Senate
File
580
-
Introduced
SENATE
FILE
580
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
571)
(SUCCESSOR
TO
SF
402)
A
BILL
FOR
An
Act
prohibiting
the
state
or
a
political
subdivision
of
the
1
state
from
entering
into
contracts
with,
or
providing
tax
2
incentives
or
specified
benefits
to,
certain
companies
that
3
censor
online
content,
and
including
effective
date
and
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
15A.1,
subsection
2,
Code
2021,
is
1
amended
by
adding
the
following
new
paragraphs:
2
NEW
PARAGRAPH
.
e.
Whether
a
court
has
found
by
a
3
preponderance
of
the
evidence
that
the
person
to
whom
the
funds
4
will
be
dispersed
has
violated
a
provision
of
chapter
554E.
5
NEW
PARAGRAPH
.
f.
Whether
the
person
to
whom
the
funds
will
6
be
dispersed
is
involved
in
litigation
in
which
it
has
been
7
alleged
that
the
person
has
violated
a
provision
of
chapter
8
554E.
9
Sec.
2.
Section
24.17,
subsection
2,
Code
2021,
is
amended
10
to
read
as
follows:
11
2.
a.
One
copy
of
the
budget
shall
be
retained
on
file
12
in
the
office
by
the
county
auditor
and
the
other
shall
be
13
certified
by
the
county
auditor
to
the
state
board.
The
14
department
of
management
shall
certify
the
taxes
back
to
the
15
county
auditor
by
June
15.
16
b.
For
budgets
for
fiscal
years
beginning
on
or
after
17
July
1,
2021,
if
a
political
subdivision
that
is
a
city,
18
county,
school
district,
or
township
has
been
found
to
have
19
intentionally
violated
a
provision
of
chapter
554E
during
the
20
twelve-month
period
prior
to
the
date
taxes
are
certified
back
21
to
the
county
auditor
under
paragraph
“a”
,
the
amount
of
the
22
political
subdivision’s
budget
certified
under
this
chapter
and
23
the
amount
of
taxes
certified
back
to
the
county
auditor
by
the
24
department
of
management,
including
any
amounts
received
as
25
replacement
taxes
under
chapter
437A
or
437B,
shall
be
reduced
26
by
ten
percent.
Once
a
political
subdivision
has
been
found
27
to
have
violated
a
provision
of
chapter
554E
and
the
amount
28
of
the
political
subdivision’s
budget
certified
under
this
29
chapter
and
the
amount
of
taxes
certified
back
to
the
county
30
auditor
by
the
department
of
management,
including
any
amounts
31
received
as
replacement
taxes
under
chapter
437A
or
437B,
have
32
been
reduced
by
ten
percent,
if
the
political
subdivision
fails
33
to
remedy
the
violation
of
chapter
554E
prior
to
January
31
of
34
any
subsequent
fiscal
year,
the
percentage
reduction
of
the
35
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political
subdivision’s
budget
certified
under
this
chapter
1
and
the
amount
of
taxes
certified
back
by
the
department
of
2
revenue,
including
any
amounts
received
as
replacement
taxes
3
under
chapter
437A
or
437B,
shall
be
reduced
by
a
percentage
4
equal
to
the
total
reduction
for
the
preceding
fiscal
year
plus
5
five
percent.
6
Sec.
3.
Section
331.433A,
subsection
4,
paragraph
a,
7
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
8
follows:
9
The
board
shall
set
a
time
and
place
for
a
public
hearing
10
on
the
resolution
before
the
date
for
adoption
of
the
11
resolution
and
shall
publish
notice
of
the
hearing
not
less
12
than
ten
nor
more
than
twenty
days
prior
to
the
hearing
in
the
13
county
newspapers
selected
under
chapter
349
.
If
the
county
14
has
an
internet
site,
the
notice
shall
also
be
posted
and
15
clearly
identified
on
the
county’s
internet
site
for
public
16
viewing
beginning
on
the
date
of
the
newspaper
publication.
17
Additionally,
if
the
county
maintains
a
social
media
account
18
on
one
or
more
social
media
applications,
the
public
hearing
19
notice
or
an
electronic
link
to
the
public
hearing
notice
20
shall
may
be
posted
on
each
such
account
on
the
same
day
as
21
the
publication
of
the
notice.
All
of
the
following
shall
be
22
included
in
the
notice:
23
Sec.
4.
Section
384.15A,
subsection
4,
paragraph
a,
24
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
25
follows:
26
The
council
shall
set
a
time
and
place
for
a
public
27
hearing
on
the
resolution
before
the
date
for
adoption
of
the
28
resolution
and
shall
publish
notice
of
the
hearing
not
less
29
than
ten
nor
more
than
twenty
days
prior
to
the
hearing
in
a
30
newspaper
published
at
least
once
weekly
and
having
general
31
circulation
in
the
city.
However,
if
the
city
has
a
population
32
of
two
hundred
or
less,
publication
may
be
made
by
posting
in
33
three
public
places
in
the
city.
If
the
city
has
an
internet
34
site,
the
notice
shall
also
be
posted
and
clearly
identified
35
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on
the
city’s
internet
site
for
public
viewing
beginning
on
1
the
date
of
the
newspaper
publication
or
public
posting,
as
2
applicable.
Additionally,
if
the
city
maintains
a
social
media
3
account
on
one
or
more
social
media
applications,
the
public
4
hearing
notice
or
an
electronic
link
to
the
public
hearing
5
notice
shall
may
be
posted
on
each
such
account
on
the
same
day
6
as
the
publication
of
the
notice.
All
of
the
following
shall
7
be
included
in
the
notice:
8
Sec.
5.
NEW
SECTION
.
554E.1
Definitions.
9
As
used
in
this
chapter,
unless
the
context
otherwise
10
requires:
11
1.
“Company”
means
and
includes
a
person
or
an
affiliate
of
12
a
person
who
owns
or
operates
any
of
the
following:
13
a.
A
massive
online
marketplace.
14
b.
A
massive
online
video
sharing
website.
15
c.
A
massive
social
networking
website.
16
d.
A
monopolistic
entity.
17
e.
A
pre-installed
application
store.
18
2.
“Content
generated
by
bots”
means
and
includes
content
19
that
is
created
or
posted
on
an
internet
site
by
a
software
20
application
or
program.
21
3.
“Excessively
violent
content”
means
any
image,
video,
22
or
other
content
that,
taking
the
material
as
a
whole
and
23
applying
contemporary
community
standards
with
respect
to
what
24
is
suitable
for
public
distribution,
meets
all
of
the
following
25
criteria:
26
a.
Depicts
or
involves
killing,
maiming,
dismembering,
or
27
sexually
assaulting
an
individual.
28
b.
Lacks
serious
literary,
scientific,
political,
or
29
artistic
value.
30
4.
“Expressive
merchandise”
means
and
includes
any
tangible
31
personal
property
that
contains
or
displays
a
viewpoint
that
32
constitutes
constitutionally
protected
speech.
33
5.
“Governmental
entity”
means
and
includes
all
of
the
34
following:
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a.
A
unit
of
state
government
in
the
executive,
legislative,
1
or
judicial
branch.
2
b.
A
political
subdivision
of
the
state,
including
a
city,
3
county,
township,
school
district,
and
any
other
governmental
4
entity
authorized
to
levy
taxes.
5
6.
“Intellectual
property”
means
a
commercially
valuable
6
product
of
the
human
intellect
in
a
concrete
or
abstract
form
7
that
is
protected
by
a
copyright,
trademark,
or
patent.
8
7.
“Internet
site”
means
the
same
as
defined
in
section
4.1.
9
8.
“Massive
online
marketplace”
means
and
includes
an
10
internet
site
that
meets
all
of
the
following
criteria:
11
a.
Offers
tangible
personal
property
for
sale
to
the
general
12
public.
13
b.
Sells
or
facilitates
the
sale
of
protected
publications
14
or
expressive
merchandise.
15
c.
Has
at
least
seventy-five
million
subscribers
or
members
16
in
the
United
States
in
the
calendar
year
before
the
date
a
17
court
has
found
by
a
preponderance
of
the
evidence
that
the
18
massive
online
marketplace
violated
this
chapter,
or
has
sold
19
goods
to
at
least
seventy-five
million
individuals
in
the
20
United
States
in
the
calendar
year
before
the
date
a
court
21
has
found
by
a
preponderance
of
the
evidence
that
the
massive
22
online
marketplace
has
violated
a
provision
of
this
chapter.
23
9.
“Massive
online
video
sharing
website”
means
and
includes
24
an
internet
site
that
meets
all
of
the
following
criteria:
25
a.
Allows
users
or
the
public
to
share
videos
with
other
26
users
or
the
public.
27
b.
Hosts,
stores,
provides,
or
otherwise
facilitates
access
28
by
individuals
in
the
United
States.
29
c.
Has
at
least
five
hundred
million
videos
available
at
any
30
point
in
time.
31
10.
“Massive
social
networking
website”
means
and
includes
32
an
internet
site
that
meets
all
of
the
following
criteria:
33
a.
Allows
users,
through
the
creation
of
pages
within
34
the
internet
site
or
profiles
or
by
other
means,
to
provide
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information
about
themselves
that
is
available
to
the
public
1
or
to
other
users.
2
b.
Allows
users
a
mechanism
for
communication
with
other
3
users.
4
c.
Has
at
least
twenty
million
subscribers
or
members
5
in
the
United
States
in
the
calendar
year
before
the
date
a
6
court
has
found
by
a
preponderance
of
the
evidence
that
the
7
massive
social
networking
website
has
violated
a
provision
8
of
this
chapter,
or
has
been
used
by
at
least
twenty
million
9
individuals
in
the
United
States
in
the
calendar
year
before
10
the
date
a
court
has
found
by
a
preponderance
of
the
evidence
11
that
the
massive
social
networking
website
has
violated
a
12
provision
of
this
chapter.
13
11.
“Monopolistic
entity”
means
a
person
who
owns
or
14
operates
a
social
networking
website,
a
person
who
owns
or
15
operates
an
internet
search
engine,
or
a
person
who
owns
or
16
operates
any
similar
internet
site
that
displays
content
to
its
17
users,
and
to
which
any
of
the
following
apply:
18
a.
The
person,
within
the
ten-year
period
preceding
the
date
19
a
court
has
found
by
a
preponderance
of
the
evidence
that
the
20
person
has
violated
a
provision
of
this
chapter,
has
been
found
21
to
have
violated
any
state
or
federal
antitrust
or
price-fixing
22
law.
23
b.
The
person
is
involved
in
litigation
in
which
the
24
office
of
the
attorney
general
has
alleged
that
the
person
has
25
violated
any
state
or
federal
antitrust
or
price-fixing
law.
26
12.
“Obscene
material”
means
any
material
depicting
or
27
describing
the
genitals,
sex
acts,
masturbation,
excretory
28
functions,
or
sadomasochistic
abuse
which
the
average
person,
29
taking
the
material
as
a
whole
and
applying
contemporary
30
community
standards
with
respect
to
what
is
suitable
material
31
for
minors,
would
find
appeals
to
the
prurient
interest
and
is
32
patently
offensive;
and
the
material,
taken
as
a
whole,
lacks
33
serious
literary,
scientific,
political,
or
artistic
value.
34
13.
“Person”
means
the
same
as
defined
in
section
4.1.
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14.
“Pornography”
means
and
includes
any
material
depicting
1
or
describing
erotic
behavior
that
is
intended
to
cause
sexual
2
excitement
which
the
average
person,
taking
the
material
as
a
3
whole
and
applying
contemporary
community
standards,
would
find
4
appeals
to
the
prurient
interest
and
is
patently
offensive;
5
and
the
material,
taken
as
a
whole,
lacks
serious
literary,
6
scientific,
political,
or
artistic
value.
7
15.
“Pre-installed
application
store”
means
and
includes
8
any
program,
application,
service,
or
mechanism
that
is
9
pre-installed
on
a
mobile
telephone
or
other
portable
10
electronic
communication
device
capable
of
being
used
to
write,
11
send,
or
view
an
electronic
message
that
meets
all
of
the
12
following
criteria:
13
a.
Facilitated
at
least
one
hundred
million
annual
downloads
14
of
programs
or
applications
by
individuals
in
the
United
15
States
in
the
calendar
year
before
the
date
a
court
has
found
16
by
a
preponderance
of
the
evidence
that
the
pre-installed
17
application
store
has
violated
a
provision
of
this
chapter.
18
b.
Facilitated
the
download
of
programs
or
applications
19
that
constitute
a
massive
online
marketplace,
massive
online
20
video
sharing
website,
or
massive
social
networking
website
21
in
the
calendar
year
before
the
date
a
court
has
found
by
22
a
preponderance
of
the
evidence
that
the
pre-installed
23
application
store
has
violated
a
provision
of
this
chapter.
24
16.
“Protected
publication”
means
and
includes
any
25
newspaper,
non-fiction
book,
periodical,
religious
text,
or
any
26
other
publication
that
contains
or
displays
a
viewpoint
that
27
constitutes
constitutionally
protected
speech.
28
17.
“Social
networking
website”
means
and
includes
an
29
internet
site
that
meets
all
of
the
following
criteria:
30
a.
Allows
users,
through
the
creation
of
pages
within
31
the
internet
site
or
profiles
or
by
other
means,
to
provide
32
information
about
themselves
that
is
available
to
the
public
33
or
to
other
users.
34
b.
Allows
users
a
mechanism
for
communication
with
other
35
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users.
1
Sec.
6.
NEW
SECTION
.
554E.2
Prohibition
on
censorship
——
2
ability
to
opt
out
of
certain
algorithms.
3
1.
a.
A
company
shall
not
intentionally
affect
the
ability
4
of
a
citizen
of
this
state
to
view,
comment,
or
otherwise
5
interact
with
a
United
States
citizen’s
content
on
the
6
company’s
internet
site
by
limiting,
blocking,
or
otherwise
7
restricting
any
content
on
the
company’s
internet
site
if
the
8
content
constitutes
constitutionally
protected
speech.
9
b.
A
company
shall
not
intentionally
restrict
the
ability
of
10
a
citizen
of
this
state
to
download
a
social
networking
website
11
on
a
pre-installed
application
store.
12
c.
A
company
shall
not
intentionally
restrict
the
ability
of
13
a
citizen
of
this
state
to
purchase
any
protected
publication
14
or
expressive
merchandise
on
a
massive
online
marketplace
15
if
similar
protected
publications
or
expressive
merchandise
16
were
allowed
for
sale
on
the
massive
online
marketplace
at
17
the
time
the
company
restricted
the
ability
of
a
citizen
of
18
this
state
to
purchase
the
protected
publication
or
expressive
19
merchandise.
20
2.
Notwithstanding
subsection
1,
a
company
may
do
any
of
the
21
following:
22
a.
Restrict
the
ability
of
a
citizen
of
this
state
to
23
view,
comment,
or
otherwise
interact
with
a
United
States
24
citizen’s
content
on
the
company’s
internet
site
if
the
25
content
is
criminal
in
nature,
if
the
content
does
not
26
constitute
constitutionally
protected
speech,
or
if
the
content
27
constitutes
any
of
the
following:
28
(1)
Obscene
material.
29
(2)
Excessively
violent
content.
30
(3)
Pornography.
31
(4)
Content
generated
by
bots.
32
(5)
Intellectual
property.
33
b.
Restrict
the
ability
of
a
citizen
of
this
state
to
34
download
a
social
networking
website
program
or
application
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from
a
pre-installed
application
store
if
the
social
networking
1
website
is
being
used
for
criminal
activity
and
the
social
2
networking
website
does
not
have
a
policy
in
place
to
require
3
its
employees
to
notify
law
enforcement
upon
receiving
a
4
complaint
or
otherwise
becoming
aware
of
the
criminal
activity
5
being
discussed
or
conducted
on
its
social
networking
website,
6
or
does
not
have
a
policy
in
place
to
require
its
employees
7
to
refer
the
complaint
or
existence
of
criminal
activity
to
8
designated
employees
that
carry
out
the
policy.
9
c.
Restrict
the
ability
of
a
citizen
of
this
state
to
10
download
a
social
networking
website
program
or
application
11
from
a
pre-installed
application
store
if,
within
sixty
days
12
of
the
restriction,
the
United
States
department
of
homeland
13
security
determines
the
social
networking
website
program
or
14
application
constitutes
a
national
security
threat.
15
3.
a.
A
company
shall
provide
its
subscribers,
members,
and
16
users
who
are
citizens
of
this
state
with
the
ability
to
opt
17
out
of
post
promoting
algorithms
and
shadow
banning
algorithms
18
on
the
company’s
massive
online
marketplace,
massive
online
19
video
sharing
website,
or
massive
social
networking
website.
20
b.
For
purposes
of
this
subsection:
21
(1)
“Post
promoting
algorithm”
means
and
includes
the
22
mechanism,
process,
or
set
of
rules
that
is
used
to
sort
the
23
content
that
is
visible
to
a
subscriber,
member,
or
user
based
24
on
data
or
information
possessed,
used,
or
controlled
by
a
25
company
which
relates
to
the
subscriber,
member,
or
user.
26
(2)
“Shadow
banning
algorithm”
means
and
includes
the
27
mechanism,
process,
or
set
of
rules
that
is
used
to
restrict
28
the
visibility
of
a
subscriber’s,
member’s,
or
user’s
content
29
to
other
subscribers,
members,
or
users
in
a
way
that
is
not
30
readily
apparent
to
the
subscriber,
member,
or
user
who
created
31
the
content.
32
Sec.
7.
NEW
SECTION
.
554E.3
Enforcement
——
companies.
33
1.
a.
A
court’s
finding
by
a
preponderance
of
the
evidence
34
that
a
company
has
violated
a
provision
of
this
chapter
shall
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be
conclusive
proof
of
the
company’s
breach
of
any
agreement
1
between
the
company
and
a
governmental
entity
in
effect
as
2
of
the
effective
date
of
this
Act
regarding
tax
credits;
3
assistance
under
section
15.335B;
sales
tax
exemptions
or
4
refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
5
including
but
not
limited
to
exemptions
under
chapter
427,
6
rebates,
refunds,
reimbursements,
or
grants
for
property
7
taxes
paid,
and
the
governmental
entity
shall
cancel
the
8
agreement
effective
as
of
the
date
of
the
court’s
finding
by
9
a
preponderance
of
the
evidence
that
a
company
has
violated
a
10
provision
of
this
chapter.
11
b.
A
court’s
finding
by
a
preponderance
of
the
evidence
12
that
a
company
has
violated
a
provision
of
this
chapter
shall
13
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
14
between
the
company
and
a
governmental
entity
entered
into
15
after
the
effective
date
of
this
Act
regarding
tax
credits;
16
assistance
under
section
15.335B;
sales
tax
exemptions
or
17
refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
18
including
but
not
limited
to
exemptions
under
chapter
427,
19
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
20
paid,
and
the
governmental
entity
shall
cancel
the
agreement
21
effective
as
of
the
date
of
the
court’s
finding.
22
2.
Notwithstanding
any
other
provision
of
law
to
the
23
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
24
evidence
that
a
company
has
violated
a
provision
of
this
25
chapter,
the
company
shall
be
prohibited
from
entering
into
26
any
future
agreement
with
a
governmental
entity
regarding
27
tax
credits;
assistance
under
section
15.335B;
sales
tax
28
exemptions
or
refunds
under
chapter
423;
or
property
tax
29
credits,
exemptions,
including
but
not
limited
to
exemptions
30
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
31
for
property
taxes
paid,
and
shall
be
prohibited
from
receiving
32
any
future
payments;
tax
credits;
assistance
under
section
33
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
34
property
tax
credits,
exemptions,
including
but
not
limited
to
35
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exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
1
or
grants
for
property
taxes
paid.
The
prohibition
provided
in
2
this
subsection
shall
begin
on
the
date
of
the
court’s
finding.
3
Except
as
provided
in
section
554E.7,
the
prohibition
shall
4
be
for
a
period
of
twenty
years.
The
twenty-year
prohibition
5
shall
be
reinstated
for
each
subsequent
finding
by
a
court
6
pursuant
to
this
subsection.
7
3.
Notwithstanding
any
other
provision
of
law
to
the
8
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
9
evidence
that
a
company
has
violated
a
provision
of
this
10
chapter
all
of
the
following
shall
apply:
11
a.
Tax
credits;
assistance
from
programs
and
funds
under
12
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
13
423;
or
property
tax
credits,
exemptions,
including
but
not
14
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
15
reimbursements,
or
grants
for
property
taxes
paid,
that
were
16
previously
claimed
by
the
company
shall
be
recaptured
or
17
terminated
by
the
governmental
entity.
The
recapture
or
18
termination
of
any
tax
credits;
assistance
under
section
19
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
20
property
tax
credits,
exemptions,
including
but
not
limited
to
21
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
22
or
grants
for
property
taxes
paid,
that
were
previously
claimed
23
by
the
company
pursuant
to
this
subsection
shall
supersede
24
any
agreement
previously
entered
into
with
the
governmental
25
entity.
Recapture
or
termination
pursuant
to
this
subsection
26
shall
be
accomplished
in
the
same
manner
as
provided
in
section
27
15.330,
subsection
2,
by
the
method
for
resolving
a
breach
28
described
in
the
agreement,
through
court
action,
or
any
other
29
means
determined
by
the
attorney
general
to
result
in
the
most
30
expeditious
recapture
or
termination
of
tax
credits;
assistance
31
under
section
15.335B;
sales
tax
exemptions
or
refunds
under
32
chapter
423;
or
property
tax
credits,
exemptions,
including
but
33
not
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
34
reimbursements,
or
grants
for
property
taxes
paid,
that
were
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previously
claimed
by
the
company.
1
b.
Payments
or
other
quantifiable
benefits
received
but
not
2
earned
by
the
company
shall
be
returned
to
the
governmental
3
entity.
4
4.
Upon
a
court’s
finding
by
a
preponderance
of
the
evidence
5
that
a
company
has
violated
a
provision
of
this
chapter,
the
6
prohibition
provided
in
subsection
1
and
the
return
of
received
7
but
not
earned
amounts
provided
in
subsection
3
shall
not
be
8
stayed
during
appeal
proceedings.
9
Sec.
8.
NEW
SECTION
.
554E.4
Inventory
of
agreements
with
10
companies
——
obligations.
11
1.
Within
thirty
days
following
the
effective
date
of
this
12
Act,
a
governmental
entity
shall
do
all
of
the
following:
13
a.
Conduct
a
review
of
currently
effective
agreements;
14
tax
credits;
assistance
under
section
15.335B;
sales
tax
15
exemptions
or
refunds
under
chapter
423;
or
property
tax
16
credits,
exemptions,
including
but
not
limited
to
exemptions
17
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
18
for
property
taxes
paid,
that
were
provided
by
the
governmental
19
entity
beginning
January
1,
2001,
through
the
effective
date
20
of
this
Act,
to
determine
if
any
agreements,
tax
credits;
21
assistance
under
section
15.335B;
sales
tax
exemptions
or
22
refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
23
including
but
not
limited
to
exemptions
under
chapter
427,
24
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
25
paid,
were
entered
into
with,
or
provided
to,
a
company.
26
b.
Provide
notice
to
a
company
on
the
form
provided
by
the
27
office
of
the
attorney
general
pursuant
to
subsection
3,
of
28
the
governmental
entity’s
rights
pursuant
to
section
554E.3
by
29
certified
mail
return
receipt
requested
if
the
governmental
30
entity
determines
pursuant
to
subsection
1
that
a
currently
31
effective
agreement;
tax
credit;
assistance
under
section
32
15.335B;
sales
tax
exemption
or
refund
under
chapter
423;
or
33
property
tax
credit,
exemption,
including
but
not
limited
to
34
an
exemption
under
chapter
427,
rebate,
refund,
reimbursement,
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or
grant
for
property
taxes
paid,
was
entered
into
with,
or
1
provided
to,
the
company
beginning
January
1,
2001,
through
the
2
effective
date
of
this
Act.
3
c.
Provide
the
office
of
the
attorney
general
with
copies
of
4
the
notice
and
receipt
of
delivery
provided
in
subsection
2.
5
d.
Nothing
in
this
subsection
shall
be
construed
to
6
provide
a
company
that
did
not
receive
notice
a
defense
to
7
a
suit
alleging
a
violation
of
this
chapter
or
a
defense
to
8
a
suit
alleging
the
company
breached
an
agreement
with
the
9
governmental
entity.
10
2.
A
governmental
entity
shall
include
all
of
the
following
11
in
agreements
to
which
it
is
a
party
entered
into
on
or
after
12
the
effective
date
of
this
Act:
13
a.
A
statement
summarizing
the
governmental
entity’s
14
enforcement
rights
under
section
554E.3
with
respect
to
15
agreements
related
to
tax
credits;
assistance
under
section
16
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
and
17
property
tax
credits,
exemptions,
including
but
not
limited
to
18
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
19
or
grants
for
property
taxes
paid.
20
b.
A
provision
stating
that
any
agreement
between
the
21
governmental
entity
and
a
company
subject
to
section
554E.3
22
that
does
not
relate
to
tax
credits;
assistance
under
section
23
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
24
property
tax
credits,
exemptions,
including
but
not
limited
to
25
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
26
or
grants
for
property
taxes
paid,
may
be
canceled
at
the
27
governmental
entity’s
discretion
within
ninety
days
after
a
28
court’s
finding
by
a
preponderance
of
the
evidence
that
the
29
company
has
violated
a
provision
of
this
chapter.
30
3.
The
office
of
the
attorney
general
shall
develop
and
31
provide
to
governmental
entities
a
form
to
be
used
for
the
32
notice
provided
in
subsection
2
within
seven
days
of
the
33
effective
date
of
this
Act.
34
Sec.
9.
NEW
SECTION
.
554E.5
Enforcement
——
governmental
35
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entities.
1
Notwithstanding
any
other
provision
of
law
to
the
contrary,
2
upon
a
court’s
finding
by
a
preponderance
of
the
evidence
3
that
a
governmental
entity
intentionally
violated
a
provision
4
of
this
chapter,
including
but
not
limited
to
by
making
5
payments
or
providing
tax
credits;
assistance
under
section
6
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
7
property
tax
credits,
exemptions,
including
but
not
limited
to
8
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
9
or
grants
for
property
taxes
paid,
in
violation
of
section
10
554E.3,
all
of
the
following
shall
apply:
11
1.
The
governmental
entity’s
certified
budget
and
amount
of
12
taxes
certified
shall
be
reduced
as
provided
in
section
24.17,
13
subsection
2,
paragraph
“b”
.
14
2.
If
the
governmental
entity
receives
an
appropriation,
15
the
governmental
entity’s
portion
of
each
appropriation
in
the
16
fiscal
year
of
the
court’s
finding
of
an
intentional
violation
17
shall
be
reduced
by
ten
percent.
If
the
governmental
entity
18
fails
to
remedy
the
violation
of
this
chapter
prior
to
the
19
beginning
of
the
subsequent
fiscal
year,
the
governmental
20
entity’s
portion
of
each
appropriation
made
by
the
general
21
assembly
for
the
subsequent
fiscal
year
shall
be
reduced
by
a
22
percentage
equal
to
the
percentage
reduction
for
the
preceding
23
fiscal
year
plus
five
percent.
All
appropriation
amounts
24
reduced
pursuant
to
this
section
shall
be
transferred
to
the
25
fund
from
which
they
were
appropriated.
26
Sec.
10.
NEW
SECTION
.
554E.6
Obligations
of
the
office
of
27
the
attorney
general.
28
1.
The
office
of
the
attorney
general
shall
enforce
29
the
provisions
of
this
chapter,
including
in
all
appeal
30
proceedings.
31
a.
The
office
of
the
attorney
general
shall
appeal
a
32
district
court’s
decision
if
a
company
prevails
in
the
district
33
court
in
an
action
under
this
chapter.
34
b.
The
office
of
the
attorney
general
shall
file
an
35
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application
for
further
review
with
the
supreme
court
if,
after
1
the
appeal
provided
in
paragraph
“a”
,
the
supreme
court
issues
2
an
order
of
transfer
and
transfers
the
case
to
the
court
of
3
appeals
and
the
company
prevails
in
the
action
before
the
court
4
of
appeals.
5
c.
When
an
appeal
is
taken
by
the
office
of
the
attorney
6
general,
the
office
shall
not
be
required
to
give
an
appeal
7
bond
or
security
for
costs.
8
2.
a.
Within
sixty
days
following
the
effective
date
9
of
this
Act,
the
office
of
the
attorney
general
shall
make
10
available
on
its
internet
site
a
system
to
allow
a
citizen
of
11
this
state
to
report
potential
violations
of
this
chapter
by
a
12
company
or
by
a
governmental
entity
to
the
office.
13
b.
The
system
required
pursuant
to
paragraph
“a”
shall
14
include
all
of
the
following:
15
(1)
A
mechanism
for
the
electronic
submission
of
16
photographs
or
other
evidence
of
a
company’s
potential
17
violation
of
this
chapter.
18
(2)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
19
number
of
complaints
received
by
the
office
of
the
attorney
20
general
related
to
the
number
of
potential
violations
of
this
21
chapter
by
companies
and
governmental
entities.
In
addition
22
to
the
current
year’s
accounting,
the
system
shall
display
23
annual
accountings
required
by
this
subparagraph
for
the
years
24
preceding
the
current
calendar
year.
25
(3)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
26
number
of
investigations
required
pursuant
to
subsections
3
27
and
4
in
which
the
office
of
the
attorney
general
determines
28
the
preponderance
of
the
evidence
indicates
that
a
company
29
or
governmental
entity
violated
this
chapter.
In
addition
30
to
the
current
year’s
accounting,
the
system
shall
display
31
annual
accountings
required
by
this
subparagraph
for
the
years
32
preceding
the
current
calendar
year.
33
(4)
A
list
of
the
companies
that
a
court
has
found
by
a
34
preponderance
of
the
evidence
have
violated
this
chapter.
35
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(5)
A
list
of
the
governmental
entities
that
a
court
has
1
found
by
a
preponderance
of
the
evidence
have
violated
this
2
chapter.
3
(6)
A
mechanism
to
ensure
that
the
person
submitting
the
4
report
is
a
citizen
of
this
state.
5
3.
Notwithstanding
subsection
5,
the
office
of
the
attorney
6
general
shall
complete
the
investigation
of
a
report
received
7
pursuant
to
subsection
2
within
sixty
days
of
the
receipt
8
of
the
report
if
the
report
included
a
photograph
or
other
9
evidence
that,
in
the
opinion
of
the
office,
indicates
a
10
company’s
potential
violation
of
this
chapter.
11
4.
The
office
of
the
attorney
general
shall
contact
a
person
12
who
submits
a
report
pursuant
to
subsection
2
related
to
a
13
company’s
potential
violation
of
this
chapter
that
did
not
14
contain
a
photograph
or
other
evidence
within
seven
days
of
15
the
receipt
of
the
report
and
inform
the
person
of
one
of
the
16
following:
17
a.
The
office
will
investigate
the
report,
in
which
case
the
18
office
shall
complete
the
investigation
within
sixty
days
of
19
the
receipt
of
the
report.
20
b.
The
person
has
thirty
days
to
provide
the
office
with
21
a
photograph
or
other
evidence
that
indicates
a
potential
22
violation
of
this
chapter,
in
which
case
the
office
shall
23
complete
the
investigation
within
sixty
days
of
the
receipt
of
24
the
photograph
or
other
evidence.
25
5.
a.
Upon
completion
of
an
investigation
or
investigations
26
in
which
the
office
of
the
attorney
general
determines
the
27
preponderance
of
the
evidence
indicates
that
a
company
or
28
governmental
entity
has
violated
this
chapter,
the
office
shall
29
file
suit
in
a
court
of
competent
jurisdiction
to
enforce
the
30
provisions
of
this
chapter.
31
b.
The
office
of
the
attorney
general
shall
file
suit
for
32
a
violation
of
this
chapter
every
four
years
from
the
date
of
33
the
most
recent
court’s
finding
if
the
office
determines
that
34
a
company
has
violated
this
chapter
at
any
point
during
the
35
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four-year
period
after
the
court’s
most
recent
finding.
1
c.
(1)
The
office
of
the
attorney
general
shall
file
suit
2
against
a
governmental
entity
that
has
previously
been
found
3
to
have
violated
a
provision
of
this
chapter
no
later
than
4
February
1
of
any
subsequent
fiscal
year
if
the
office
of
the
5
attorney
general
determines
that
the
governmental
entity
failed
6
to
remedy
a
prior
violation
of
this
chapter
prior
to
January
7
31
of
the
current
fiscal
year.
8
(2)
In
a
suit
filed
pursuant
to
this
paragraph,
the
sole
9
issue
before
the
court
shall
be
to
determine
whether
the
10
governmental
entity
has
remedied
a
prior
violation
of
this
11
chapter.
12
d.
The
office
of
the
attorney
general
may
join
all
claims
13
arising
from
investigations
under
this
subsection
against
a
14
company
or
governmental
entity
if
the
preponderance
of
the
15
evidence
indicates
that
the
company
or
governmental
entity
has
16
violated
this
chapter.
17
6.
a.
To
accomplish
the
objectives
and
to
carry
out
the
18
duties
prescribed
by
this
section,
the
office
of
the
attorney
19
general,
in
addition
to
other
powers
conferred
upon
the
office
20
of
the
attorney
general
by
this
section,
may
issue
subpoenas
to
21
any
person,
administer
an
oath
or
affirmation
to
any
person,
22
conduct
hearings
in
aid
of
any
investigation
or
inquiry,
and
23
prescribe
such
forms
as
may
be
necessary.
24
b.
Subject
to
paragraph
“c”
,
information,
documents,
25
testimony,
or
other
evidence
provided
to
the
office
of
the
26
attorney
general
by
a
person
pursuant
to
paragraph
“a”
,
or
27
provided
by
a
person
as
evidence
in
any
civil
action
brought
28
pursuant
to
this
section,
shall
not
be
admitted
in
evidence,
29
or
used
in
any
manner
whatsoever,
in
any
criminal
prosecution
30
or
forfeiture
proceeding
against
that
person.
If
a
criminal
31
prosecution
or
forfeiture
proceeding
is
initiated
in
a
state
32
court
against
a
person
who
has
provided
information
pursuant
to
33
paragraph
“a”
,
the
state
shall
have
the
burden
of
proof
that
the
34
information
provided
was
not
used
in
any
manner
to
further
the
35
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criminal
investigation,
prosecution,
or
forfeiture
proceeding.
1
c.
Paragraph
“b”
does
not
apply
unless
the
person
has
first
2
asserted
a
right
against
self-incrimination
and
the
office
of
3
the
attorney
general
has
elected
to
provide
the
person
with
a
4
written
statement
that
the
information,
documents,
testimony,
5
or
other
evidence
at
issue
are
subject
to
paragraph
“b”
.
After
6
a
person
has
been
provided
with
such
a
written
statement
by
the
7
office
of
the
attorney
general,
a
claim
of
privilege
against
8
self-incrimination
is
not
a
defense
to
any
action
or
proceeding
9
to
obtain
the
information,
documents,
testimony,
or
other
10
evidence.
The
limitation
on
the
use
of
evidence
in
a
criminal
11
proceeding
contained
in
this
section
does
not
apply
to
any
12
prosecution
or
proceeding
for
perjury
or
contempt
of
court
13
committed
in
the
course
of
the
giving
or
production
of
the
14
information,
documents,
testimony,
or
other
evidence.
15
7.
Service
by
the
office
of
the
attorney
general
of
any
16
notice
requiring
a
person
to
file
a
statement
or
report,
or
of
17
a
subpoena
upon
any
person,
shall
be
made
personally
within
18
this
state,
but
if
such
cannot
be
obtained,
substituted
service
19
may
be
made
in
any
of
the
following
ways:
20
a.
Personal
service
thereof
without
this
state.
21
b.
The
mailing
thereof
by
registered
mail
to
the
last
known
22
place
of
business,
residence,
or
abode
within
or
without
this
23
state
of
such
person
for
whom
the
same
is
intended.
24
c.
As
to
any
person
other
than
a
natural
person,
in
the
25
manner
provided
in
the
rules
of
civil
procedure
as
if
a
26
petition
had
been
filed.
27
d.
Such
service
as
a
district
court
may
direct
in
lieu
of
28
personal
service
within
this
state.
29
8.
If
a
person
fails
or
refuses
to
file
a
statement
or
30
report,
or
obey
any
subpoena
issued
by
the
office
of
the
31
attorney
general,
the
office
of
the
attorney
general
may,
after
32
notice,
apply
to
the
Polk
county
district
court
or
the
district
33
court
for
the
county
in
which
the
person
resides
or
is
located
34
and,
after
hearing,
request
an
order
that
provides
for
any
of
35
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the
following:
1
a.
A
grant
of
injunctive
relief,
restraining
the
sale
or
2
advertisement
of
any
merchandise
by
such
persons.
3
b.
The
dissolution
of
a
corporation
created
by
or
under
the
4
laws
of
this
state
or
revoking
or
suspending
the
certificate
of
5
authority
to
do
business
in
this
state
of
a
foreign
corporation
6
or
revoking
or
suspending
any
other
licenses,
permits,
or
7
certificates
issued
pursuant
to
law
to
such
person
which
are
8
used
to
further
the
allegedly
unlawful
practice.
9
c.
A
grant
of
such
other
relief
as
may
be
required
until
the
10
person
files
the
statement
or
report,
or
obeys
the
subpoena.
11
9.
a.
The
office
of
the
attorney
general
shall
notify
the
12
department
of
management
upon
a
court’s
initial
finding
by
a
13
preponderance
of
the
evidence
that
a
governmental
entity
has
14
intentionally
violated
a
provision
of
this
chapter,
including
15
in
a
suit
filed
pursuant
to
section
554E.8,
subsection
3.
16
b.
The
office
of
the
attorney
general
shall
notify
the
17
department
of
management
no
later
than
June
1
of
any
subsequent
18
fiscal
year
if
a
governmental
entity
fails
to
remedy
the
19
violation
of
chapter
554E
prior
to
January
31
of
the
current
20
fiscal
year.
21
10.
All
records
provided
to
the
office
of
the
attorney
22
general
pursuant
to
this
section
shall
be
kept
confidential
and
23
are
not
subject
to
chapter
22.
24
Sec.
11.
NEW
SECTION
.
554E.7
Petition
for
stay.
25
1.
No
sooner
than
four
years
after
a
court’s
finding
that
26
a
company
violated
a
provision
of
this
chapter
pursuant
to
27
section
554E.3,
the
company
may
petition
the
court
for
a
stay
28
of
the
provisions
of
section
554E.3,
subsection
1.
29
2.
At
the
time
the
company
petitions
the
court
for
a
stay
30
pursuant
to
subsection
1,
the
company
shall
file
with
the
court
31
a
bond
payable
to
the
state
in
an
amount
deemed
necessary
by
32
the
office
of
the
attorney
general.
33
3.
Within
thirty
days
after
a
company
files
a
petition
for
34
a
stay
pursuant
to
subsection
1,
the
office
of
the
attorney
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general
shall
file
with
the
court
a
statement
indicating
any
1
reports
received
under
section
554E.6,
subsection
2,
related
2
to
the
company
from
the
date
of
the
court’s
finding
that
3
the
company
violated
a
provision
of
this
chapter
pursuant
to
4
section
554E.3
through
the
date
the
company
filed
the
petition
5
for
a
stay.
6
4.
The
court
shall
grant
the
petition
for
stay
filed
7
pursuant
to
subsection
1
if
it
finds
that
the
company
did
not
8
violate
the
provisions
of
this
chapter
from
the
date
of
the
9
court’s
finding
that
the
company
violated
a
provision
of
this
10
chapter
pursuant
to
section
554E.3
through
the
date
the
company
11
filed
the
petition
for
a
stay.
12
a.
Beginning
one
year
after
the
court
grants
the
petition
13
for
stay
pursuant
to
this
subsection,
the
company
shall
14
annually
file
with
the
court
an
additional
bond
in
the
amount
15
of
any
payments;
tax
credits;
assistance
under
section
16
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
17
property
tax
credits,
exemptions,
including
but
not
limited
to
18
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
19
or
grants
for
property
taxes
paid,
which
the
company
received
20
from
the
state
during
the
previous
year.
21
b.
A
governmental
entity
shall
not
provide
the
company
22
with
any
tax
credits;
assistance
under
section
15.335B;
sales
23
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
24
credits,
exemptions,
including
but
not
limited
to
exemptions
25
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
26
for
property
taxes
paid,
until
the
company
has
satisfied
the
27
requirements
in
paragraph
“a”
for
the
previous
year.
28
5.
The
company
shall
be
permanently
prohibited
from
29
entering
into
any
agreement
with
a
governmental
entity
30
regarding
tax
credits;
assistance
under
section
15.335B;
sales
31
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
32
credits,
exemptions,
including
but
not
limited
to
exemptions
33
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
34
for
property
taxes
paid,
and
shall
be
permanently
prohibited
35
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from
receiving
from
a
governmental
entity
any
payments;
tax
1
credits;
assistance
under
section15.335B;
sales
tax
exemptions
2
or
refunds
under
chapter
423;
or
property
tax
credits,
3
exemptions,
including
but
not
limited
to
exemptions
under
4
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
for
5
property
taxes
paid,
if
the
company
violates
a
provision
of
6
this
chapter
after
a
court
has
granted
the
company’s
petition
7
for
stay
pursuant
to
this
section
and
before
the
end
of
the
8
twenty-year
prohibition
provided
in
section
554E.3,
subsection
9
1.
10
6.
The
amount
of
any
bond
forfeited
under
this
section
shall
11
be
deposited
in
the
general
fund
of
the
state.
12
7.
A
company
shall
not
file
more
than
one
petition
for
13
a
stay
of
the
provisions
of
section
554E.3,
subsection
1,
14
during
the
twenty-year
prohibition
provided
in
section
554E.3,
15
subsection
1.
16
8.
Nothing
in
this
section
shall
be
construed
to
limit
the
17
authority
of
the
office
of
the
attorney
general
under
section
18
554E.6
to
investigate
potential
violations
of
this
chapter
or
19
file
suit
to
enforce
the
provisions
of
this
chapter.
20
Sec.
12.
NEW
SECTION
.
554E.8
Right
to
intervene
——
21
enforcement
by
citizens
of
this
state.
22
1.
A
governmental
entity
impacted
by
an
action
under
this
23
chapter
may
intervene
in
any
action
under
this
chapter.
24
2.
A
citizen
of
this
state
who
has
reported
a
company’s
25
potential
violation
of
this
chapter
pursuant
to
section
554E.6
26
may
intervene
in
any
action
related
to
the
company
under
this
27
chapter.
28
3.
Notwithstanding
section
554E.6,
subsection
1,
a
citizen
29
of
this
state
who
has
reported
a
company’s
potential
violation
30
of
this
chapter
pursuant
to
section
554E.6
may
file
suit
in
a
31
court
of
competent
jurisdiction
to
enforce
the
provisions
of
32
this
chapter
if
the
company
is
not
currently
subject
to
the
33
prohibition
provided
in
section
554E.3,
subsection
2,
and
if
34
the
company’s
potential
violation
of
this
chapter
occurred
at
35
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least
thirty
days
following
the
effective
date
of
this
Act.
1
Sec.
13.
NEW
SECTION
.
554E.9
Rules.
2
The
office
of
the
attorney
general
shall
adopt
rules
3
pursuant
to
chapter
17A
to
administer
and
interpret
this
4
chapter.
5
Sec.
14.
TRANSITIONAL
COMPLAINT
REPORTING
SYSTEM.
Within
6
thirty
days
following
the
effective
date
of
this
Act,
and
until
7
fifty-nine
days
following
the
effective
date
of
this
Act,
the
8
office
of
the
attorney
general
shall
make
available
on
its
9
internet
site
a
transitional
system
to
allow
a
citizen
of
10
this
state
to
report
potential
violations
of
chapter
554E
by
11
a
company
or
a
governmental
entity
to
the
office.
The
system
12
shall
include,
at
a
minimum,
a
mechanism
for
the
electronic
13
submission
of
reports
of
potential
violations
of
chapter
554E
14
and
the
electronic
evidence
associated
with
the
potential
15
violations.
16
Sec.
15.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
17
3,
shall
not
apply
to
this
Act.
18
Sec.
16.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
19
immediate
importance,
takes
effect
upon
enactment.
20
Sec.
17.
APPLICABILITY.
This
Act
applies
to
agreements
21
between
a
company
and
a
governmental
entity
in
effect
or
22
entered
into
on
or
after
the
effective
date
of
this
Act.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
prohibits
the
state
or
political
subdivisions
of
27
the
state
from
entering
into
contracts
with,
or
providing
tax
28
incentives
or
other
specified
benefits
to,
certain
companies
29
that
censor
online
content.
30
The
bill
requires
that,
before
public
funds
are
used
for
31
economic
development,
the
public
body
dispensing
the
public
32
funds
shall
consider
whether
a
court
has
found
that
the
person
33
to
whom
the
funds
will
be
dispersed
has
violated
a
provision
34
of
new
Code
chapter
554E,
and
whether
the
person
is
involved
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in
litigation
in
which
it
has
been
alleged
that
the
person
1
violated
Code
chapter
554E.
2
The
bill
modifies
Code
section
24.17
to
provide
that,
for
3
fiscal
years
beginning
on
or
after
July
1,
2021,
if
a
political
4
subdivision
has
been
found
to
have
violated
new
Code
chapter
5
554E
during
the
12-month
period
prior
to
the
date
taxes
are
6
certified,
the
amount
of
the
political
subdivision’s
budget
7
certified
under
Code
chapter
24
and
the
amount
of
taxes
8
certified
back
to
the
county
auditor
by
the
department
of
9
management
shall
be
reduced
as
described
in
the
bill.
10
Current
law
requires
a
county
board
of
supervisors
and
a
11
city
council
to
post
a
public
hearing
notice
on
the
board’s
or
12
council’s
social
media
account.
The
bill
provides
that
posting
13
of
the
public
hearing
notice
is
authorized
but
not
required.
14
The
bill
establishes
new
Code
chapter
554E.
The
bill
15
adds
several
defined
terms
to
the
Code
chapter,
including
16
definitions
for
“company”,
“content
generated
by
bots”,
17
“excessively
violent
content”,
“expressive
merchandise”,
18
“governmental
entity”,
“intellectual
property”,
“internet
19
site”,
“massive
online
marketplace”,
“massive
online
video
20
sharing
website”,
“massive
social
networking
website”,
21
“monopolistic
entity”,
“obscene
material”,
“pornography”,
22
“pre-installed
application
store”,
and
“social
networking
23
website”.
24
The
bill
prohibits
a
company
from
intentionally
affecting
25
the
ability
of
a
citizen
of
this
state
to
view,
comment,
or
26
otherwise
interact
with
certain
content
on
the
company’s
27
internet
site
by
restricting
such
content.
28
The
bill
prohibits
a
company
from
intentionally
affecting
29
the
ability
of
a
citizen
of
this
state
to
interact
with
30
certain
content
on
the
company’s
internet
site,
restricting
31
the
ability
of
a
citizen
of
this
state
to
download
a
social
32
networking
website
on
a
pre-installed
application
store,
or
33
restricting
the
ability
of
a
citizen
of
this
state
to
purchase
34
any
protected
publication
or
expressive
merchandise
on
a
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massive
online
marketplace
as
prescribed
in
the
bill.
The
bill
1
provides,
however,
that
a
company
may
restrict
the
ability
2
of
a
citizen
of
this
state
to
interact
with
a
United
States
3
citizen’s
content
on
the
company’s
internet
site
in
certain
4
enumerated
cases.
5
The
bill
requires
a
company
to
provide
its
subscribers,
6
members,
and
users
who
are
citizens
of
this
state
with
7
the
ability
to
opt
out
of
post
promoting
algorithms
and
8
shadow
banning
algorithms
on
the
company’s
massive
online
9
marketplace,
massive
online
video
sharing
website,
or
massive
10
social
networking
website.
The
bill
defines
“post
promoting
11
algorithm”
and
“shadow
banning
algorithm”.
12
The
bill
provides
that
a
court’s
finding
that
a
company
has
13
violated
the
prohibition
on
censorship
shall
be
conclusive
14
proof
of
the
company’s
breach
of
any
agreement
between
the
15
company
and
a
governmental
entity,
and
the
governmental
entity
16
shall
cancel
the
agreement
effective
as
of
the
date
described
17
in
the
bill.
18
The
bill
provides
that,
upon
a
court’s
finding
that
a
19
company
has
violated
this
prohibition
on
censorship,
the
20
company
shall
be
prohibited
from
entering
into
any
future
21
agreement
with
a
governmental
entity
and
shall
be
prohibited
22
from
receiving
any
future
payment
from
a
governmental
entity.
23
The
bill
establishes
that
this
begins
on
the
date
of
the
24
court’s
finding
and
shall
extend
for
a
period
of
20
years,
25
unless
a
stay
is
granted
pursuant
to
the
terms
of
Code
section
26
554E.7.
Additionally,
the
bill
establishes
that
this
20-year
27
prohibition
shall
be
reinstated
for
each
subsequent
finding
by
28
a
court
that
a
company
violated
the
prohibition
on
censorship.
29
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
30
has
violated
the
prohibition
on
censorship,
tax
credits;
31
assistance
under
Code
section
15.335B;
sales
tax
exemptions
or
32
refunds;
or
property
tax
rebates,
refunds,
reimbursements,
or
33
grants
for
property
taxes
paid,
that
were
previously
claimed
by
34
the
company
shall
be
recaptured
as
provided
in
the
bill.
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The
bill
provides
that
the
prohibition
on
entering
into
any
1
agreement
with
a
governmental
entity
and
the
requirement
that
2
unearned
amounts
be
returned
to
governmental
entities
shall
not
3
be
stayed
during
appeal
proceedings.
4
The
bill
requires
a
governmental
entity
to
take
certain
5
enumerated
steps
with
respect
to
companies
it
may
have
6
agreements
with
within
30
days
of
the
effective
date
of
the
7
bill.
The
bill
also
requires
a
governmental
entity
to
include
8
in
its
contracts
certain
statements
and
provisions
related
to
9
the
governmental
entity’s
enforcement
rights
under
Code
section
10
554E.3.
The
bill
requires
the
office
of
the
attorney
general
11
to
develop
a
form
describing
these
enforcement
rights
within
12
seven
days
of
the
effective
date
of
the
bill.
13
The
bill
provides
that
if
a
governmental
entity
14
intentionally
violates
Code
chapter
554E,
certain
financial
15
penalties
will
apply.
16
The
bill
requires
the
attorney
general
to
enforce
the
17
provisions
of
Code
chapter
554E.
The
bill
requires
the
18
attorney
general
to
appeal
a
district
court’s
decision
if
a
19
company
prevails
in
the
district
court
in
an
action
under
Code
20
chapter
554E.
Additionally,
the
bill
requires
the
attorney
21
general
to
file
an
application
for
further
review
with
the
22
supreme
court
if,
after
the
first
appeal,
the
supreme
court
23
transfers
the
case
to
the
court
of
appeals
and
the
company
24
prevails
in
the
action
before
the
court
of
appeals.
25
The
bill
provides
that,
within
60
days
of
the
effective
26
date
of
the
bill,
the
attorney
general
shall
make
available
on
27
its
internet
site
a
system
to
allow
a
citizen
of
this
state
to
28
report
potential
violations
of
Code
chapter
554E
by
a
company
29
or
by
a
governmental
entity.
The
bill
requires
this
system
30
to
include
several
features.
The
bill
establishes
certain
31
investigative
responsibilities
of
the
attorney
general
with
32
respect
to
reports
submitted
through
this
system.
33
The
bill
requires
the
attorney
general
to
file
suit
in
a
34
court
of
competent
jurisdiction
to
enforce
the
provisions
of
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the
Code
chapter,
and
the
bill
establishes
when
the
attorney
1
general
shall
file
suit.
The
bill
provides
the
attorney
2
general
with
certain
enumerated
powers.
Additionally,
the
3
bill
requires
the
attorney
general
to
notify
the
department
of
4
management
regarding
the
outcome
of
cases
arising
under
the
5
Code
chapter.
The
bill
provides
that
all
records
provided
to
6
the
attorney
general
under
Code
section
554E.6
shall
be
kept
7
confidential
and
are
not
subject
to
Code
chapter
22.
8
The
bill
authorizes
companies
that
have
been
found
to
have
9
violated
a
provision
of
Code
chapter
554E
to
petition
the
court
10
for
a
stay
of
the
provisions
of
the
Code
chapter.
The
bill
11
prescribes
when
this
petition
may
be
filed,
how
many
petitions
12
may
be
filed,
bonding
requirements,
statements
that
the
13
attorney
general
must
file,
when
a
court
may
grant
the
stay,
14
and
what
occurs
in
the
event
a
company
violates
the
provisions
15
of
this
Code
chapter
again
after
a
stay
has
been
granted.
16
The
bill
establishes
that
governmental
entities
impacted
by
17
an
action
under
Code
chapter
554E
may
intervene
in
an
action
18
under
the
Code
chapter.
Additionally,
the
bill
establishes
19
that
a
citizen
of
this
state
who
has
reported
a
company’s
20
violation
of
the
bill
to
the
attorney
general
may
intervene
21
in
any
action
related
to
that
company
under
the
Code
chapter.
22
The
bill
authorizes
a
citizen
of
this
state
who
has
reported
23
a
company’s
violation
of
the
bill
to
file
suit
to
enforce
the
24
provisions
of
the
Code
chapter
if
the
company
is
not
currently
25
subject
to
the
prohibition
provided
in
Code
section
554E.3,
26
subsection
2,
and
if
the
company’s
potential
violation
of
the
27
Code
chapter
occurred
at
least
30
days
following
the
effective
28
date
of
the
bill.
29
The
bill
may
include
a
state
mandate
as
defined
in
Code
30
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
31
subsection
3,
which
would
relieve
a
political
subdivision
from
32
complying
with
a
state
mandate
if
funding
for
the
cost
of
33
the
state
mandate
is
not
provided
or
specified.
Therefore,
34
political
subdivisions
are
required
to
comply
with
any
state
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mandate
included
in
the
bill.
1
The
bill
authorizes
the
attorney
general
to
adopt
rules
to
2
administer
and
interpret
Code
chapter
554E.
3
The
bill
requires
the
attorney
general
to
create
a
4
transitional
reporting
system
within
30
days
following
the
5
effective
date
of
the
bill
that
will
operate
until
59
days
6
following
the
effective
date
of
the
bill.
The
bill
requires
7
the
transitional
reporting
system
to
include,
at
a
minimum,
a
8
mechanism
for
the
electronic
submission
of
reports
of
potential
9
violations
of
chapter
554E
and
the
electronic
evidence
10
associated
with
the
potential
violations.
11
The
bill
takes
effect
upon
enactment
and
applies
to
12
agreements
between
a
company
and
a
governmental
entity
in
13
effect
or
entered
into
on
or
after
the
effective
date
of
the
14
bill.
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