Bill Text: IA SF2219 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing for the sale or lease of the Iowa communications network. (See SF 2355.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-12 - Subcommittee recommends passage. [SF2219 Detail]
Download: Iowa-2017-SF2219-Introduced.html
Senate File 2219 - Introduced SENATE FILE BY ZAUN A BILL FOR 1 An Act providing for the sale or lease of the Iowa 2 communications network. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5180XS (2) 87 gh/rn PAG LIN 1 1 Section 1. SALE OR LEASE OF IOWA COMMUNICATIONS NETWORK. 1 2 1. The Iowa telecommunications and technology commission 1 3 shall implement a request for proposals process to sell 1 4 or lease the Iowa communications network. The request for 1 5 proposals shall provide for the sale to be concluded or the 1 6 lease to commence during the fiscal year beginning July 1, 1 7 2018. 1 8 2. a. Prior to a sale or lease of the Iowa communications 1 9 network, the state auditor shall conduct a comprehensive 1 10 audit and accounting of the network to include the following 1 11 components: 1 12 (1) A complete financial audit of the network for the period 1 13 beginning July 1, 2015, and ending July 1, 2018, to identify 1 14 the revenues and expenses of the network and verify that 1 15 charges were properly made to all existing authorized users and 1 16 booked accurately by such authorized users and the network. 1 17 (2) A complete inventory audit of all components included 1 18 in the network, including telecommunications=related and 1 19 non=telecommunications=related property or equipment. Such 1 20 inventory shall identify the age and condition of property 1 21 or equipment purchased or leased by the commission for the 1 22 operation of the network and verify physical connections to 1 23 current authorized users. 1 24 (3) Information identifying and quantifying the value of 1 25 services provided by the network to current authorized users. 1 26 (4) Information identifying all current authorized users 1 27 and business units of the network. 1 28 b. Following the completion of the comprehensive audit and 1 29 accounting required pursuant to paragraph "a", an independent 1 30 appraisal firm shall conduct an appraisal of the network to 1 31 determine the current market value of the assets listed in the 1 32 audit and accounting. The independent appraisal firm shall be 1 33 selected through a competitive bidding process not associated 1 34 with the network or any of its vendors. 1 35 c. The results of the audit, accounting, and appraisal of 2 1 the network conducted pursuant to this subsection shall be made 2 2 available to the public on an internet site maintained by the 2 3 commission. 2 4 3. A sale or lease of the Iowa communications network 2 5 pursuant to this section shall be conditioned as follows: 2 6 a. Public funds shall not be used to secure the purchase of 2 7 the network. 2 8 b. If the commission seeks outside assistance to implement 2 9 the request for proposals process, such assistance shall be 2 10 provided by an independent professional firm selected through a 2 11 competitive bidding process not associated with the network or 2 12 any of its vendors. 2 13 c. The request for proposals shall include a complete list 2 14 of all assets subject to the sale or lease, as identified 2 15 pursuant to subsection 2, which shall not be materially altered 2 16 after the request for proposals is released for bids. 2 17 d. The request for proposals shall allow a bidder to 2 18 purchase the network's assets relating to the Iowa national 2 19 guard. 2 20 e. The request for proposals shall not require a bidder to 2 21 subsidize the network's services that are operating at a loss, 2 22 maintain the network's billing and procurement system, maintain 2 23 or employ the network's employees, or segregate the network's 2 24 fiber operations from the bidder's operations. 2 25 f. The winning bidder selected pursuant to the request 2 26 for proposals shall demonstrate a commitment to serving the 2 27 citizens of this state and facilitating rural broadband service 2 28 throughout the state at or above twenty=five megabits per 2 29 second of download speed and three megabits per second of 2 30 upload speed. 2 31 4. The commission shall submit periodic status reports to 2 32 the general assembly at three=month intervals, beginning on 2 33 October 1, 2018, regarding progress made toward selling or 2 34 leasing the network. 2 35 EXPLANATION 3 1 The inclusion of this explanation does not constitute agreement with 3 2 the explanation's substance by the members of the general assembly. 3 3 This bill directs the Iowa telecommunications and technology 3 4 commission to implement a request for proposals (RFP) process 3 5 to sell or lease the Iowa communications network, with the sale 3 6 or lease to commence during the fiscal year beginning July 1, 3 7 2018. 3 8 The bill provides that prior to the sale or lease of the 3 9 network, the state auditor shall conduct a comprehensive audit 3 10 and accounting of the network, including a complete financial 3 11 audit, a complete inventory audit, information relating to the 3 12 value of services provided by the network, and information 3 13 identifying all current authorized users of the network, as 3 14 specified in the bill. The bill further provides that an 3 15 independent appraisal firm shall conduct an appraisal of the 3 16 network to determine the current market value of the network's 3 17 assets. Such firm shall be selected through a competitive 3 18 bidding process not associated with the network or any of 3 19 its vendors. The bill requires the results of the audit, 3 20 accounting, and appraisal to be made available to the public. 3 21 The bill conditions the sale or lease of the network as 3 22 follows: public funds shall not be used to secure the purchase 3 23 of the network; if the commission seeks outside assistance to 3 24 implement the RFP process, such assistance shall be provided by 3 25 an independent professional firm selected through a competitive 3 26 bidding process not associated with the network or any of 3 27 its vendors; the RFP shall include a complete list of all of 3 28 the assets subject to the sale or lease, which shall not be 3 29 materially altered after the RFP is released; the RFP shall 3 30 allow a bidder to purchase the network's assets relating to 3 31 the Iowa national guard; the RFP shall not require a bidder to 3 32 subsidize the network's services that are operating at a loss, 3 33 maintain the network's billing and procurement system, maintain 3 34 or employ the network's employees, or segregate operations; and 3 35 the winning bidder shall demonstrate a commitment to serving 4 1 the citizens of Iowa and facilitating rural broadband service 4 2 as specified in the bill. 4 3 The bill requires the commission to submit status reports 4 4 to the general assembly every three months, beginning October 4 5 1, 2018, regarding progress made toward selling or leasing the 4 6 network. 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