Senate File 574 H-1368 Amend Senate File 574, as passed by the Senate, as follows: 1 1. Page 1, before line 1 by inserting: 2 < DIVISION I 3 MEGA PROGRAM > 4 2. Page 1, line 29, by striking < 15.289 > and inserting 5 < 15.291 > 6 3. Page 15, after line 31 by inserting: 7 < Sec. ___. NEW SECTION . 15.290A Security requirements. 8 An eligible business shall be required to post, as security 9 for any default by the eligible business under the program, 10 cash or negotiable securities having a fair market value 11 of an amount equal to not less than twenty-five percent of 12 the aggregate value of all tax incentives authorized by the 13 board for the eligible business under the program. The cash 14 or negotiable securities shall be deposited in a financial 15 institution that is chartered in Iowa, and shall be posted on 16 or before the date that the first tax credit certificate is 17 issued to the eligible business. 18 DIVISION ___ 19 STATE INSTITUTIONS OF HIGHER EDUCATION —— PROHIBITION ON 20 PRODUCTS, TRADEMARKS, AND LOGOS 21 Sec. ___. NEW SECTION . 261J.1 Businesses in support of 22 China —— prohibitions. 23 1. For the purposes of this chapter, “institution” means 24 an institution of higher education governed by the board of 25 regents. 26 2. A person who knowingly wears or displays a product made 27 by nike, inc., or a product that displays a trademark or logo 28 associated with nike, inc., while the person is acting in a 29 capacity that represents an institution is guilty of a simple 30 misdemeanor. Notwithstanding section 903.1, the penalty for a 31 person who violates this subsection prior to January 1, 2028, 32 shall not exceed five dollars and no jail sentence shall be 33 imposed. 34 3. On or before August 14, 2023, the state board of regents 35 -1- SF 574.2215 (2) 90 ko/jh 1/ 11 #1. #2. #3.

shall remove all public displays of nike, inc., paraphernalia, 1 including uniforms and athletic wear made by nike, inc., or 2 bearing a nike, inc., logo or trademark, from each institution. 3 Beginning August 15, 2023, for each month an institution is 4 found to be in violation of this subsection, notwithstanding 5 the appropriation made to the institution for the fiscal year, 6 ten million dollars of the institution’s appropriated moneys 7 shall revert to the general fund of the state per month the 8 violation continues. 9 Sec. ___. ENUMERATED HUMAN RIGHTS —— PUBLIC INTEREST IN 10 STATE IMAGE —— LEGISLATIVE FINDINGS. 11 1. The general assembly finds that the Constitution of the 12 State of Iowa expresses the importance of certain fundamental 13 human rights. Among these rights are the right to freely 14 choose religion, the right to due process of law, the right 15 to equal protection under the law, the right to be free of 16 arbitrary and capricious regulations and criminal laws, the 17 right to free speech, the right to personal property, the right 18 to free exchange of goods and ideas, and the right to be free of 19 government coercion in private affairs. 20 2. The general assembly further finds that the uniforms 21 worn by athletes of various universities under the purview of 22 the state board of regents are highly visible in a variety 23 of media and create a part of the public image of this state 24 and its citizens. Additionally, the state’s public image has 25 tremendous value, as a positive image greatly enhances the 26 state’s ability to trade and work with economic partners. As 27 such, this state and its citizens have an interest to ensure 28 that the brands and ideas these uniforms project are not 29 contrary to the fundamental principles embraced by this state 30 and its people. 31 3. The general assembly further finds that the de facto 32 government operating in mainland China is hostile to virtually 33 all fundamental principles expressed in these legislative 34 findings, and nike, inc., through its business operations 35 -2- SF 574.2215 (2) 90 ko/jh 2/ 11

in mainland China, has associated its image publicly as a 1 supporter of the mainland Chinese government, the mainland 2 Chinese economy, and the mainland China de facto government’s 3 principles. 4 4. The general assembly further finds that a display of 5 nike’s trademarks and logos might be construed as approval of 6 nike’s actions, including its support of the mainland China de 7 facto government and its abuses of human rights. Therefore, 8 any public or prominent association between nike and this state 9 is highly inappropriate. 10 DIVISION ___ 11 PEOPLE’S REPUBLIC OF CHINA —— PRODUCTS AND SERVICES 12 Sec. ___. NEW SECTION . 423H.1 Purpose. 13 The purpose of this chapter is to mitigate the special injury 14 incurred by the public from the sale of products made by or 15 on services furnished from the People’s Republic of China and 16 other repressive countries around the world. 17 Sec. ___. NEW SECTION . 423H.2 Definitions. 18 As used in this chapter: 19 1. “Department” means the department of revenue. 20 2. “Director” means the director of revenue. 21 3. “People’s Republic of China” includes any province, 22 region, municipality, or autonomous region of the People’s 23 Republic of China. 24 4. “Product or service” means any tangible personal 25 property, specified digital product, or service that is subject 26 to tax under chapter 423. 27 5. “Repressive country” means a country designated a prison 28 state by a joint resolution enacted by the general assembly and 29 signed by the governor. 30 Sec. ___. NEW SECTION . 423H.3 Special mitigation excise 31 tax. 32 An excise tax of thirty percent shall be imposed on the sales 33 price from the sale of any product or service made or sold by 34 the People’s Republic of China or another repressive country. 35 -3- SF 574.2215 (2) 90 ko/jh 3/ 11

Sec. ___. NEW SECTION . 423H.4 Administration by director. 1 1. The director of revenue shall administer the special 2 mitigation excise tax as nearly as possible in conjunction with 3 the administration of the state sales and use tax law, except 4 that portion of the law that implements the streamlined sales 5 and use tax agreement. The director shall provide appropriate 6 forms, or provide on the regular state tax forms, for reporting 7 tax liability, and for ease of administration may require 8 tax liability to be identified, reported, and remitted to 9 the department as sales and use tax liability, provided the 10 department has the ability to properly identify such amounts as 11 special mitigation excise tax revenues upon receipt. 12 2. The director may require all persons who are engaged 13 in the business of deriving any sales price or purchase 14 price subject to tax under this chapter to register with 15 the department. The director may also require a tax permit 16 applicable only to this chapter for any retailer not 17 collecting, or any user not paying, taxes under chapter 423. 18 3. Section 422.25, subsection 4, sections 422.30, 422.67, 19 and 422.68, section 422.69, subsection 1, sections 422.70, 20 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 21 1, and sections 423.23, 423.24, 423.25, 423.31 through 22 423.35, 423.37 through 423.42, and 423.47, consistent with 23 the provisions of this chapter, shall apply with respect to 24 the tax authorized under this chapter, in the same manner and 25 with the same effect as if the special mitigation excise taxes 26 were retail sales taxes within the meaning of those statutes. 27 Notwithstanding this subsection, the director shall provide for 28 monthly filing of returns and for other than monthly filing 29 of returns both as prescribed in section 423.31. All taxes 30 collected under this chapter by a retailer or any user are 31 deemed to be held in trust for the state of Iowa. 32 Sec. ___. NEW SECTION . 423H.5 Deposit of revenues. 33 All moneys received and all refunds shall be deposited in or 34 withdrawn from the general fund of the state. 35 -4- SF 574.2215 (2) 90 ko/jh 4/ 11

Sec. ___. NEW SECTION . 423H.6 Rules. 1 The department of revenue shall adopt rules pursuant to 2 chapter 17A to administer this chapter, including but not 3 limited to rules specifying the percentage of inputs in a 4 product or service that are necessary to constitute a product 5 or service subject to tax under this chapter. 6 DIVISION ___ 7 PEOPLE’S REPUBLIC OF CHINA —— PROHIBITION ON OWNING REAL 8 PROPERTY 9 Sec. ___. Section 9I.1, Code 2023, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 6. “Ultimate beneficial owner” shall mean 12 the natural person who ultimately controls or owns specific 13 real property, or on whose behalf a real property transaction 14 is conducted. 15 Sec. ___. Section 9I.2, Code 2023, is amended to read as 16 follows: 17 9I.2 Alien rights Real property —— nonresident aliens and 18 foreign governments . 19 1. A nonresident alien, foreign business or foreign 20 government may acquire , by grant, purchase, devise , or descent , 21 real property, except agricultural land or any interest in 22 agricultural land in this state, and may own, hold, devise , or 23 alienate the real property, and shall incur the same duties and 24 liabilities in relation thereto as a citizen and resident of 25 the United States. 26 2. Notwithstanding subsection 1, effective July 1, 2023, 27 the government of the People’s Republic of China shall not 28 acquire by grant, purchase, devise, or descent any real 29 property located in this state. 30 3. Notwithstanding subsection 1, effective July 1, 2023, 31 a corporation incorporated under the laws of the government 32 of the People’s Republic of China, or a business entity 33 whether or not incorporated, in which a majority interest 34 is owned directly or indirectly by nonresident aliens from 35 -5- SF 574.2215 (2) 90 ko/jh 5/ 11

the People’s Republic of China shall not acquire by grant, 1 purchase, devise, or descent any real property located in 2 this state. Legal entities, including but not limited to 3 trusts, holding companies, multiple corporations, and other 4 business arrangements, shall not affect the determination of 5 ownership or control of the foreign business. If a corporation 6 incorporated under the laws of the government of the People’s 7 Republic of China, or a business entity whether or not 8 incorporated, in which a majority interest is owned directly 9 or indirectly by nonresident aliens from the People’s Republic 10 of China owns or holds real property in this state on July 1, 11 2023, the corporation or business entity shall divest itself 12 of all right, title, and interest in the real property before 13 December 31, 2023. 14 4. Notwithstanding subsection 1, effective July 1, 2023, a 15 company or a person under the control of the communist party 16 of China shall not acquire by grant, purchase, devise, or 17 descent any real property located in this state. If a company 18 or a person under the control of the communist party of China 19 owns or holds real property in this state on July 1, 2023, the 20 company or person shall divest itself of all right, title, and 21 interest in the real property before December 31, 2023. 22 Sec. ___. Section 9I.3, Code 2023, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 5. a. Notwithstanding subsections 1, 2, 3, 25 and 4, the government of the People’s Republic of China shall 26 not purchase or otherwise acquire agricultural land in this 27 state. If the government of the People’s Republic of China 28 owns or holds agricultural land in this state on July 1, 2023, 29 the government of the People’s Republic of China shall divest 30 itself of all right, title, and interest in the agricultural 31 land before December 31, 2023. 32 b. Notwithstanding subsections 1, 2, 3, and 4, a corporation 33 incorporated under the laws of the government of the People’s 34 Republic of China, or a business entity whether or not 35 -6- SF 574.2215 (2) 90 ko/jh 6/ 11

incorporated, in which a majority interest is owned directly or 1 indirectly by nonresident aliens from the People’s Republic of 2 China shall not purchase or otherwise acquire agricultural land 3 in this state. If a corporation incorporated under the laws of 4 the government of the People’s Republic of China, or a business 5 entity whether or not incorporated, in which a majority 6 interest is owned directly or indirectly by nonresident aliens 7 from the People’s Republic of China owns or holds agricultural 8 land in this state on July 1, 2023, the corporation or business 9 entity shall divest itself of all right, title, and interest in 10 the agricultural land before December 31, 2023. 11 c. Notwithstanding subsections 1, 2, 3, and 4, a company 12 or a person under the control of the communist party of China 13 shall not purchase or otherwise acquire agricultural land in 14 this state. If a company or a person under the control of the 15 communist party of China owns or holds agricultural land in 16 this state on July 1, 2023, the company or person shall divest 17 itself of all right, title, and interest in the agricultural 18 land before December 31, 2023. 19 Sec. ___. Section 9I.5, Code 2023, is amended to read as 20 follows: 21 9I.5 Land acquired by devise or descent. 22 1. A nonresident alien, foreign business or foreign 23 government, or an agent, trustee or fiduciary thereof, which 24 acquires agricultural land or an interest in agricultural 25 land, by devise or descent after January 1, 1980, shall divest 26 itself of all right, title and interest in the land within two 27 years from the date of acquiring the land or interest. This 28 section shall not require divestment of agricultural land or an 29 interest in agricultural land, acquired by devise or descent 30 from a nonresident alien, if such land or an interest in such 31 land was acquired by any nonresident alien prior to July 1, 32 1979. 33 2. If the government of the People’s Republic of China, 34 acquired real property or an interest in real property by 35 -7- SF 574.2215 (2) 90 ko/jh 7/ 11

devise or descent on or before July 1, 2023, the government 1 of the People’s Republic of China shall divest itself of all 2 right, title, and interest in the land before December 31, 3 2023. 4 3. If a corporation incorporated under the laws of the 5 government of the People’s Republic of China, or a business 6 entity whether or not incorporated, in which a majority 7 interest is owned directly or indirectly by nonresident aliens 8 from the People’s Republic of China, acquired real property or 9 an interest in real property by devise or descent on or before 10 July 1, 2023, the corporation or business entity shall divest 11 itself of all right, title, and interest in the land before 12 December 31, 2023. 13 4. If a company or a person under the control of the 14 communist party of China acquired real property or an interest 15 in real property by devise or descent on or before July 1, 16 2023, the company or person shall divest itself of all right, 17 title, and interest in the agricultural land before December 18 31, 2023. 19 Sec. ___. Section 9I.6, Code 2023, is amended to read as 20 follows: 21 9I.6 Change of status —— divestment. 22 1. A person or business which purchases or otherwise 23 acquires agricultural land in this state except by devise or 24 descent, after January 1, 1980, and whose status changes so 25 that it becomes a foreign business or nonresident alien subject 26 to this chapter , shall divest itself of all right, title and 27 interest in the land within two years from the date that its 28 status changed. 29 2. A person or business which purchased or otherwise 30 acquired real property in this state except by devise or 31 descent, and whose status changed so that the person or 32 business is affiliated in any way with the government of the 33 People’s Republic of China or the communist party of China, 34 shall divest itself of all right, title, and interest in the 35 -8- SF 574.2215 (2) 90 ko/jh 8/ 11

land before December 31, 2023. 1 3. A person or business which purchased or otherwise 2 acquired real property in this state except by devise 3 or descent, and whose status changed so that the person 4 or business is affiliated in any way with a corporation 5 incorporated under the laws of the government of the People’s 6 Republic of China or the communist party of China, shall divest 7 itself of all right, title, and interest in the land before 8 December 31, 2023. 9 Sec. ___. Section 9I.10, Code 2023, is amended to read as 10 follows: 11 9I.10 Enforcement. 12 1. a. If the secretary of state finds that a nonresident 13 alien, foreign business, foreign government, or an agent, 14 trustee, or other fiduciary thereof, has acquired or holds 15 title to or interest in agricultural land in this state in 16 violation of this chapter or has failed to timely register as 17 required under section 9I.7 or has failed to timely report as 18 required under section 9I.8 , the secretary shall report the 19 violation to the attorney general. 20 b. If a county recorder finds that the government of the 21 People’s Republic of China has acquired or holds title to or 22 interest in real property located in this state in violation of 23 this chapter, the county recorder shall report the violation 24 to the attorney general. 25 c. If a county recorder finds that a corporation 26 incorporated under the laws of the government of the People’s 27 Republic of China, or a business entity whether or not 28 incorporated, in which a majority interest is owned directly 29 or indirectly by nonresident aliens from the People’s Republic 30 of China has acquired or holds title to or interest in real 31 property in this state in violation of this chapter, the county 32 recorder shall report the violation to the attorney general. 33 d. If a county recorder finds that a company or person under 34 the control of the communist party of China has acquired or 35 -9- SF 574.2215 (2) 90 ko/jh 9/ 11

holds title to or interest in real property in this state in 1 violation of this chapter, the county recorder shall report the 2 violation to the attorney general. 3 2. a. Upon receipt of the a report from the secretary of 4 state or a county recorder under subsection 1 , the attorney 5 general shall initiate an action in the district court of any 6 county in which the land is located. 7 3. b. The attorney general shall file a notice of the 8 pendency of the action with the recorder of deeds of each 9 county in which any of the land is located. If the court 10 finds that the land in question has been acquired or held in 11 violation of this chapter or the required registration has not 12 been timely filed, it shall enter an order so declaring and 13 shall file a copy of the order with the recorder of deeds of 14 each county in which any portion of the land is located. 15 Sec. ___. NEW SECTION . 9I.13 Ultimate beneficial owner —— 16 presumption. 17 If the ultimate beneficial owner of any real property 18 located in this state cannot be one hundred percent determined, 19 the presumption shall be that the real property is owned by a 20 resident of the People’s Republic of China. 21 Sec. ___. NEW SECTION . 9I.14 Foreign lands administration 22 tax. 23 Effective January 1, 2024, a monthly foreign lands 24 administrative tax of ten percent of the fair market value of 25 any real property in this state that is owned by a company or a 26 person under the control of the communist party of China, the 27 government of the People’s Republic of China, a corporation 28 incorporated under the laws of the government of the People’s 29 Republic of China, or a business entity whether or not 30 incorporated, in which a majority interest is owned directly 31 or indirectly by nonresident aliens from the People’s Republic 32 of China, or an ultimate beneficial owner under section 9I.13 33 shall be charged to the owner and shall be a lien on the real 34 property. 35 -10- SF 574.2215 (2) 90 ko/jh 10/ 11

Sec. ___. NEW SECTION . 9I.15 Tax sale. 1 Notwithstanding any law to the contrary, on December 2 1, 2024, the county treasurer of each county in which real 3 property is located on which the foreign lands administrative 4 tax under section 9I.14 is delinquent, shall offer such real 5 property at public sale pursuant to chapter 446. 6 Sec. ___. NEW SECTION . 9I.16 Treasurer of state —— 7 administrator of trust. 8 Notwithstanding any law to the contrary, on January 1, 2025, 9 any real property located in this state that is owned by a 10 company or a person under the control of the communist party 11 of China, the government of the People’s Republic of China, a 12 corporation incorporated under the laws of the government of 13 the People’s Republic of China, or a business entity whether 14 or not incorporated, in which a majority interest is owned 15 directly or indirectly by nonresident aliens from the People’s 16 Republic of China, or an ultimate beneficial owner under 17 section 9I.13, shall be placed in a trust administered by the 18 treasurer of state. The Iowa public employees’ retirement 19 system shall be the beneficiary of the trust. > 20 4. Title page, line 3, by striking < and providing penalties > 21 and inserting < establishing certain restrictions on specific 22 commercial activities, and providing penalties > 23 5. By renumbering as necessary. 24 ______________________________ THOMSON of Floyd -11- SF 574.2215 (2) 90 ko/jh 11/ 11 #4. #5.