House File 451 - Introduced HOUSE FILE 451 BY STONE 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 TLSB 2701YH (3) 91 dg/jh

H.F. 451 Section 1. Section 15A.1, subsection 2, Code 2025, 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 disbursed has violated a provision of chapter 554I. 5 NEW PARAGRAPH . f. Whether the person to whom the funds will 6 be disbursed is involved in litigation in which it has been 7 alleged that the person has violated a provision of chapter 8 554I. 9 Sec. 2. Section 24.17, subsection 2, Code 2025, 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, 2025, 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 554I 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 554I 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 554I prior to January 31 of 34 any subsequent fiscal year, the percentage reduction of the 35 -1- LSB 2701YH (3) 91 dg/jh 1/ 25

H.F. 451 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. NEW SECTION . 554I.1 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Company” means and includes a person or an affiliate of 10 a person who owns or operates any of the following: 11 a. A massive online marketplace. 12 b. A massive online video sharing website. 13 c. A massive social networking website. 14 d. A monopolistic entity. 15 e. A pre-installed application store. 16 2. “Content generated by bots” means and includes content 17 that is created or posted on an internet site by a software 18 application or program. 19 3. “Excessively violent content” means any image, video, 20 or other content that, taking the material as a whole and 21 applying contemporary community standards with respect to what 22 is suitable for public distribution, meets all of the following 23 criteria: 24 a. Depicts or involves killing, maiming, dismembering, or 25 sexually assaulting an individual. 26 b. Lacks serious literary, scientific, political, or 27 artistic value. 28 4. “Expressive merchandise” means and includes any tangible 29 personal property that contains or displays a viewpoint that 30 constitutes constitutionally protected speech. 31 5. “Governmental entity” means and includes all of the 32 following: 33 a. A unit of state government in the executive, legislative, 34 or judicial branch. 35 -2- LSB 2701YH (3) 91 dg/jh 2/ 25

H.F. 451 b. A political subdivision of the state, including a city, 1 county, township, school district, and any other governmental 2 entity authorized to levy taxes. 3 6. “Intellectual property” means a commercially valuable 4 product of the human intellect in a concrete or abstract form 5 that is protected by a copyright, trademark, or patent. 6 7. “Massive online marketplace” means and includes an 7 internet site that meets all of the following criteria: 8 a. Offers tangible personal property for sale to the general 9 public. 10 b. Sells or facilitates the sale of protected publications 11 or expressive merchandise. 12 c. Has at least seventy-five million subscribers or members 13 in the United States in the calendar year before the date a 14 court has found by a preponderance of the evidence that the 15 massive online marketplace violated this chapter, or has sold 16 goods to at least seventy-five million individuals in the 17 United States in the calendar year before the date a court 18 has found by a preponderance of the evidence that the massive 19 online marketplace has violated a provision of this chapter. 20 8. “Massive online video sharing website” means and includes 21 an internet site that meets all of the following criteria: 22 a. Allows users or the public to share videos with other 23 users or the public. 24 b. Hosts, stores, provides, or otherwise facilitates access 25 by individuals in the United States. 26 c. Has at least five hundred million videos available at any 27 point in time. 28 9. “Massive 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 -3- LSB 2701YH (3) 91 dg/jh 3/ 25

H.F. 451 users. 1 c. Has at least twenty million subscribers or members 2 in the United States in the calendar year before the date a 3 court has found by a preponderance of the evidence that the 4 massive social networking website has violated a provision 5 of this chapter, or has been used by at least twenty million 6 individuals in the United States in the calendar year before 7 the date a court has found by a preponderance of the evidence 8 that the massive social networking website has violated a 9 provision of this chapter. 10 10. “Monopolistic entity” means a person who owns or 11 operates a social networking website, a person who owns or 12 operates an internet search engine, or a person who owns or 13 operates any similar internet site that displays content to its 14 users, and to which any of the following apply: 15 a. The person, within the ten-year period preceding the date 16 a court has found by a preponderance of the evidence that the 17 person has violated a provision of this chapter, has been found 18 to have violated any state or federal antitrust or price-fixing 19 law. 20 b. The person is involved in litigation in which the 21 office of the attorney general has alleged that the person has 22 violated any state or federal antitrust or price-fixing law. 23 11. “Obscene material” means any material depicting or 24 describing the genitals, sex acts, masturbation, excretory 25 functions, or sadomasochistic abuse which the average person, 26 taking the material as a whole and applying contemporary 27 community standards with respect to what is suitable material 28 for minors, would find appeals to the prurient interest and is 29 patently offensive; and the material, taken as a whole, lacks 30 serious literary, scientific, political, or artistic value. 31 12. “Pornography” means and includes any material depicting 32 or describing erotic behavior that is intended to cause sexual 33 excitement which the average person, taking the material as a 34 whole and applying contemporary community standards, would find 35 -4- LSB 2701YH (3) 91 dg/jh 4/ 25

H.F. 451 appeals to the prurient interest and is patently offensive; 1 and the material, taken as a whole, lacks serious literary, 2 scientific, political, or artistic value. 3 13. “Pre-installed application store” means and includes 4 any program, application, service, or mechanism that is 5 pre-installed on a mobile telephone or other portable 6 electronic communication device capable of being used to write, 7 send, or view an electronic message that meets all of the 8 following criteria: 9 a. Facilitated at least one hundred million annual downloads 10 of programs or applications by individuals in the United 11 States in the calendar year before the date a court has found 12 by a preponderance of the evidence that the pre-installed 13 application store has violated a provision of this chapter. 14 b. Facilitated the download of programs or applications 15 that constitute a massive online marketplace, massive online 16 video sharing website, or massive social networking website 17 in the calendar year before the date a court has found by a 18 preponderance of the evidence that the preinstalled application 19 store has violated a provision of this chapter. 20 14. “Protected publication” means and includes any 21 newspaper, nonfiction book, periodical, religious text, or any 22 other publication that contains or displays a viewpoint that 23 constitutes constitutionally protected speech. 24 15. “Social networking website” means and includes an 25 internet site that meets all of the following criteria: 26 a. Allows users, through the creation of pages within 27 the internet site or profiles or by other means, to provide 28 information about themselves that is available to the public 29 or to other users. 30 b. Allows users a mechanism for communication with other 31 users. 32 Sec. 4. NEW SECTION . 554I.2 Prohibition on censorship —— 33 ability to opt out of certain algorithms. 34 1. a. A company shall not intentionally affect the ability 35 -5- LSB 2701YH (3) 91 dg/jh 5/ 25

H.F. 451 of a citizen of this state to view, comment, or otherwise 1 interact with a United States citizen’s content on the 2 company’s internet site by limiting, blocking, or otherwise 3 restricting any content on the company’s internet site if the 4 content constitutes constitutionally protected speech. 5 b. A company shall not intentionally restrict the ability of 6 a citizen of this state to download a social networking website 7 on a pre-installed application store. 8 c. A company shall not intentionally restrict the ability of 9 a citizen of this state to purchase any protected publication 10 or expressive merchandise on a massive online marketplace 11 if similar protected publications or expressive merchandise 12 were allowed for sale on the massive online marketplace at 13 the time the company restricted the ability of a citizen of 14 this state to purchase the protected publication or expressive 15 merchandise. 16 2. Notwithstanding subsection 1, a company may do any of the 17 following: 18 a. Restrict the ability of a citizen of this state to 19 view, comment, or otherwise interact with a United States 20 citizen’s content on the company’s internet site if the 21 content is criminal in nature, if the content does not 22 constitute constitutionally protected speech, or if the content 23 constitutes any of the following: 24 (1) Obscene material. 25 (2) Excessively violent content. 26 (3) Pornography. 27 (4) Content generated by bots. 28 (5) Intellectual property. 29 b. Restrict the ability of a citizen of this state to 30 download a social networking website program or application 31 from a pre-installed application store if the social networking 32 website is being used for criminal activity and the social 33 networking website does not have a policy in place to require 34 its employees to notify law enforcement upon receiving a 35 -6- LSB 2701YH (3) 91 dg/jh 6/ 25

H.F. 451 complaint or otherwise becoming aware of the criminal activity 1 being discussed or conducted on its social networking website, 2 or does not have a policy in place to require its employees 3 to refer the complaint or existence of criminal activity to 4 designated employees that carry out the policy. 5 c. Restrict the ability of a citizen of this state to 6 download a social networking website program or application 7 from a pre-installed application store if, within sixty days 8 of the restriction, the United States department of homeland 9 security determines the social networking website program or 10 application constitutes a national security threat. 11 3. a. A company shall provide its subscribers, members, and 12 users who are citizens of this state with the ability to opt 13 out of post promoting algorithms and shadow banning algorithms 14 on the company’s massive online marketplace, massive online 15 video sharing website, or massive social networking website. 16 b. For purposes of this subsection: 17 (1) “Post promoting algorithm” means and includes the 18 mechanism, process, or set of rules that is used to sort the 19 content that is visible to a subscriber, member, or user based 20 on data or information possessed, used, or controlled by a 21 company which relates to the subscriber, member, or user. 22 (2) “Shadow banning algorithm” means and includes the 23 mechanism, process, or set of rules that is used to restrict 24 the visibility of a subscriber’s, member’s, or user’s content 25 to other subscribers, members, or users in a way that is not 26 readily apparent to the subscriber, member, or user who created 27 the content. 28 Sec. 5. NEW SECTION . 554I.3 Enforcement —— companies. 29 1. a. A court’s finding by a preponderance of the evidence 30 that a company has violated a provision of this chapter shall 31 be conclusive proof of the company’s breach of any agreement 32 between the company and a governmental entity in effect as 33 of the effective date of this Act regarding tax credits; 34 assistance under section 15.335B; sales tax exemptions or 35 -7- LSB 2701YH (3) 91 dg/jh 7/ 25

H.F. 451 refunds under chapter 423; or property tax credits, exemptions, 1 including but not limited to exemptions under chapter 427, 2 rebates, refunds, reimbursements, or grants for property 3 taxes paid, and the governmental entity shall cancel the 4 agreement effective as of the date of the court’s finding by 5 a preponderance of the evidence that a company has violated a 6 provision of this chapter. 7 b. A court’s finding by a preponderance of the evidence 8 that a company has violated a provision of this chapter shall 9 be conclusive proof of the company’s breach of any agreement 10 between the company and a governmental entity entered into 11 after the effective date of this Act regarding tax credits; 12 assistance under section 15.335B; sales tax exemptions or 13 refunds under chapter 423; or property tax credits, exemptions, 14 including but not limited to exemptions under chapter 427, 15 rebates, refunds, reimbursements, or grants for property taxes 16 paid, and the governmental entity shall cancel the agreement 17 effective as of the date of the court’s finding. 18 2. Notwithstanding any other provision of law to the 19 contrary, upon a court’s finding by a preponderance of the 20 evidence that a company has violated a provision of this 21 chapter, the company shall be prohibited from entering into 22 any future agreement with a governmental entity regarding 23 tax credits; assistance under section 15.335B; sales tax 24 exemptions or refunds under chapter 423; or property tax 25 credits, exemptions, including but not limited to exemptions 26 under chapter 427, rebates, refunds, reimbursements, or grants 27 for property taxes paid, and shall be prohibited from receiving 28 any future payments; tax credits; assistance under section 29 15.335B; sales tax exemptions or refunds under chapter 423; or 30 property tax credits, exemptions, including but not limited to 31 exemptions under chapter 427, rebates, refunds, reimbursements, 32 or grants for property taxes paid. The prohibition provided in 33 this subsection shall begin on the date of the court’s finding. 34 Except as provided in section 554I.7, the prohibition shall 35 -8- LSB 2701YH (3) 91 dg/jh 8/ 25

H.F. 451 be for a period of twenty years. The twenty-year prohibition 1 shall be reinstated for each subsequent finding by a court 2 pursuant to this subsection. 3 3. Notwithstanding any other provision of law to the 4 contrary, upon a court’s finding by a preponderance of the 5 evidence that a company has violated a provision of this 6 chapter all of the following shall apply: 7 a. Tax credits; assistance from programs and funds under 8 section 15.335B; sales tax exemptions or refunds under chapter 9 423; or property tax credits, exemptions, including but not 10 limited to exemptions under chapter 427, rebates, refunds, 11 reimbursements, or grants for property taxes paid, that were 12 previously claimed by the company but not earned under the 13 terms of the agreement with the governmental entity at the time 14 of the cancellation of the agreement pursuant to subsection 1, 15 shall be recaptured or terminated by the governmental entity. 16 The recapture or termination pursuant to this subsection of 17 any tax credits; assistance under section 15.335B; sales tax 18 exemptions or refunds under chapter 423; or property tax 19 credits, exemptions, including but not limited to exemptions 20 under chapter 427, rebates, refunds, reimbursements, or grants 21 for property taxes paid, that were previously claimed but not 22 earned by the company shall supersede any agreement previously 23 entered into with the governmental entity. Recapture or 24 termination pursuant to this subsection shall be accomplished 25 in the same manner as provided in section 15.330, subsection 26 2, by the method for resolving a breach described in the 27 agreement, through court action, or any other means determined 28 by the attorney general to result in the most expeditious 29 recapture or termination of tax credits; assistance under 30 section 15.335B; sales tax exemptions or refunds under chapter 31 423; or property tax credits, exemptions, including but not 32 limited to exemptions under chapter 427, rebates, refunds, 33 reimbursements, or grants for property taxes paid, that were 34 previously claimed by the company but not earned under the 35 -9- LSB 2701YH (3) 91 dg/jh 9/ 25

H.F. 451 terms of the agreement with the governmental entity at the time 1 of the cancellation of the agreement pursuant to subsection 1. 2 b. Payments or other quantifiable benefits received but not 3 earned by the company shall be returned to the governmental 4 entity. 5 4. Upon a court’s finding by a preponderance of the evidence 6 that a company has violated a provision of this chapter, the 7 prohibition provided in subsection 1 and the return of received 8 but not earned amounts provided in subsection 3 shall not be 9 stayed during appeal proceedings. 10 Sec. 6. NEW SECTION . 554I.4 Inventory of agreements with 11 companies —— obligations. 12 1. Within thirty days following the effective date of this 13 Act, a governmental entity shall do all of the following: 14 a. Conduct a review of currently effective agreements 15 related to tax credits; assistance under section 15.335B; sales 16 tax exemptions or refunds under chapter 423; or property tax 17 credits, exemptions, including but not limited to exemptions 18 under chapter 427, rebates, refunds, reimbursements, or 19 grants for property taxes paid, that were provided by the 20 governmental entity beginning January 1, 2001, through the 21 effective date of this Act, to determine if any agreements 22 related to 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, were entered into with, or provided 27 to, a company. 28 b. Provide notice to a company on the form provided by the 29 office of the attorney general pursuant to subsection 3, of 30 the governmental entity’s rights pursuant to section 554I.3 by 31 certified mail return receipt requested if the governmental 32 entity determines pursuant to subsection 1 that a currently 33 effective agreement; tax credit; assistance under section 34 15.335B; sales tax exemption or refund under chapter 423; or 35 -10- LSB 2701YH (3) 91 dg/jh 10/ 25

H.F. 451 property tax credit, exemption, including but not limited to 1 an exemption under chapter 427, rebate, refund, reimbursement, 2 or grant for property taxes paid, was entered into with, or 3 provided to, the company beginning January 1, 2001, through the 4 effective date of this Act. 5 c. Provide the office of the attorney general with copies of 6 the notice and receipt of delivery provided in subsection 2. 7 d. This subsection shall not be construed to provide 8 a company that did not receive notice a defense to a suit 9 alleging a violation of this chapter or a defense to a 10 suit alleging the company breached an agreement with the 11 governmental entity. 12 2. A governmental entity shall include all of the following 13 in agreements to which it is a party entered into on or after 14 the effective date of this Act: 15 a. A statement summarizing the governmental entity’s 16 enforcement rights under section 554I.3 with respect to 17 agreements related to tax credits; assistance under section 18 15.335B; sales tax exemptions or refunds under chapter 423; and 19 property tax credits, exemptions, including but not limited to 20 exemptions under chapter 427, rebates, refunds, reimbursements, 21 or grants for property taxes paid. 22 b. A provision stating that any agreement between the 23 governmental entity and a company subject to section 554I.3 24 that does not relate to tax credits; assistance under section 25 15.335B; sales tax exemptions or refunds under chapter 423; or 26 property tax credits, exemptions, including but not limited to 27 exemptions under chapter 427, rebates, refunds, reimbursements, 28 or grants for property taxes paid, may be canceled at the 29 governmental entity’s discretion within ninety days after a 30 court’s finding by a preponderance of the evidence that the 31 company has violated a provision of this chapter. 32 3. The office of the attorney general shall develop and 33 provide to governmental entities a form to be used for the 34 notice provided in subsection 2 within seven days of the 35 -11- LSB 2701YH (3) 91 dg/jh 11/ 25

H.F. 451 effective date of this Act. 1 Sec. 7. NEW SECTION . 554I.5 Enforcement —— governmental 2 entities. 3 Notwithstanding any other provision of law to the contrary, 4 upon a court’s finding by a preponderance of the evidence 5 that a governmental entity intentionally violated a provision 6 of this chapter, including but not limited to by making 7 payments or providing tax credits; assistance under section 8 15.335B; sales tax exemptions or refunds under chapter 423; or 9 property tax credits, exemptions, including but not limited to 10 exemptions under chapter 427, rebates, refunds, reimbursements, 11 or grants for property taxes paid, in violation of section 12 554I.3, all of the following shall apply: 13 1. The governmental entity’s certified budget and amount of 14 taxes certified shall be reduced as provided in section 24.17, 15 subsection 2, paragraph “b” . 16 2. If the governmental entity receives an appropriation, 17 the governmental entity’s portion of each appropriation in the 18 fiscal year of the court’s finding of an intentional violation 19 shall be reduced by ten percent. If the governmental entity 20 fails to remedy the violation of this chapter prior to the 21 beginning of the subsequent fiscal year, the governmental 22 entity’s portion of each appropriation made by the general 23 assembly for the subsequent fiscal year shall be reduced by a 24 percentage equal to the percentage reduction for the preceding 25 fiscal year plus five percent. All appropriation amounts 26 reduced pursuant to this section shall be transferred to the 27 fund from which they were appropriated. 28 Sec. 8. NEW SECTION . 554I.6 Obligations of the office of 29 the attorney general. 30 1. The office of the attorney general shall enforce 31 the provisions of this chapter, including in all appeal 32 proceedings. 33 a. The office of the attorney general shall appeal a 34 district court’s decision if a company prevails in the district 35 -12- LSB 2701YH (3) 91 dg/jh 12/ 25

H.F. 451 court in an action under this chapter. 1 b. The office of the attorney general shall file an 2 application for further review with the supreme court if, after 3 the appeal provided in paragraph “a” , the supreme court issues 4 an order of transfer and transfers the case to the court of 5 appeals and the company prevails in the action before the court 6 of appeals. 7 c. When an appeal is taken by the office of the attorney 8 general, the office shall not be required to give an appeal 9 bond or security for costs. 10 2. a. Within sixty days following the effective date 11 of this Act, the office of the attorney general shall make 12 available on its internet site a system to allow a citizen of 13 this state to report potential violations of this chapter by a 14 company or by a governmental entity to the office. 15 b. The system required pursuant to paragraph “a” shall 16 include all of the following: 17 (1) A mechanism for the electronic submission of 18 photographs or other evidence of a company’s potential 19 violation of this chapter. 20 (2) An annual accounting, on a calendar year basis, of the 21 number of complaints received by the office of the attorney 22 general related to the number of potential violations of this 23 chapter by companies and governmental entities. In addition 24 to the current year’s accounting, the system shall display 25 annual accountings required by this subparagraph for the years 26 preceding the current calendar year. 27 (3) An annual accounting, on a calendar year basis, of the 28 number of investigations required pursuant to subsections 3 29 and 4 in which the office of the attorney general determines 30 the preponderance of the evidence indicates that a company 31 or governmental entity violated this chapter. In addition 32 to the current year’s accounting, the system shall display 33 annual accountings required by this subparagraph for the years 34 preceding the current calendar year. 35 -13- LSB 2701YH (3) 91 dg/jh 13/ 25

H.F. 451 (4) A list of the companies that a court has found by a 1 preponderance of the evidence have violated this chapter. 2 (5) A list of the governmental entities that a court has 3 found by a preponderance of the evidence have violated this 4 chapter. 5 (6) A mechanism to ensure that the person submitting the 6 report is a citizen of this state. 7 3. Notwithstanding subsection 5, the office of the attorney 8 general shall complete the investigation of a report received 9 pursuant to subsection 2 within sixty days of the receipt 10 of the report if the report included a photograph or other 11 evidence that, in the opinion of the office, indicates a 12 company’s potential violation of this chapter. 13 4. The office of the attorney general shall contact a person 14 who submits a report pursuant to subsection 2 related to a 15 company’s potential violation of this chapter that did not 16 contain a photograph or other evidence within seven days of 17 the receipt of the report and inform the person of one of the 18 following: 19 a. The office will investigate the report, in which case the 20 office shall complete the investigation within sixty days of 21 the receipt of the report. 22 b. The person has thirty days to provide the office with 23 a photograph or other evidence that indicates a potential 24 violation of this chapter, in which case the office shall 25 complete the investigation within sixty days of the receipt of 26 the photograph or other evidence. 27 5. a. Upon completion of an investigation or investigations 28 in which the office of the attorney general determines the 29 preponderance of the evidence indicates that a company or 30 governmental entity has violated this chapter, the office shall 31 file suit in a court of competent jurisdiction to enforce the 32 provisions of this chapter. 33 b. The office of the attorney general shall file suit for 34 a violation of this chapter every four years from the date of 35 -14- LSB 2701YH (3) 91 dg/jh 14/ 25

H.F. 451 the most recent court’s finding if the office determines that 1 a company has violated this chapter at any point during the 2 four-year period after the court’s most recent finding. 3 c. (1) The office of the attorney general shall file suit 4 against a governmental entity that has previously been found 5 to have violated a provision of this chapter no later than 6 February 1 of any subsequent fiscal year if the office of the 7 attorney general determines that the governmental entity failed 8 to remedy a prior violation of this chapter prior to January 9 31 of the current fiscal year. 10 (2) In a suit filed pursuant to this paragraph, the sole 11 issue before the court shall be to determine whether the 12 governmental entity has remedied a prior violation of this 13 chapter. 14 d. The office of the attorney general may join all claims 15 arising from investigations under this subsection against a 16 company or governmental entity if the preponderance of the 17 evidence indicates that the company or governmental entity has 18 violated this chapter. 19 6. a. To accomplish the objectives and to carry out the 20 duties prescribed by this section, the office of the attorney 21 general, in addition to other powers conferred upon the office 22 of the attorney general by this section, may issue subpoenas to 23 any person, administer an oath or affirmation to any person, 24 conduct hearings in aid of any investigation or inquiry, and 25 prescribe such forms as may be necessary. 26 b. Subject to paragraph “c” , information, documents, 27 testimony, or other evidence provided to the office of the 28 attorney general by a person pursuant to paragraph “a” , or 29 provided by a person as evidence in any civil action brought 30 pursuant to this section, shall not be admitted in evidence, 31 or used in any manner whatsoever, in any criminal prosecution 32 or forfeiture proceeding against that person. If a criminal 33 prosecution or forfeiture proceeding is initiated in a state 34 court against a person who has provided information pursuant to 35 -15- LSB 2701YH (3) 91 dg/jh 15/ 25

H.F. 451 paragraph “a” , the state shall have the burden of proof that the 1 information provided was not used in any manner to further the 2 criminal investigation, prosecution, or forfeiture proceeding. 3 c. Paragraph “b” does not apply unless the person has first 4 asserted a right against self-incrimination and the office of 5 the attorney general has elected to provide the person with a 6 written statement that the information, documents, testimony, 7 or other evidence at issue are subject to paragraph “b” . After 8 a person has been provided with such a written statement by the 9 office of the attorney general, a claim of privilege against 10 self-incrimination is not a defense to any action or proceeding 11 to obtain the information, documents, testimony, or other 12 evidence. The limitation on the use of evidence in a criminal 13 proceeding contained in this section does not apply to any 14 prosecution or proceeding for perjury or contempt of court 15 committed in the course of the giving or production of the 16 information, documents, testimony, or other evidence. 17 7. Service by the office of the attorney general of any 18 notice requiring a person to file a statement or report, or of 19 a subpoena upon any person, shall be made personally within 20 this state, but if such cannot be obtained, substituted service 21 may be made in any of the following ways: 22 a. Personal service thereof without this state. 23 b. The mailing thereof by registered mail to the last known 24 place of business, residence, or abode within or without this 25 state of such person for whom the same is intended. 26 c. As to any person other than a natural person, in the 27 manner provided in the rules of civil procedure as if a 28 petition had been filed. 29 d. Such service as a district court may direct in lieu of 30 personal service within this state. 31 8. If a person fails or refuses to file a statement or 32 report, or obey any subpoena issued by the office of the 33 attorney general, the office of the attorney general may, after 34 notice, apply to the Polk county district court or the district 35 -16- LSB 2701YH (3) 91 dg/jh 16/ 25

H.F. 451 court for the county in which the person resides or is located 1 and, after hearing, request an order that provides for any of 2 the following: 3 a. A grant of injunctive relief, restraining the sale or 4 advertisement of any merchandise by such persons. 5 b. The dissolution of a corporation created by or under the 6 laws of this state or revoking or suspending the certificate of 7 authority to do business in this state of a foreign corporation 8 or revoking or suspending any other licenses, permits, or 9 certificates issued pursuant to law to such person which are 10 used to further the allegedly unlawful practice. 11 c. A grant of such other relief as may be required until the 12 person files the statement or report, or obeys the subpoena. 13 9. a. The office of the attorney general shall notify the 14 department of management upon a court’s initial finding by a 15 preponderance of the evidence that a governmental entity has 16 intentionally violated a provision of this chapter, including 17 in a suit filed pursuant to section 554I.8, subsection 3. 18 b. The office of the attorney general shall notify the 19 department of management no later than June 1 of any subsequent 20 fiscal year if a governmental entity fails to remedy the 21 violation in paragraph “a” prior to January 31 of the current 22 fiscal year. 23 10. All records provided to the office of the attorney 24 general pursuant to this section shall be kept confidential and 25 are not subject to chapter 22. 26 Sec. 9. NEW SECTION . 554I.7 Petition for stay. 27 1. No sooner than four years after a court’s finding that 28 a company violated a provision of this chapter pursuant to 29 section 554I.3, the company may petition the court for a stay 30 of the provisions of section 554I.3, subsection 1. 31 2. At the time the company petitions the court for a stay 32 pursuant to subsection 1, the company shall file with the court 33 a bond payable to the state in an amount deemed necessary by 34 the office of the attorney general. 35 -17- LSB 2701YH (3) 91 dg/jh 17/ 25

H.F. 451 3. Within thirty days after a company files a petition for 1 a stay pursuant to subsection 1, the office of the attorney 2 general shall file with the court a statement indicating any 3 reports received under section 554I.6, subsection 2, related 4 to the company from the date of the court’s finding that 5 the company violated a provision of this chapter pursuant to 6 section 554I.3 through the date the company filed the petition 7 for a stay. 8 4. The court shall grant the petition for stay filed 9 pursuant to subsection 1 if it finds that the company did not 10 violate the provisions of this chapter from the date of the 11 court’s finding that the company violated a provision of this 12 chapter pursuant to section 554I.3 through the date the company 13 filed the petition for a stay. 14 a. Beginning one year after the court grants the petition 15 for stay pursuant to this subsection, the company shall 16 annually file with the court an additional bond in the amount 17 of any payments; tax credits; assistance under section 18 15.335B; sales tax exemptions or refunds under chapter 423; or 19 property tax credits, exemptions, including but not limited to 20 exemptions under chapter 427, rebates, refunds, reimbursements, 21 or grants for property taxes paid, which the company received 22 from the state during the previous year. 23 b. A governmental entity shall not provide the company 24 with any tax credits; assistance under section 15.335B; sales 25 tax exemptions or refunds under chapter 423; or property tax 26 credits, exemptions, including but not limited to exemptions 27 under chapter 427, rebates, refunds, reimbursements, or grants 28 for property taxes paid, until the company has satisfied the 29 requirements in paragraph “a” for the previous year. 30 5. The company shall be permanently prohibited from 31 entering into any agreement with a governmental entity 32 regarding tax credits; assistance under section 15.335B; sales 33 tax exemptions or refunds under chapter 423; or property tax 34 credits, exemptions, including but not limited to exemptions 35 -18- LSB 2701YH (3) 91 dg/jh 18/ 25

H.F. 451 under chapter 427, rebates, refunds, reimbursements, or grants 1 for property taxes paid, and shall be permanently prohibited 2 from receiving from a governmental entity any payments; tax 3 credits; assistance under section 15.335B; sales tax exemptions 4 or refunds under chapter 423; or property tax credits, 5 exemptions, including but not limited to exemptions under 6 chapter 427, rebates, refunds, reimbursements, or grants for 7 property taxes paid, if the company violates a provision of 8 this chapter after a court has granted the company’s petition 9 for stay pursuant to this section and before the end of the 10 twenty-year prohibition provided in section 554I.3, subsection 11 1. 12 6. The amount of any bond forfeited under this section shall 13 be deposited in the general fund of the state. 14 7. A company shall not file more than one petition for 15 a stay of the provisions of section 554I.3, subsection 1, 16 during the twenty-year prohibition provided in section 554I.3, 17 subsection 1. 18 8. This section shall not be construed to limit the 19 authority of the office of the attorney general under section 20 554I.6 to investigate potential violations of this chapter or 21 file suit to enforce the provisions of this chapter. 22 Sec. 10. NEW SECTION . 554I.8 Right to intervene —— 23 enforcement by citizens of this state. 24 1. A governmental entity impacted by an action under this 25 chapter may intervene in any action under this chapter. 26 2. A citizen of this state who has reported a company’s 27 potential violation of this chapter pursuant to section 554I.6 28 may intervene in any action related to the company under this 29 chapter. 30 3. Notwithstanding section 554I.6, subsection 1, a citizen 31 of this state who has reported a company’s potential violation 32 of this chapter pursuant to section 554I.6 may file suit in a 33 court of competent jurisdiction to enforce the provisions of 34 this chapter if the company is not currently subject to the 35 -19- LSB 2701YH (3) 91 dg/jh 19/ 25