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Bill

1450XD

Utilities Commission, Alternative Operator Services and Electric Franchises (1450XD) - Utilities Commission

2025-2026 Regular Session

The bill narrows IUC regulatory power to incarcerated-person calling services only, while removing outdated electric franchise forms but keeping core substantive requirements.

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Bill Summary · 1450XD

Summary of Bill 1450XD (Utilities Commission, Alternative Operator Services and Electric Franchises)

Overview

  • Bill Number: 1450XD
  • Title: Utilities Commission, Alternative Operator Services and Electric Franchises (1450XD) - Utilities Commission
  • Prefiled: Senate/House File (S.F./H.F.) 1450XD
  • Introduced: November 28, 2025
  • Purpose: Update Iowa law to redefine the scope of IUC regulation for rate-regulated utilities and to modernize the format requirements for electric transmission line franchises.

What the bill aims to do

  • Narrow the regulation of “alternative operator services” to only those services related to incarcerated persons.
  • Remove outdated procedural/form requirements in the electric transmission line franchise process while preserving substantive requirements.
  • Clarify and codify how billing for alternative operator services interacts with local exchange utilities.

Key Provisions

1) Section 476.91 – Alternative Operator Telecommunication Services for Incarcerated Persons

  • Definitions refined:
    • “Alternative operator services company” limited to private entities that earn most Iowa intrastate telecom revenue from calls made from non-residential/non-business telephones and provide operator assistance to incarcerated or similar settings.
    • “Incarcerated person calling service” covers any service allowing incarcerated individuals to call outside the facility.
    • “Correctional facility” and related terms are defined to cover jails, holding facilities, detention centers, and other institutions.
  • Jurisdiction narrowed:
    • IUC retains regulatory authority only over incarcerated-person calling services and related activities; other alternative operator services not connected to incarceration are outside the IUC’s scope under this section.
  • Requirements and enforcement:
    • IUC must adopt and enforce tariffs and other requirements for incarcerated-person calling services and the contracting entities (correctional facilities).
  • Billing provisions:
    • A regulated local exchange utility may not bill for regulated telecom services provided by an alternative operator services company unless the AO services company has filed a signed statement with the local exchange utility confirming that all such services will be billed under tariffs approved by the IUC.

2) Section 478.7 – Form of Electric Transmission Line Franchise

  • Current form requirements (blank form prepared by general counsel, signed by the chair, with the official seal) are removed.
  • Substantive information requirements remain:
    • The franchise must still provide: a general description of the improvement, the name and address of the grantee, general terms and conditions, and other necessary information.
  • Process remains overseen by the IUC, but the official form, chair signature, and seal requirements are deleted. The general counsel still prepares the form and ensures compliance with statutory restrictions and regulations.

Affected Parties

  • Incarcerated persons and their access to telecommunication services.
  • Alternative operator services companies that provide incarcerated-person calling services.
  • Contracting entities (correctional facilities) that partner with AO services companies.
  • Local exchange utilities involved in billing for such services.
  • Electric transmission line franchise holders and prospective grantees.

Fiscal and Administrative Impact

  • The bill states there would be no anticipated fiscal impact, as the changes align with existing regulatory framework.
  • Administrative changes include updating regulatory scope and streamlining form requirements for franchises (reducing red tape without altering core information requirements).

Timeline and Implementation

  • No specific dates for implementation are provided in the text. The bill would go through the standard legislative process and, if enacted, would become effective according to its effective-date provisions (not specified in the provided content).

Notes

  • This summary reflects the content and explanations provided in the bill packet, which emphasizes aligning statutory language with current regulatory practice and removing outdated paper-form mechanics while preserving substantive protections and governance.

Compiled from official sources — confirm details with the bill’s official record.

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