House File 578 - Introduced HOUSE FILE 578 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 239) A BILL FOR An Act relating to the office of the consumer advocate. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2367HV (1) 91 ss/ns
H.F. 578 Section 1. Section 8A.461, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. Unless otherwise provided by law, the governor shall 3 establish a salary for nonelected persons appointed by the 4 governor within the executive branch of state government. 5 In establishing a salary for a person holding a position 6 enumerated in subsection 3 within the range provided, the 7 governor may consider, among other items, the experience of 8 the person in the position, changes in the duties of the 9 position, the incumbents performance of assigned duties, 10 and subordinates salaries. However, the attorney general 11 shall establish the salary of the consumer advocate, the 12 chief justice of the supreme court shall establish the salary 13 of the state court administrator, the ethics and campaign 14 disclosure board shall establish the salary of the executive 15 director, the Iowa public information board shall establish 16 the salary of the executive director, the board of regents 17 shall establish the salary of the executive director, and the 18 Iowa public broadcasting board shall establish the salary of 19 the administrator of the public broadcasting division of the 20 department of education, each within the salary range provided 21 in subsection 3 . 22 Sec. 2. Section 12.91, subsection 1, paragraph b, Code 2025, 23 is amended to read as follows: 24 b. Chargeable expenses means expenses charged by the 25 utilities commission and the office of the consumer advocate 26 division of the department of justice under section 476.10 . 27 Sec. 3. Section 475A.1, subsection 1, Code 2025, is amended 28 to read as follows: 29 1. Appointment. The attorney general governor shall 30 appoint the consumer advocate from among a list of three 31 candidates submitted by a committee consisting of the secretary 32 of agriculture, the auditor of state, and the treasurer of 33 state , who shall serve at the pleasure of the attorney general, 34 subject to confirmation by the senate, no less frequently than 35 -1- LSB 2367HV (1) 91 ss/ns 1/ 6
H.F. 578 once every four years, in accordance with section 2.32 who 1 shall serve a term of five years . The consumer advocate is 2 the chief administrator of the office of the consumer advocate 3 division of the department of justice . 4 Sec. 4. Section 475A.1, Code 2025, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 5. Reporting. The consumer advocate shall 7 regularly report to a committee consisting of the secretary of 8 agriculture, the auditor of state, and the treasurer of state, 9 regarding the activities of the consumer advocate. 10 Sec. 5. Section 475A.3, Code 2025, is amended to read as 11 follows: 12 475A.3 Office employees expenses. 13 1. Office. The office of consumer advocate shall be 14 a separate division of the department of justice and an 15 independent agency located at the same location as the 16 utilities commission. Administrative support services may be 17 provided to the office of the consumer advocate division by the 18 utilities commission. 19 2. Employees. The attorney general consumer advocate may 20 employ attorneys, legal assistants, secretaries, clerks, and 21 other employees necessary for the full and efficient discharge 22 of the duties and responsibilities of the office of the 23 consumer advocate division . The consumer advocate may employ 24 consultants as expert witnesses or technical advisors pursuant 25 to contract as the consumer advocate finds necessary for the 26 full and efficient discharge of the duties of the office. 27 3. Salaries, expenses, and appropriation. The salary of 28 the consumer advocate shall be fixed by the attorney general 29 governor within the salary range set by section 8A.461 . The 30 salaries of employees of the consumer advocate shall be at 31 rates of compensation consistent with current standards in 32 industry. The reimbursement of expenses for the employees and 33 the consumer advocate is as provided by law. The appropriation 34 for the office of consumer advocate shall be a separate line 35 -2- LSB 2367HV (1) 91 ss/ns 2/ 6
H.F. 578 item contained in the appropriation from the commerce revolving 1 fund created in section 546.12 . 2 Sec. 6. Section 475A.6, subsection 2, Code 2025, is amended 3 to read as follows: 4 2. The consumer advocate is entitled to notice and 5 opportunity to be heard in any utilities commission proceeding 6 on objection to an assessment for expenses certified by the 7 consumer advocate. Expenses assessed under this section shall 8 not exceed the amount appropriated for the office of the 9 consumer advocate division of the department of justice . 10 Sec. 7. Section 476.10, subsection 1, paragraph a, Code 11 2025, is amended to read as follows: 12 a. In order to carry out the duties imposed upon it by 13 law, the commission may, at its discretion, allocate and 14 charge directly the expenses attributable to its duties to 15 the person bringing a proceeding before the commission, to 16 persons participating in matters before the commission, or 17 to persons subject to inspection by the commission. The 18 commission shall ascertain the certified expenses incurred and 19 directly chargeable by the office of the consumer advocate 20 division of the department of justice in the performance of its 21 duties. The commission and the consumer advocate separately 22 may decide not to charge expenses to persons who, without 23 expanding the scope of the proceeding or matter, intervene 24 in good faith in a commission proceeding initiated by a 25 person subject to the commissions jurisdiction, the consumer 26 advocate, or the commission on its own motion. For assessments 27 in any proceedings or matters before the commission, the 28 commission and the consumer advocate separately may consider 29 the financial resources of the person, the impact of assessment 30 on participation by intervenors, the nature of the proceeding 31 or matter, and the contribution of a persons participation to 32 the public interest. The commission may present a bill for 33 expenses under this subsection to the person, either at the 34 conclusion of a proceeding or matter, or from time to time 35 -3- LSB 2367HV (1) 91 ss/ns 3/ 6
H.F. 578 during its progress. Presentation of a bill for expenses under 1 this subsection constitutes notice of direct assessment and 2 request for payment in accordance with this section . 3 Sec. 8. Section 476.10, subsection 4, paragraphs a and b, 4 Code 2025, are amended to read as follows: 5 a. Fees paid to the utilities commission shall be deposited 6 in the commerce revolving fund created in section 546.12 . 7 These funds shall be used for the payment, upon appropriation 8 by the general assembly, of the expenses of the utilities 9 commission and the office of the consumer advocate division of 10 the department of justice . 11 b. The administrator and consumer advocate shall account 12 for receipts and disbursements according to the separate duties 13 imposed upon the utilities commission and the office of the 14 consumer advocate division by the laws of this state and each 15 separate duty shall be fiscally self-sustaining. 16 Sec. 9. Section 476.10B, subsections 1, 2, 5, and 7, Code 17 2025, are amended to read as follows: 18 1. For the purposes of this section , building project 19 expenses means expenses that have been approved by the 20 utilities commission for the building and related improvements 21 and furnishings developed under this section and that are 22 considered part of the regulatory expenses charged by the 23 utilities commission and the office of the consumer advocate 24 division of the department of justice for carrying out duties 25 under section 476.10 . 26 2. The department of administrative services, in 27 consultation with the utilities commission and the office of 28 the consumer advocate division of the department of justice , 29 shall provide for the construction of a building to house the 30 utilities commission and the office of the consumer advocate 31 division of the department of justice . A building developed 32 under this subsection shall be a model energy-efficient 33 building that may be used as a public example for similar 34 efforts. The building shall comply with the life cycle cost 35 -4- LSB 2367HV (1) 91 ss/ns 4/ 6
H.F. 578 provisions developed pursuant to section 72.5 . The building 1 shall be located on the capitol complex grounds or at another 2 convenient location in the vicinity of the capitol complex 3 grounds. 4 5. A cost-effective approach for financing construction 5 of the building shall be utilized, which may include but is 6 not limited to lease, lease-purchase, bonding, or installment 7 acquisition arrangement, or a financing arrangement under 8 section 12.28 . If financing for the building is implemented 9 under section 12.28 , the limitation on principal under that 10 section does not apply. This subsection is not a qualification 11 of any other powers which the utilities commission and the 12 office of the consumer advocate division of the department 13 of justice may possess and the authorizations and powers 14 granted under this subsection are not subject to the terms, 15 requirements, or limitations of any other provisions of law. 16 The department of administrative services must comply with 17 the provisions of section 12.28 when entering into financing 18 agreements for the purchase of real or personal property. 19 7. The department of administrative services, in 20 consultation with the utilities commission and the office of 21 the consumer advocate division of the department of justice , 22 shall secure architectural services, contract for construction, 23 engineering, and construction oversight and management, and 24 control the funding associated with the building construction 25 and the buildings operation and maintenance. The department 26 of administrative services may utilize consultants or other 27 expert assistance to address feasibility, planning, or other 28 considerations connected with construction of the building or 29 decision making regarding the building. The department of 30 administrative services, on behalf of the utilities commission 31 and the office of the consumer advocate division of the 32 department of justice , shall consult with the office of the 33 governor, appropriate legislative bodies, and the capitol 34 planning commission. 35 -5- LSB 2367HV (1) 91 ss/ns 5/ 6
H.F. 578 Sec. 10. TRANSITION PROVISIONS. Notwithstanding any other 1 provision of law to the contrary, the term of office of the 2 consumer advocate serving immediately prior to the effective 3 date of this Act shall terminate on the effective date of this 4 Act. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanations substance by the members of the general assembly. 8 This bill relates to the office of the consumer advocate. 9 The bill changes the office of the consumer advocate from a 10 division of the department of justice to an independent agency. 11 The bill requires the consumer advocate to be appointed by 12 the governor, subject to confirmation by the senate, from a 13 list of three candidates provided by a committee consisting 14 of the secretary of agriculture, the auditor of state, and 15 the treasurer of state. The consumer advocate shall serve a 16 term of five years and shall regularly report to a committee 17 consisting of the secretary of agriculture, the auditor of 18 state, and the treasurer of state, regarding the activities 19 of the consumer advocate. The bill makes conforming changes, 20 including by removing the authority of the attorney general 21 to set the salary of the consumer advocate and employ staff 22 to support the office of the consumer advocate. The bill 23 terminates the term of office of the person serving as the 24 consumer advocate immediately prior to the effective date of 25 the bill on the effective date of the bill. 26 -6- LSB 2367HV (1) 91 ss/ns 6/ 6