Text: S03359 Text: S03361 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 458 as follows: 1 2 #1. Page 48, by inserting after line 28 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 annual appropriations. 1 37 2. DEFINITIONS. As used in this division of this 1 38 Act, unless the context otherwise requires: 1 39 a. "Board" means the state network privatization 1 40 board. 1 41 b. "Commission" means the Iowa telecommunications 1 42 and technology commission established in section 8D.3 1 43 to oversee the operations of the network. 1 44 c. "Management contract" means an agreement 1 45 between the board and the manager for services to 1 46 oversee and operate the network on behalf of the 1 47 state. 1 48 d. "Manager" means the private entity selected by 1 49 the board to oversee and operate the network on behalf 1 50 of the state. 2 1 e. "Network" means the Iowa or state 2 2 communications network as defined in section 8D.2. 2 3 f. "Out-of-pocket expenses" means moneys paid to 2 4 an unaffiliated third party for engineering, legal, 2 5 consulting, or other services or goods by a manager or 2 6 purchaser. 2 7 g. "Purchaser" means the entity that is selected 2 8 by the board to purchase the network from the state. 2 9 h. "Required third-party approval" means any 2 10 consent, conveyance, approval, or waiver that must be 2 11 granted by a private, governmental, or quasi- 2 12 governmental third party in order for the purchaser to 2 13 receive clear title to all network assets and the 2 14 right to use the network assets free of adverse 2 15 claims. Required third-party approvals include but 2 16 are not limited to all of the following: 2 17 (1) Approvals of assignments to the purchaser of 2 18 the state's rights under leases or contracts between 2 19 the state and the third party. 2 20 (2) Conveyance to the purchaser of property that 2 21 the third party currently leases to the state on a 2 22 term with less than fifteen years remaining. 2 23 (3) Release of restrictions in contracts that 2 24 require that the state operate the network. 2 25 i. "Sales contract" means the contract between the 2 26 state as seller, represented by the board, and the 2 27 purchaser, for sale of the network to the purchaser. 2 28 Sec. 202. STATE NETWORK PRIVATIZATION BOARD 2 29 CREATED DUTIES. 2 30 1. A state network privatization board is created. 2 31 The board shall consist of the following members: 2 32 a. A chairperson member appointed by the 2 33 legislative council, subject to confirmation by the 2 34 senate. 2 35 b. A member, who shall not be of the same 2 36 political party as the chairperson, appointed by the 2 37 governor subject to confirmation by the senate. 2 38 c. The adjutant general or the adjutant general's 2 39 designee. 2 40 2. The board shall do all of the following: 2 41 a. Issue a request for proposals from qualified 2 42 entities interested in serving as the manager of the 2 43 network. This request for proposals shall be issued 2 44 by July 1, 2004, and responses to the request for 2 45 proposals shall be due by August 1, 2004. 2 46 b. Select a manager and enter into a management 2 47 contract with the manager by October 1, 2004. The 2 48 management contract shall provide for the continuation 2 49 of all services currently being provided to state and 2 50 federal agencies and military installations pursuant 3 1 to chapter 8D, at the rates specified therein, for the 3 2 duration of the contract. The contract shall also 3 3 specify the manager's authority in relation to the 3 4 duties of the commission during the period between 3 5 execution of the management contract and closing of 3 6 the sale of the network. The commission shall 3 7 establish a dispute resolution process regarding rate 3 8 increases, quality of service issues, and other areas 3 9 of dispute involving network subscribers. The 3 10 commission shall also make recommendations regarding 3 11 imposition of an ongoing dispute resolution and 3 12 appeals process commencing with the closing of the 3 13 sale of the network. 3 14 c. Issue a request for proposals from qualified 3 15 entities for the purchase of the network. This 3 16 request for proposals shall be issued by January 1, 3 17 2005, and responses to the request for proposals shall 3 18 be due by May 1, 2005. 3 19 d. Utilizing the criteria set forth in sections 3 20 203 and 204 of this Act, select a purchaser and enter 3 21 into a sales contract with the purchaser by October 1, 3 22 2005. 3 23 e. Immediately upon execution of the management 3 24 contract and the sales contract by the majority of the 3 25 board, transmit the executed contract to the general 3 26 assembly and to the governor. The board shall have 3 27 full authority to enter into the management contract 3 28 and the sales contract on behalf of the state, 3 29 provided that the general assembly by legislation 3 30 enacted regarding the specific purchase and approved 3 31 by the governor, within thirty days after transmittal 3 32 to the general assembly and the governor in the case 3 33 of the management contract, and within sixty days 3 34 after transmittal to the general assembly and the 3 35 governor in the case of the sales contract, may 3 36 disapprove the board's action, in which case the 3 37 disapproved contract shall have no force and effect. 3 38 In the event of such disapproval, the state shall pay 3 39 the manager or the purchaser, as the case may be, 3 40 reasonable out-of-pocket expenses incurred in 3 41 preparing a proposal and performing prior to 3 42 disapproval, but such expenses shall not exceed two 3 43 hundred thousand dollars in the case of disapproval of 3 44 the management contract and five hundred thousand 3 45 dollars in the case of disapproval of the sales 3 46 contract. 3 47 f. Cause the sales contract to require closing by 3 48 October 1, 2007, allowing time for the state to obtain 3 49 third-party approvals as required by section 206 of 3 50 this Act, including the filing of any necessary 4 1 eminent domain actions, and for the purchaser to 4 2 secure financing. 4 3 g. Execute all necessary documents relating to the 4 4 closing of the sale of the network. The board may 4 5 direct any other applicable official to assist in the 4 6 execution of necessary documents relating to the 4 7 closing. 4 8 h. Require by written directive that all state 4 9 officials provide information and records concerning 4 10 the network to the board, to the manager, or to a 4 11 person submitting a proposal to purchase the network, 4 12 whenever the board requires such provision of such 4 13 records and other information. 4 14 i. Take all other steps necessary and proper as 4 15 needed to carry out its responsibilities enumerated in 4 16 this subsection. The board may adopt necessary rules 4 17 pursuant to chapter 17A to administer this division of 4 18 this Act. 4 19 Sec. 203. MINIMUM QUALIFICATIONS OF PURCHASER. 4 20 The purchaser shall meet the following requirements: 4 21 1. The principal place of business of the 4 22 purchaser and any parent of the purchaser shall be 4 23 located in the state of Iowa. 4 24 2. For national security reasons, and because of 4 25 the extensive military use of the network, the 4 26 purchaser shall possess national security approval. 4 27 Sec. 204. CRITERIA FOR SELECTION OF PURCHASER. 4 28 After issuing a request for proposals for the purchase 4 29 of the network and considering the proposals received, 4 30 the board shall select the highest and best offer for 4 31 purchase of the network from those persons submitting 4 32 proposals which meet all of the following criteria: 4 33 1. Satisfy the minimum qualifications of this 4 34 division of this Act. 4 35 2. Submit a proposal in compliance with the 4 36 request for proposals. 4 37 3. Demonstrate a likelihood of being able to 4 38 obtain any financing necessary to close the 4 39 transaction. However, the board shall not require 4 40 that the purchaser have a commitment for financing to 4 41 award the contract, but shall allow the purchaser at 4 42 least one year to obtain any necessary financing. The 4 43 board may also in its discretion consider proposals 4 44 involving financing of the sale by the state. 4 45 4. Agree to continue all services currently being 4 46 provided to state and federal agencies and military 4 47 installations for the next ten years, with any annual 4 48 rate increase not to exceed five percent per year, 4 49 provided that the purchaser shall not be required to 4 50 supply at such restricted prices a quantity or quality 5 1 of service greater than that provided by the network 5 2 as of execution of the contract for sale of the 5 3 network. 5 4 Sec. 205. CLOSING OF SALE. Any debt of the state 5 5 related to the network or other liens against network 5 6 assets shall be discharged out of the state's proceeds 5 7 of closing, so that the purchaser receives marketable 5 8 title to the network. The purchaser shall receive 5 9 bills of sale, in the case of personal property, and 5 10 deeds, in the case of real property, transferring all 5 11 network assets to the purchaser. The state shall also 5 12 transfer its interest in right-of-way and leases and 5 13 easements for uses of rights-of-way. 5 14 Sec. 206. THIRD-PARTY APPROVALS. 5 15 1. The state shall exercise all reasonable efforts 5 16 to obtain each required third-party approval, 5 17 including where necessary by use of eminent domain 5 18 proceedings. To the extent feasible, the state may 5 19 pay the costs of obtaining required third-party 5 20 approvals out of the proceeds of sale rather than from 5 21 the general fund of the state. In the event the state 5 22 fails to obtain a required third-party approval, the 5 23 purchaser may terminate the sales contract without 5 24 penalty and shall be reimbursed by the state for 5 25 reasonable out-of-pocket expenses incurred in 5 26 preparing its proposal and fulfilling its obligations 5 27 under the sales contract, not to exceed two million 5 28 dollars. 5 29 2. The board and the purchaser shall develop a 5 30 list of required third-party approvals and persons who 5 31 may have claims that would constitute required third- 5 32 party approvals if valid. The board shall mail to 5 33 each person on the list at their last known address a 5 34 notice that provides a description of the sale and 5 35 invites the recipient to submit a claim on a form 5 36 developed by the board by a deadline set by the board. 5 37 The claim or interest of any person who fails to 5 38 timely file a claim shall be deemed discharged and 5 39 forfeited, and such person shall be forever barred and 5 40 estopped from taking any action against the state or 5 41 purchaser that would in any way interfere with the 5 42 purchaser's use of the network. In addition, the 5 43 board shall publish the notice in newspapers of 5 44 general circulation in the state of Iowa, and failure 5 45 to file a timely claim shall bar all persons whose 5 46 rights could constitutionally be affected by such 5 47 notice, just as if such person had been mailed notice. 5 48 3. Any eminent domain or other proceeding to 5 49 obtain a required third-party approval shall be 5 50 promptly filed by the attorney general at the request 6 1 of the board and shall be added to the calendar of any 6 2 trial or appellate court of this state so that the 6 3 deadline in section 202 of this Act for closing the 6 4 sale can be met. 6 5 Sec. . REMOVAL OF RESTRICTIONS REPEAL OF 6 6 CHAPTER 8D. Chapter 8D is repealed, effective as of 6 7 the date of the closing of the sale of the network 6 8 under this division of this Act, as certified by the 6 9 chairperson of the board to the governor. 6 10 Sec. . ASSISTANCE OF OTHER STATE AGENCIES. 6 11 1. The attorney general shall provide legal advice 6 12 to the board. 6 13 2. All other state agencies shall provide whatever 6 14 assistance may reasonably be required by the board in 6 15 carrying out its duties under this division of this 6 16 Act." 6 17 #2. By renumbering as necessary. 6 18 6 19 6 20 6 21 JEFF LAMBERTI 6 22 SF 458.310 80 6 23 mg/cf
Text: S03359 Text: S03361 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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