House Study Bill 532 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED IOWA TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION BILL) A BILL FOR An Act relating to the provision of services through Iowa 1 communications network connection facilities under specified 2 circumstances. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5319DP (6) 83 rn/nh

S.F. _____ H.F. _____ Section 1. Section 8D.13, subsection 5, Code 2009, is 1 amended to read as follows: 2 5. a. The state shall lease all fiberoptic cable 3 facilities or facilities with DS-3 sufficient capacity as 4 determined by the commission for Part III connections , for 5 which state funding is provided. The state shall lease 6 all fiberoptic cable facilities or facilities with DS-3 or 7 DS-1 capacity for the judicial branch, judicial district 8 department departments of correctional services, and state 9 agency connections for which state funding is provided. In 10 determining the capacity to be provided, the commission 11 shall consult with the authorized users associated with 12 the Part III connections, the judicial branch, the judicial 13 district departments of correctional services, and state 14 agencies associated with connections for which state funding 15 is provided. Such facilities shall be leased from qualified 16 providers. The state shall not own such facilities, except for 17 those facilities owned by the state as of January 1, 1994. 18 The lease provisions of this subsection do not apply to a 19 school district which elects to provide one hundred percent of 20 the financing for the district’s connection. 21 b. (1) Notwithstanding paragraph “a” , the state may provide 22 fiberoptic cable facilities or other facilities with sufficient 23 capacity as determined under paragraph “a” in a manner other 24 than pursuant to a lease if any of the following apply: 25 (a) An incumbent provider providing an existing leased 26 connection terminates ownership of the leased connection. 27 (b) An incumbent provider providing an existing leased 28 connection ceases to provide the necessary level of maintenance 29 service associated with the leased connection. 30 (c) The commission determines that it is in the long-term 31 best interest of the state to provide an existing or otherwise 32 authorized network connection in a manner other than pursuant 33 to a lease. In making this determination, the commission, at a 34 minimum, shall consider the cost to taxpayers and the ability 35 -1- LSB 5319DP (6) 83 rn/nh 1/ 3

S.F. _____ H.F. _____ of the network to provide a level of service necessary to meet 1 the demands of network users. 2 (2) Prior to proceeding as permitted under subparagraph 3 (1), the commission shall make a determination that an 4 alternative cost-effective solution other than proceeding 5 under subparagraph (1) is not available from a private 6 sector qualified provider. For purposes of state ownership 7 of a network connection, the commission shall also make a 8 determination that utilization of a competitive bidding process 9 would not be effective and is not in the best interest of the 10 state. 11 (3) The commission shall by rule establish procedures and 12 criteria for proceeding as permitted under subparagraph (1). 13 The commission shall publish network connection changes made 14 pursuant to this paragraph “b” in the commission’s annual report 15 related to the network. 16 EXPLANATION 17 This bill relates to the provision of services over 18 presently leased Iowa communications network connection 19 facilities. Currently, the state is required to lease all 20 connections that apply to Part III connections, the judicial 21 branch, the judicial district departments of correctional 22 services, and state agencies that are paid for with state 23 funding from qualified providers and is prohibited from owning 24 such connections except for facilities owned by the state as 25 of January 1, 1994. The bill authorizes the state to provide 26 fiberoptic cable facilities or other facilities with sufficient 27 capacity as determined by the Iowa telecommunications and 28 technology commission, in consultation with authorized 29 users, in a manner other than through a lease under specified 30 circumstances. Provision other than through leasing will be 31 permitted when an incumbent connection qualified provider 32 terminates ownership of an existing leased connection, or 33 ceases to provide the necessary level of maintenance service 34 associated with an existing leased connection. Provision other 35 -2- LSB 5319DP (6) 83 rn/nh 2/ 3

S.F. _____ H.F. _____ than through leasing will also be permitted when the state 1 telecommunications and technology commission determines that 2 such provision is in the best interest of the state. 3 Prior to proceeding with an alternative connection to an 4 existing or otherwise authorized network connection, the 5 commission shall determine that an alternate cost-effective 6 solution is not available from a private sector qualified 7 provider. The commission shall also determine that utilization 8 of a competitive bidding process will not be effective and is 9 not in the best interest of the state for providing an existing 10 or otherwise authorized network connection. The commission is 11 directed to establish by rule procedures and criteria for the 12 process and to publish notice of the changes contained in the 13 bill in the commission’s annual report related to the network. 14 The bill additionally deletes specific reference to DS-3 and 15 DS-1 facility capacity. 16 -3- LSB 5319DP (6) 83 rn/nh 3/ 3