Bill Text: IA SF2300 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to public utilities, including energy production, public utility affiliates, and cable and video service.(Formerly SSB 3075.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-04-19 - Withdrawn. S.J. 942. [SF2300 Detail]
Download: Iowa-2023-SF2300-Introduced.html
Senate
File
2300
-
Introduced
SENATE
FILE
2300
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3075)
A
BILL
FOR
An
Act
relating
to
public
utilities,
including
energy
1
production,
public
utility
affiliates,
and
cable
and
video
2
service.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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5445SV
(2)
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lh/js
S.F.
2300
DIVISION
I
1
ENERGY
PRODUCTION
2
Section
1.
Section
476.42,
subsection
1,
paragraph
a,
3
subparagraph
(1),
Code
2024,
is
amended
to
read
as
follows:
4
(1)
A
solar,
wind
turbine,
electric
storage
unit,
nuclear,
5
waste
management,
resource
recovery,
refuse-derived
fuel,
6
agricultural
crops
or
residues,
or
woodburning
facility.
For
7
purposes
of
this
definition
only,
“waste
management”
includes
a
8
facility
using
plasma
gasification
to
produce
synthetic
gas,
9
either
as
a
stand-alone
fuel
or
for
blending
with
natural
gas,
10
the
output
of
which
is
used
to
generate
electricity
or
steam.
11
For
purposes
of
this
definition
only,
“plasma
gasification”
12
means
the
thermal
dissociation
of
carbonaceous
material
into
13
fragments
of
compounds
in
an
oxygen-starved
environment.
14
Sec.
2.
Section
476.48,
subsection
6,
Code
2024,
is
amended
15
by
striking
the
subsection.
16
Sec.
3.
Section
476A.1,
subsection
5,
Code
2024,
is
amended
17
to
read
as
follows:
18
5.
“Facility”
means
any
electric
power
generating
plant
,
19
electric
storage
unit,
or
a
combination
of
plants
or
units
at
20
a
single
site,
owned
by
any
person,
with
a
total
capacity
of
21
twenty-five
megawatts
of
electricity
for
plants
or
twenty-five
22
or
more
megawatt
hours
of
electricity
for
electric
storage
23
units,
and
those
associated
transmission
lines
connecting
the
24
generating
plant
or
electric
storage
unit
to
either
a
power
25
transmission
system
or
an
interconnected
primary
transmission
26
system
or
both.
Transmission
lines
subject
to
the
provisions
27
of
this
subchapter
shall
not
require
a
franchise
under
chapter
28
478
.
29
DIVISION
II
30
PUBLIC
UTILITY
AFFILIATES
31
Sec.
4.
Section
476.74,
subsection
5,
Code
2024,
is
amended
32
to
read
as
follows:
33
5.
Exemption.
The
provisions
of
this
section
requiring
34
filing
of
contracts
or
agreements
with
the
board
shall
not
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apply
to
transactions
with
an
affiliate
where
the
amount
of
1
consideration
involved
is
not
in
excess
of
fifty
thousand
2
dollars
or
five
percent
of
the
capital
equity
of
the
utility,
3
whichever
is
smaller
two
hundred
fifty
thousand
dollars
.
4
However,
regularly
recurring
payments
under
a
general
or
5
continuing
arrangement
which
that
aggregate
a
greater
annual
6
amount
shall
not
be
broken
down
into
a
series
of
transactions
7
to
come
within
this
exemption.
In
any
proceeding
involving
8
the
rates,
charges
,
or
practices
of
the
public
utility,
the
9
board
may
exclude
from
the
accounts
of
the
public
utility
10
any
unreasonable
payment
or
compensation
made
pursuant
to
11
any
contract
or
arrangement
which
that
is
not
required
to
be
12
filed
under
this
subsection.
All
contracts
or
agreements
13
between
a
public
utility
and
an
affiliate
are
subject
to
14
the
cross-subsidization
prohibition
under
section
476.78,
15
regardless
of
whether
the
filing
of
information
is
required
by
16
this
section.
17
DIVISION
III
18
CABLE
OR
VIDEO
SERVICE
19
Sec.
5.
Section
474.1,
subsection
4,
Code
2024,
is
amended
20
to
read
as
follows:
21
4.
As
used
in
this
chapter
and
chapters
475A
,
476
,
476A
,
22
477A,
477C
,
478
,
479
,
479A
,
and
479B
,
“board”
and
“utilities
23
board”
mean
the
Iowa
utilities
board.
24
Sec.
6.
Section
477A.1,
Code
2024,
is
amended
by
adding
the
25
following
new
subsections:
26
NEW
SUBSECTION
.
2A.
“Cable
or
video
service”
includes
the
27
terms
“cable
service”
,
“cable
system”
,
and
“video
service”
.
28
NEW
SUBSECTION
.
4A.
“Competitive
cable
or
video
service
29
provider”
includes
the
terms
“competitive
cable
service
provider”
30
and
“competitive
video
service
providers”
.
31
Sec.
7.
Section
477A.1,
subsection
7,
Code
2024,
is
amended
32
to
read
as
follows:
33
7.
“Franchise”
means
an
initial
authorization,
or
renewal
34
of
an
authorization,
issued
by
the
board
or
a
municipality,
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regardless
of
whether
the
authorization
is
designated
as
a
1
franchise,
permit,
license,
resolution,
contract,
certificate,
2
agreement,
or
otherwise,
that
authorizes
the
construction
and
3
operation
of
a
cable
system
person
to
erect,
maintain,
and
4
operate
plants
and
systems
for
the
provision
of
a
cable
or
5
video
service
provider’s
network
in
a
public
right-of-way.
6
Sec.
8.
Section
477A.1,
subsection
9,
paragraph
a,
Code
7
2024,
is
amended
to
read
as
follows:
8
a.
“Gross
revenues”
means
all
consideration
of
any
kind
or
9
nature,
including
but
not
limited
to
cash,
credits,
property,
10
and
in-kind
contributions
,
received
from
subscribers
for
the
11
provision
of
cable
service
over
a
cable
system
by
a
competitive
12
cable
service
provider
or
for
the
provision
of
or
video
service
13
by
a
competitive
cable
or
video
service
provider
within
a
14
municipality’s
jurisdiction.
Gross
revenues
are
limited
to
the
15
following:
16
(1)
Recurring
charges
for
cable
service
or
video
service.
17
(2)
Event-based
charges
for
cable
service
or
video
service,
18
including
but
not
limited
to
pay-per-view
and
video-on-demand
19
charges.
20
(3)
Rental
of
set-top
boxes
and
other
cable
service
or
video
21
service
equipment.
22
(4)
Service
charges
related
to
the
provision
of
cable
23
service
or
video
service,
including
but
not
limited
to
24
activation,
installation,
and
repair
charges.
25
(5)
Administrative
charges
related
to
the
provision
of
26
cable
service
or
video
service,
including
but
not
limited
to
27
service
order
and
service
termination
charges.
28
(6)
A
pro
rata
portion
of
all
revenue
derived,
less
refunds,
29
rebates,
or
discounts,
by
a
cable
service
provider
or
a
video
30
service
provider
for
advertising
over
the
cable
service
or
31
video
service
network
to
subscribers
within
the
franchise
area
32
where
the
numerator
is
the
number
of
subscribers
within
the
33
franchise
area,
and
the
denominator
is
the
total
number
of
34
subscribers
reached
by
such
advertising.
This
subparagraph
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applies
only
to
municipalities
that
include
this
provision
in
1
their
franchise
agreements
as
of
January
1,
2007.
2
Sec.
9.
Section
477A.1,
subsection
9,
paragraph
b,
3
subparagraphs
(2),
(4),
(5),
(6),
(7),
(8),
(9),
and
(11),
Code
4
2024,
are
amended
to
read
as
follows:
5
(2)
Revenues
received
by
any
affiliate
or
any
other
person
6
in
exchange
for
supplying
goods
or
services
used
by
the
person
7
providing
cable
service
or
video
service.
8
(4)
Regardless
of
whether
the
services
are
bundled,
9
packaged,
or
functionally
integrated
with
cable
service
10
or
video
service,
any
revenues
derived
by
the
holder
of
11
a
certificate
of
franchise
authority
from
services
not
12
classified
as
cable
service
or
video
service,
including,
13
without
limitation,
revenue
received
from
telecommunications
14
services,
revenue
received
from
information
services,
revenue
15
received
in
connection
with
home-shopping
services,
or
any
16
other
revenues
attributed
by
the
competitive
cable
service
17
provider
or
competitive
video
service
provider
to
noncable
18
service
or
nonvideo
service
in
accordance
with
the
holder’s
19
books
and
records
kept
in
the
regular
course
of
business
and
20
any
applicable
rules,
regulations,
standards,
or
orders.
21
(5)
Revenues
paid
by
subscribers
to
home-shopping
22
programmers
directly
from
the
sale
of
merchandise
through
any
23
home-shopping
channel
offered
as
part
of
the
cable
services
or
24
video
services.
25
(6)
Revenues
from
the
sale
of
cable
services
or
video
26
services
for
resale
in
which
the
purchaser
is
required
to
27
collect
the
franchise
fee
from
the
purchaser’s
customer.
28
(7)
Revenues
from
any
tax
of
general
applicability
imposed
29
upon
the
competitive
cable
service
provider
or
competitive
30
video
service
provider
or
upon
subscribers
by
a
city,
state,
31
federal,
or
any
other
governmental
entity
and
required
to
32
be
collected
by
the
competitive
cable
service
provider
or
33
competitive
video
service
provider
and
remitted
to
the
taxing
34
entity,
including
but
not
limited
to
sales
or
use
tax,
gross
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receipts
tax,
excise
tax,
utility
users
tax,
public
service
1
tax,
and
communication
taxes,
and
including
the
franchise
fee
2
imposed
under
section
477A.7
.
3
(8)
Revenues
forgone
from
the
provision
of
cable
services
4
or
video
services
to
public
institutions,
public
schools,
or
5
governmental
entities
at
no
charge.
6
(9)
Revenues
forgone
from
the
competitive
cable
service
7
provider’s
or
competitive
video
service
provider’s
provision
of
8
free
or
reduced-cost
video
service
to
any
person,
including,
9
without
limitation,
any
municipality
and
other
public
10
institutions
or
other
institutions.
11
(11)
Revenues
from
reimbursements
by
programmers
of
12
marketing
costs
incurred
by
the
competitive
cable
service
13
provider
or
competitive
video
service
provider
for
the
14
introduction
or
promotion
of
new
programming.
15
Sec.
10.
Section
477A.2,
Code
2024,
is
amended
to
read
as
16
follows:
17
477A.2
Certificate
of
franchise
authority
requirement.
18
1.
After
July
1,
2007,
a
person
providing
cable
service
19
or
video
service
in
this
state
shall
not
provide
such
service
20
without
a
franchise.
The
franchise
may
be
issued
by
either
the
21
board
pursuant
to
section
477A.3
or
by
a
municipality
pursuant
22
to
section
364.2
.
23
2.
a.
A
person
providing
cable
service
or
video
service
24
under
a
franchise
agreement
with
a
municipality
prior
to
July
25
1,
2007,
is
not
subject
to
this
section
with
respect
to
such
26
municipality
until
the
franchise
agreement
expires
or
is
27
converted
pursuant
to
subsection
6
.
28
b.
Upon
expiration
of
a
franchise,
a
person
may
choose
to
29
renegotiate
a
franchise
agreement
with
a
municipality
or
may
30
choose
to
obtain
a
certificate
of
franchise
authority
under
31
this
chapter
.
An
application
for
a
certificate
of
franchise
32
authority
pursuant
to
this
subsection
may
be
filed
within
33
sixty
days
prior
to
the
expiration
of
a
municipal
franchise
34
agreement.
A
certificate
of
franchise
authority
obtained
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pursuant
to
an
application
filed
prior
to
the
expiration
of
1
a
municipal
franchise
agreement
shall
take
effect
upon
the
2
expiration
date
of
the
municipal
franchise
agreement.
3
c.
A
municipal
utility
that
provides
cable
service
or
4
video
service
in
this
state
is
not
subject
to
this
section
and
5
shall
not
be
required
to
obtain
a
certificate
of
franchise
6
authority
pursuant
to
this
chapter
in
the
municipality
in
7
which
the
provision
of
cable
service
or
video
service
by
that
8
municipality
was
originally
approved.
9
3.
For
purposes
of
this
section
,
a
person
providing
10
cable
service
or
video
service
is
deemed
to
have
executed
a
11
franchise
agreement
to
provide
cable
service
or
video
service
12
with
a
specific
municipality
if
an
affiliate
or
predecessor
13
of
the
person
providing
cable
service
or
video
service
has
14
or
had
executed
an
unexpired
franchise
agreement
with
that
15
municipality
as
of
May
29,
2007.
16
4.
A
competitive
cable
service
provider
or
competitive
17
video
service
provider
shall
provide
at
least
thirty
days’
18
notice
to
each
municipality
with
authority
to
grant
a
franchise
19
in
the
service
area,
and
to
the
incumbent
cable
or
video
20
service
provider,
in
which
the
competitive
cable
service
21
provider
or
competitive
video
service
provider
is
granted
22
authority
to
provide
service
under
a
certificate
of
franchise
23
authority
that
the
competitive
cable
service
provider
or
24
competitive
video
service
provider
will
offer
cable
services
25
or
video
services
within
the
jurisdiction
of
the
municipality,
26
and
shall
not
provide
service
without
having
provided
such
27
thirty
days’
notice.
A
copy
of
the
notice
shall
be
filed
with
28
the
board
on
the
date
that
the
notice
is
provided.
All
notices
29
required
by
this
subsection
shall
be
sent
by
certified
mail.
30
5.
As
used
in
this
section
,
“affiliate”
includes
but
is
31
not
limited
to
a
person
that
directly,
or
indirectly
through
32
one
or
more
intermediaries,
controls,
is
controlled
by,
or
is
33
under
common
control
with
a
person
receiving,
obtaining,
or
34
operating
under
a
franchise
agreement
with
a
municipality
to
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provide
cable
service
or
video
service
through
merger,
sale,
1
assignment,
restructuring,
or
any
other
type
of
transaction.
2
6.
If
a
competitive
cable
service
provider
or
a
competitive
3
video
service
provider
applies
for
a
certificate
of
franchise
4
authority
to
operate
within
a
municipality,
the
incumbent
5
cable
provider
may,
at
its
discretion,
apply
for
a
certificate
6
of
franchise
authority
for
that
same
municipality.
Such
7
application
shall
be
automatically
granted
on
the
same
day
8
as
a
competitive
cable
service
provider
or
competitive
video
9
service
provider
files
a
thirty
days’
notice
of
offering
10
service
as
required
pursuant
to
subsection
4
.
The
franchise
11
agreement
with
the
municipality
is
terminated
on
the
date
the
12
board
issues
the
certificate
of
franchise
authority
to
an
13
incumbent
cable
provider.
The
terms
and
conditions
of
the
14
certificate
of
franchise
authority
shall
be
the
same
as
the
15
terms
and
conditions
of
a
competitive
cable
service
provider
or
16
a
competitive
video
service
provider
pursuant
to
this
chapter
17
and
shall
replace
the
terms
and
conditions
of
the
franchise
18
agreement
previously
granted
by
the
municipality.
19
Sec.
11.
Section
477A.3,
subsection
1,
paragraphs
a,
c,
d,
20
and
f,
Code
2024,
are
amended
to
read
as
follows:
21
a.
That
the
applicant
has
filed
or
will
timely
file
with
22
the
federal
communications
commission
all
forms
required
by
23
the
commission
in
advance
of
offering
cable
service
or
video
24
service
in
this
state.
25
c.
That
the
applicant
agrees
to
comply
with
all
applicable
26
state
laws
and
nondiscriminatory
municipal
ordinances
and
27
regulations
regarding
the
use
and
occupation
of
a
public
28
right-of-way
in
the
delivery
of
the
cable
service
or
video
29
service,
to
the
extent
consistent
with
this
chapter
,
including
30
the
police
powers
of
the
municipalities
in
which
the
service
31
is
delivered.
32
d.
A
description
of
the
service
area
to
be
served
and
the
33
municipalities
to
be
served
by
the
applicant
,
which
may
include
34
certain
designations
of
unincorporated
areas.
This
description
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shall
be
updated
by
the
applicant
prior
to
the
expansion
of
1
cable
service
or
video
service
to
a
previously
undesignated
2
service
area
and,
upon
such
expansion,
notice
shall
be
given
to
3
the
board
of
the
service
area
to
be
served
by
the
applicant.
4
f.
Documentation
that
the
applicant
possesses
sufficient
5
managerial,
technical,
and
financial
capability
to
provide
the
6
cable
service
or
video
service
proposed
in
the
service
area.
7
Sec.
12.
Section
477A.3,
subsection
1,
paragraph
g,
Code
8
2024,
is
amended
by
striking
the
paragraph.
9
Sec.
13.
Section
477A.3,
subsections
5
and
9,
Code
2024,
are
10
amended
to
read
as
follows:
11
5.
The
certificate
of
franchise
authority
issued
by
the
12
board
shall
contain
all
of
the
following:
13
a.
A
grant
of
authority
to
provide
cable
service
or
video
14
service
in
the
service
area
designated
in
the
application.
15
b.
A
grant
of
authority
to
use
and
occupy
the
public
16
right-of-way
in
the
delivery
for
the
purpose
of
erecting,
17
maintaining,
and
operating
plants
and
systems
for
the
provision
18
of
cable
service
or
video
service,
subject
to
the
laws
of
this
19
state,
including
the
police
powers
of
the
municipalities
in
20
which
the
service
is
delivered.
21
c.
A
statement
that
the
grant
of
authority
provided
by
the
22
certificate
is
subject
to
the
lawful
operation
of
the
cable
23
service
or
video
service
by
the
applicant
or
the
applicant’s
24
successor.
25
d.
A
statement
that
the
franchise
is
for
a
term
of
ten
26
twenty-five
years,
is
renewable
under
the
terms
of
this
27
section
,
and
is
nonexclusive.
28
9.
The
certificate
of
franchise
authority
issued
by
the
29
board
may
be
terminated
by
a
person
providing
cable
service
or
30
video
service
by
submitting
written
notice
to
the
board
and
31
any
affected
municipality.
Neither
the
board
nor
an
affected
32
municipality
shall
have
authority
to
review
or
require
approval
33
of
such
termination.
34
Sec.
14.
Section
477A.3,
subsection
6,
paragraph
a,
Code
35
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2024,
is
amended
to
read
as
follows:
1
a.
If
the
holder
of
a
certificate
of
franchise
authority
2
fails
to
commence
operation
of
a
cable
system
or
video
service
3
network
within
twelve
months
from
the
date
the
application
is
4
granted,
the
board
may
determine
that
the
applicant
is
not
in
5
compliance
with
the
certificate
of
franchise
authority
and
may
6
revoke
the
certificate.
7
Sec.
15.
Section
477A.3,
subsection
7,
paragraph
a,
Code
8
2024,
is
amended
to
read
as
follows:
9
a.
In
the
event
that
an
applicant
granted
a
certificate
10
of
franchise
authority
subsequently
ceases
to
engage
in
11
construction
or
operation
of
a
cable
system
or
video
service
12
network
and
is
no
longer
providing
service,
the
applicant
13
shall
notify
the
municipality,
the
board,
and
the
incumbent
14
cable
provider
on
the
date
that
construction
or
service
is
15
terminated.
16
Sec.
16.
Section
477A.4,
Code
2024,
is
amended
to
read
as
17
follows:
18
477A.4
Applicability
to
federal
law.
19
To
the
extent
required
by
applicable
law,
a
certificate
of
20
franchise
authority
issued
under
this
chapter
shall
constitute
21
a
“franchise”
for
the
purposes
of
47
U.S.C.
§541(b)(1).
To
22
the
extent
required
for
the
purposes
of
47
U.S.C.
§521
–
23
561,
only
the
state
of
Iowa
shall
constitute
the
exclusive
24
franchising
authority
for
competitive
cable
service
providers
25
and
competitive
video
service
providers
in
this
state.
26
Sec.
17.
Section
477A.6,
subsections
1
and
2,
Code
2024,
are
27
amended
to
read
as
follows:
28
1.
Not
later
than
one
hundred
eighty
days
after
a
request
by
29
a
municipality
in
which
a
competitive
cable
service
provider
or
30
a
competitive
video
service
provider
is
providing
cable
service
31
or
video
service,
the
holder
of
the
certificate
of
authority
32
for
that
municipality
shall
designate
a
sufficient
amount
of
33
capacity
on
the
certificate
holder’s
communications
network
34
to
allow
the
provision
of
a
comparable
number
of
public,
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educational,
and
governmental
channels
that
the
incumbent
cable
1
provider
in
the
municipality
has
activated
and
provided
in
the
2
municipality
under
the
terms
of
a
franchise
agreement
with
a
3
municipality
prior
to
July
1,
2007.
If
no
such
channels
are
4
active,
the
municipality
may
request
a
maximum
of
three
public,
5
educational,
and
governmental
channels
for
a
municipality
6
with
a
population
of
at
least
fifty
thousand,
and
a
maximum
7
of
two
public,
educational,
and
governmental
channels
for
a
8
municipality
with
a
population
of
less
than
fifty
thousand.
9
a.
The
public,
educational,
and
governmental
content
to
10
be
provided
pursuant
to
this
section
and
the
operation
of
11
the
public,
educational,
and
governmental
channels
shall
be
12
the
responsibility
of
the
municipality
receiving
the
benefit
13
of
such
capacity.
The
holder
of
a
certificate
of
franchise
14
authority
shall
be
responsible
only
for
the
transmission
of
15
such
content,
subject
to
technological
restraints.
16
b.
The
municipality
receiving
capacity
under
this
section
17
shall
ensure
that
all
transmissions,
content,
or
programming
to
18
be
transmitted
by
the
holder
of
the
certificate
of
franchise
19
authority
are
provided
or
submitted
to
the
competitive
20
cable
service
provider
or
competitive
video
service
provider
21
in
a
manner
or
form
that
is
capable
of
being
accepted
and
22
transmitted
by
the
competitive
cable
service
provider
or
23
competitive
video
service
provider,
without
requirement
for
24
additional
alteration
or
change
in
the
content,
over
the
25
particular
network
of
the
competitive
cable
service
provider
26
or
competitive
video
service
provider,
which
is
compatible
27
with
the
technology
or
protocol
utilized
by
the
competitive
28
cable
service
provider
or
competitive
video
service
provider
29
to
deliver
services.
At
its
election
the
municipality
may
30
reasonably
request
any
cable
service
provider
or
video
service
31
provider
to
make
any
necessary
change
to
the
form
of
any
32
programming,
furnished
for
transmission,
which
shall
be
charged
33
to
the
municipality,
not
to
exceed
the
provider’s
incremental
34
costs.
The
municipality
shall
have
up
to
twelve
months
to
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reimburse
the
cable
service
provider
or
video
service
provider.
1
The
provision
of
such
transmissions,
content,
or
programming
2
to
the
competitive
cable
service
provider
or
competitive
video
3
service
provider
shall
constitute
authorization
for
such
4
holder
to
carry
such
transmissions,
content,
or
programming,
5
at
the
holder’s
option,
beyond
the
jurisdictional
boundaries
6
stipulated
in
any
franchise
agreement.
7
2.
Where
technically
feasible,
a
competitive
cable
service
8
provider
or
competitive
video
service
provider
that
is
a
holder
9
of
a
certificate
of
franchise
authority
and
an
incumbent
10
cable
provider
shall
use
reasonable
efforts
to
interconnect
11
the
cable
or
video
communications
network
systems
of
the
12
certificate
holder
and
incumbent
cable
provider
for
the
purpose
13
of
providing
public,
educational,
and
governmental
programming.
14
Interconnection
may
be
accomplished
by
direct
cable,
microwave
15
link,
satellite,
or
other
reasonable
method
of
connection.
A
16
holder
of
a
certificate
of
franchise
authority
and
an
incumbent
17
cable
provider
shall
negotiate
in
good
faith
and
an
incumbent
18
cable
provider
shall
not
withhold
interconnection
of
public,
19
educational,
or
governmental
channels.
20
Sec.
18.
Section
477A.7,
subsections
1
and
3,
Code
2024,
are
21
amended
to
read
as
follows:
22
1.
a.
In
any
service
area
in
which
a
competitive
cable
23
service
provider
or
a
competitive
video
service
provider
24
holding
a
certificate
of
franchise
authority
offers
or
provides
25
cable
service
or
video
service,
the
competitive
cable
service
26
provider
or
competitive
video
service
provider
shall
calculate
27
and
pay
a
franchise
fee
to
the
municipality
with
authority
to
28
grant
a
certificate
of
franchise
authority
in
that
service
area
29
upon
the
municipality’s
written
request.
If
the
municipality
30
makes
such
a
request,
the
franchise
fee
shall
be
due
and
paid
31
to
the
municipality
on
a
quarterly
basis,
not
later
than
32
forty-five
days
after
the
close
of
the
quarter,
and
shall
be
33
calculated
as
a
percentage
of
gross
revenues.
The
municipality
34
shall
not
demand
any
additional
franchise
fees
from
the
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competitive
cable
service
provider
or
competitive
video
service
1
provider,
and
shall
not
demand
the
use
of
any
other
calculation
2
method
for
the
franchise
fee.
3
b.
All
cable
service
providers
and
video
service
providers
4
shall
pay
a
franchise
fee
at
the
same
percent
of
gross
revenues
5
as
had
been
assessed
on
the
incumbent
cable
provider
by
the
6
municipality
as
of
January
1,
2007,
and
such
percentage
shall
7
continue
to
apply
for
the
period
of
the
remaining
term
of
the
8
existing
franchise
agreement
with
the
municipality.
Upon
9
expiration
of
the
period
of
the
remaining
term
of
the
agreement
10
with
the
incumbent
cable
service
provider,
a
municipality
may
11
request
an
increase
in
the
franchise
fee
up
to
five
percent
of
12
gross
revenues.
13
c.
A
provider
who
is
both
a
competitive
cable
service
14
provider
and
a
competitive
video
service
provider
shall
be
15
subject
to
and
only
be
required
to
pay
one
franchise
fee
to
a
16
municipality
under
this
subsection
regardless
of
whether
the
17
provider
provides
both
cable
service
and
video
service.
18
d.
At
the
request
of
a
municipality
and
not
more
than
once
19
per
year,
an
independent
auditor
may
perform
reasonable
audits
20
of
the
competitive
cable
service
provider’s
or
competitive
21
video
service
provider’s
calculation
of
the
franchise
fee
under
22
this
subsection
.
The
municipality
shall
bear
the
costs
of
23
any
audit
requested
pursuant
to
this
subsection
,
unless
the
24
audit
discloses
that
the
competitive
cable
service
provider
or
25
competitive
video
service
provider
has
underpaid
franchise
fees
26
by
more
than
five
percent,
in
which
case
the
competitive
cable
27
service
provider
or
competitive
video
service
provider
shall
28
pay
all
of
the
reasonable
and
actual
costs
of
the
audit.
29
e.
A
competitive
cable
service
provider
or
competitive
video
30
service
provider
may
identify
and
collect
the
amount
of
the
31
franchise
fee
as
a
separate
line
item
on
the
regular
bill
of
32
each
subscriber.
33
3.
a.
If
an
incumbent
cable
provider
is
required
by
34
a
franchise
agreement
as
of
January
1,
2007,
to
provide
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institutional
network
capacity
to
a
municipality
for
use
by
1
the
municipality
for
noncommercial
purposes,
the
incumbent
2
cable
provider
and
any
subsequent
holder
of
a
certificate
of
3
franchise
authority
shall
provide
support
only
for
the
existing
4
institutional
network
on
a
pro
rata
basis
per
customer.
Any
5
financial
support
provided
for
an
institutional
network
shall
6
be
limited
to
ongoing
maintenance
and
support
of
the
existing
7
institutional
network.
This
subsection
shall
be
applicable
8
only
to
a
cable
service
provider’s
or
video
service
provider’s
9
first
certificate
of
franchise
authority
issued
under
this
10
chapter
,
and
shall
not
apply
to
any
subsequent
renewals.
For
11
the
purposes
of
this
subsection
,
maintenance
and
support
shall
12
only
include
the
reasonable
incremental
cost
of
moves,
changes,
13
and
restoring
connectivity
of
the
fiber
or
coaxial
cable
lines
14
up
to
a
demarcation
point
at
the
building.
15
b.
For
purposes
of
this
subsection
,
the
number
of
customers
16
of
a
cable
service
provider
or
video
service
provider
shall
17
be
determined
based
on
the
relative
number
of
subscribers
in
18
that
municipality
at
the
end
of
the
prior
calendar
year
as
19
reported
to
the
municipality
by
all
incumbent
cable
providers
20
and
holders
of
a
certificate
of
franchise
authority.
Any
21
records
showing
the
number
of
subscribers
shall
be
considered
22
confidential
records
pursuant
to
section
22.7
.
The
incumbent
23
cable
provider
shall
provide
to
the
municipality,
on
an
annual
24
basis,
the
maintenance
and
support
costs
of
the
institutional
25
network,
subject
to
an
independent
audit.
A
municipality
26
acting
under
this
subsection
shall
notify
and
present
a
bill
27
to
competitive
cable
service
providers
or
competitive
video
28
service
providers
for
the
amount
of
such
support
on
an
annual
29
basis,
beginning
one
year
after
issuance
of
the
certificate
of
30
franchise
authority.
The
annual
institutional
network
support
31
shall
be
due
and
paid
by
the
providers
to
the
municipality
in
32
four
quarterly
payments,
not
later
than
forty-five
days
after
33
the
close
of
each
quarter.
The
municipality
shall
reimburse
34
the
incumbent
cable
provider
for
the
amounts
received
from
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competitive
cable
service
providers
or
competitive
video
1
service
providers.
2
c.
This
subsection
shall
not
apply
if
the
incumbent
3
cable
service
provider
is
a
municipal
utility
providing
4
telecommunications
services
under
section
388.10
.
5
Sec.
19.
Section
477A.10,
subsection
2,
Code
2024,
is
6
amended
to
read
as
follows:
7
2.
A
competitive
cable
service
provider
or
competitive
8
video
service
provider
holding
a
certificate
of
franchise
9
authority
shall
not
deny
access
to
any
group
of
potential
10
residential
subscribers
because
of
the
income
of
residents
in
11
the
local
area
in
which
such
group
resides.
12
Sec.
20.
Section
477A.10,
subsection
3,
paragraph
a,
13
subparagraph
(3),
Code
2024,
is
amended
to
read
as
follows:
14
(3)
These
dwelling
units
do
not
have
cable
or
video
service
15
available
from
another
cable
service
provider
or
video
service
16
provider.
17
Sec.
21.
Section
477A.10,
subsection
3,
paragraph
b,
Code
18
2024,
is
amended
to
read
as
follows:
19
b.
This
subsection
shall
be
applicable
only
after
the
first
20
date
on
which
the
video
service
provider
operating
under
a
21
certificate
of
franchise
authority
is
providing
cable
service
22
or
video
service
to
more
than
fifty
percent
of
all
cable
and
23
video
subscribers
receiving
cable
or
video
service
from
the
24
holders
of
certificates
of
franchise
authority
and
any
other
25
providers
of
cable
or
video
services
operating
under
franchise
26
agreements
with
a
municipality.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
public
utilities,
including
energy
31
production,
public
utility
affiliates,
and
cable
and
video
32
service.
33
DIVISION
I.
Division
I
of
the
bill
relates
to
energy
34
production.
Current
law
defines
an
“alternate
energy
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production
facility”
as
a
solar,
wind
turbine,
waste
1
management,
resource
recovery,
refuse-derived
fuel,
2
agricultural
crops
or
residues,
or
woodburning
facility.
The
3
bill
adds
an
electric
storage
unit
facility
and
a
nuclear
4
facility
to
the
definition.
5
Under
current
law,
the
Iowa
utilities
board
(IUB)
6
administers
a
small
wind
innovation
zone
program
to
optimize
7
local,
regional,
and
state
benefits
from
wind
energy
and
to
8
facilitate
and
expedite
interconnection
of
small
wind
energy
9
systems
with
electric
utilities
throughout
Iowa.
IUB
is
10
required
to
submit
to
the
general
assembly
an
annual
report
11
summarizing
the
number
of
applications
received
from
political
12
subdivisions
seeking
to
be
designated
a
small
wind
innovation
13
zone,
the
number
of
applications
granted,
the
number
of
small
14
wind
energy
systems
generating
electricity
within
each
small
15
wind
innovation
zone,
and
the
amount
of
wind
energy
produced.
16
The
bill
strikes
the
reporting
requirement.
17
Current
law
defines
“facility”,
for
purposes
of
electric
18
power
generating
and
transmission,
as
any
electric
power
19
generating
plant
or
a
combination
of
plants
at
a
single
site,
20
owned
by
any
person,
with
a
total
capacity
of
25
megawatts
of
21
electricity
or
more
and
those
associated
transmission
lines
22
connecting
the
generating
plant
to
either
a
power
transmission
23
system
or
an
interconnected
primary
transmission
system
or
24
both.
The
bill
includes
in
the
definition
of
“facility”
an
25
electric
storage
unit
with
a
capacity
of
25
or
more
megawatt
26
hours
of
electricity.
27
DIVISION
II.
Division
II
of
the
bill
relates
to
public
28
utility
affiliates.
A
public
utility
affiliate
is
a
party
that
29
directly,
or
indirectly
through
one
or
more
intermediaries,
30
controls,
is
controlled
by,
or
is
under
common
control
with
a
31
rate-regulated
public
utility.
Under
current
law,
a
public
32
utility
affiliate
is
required
to
file
documents
relating
to
33
certain
transactions
with
IUB
on
an
annual
basis
unless,
34
subject
to
certain
restrictions,
the
amount
of
consideration
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involved
is
not
in
excess
of
$50,000
or
5
percent
of
the
1
capital
equity
of
the
utility,
whichever
is
smaller.
The
2
bill
changes
the
threshold
amount
to
$250,000
regardless
of
3
the
capital
equity
of
the
utility.
A
contract
or
agreement
4
between
a
public
utility
and
an
affiliate
is
subject
to
a
5
cross-subsidization
prohibition.
6
DIVISION
III.
Division
III
of
the
bill
relates
to
the
7
provision
of
cable
and
video
service.
The
bill
defines
the
8
phrases
“cable
or
video
service”
and
“competitive
cable
or
9
video
service
provider”
to
indicate
the
inclusion
of
terms
10
defined
in
current
law.
11
Current
law
defines
“franchise”,
in
relation
to
cable
or
12
video
service,
as
an
initial
authorization,
or
renewal
of
an
13
authorization,
issued
by
IUB
or
a
municipality,
to
construct
14
and
operate
a
cable
system
or
video
service
provider’s
network
15
in
a
public
right-of-way.
The
bill
removes
“construction
16
and
operation”
from
the
definition
and
instead
refers
to
the
17
authorization
of
a
person
to
erect,
maintain,
and
operate
18
plants
and
systems
for
the
provision
of
a
cable
or
video
19
service
provider’s
network
in
a
public
right-of-way.
20
Current
law
requires
an
applicant
for
a
certificate
of
21
franchise
authority
to
include
in
its
application
copies
of
22
advertisements
or
news
releases
announcing
the
applicant’s
23
intent
to
provide
cable
service
or
video
service
in
the
service
24
area
intended
for
release
if
the
certificate
of
franchise
25
authority
is
granted.
The
bill
strikes
that
requirement.
26
Current
law
requires
a
certificate
of
franchise
authority
27
to
include
a
grant
of
authority
to
use
and
occupy
the
public
28
right-of-way
in
the
delivery
of
cable
or
video
service,
subject
29
to
the
laws
of
this
state,
including
the
police
powers
of
the
30
municipalities
in
which
the
service
is
delivered.
The
bill
31
amends
this
requirement
so
the
certificate
instead
grants
32
authority
to
use
and
occupy
the
public
right-of-way
for
the
33
purpose
of
erecting,
maintaining,
and
operating
plants
and
34
systems
for
the
provision
of
cable
or
video
service.
Current
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