Text: H01583 Text: H01585 Text: H01500 - H01599 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 700 as follows: 1 2 #1. Page 51, by inserting after line 11 the 1 3 following: 1 4 "DIVISION 1 5 Sec. 201. PURPOSE AND DEFINITIONS. 1 6 1. PURPOSE. The general assembly finds that the 1 7 Iowa communications network is a valuable state asset 1 8 that has served the people of the state well, but 1 9 which requires significant ongoing financial support 1 10 from the state in the form of annual appropriations. 1 11 The operation of a telecommunications network is a 1 12 function that can be and generally is conducted by 1 13 private enterprise. It is in the public interest to 1 14 sell the Iowa communications network to a qualified 1 15 private business enterprise that will commit to 1 16 provide the same secure low-cost high-quality service 1 17 to state and federal agencies and military 1 18 installations now provided by the network. Through 1 19 such a sale, the state would eliminate the need for 1 20 ongoing annual appropriations while preserving the key 1 21 benefits enjoyed by the state under the present state 1 22 ownership of the network. The state also expects to 1 23 obtain sufficient proceeds from such a sale to cover 1 24 existing obligations and to realize additional 1 25 proceeds above the level of such obligations. Given 1 26 the current depressed state of the telecommunications 1 27 industry, the state can reasonably be expected to 1 28 maximize sales proceeds by allowing a purchaser a 1 29 period of time in which to assemble financing for its 1 30 purchase. During the interim between enactment of 1 31 this division of this Act and completion of a sale, 1 32 the services of a private-enterprise manager with 1 33 experience operating telecommunications networks can 1 34 reasonably be expected to reduce the costs of 1 35 operating the Iowa communications network, thereby 1 36 lowering or possibly eliminating annual 1 37 appropriations. 1 38 2. DEFINITIONS. As used in this division of this 1 39 Act, unless the context otherwise requires: 1 40 a. "Board" means the state network privatization 1 41 board. 1 42 b. "Commission" means the Iowa telecommunications 1 43 and technology commission established in section 8D.3 1 44 to oversee the operations of the network. 1 45 c. "Management contract" means an agreement 1 46 between the board and the manager for services to 1 47 oversee and operate the network on behalf of the 1 48 state. 1 49 d. "Manager" means the private entity selected by 1 50 the board to oversee and operate the network on behalf 2 1 of the state. 2 2 e. "Network" means the Iowa or state 2 3 communications network as defined in section 8D.2. 2 4 f. "Out-of-pocket expenses" means moneys paid to 2 5 an unaffiliated third party for engineering, legal, 2 6 consulting, or other services or goods by a manager or 2 7 purchaser. 2 8 g. "Purchaser" means the entity that is selected 2 9 by the board to purchase the network from the state. 2 10 h. "Required third-party approval" means any 2 11 consent, conveyance, approval, or waiver that must be 2 12 granted by a private, governmental, or quasi- 2 13 governmental third party in order for the purchaser to 2 14 receive clear title to all network assets and the 2 15 right to use the network assets free of adverse 2 16 claims. Required third-party approvals include but 2 17 are not limited to all of the following: 2 18 (1) Approvals of assignments to the purchaser of 2 19 the state's rights under leases or contracts between 2 20 the state and the third party. 2 21 (2) Conveyance to the purchaser of property that 2 22 the third party currently leases to the state on a 2 23 term with less than fifteen years remaining. 2 24 (3) Release of restrictions in contracts that 2 25 require that the state operate the network. 2 26 i. "Sales contract" means the contract between the 2 27 state as seller, represented by the board, and the 2 28 purchaser, for sale of the network to the purchaser. 2 29 Sec. 202. STATE NETWORK PRIVATIZATION BOARD 2 30 CREATED DUTIES. 2 31 1. A state network privatization board is created. 2 32 The board shall consist of the following members: 2 33 a. A chairperson member appointed by the 2 34 legislative council, subject to confirmation by the 2 35 senate. 2 36 b. A member, who shall not be of the same 2 37 political party as the chairperson, appointed by the 2 38 governor subject to confirmation by the senate. 2 39 c. The adjutant general or the adjutant general's 2 40 designee. 2 41 2. The board shall do all of the following: 2 42 a. Issue a request for proposals from qualified 2 43 entities interested in serving as the manager of the 2 44 network. This request for proposals shall be issued 2 45 by July 1, 2004, and responses to the request for 2 46 proposals shall be due by August 1, 2004. 2 47 b. Select a manager and enter into a management 2 48 contract with the manager by October 1, 2004. The 2 49 management contract shall provide for the continuation 2 50 of all services currently being provided to state and 3 1 federal agencies and military installations pursuant 3 2 to chapter 8D, at the rates specified therein, for the 3 3 duration of the contract. The contract shall also 3 4 specify the manager's authority in relation to the 3 5 duties of the commission during the period between 3 6 execution of the management contract and closing of 3 7 the sale of the network. The commission shall 3 8 establish a dispute resolution process regarding rate 3 9 increases, quality of service issues, and other areas 3 10 of dispute involving network subscribers. The 3 11 commission shall also make recommendations regarding 3 12 imposition of an ongoing dispute resolution and 3 13 appeals process commencing with the closing of the 3 14 sale of the network. 3 15 c. Issue a request for proposals from qualified 3 16 entities for the purchase of the network. This 3 17 request for proposals shall be issued by January 1, 3 18 2005, and responses to the request for proposals shall 3 19 be due by May 1, 2005. 3 20 d. Utilizing the criteria set forth in sections 3 21 203 and 204 of this Act, select a purchaser and enter 3 22 into a sales contract with the purchaser by October 1, 3 23 2005. 3 24 e. Immediately upon execution of the management 3 25 contract and the sales contract by the majority of the 3 26 board, transmit the executed contract to the general 3 27 assembly and to the governor. The board shall have 3 28 full authority to enter into the management contract 3 29 and the sales contract on behalf of the state, 3 30 provided that the general assembly by legislation 3 31 enacted regarding the specific purchase and approved 3 32 by the governor, within thirty days after transmittal 3 33 to the general assembly and the governor in the case 3 34 of the management contract, and within sixty days 3 35 after transmittal to the general assembly and the 3 36 governor in the case of the sales contract, may 3 37 disapprove the board's action, in which case the 3 38 disapproved contract shall have no force and effect. 3 39 In the event of such disapproval, the state shall pay 3 40 the manager or the purchaser, as the case may be, 3 41 reasonable out-of-pocket expenses incurred in 3 42 preparing a proposal and performing prior to 3 43 disapproval, but such expenses shall not exceed two 3 44 hundred thousand dollars in the case of disapproval of 3 45 the management contract and five hundred thousand 3 46 dollars in the case of disapproval of the sales 3 47 contract. In the event that multiple management 3 48 contracts or sales contracts have been executed, the 3 49 two hundred thousand dollars and five hundred thousand 3 50 dollars shall be distributed pro rata among all 4 1 management contracts and sales contracts executed. 4 2 f. Cause the sales contract to require closing by 4 3 October 1, 2007, allowing time for the state to obtain 4 4 third-party approvals as required by section 206 of 4 5 this Act, including the filing of any necessary 4 6 eminent domain actions, and for the purchaser to 4 7 secure financing. 4 8 g. Execute all necessary documents relating to the 4 9 closing of the sale of the network. The board may 4 10 direct any other applicable official to assist in the 4 11 execution of necessary documents relating to the 4 12 closing. 4 13 h. Require by written directive that all state 4 14 officials provide information and records concerning 4 15 the network to the board, to the manager, or to a 4 16 person submitting a proposal to purchase the network, 4 17 whenever the board requires such provision of such 4 18 records and other information. 4 19 i. Take all other steps necessary and proper as 4 20 needed to carry out its responsibilities enumerated in 4 21 this subsection. The board may adopt necessary rules 4 22 pursuant to chapter 17A to administer this division of 4 23 this Act. 4 24 Sec. 203. MINIMUM QUALIFICATIONS OF PURCHASER. 4 25 The purchaser shall meet the following requirements: 4 26 1. The principal place of business of the 4 27 purchaser and any parent of the purchaser shall be 4 28 located in the state of Iowa. 4 29 2. For national security reasons, and because of 4 30 the extensive military use of the network, the 4 31 purchaser shall possess national security approval. 4 32 Sec. 204. CRITERIA FOR SELECTION OF PURCHASER. 4 33 After issuing a request for proposals for the purchase 4 34 of the network and considering the proposals received, 4 35 the board shall select the highest and best offer for 4 36 purchase of the network from those persons submitting 4 37 proposals which meet all of the following criteria: 4 38 1. Satisfy the minimum qualifications of this 4 39 division of this Act. 4 40 2. Submit a proposal in compliance with the 4 41 request for proposals. 4 42 3. Demonstrate a likelihood of being able to 4 43 obtain any financing necessary to close the 4 44 transaction. However, the board shall not require 4 45 that the purchaser have a commitment for financing to 4 46 award the contract, but shall allow the purchaser at 4 47 least one year to obtain any necessary financing. The 4 48 board may also in its discretion consider proposals 4 49 involving financing of the sale by the state. 4 50 4. Agree to continue all services currently being 5 1 provided to state and federal agencies and military 5 2 installations for the next ten years, with any annual 5 3 rate increase not to exceed five percent per year, 5 4 provided that the purchaser shall not be required to 5 5 supply at such restricted prices a quantity or quality 5 6 of service greater than that provided by the network 5 7 as of execution of the contract for sale of the 5 8 network. 5 9 Sec. 205. CLOSING OF SALE. Any debt of the state 5 10 related to the network or other liens against network 5 11 assets shall be discharged out of the state's proceeds 5 12 of closing, so that the purchaser receives marketable 5 13 title to the network. The purchaser shall receive 5 14 bills of sale, in the case of personal property, and 5 15 deeds, in the case of real property, transferring all 5 16 network assets to the purchaser. The state shall also 5 17 transfer its interest in right-of-way and leases and 5 18 easements for uses of rights-of-way. 5 19 Sec. 206. THIRD-PARTY APPROVALS. 5 20 1. The state shall exercise all reasonable efforts 5 21 to obtain each required third-party approval, 5 22 including where necessary by use of eminent domain 5 23 proceedings. To the extent feasible, the state may 5 24 pay the costs of obtaining required third-party 5 25 approvals out of the proceeds of sale rather than from 5 26 the general fund of the state. In the event the state 5 27 fails to obtain a required third-party approval, the 5 28 purchaser may terminate the sales contract without 5 29 penalty and shall be reimbursed by the state for 5 30 reasonable out-of-pocket expenses incurred in 5 31 preparing its proposal and fulfilling its obligations 5 32 under the sales contract, not to exceed two million 5 33 dollars. 5 34 2. The board and the purchaser shall develop a 5 35 list of required third-party approvals and persons who 5 36 may have claims that would constitute required third- 5 37 party approvals if valid. The board shall mail to 5 38 each person on the list at their last known address a 5 39 notice that provides a description of the sale and 5 40 invites the recipient to submit a claim on a form 5 41 developed by the board by a deadline set by the board. 5 42 The claim or interest of any person who fails to 5 43 timely file a claim shall be deemed discharged and 5 44 forfeited, and such person shall be forever barred and 5 45 estopped from taking any action against the state or 5 46 purchaser that would in any way interfere with the 5 47 purchaser's use of the network. In addition, the 5 48 board shall publish the notice in newspapers of 5 49 general circulation in the state of Iowa, and failure 5 50 to file a timely claim shall bar all persons whose 6 1 rights could constitutionally be affected by such 6 2 notice, just as if such person had been mailed notice. 6 3 3. Any eminent domain or other proceeding to 6 4 obtain a required third-party approval shall be 6 5 promptly filed by the attorney general at the request 6 6 of the board and shall be added to the calendar of any 6 7 trial or appellate court of this state so that the 6 8 deadline in section 202 of this Act for closing the 6 9 sale can be met. 6 10 Sec. 207. REMOVAL OF RESTRICTIONS REPEAL OF 6 11 CHAPTER 8D. Chapter 8D is repealed, effective as of 6 12 the date of the closing of the sale of the network 6 13 under this division of this Act, as certified by the 6 14 chairperson of the board to the governor. 6 15 Sec. 208. ASSISTANCE OF OTHER STATE AGENCIES. 6 16 1. The attorney general shall provide legal advice 6 17 to the board. 6 18 2. All other state agencies shall provide whatever 6 19 assistance may reasonably be required by the board in 6 20 carrying out its duties under this division of this 6 21 Act." 6 22 #2. By renumbering as necessary. 6 23 6 24 6 25 6 26 DIX of Butler 6 27 6 28 6 29 6 30 JENKINS of Black Hawk 6 31 HF 700.707 80 6 32 rn/cl
Text: H01583 Text: H01585 Text: H01500 - H01599 Text: H Index Bills and Amendments: General Index Bill History: General Index
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