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HSB 709

A bill for an act relating to the Iowa communications network, and including effective date provisions.

2025-2026 Regular Session

The bill authorizes selling the Iowa Communications Network and ensures existing users keep contracted services for 10 years, with ongoing sale reporting.

Committee report approving bill, renumbered as HF 2590.
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Bill Summary · HSB 709

Executive summary

House Study Bill 709 (HF 2590) proposes to reform the Iowa Communications Network (ICN) framework by eliminating certain prohibitions on the Iowa Communications Network Commission, authorizing and regulating leases and agreements involving the ICN with public and private entities, and directing the Department of Management (DOM) to sell the ICN. The bill includes specific sale-transaction procedures, protections for existing contracted services, reporting requirements, and timelines. It also enacts immediate effectiveness for the sale authorization, with additional provisions taking effect July 1, 2027 (and related amendments to ICN provisions).

Purpose and intent

  • Remove statutory prohibitions that currently restrict the ICN commission from providing or reselling communications services to entities beyond public/private agencies, and remove limitations on how public and private agencies may lease or contract regarding the ICN.
  • Authorize the DOM to sell the ICN as soon as feasible, including the option to use a sole-source approach for necessary services to facilitate the sale.
  • Ensure that existing contracted ICN services for authorized users can continue on commercially reasonable terms for at least 10 years post-sale.
  • Establish reporting and transparency requirements to monitor progress toward the sale.

Key provisions and changes

  • Amendments to ICN governance and service authorization:

    • Repeal or modify existing prohibitions related to the ICN’s ability to provide or resell services to entities beyond public and private agencies, and related leasing/agreements with other entities. Effective July 1, 2027 for these amendments.

  • Sale of the Iowa Communications Network:

    • DOM must implement a solicitation process to sell the ICN, which may include direct bid solicitation and may use sole-source contracting to procure needed services (e.g., brokerage, financial accounting, outside counsel).
    • The sale must be completed as soon as feasible and conditioned to ensure continued, commercially reasonable contracted services for authorized users for at least 10 years.
    • DOM must report progress at least every three months to the Legislative Services Agency, starting October 1, 2026. An initial report outlining the proposed sale must be submitted to the Legislative Services Agency at least 10 days before completion. Proceeds from the sale are to be deposited into the state general fund.

  • Effective dates:

    • Immediate effect: The provision authorizing the sale of the ICN takes effect upon enactment.
    • July 1, 2027: Effectiveness of the amendments to ICN-related subsections 2 and 5 (as noted in Sec. 4–Sec. 5).

Who/what is affected

  • Iowa Department of Management (DOM): Responsible for selling the ICN and managing related processes, reporting, and use of sole-source contracting for sale facilitation.
  • Authorized users of the ICN: Entities currently receiving ICN services who must be allowed to continue receiving contracted services on commercially reasonable terms for at least 10 years post-sale.
  • The Iowa Telecommunications and Technology Commission: Provisions that currently limit its authority or prohibit certain actions would be modified (or repealed) to permit broader leasing, reselling, and agreements involving the ICN.
  • General Fund of the State: Proceeds from the sale would be deposited here.

Procedural and timeline aspects

  • Progress reporting: DOM must provide status reports every three months to the Legislative Services Agency beginning October 1, 2026.
  • Sale timeline: The department is directed to sell the ICN as soon as feasible, with the sale conditioned to protect 10-year continuity of contracted services for authorized users.
  • Pre-sale notification: At least 10 days before completion, DOM must submit an outline of the proposed sale to the Legislative Services Agency.
  • Immediate effectiveness: The sale authorization takes effect immediately upon enactment.
  • Post-enactment effective date: Key ICN amendments take effect July 1, 2027.

Potential impact considerations

  • Service continuity: By mandating at least 10 years of continued contracted services for current ICN users, the bill seeks to reduce disruption in government communications during and after the sale.
  • Financial: Proceeds from the sale would bolster the state General Fund, potentially affecting budgeting and financing for other state priorities.
  • Market effects: Allowing broader contracting and possible privatization could shift how government and private entities access state communications infrastructure.
  • Oversight and transparency: Regular reporting creates ongoing legislative oversight of the sale process.

Compiled from official sources — confirm details with the bill’s official record.

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