House File 479 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act expanding access to the Iowa communications network by 2 adding classifications of eligible users of the network. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2574YH 83 5 rn/nh/5 PAG LIN 1 1 Section 1. Section 8D.2, subsection 4, Code 2009, is 1 2 amended to read as follows: 1 3 4. "Private agency" means an accredited nonpublic school, 1 4 a nonprofit institution of higher education eligible for 1 5 tuition grants,ora hospital licensed pursuant to chapter 1 6 135B or a physician clinic to the extent provided in section 1 7 8D.13, subsection 16, or a not=for=profit organization exempt 1 8 from federal income taxation under section 501(c)(3) of the 1 9 Internal Revenue Code and approved to access the network 1 10 pursuant to section 8D.9, subsection 5. 1 11 Sec. 2. Section 8D.2, Code 2009, is amended by adding the 1 12 following new subsection: 1 13 NEW SUBSECTION. 4A. "Private individual" means a private 1 14 citizen or resident of this state who has been approved to 1 15 access the network pursuant to section 8D.9, subsection 6. 1 16 Sec. 3. Section 8D.3, subsection 3, paragraph i, Code 1 17 2009, is amended to read as follows: 1 18 i. Evaluate existing and projected rates for use of the 1 19 system and ensure that rates are sufficient to pay for the 1 20 operation of the system excluding the cost of construction and 1 21 lease costs for Parts I, II, and III. The commission shall 1 22 establish all hourly rates to be charged to all authorized 1 23 users for the use of the network and shall consider all costs 1 24 of the network in establishing the rates. A fee established 1 25 by the commission to be charged to a hospital licensed 1 26 pursuant to chapter 135B, a physician clinic,orthe federal 1 27 government, a not=for=profit organization, or a private 1 28 individual shall be at an appropriate rate so that, at a 1 29 minimum, there is no state subsidy related to the costs of the 1 30 connection or use of the network related to such user. Fees 1 31 charged to a not=for=profit organization or a private 1 32 individual shall be subject to the provisions of section 1 33 8D.13, subsection 21. 1 34 Sec. 4. Section 8D.9, Code 2009, is amended by adding the 1 35 following new subsections: 2 1 NEW SUBSECTION. 5. A not=for=profit organization 2 2 considered a private agency pursuant to section 8D.2, 2 3 subsection 4, shall be authorized to utilize the network 2 4 strictly for purposes associated with the administration or 2 5 business of the not=for=profit organization, conditioned upon 2 6 the submission of an application to the commission and receipt 2 7 from the commission of approval of eligibility. Application 2 8 forms and approval criteria shall be determined by the 2 9 commission by rule, and shall include information relating to 2 10 the organization's net worth or annual funding for reduced 2 11 rate qualification purposes as provided in section 8D.13, 2 12 subsection 21. 2 13 NEW SUBSECTION. 6. A private individual shall be 2 14 authorized to utilize the network conditioned upon the 2 15 submission of an application to the commission and receipt 2 16 from the commission of approval of eligibility. Application 2 17 forms and approval criteria shall be determined by the 2 18 commission by rule, and shall include information relating to 2 19 the individual's address of residence for identification of 2 20 enterprise zone status relating to reduced rate qualification 2 21 as provided in section 8D.13, subsection 21. 2 22 Sec. 5. Section 8D.11, subsection 1, paragraph a, Code 2 23 2009, is amended to read as follows: 2 24 a. The commission may purchase, lease, and improve 2 25 property, equipment, and services for telecommunications for 2 26 public and private agencies and private individuals and may 2 27 dispose of property and equipment when not necessary for its 2 28 purposes. The commission may enter into a contract for the 2 29 purchase, lease, or improvement of property, equipment, or 2 30 services for telecommunications pursuant to this subsection in 2 31 an amount not greater than the contract limitation amount 2 32 without prior authorization by a constitutional majority of 2 33 each house of the general assembly, approval by the 2 34 legislative council if the general assembly is not in session, 2 35 or the approval of the executive council as provided pursuant 3 1 to paragraph "b". A contract entered into under this 3 2 subsection for an amount exceeding the contract limitation 3 3 amount shall require prior authorization or approval by the 3 4 general assembly, the legislative council, or the executive 3 5 council as provided in this subsection. The commission shall 3 6 not issue any bonding or other long=term financing 3 7 arrangements as defined in section 12.30, subsection 1, 3 8 paragraph "b". Real or personal property to be purchased by 3 9 the commission through the use of a financing agreement shall 3 10 be done in accordance with the provisions of section 12.28, 3 11 provided, however, that the commission may purchase property, 3 12 equipment, or services for telecommunications pursuant to a 3 13 financing agreement in an amount not greater than the contract 3 14 limitation amount without prior authorization by a 3 15 constitutional majority of each house of the general assembly, 3 16 approval by the legislative council if the general assembly is 3 17 not in session, or the approval of the executive council as 3 18 provided pursuant to paragraph "b". A contract entered into 3 19 under this subsection for an amount exceeding the contract 3 20 limitation amount shall require prior authorization or 3 21 approval by the general assembly, the legislative council, or 3 22 the executive council as provided in this subsection. 3 23 Sec. 6. Section 8D.11, subsection 2, Code 2009, is amended 3 24 to read as follows: 3 25 2. The commission also shall not provide or resell 3 26 communications services to entities other than public and 3 27 private agencies and private individuals. The public or 3 28 private agency or private individual shall not provide 3 29 communication services of the network to another entity unless 3 30 otherwise authorized pursuant to this chapter. The commission 3 31 may arrange for joint use of available services and 3 32 facilities, and may enter into leases and agreements with 3 33 private and public agencies with respect to the Iowa 3 34 communications network, and public agencies and private 3 35 individuals are authorized to enter into leases and agreements 4 1 with respect to the network for their use and operation. 4 2 Rentals and other amounts due under the agreements or leases 4 3 entered into pursuant to this section by a state agency are 4 4 payable from funds annually appropriated by the general 4 5 assembly or from other funds legally available. Other public 4 6 agencies may pay the rental costs and other amounts due under 4 7 an agreement or lease from their annual budgeted funds or 4 8 other funds legally available or to become available. 4 9 Sec. 7. Section 8D.13, subsection 1, Code 2009, is amended 4 10 to read as follows: 4 11 1. Moneys in the Iowa communications network fund are 4 12 appropriated to the Iowa telecommunications and technology 4 13 commission for purposes of providing financing for the 4 14 procurement, operation, and maintenance of the Iowa 4 15 communications network with sufficient capacity to serve the 4 16 video, data, and voice requirements of the educational 4 17 telecommunications system consisting of Part I, Part II, and 4 18 Part III, and other public and private agencies and private 4 19 individuals. 4 20 Sec. 8. Section 8D.13, subsection 2, paragraph c, Code 4 21 2009, is amended to read as follows: 4 22 c. "Part III" means the communications connection between 4 23 the secondary switching centers and the agencies defined in 4 24 section 8D.2, subsections 4 and 5, excluding state agencies, 4 25 institutions under the control of the board of regents, 4 26 nonprofit institutions of higher education eligible for 4 27 tuition grants, and the judicial branch, judicial district 4 28 departments of correctional services, hospitals and physician 4 29 clinics, agencies of the federal government,andpost offices, 4 30 not=for=profit organizations, and private individuals. 4 31 Sec. 9. Section 8D.13, Code 2009, is amended by adding the 4 32 following new subsection: 4 33 NEW SUBSECTION. 21. Access to the network shall be 4 34 offered to not=for=profit organizations defined as a private 4 35 agency pursuant to section 8D.2, subsection 4, and to private 5 1 individuals pursuant to section 8D.2, subsection 4A. A 5 2 not=for=profit organization or a private individual shall 5 3 receive approval from the commission prior to authorized usage 5 4 as provided in section 8D.9, subsection 5 or 6, and shall be 5 5 responsible for all costs associated with becoming a part of 5 6 the network. In establishing rates applicable to a 5 7 not=for=profit organization or a private individual pursuant 5 8 to section 8D.3, subsection 3, the commission shall adopt by 5 9 rule a rate differential whereby authorized users submitting 5 10 information on the application required pursuant to section 5 11 8D.9, subsections 5 and 6, shall be subject to a reduced rate 5 12 for authorized use if the following apply: 5 13 a. For a not=for=profit organization, an estimated annual 5 14 funding level or net worth of less than three hundred fifty 5 15 thousand dollars. 5 16 b. For a private individual, a residence located in an 5 17 area of a city that meets the distress criteria provided under 5 18 the enterprise zone program in section 15E.194, subsection 2. 5 19 The commission shall establish rates applicable to 5 20 not=for=profit organizations and private individuals to whom 5 21 paragraphs "a" and "b" do not apply to compensate for the rate 5 22 reduction for qualifying organizations or individuals. 5 23 EXPLANATION 5 24 This bill adds not=for=profit organizations and private 5 25 individuals to the list of authorized users of the Iowa 5 26 communications network. 5 27 The bill provides that prior to being authorized, a 5 28 not=for=profit organization or a private individual shall 5 29 submit an application on a form to be developed by the Iowa 5 30 telecommunications and technology commission to the commission 5 31 for approval as an authorized user. The bill provides that 5 32 the commission shall establish rates for usage which ensure 5 33 that no state subsidy related to the costs of the connection 5 34 or use of the network by not=for=profit organizations or 5 35 private individuals as users occurs, and provides that such 6 1 organizations and individuals shall be responsible for all 6 2 costs associated with becoming a part of the network. The 6 3 bill provides, however, that the commission shall establish a 6 4 rate differential whereby not=for=profit organizations with 6 5 annual funding or a net worth of less than $350,000, or 6 6 private individuals residing in an enterprise zone, shall pay 6 7 reduced rates. The bill directs the commission to establish 6 8 rates applicable to organizations with a higher funding level 6 9 or higher net worth and private individuals not residing in an 6 10 enterprise zone to balance out the reduced rates. 6 11 The bill makes conforming changes to Code chapter 8D, which 6 12 deals with the Iowa communications network and the duties of 6 13 the telecommunications and technology commission. 6 14 LSB 2574YH 83 6 15 rn/nh/5