House File 2405 - Introduced HOUSE FILE 2405 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 628) A BILL FOR An Act relating to the confidentiality of information disclosed 1 pursuant to applications for broadband technology project 2 grants, and projects undertaken pursuant thereto, and 3 including effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5431HV (2) 83 rn/sc

H.F. 2405 Section 1. 2009 Iowa Acts, chapter 173, section 13, 1 subsection 5, is amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. (1) In establishing the competitive 3 process as provided in paragraph “c” , subparagraph (2), the 4 governance board shall give due regard to the confidentiality 5 of certain information disclosed during the application process 6 and completion of the project for which funding is disbursed. 7 (2) All information contained in an application for a grant 8 submitted to the governance board shall remain confidential 9 while the governance board is engaged in any of the following: 10 (a) Reviewing the application. 11 (b) Processing a request for confidentiality. 12 (c) Negotiating with the applicant. 13 (d) Preparing the application for consideration by the 14 governance board. 15 (3) The governance board may release certain information 16 in an application to a third party for technical review. If 17 the governance board releases such information to a third 18 party, the governance board shall ensure that the third party 19 protects the information from public disclosure. After the 20 governance board has considered a request for confidentiality, 21 any information not deemed confidential by the governance 22 board shall be made publicly available. Any information 23 deemed confidential by the governance board shall also be kept 24 confidential during and following the completion of the project 25 for which funding was disbursed by the governance board. 26 (4) The governance board shall consider the written request 27 of an applicant or grant recipient to keep confidential 28 certain details of an application, a project, or the materials 29 submitted in support of an application or project. If the 30 request includes a sufficient explanation as to why public 31 disclosure of such details would give an unfair advantage to 32 competitors, the governance board shall keep such details 33 confidential. If the governance board elects to keep certain 34 details confidential, the governance board shall release only 35 -1- LSB 5431HV (2) 83 rn/sc 1/ 4

H.F. 2405 the nonconfidential details in response to a request for 1 records pursuant to chapter 22. If confidential details are 2 withheld from a request for records pursuant to chapter 22, 3 the governance board shall release an explanation of why the 4 information was deemed confidential and a summary of the nature 5 of the information withheld and the reasons for withholding 6 it. In considering requests for confidential treatment, the 7 governance board shall narrowly construe the provisions of this 8 subsection in order to appropriately balance an applicant’s 9 need for confidentiality against the public’s right to 10 information about the governance board’s activities. 11 (5) If a request for confidentiality is denied by the 12 governance board, an applicant may withdraw an application and 13 any supporting materials, and the governance board shall not 14 retain any copies of the application or supporting materials. 15 Upon notice that an application has been withdrawn, the 16 governance board shall not release a copy of the application 17 or of any supporting materials in response to a request for 18 records pursuant to chapter 22. 19 (6) Rules shall be adopted by the telecommunications and 20 technology commission, in consultation with the utilities board 21 and the economic development board, establishing a process for 22 considering requests to keep information confidential pursuant 23 to this subsection. The commission may adopt emergency 24 rules pursuant to chapter 17A to implement this subsection. 25 The rules shall include criteria for guiding the governance 26 board’s decisions about the confidential treatment of applicant 27 information. The criteria may include but are not limited to 28 the following: 29 (a) The nature and extent of competition in the applicant’s 30 industry sector or service territory. 31 (b) The likelihood of adverse financial impact to the 32 applicant if the information were to be released. 33 (c) Any other factor the governance board reasonably 34 considers relevant. 35 -2- LSB 5431HV (2) 83 rn/sc 2/ 4

H.F. 2405 Sec. 2. APPLICABILITY. This Act shall apply to requests 1 for confidentiality submitted to the board on or after the 2 effective date of this Act. 3 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 4 immediate importance, takes effect upon enactment. 5 EXPLANATION 6 This bill relates to the confidentiality of information 7 included in applications for broadband technology project 8 grants, and projects undertaken pursuant thereto. The grants 9 were established and funded in legislation enacted during the 10 2009 Legislative Session of the general assembly. 11 The bill provides that all information contained in a 12 broadband technology grant application and submitted to the 13 governance board established to administer such grants shall 14 remain confidential while the board reviews the application, 15 processes a request for confidentiality, negotiates with the 16 applicant, and prepares the application for consideration. The 17 bill authorizes the board to release certain information in the 18 application to a third party for technical review, provided the 19 board ensures that the third party protects the information 20 from public disclosure. After the board has considered 21 a request for confidentiality, the bill provides that any 22 information not deemed confidential shall be made publicly 23 available, and that any information deemed confidential shall 24 remain so during and following the completion of the project. 25 The bill states that the board shall consider the written 26 request of an applicant or grant recipient to keep confidential 27 certain details of an application, a project, or the materials 28 submitted in support thereof. The bill provides that if the 29 request includes a sufficient explanation as to why public 30 disclosure of such details would give an unfair advantage 31 to competitors, confidentiality will be conferred, and 32 only nonconfidential details will be released in response 33 to a request for records pursuant to Code chapter 22. If 34 confidential details are withheld from a request for records, 35 -3- LSB 5431HV (2) 83 rn/sc 3/ 4

H.F. 2405 the bill provides that the board shall release a summary of the 1 nature of the information withheld and a statement explaining 2 the reasons the information was deemed confidential. In 3 considering requests for confidentiality, the bill directs 4 the board to narrowly construe the bill’s provisions to 5 appropriately balance an applicant’s need for confidentiality 6 against the public’s right to information. 7 The bill allows an applicant to withdraw an application and 8 supporting materials in the event a request for confidentiality 9 is denied, and prohibits the board from retaining any copies of 10 the application or supporting materials. Upon notice that an 11 application has been withdrawn, the bill prohibits the board 12 from releasing a copy of the application or of any supporting 13 materials in response to a request for records pursuant to Code 14 chapter 22. 15 The board directs the commission, in consultation with 16 the Iowa utilities board and the economic development 17 board, to adopt administrative rules regarding requests for 18 confidentiality, which shall include criteria for guiding the 19 governance board’s decisions about the confidentiality of 20 applicant information. 21 The bill is applicable to requests for confidentiality in 22 relation to applications that have been submitted to the board 23 and are in process on the bill’s effective date. The bill 24 takes effect upon enactment. 25 -4- LSB 5431HV (2) 83 rn/sc 4/ 4