Bill Text: IA HF2446 | 2017-2018 | 87th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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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
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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 any railroad
  1 27 company or other public utility shall be eligible to the office
  1 28 of utilities board member or secretary chief 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 or secretary chief operating officer
  1 33  after appointment shall disqualify the member or secretary
  1 34  chief 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 members and
  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 utility holding 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, or to 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 the executive secretary chief 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 the executive secretary chief 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 the executive secretary chief
  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 16    A 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 21  The 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 the executive
  5 35 secretary chief 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 be sent 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 meeting served 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 the executive secretary chief 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.
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