Bill Text: IA SF402 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act prohibiting the state or a political subdivision of the state from entering into contracts with, or providing tax incentives or any other benefits to, certain companies that censor online content, and including effective date and applicability provisions.(See SF 571, SF 580.)
Spectrum: Partisan Bill (Republican 30-0)
Status: (Introduced - Dead) 2021-03-08 - Committee report approving bill, renumbered as SF 571. S.J. 552. [SF402 Detail]
Download: Iowa-2021-SF402-Introduced.html
Senate
File
402
-
Introduced
SENATE
FILE
402
BY
CHAPMAN
,
WHITING
,
WILLIAMS
,
SHIPLEY
,
REICHMAN
,
J.
TAYLOR
,
KRAAYENBRINK
,
GREEN
,
DICKEY
,
EDLER
,
GOODWIN
,
COURNOYER
,
SWEENEY
,
CARLIN
,
R.
SMITH
,
KLIMESH
,
GARRETT
,
SINCLAIR
,
SCHULTZ
,
ZAUN
,
LOFGREN
,
BROWN
,
COSTELLO
,
GUTH
,
DRISCOLL
,
JOHNSON
,
ROZENBOOM
,
KOELKER
,
ZUMBACH
,
and
DAWSON
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
any
other
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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402
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
24
the
department
of
management
shall
be
reduced
by
ten
percent.
25
If
the
political
subdivision
fails
to
remedy
the
violation
26
of
chapter
554E
prior
to
the
date
of
certification
of
taxes
27
back
to
the
county
auditor
by
the
department
of
management
for
28
the
subsequent
fiscal
year,
the
percentage
reduction
of
the
29
political
subdivision’s
budget
certified
under
this
chapter
and
30
the
amount
of
taxes
certified
back
by
the
department
of
revenue
31
shall
be
reduced
by
a
percentage
equal
to
the
total
reduction
32
for
the
preceding
fiscal
year
plus
five
percent.
33
Sec.
3.
NEW
SECTION
.
554E.1
Definitions.
34
As
used
in
this
chapter,
unless
the
context
otherwise
35
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requires:
1
1.
“Company”
means
and
includes
a
person
or
an
affiliate
of
2
a
person
who
owns
or
operates
any
of
the
following:
3
a.
A
massive
online
marketplace.
4
b.
A
massive
online
video
sharing
website.
5
c.
A
massive
social
networking
website.
6
d.
A
monopolistic
entity.
7
e.
A
pre-installed
application
store.
8
2.
“Excessively
violent
content”
means
any
image,
video,
9
or
other
content
that,
taking
the
material
as
a
whole
and
10
applying
contemporary
community
standards
with
respect
to
what
11
is
suitable
for
public
distribution,
meets
all
of
the
following
12
criteria:
13
a.
Depicts
or
involves
killing,
maiming,
dismembering,
or
14
sexually
assaulting
an
individual.
15
b.
Lacks
serious
literary,
scientific,
political,
or
16
artistic
value.
17
3.
“Expressive
merchandise”
means
and
includes
any
tangible
18
personal
property
that
contains
or
displays
a
viewpoint
that
19
constitutes
constitutionally
protected
speech.
20
4.
“Governmental
entity”
means
and
includes
all
of
the
21
following:
22
a.
A
unit
of
state
government
in
the
executive,
legislative,
23
or
judicial
branch.
24
b.
A
political
subdivision
of
the
state,
including
a
city,
25
county,
township,
school
district,
and
any
other
governmental
26
entity
authorized
to
levy
taxes.
27
5.
“Internet
site”
means
the
same
as
defined
in
section
4.1.
28
6.
“Massive
online
marketplace”
means
and
includes
an
29
internet
site
that
meets
all
of
the
following
criteria:
30
a.
Offers
tangible
personal
property
for
sale
to
the
general
31
public.
32
b.
Sells
or
facilitates
the
sale
of
protected
publications
33
or
expressive
merchandise.
34
c.
Has
at
least
seventy-five
million
subscribers
or
members
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in
the
United
States
in
the
calendar
year
before
the
date
a
1
court
has
found
by
a
preponderance
of
the
evidence
that
the
2
massive
online
marketplace
violated
this
chapter,
or
has
sold
3
goods
to
at
least
seventy-five
million
individuals
in
the
4
United
States
in
the
calendar
year
before
the
date
a
court
5
has
found
by
a
preponderance
of
the
evidence
that
the
massive
6
online
marketplace
has
violated
a
provision
of
this
chapter.
7
7.
“Massive
online
video
sharing
website”
means
and
includes
8
an
internet
site
that
meets
all
of
the
following
criteria:
9
a.
Allows
users
or
the
public
to
share
videos
with
other
10
users
or
the
public.
11
b.
Hosts,
stores,
provides,
or
otherwise
facilitates
access
12
by
individuals
in
the
United
States.
13
c.
Has
at
least
five
hundred
million
videos
available
at
any
14
point
in
time.
15
8.
“Massive
social
networking
website”
means
and
includes
an
16
internet
site
that
meets
all
of
the
following
criteria:
17
a.
Allows
users,
through
the
creation
of
pages
within
18
the
internet
site
or
profiles
or
by
other
means,
to
provide
19
information
about
themselves
that
is
available
to
the
public
20
or
to
other
users.
21
b.
Allows
users
a
mechanism
for
communication
with
other
22
users.
23
c.
Has
at
least
twenty
million
subscribers
or
members
in
24
the
United
States
in
the
calendar
year
before
the
date
a
court
25
has
found
by
a
preponderance
of
the
evidence
that
the
massive
26
social
networking
website
has
violated
a
provision
of
chapter
27
554E,
or
has
been
used
by
at
least
twenty
million
individuals
28
in
the
United
States
in
the
calendar
year
before
the
date
a
29
court
has
found
by
a
preponderance
of
the
evidence
that
the
30
massive
social
networking
website
has
violated
a
provision
of
31
this
chapter.
32
9.
“Monopolistic
entity”
means
and
includes
all
of
the
33
following:
34
a.
A
person
who,
within
the
ten-year
period
preceding
the
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date
a
court
has
found
by
a
preponderance
of
the
evidence
1
that
the
person
has
violated
a
provision
of
this
chapter,
has
2
been
found
to
have
violated
any
state
or
federal
antitrust
or
3
price-fixing
law.
4
b.
A
person
who
is
involved
in
litigation
in
which
it
has
5
been
alleged
that
the
person
has
violated
any
state
or
federal
6
antitrust
or
price-fixing
law.
7
10.
“Obscene
material”
means
any
material
depicting
or
8
describing
the
genitals,
sex
acts,
masturbation,
excretory
9
functions,
or
sadomasochistic
abuse
which
the
average
person,
10
taking
the
material
as
a
whole
and
applying
contemporary
11
community
standards
with
respect
to
what
is
suitable
material
12
for
minors,
would
find
appeals
to
the
prurient
interest
and
is
13
patently
offensive;
and
the
material,
taken
as
a
whole,
lacks
14
serious
literary,
scientific,
political,
or
artistic
value.
15
11.
“Person”
means
the
same
as
defined
in
section
4.1.
16
12.
“Pre-installed
application
store”
means
and
includes
17
any
program,
application,
service,
or
mechanism
that
is
18
pre-installed
on
a
mobile
telephone
or
other
portable
19
electronic
communication
device
capable
of
being
used
to
write,
20
send,
or
view
an
electronic
message
that
meets
all
of
the
21
following
criteria:
22
a.
Facilitated
at
least
one
hundred
million
annual
downloads
23
of
programs
or
applications
by
individuals
in
the
United
24
States
in
the
calendar
year
before
the
date
a
court
has
found
25
by
a
preponderance
of
the
evidence
that
the
pre-installed
26
application
store
has
violated
a
provision
of
this
chapter.
27
b.
Facilitated
the
download
of
programs
or
applications
28
that
constitute
a
massive
online
marketplace,
massive
online
29
video
sharing
website,
or
massive
social
networking
website
30
in
the
calendar
year
before
the
date
a
court
has
found
by
31
a
preponderance
of
the
evidence
that
the
pre-installed
32
application
store
has
violated
a
provision
of
this
chapter.
33
13.
“Protected
publication”
means
and
includes
any
34
newspaper,
non-fiction
book,
periodical,
religious
text,
or
any
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other
publication
that
contains
or
displays
a
viewpoint
that
1
constitutes
constitutionally
protected
speech.
2
14.
“Social
networking
website”
means
and
includes
an
3
internet
site
that
meets
all
of
the
following
criteria:
4
a.
Allows
users,
through
the
creation
of
pages
within
5
the
internet
site
or
profiles
or
by
other
means,
to
provide
6
information
about
themselves
that
is
available
to
the
public
7
or
to
other
users.
8
b.
Allows
users
a
mechanism
for
communication
with
other
9
users.
10
Sec.
4.
NEW
SECTION
.
554E.2
Prohibition
on
censorship
——
11
ability
to
opt
out
of
certain
algorithms.
12
1.
a.
A
company
shall
not
intentionally
affect
the
ability
13
of
a
citizen
of
this
state
to
view,
comment,
or
otherwise
14
interact
with
a
United
States
citizen’s
content
on
the
15
company’s
internet
site
by
limiting,
blocking,
or
otherwise
16
restricting
any
content
on
the
company’s
internet
site
if
the
17
content
constitutes
constitutionally
protected
speech.
18
b.
A
company
shall
not
intentionally
restrict
the
ability
of
19
a
citizen
of
this
state
to
download
a
social
networking
website
20
on
a
pre-installed
application
store.
21
c.
A
company
shall
not
intentionally
restrict
the
ability
of
22
a
citizen
of
this
state
to
purchase
any
protected
publication
23
or
expressive
merchandise
on
a
massive
online
marketplace
24
if
similar
protected
publications
or
expressive
merchandise
25
were
allowed
for
sale
on
the
massive
online
marketplace
at
26
the
time
the
company
restricted
the
ability
of
a
citizen
of
27
this
state
to
purchase
the
protected
publication
or
expressive
28
merchandise.
29
2.
Notwithstanding
subsection
1,
a
company
may
do
any
of
the
30
following:
31
a.
Restrict
the
ability
of
a
citizen
of
this
state
to
32
view,
comment,
or
otherwise
interact
with
a
United
States
33
citizen’s
content
on
the
company’s
internet
site
if
the
34
content
is
criminal
in
nature,
if
the
content
does
not
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constitute
constitutionally
protected
speech,
or
if
the
content
1
constitutes
any
of
the
following:
2
(1)
Obscene
material.
3
(2)
Excessively
violent
content.
4
b.
Restrict
the
ability
of
a
citizen
of
this
state
to
5
download
a
social
networking
website
program
or
application
6
from
a
pre-installed
application
store
if
the
social
networking
7
website
is
being
used
for
criminal
activity
and
the
social
8
networking
website
does
not
have
a
policy
in
place
to
require
9
its
employees
to
notify
law
enforcement
upon
receiving
a
10
complaint
or
otherwise
becoming
aware
of
the
criminal
activity
11
being
discussed
or
conducted
on
its
social
networking
website,
12
or
does
not
have
a
policy
in
place
to
require
its
employees
13
to
refer
the
complaint
or
existence
of
criminal
activity
to
14
designated
employees
that
carry
out
the
policy.
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.
5.
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
of
2
the
effective
date
of
this
Act,
and
the
governmental
entity
3
shall
cancel
the
agreement
effective
as
of
the
date
the
company
4
receives
the
notice
the
governmental
entity
provides
pursuant
5
to
section
554E.4,
subsection
1,
paragraph
“b”
,
or
if
the
6
governmental
entity
fails
to
send
the
notice,
the
governmental
7
entity
shall
cancel
the
agreement
effective
thirty
days
after
8
the
effective
date
of
this
Act.
Nothing
in
this
subsection
9
shall
be
interpreted
to
provide
a
company
that
did
not
receive
10
notice
a
defense
to
a
suit
alleging
a
violation
of
this
11
chapter
or
a
defense
to
a
suit
alleging
the
company
breached
an
12
agreement
with
the
governmental
entity.
13
b.
A
court’s
finding
by
a
preponderance
of
the
evidence
14
that
a
company
has
violated
a
provision
of
this
chapter
shall
15
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
16
between
the
company
and
a
governmental
entity
entered
into
17
after
the
effective
date
of
this
Act,
and
the
governmental
18
entity
shall
cancel
the
agreement
effective
as
of
the
date
of
19
the
court’s
finding.
20
2.
Notwithstanding
any
other
provision
of
law
to
the
21
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
22
evidence
that
a
company
has
violated
a
provision
of
this
23
chapter,
the
company
shall
be
prohibited
from
entering
into
24
any
future
agreement
with
a
governmental
entity
and
shall
be
25
prohibited
from
receiving
any
future
payments;
tax
credits;
26
assistance
under
section
15.335B;
sales
tax
exemptions
or
27
refunds
under
chapter
423;
property
tax
credits,
exemptions,
28
including
but
not
limited
to
exemptions
under
chapter
427,
29
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
30
paid;
or
any
other
special
benefits
from
a
governmental
entity.
31
The
prohibition
provided
in
this
subsection
shall
begin
on
the
32
date
of
the
court’s
finding.
Except
as
provided
in
section
33
554E.7,
the
prohibition
shall
be
for
a
period
of
twenty
years.
34
The
twenty-year
prohibition
shall
be
reinstated
for
each
35
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subsequent
finding
by
a
court
pursuant
to
this
subsection.
1
3.
Notwithstanding
any
other
provision
of
law
to
the
2
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
3
evidence
that
a
company
has
violated
a
provision
of
this
4
chapter
all
of
the
following
shall
apply:
5
a.
Tax
credits;
assistance
from
programs
and
funds
under
6
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
7
423;
property
tax
credits,
exemptions,
including
but
not
8
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
9
reimbursements,
or
grants
for
property
taxes
paid;
or
any
10
other
special
benefits
previously
claimed
by
the
company
11
shall
be
recaptured
or
terminated
by
the
governmental
entity.
12
The
recapture
or
termination
of
any
tax
credits;
assistance
13
under
section
15.335B;
sales
tax
exemptions
or
refunds
under
14
chapter
423;
property
tax
credits,
exemptions,
including
but
15
not
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
16
reimbursements,
or
grants
for
property
taxes
paid;
or
any
other
17
special
benefits
previously
claimed
by
the
company
pursuant
18
to
this
subsection
shall
supersede
any
agreement
previously
19
entered
into
with
the
governmental
entity.
Recapture
or
20
termination
pursuant
to
this
subsection
shall
be
accomplished
21
in
the
same
manner
as
provided
in
section
15.330,
subsection
22
2,
by
the
method
for
resolving
a
breach
described
in
the
23
agreement,
through
court
action,
or
any
other
means
determined
24
by
the
attorney
general
to
result
in
the
most
expeditious
25
recapture
or
termination
of
tax
credits;
assistance
under
26
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
27
423;
property
tax
credits,
exemptions,
including
but
not
28
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
29
reimbursements,
or
grants
for
property
taxes
paid;
or
any
other
30
special
benefits
previously
claimed
by
the
company.
31
b.
Payments
or
other
quantifiable
benefits
received
but
not
32
earned
by
the
company
shall
be
returned
to
the
governmental
33
entity.
34
4.
Upon
a
court’s
finding
by
a
preponderance
of
the
evidence
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that
a
company
has
violated
a
provision
of
this
chapter,
the
1
prohibition
provided
in
subsection
1
and
the
return
of
received
2
but
not
earned
amounts
provided
in
subsection
3
shall
not
be
3
stayed
during
appeal
proceedings.
4
Sec.
6.
NEW
SECTION
.
554E.4
Inventory
of
agreements
with
5
companies
——
obligations.
6
1.
Within
thirty
days
following
the
effective
date
of
this
7
Act,
a
governmental
entity
shall
do
all
of
the
following:
8
a.
Conduct
a
review
of
currently
effective
agreements;
9
tax
credits;
assistance
under
section
15.335B;
sales
tax
10
exemptions
or
refunds
under
chapter
423;
property
tax
credits,
11
exemptions,
including
but
not
limited
to
exemptions
under
12
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
for
13
property
taxes
paid;
or
any
other
special
benefits
provided
by
14
the
governmental
entity
beginning
January
1,
2001,
through
the
15
effective
date
of
this
Act,
to
determine
if
any
agreements,
tax
16
credits;
assistance
under
section
15.335B;
sales
tax
exemptions
17
or
refunds
under
chapter
423;
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;
or
any
other
special
benefits
were
entered
into
with,
or
21
provided
to,
a
company.
22
b.
Provide
notice
to
a
company
on
the
form
provided
by
the
23
office
of
the
attorney
general
pursuant
to
subsection
3,
of
24
the
governmental
entity’s
rights
pursuant
to
section
554E.3
by
25
certified
mail
return
receipt
requested
if
the
governmental
26
entity
determines
pursuant
to
subsection
1
that
a
currently
27
effective
agreement;
tax
credit;
assistance
under
section
28
15.335B;
sales
tax
exemption
or
refund
under
chapter
423;
29
property
tax
credit,
exemption,
including
but
not
limited
to
30
an
exemption
under
chapter
427,
rebate,
refund,
reimbursement,
31
or
grant
for
property
taxes
paid;
or
any
other
special
benefit
32
was
entered
into
with,
or
provided
to,
the
company
beginning
33
January
1,
2001,
through
the
effective
date
of
this
Act.
34
c.
Provide
the
office
of
the
attorney
general
with
copies
of
35
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the
notice
and
receipt
of
delivery
provided
in
subsection
2.
1
2.
A
governmental
entity
shall
include
in
all
agreements
2
to
which
it
is
a
party
entered
into
on
or
after
the
effective
3
date
of
this
Act
a
statement
summarizing
the
governmental
4
entity’s
enforcement
rights
under
section
554E.3
with
respect
5
to
agreements;
tax
credits;
assistance
under
section
15.335B;
6
sales
tax
exemptions
or
refunds
under
chapter
423;
property
tax
7
credits,
exemptions,
including
but
not
limited
to
exemptions
8
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
9
for
property
taxes
paid;
or
any
other
special
benefits.
10
3.
The
office
of
the
attorney
general
shall
develop
and
11
provide
to
governmental
entities
a
form
to
be
used
for
the
12
notice
provided
in
subsection
2
within
seven
days
of
the
13
effective
date
of
this
Act.
14
Sec.
7.
NEW
SECTION
.
554E.5
Enforcement
——
governmental
15
entities.
16
Notwithstanding
any
other
provision
of
law
to
the
contrary,
17
upon
a
court’s
finding
by
a
preponderance
of
the
evidence
that
18
a
governmental
entity
intentionally
violated
a
provision
of
19
this
chapter,
including
but
not
limited
to
by
making
payments
20
or
providing
tax
credits;
assistance
under
section
15.335B;
21
sales
tax
exemptions
or
refunds
under
chapter
423;
property
tax
22
credits,
exemptions,
including
but
not
limited
to
exemptions
23
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
24
for
property
taxes
paid;
or
any
other
special
benefits
in
25
violation
of
section
554E.3,
all
of
the
following
shall
apply:
26
1.
The
governmental
entity’s
certified
budget
and
amount
of
27
taxes
certified
shall
be
reduced
as
provided
in
section
24.17,
28
subsection
2,
paragraph
“b”
.
29
2.
If
the
governmental
entity
receives
an
appropriation,
30
the
governmental
entity’s
portion
of
each
appropriation
in
the
31
fiscal
year
of
the
court’s
finding
of
an
intentional
violation
32
shall
be
reduced
by
ten
percent.
If
the
governmental
entity
33
fails
to
remedy
the
violation
of
this
chapter
prior
to
the
34
beginning
of
the
subsequent
fiscal
year,
the
governmental
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entity’s
portion
of
each
appropriation
made
by
the
general
1
assembly
for
the
subsequent
fiscal
year
shall
be
reduced
by
a
2
percentage
equal
to
the
percentage
reduction
for
the
preceding
3
fiscal
year
plus
five
percent.
All
appropriation
amounts
4
reduced
pursuant
to
this
section
shall
be
transferred
to
the
5
fund
from
which
they
were
appropriated.
6
Sec.
8.
NEW
SECTION
.
554E.6
Obligations
of
the
office
of
7
the
attorney
general.
8
1.
The
office
of
the
attorney
general
shall
enforce
9
the
provisions
of
this
chapter,
including
in
all
appeal
10
proceedings.
11
a.
The
office
of
the
attorney
general
shall
appeal
a
12
district
court’s
decision
if
a
company
prevails
in
the
district
13
court
in
an
action
under
this
chapter.
14
b.
The
office
of
the
attorney
general
shall
file
an
15
application
for
further
review
with
the
supreme
court
if,
after
16
the
appeal
provided
in
paragraph
“a”
,
the
supreme
court
issues
17
an
order
of
transfer
and
transfers
the
case
to
the
court
of
18
appeals
and
the
company
prevails
in
the
action
before
the
court
19
of
appeals.
20
c.
When
an
appeal
is
taken
by
the
office
of
the
attorney
21
general,
the
office
shall
not
be
required
to
give
an
appeal
22
bond
or
security
for
costs.
23
2.
a.
Within
sixty
days
following
the
effective
date
24
of
this
Act,
the
office
of
the
attorney
general
shall
make
25
available
on
its
internet
site
a
system
to
allow
a
citizen
of
26
this
state
to
report
potential
violations
of
this
chapter
by
a
27
company
or
by
a
governmental
entity
to
the
office.
28
b.
The
system
required
pursuant
to
paragraph
“a”
shall
29
include
all
of
the
following:
30
(1)
A
mechanism
for
the
electronic
submission
of
31
photographs
or
other
evidence
of
a
company’s
potential
32
violation
of
this
chapter.
33
(2)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
34
number
of
complaints
received
by
the
office
of
the
attorney
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general
related
to
the
number
of
potential
violations
of
this
1
chapter
by
companies
and
governmental
entities.
In
addition
2
to
the
current
year’s
accounting,
the
system
shall
display
3
annual
accountings
required
by
this
subparagraph
for
the
years
4
preceding
the
current
calendar
year.
5
(3)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
6
number
of
investigations
required
pursuant
to
subsections
3
7
and
4
in
which
the
office
of
the
attorney
general
determines
8
there
is
a
reasonable
suspicion
that
a
company
or
governmental
9
entity
violated
this
chapter.
In
addition
to
the
current
10
year’s
accounting,
the
system
shall
display
annual
accountings
11
required
by
this
subparagraph
for
the
years
preceding
the
12
current
calendar
year.
13
(4)
A
list
of
the
companies
that
a
court
has
found
by
a
14
preponderance
of
the
evidence
have
violated
this
chapter.
15
(5)
A
list
of
the
governmental
entities
that
a
court
has
16
found
by
a
preponderance
of
the
evidence
have
violated
this
17
chapter.
18
(6)
A
mechanism
to
ensure
that
the
person
submitting
the
19
report
is
a
citizen
of
this
state.
20
3.
Notwithstanding
subsection
5,
the
office
of
the
attorney
21
general
shall
complete
the
investigation
of
a
report
received
22
pursuant
to
subsection
2
within
thirty
days
of
the
receipt
23
of
the
report
if
the
report
included
a
photograph
or
other
24
evidence
that,
in
the
opinion
of
the
office,
indicates
a
25
company’s
potential
violation
of
this
chapter.
26
4.
The
office
of
the
attorney
general
shall
contact
a
person
27
who
submits
a
report
pursuant
to
subsection
2
related
to
a
28
company’s
potential
violation
of
this
chapter
that
did
not
29
contain
a
photograph
or
other
evidence
within
seven
days
of
30
the
receipt
of
the
report
and
inform
the
person
of
one
of
the
31
following:
32
a.
The
office
will
investigate
the
report,
in
which
case
the
33
office
shall
complete
the
investigation
within
thirty
days
of
34
the
receipt
of
the
report.
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b.
The
person
has
thirty
days
to
provide
the
office
with
1
a
photograph
or
other
evidence
that
indicates
a
potential
2
violation
of
this
chapter,
in
which
case
the
office
shall
3
complete
the
investigation
within
thirty
days
of
the
receipt
of
4
the
photograph
or
other
evidence.
5
5.
a.
Upon
completion
of
an
investigation
in
which
6
the
office
of
the
attorney
general
determines
there
is
a
7
reasonable
suspicion
that
a
company
or
governmental
entity
has
8
violated
this
chapter,
the
office
shall
file
suit
in
a
court
9
of
competent
jurisdiction
to
enforce
the
provisions
of
this
10
chapter.
11
b.
The
office
of
the
attorney
general
shall
file
suit
for
a
12
violation
of
this
chapter
every
four
years
from
the
date
of
the
13
most
recent
court’s
finding
if
the
office
determines
there
is
14
reasonable
suspicion
that
a
company
has
violated
this
chapter
15
at
any
point
during
the
four-year
period
after
the
court’s
most
16
recent
finding.
17
c.
The
office
of
the
attorney
general
shall
file
suit
to
18
enforce
this
chapter
against
a
governmental
entity
every
year
19
from
the
date
of
the
most
recent
court’s
finding
that
the
20
governmental
entity
has
violated
this
chapter
if
the
office
21
determines
there
is
reasonable
suspicion
that
a
violation
of
22
this
chapter
has
occurred
at
any
point
during
the
one-year
23
period
after
the
court’s
most
recent
finding.
24
6.
All
records
provided
to
the
office
of
the
attorney
25
general
pursuant
to
this
section
shall
be
kept
confidential
and
26
are
not
subject
to
chapter
22.
27
Sec.
9.
NEW
SECTION
.
554E.7
Petition
for
stay.
28
1.
No
sooner
than
four
years
after
a
court’s
finding
that
29
a
company
violated
a
provision
of
this
chapter
pursuant
to
30
section
554E.3,
the
company
may
petition
the
court
for
a
stay
31
of
the
provisions
of
section
554E.3,
subsection
1.
32
2.
At
the
time
the
company
petitions
the
court
for
a
stay
33
pursuant
to
subsection
1,
the
company
shall
file
with
the
court
34
a
bond
payable
to
the
state
in
an
amount
deemed
necessary
by
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the
office
of
the
attorney
general.
1
3.
Within
thirty
days
after
a
company
files
a
petition
for
2
a
stay
pursuant
to
subsection
1,
the
office
of
the
attorney
3
general
shall
file
with
the
court
a
statement
indicating
any
4
reports
received
under
section
554E.6,
subsection
2,
related
5
to
the
company
from
the
date
of
the
court’s
finding
that
6
the
company
violated
a
provision
of
this
chapter
pursuant
to
7
section
554E.3
through
the
date
the
company
filed
the
petition
8
for
a
stay.
9
4.
The
court
shall
grant
the
petition
for
stay
filed
10
pursuant
to
subsection
1
if
it
finds
that
the
company
did
not
11
violate
the
provisions
of
this
chapter
from
the
date
of
the
12
court’s
finding
that
the
company
violated
a
provision
of
this
13
chapter
pursuant
to
section
554E.3
through
the
date
the
company
14
filed
the
petition
for
a
stay.
15
a.
Beginning
one
year
after
the
court
grants
the
petition
16
for
stay
pursuant
to
this
subsection,
the
company
shall
17
annually
file
with
the
court
an
additional
bond
in
the
amount
18
of
any
payments;
tax
credits;
assistance
under
section
15.335B;
19
sales
tax
exemptions
or
refunds
under
chapter
423;
property
tax
20
credits,
exemptions,
including
but
not
limited
to
exemptions
21
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
22
for
property
taxes
paid;
or
any
other
special
benefits
the
23
company
received
from
the
state
during
the
previous
year.
24
b.
A
governmental
entity
shall
not
make
any
payments
to
25
the
company,
or
provide
the
company
with
any
tax
credits;
26
assistance
under
section
15.335B;
sales
tax
exemptions
or
27
refunds
under
chapter
423;
property
tax
credits,
exemptions,
28
including
but
not
limited
to
exemptions
under
chapter
427,
29
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
30
paid;
or
any
other
special
benefits,
until
the
company
has
31
satisfied
the
requirements
in
paragraph
“a”
for
the
previous
32
year.
33
5.
The
company
shall
be
permanently
prohibited
from
34
entering
into
any
agreement
with
a
governmental
entity
and
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shall
be
permanently
prohibited
from
receiving
any
payments;
1
tax
credits;
assistance
under
section
15.335B;
sales
tax
2
exemptions
or
refunds
under
chapter
423;
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;
or
any
other
special
benefits
from
a
6
governmental
entity
if
the
company
violates
a
provision
of
7
this
chapter
after
a
court
has
granted
the
company’s
petition
8
for
stay
pursuant
to
this
section
and
before
the
end
of
the
9
twenty-year
prohibition
provided
in
section
554E.3,
subsection
10
1.
11
6.
The
amount
of
any
bond
forfeited
under
this
section
shall
12
be
deposited
in
the
general
fund
of
the
state.
13
7.
A
company
shall
not
file
more
than
one
petition
for
14
a
stay
of
the
provisions
of
section
554E.3,
subsection
1,
15
during
the
twenty-year
prohibition
provided
in
section
554E.3,
16
subsection
1.
17
8.
Nothing
in
this
section
shall
be
construed
to
limit
the
18
authority
of
the
office
of
the
attorney
general
under
section
19
554E.6
to
investigate
potential
violations
of
this
chapter
or
20
file
suit
to
enforce
the
provisions
of
this
chapter.
21
Sec.
10.
NEW
SECTION
.
554E.8
Right
to
intervene
——
22
enforcement
by
citizens
of
this
state.
23
1.
A
governmental
entity
impacted
by
an
action
under
this
24
chapter
may
intervene
in
any
action
under
this
chapter.
25
2.
A
citizen
of
this
state
who
has
reported
a
company’s
26
potential
violation
of
this
chapter
pursuant
to
section
554E.6
27
may
intervene
in
any
action
related
to
the
company
under
this
28
chapter.
29
3.
Notwithstanding
section
554E.6,
subsection
1,
a
citizen
30
of
this
state
who
has
reported
a
company’s
potential
violation
31
of
this
chapter
pursuant
to
section
554E.6
may
file
suit
in
a
32
court
of
competent
jurisdiction
to
enforce
the
provisions
of
33
this
chapter
if
the
company
is
not
currently
subject
to
the
34
prohibition
provided
in
section
554E.3,
subsection
2,
and
if
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the
company’s
potential
violation
of
this
chapter
occurred
at
1
least
thirty
days
following
the
effective
date
of
this
Act.
2
Sec.
11.
NEW
SECTION
.
554E.9
Rules.
3
The
office
of
the
attorney
general
shall
adopt
rules
4
pursuant
to
chapter
17A
to
administer
and
interpret
this
5
chapter.
6
Sec.
12.
LEGISLATIVE
FINDINGS
AND
LEGISLATIVE
INTENT.
The
7
general
assembly
finds
all
of
the
following:
8
1.
The
United
States
Constitution
and
the
Constitution
of
9
the
State
of
Iowa
guarantee
citizens
of
this
state
the
freedom
10
of
speech.
11
2.
The
ability
of
citizens
of
this
state
to
voice
their
12
opinions
on
matters
that
impact
themselves
or
society
generally
13
is
of
paramount
importance
in
order
to
have
a
healthy,
14
functioning,
and
inclusive
democracy
in
which
every
citizen
can
15
participate.
16
3.
Freedom
of
speech
is
not
only
necessary
in
order
17
for
every
citizen
of
this
state
to
feel
included
in
their
18
representative
democracy,
but
also
necessary
for
there
to
be
19
free
and
open
debate
so
society
can
improve
its
knowledge,
20
understanding,
and
perspective
on
issues
that
impact
science,
21
religion,
academia,
public
officials,
and
public
policy
22
generally,
regardless
of
how
popular
or
unpopular
any
23
particular
person,
entity,
speech,
idea,
or
opinion
may
be.
24
4.
The
purpose
of
guaranteeing
the
freedom
of
speech
in
the
25
United
States
Constitution
and
Constitution
of
the
State
of
26
Iowa
is
to
protect
the
people
from
government
to
ensure
that
27
no
one
person,
group,
or
entity
controls
what
individuals
or
28
society
see
as
the
truth,
controls
what
individuals
or
society
29
are
allowed
to
believe
or
think,
or
controls
what
is
and
is
not
30
open
for
debate.
31
5.
Without
freedom
of
speech,
free
and
open
debate,
and
32
freedom
of
thought
in
society,
individuals
begin
to
lose
faith
33
and
trust
in
science,
religion,
academia,
public
officials,
and
34
the
legitimacy
of
their
representative
government.
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6.
The
majority
of
individuals
and
entities
voice
their
1
support,
opposition,
or
opinions
on
science,
religion,
2
academics,
public
officials,
and
public
policy
through
the
3
internet.
4
7.
A
majority
of
individuals
and
entities
now
receive
5
information
and
opinions
about
science,
religion,
academia,
6
public
officials,
and
public
policy
through
the
internet.
7
8.
It
can
be
safely
concluded
that
the
public
forum
where
8
individuals,
entities,
and
society
generally
debate
the
issues,
9
voice
their
support,
opposition,
or
opinions,
obtain
and
10
receive
information,
and
learn
about
current
events
has
largely
11
moved
from
the
physical
public
square
and
print
materials
12
distributed
locally,
to
the
internet
through
companies.
13
9.
Congress
has
provided
civil
immunity
to
many
companies
14
through
47
U.S.C.
§230
(the
Communications
Decency
Act),
15
which
allows
those
companies
to
flourish
by
treating
them
16
as
distributors
of
information
instead
of
publishers
of
17
information,
which
allows
the
companies
to
label,
reduce
18
distribution,
or
remove
information
on
their
platforms,
19
websites,
marketplaces,
application
stores,
and
the
internet
20
generally.
21
10.
Certain
companies
have
exploited
and
abused
the
22
Communications
Decency
Act
to
the
point
where
many
citizens
of
23
this
state
are
losing
faith
and
trust
in
science,
religion,
24
academia,
public
officials,
public
policy
generally,
and
the
25
legitimacy
of
their
representative
government
at
all
levels.
26
11.
Certain
companies
that
exploit
and
abuse
the
27
Communications
Decency
Act
have
grown
to
such
an
extent
that
28
they
dominate
the
marketplace
such
that
citizens
of
this
29
state
have
no
real
alternatives
if
they
do
not
agree
with
the
30
information
moderation
policies
used
by
those
companies,
are
31
disallowed
from
voicing
their
opinions
on
the
platforms
created
32
by
the
companies,
have
their
opinions
and
thoughts
hidden
33
from
the
general
public,
or
are
disallowed
from
having
their
34
publications
sold
to
the
general
public
in
online
marketplaces.
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12.
Members
of
Congress
belonging
to
both
parties
have
known
1
about
these
abuses
and
exploitations
of
the
Communications
2
Decency
Act
for
years,
and
congressional
committees
have
3
released
reports
detailing
these
exploitations
and
abuses,
4
but
Congress
has
done
nothing
to
reduce
or
prevent
them
from
5
continuing
in
the
future.
6
13.
Near
the
end
of
his
presidency,
President
Donald
J.
7
Trump
attempted
to
force
Congress
to
prevent
any
future
harm
8
caused
by
the
continued
ability
of
companies
to
exploit
and
9
abuse
the
Communications
Decency
Act
by
vetoing
the
National
10
Defense
Authorization
Act,
but
Congress
decided
to
override
11
President
Trump’s
veto
instead
of
preventing
the
harm
and
abuse
12
from
continuing
by
repealing
or
amending
the
Communications
13
Decency
Act.
14
14.
The
general
assembly
does
not
have
the
authority
to
15
enact
any
law
that
is
inconsistent
with
the
Communications
16
Decency
Act.
17
15.
The
general
assembly
does
have
the
ability
to
ensure
18
that
the
state
and
its
political
subdivisions
do
not
give
any
19
taxpayer
money,
tax
incentives,
or
any
other
benefit
to
the
20
companies
causing
harm
to
our
society
by
exploiting
and
abusing
21
the
Communications
Decency
Act.
22
16.
It
is
the
intent
of
the
general
assembly
that
this
23
Act
be
interpreted
broadly
to
prevent
taxpayer
money,
tax
24
incentives,
or
any
other
benefits
from
being
awarded
to
the
25
companies
that
are
the
subject
of
this
Act.
26
Sec.
13.
TRANSITIONAL
COMPLAINT
REPORTING
SYSTEM.
Within
27
thirty
days
following
the
effective
date
of
this
Act,
and
until
28
fifty-nine
days
following
the
effective
date
of
this
Act,
the
29
office
of
the
attorney
general
shall
make
available
on
its
30
internet
site
a
transitional
system
to
allow
a
citizen
of
31
this
state
to
report
potential
violations
of
chapter
554E
by
32
a
company
or
a
governmental
entity
to
the
office.
The
system
33
shall
include,
at
a
minimum,
a
mechanism
for
the
electronic
34
submission
of
reports
of
potential
violations
of
chapter
554E
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and
the
electronic
evidence
associated
with
the
potential
1
violations.
2
Sec.
14.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
3
3,
shall
not
apply
to
this
Act.
4
Sec.
15.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
5
immediate
importance,
takes
effect
upon
enactment.
6
Sec.
16.
APPLICABILITY.
This
Act
applies
to
agreements
7
between
a
company
and
a
governmental
entity
in
effect
or
8
entered
into
on
or
after
the
effective
date
of
this
Act.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
prohibits
the
state
or
political
subdivisions
of
13
the
state
from
entering
into
contracts
with,
or
providing
tax
14
incentives
or
any
other
benefits
to,
certain
companies
that
15
censor
online
content.
16
The
bill
requires
that,
before
public
funds
are
used
for
17
economic
development,
the
public
body
dispensing
the
public
18
funds
shall
consider
whether
a
court
has
found
that
the
person
19
to
whom
the
funds
will
be
dispersed
has
violated
a
provision
20
of
new
Code
chapter
554E,
and
whether
the
person
is
involved
21
in
litigation
in
which
it
has
been
alleged
that
the
person
22
violated
Code
chapter
554E.
23
The
bill
modifies
Code
section
24.17
to
provide
that,
for
24
fiscal
years
beginning
on
or
after
July
1,
2021,
if
a
political
25
subdivision
has
been
found
to
have
violated
new
Code
chapter
26
554E
during
the
12-month
period
prior
to
the
date
taxes
are
27
certified,
the
amount
of
the
political
subdivision’s
budget
28
certified
under
Code
chapter
24
and
the
amount
of
taxes
29
certified
back
to
the
county
auditor
by
the
department
of
30
management
shall
be
reduced
as
described
in
the
bill.
31
The
bill
establishes
new
Code
chapter
554E.
The
bill
32
adds
several
defined
terms
to
the
Code
chapter,
including
33
definitions
for
“company”,
“excessively
violent
content”,
34
“expressive
merchandise”,
“governmental
entity”,
“internet
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site”,
“massive
online
marketplace”,
“massive
online
video
1
sharing
website”,
“massive
social
networking
website”,
2
“monopolistic
entity”,
“obscene
material”,
“pre-installed
3
application
store”,
and
“social
networking
website”.
4
The
bill
prohibits
a
company
from
intentionally
affecting
5
the
ability
of
a
citizen
of
this
state
to
view,
comment,
or
6
otherwise
interact
with
certain
content
on
the
company’s
7
internet
site
by
restricting
such
content.
8
The
bill
prohibits
a
company
from
intentionally
affecting
9
the
ability
of
a
citizen
of
this
state
to
interact
with
10
certain
content
on
the
company’s
internet
site,
restricting
11
the
ability
of
a
citizen
of
this
state
to
download
a
social
12
networking
website
on
a
pre-installed
application
store,
or
13
restricting
the
ability
of
a
citizen
of
this
state
to
purchase
14
any
protected
publication
or
expressive
merchandise
on
a
15
massive
online
marketplace
as
prescribed
in
the
bill.
The
bill
16
provides,
however,
that
a
company
may
restrict
the
ability
17
of
a
citizen
of
this
state
to
interact
with
a
United
States
18
citizen’s
content
on
the
company’s
internet
site
in
certain
19
enumerated
cases.
20
The
bill
requires
a
company
to
provide
its
subscribers,
21
members,
and
users
who
are
citizens
of
this
state
with
22
the
ability
to
opt
out
of
post
promoting
algorithms
and
23
shadow
banning
algorithms
on
the
company’s
massive
online
24
marketplace,
massive
online
video
sharing
website,
or
massive
25
social
networking
website.
The
bill
defines
“post
promoting
26
algorithm”
and
“shadow
banning
algorithm”.
27
The
bill
provides
that
a
court’s
finding
that
a
company
has
28
violated
the
prohibition
on
censorship
shall
be
conclusive
29
proof
of
the
company’s
breach
of
any
agreement
between
the
30
company
and
a
governmental
entity,
and
the
governmental
entity
31
shall
cancel
the
agreement.
32
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
33
has
violated
this
prohibition
on
censorship,
the
company
shall
34
be
prohibited
from
entering
into
any
future
agreement
with
a
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governmental
entity
and
shall
be
prohibited
from
receiving
1
any
future
payment
or
any
other
benefit
from
a
governmental
2
entity.
The
bill
establishes
that
this
begins
on
the
date
of
3
the
court’s
finding
and
shall
extend
for
a
period
of
20
years,
4
unless
a
stay
is
granted
pursuant
to
the
terms
of
Code
section
5
554E.7.
Additionally,
the
bill
establishes
that
this
20-year
6
prohibition
shall
be
reinstated
for
each
subsequent
finding
by
7
a
court
that
a
company
violated
the
prohibition
on
censorship.
8
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
9
has
violated
the
prohibition
on
censorship,
tax
credits;
10
assistance
under
Code
section
15.335B;
sales
tax
exemptions
11
or
refunds;
property
tax
rebates,
refunds,
reimbursements,
or
12
grants
for
property
taxes
paid;
and
any
other
special
benefits
13
previously
claimed
by
the
company
shall
be
recaptured
as
14
provided
in
the
bill.
15
The
bill
provides
that
the
prohibition
on
entering
into
any
16
agreement
with
a
governmental
entity
and
the
requirement
that
17
unearned
amounts
be
returned
to
governmental
entities
shall
not
18
be
stayed
during
appeal
proceedings.
19
The
bill
requires
a
governmental
entity
to
take
certain
20
enumerated
steps
with
respect
to
companies
it
may
have
21
agreements
with
within
30
days
of
the
effective
date
of
this
22
bill.
The
bill
also
requires
a
governmental
entity
to
include
23
in
its
contracts
a
statement
summarizing
the
governmental
24
entity’s
enforcement
rights
under
Code
section
554E.3.
The
25
bill
requires
the
office
of
the
attorney
general
to
develop
a
26
form
describing
these
enforcement
rights
within
seven
days
of
27
the
effective
date
of
the
bill.
28
The
bill
provides
that
if
a
governmental
entity
29
intentionally
violates
Code
chapter
554E,
certain
financial
30
penalties
will
apply.
31
The
bill
requires
the
attorney
general
to
enforce
the
32
provisions
of
Code
chapter
554E.
The
bill
requires
the
33
attorney
general
to
appeal
a
district
court’s
decision
if
a
34
company
prevails
in
the
district
court
in
an
action
under
Code
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chapter
554E.
Additionally,
the
bill
requires
the
attorney
1
general
to
file
an
application
for
further
review
with
the
2
supreme
court
if,
after
the
first
appeal,
the
supreme
court
3
transfers
the
case
to
the
court
of
appeals
and
the
company
4
prevails
in
the
action
before
the
court
of
appeals.
5
The
bill
provides
that,
within
60
days
of
the
effective
6
date
of
the
bill,
the
attorney
general
shall
make
available
on
7
its
internet
site
a
system
to
allow
a
citizen
of
this
state
to
8
report
potential
violations
of
Code
chapter
554E
by
a
company
9
or
by
a
governmental
entity.
The
bill
requires
this
system
10
to
include
several
features.
The
bill
establishes
certain
11
investigative
responsibilities
of
the
attorney
general
with
12
respect
to
reports
submitted
through
this
system.
The
bill
13
requires
the
attorney
general
to
file
suit
in
a
court
of
14
competent
jurisdiction
to
enforce
the
provisions
of
the
Code
15
chapter.
The
bill
requires
the
attorney
general
to
file
suit
16
for
a
violation
of
the
Code
chapter
every
four
years
from
the
17
date
of
the
most
recent
court’s
finding
if
the
attorney
general
18
determines
there
is
reasonable
suspicion
that
a
company
has
19
violated
a
provision
of
the
Code
chapter
at
any
point
during
20
the
four-year
period
after
the
court’s
most
recent
finding.
21
Additionally,
the
bill
requires
the
attorney
general
to
file
22
suit
to
enforce
the
Code
chapter
against
a
governmental
entity
23
every
year
from
the
date
of
the
most
recent
court’s
finding
24
that
the
governmental
entity
has
violated
the
Code
chapter
if
25
the
office
determines
there
is
a
reasonable
suspicion
that
a
26
violation
of
this
chapter
has
occurred
at
any
point
during
the
27
one-year
period
after
the
court’s
most
recent
finding.
The
28
bill
provides
that
all
records
provided
to
the
attorney
general
29
under
Code
section
554E.6
shall
be
kept
confidential
and
are
30
not
subject
to
Code
chapter
22.
31
The
bill
authorizes
companies
that
have
been
found
to
have
32
violated
a
provision
of
Code
chapter
554E
to
petition
the
court
33
for
a
stay
of
the
provisions
of
the
Code
chapter.
The
bill
34
prescribes
when
this
petition
may
be
filed,
how
many
petitions
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may
be
filed,
bonding
requirements,
statements
that
the
1
attorney
general
must
file,
when
a
court
may
grant
the
stay,
2
and
what
occurs
in
the
event
a
company
violates
the
provisions
3
of
this
Code
chapter
again
after
a
stay
has
been
granted.
4
The
bill
establishes
that
governmental
entities
impacted
by
5
an
action
under
Code
chapter
554E
may
intervene
in
an
action
6
under
the
Code
chapter.
Additionally,
the
bill
establishes
7
that
a
citizen
of
this
state
who
has
reported
a
company’s
8
violation
of
the
bill
to
the
attorney
general
may
intervene
9
in
any
action
related
to
that
company
under
the
Code
chapter.
10
The
bill
authorizes
a
citizen
of
this
state
who
has
reported
11
a
company’s
violation
of
the
bill
to
file
suit
to
enforce
the
12
provisions
of
the
Code
chapter
if
the
company
is
not
currently
13
subject
to
the
prohibition
provided
in
Code
section
554E.3,
14
subsection
2,
and
if
the
company’s
potential
violation
of
the
15
Code
chapter
occurred
at
least
30
days
following
the
effective
16
date
of
the
bill.
17
The
bill
may
include
a
state
mandate
as
defined
in
Code
18
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
19
subsection
3,
which
would
relieve
a
political
subdivision
from
20
complying
with
a
state
mandate
if
funding
for
the
cost
of
21
the
state
mandate
is
not
provided
or
specified.
Therefore,
22
political
subdivisions
are
required
to
comply
with
any
state
23
mandate
included
in
the
bill.
24
The
bill
authorizes
the
attorney
general
to
adopt
rules
to
25
administer
and
interpret
Code
chapter
554E.
26
The
bill
requires
the
attorney
general
to
create
a
27
transitional
reporting
system
within
30
days
following
the
28
effective
date
of
the
bill
that
will
operate
until
59
days
29
following
the
effective
date
of
the
bill.
The
bill
requires
30
the
transitional
reporting
system
to
include,
at
a
minimum,
a
31
mechanism
for
the
electronic
submission
of
reports
of
potential
32
violations
of
chapter
554E
and
the
electronic
evidence
33
associated
with
the
potential
violations.
34
The
bill
contains
legislative
findings
and
legislative
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intent
provisions.
The
provisions
provide
that
the
bill
1
should
be
interpreted
broadly
to
prevent
taxpayer
money,
tax
2
incentives,
or
any
other
benefits
from
being
awarded
to
the
3
companies
that
are
the
subject
of
the
bill.
4
The
bill
takes
effect
upon
enactment
and
applies
to
5
agreements
between
a
company
and
a
governmental
entity
in
6
effect
or
entered
into
on
or
after
the
effective
date
of
the
7
bill.
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