Code 2024, is amended by adding the
23 following new subsections:
24 NEW SUBSECTION. 2A. “Cable or video service” includes the
25 terms “cable service”, “cable system”, and “video service”.
26 NEW SUBSECTION. 4A. “Competitive cable or video service
27 provider” includes the terms “competitive cable service provider”
28 and “competitive video service providers”.
29 Sec. 8. Section 477A.1, subsection 7, Code 2024, is amended
30 to read as follows:
31 7. “Franchise” means an initial authorization, or renewal
32 of an authorization, issued by the board or a municipality,
33 regardless of whether the authorization is designated as a
34 franchise, permit, license, resolution, contract, certificate,
35 agreement, or otherwise, that authorizes the construction and
1 operation of a cable system person to erect, maintain, and
2 operate plants and systems for the provision of a cable or
3 video service provider’s network in a public right-of-way.
4 Sec. 9. Section 477A.1, subsection 9, paragraph a, Code
5 2024, is amended to read as follows:
6 a. “Gross revenues” means all consideration of any kind or
7 nature, including but not limited to cash, credits, property,
8 and in-kind contributions, received from subscribers for the
9 provision of cable service over a cable system by a competitive
10 cable service provider or for the provision of or video service
11 by a competitive cable or video service provider within a
12 municipality’s jurisdiction. Gross revenues are limited to the
13 following:
14 (1) Recurring charges for cable service or video service.
15 (2) Event-based charges for cable service or video service,
16 including but not limited to pay-per-view and video-on-demand
17 charges.
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18 (3) Rental of set-top boxes and other cable service or video
19 service equipment.
20 (4) Service charges related to the provision of cable
21 service or video service, including but not limited to
22 activation, installation, and repair charges.
23 (5) Administrative charges related to the provision of
24 cable service or video service, including but not limited to
25 service order and service termination charges.
26 (6) A pro rata portion of all revenue derived, less refunds,
27 rebates, or discounts, by a cable service provider or a video
28 service provider for advertising over the cable service or
29 video service network to subscribers within the franchise area
30 where the numerator is the number of subscribers within the
31 franchise area, and the denominator is the total number of
32 subscribers reached by such advertising. This subparagraph
33 applies only to municipalities that include this provision in
34 their franchise agreements as of January 1, 2007.
35 Sec. 10. Section 477A.1, subsection 9, paragraph b,
1 subparagraphs (2), (4), (5), (6), (7), (8), (9), and (11), Code
2 2024, are amended to read as follows:
3 (2) Revenues received by any affiliate or any other person
4 in exchange for supplying goods or services used by the person
5 providing cable service or video service.
6 (4) Regardless of whether the services are bundled,
7 packaged, or functionally integrated with cable service
8 or video service, any revenues derived by the holder of
9 a certificate of franchise authority from services not
10 classified as cable service or video service, including,
11 without limitation, revenue received from telecommunications
12 services, revenue received from information services, revenue
13 received in connection with home-shopping services, or any
14 other revenues attributed by the competitive cable service
15 provider or competitive video service provider to noncable
16 service or nonvideo service in accordance with the holder’s
17 books and records kept in the regular course of business and
18 any applicable rules, regulations, standards, or orders.
19 (5) Revenues paid by subscribers to home-shopping
20 programmers directly from the sale of merchandise through any
21 home-shopping channel offered as part of the cable services or
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22 video services.
23 (6) Revenues from the sale of cable services or video
24 services for resale in which the purchaser is required to
25 collect the franchise fee from the purchaser’s customer.
26 (7) Revenues from any tax of general applicability imposed
27 upon the competitive cable service provider or competitive
28 video service provider or upon subscribers by a city, state,
29 federal, or any other governmental entity and required to
30 be collected by the competitive cable service provider or
31 competitive video service provider and remitted to the taxing
32 entity, including but not limited to sales or use tax, gross
33 receipts tax, excise tax, utility users tax, public service
34 tax, and communication taxes, and including the franchise fee
35 imposed under section 477A.7.
1 (8) Revenues forgone from the provision of cable services
2 or video services to public institutions, public schools, or
3 governmental entities at no charge.
4 (9) Revenues forgone from the competitive cable service
5 provider’s or competitive video service provider’s provision of
6 free or reduced-cost video service to any person, including,
7 without limitation, any municipality and other public
8 institutions or other institutions.
9 (11) Revenues from reimbursements by programmers of
10 marketing costs incurred by the competitive cable service
11 provider or competitive video service provider for the
12 introduction or promotion of new programming.
13 Sec. 11. Section 477A.2, Code 2024, is amended to read as
14 follows:
15 477A.2 Certificate of franchise authority requirement.
16 1. After July 1, 2007, a person providing cable service
17 or video service in this state shall not provide such service
18 without a franchise. The franchise may be issued by either the
19 board pursuant to section 477A.3 or by a municipality pursuant
20 to section 364.2.
21 2. a. A person providing cable service or video service
22 under a franchise agreement with a municipality prior to July
23 1, 2007, is not subject to this section with respect to such
24 municipality until the franchise agreement expires or is
25 converted pursuant to subsection 6.
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26 b. Upon expiration of a franchise, a person may choose to
27 renegotiate a franchise agreement with a municipality or may
28 choose to obtain a certificate of franchise authority under
29 this chapter. An application for a certificate of franchise
30 authority pursuant to this subsection may be filed within
31 sixty days prior to the expiration of a municipal franchise
32 agreement. A certificate of franchise authority obtained
33 pursuant to an application filed prior to the expiration of
34 a municipal franchise agreement shall take effect upon the
35 expiration date of the municipal franchise agreement.
1 c. A municipal utility that provides cable service or
2 video service in this state is not subject to this section and
3 shall not be required to obtain a certificate of franchise
4 authority pursuant to this chapter in the municipality in
5 which the provision of cable service or video service by that
6 municipality was originally approved.
7 3. For purposes of this section, a person providing
8 cable service or video service is deemed to have executed a
9 franchise agreement to provide cable service or video service
10 with a specific municipality if an affiliate or predecessor
11 of the person providing cable service or video service has
12 or had executed an unexpired franchise agreement with that
13 municipality as of May 29, 2007.
14 4. A competitive cable service provider or competitive
15 video service provider shall provide at least thirty days’
16 notice to each municipality with authority to grant a franchise
17 in the service area, and to the incumbent cable or video
18 provider, in which the competitive cable service provider or
19 competitive video service provider is granted authority to
20 provide service under a certificate of franchise authority that
21 the competitive cable service provider or competitive video
22 service provider will offer cable services or video services
23 within the jurisdiction of the municipality, and shall not
24 provide service without having provided such thirty days’
25 notice. A copy of the notice shall be filed with the board on
26 the date that the notice is provided. All notices required by
27 this subsection shall be sent by certified mail.
28 5. As used in this section, “affiliate” includes but is
29 not limited to a person that directly, or indirectly through
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30 one or more intermediaries, controls, is controlled by, or is
31 under common control with a person receiving, obtaining, or
32 operating under a franchise agreement with a municipality to
33 provide cable service or video service through merger, sale,
34 assignment, restructuring, or any other type of transaction.
35 6. If a competitive cable service provider or a competitive
1 video service provider applies for a certificate of franchise
2 authority to operate within a municipality, the incumbent
3 cable provider may, at its discretion, apply for a certificate
4 of franchise authority for that same municipality. Such
5 application shall be automatically granted on the same day
6 as a competitive cable service provider or competitive video
7 service provider files a thirty days’ notice of offering
8 service as required pursuant to subsection 4. The franchise
9 agreement with the municipality is terminated on the date the
10 board issues the certificate of franchise authority to an
11 incumbent cable provider. The terms and conditions of the
12 certificate of franchise authority shall be the same as the
13 terms and conditions of a competitive cable service provider or
14 a competitive video service provider pursuant to this chapter
15 and shall replace the terms and conditions of the franchise
16 agreement previously granted by the municipality.
17 Sec. 12. Section 477A.3, subsection 1, paragraphs a, c, d,
18 and f, Code 2024, are amended to read as follows:
19 a. That the applicant has filed or will timely file with
20 the federal communications commission all forms required by
21 the commission in advance of offering cable service or video
22 service in this state.
23 c. That the applicant agrees to comply with all applicable
24 state laws and nondiscriminatory municipal ordinances and
25 regulations regarding the use and occupation of a public
26 right-of-way in the delivery of the cable service or video
27 service, to the extent consistent with this chapter, including
28 the police powers of the municipalities in which the service
29 is delivered.
30 d. A description of the service area to be served and the
31 municipalities to be served by the applicant, which may include
32 certain designations of unincorporated areas. This description
33 shall be updated by the applicant prior to the expansion of
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34 cable service or video service to a previously undesignated
35 service area and, upon such expansion, notice shall be given to
1 the board of the service area to be served by the applicant.
2 f. Documentation that the applicant possesses sufficient
3 managerial, technical, and financial capability to provide the
4 cable service or video service proposed in the service area.
5 Sec. 13. Section 477A.3, subsection 1, paragraph g, Code