SF 235 – Regulation of PBMs
SF 236 – Public utility crossings of railroad rights-of-way
COMMITTEE ACTION:
SF 235/SSB 1107 gives the Iowa Insurance Commissioner specific authority to examine, investigate, inspect and audit Pharmacy Benefits Managers (PBMs). It strengthens last year’s legislation by offering more transparency and clarifying the Commissioner’s authority to review records to determine PBM compliance with Iowa law. After notice and hearing, the Commissioner may impose sanctions (set out in Code section 507B.7) and may suspend or revoke a PBM’s certificate of registration as a third-party administrator, if it is found that the PBM violated any of the regulatory requirements of pharmacy benefits managers (510B), third-party administrators (510) or insurance trade practices (507B). It also explicitly states that all records and information given to the Commissioner are classified as confidential records consistent with current practice regarding confidential information provided to the Iowa Insurance Division. [2/12: short form]
SF 236/SSB 1085 expands the definition of “public utility” applicable to provisions governing public utility crossings of railroad rights-of-way to include electric transmission owners primarily providing service to public utilities. It defines an “electric transmission owner” as an individual or entity that owns and maintains electric transmission facilities, including transmission lines, wires or cables that are capable of operating at an electric voltage of 34.5 kilovolts or greater.
Provisions governing public utility crossings of railroad rights-of-way include rules adopted by the Iowa Utilities Board in consultation with the Department of Transportation addressing notification required prior to the commencement of any crossing activity, a requirement that the railroad and the public utility each maintain and repair the person’s own property within the railroad right-of-way and bear responsibility for each person’s own acts and omissions, the amount and scope of insurance or self-insurance required to cover risks associated with a crossing, a procedure to address the payment of costs associated with the relocation of public utility facilities within the railroad right-of-way necessary to accommodate railroad operations, terms and conditions for securing the payment of any damages by the public utility before it proceeds with a crossing, access to a crossing for repair and maintenance of existing facilities in case of emergency, and engineering standards for utility facilities crossing railroad rights-of-way.
Unless otherwise agreed by the parties or regarded as a special circumstance, a public utility that locates its facilities within a railroad right-of-way for a crossing, other than a crossing along public roads of the state, must pay a railroad a one-time standard crossing fee of $750 in lieu of any license or other fees or charges to reimburse the railroad for its direct expenses incurred as a result of the crossing. The bill takes effect upon enactment and applies retroactively to July 1, 2001. [2/12: short form]