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Committee approves utility/contractor bill with 10% fee cap after amendment
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Summary
House Bill 2381, amended to include limits on proprietary equipment markups and a 10% cap on design-review and inspection fees, passed the panel 21–1 after the sponsor withdrew two other amendments; the sponsor described the measure as the product of stakeholder negotiations.
The House Commerce Committee advanced House Bill 2381 after attaching amendment 015472 and passing the bill by a recorded vote of 21 ayes and 1 nay.
The sponsor explained the amended bill addresses several items: cleanup language on self-installation for contractors; a prohibition on utilities requiring contractors to purchase proprietary equipment at markup (utilities may require certain equipment but not require purchase from them with markup); an allowance for contractors or private entities to install streetlights without utilities or municipalities being able to mandate that private installation; and a cap of 10% on design-review and inspection fees (the sponsor used an example that a $1,000,000 project could be charged no more than $100,000 under the cap).
The sponsor said the language was negotiated with municipal power systems and electric co-ops and referenced a governance gap that leaves some customers without a form of redress when their power provider sits outside their political subdivision. The sponsor withdrew two other amendments and said he would continue to pursue changes in a future session. Chairman Grills and other members voiced support for continuing work on the issue.
The committee voted after the amendment was added; the clerk announced 21 ayes and 1 nay. Vice Chairman Bricken declared House Bill 2381 passed and advanced it to the finance calendar.
The committee discussion included questions about how the cap would apply when third-party labor or storage costs are involved; the sponsor said contractors or supply houses would be expected to sell at the same rate or that items could be drop-shipped through the utility, and that reasonable stocking fees could be revisited later if needed. No detailed fiscal analysis or implementation schedule was read into the record during the committee exchange.
