HSB 532 (LSB 5319DP (6) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED IOWA TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION BILL)

A BILL FOR

An Act relating to the provision of services through Iowa communications network connection facilities under specified circumstances.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8D.13, subsection 5, Code 2009, is amended to read as follows:
   5.  a.  The state shall lease all fiberoptic cable facilities or facilities with DS-3 sufficient capacity as determined by the commission for Part III connections, for which state funding is provided. The state shall lease all fiberoptic cable facilities or facilities with DS-3 or DS-1 capacity for the judicial branch, judicial district department departments of correctional services, and state agency connections for which state funding is provided. In determining the capacity to be provided, the commission shall consult with the authorized users associated with the Part III connections, the judicial branch, the judicial district departments of correctional services, and state agencies associated with connections for which state funding is provided. Such facilities shall be leased from qualified providers. The state shall not own such facilities, except for those facilities owned by the state as of January 1, 1994.

   The lease provisions of this subsection do not apply to a school district which elects to provide one hundred percent of the financing for the district’s connection.

   b.  (1)  Notwithstanding paragraph “a”, the state may provide fiberoptic cable facilities or other facilities with sufficient capacity as determined under paragraph “a” in a manner other than pursuant to a lease if any of the following apply:
   (a)  An incumbent provider providing an existing leased connection terminates ownership of the leased connection.
   (b)  An incumbent provider providing an existing leased connection ceases to provide the necessary level of maintenance service associated with the leased connection.
   (c)  The commission determines that it is in the long-term best interest of the state to provide an existing or otherwise authorized network connection in a manner other than pursuant to a lease. In making this determination, the commission, at a minimum, shall consider the cost to taxpayers and the ability of the network to provide a level of service necessary to meet the demands of network users.
   (2)  Prior to proceeding as permitted under subparagraph (1), the commission shall make a determination that an alternative cost-effective solution other than proceeding under subparagraph (1) is not available from a private sector qualified provider. For purposes of state ownership of a network connection, the commission shall also make a determination that utilization of a competitive bidding process would not be effective and is not in the best interest of the state.
   (3)  The commission shall by rule establish procedures and criteria for proceeding as permitted under subparagraph (1). The commission shall publish network connection changes made pursuant to this paragraph “b” in the commission’s annual report related to the network.
EXPLANATION
   This bill relates to the provision of services over presently leased Iowa communications network connection facilities. Currently, the state is required to lease all connections that apply to Part III connections, the judicial branch, the judicial district departments of correctional services, and state agencies that are paid for with state funding from qualified providers and is prohibited from owning such connections except for facilities owned by the state as of January 1, 1994. The bill authorizes the state to provide fiberoptic cable facilities or other facilities with sufficient capacity as determined by the Iowa telecommunications and technology commission, in consultation with authorized users, in a manner other than through a lease under specified circumstances. Provision other than through leasing will be permitted when an incumbent connection qualified provider terminates ownership of an existing leased connection, or ceases to provide the necessary level of maintenance service associated with an existing leased connection. Provision other than through leasing will also be permitted when the state telecommunications and technology commission determines that such provision is in the best interest of the state.
   Prior to proceeding with an alternative connection to an existing or otherwise authorized network connection, the commission shall determine that an alternate cost-effective solution is not available from a private sector qualified provider. The commission shall also determine that utilization of a competitive bidding process will not be effective and is not in the best interest of the state for providing an existing or otherwise authorized network connection. The commission is directed to establish by rule procedures and criteria for the process and to publish notice of the changes contained in the bill in the commission’s annual report related to the network.
   The bill additionally deletes specific reference to DS-3 and DS-1 facility capacity.