House Study Bill 13 SENATE/HOUSE FILE BY (PROPOSED IOWA TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the provision of services over certain Iowa 2 communications network connection facilities under specified 3 circumstances. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1296XD 83 6 rn/nh/8 PAG LIN 1 1 Section 1. Section 8D.13, subsection 5, Code 2009, is 1 2 amended to read as follows: 1 3 5. a.TheExcept as provided in paragraph "b", the state 1 4 shall lease all fiberoptic cable facilities or facilities with 1 5 minimum DS=3 capacity for Part III connections for which state 1 6 funding is provided. The state shall lease all fiberoptic 1 7 cable facilities or facilities with minimum DS=3 or DS=1 1 8 capacity for the judicial branch, judicial district department 1 9 of correctional services, and state agency connections for 1 10 which state funding is provided.Such facilities shall be 1 11 leased from qualified providers. The state shall not own such 1 12 facilities, except for those facilities owned by the state as 1 13 of January 1, 1994.1 14 The lease provisions of thissubsectionparagraph "a" do 1 15 not apply to a school districtwhichthat elects to provide 1 16 one hundred percent of the financing for the district's 1 17 connection. 1 18 b. (1) Notwithstanding paragraph "a", the state may 1 19 provide fiberoptic cable facilities or other facilities with 1 20 minimum DS=3 or DS=1 capacity in a manner other than pursuant 1 21 to a lease if any of the following apply: 1 22 (a) An incumbent provider providing a leased connection 1 23 terminates ownership of an existing leased connection. 1 24 (b) An incumbent provider providing a leased connection 1 25 ceases to provide the necessary level of maintenance service 1 26 to an existing leased connection. 1 27 (c) The commission determines that it is in the long=term 1 28 best interest of the state to provide an existing or otherwise 1 29 authorized network connection in a manner other than pursuant 1 30 to a lease. In making this determination, the commission, at 1 31 a minimum, shall consider the cost to taxpayers and the 1 32 ability of the network to provide a level of service necessary 1 33 to meet the demands of network users. 1 34 (2) Prior to proceeding as permitted under subparagraph 1 35 (1), the commission shall make a determination that an 2 1 alternative cost=effective solution other than proceeding 2 2 under subparagraph (1) is not available from a private sector 2 3 qualified provider. For purposes of state ownership of a 2 4 network connection, the commission shall also make a 2 5 determination that utilization of a competitive bidding 2 6 process would not be effective and is not in the best interest 2 7 of the state. 2 8 (3) The commission shall by rule establish procedures and 2 9 criteria for proceeding as permitted under subparagraph (1). 2 10 The commission shall publish network connection changes made 2 11 pursuant to this paragraph "b" in the commission's annual 2 12 report related to the network. 2 13 EXPLANATION 2 14 This bill relates to the provision of services over 2 15 presently leased Iowa communications network connection 2 16 facilities. Currently, the state is required to lease all 2 17 connections that apply to part III connections, the judicial 2 18 branch, the judicial district department of correctional 2 19 services, and state agencies that are paid for with state 2 20 funding from qualified providers and is prohibited from owning 2 21 such connections except for facilities owned by the state as 2 22 of January 1, 1994. The bill authorizes the state to provide 2 23 fiberoptic cable facilities or other facilities supplying a 2 24 minimum of DS=3 or DS=1 capacity in a manner other than 2 25 through a lease under specified circumstances. Provision 2 26 other than through leasing will be permitted when an incumbent 2 27 connection qualified provider terminates ownership of a leased 2 28 connection, or ceases to provide the necessary level of 2 29 maintenance service to an existing leased connection. 2 30 Provision other than through leasing will also be permitted 2 31 when the state telecommunications and technology commission 2 32 determines that such provision is in the best interest of the 2 33 state. 2 34 Prior to proceeding with an alternative connection to an 2 35 existing or otherwise authorized network connection, the 3 1 commission shall determine that an alternate cost=effective 3 2 solution is not available from a private sector qualified 3 3 provider. The commission shall also determine that 3 4 utilization of a competitive bidding process will not be 3 5 effective and is not in the best interest of the state for 3 6 providing an existing or otherwise authorized network 3 7 connection. The commission is directed to establish by rule 3 8 procedures and criteria for the process and to publish notice 3 9 of the changes contained in the bill in the commission's 3 10 annual report related to the network. 3 11 The bill additionally changes references to DS=3 and DS=1 3 12 facility capacity to refer to such capacity as minimum DS=3 or 3 13 DS=1 in nature. 3 14 LSB 1296XD 83 3 15 rn/nh/8