Bill Text: IA SF8 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act providing for the sale or lease of the Iowa communications network.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-01-31 - Subcommittee Meeting: 02/04/2019 4:00PM Senate Lobbyist Lounge. [SF8 Detail]
Download: Iowa-2019-SF8-Introduced.html
Senate
File
8
-
Introduced
SENATE
FILE
8
BY
ZAUN
A
BILL
FOR
An
Act
providing
for
the
sale
or
lease
of
the
Iowa
1
communications
network.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
SALE
OR
LEASE
OF
IOWA
COMMUNICATIONS
NETWORK.
1
1.
The
Iowa
telecommunications
and
technology
commission
2
shall
implement
a
request
for
proposals
process
to
sell
3
or
lease
the
Iowa
communications
network.
The
request
for
4
proposals
shall
provide
for
the
sale
to
be
concluded
or
the
5
lease
to
commence
during
the
fiscal
year
beginning
July
1,
6
2019.
7
2.
a.
Prior
to
a
sale
or
lease
of
the
Iowa
communications
8
network,
the
state
auditor
shall
conduct
a
comprehensive
9
audit
and
accounting
of
the
network
to
include
the
following
10
components:
11
(1)
A
complete
financial
audit
of
the
network
for
the
period
12
beginning
July
1,
2016,
and
ending
July
1,
2019,
to
identify
13
the
revenues
and
expenses
of
the
network
and
verify
that
14
charges
were
properly
made
to
all
existing
authorized
users
and
15
booked
accurately
by
such
authorized
users
and
the
network.
16
(2)
A
complete
inventory
audit
of
all
components
included
17
in
the
network,
including
telecommunications-related
and
18
non-telecommunications-related
property
or
equipment.
Such
19
inventory
shall
identify
the
age
and
condition
of
property
20
or
equipment
purchased
or
leased
by
the
commission
for
the
21
operation
of
the
network
and
verify
physical
connections
to
22
current
authorized
users.
23
(3)
Information
identifying
and
quantifying
the
value
of
24
services
provided
by
the
network
to
current
authorized
users.
25
(4)
Information
identifying
all
current
authorized
users
26
and
business
units
of
the
network.
27
b.
Following
the
completion
of
the
comprehensive
audit
and
28
accounting
required
pursuant
to
paragraph
“a”,
an
independent
29
appraisal
firm
shall
conduct
an
appraisal
of
the
network
to
30
determine
the
current
market
value
of
the
assets
listed
in
the
31
audit
and
accounting.
The
independent
appraisal
firm
shall
be
32
selected
through
a
competitive
bidding
process
not
associated
33
with
the
network
or
any
of
its
vendors.
34
c.
The
results
of
the
audit,
accounting,
and
appraisal
of
35
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8
the
network
conducted
pursuant
to
this
subsection
shall
be
made
1
available
to
the
public
on
an
internet
site
maintained
by
the
2
commission.
3
3.
A
sale
or
lease
of
the
Iowa
communications
network
4
pursuant
to
this
section
shall
be
conditioned
as
follows:
5
a.
Public
funds
shall
not
be
used
to
secure
the
purchase
of
6
the
network.
7
b.
If
the
commission
seeks
outside
assistance
to
implement
8
the
request
for
proposals
process,
such
assistance
shall
be
9
provided
by
an
independent
professional
firm
selected
through
a
10
competitive
bidding
process
not
associated
with
the
network
or
11
any
of
its
vendors.
12
c.
The
request
for
proposals
shall
include
a
complete
list
13
of
all
assets
subject
to
the
sale
or
lease,
as
identified
14
pursuant
to
subsection
2,
which
shall
not
be
materially
altered
15
after
the
request
for
proposals
is
released
for
bids.
16
d.
The
request
for
proposals
shall
allow
a
bidder
to
17
purchase
the
network’s
assets
relating
to
the
Iowa
national
18
guard.
19
e.
The
request
for
proposals
shall
not
require
a
bidder
to
20
subsidize
the
network’s
services
that
are
operating
at
a
loss,
21
maintain
the
network’s
billing
and
procurement
system,
maintain
22
or
employ
the
network’s
employees,
or
segregate
the
network’s
23
fiber
operations
from
the
bidder’s
operations.
24
f.
The
winning
bidder
selected
pursuant
to
the
request
25
for
proposals
shall
demonstrate
a
commitment
to
serving
the
26
citizens
of
this
state
and
facilitating
rural
broadband
service
27
throughout
the
state
at
or
above
twenty-five
megabits
per
28
second
of
download
speed
and
three
megabits
per
second
of
29
upload
speed.
30
4.
The
commission
shall
submit
periodic
status
reports
to
31
the
general
assembly
at
three-month
intervals,
beginning
on
32
October
1,
2019,
regarding
progress
made
toward
selling
or
33
leasing
the
network.
34
EXPLANATION
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
directs
the
Iowa
telecommunications
and
technology
3
commission
to
implement
a
request
for
proposals
(RFP)
process
4
to
sell
or
lease
the
Iowa
communications
network,
with
the
sale
5
or
lease
to
commence
during
the
fiscal
year
beginning
July
1,
6
2019.
7
The
bill
provides
that
prior
to
the
sale
or
lease
of
the
8
network,
the
state
auditor
shall
conduct
a
comprehensive
audit
9
and
accounting
of
the
network,
including
a
complete
financial
10
audit,
a
complete
inventory
audit,
information
relating
to
the
11
value
of
services
provided
by
the
network,
and
information
12
identifying
all
current
authorized
users
of
the
network,
as
13
specified
in
the
bill.
The
bill
further
provides
that
an
14
independent
appraisal
firm
shall
conduct
an
appraisal
of
the
15
network
to
determine
the
current
market
value
of
the
network’s
16
assets.
Such
firm
shall
be
selected
through
a
competitive
17
bidding
process
not
associated
with
the
network
or
any
of
18
its
vendors.
The
bill
requires
the
results
of
the
audit,
19
accounting,
and
appraisal
to
be
made
available
to
the
public.
20
The
bill
conditions
the
sale
or
lease
of
the
network
as
21
follows:
public
funds
shall
not
be
used
to
secure
the
purchase
22
of
the
network;
if
the
commission
seeks
outside
assistance
to
23
implement
the
RFP
process,
such
assistance
shall
be
provided
by
24
an
independent
professional
firm
selected
through
a
competitive
25
bidding
process
not
associated
with
the
network
or
any
of
26
its
vendors;
the
RFP
shall
include
a
complete
list
of
all
of
27
the
assets
subject
to
the
sale
or
lease,
which
shall
not
be
28
materially
altered
after
the
RFP
is
released;
the
RFP
shall
29
allow
a
bidder
to
purchase
the
network’s
assets
relating
to
30
the
Iowa
national
guard;
the
RFP
shall
not
require
a
bidder
to
31
subsidize
the
network’s
services
that
are
operating
at
a
loss,
32
maintain
the
network’s
billing
and
procurement
system,
maintain
33
or
employ
the
network’s
employees,
or
segregate
operations;
and
34
the
winning
bidder
shall
demonstrate
a
commitment
to
serving
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8
the
citizens
of
Iowa
and
facilitating
rural
broadband
service
1
as
specified
in
the
bill.
2
The
bill
requires
the
commission
to
submit
status
reports
3
to
the
general
assembly
every
three
months,
beginning
October
4
1,
2019,
regarding
progress
made
toward
selling
or
leasing
the
5
network.
6
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