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, or a 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, or the 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, and post 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