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PAG LIN
1 1 Section 1. Section 8D.13, subsection 11, Code 1995, is
1 2 amended to read as follows:
1 3 11. a. The fees charged for use of the network to private
1 4 and public agencies which are not a hospital or physician
1 5 clinic, an agency of the federal government, or a United
1 6 States post office shall be based on the ongoing operational
1 7 costs of the network only.
1 8 b. The fees charged for use of the network to a hospital
1 9 or physician clinic, an agency of the federal government, or a
1 10 United States post office shall be based on the total costs of
1 11 providing the network, including construction, operational,
1 12 and maintenance costs, and the financing costs associated with
1 13 the construction of the network.
1 14 Sec. 2. APPROPRIATIONS.
1 15 1. There is appropriated from the general fund of the
1 16 state to the Iowa telecommunications network fund under the
1 17 control of the Iowa telecommunications and technology
1 18 commission established in section 8D.3 for the fiscal year
1 19 beginning July 1, 1995, and ending June 30, 1996, the
1 20 following amount, or so much thereof as may be necessary, to
1 21 be used for costs associated with Part III connections, which
1 22 are school districts, accredited nonpublic schools, and public
1 23 libraries pursuant to the requirements of this section:
1 24 .................................................. $ 9,750,000
1 25 The commission shall use the funds appropriated in this
1 26 section for the purpose of providing connections to the
1 27 network for the one hundred one Part III pilot project users
1 28 for which the lowest site-by-site bids were received in
1 29 response to the request for proposals for Part III of the Iowa
1 30 communications network issued August 19, 1994.
1 31 The commission shall request that each of the one hundred
1 32 one sites identified pursuant to this section submit a usage
1 33 plan which shall include the anticipated date that the user is
1 34 to be connected to the network, the anticipated number of
1 35 hours of usage during the calendar year following the
2 1 connection, the anticipated uses of the network and the type
2 2 of programming which will be utilized by the user, the
2 3 anticipated number of individuals who will participate in the
2 4 programs, and any other information which the commission deems
2 5 necessary.
2 6 Prior to the award of a contract to provide a connection to
2 7 any of the sites identified pursuant to this section, the
2 8 commission shall determine if the amount appropriated in this
2 9 section is sufficient to complete the connections for all of
2 10 such users. Upon a determination by the commission that the
2 11 amount appropriated is not sufficient to complete all such
2 12 connections, the commission shall establish a process for the
2 13 selection of which sites shall be connected. The commission
2 14 shall consider the amount of the bid related to the connection
2 15 and the usage plan submitted by the user. Any site for which
2 16 a vendor has submitted a proposal which includes a yearly
2 17 lease cost which is less than $3,000 shall be automatically
2 18 selected as a site for connection if a usage plan has been
2 19 submitted by such user.
2 20 The commission shall request that each of the Part III
2 21 users identified pursuant to this section which are connected
2 22 to the network agree to use the network for a minimum number
2 23 of hours for the calendar year following the completion of the
2 24 connection. The agreement shall provide that a user will
2 25 guarantee a minimum of 375 hours of usage during the year or
2 26 the number of hours of use which could be purchased for the
2 27 amount of the lease divided by an eight dollar per hour
2 28 network charge, whichever is less. The Part III user shall
2 29 pay for 75 percent of the user's hours of use in excess of
2 30 $3,000. The commission shall provide for the payment of the
2 31 remaining 25 percent of such cost. The commission shall file
2 32 a written report with the general assembly on or before
2 33 January 8, 1996, and on or before January 13, 1997, concerning
2 34 the results of the pilot project.
2 35 2. There is appropriated from the general fund of the
3 1 state to the department of education for the fiscal year
3 2 beginning July 1, 1995, and ending June 30, 1996, the
3 3 following amount, or so much thereof as may be necessary, to
3 4 be deposited in a separate educational training fund and to be
3 5 used for costs associated with teacher training related to the
3 6 use of the network by such teachers:
3 7 .................................................. $ 250,000
3 8 Sec. 3. The Iowa telecommunications and technology
3 9 commission established in section 8D.3 shall develop
3 10 projections related to revenue generated through the use of
3 11 the network based upon the type of user. The commission shall
3 12 review these projections and determine the potential effect of
3 13 expanded commercial use of the network on the tax-exempt
3 14 status of the bonds which were sold for the purpose of
3 15 financing Parts I and II of the network. The commission shall
3 16 complete a study regarding allowing expanded commercial use of
3 17 the network, and the conversion of the network to a quasi-
3 18 public or private enterprise. The study shall include an
3 19 analysis of the legal and practical issues involved with such
3 20 use and conversion. The commission shall provide a written
3 21 report to the general assembly on or before January 8, 1996,
3 22 detailing the revenue projections and the determination of any
3 23 effect on the tax-exempt status of such bonds, and including
3 24 all alternatives considered and the recommendation of the
3 25 commission.
3 26 Sec. 4. Notwithstanding contrary provisions of chapter 8D,
3 27 access shall not be provided to the network to any other
3 28 entity pursuant to a new or existing chapter 28E or other
3 29 agreement.
3 30 Sec. 5. The Iowa telecommunications and technology
3 31 commission established in section 8D.3 shall develop and issue
3 32 for response a request for proposals for the construction,
3 33 installation, repair, maintenance, and acquisition of
3 34 equipment and parts necessary for the connection of Part III
3 35 authorized users which are not connected to the network
4 1 pursuant to section 2 of this Act. The request for proposals
4 2 shall allow flexibility for proposals to be submitted on a
4 3 site-by-site basis or on a defined geographic area basis which
4 4 may include parts of one or more merged areas. The request
4 5 for proposals shall provide that the terms of a bid shall be
4 6 based upon a ten-year level payment lease and shall not
4 7 include front-loaded lease payments.
4 8 Sec. 6. Notwithstanding contrary provisions of chapter 8D,
4 9 the Iowa telecommunications and technology commission
4 10 established in section 8D.3 shall develop a request for
4 11 proposals for the sale of the Iowa communications network.
4 12 The commission shall review and determine the impact of
4 13 federal and state regulatory laws and current bond obligations
4 14 on such sale. The request for proposals shall allow
4 15 flexibility for proposals to be submitted such that a bid may
4 16 be submitted for all or a portion of the network. The
4 17 commission shall not enter into any agreement related to a
4 18 proposal submitted in response to the request for proposals
4 19 without the prior authorization by a constitutional majority
4 20 of each house of the general assembly and approval by the
4 21 governor as provided in section 8D.12.
4 22 EXPLANATION
4 23 This bill relates to the expansion and future of the Iowa
4 24 communications network.
4 25 Section 8D.13 is amended to provide that fees charged for
4 26 use of the network to private and public agencies which are
4 27 not a hospital or physician clinic, an agency of the federal
4 28 government, or a United States post office are to be based on
4 29 the ongoing operational costs of the network only. The fees
4 30 charged for use of the network to a hospital or physician
4 31 clinic, an agency of the federal government, or a United
4 32 States post office are to be based on the total costs of
4 33 providing the network, including construction, operational,
4 34 and maintenance costs, and the financing costs associated with
4 35 the construction of the network.
5 1 Section 2 appropriates $10,000,000 to the network fund to
5 2 be used for costs associated with 101 Part III connections
5 3 which are school districts, accredited nonpublic schools, and
5 4 public libraries, and which were the lowest site-by-site bids
5 5 received in response to the request for proposals for Part III
5 6 of the Iowa communications network issued August 19, 1994.
5 7 The commission is to request that each of the 101 sites
5 8 identified pursuant to this section submit a usage plan which
5 9 shall include the anticipated date that the user is to be
5 10 connected to the network, the anticipated number of hours of
5 11 usage during the calendar year following the connection, the
5 12 anticipated uses of the network and the type of programming
5 13 which will be utilized by the user, the anticipated number of
5 14 individuals who will participate in the programs, and any
5 15 other information which the commission deems necessary.
5 16 Section 3 directs the commission to develop projections
5 17 related to revenue generated through the use of the network
5 18 and based upon the type of user. Based upon these
5 19 projections, the commission is to determine the potential
5 20 effect on the tax-exempt status of the bonds which were sold
5 21 to finance Parts I and II of the network as a result of
5 22 increasing commercial use of the network.
5 23 Section 4 provides that access is not to be provided to the
5 24 network to any additional entities pursuant to a new or
5 25 existing chapter 28E or other agreement.
5 26 Section 5 directs the commission to develop and release a
5 27 request for proposals for the connection of sites which are
5 28 not connected to the network pursuant to section 2.
5 29 Section 6 directs the commission to develop a request for
5 30 proposals for the sale of the network. The commission is to
5 31 review and determine the impact of federal and state
5 32 regulatory laws and current bond obligations on such sale.
5 33 The commission is prohibited from entering into any agreement
5 34 related to a proposal submitted in response to the request for
5 35 proposals for sale of the network without the prior
6 1 authorization by a constitutional majority of each house of
6 2 the general assembly and approval by the governor as provided
6 3 in section 8D.12.
6 4 LSB 2450XS 76
6 5 mj/jw/5
Text: SF00355 Text: SF00357 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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