Senate File 396 - Introduced
SENATE FILE
BY COMMITTEE ON GOVERNMENT
OVERSIGHT
(SUCCESSOR TO SF 133)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act authorizing the sale of Iowa communications network
2 capacity under specified circumstances, affecting the
3 operation of the network, and making appropriations.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1929SV 81
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PAG LIN
1 1 Section 1. Section 8D.2, subsection 5, paragraph a, Code
1 2 2005, is amended to read as follows:
1 3 a. "Public agency" means a state agency, a city, a county,
1 4 an institution under the control of the board of regents, the
1 5 judicial branch as provided in section 8D.13, subsection 17, a
1 6 school corporation, a city library, a library service area as
1 7 provided in chapter 256, a county library as provided in
1 8 chapter 336, or a judicial district department of correctional
1 9 services established in section 905.2, to the extent provided
1 10 in section 8D.13, subsection 15, an agency of the federal
1 11 government, or a United States post office which receives a
1 12 federal grant for pilot and demonstration projects.
1 13 Sec. 2. Section 8D.3, subsection 3, paragraph d, Code
1 14 2005, is amended to read as follows:
1 15 d. Review and approve for adoption, rules as proposed and
1 16 submitted by an authorized user group necessary for the
1 17 authorized user group's user's access and use of the network.
1 18 The commission may refuse to approve and adopt a proposed
1 19 rule, and upon such refusal, shall return the proposed rule to
1 20 the respective authorized user group proposing the rule with a
1 21 statement indicating the commission's reason for refusing to
1 22 approve and adopt the rule.
1 23 Sec. 3. Section 8D.3, subsection 3, paragraph f, Code
1 24 2005, is amended by striking the paragraph.
1 25 Sec. 4. Section 8D.3, subsection 3, paragraph i, Code
1 26 2005, is amended to read as follows:
1 27 i. Evaluate existing and projected rates for use of the
1 28 system and ensure that rates are sufficient to pay for the
1 29 operation of the system excluding, which shall exclude the
1 30 cost of construction and lease costs for Parts I, II, and III.
1 31 The commission shall establish all hourly rates to be charged
1 32 to all authorized users for the use of the network. A fee
1 33 established by the commission to be charged to a hospital
1 34 licensed pursuant to chapter 135B, a physician clinic, or the
1 35 federal government shall be at an appropriate rate so that, at
2 1 a minimum, there is no state subsidy related to the costs of
2 2 the connection or use of the network related to such user.
2 3 Sec. 5. Section 8D.3, Code 2005, is amended by adding the
2 4 following new subsection:
2 5 NEW SUBSECTION. 4. SALE OF SERVICES. Notwithstanding
2 6 chapter 23A, the commission may sell advanced
2 7 telecommunications services to private and public
2 8 telecommunications providers.
2 9 Sec. 6. Section 8D.6, subsection 1, Code 2005, is amended
2 10 by striking the subsection.
2 11 Sec. 7. Section 8D.6, subsection 2, Code 2005, is amended
2 12 to read as follows:
2 13 2. The commission may establish other and abolish advisory
2 14 committees as necessary representing authorized users of the
2 15 network and providing other expertise needed to assist the
2 16 commission in accomplishing its duties.
2 17 Sec. 8. Section 8D.11, subsection 2, Code 2005, is amended
2 18 to read as follows:
2 19 2. The commission also shall not provide or resell
2 20 communications services to entities other than public and
2 21 private agencies except as authorized in this chapter. The
2 22 public or private agency shall not provide communication
2 23 services of the network to another entity unless otherwise
2 24 authorized pursuant to this chapter. The commission may
2 25 arrange for joint use of available services and facilities,
2 26 and may enter into leases and agreements with private and
2 27 public agencies with respect to the Iowa communications
2 28 network, and public agencies are authorized to enter into
2 29 leases and agreements with respect to the network for their
2 30 use and operation. Rentals and other amounts due under the
2 31 agreements or leases entered into pursuant to this section by
2 32 a state agency are payable from funds annually appropriated by
2 33 the general assembly or from other funds legally available.
2 34 Other public agencies may pay the rental costs and other
2 35 amounts due under an agreement or lease from their annual
3 1 budgeted funds or other funds legally available or to become
3 2 available.
3 3 Sec. 9. Section 8D.11, subsection 4, Code 2005, is amended
3 4 by striking the subsection.
3 5 Sec. 10. Section 8D.13, subsection 5, unnumbered paragraph
3 6 1, Code 2005, is amended to read as follows:
3 7 The state shall lease all fiberoptic cable facilities or
3 8 facilities with DS=3 capacity for Part III connections for
3 9 which state funding is provided. The state shall lease all
3 10 fiberoptic cable facilities or facilities with DS=3 or DS=1
3 11 capacity for the judicial branch, judicial district department
3 12 of correctional services, and state agency connections for
3 13 which state funding is provided. Such facilities shall be
3 14 leased from qualified providers. The state shall not own such
3 15 facilities, except for those facilities owned by the state as
3 16 of January 1, 1994. Notwithstanding any other provision of
3 17 this section to the contrary, the state may acquire a Part III
3 18 connection following the termination of a lease with a vendor
3 19 if the vendor offers to sell or transfer the Part III
3 20 connection to the state and the commission determines it to be
3 21 in the best interest of the network to acquire the connection.
3 22 Sec. 11. Section 8D.13, subsection 11, Code 2005, is
3 23 amended to read as follows:
3 24 11. The fees charged for use of the network and state
3 25 communications shall be based on the ongoing operational costs
3 26 of the network and of providing state communications only set
3 27 by the commission. For the services rendered to state
3 28 agencies by the commission, the commission shall prepare a
3 29 statement of services rendered and the agencies shall pay in a
3 30 manner consistent with procedures established by the
3 31 department of administrative services.
3 32 Sec. 12. Section 8D.13, Code 2005, is amended by adding
3 33 the following new subsection:
3 34 NEW SUBSECTION. 20. Access shall be offered to a city or
3 35 county. A city or county shall be responsible for all costs
4 1 associated with becoming a part of the network. For purposes
4 2 of this section, "city" means a municipal corporation not
4 3 including a county, township, school district, or any special
4 4 purpose district or authority. When used in relation to land
4 5 area, "city" includes only the land area within the city
4 6 limits.
4 7 Sec. 13. Section 8D.14, Code 2005, is amended to read as
4 8 follows:
4 9 8D.14 IOWA COMMUNICATIONS NETWORK FUND.
4 10 There is created in the office of the treasurer of state a
4 11 fund to be known as the Iowa communications network fund under
4 12 the control of the Iowa telecommunications and technology
4 13 commission. There shall be deposited into the Iowa
4 14 communications network fund proceeds from bonds issued for
4 15 purposes of projects authorized pursuant to section 8D.13,
4 16 funds received from leases pursuant to section 8D.11, and
4 17 other moneys by law credited to or designated by a person for
4 18 deposit into the fund. Interest received by the state as a
4 19 result of investing the moneys in the Iowa communications
4 20 network fund shall be credited to the Iowa communications
4 21 network fund. Amounts deposited in the Iowa communications
4 22 network fund are appropriated to the commission.
4 23 Sec. 14. NEW SECTION. 8D.15 IOWA COMMUNICATIONS NETWORK
4 24 EQUIPMENT UPGRADE AND REPLACEMENT FUND.
4 25 There is created in the office of the treasurer of state a
4 26 fund to be known as the Iowa communications network equipment
4 27 upgrade and replacement fund under the control of the Iowa
4 28 telecommunications and technology commission. The Iowa
4 29 communications network equipment upgrade and replacement fund
4 30 is composed of fees charged to authorized users for equipment
4 31 depreciation, other moneys appropriated to or deposited into
4 32 the fund, and interest received by the state as a result of
4 33 investing the moneys in the equipment upgrade and replacement
4 34 fund. Moneys in the equipment upgrade and replacement fund
4 35 shall only be used to replace failed or obsolete network
5 1 equipment owned by the state and endpoint equipment, and are
5 2 appropriated to the commission. The commission may solicit or
5 3 accept gifts, including donations and bequests, to be
5 4 deposited into the equipment upgrade and replacement fund.
5 5 Sec. 15. IOWA COMMUNICATIONS NETWORK EQUIPMENT UPGRADE AND
5 6 REPLACEMENT FUND == APPROPRIATION. There is appropriated from
5 7 the tax=exempt bond proceeds restricted capital funds account
5 8 of the tobacco settlement trust fund to the office of the
5 9 treasurer of state for the fiscal year beginning July 1, 2005,
5 10 and ending June 30, 2006, the following amount, or so much
5 11 thereof as is necessary, to be used for the purpose
5 12 designated:
5 13 .................................................. $ 3,000,000
5 14 The amount appropriated pursuant to this section shall be
5 15 utilized for equipment maintenance, repair, and replacement
5 16 for the Iowa communications network, notwithstanding section
5 17 12E.12, subsection 1, paragraph "b", subparagraph (1), and
5 18 shall be deposited into the Iowa communications network
5 19 equipment upgrade and replacement fund established in Code
5 20 section 8D.15.
5 21 Sec. 16. Section 8D.7, Code 2005, is repealed.
5 22 EXPLANATION
5 23 This bill authorizes the sale of Iowa communications
5 24 network (ICN) capacity under specified circumstances, and
5 25 provides for other changes relating to the operation of the
5 26 network.
5 27 The bill adds a city or county to the list of entities
5 28 which shall be considered a public agency for purposes of
5 29 access to the ICN, and provides that a city or county shall be
5 30 responsible for all costs associated with becoming a part of
5 31 the network. The bill provides that a "city" shall mean a
5 32 municipal corporation not including a county, township, school
5 33 district, or any special purpose district or authority, and
5 34 that when used in relation to land area, a city includes only
5 35 the land area within the city limits.
6 1 The bill provides for a terminology change regarding
6 2 references to "authorized user groups" in Code section 8D.3,
6 3 subsection 3, deleting the word "group" from such references.
6 4 The bill provides for deletion of the responsibility of
6 5 ensuring that rates for use of the system are sufficient to
6 6 pay for the operation of the system, when the Iowa
6 7 telecommunications and technology commission evaluates rates.
6 8 The bill provides that notwithstanding the provisions of
6 9 Code chapter 23A, relating to noncompetition by government,
6 10 the commission may sell advanced telecommunications services
6 11 to private and public telecommunications providers. The bill
6 12 contains conforming changes consistent with this new capacity.
6 13 The bill deletes a provision establishing an advisory group
6 14 by the commission to examine the use of the network for
6 15 telemedicine applications, authorizes the commission to
6 16 abolish advisory committees as necessary, and provides that
6 17 advisory groups may be comprised of individuals with expertise
6 18 needed by the commission to accomplish its duties. The bill
6 19 also abolishes the telecommunications advisory committee
6 20 established in Code section 8D.7 to advise the commission on
6 21 telecommunications matters and deletes a requirement in Code
6 22 section 8D.3, subsection 3, requiring the annual submission by
6 23 the commission of a five=year financial plan.
6 24 The bill provides that the state may acquire a Part III
6 25 connection following the termination of a lease with a vendor
6 26 if the vendor offers to sell or transfer the Part III
6 27 connection to the state and the commission determines it to be
6 28 in the best interest of the network to acquire the connection.
6 29 The bill also provides that fees charged for use of the
6 30 network shall be established at a rate set by the commission,
6 31 deleting a provision that the fees be based on the ongoing
6 32 operational costs of the network and of providing state
6 33 communications.
6 34 The bill provides, with reference to the existing Iowa
6 35 communications network fund, that interest received by the
7 1 state as a result of investing the moneys in the fund shall be
7 2 credited to the fund, and that amounts deposited in the fund
7 3 are appropriated to the commission. The bill also creates a
7 4 new Iowa communications network equipment upgrade and
7 5 replacement fund. The bill places the new fund under the
7 6 control of the commission, with the fund to be composed of
7 7 fees charged to authorized users for equipment depreciation,
7 8 other moneys appropriated to or deposited into the fund, and
7 9 interest received by the state as a result of investing the
7 10 moneys in the fund. The bill provides that moneys in the fund
7 11 shall only be used to replace failed or obsolete network
7 12 equipment owned by the state and endpoint equipment, and that
7 13 the moneys are appropriated to the commission. The bill
7 14 authorizes the commission to solicit or accept gifts,
7 15 including donations and bequests, to be deposited into the
7 16 fund. The bill appropriates for deposit into the fund $3
7 17 million from the tax=exempt bond proceeds restricted capital
7 18 funds account of the tobacco settlement trust fund to the
7 19 office of the treasurer of state for the fiscal year beginning
7 20 July 1, 2005, and ending June 30, 2006. The bill restricts
7 21 the use of the appropriation for equipment maintenance and
7 22 repair.
7 23 LSB 1929SV 81
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