SF 2355 (LSB 5180SV (3) 87)

SENATE FILE 2355

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SF 2219)

(As Amended and Passed by the Senate 2018-03-07)

A BILL FOR

An Act providing for an audit, accounting, and appraisal of the Iowa communications network.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  AUDIT, ACCOUNTING, AND APPRAISAL OF IOWA COMMUNICATIONS NETWORK. 
   1.  The state auditor or an independent third party selected by the state auditor shall conduct a comprehensive audit and accounting of the Iowa communications network to include the following components:
   a.  A complete financial audit of the network for the period beginning July 1, 2015, and ending July 1, 2018, to identify the revenues and expenses of the network and verify that charges were properly made to all existing authorized users and booked accurately by such authorized users and the network.
   b.  A complete inventory audit of all components included in the network, including telecommunications-related and non-telecommunications-related property or equipment. Such inventory shall identify the age and condition of property or equipment purchased or leased by the commission for the operation of the network and verify physical connections to current authorized users. 
   c.  Information identifying and quantifying the amounts billed for services performed by the network to current authorized users.
   d.  Information identifying all current authorized users and business units of the network. 
   e.  Information identifying the duration, terms, and conditions of all third-party contracts and leases entered into by the network, including but not limited to any obligations of the state that may survive a sale, lease, or transfer of any network assets or services.
   2.  Following the completion of the comprehensive audit and accounting required pursuant to subsection 1, the Iowa telecommunications and technology commission shall select an independent appraisal firm to conduct an appraisal of the network and determine the current market value of the assets listed in the audit and accounting. The independent appraisal firm shall be selected through a competitive bidding process not associated with the network or any of its vendors. 
   3.  The results of the audit, accounting, and appraisal of the network conducted pursuant to this section shall be made available to the public on an internet site maintained by the commission. 
   4.  The audit, accounting, and appraisal of the network conducted pursuant to this section shall be completed no later than December 21, 2018.