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.  The Except 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 this subsection paragraph "a" do
  1 15 not apply to a school district which that 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