Senate File 2353 - Introduced SENATE FILE 2353 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 3004) 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 5319SV (2) 83 rn/nh

S.F. 2353 Section 1. Section 8D.13, subsection 5, Code 2009, is 1 amended to read as follows: 2 5. a. (1) 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 (2) The lease provisions of this subsection do not apply to 19 a school district which elects to provide one hundred percent 20 of 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 as provided in this paragraph “b” . 25 (2) (a) The commission shall appoint a committee to review 26 all instances where the state is considering or is requested to 27 consider providing a connection in a manner other than pursuant 28 to a lease, and to make a determination regarding whether such 29 provision is warranted. 30 (b) The committee shall review all instances involving any 31 of the following: 32 (i) An incumbent provider with an existing leased 33 connection terminates ownership of the leased connection. 34 (ii) An incumbent provider with an existing leased 35 -1- LSB 5319SV (2) 83 rn/nh 1/ 5

S.F. 2353 connection ceases to provide the necessary level of maintenance 1 service associated with the leased connection as stated in the 2 service level agreement. 3 (iii) An authorized user who is responsible for the 4 connection’s payment requests that the commission review the 5 manner in which network services are provided to the authorized 6 user as a result of the cost or capacity of the connections 7 associated with the authorized user. A request pursuant to 8 this subparagraph subdivision shall only be considered by the 9 commission upon the expiration of an existing lease term, after 10 the completion of the bid process associated with providing the 11 lease connection during which no more than one compliant bid 12 from a responsible bidder is received, and prior to a contract 13 being awarded pursuant to the bid process. 14 (c) This subparagraph (2) shall not be construed to 15 authorize the commission or the committee to affect the terms 16 of an existing lease. 17 (d) The committee shall be composed of a commission 18 designee, two persons representing telecommunications 19 providers who provide Part III connections, one person who is a 20 franchised cable operator, one person representing libraries, 21 and one person representing the department of education. 22 Additionally, a representative from the Iowa hospital 23 association shall be appointed to the committee and shall 24 participate if the affected connection is associated with a 25 participant in the association’s telemedicine network. Members 26 of the committee shall be appointed annually by the commission 27 from persons recommended to the commission for representation 28 on the committee. 29 (e) Prior to approving a change regarding provision of 30 capacity in a manner other than pursuant to a lease, the 31 committee shall determine that it is in the long-term best 32 interest of the authorized user to provide an existing or 33 otherwise authorized network connection in a manner other 34 than pursuant to a lease. In making this determination, the 35 -2- LSB 5319SV (2) 83 rn/nh 2/ 5

S.F. 2353 committee, at a minimum, shall consider the cost to taxpayers 1 and the ability of the network to provide a level of service 2 necessary to meet the demands of network users. 3 (f) The committee shall notify the commission and any 4 affected authorized user of a determination regarding the 5 manner in which a connection shall be provided pursuant to 6 this subsection within thirty days of receiving a request 7 for consideration pursuant to this subparagraph (2), and in 8 so doing shall consult with any affected authorized user or 9 users and the affected provider of the Part III connection. 10 A decision to proceed with implementation of the committee’s 11 decision shall be at the discretion of the authorized user. 12 (g) The commission shall not provide a connection under this 13 subsection in a manner other than pursuant to a lease without 14 the approval of the committee. However, a determination by the 15 committee that the state shall construct a Part III connection 16 or purchase an existing Part III connection shall be subject to 17 the approval of the commission. 18 (3) The commission, in consultation with the committee, 19 shall by rule establish procedures and criteria for proceeding 20 as permitted under this paragraph “b” . The commission shall 21 provide staff support for the committee. 22 c. The commission shall include network connection changes 23 made pursuant to this subsection in the commission’s annual 24 report related to the network. 25 EXPLANATION 26 This bill relates to the provision of services over 27 presently leased Iowa communication network connection 28 facilities. Currently, the state is required to lease all 29 connections that apply to part III connections, the judicial 30 branch, the judicial district departments of correctional 31 services, and state agencies that are paid for with state 32 funding from qualified providers and is prohibited from owning 33 such connections except for facilities owned by the state as 34 of January 1, 1994. The bill authorizes the state to provide 35 -3- LSB 5319SV (2) 83 rn/nh 3/ 5

S.F. 2353 fiberoptic cable facilities or other facilities with sufficient 1 capacity as determined by the Iowa telecommunications and 2 technology commission, in consultation with authorized 3 users, in a manner other than through a lease under specified 4 circumstances. 5 The bill provides that facilities with sufficient capacity 6 may be provided in a manner other than pursuant to a lease 7 when determined warranted by a committee appointed by the Iowa 8 telecommunications and technology commission. The committee 9 is directed to review all instances involving an incumbent 10 provider with an existing leased connection terminating 11 ownership of the connection or ceasing to provide the necessary 12 level of maintenance service associated with the connection. 13 The bill provides that the committee shall also review, under 14 specified circumstances, instances when an authorized user 15 who is responsible for the connection’s payment requests that 16 the commission review the manner in which network services 17 are provided to them as a result of the cost or capacity of 18 their connections. The bill states that this review shall not 19 be construed to authorize the commission or the committee to 20 affect the terms of an existing lease. 21 The bill specifies membership in the committee, and provides 22 that prior to approving a change regarding providing capacity 23 in a manner other than pursuant to a lease, the committee shall 24 determine that doing so is in the authorized user’s long-term 25 best interest. 26 The bill states that the committee shall notify the 27 commission and an authorized user of its determination within 28 30 days of receiving a request for review, and that a decision 29 to proceed with implementation of the committee’s decision 30 shall be at the discretion of the authorized user. The bill 31 prohibits the commission from providing a connection in a 32 manner other than pursuant to a lease without the approval of 33 the committee, but adds that a determination by the committee 34 that the state shall construct a part III connection or 35 -4- LSB 5319SV (2) 83 rn/nh 4/ 5

S.F. 2353 purchase an existing part III connection shall be subject to 1 commission approval. 2 The bill directs the commission, in consultation with the 3 committee, to adopt rules establishing procedures to implement 4 the bill’s provisions, and directs the commission to include 5 network connection changes pursuant to the bill’s provisions in 6 its annual report related to the network. 7 -5- LSB 5319SV (2) 83 rn/nh 5/ 5