HF 2590 (LSB 5861HV (1) 91)

HOUSE FILE 2590

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 709)

A BILL FOR

An Act relating to the Iowa communications network, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8D.11, subsection 2, Code 2026, is amended by striking the subsection.
    Sec. 2.  Section 8D.11, subsection 5, Code 2026, is amended to read as follows:
   5.  Pursuant to an agreement between the commission and an authorized user, the commission may provide billing services on behalf of the authorized user and charge another entity that receives services from the authorized user pursuant to the network if all of the following conditions are satisfied:
   a.  The the services provided by the authorized user to the other entity must be are consistent with the mission of the authorized user.
   b.  The services provided by the authorized user to the other entity must be consistent with the requirements and limitations in subsection 2.
    Sec. 3.  SALE OF IOWA COMMUNICATIONS NETWORK.  The department of management shall implement a solicitation process, which may include direct solicitation of bids, to sell the Iowa communications network. The solicitation must provide for the sale to be concluded as soon as feasible. The department may utilize a sole source approach to contract for necessary vendor services to facilitate the transaction, including but not limited to brokerage services, financial accounting services, and outside counsel. The department shall condition the sale of the Iowa communications network on terms that will allow existing contracted services by authorized users of the network to continue on commercially reasonable terms for a period of at least ten years. The department shall submit periodic status reports to the legislative services agency at three-month intervals, beginning October 1, 2026, regarding progress made toward selling the network. At least ten days before completing the sale, the director of the department shall submit a report to the legislative services agency outlining the proposed sale. Proceeds from the sale of the Iowa communications network shall be deposited in the general fund of the state.
    Sec. 4.  EFFECTIVE DATE.  The following, being deemed of immediate importance, takes effect upon enactment:
   The section of this Act authorizing the sale of the Iowa communications network.
    Sec. 5.  EFFECTIVE DATE.  The following take effect July 1, 2027:
   1.  The section of this Act amending section 8D.11, subsection 2.
   2.  The section of this Act amending section 8D.11, subsection 5.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill strikes provisions prohibiting the Iowa telecommunications and technology commission from providing or reselling communications services to entities other than public and private agencies, prohibiting public and private agencies from providing communication services of the Iowa communications network to another entity unless authorized, and authorizing and regulating leases and agreements regarding the Iowa communications network with private and public agencies. The elimination of these provisions takes effect July 1, 2027.
   The bill directs the department of management (DOM) to sell the Iowa communications network as soon as feasible. DOM may use a sole source approach to contract for vendor services to facilitate the transaction and may directly solicit bids for the network. The sale must allow authorized users of the network to continue to receive contracted services on commercially reasonable terms for at least 10 years. The bill requires DOM to submit status reports to the legislative services agency every three months, beginning October 1, 2026, and an outline of the proposed sale 10 days prior to completing the transaction. The proceeds of the sale are deposited in the general fund. This provision takes effect upon enactment.