Bill Text: IA SF571 | 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.(Formerly SF 402; See SF 580.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-03-16 - Committee report approving bill, renumbered as SF 580. S.J. 605. [SF571 Detail]
Download: Iowa-2021-SF571-Introduced.html
Senate
File
571
-
Introduced
SENATE
FILE
571
BY
COMMITTEE
ON
COMMERCE
(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
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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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.
“Content
generated
by
bots”
means
and
includes
content
9
that
is
created
or
posted
on
an
internet
site
by
a
software
10
application
or
program.
11
3.
“Excessively
violent
content”
means
any
image,
video,
12
or
other
content
that,
taking
the
material
as
a
whole
and
13
applying
contemporary
community
standards
with
respect
to
what
14
is
suitable
for
public
distribution,
meets
all
of
the
following
15
criteria:
16
a.
Depicts
or
involves
killing,
maiming,
dismembering,
or
17
sexually
assaulting
an
individual.
18
b.
Lacks
serious
literary,
scientific,
political,
or
19
artistic
value.
20
4.
“Expressive
merchandise”
means
and
includes
any
tangible
21
personal
property
that
contains
or
displays
a
viewpoint
that
22
constitutes
constitutionally
protected
speech.
23
5.
“Governmental
entity”
means
and
includes
all
of
the
24
following:
25
a.
A
unit
of
state
government
in
the
executive,
legislative,
26
or
judicial
branch.
27
b.
A
political
subdivision
of
the
state,
including
a
city,
28
county,
township,
school
district,
and
any
other
governmental
29
entity
authorized
to
levy
taxes.
30
6.
“Intellectual
property”
means
a
commercially
valuable
31
product
of
the
human
intellect
in
a
concrete
or
abstract
form
32
that
is
protected
by
a
copyright,
trademark,
or
patent.
33
7.
“Internet
site”
means
the
same
as
defined
in
section
4.1.
34
8.
“Massive
online
marketplace”
means
and
includes
an
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internet
site
that
meets
all
of
the
following
criteria:
1
a.
Offers
tangible
personal
property
for
sale
to
the
general
2
public.
3
b.
Sells
or
facilitates
the
sale
of
protected
publications
4
or
expressive
merchandise.
5
c.
Has
at
least
seventy-five
million
subscribers
or
members
6
in
the
United
States
in
the
calendar
year
before
the
date
a
7
court
has
found
by
a
preponderance
of
the
evidence
that
the
8
massive
online
marketplace
violated
this
chapter,
or
has
sold
9
goods
to
at
least
seventy-five
million
individuals
in
the
10
United
States
in
the
calendar
year
before
the
date
a
court
11
has
found
by
a
preponderance
of
the
evidence
that
the
massive
12
online
marketplace
has
violated
a
provision
of
this
chapter.
13
9.
“Massive
online
video
sharing
website”
means
and
includes
14
an
internet
site
that
meets
all
of
the
following
criteria:
15
a.
Allows
users
or
the
public
to
share
videos
with
other
16
users
or
the
public.
17
b.
Hosts,
stores,
provides,
or
otherwise
facilitates
access
18
by
individuals
in
the
United
States.
19
c.
Has
at
least
five
hundred
million
videos
available
at
any
20
point
in
time.
21
10.
“Massive
social
networking
website”
means
and
includes
22
an
internet
site
that
meets
all
of
the
following
criteria:
23
a.
Allows
users,
through
the
creation
of
pages
within
24
the
internet
site
or
profiles
or
by
other
means,
to
provide
25
information
about
themselves
that
is
available
to
the
public
26
or
to
other
users.
27
b.
Allows
users
a
mechanism
for
communication
with
other
28
users.
29
c.
Has
at
least
twenty
million
subscribers
or
members
in
30
the
United
States
in
the
calendar
year
before
the
date
a
court
31
has
found
by
a
preponderance
of
the
evidence
that
the
massive
32
social
networking
website
has
violated
a
provision
of
chapter
33
554E,
or
has
been
used
by
at
least
twenty
million
individuals
34
in
the
United
States
in
the
calendar
year
before
the
date
a
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court
has
found
by
a
preponderance
of
the
evidence
that
the
1
massive
social
networking
website
has
violated
a
provision
of
2
this
chapter.
3
11.
“Monopolistic
entity”
means
a
person
who
owns
or
4
operates
a
social
networking
website,
a
person
who
owns
or
5
operates
an
internet
search
engine,
or
a
person
who
owns
or
6
operates
any
similar
internet
site
that
displays
content
to
its
7
users,
and
to
which
any
of
the
following
apply:
8
a.
The
person,
within
the
ten-year
period
preceding
the
date
9
a
court
has
found
by
a
preponderance
of
the
evidence
that
the
10
person
has
violated
a
provision
of
this
chapter,
has
been
found
11
to
have
violated
any
state
or
federal
antitrust
or
price-fixing
12
law.
13
b.
The
person
is
involved
in
litigation
in
which
the
14
office
of
the
attorney
general
has
alleged
that
the
person
has
15
violated
any
state
or
federal
antitrust
or
price-fixing
law.
16
12.
“Obscene
material”
means
any
material
depicting
or
17
describing
the
genitals,
sex
acts,
masturbation,
excretory
18
functions,
or
sadomasochistic
abuse
which
the
average
person,
19
taking
the
material
as
a
whole
and
applying
contemporary
20
community
standards
with
respect
to
what
is
suitable
material
21
for
minors,
would
find
appeals
to
the
prurient
interest
and
is
22
patently
offensive;
and
the
material,
taken
as
a
whole,
lacks
23
serious
literary,
scientific,
political,
or
artistic
value.
24
13.
“Person”
means
the
same
as
defined
in
section
4.1.
25
14.
“Pornography”
means
and
includes
any
material
depicting
26
or
describing
erotic
behavior
that
is
intended
to
cause
sexual
27
excitement
which
the
average
person,
taking
the
material
as
a
28
whole
and
applying
contemporary
community
standards,
would
find
29
appeals
to
the
prurient
interest
and
is
patently
offensive;
30
and
the
material,
taken
as
a
whole,
lacks
serious
literary,
31
scientific,
political,
or
artistic
value.
32
15.
“Pre-installed
application
store”
means
and
includes
33
any
program,
application,
service,
or
mechanism
that
is
34
pre-installed
on
a
mobile
telephone
or
other
portable
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electronic
communication
device
capable
of
being
used
to
write,
1
send,
or
view
an
electronic
message
that
meets
all
of
the
2
following
criteria:
3
a.
Facilitated
at
least
one
hundred
million
annual
downloads
4
of
programs
or
applications
by
individuals
in
the
United
5
States
in
the
calendar
year
before
the
date
a
court
has
found
6
by
a
preponderance
of
the
evidence
that
the
pre-installed
7
application
store
has
violated
a
provision
of
this
chapter.
8
b.
Facilitated
the
download
of
programs
or
applications
9
that
constitute
a
massive
online
marketplace,
massive
online
10
video
sharing
website,
or
massive
social
networking
website
11
in
the
calendar
year
before
the
date
a
court
has
found
by
12
a
preponderance
of
the
evidence
that
the
pre-installed
13
application
store
has
violated
a
provision
of
this
chapter.
14
16.
“Protected
publication”
means
and
includes
any
15
newspaper,
non-fiction
book,
periodical,
religious
text,
or
any
16
other
publication
that
contains
or
displays
a
viewpoint
that
17
constitutes
constitutionally
protected
speech.
18
17.
“Social
networking
website”
means
and
includes
an
19
internet
site
that
meets
all
of
the
following
criteria:
20
a.
Allows
users,
through
the
creation
of
pages
within
21
the
internet
site
or
profiles
or
by
other
means,
to
provide
22
information
about
themselves
that
is
available
to
the
public
23
or
to
other
users.
24
b.
Allows
users
a
mechanism
for
communication
with
other
25
users.
26
Sec.
4.
NEW
SECTION
.
554E.2
Prohibition
on
censorship
——
27
ability
to
opt
out
of
certain
algorithms.
28
1.
a.
A
company
shall
not
intentionally
affect
the
ability
29
of
a
citizen
of
this
state
to
view,
comment,
or
otherwise
30
interact
with
a
United
States
citizen’s
content
on
the
31
company’s
internet
site
by
limiting,
blocking,
or
otherwise
32
restricting
any
content
on
the
company’s
internet
site
if
the
33
content
constitutes
constitutionally
protected
speech.
34
b.
A
company
shall
not
intentionally
restrict
the
ability
of
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a
citizen
of
this
state
to
download
a
social
networking
website
1
on
a
pre-installed
application
store.
2
c.
A
company
shall
not
intentionally
restrict
the
ability
of
3
a
citizen
of
this
state
to
purchase
any
protected
publication
4
or
expressive
merchandise
on
a
massive
online
marketplace
5
if
similar
protected
publications
or
expressive
merchandise
6
were
allowed
for
sale
on
the
massive
online
marketplace
at
7
the
time
the
company
restricted
the
ability
of
a
citizen
of
8
this
state
to
purchase
the
protected
publication
or
expressive
9
merchandise.
10
2.
Notwithstanding
subsection
1,
a
company
may
do
any
of
the
11
following:
12
a.
Restrict
the
ability
of
a
citizen
of
this
state
to
13
view,
comment,
or
otherwise
interact
with
a
United
States
14
citizen’s
content
on
the
company’s
internet
site
if
the
15
content
is
criminal
in
nature,
if
the
content
does
not
16
constitute
constitutionally
protected
speech,
or
if
the
content
17
constitutes
any
of
the
following:
18
(1)
Obscene
material.
19
(2)
Excessively
violent
content.
20
(3)
Pornography.
21
(4)
Content
generated
by
bots.
22
(5)
Intellectual
property.
23
b.
Restrict
the
ability
of
a
citizen
of
this
state
to
24
download
a
social
networking
website
program
or
application
25
from
a
pre-installed
application
store
if
the
social
networking
26
website
is
being
used
for
criminal
activity
and
the
social
27
networking
website
does
not
have
a
policy
in
place
to
require
28
its
employees
to
notify
law
enforcement
upon
receiving
a
29
complaint
or
otherwise
becoming
aware
of
the
criminal
activity
30
being
discussed
or
conducted
on
its
social
networking
website,
31
or
does
not
have
a
policy
in
place
to
require
its
employees
32
to
refer
the
complaint
or
existence
of
criminal
activity
to
33
designated
employees
that
carry
out
the
policy.
34
c.
Restrict
the
ability
of
a
citizen
of
this
state
to
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download
a
social
networking
website
program
or
application
1
from
a
pre-installed
application
store
if,
within
sixty
days
2
of
the
restriction,
the
United
States
department
of
homeland
3
security
determines
the
social
networking
website
program
or
4
application
constitutes
a
national
security
threat.
5
3.
a.
A
company
shall
provide
its
subscribers,
members,
and
6
users
who
are
citizens
of
this
state
with
the
ability
to
opt
7
out
of
post
promoting
algorithms
and
shadow
banning
algorithms
8
on
the
company’s
massive
online
marketplace,
massive
online
9
video
sharing
website,
or
massive
social
networking
website.
10
b.
For
purposes
of
this
subsection:
11
(1)
“Post
promoting
algorithm”
means
and
includes
the
12
mechanism,
process,
or
set
of
rules
that
is
used
to
sort
the
13
content
that
is
visible
to
a
subscriber,
member,
or
user
based
14
on
data
or
information
possessed,
used,
or
controlled
by
a
15
company
which
relates
to
the
subscriber,
member,
or
user.
16
(2)
“Shadow
banning
algorithm”
means
and
includes
the
17
mechanism,
process,
or
set
of
rules
that
is
used
to
restrict
18
the
visibility
of
a
subscriber’s,
member’s,
or
user’s
content
19
to
other
subscribers,
members,
or
users
in
a
way
that
is
not
20
readily
apparent
to
the
subscriber,
member,
or
user
who
created
21
the
content.
22
Sec.
5.
NEW
SECTION
.
554E.3
Enforcement
——
companies.
23
1.
a.
A
court’s
finding
by
a
preponderance
of
the
evidence
24
that
a
company
has
violated
a
provision
of
this
chapter
shall
25
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
26
regarding
tax
credits;
assistance
under
section
15.335B;
sales
27
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
28
credits,
exemptions,
including
but
not
limited
to
exemptions
29
under
chapter
427,
rebates,
refunds,
reimbursements,
or
30
grants
for
property
taxes
paid
between
the
company
and
a
31
governmental
entity
in
effect
as
of
the
effective
date
of
this
32
Act,
and
the
governmental
entity
shall
cancel
the
agreement
33
effective
as
of
the
date
the
company
receives
the
notice
the
34
governmental
entity
provides
pursuant
to
section
554E.4,
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subsection
1,
paragraph
“b”
,
or
if
the
governmental
entity
1
fails
to
send
the
notice,
the
governmental
entity
shall
cancel
2
the
agreement
effective
thirty
days
after
the
effective
date
3
of
this
Act.
Nothing
in
this
subsection
shall
be
interpreted
4
to
provide
a
company
that
did
not
receive
notice
a
defense
to
5
a
suit
alleging
a
violation
of
this
chapter
or
a
defense
to
6
a
suit
alleging
the
company
breached
an
agreement
with
the
7
governmental
entity.
8
b.
A
court’s
finding
by
a
preponderance
of
the
evidence
9
that
a
company
has
violated
a
provision
of
this
chapter
shall
10
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
11
regarding
tax
credits;
assistance
under
section
15.335B;
sales
12
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
13
credits,
exemptions,
including
but
not
limited
to
exemptions
14
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
15
for
property
taxes
paid
between
the
company
and
a
governmental
16
entity
entered
into
after
the
effective
date
of
this
Act,
and
17
the
governmental
entity
shall
cancel
the
agreement
effective
as
18
of
the
date
of
the
court’s
finding.
19
2.
Notwithstanding
any
other
provision
of
law
to
the
20
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
21
evidence
that
a
company
has
violated
a
provision
of
this
22
chapter,
the
company
shall
be
prohibited
from
entering
into
23
any
future
agreement
with
a
governmental
entity
regarding
24
tax
credits;
assistance
under
section
15.335B;
sales
tax
25
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
and
shall
be
prohibited
from
receiving
29
any
future
payments;
tax
credits;
assistance
under
section
30
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
31
property
tax
credits,
exemptions,
including
but
not
limited
to
32
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
33
or
grants
for
property
taxes
paid.
The
prohibition
provided
in
34
this
subsection
shall
begin
on
the
date
of
the
court’s
finding.
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Except
as
provided
in
section
554E.7,
the
prohibition
shall
1
be
for
a
period
of
twenty
years.
The
twenty-year
prohibition
2
shall
be
reinstated
for
each
subsequent
finding
by
a
court
3
pursuant
to
this
subsection.
4
3.
Notwithstanding
any
other
provision
of
law
to
the
5
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
6
evidence
that
a
company
has
violated
a
provision
of
this
7
chapter
all
of
the
following
shall
apply:
8
a.
Tax
credits;
assistance
from
programs
and
funds
under
9
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
10
423;
or
property
tax
credits,
exemptions,
including
but
not
11
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
12
reimbursements,
or
grants
for
property
taxes
paid
that
were
13
previously
claimed
by
the
company
shall
be
recaptured
or
14
terminated
by
the
governmental
entity.
The
recapture
or
15
termination
of
any
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
that
were
previously
claimed
20
by
the
company
pursuant
to
this
subsection
shall
supersede
21
any
agreement
previously
entered
into
with
the
governmental
22
entity.
Recapture
or
termination
pursuant
to
this
subsection
23
shall
be
accomplished
in
the
same
manner
as
provided
in
section
24
15.330,
subsection
2,
by
the
method
for
resolving
a
breach
25
described
in
the
agreement,
through
court
action,
or
any
other
26
means
determined
by
the
attorney
general
to
result
in
the
most
27
expeditious
recapture
or
termination
of
tax
credits;
assistance
28
under
section
15.335B;
sales
tax
exemptions
or
refunds
under
29
chapter
423;
or
property
tax
credits,
exemptions,
including
but
30
not
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
31
reimbursements,
or
grants
for
property
taxes
paid
that
were
32
previously
claimed
by
the
company.
33
b.
Payments
or
other
quantifiable
benefits
received
but
not
34
earned
by
the
company
shall
be
returned
to
the
governmental
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entity.
1
4.
Upon
a
court’s
finding
by
a
preponderance
of
the
evidence
2
that
a
company
has
violated
a
provision
of
this
chapter,
the
3
prohibition
provided
in
subsection
1
and
the
return
of
received
4
but
not
earned
amounts
provided
in
subsection
3
shall
not
be
5
stayed
during
appeal
proceedings.
6
Sec.
6.
NEW
SECTION
.
554E.4
Inventory
of
agreements
with
7
companies
——
obligations.
8
1.
Within
thirty
days
following
the
effective
date
of
this
9
Act,
a
governmental
entity
shall
do
all
of
the
following:
10
a.
Conduct
a
review
of
currently
effective
agreements;
11
tax
credits;
assistance
under
section
15.335B;
sales
tax
12
exemptions
or
refunds
under
chapter
423;
or
property
tax
13
credits,
exemptions,
including
but
not
limited
to
exemptions
14
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
15
for
property
taxes
paid
that
were
provided
by
the
governmental
16
entity
beginning
January
1,
2001,
through
the
effective
date
17
of
this
Act,
to
determine
if
any
agreements,
tax
credits;
18
assistance
under
section
15.335B;
sales
tax
exemptions
or
19
refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
20
including
but
not
limited
to
exemptions
under
chapter
427,
21
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
22
paid
were
entered
into
with,
or
provided
to,
a
company.
23
b.
Provide
notice
to
a
company
on
the
form
provided
by
the
24
office
of
the
attorney
general
pursuant
to
subsection
3,
of
25
the
governmental
entity’s
rights
pursuant
to
section
554E.3
by
26
certified
mail
return
receipt
requested
if
the
governmental
27
entity
determines
pursuant
to
subsection
1
that
a
currently
28
effective
agreement;
tax
credit;
assistance
under
section
29
15.335B;
sales
tax
exemption
or
refund
under
chapter
423;
or
30
property
tax
credit,
exemption,
including
but
not
limited
to
31
an
exemption
under
chapter
427,
rebate,
refund,
reimbursement,
32
or
grant
for
property
taxes
paid
was
entered
into
with,
or
33
provided
to,
the
company
beginning
January
1,
2001,
through
the
34
effective
date
of
this
Act.
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c.
Provide
the
office
of
the
attorney
general
with
copies
of
1
the
notice
and
receipt
of
delivery
provided
in
subsection
2.
2
2.
A
governmental
entity
shall
include
all
of
the
following
3
in
agreements
to
which
it
is
a
party
entered
into
on
or
after
4
the
effective
date
of
this
Act:
5
a.
A
statement
summarizing
the
governmental
entity’s
6
enforcement
rights
under
section
554E.3
with
respect
to
7
agreements
related
to
tax
credits;
assistance
under
section
8
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
and
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.
12
b.
A
provision
stating
that
any
agreement
between
the
13
governmental
entity
and
a
company
subject
to
section
554E.3
14
that
does
not
relate
to
tax
credits;
assistance
under
section
15
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
16
property
tax
credits,
exemptions,
including
but
not
limited
to
17
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
18
or
grants
for
property
taxes
paid
may
be
canceled
at
the
19
governmental
entity’s
discretion
within
ninety
days
after
a
20
court’s
finding
by
a
preponderance
of
the
evidence
that
the
21
company
has
violated
a
provision
of
this
chapter.
22
3.
The
office
of
the
attorney
general
shall
develop
and
23
provide
to
governmental
entities
a
form
to
be
used
for
the
24
notice
provided
in
subsection
2
within
seven
days
of
the
25
effective
date
of
this
Act.
26
Sec.
7.
NEW
SECTION
.
554E.5
Enforcement
——
governmental
27
entities.
28
Notwithstanding
any
other
provision
of
law
to
the
contrary,
29
upon
a
court’s
finding
by
a
preponderance
of
the
evidence
30
that
a
governmental
entity
intentionally
violated
a
provision
31
of
this
chapter,
including
but
not
limited
to
by
making
32
payments
or
providing
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
in
violation
of
section
2
554E.3,
all
of
the
following
shall
apply:
3
1.
The
governmental
entity’s
certified
budget
and
amount
of
4
taxes
certified
shall
be
reduced
as
provided
in
section
24.17,
5
subsection
2,
paragraph
“b”
.
6
2.
If
the
governmental
entity
receives
an
appropriation,
7
the
governmental
entity’s
portion
of
each
appropriation
in
the
8
fiscal
year
of
the
court’s
finding
of
an
intentional
violation
9
shall
be
reduced
by
ten
percent.
If
the
governmental
entity
10
fails
to
remedy
the
violation
of
this
chapter
prior
to
the
11
beginning
of
the
subsequent
fiscal
year,
the
governmental
12
entity’s
portion
of
each
appropriation
made
by
the
general
13
assembly
for
the
subsequent
fiscal
year
shall
be
reduced
by
a
14
percentage
equal
to
the
percentage
reduction
for
the
preceding
15
fiscal
year
plus
five
percent.
All
appropriation
amounts
16
reduced
pursuant
to
this
section
shall
be
transferred
to
the
17
fund
from
which
they
were
appropriated.
18
Sec.
8.
NEW
SECTION
.
554E.6
Obligations
of
the
office
of
19
the
attorney
general.
20
1.
The
office
of
the
attorney
general
shall
enforce
21
the
provisions
of
this
chapter,
including
in
all
appeal
22
proceedings.
23
a.
The
office
of
the
attorney
general
shall
appeal
a
24
district
court’s
decision
if
a
company
prevails
in
the
district
25
court
in
an
action
under
this
chapter.
26
b.
The
office
of
the
attorney
general
shall
file
an
27
application
for
further
review
with
the
supreme
court
if,
after
28
the
appeal
provided
in
paragraph
“a”
,
the
supreme
court
issues
29
an
order
of
transfer
and
transfers
the
case
to
the
court
of
30
appeals
and
the
company
prevails
in
the
action
before
the
court
31
of
appeals.
32
c.
When
an
appeal
is
taken
by
the
office
of
the
attorney
33
general,
the
office
shall
not
be
required
to
give
an
appeal
34
bond
or
security
for
costs.
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2.
a.
Within
sixty
days
following
the
effective
date
1
of
this
Act,
the
office
of
the
attorney
general
shall
make
2
available
on
its
internet
site
a
system
to
allow
a
citizen
of
3
this
state
to
report
potential
violations
of
this
chapter
by
a
4
company
or
by
a
governmental
entity
to
the
office.
5
b.
The
system
required
pursuant
to
paragraph
“a”
shall
6
include
all
of
the
following:
7
(1)
A
mechanism
for
the
electronic
submission
of
8
photographs
or
other
evidence
of
a
company’s
potential
9
violation
of
this
chapter.
10
(2)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
11
number
of
complaints
received
by
the
office
of
the
attorney
12
general
related
to
the
number
of
potential
violations
of
this
13
chapter
by
companies
and
governmental
entities.
In
addition
14
to
the
current
year’s
accounting,
the
system
shall
display
15
annual
accountings
required
by
this
subparagraph
for
the
years
16
preceding
the
current
calendar
year.
17
(3)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
18
number
of
investigations
required
pursuant
to
subsections
3
19
and
4
in
which
the
office
of
the
attorney
general
determines
20
there
is
a
reasonable
suspicion
that
a
company
or
governmental
21
entity
violated
this
chapter.
In
addition
to
the
current
22
year’s
accounting,
the
system
shall
display
annual
accountings
23
required
by
this
subparagraph
for
the
years
preceding
the
24
current
calendar
year.
25
(4)
A
list
of
the
companies
that
a
court
has
found
by
a
26
preponderance
of
the
evidence
have
violated
this
chapter.
27
(5)
A
list
of
the
governmental
entities
that
a
court
has
28
found
by
a
preponderance
of
the
evidence
have
violated
this
29
chapter.
30
(6)
A
mechanism
to
ensure
that
the
person
submitting
the
31
report
is
a
citizen
of
this
state.
32
3.
Notwithstanding
subsection
5,
the
office
of
the
attorney
33
general
shall
complete
the
investigation
of
a
report
received
34
pursuant
to
subsection
2
within
thirty
days
of
the
receipt
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of
the
report
if
the
report
included
a
photograph
or
other
1
evidence
that,
in
the
opinion
of
the
office,
indicates
a
2
company’s
potential
violation
of
this
chapter.
3
4.
The
office
of
the
attorney
general
shall
contact
a
person
4
who
submits
a
report
pursuant
to
subsection
2
related
to
a
5
company’s
potential
violation
of
this
chapter
that
did
not
6
contain
a
photograph
or
other
evidence
within
seven
days
of
7
the
receipt
of
the
report
and
inform
the
person
of
one
of
the
8
following:
9
a.
The
office
will
investigate
the
report,
in
which
case
the
10
office
shall
complete
the
investigation
within
thirty
days
of
11
the
receipt
of
the
report.
12
b.
The
person
has
thirty
days
to
provide
the
office
with
13
a
photograph
or
other
evidence
that
indicates
a
potential
14
violation
of
this
chapter,
in
which
case
the
office
shall
15
complete
the
investigation
within
thirty
days
of
the
receipt
of
16
the
photograph
or
other
evidence.
17
5.
a.
Upon
completion
of
an
investigation
in
which
18
the
office
of
the
attorney
general
determines
there
is
a
19
reasonable
suspicion
that
a
company
or
governmental
entity
has
20
violated
this
chapter,
the
office
shall
file
suit
in
a
court
21
of
competent
jurisdiction
to
enforce
the
provisions
of
this
22
chapter.
23
b.
The
office
of
the
attorney
general
shall
file
suit
for
a
24
violation
of
this
chapter
every
four
years
from
the
date
of
the
25
most
recent
court’s
finding
if
the
office
determines
there
is
26
reasonable
suspicion
that
a
company
has
violated
this
chapter
27
at
any
point
during
the
four-year
period
after
the
court’s
most
28
recent
finding.
29
c.
The
office
of
the
attorney
general
shall
file
suit
to
30
enforce
this
chapter
against
a
governmental
entity
every
year
31
from
the
date
of
the
most
recent
court’s
finding
that
the
32
governmental
entity
has
violated
this
chapter
if
the
office
33
determines
there
is
reasonable
suspicion
that
a
violation
of
34
this
chapter
has
occurred
at
any
point
during
the
one-year
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period
after
the
court’s
most
recent
finding.
1
6.
All
records
provided
to
the
office
of
the
attorney
2
general
pursuant
to
this
section
shall
be
kept
confidential
and
3
are
not
subject
to
chapter
22.
4
Sec.
9.
NEW
SECTION
.
554E.7
Petition
for
stay.
5
1.
No
sooner
than
four
years
after
a
court’s
finding
that
6
a
company
violated
a
provision
of
this
chapter
pursuant
to
7
section
554E.3,
the
company
may
petition
the
court
for
a
stay
8
of
the
provisions
of
section
554E.3,
subsection
1.
9
2.
At
the
time
the
company
petitions
the
court
for
a
stay
10
pursuant
to
subsection
1,
the
company
shall
file
with
the
court
11
a
bond
payable
to
the
state
in
an
amount
deemed
necessary
by
12
the
office
of
the
attorney
general.
13
3.
Within
thirty
days
after
a
company
files
a
petition
for
14
a
stay
pursuant
to
subsection
1,
the
office
of
the
attorney
15
general
shall
file
with
the
court
a
statement
indicating
any
16
reports
received
under
section
554E.6,
subsection
2,
related
17
to
the
company
from
the
date
of
the
court’s
finding
that
18
the
company
violated
a
provision
of
this
chapter
pursuant
to
19
section
554E.3
through
the
date
the
company
filed
the
petition
20
for
a
stay.
21
4.
The
court
shall
grant
the
petition
for
stay
filed
22
pursuant
to
subsection
1
if
it
finds
that
the
company
did
not
23
violate
the
provisions
of
this
chapter
from
the
date
of
the
24
court’s
finding
that
the
company
violated
a
provision
of
this
25
chapter
pursuant
to
section
554E.3
through
the
date
the
company
26
filed
the
petition
for
a
stay.
27
a.
Beginning
one
year
after
the
court
grants
the
petition
28
for
stay
pursuant
to
this
subsection,
the
company
shall
29
annually
file
with
the
court
an
additional
bond
in
the
amount
30
of
any
payments;
tax
credits;
assistance
under
section
31
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
32
property
tax
credits,
exemptions,
including
but
not
limited
to
33
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
34
or
grants
for
property
taxes
paid
the
company
received
from
the
35
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state
during
the
previous
year.
1
b.
A
governmental
entity
shall
not
provide
the
company
2
with
any
tax
credits;
assistance
under
section
15.335B;
sales
3
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
4
credits,
exemptions,
including
but
not
limited
to
exemptions
5
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
6
for
property
taxes
paid,
until
the
company
has
satisfied
the
7
requirements
in
paragraph
“a”
for
the
previous
year.
8
5.
The
company
shall
be
permanently
prohibited
from
9
entering
into
any
agreement
regarding
tax
credits;
assistance
10
under
section
15.335B;
sales
tax
exemptions
or
refunds
under
11
chapter
423;
or
property
tax
credits,
exemptions,
including
12
but
not
limited
to
exemptions
under
chapter
427,
rebates,
13
refunds,
reimbursements,
or
grants
for
property
taxes
paid
with
14
a
governmental
entity
and
shall
be
permanently
prohibited
from
15
receiving
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
from
a
governmental
entity
20
if
the
company
violates
a
provision
of
this
chapter
after
a
21
court
has
granted
the
company’s
petition
for
stay
pursuant
to
22
this
section
and
before
the
end
of
the
twenty-year
prohibition
23
provided
in
section
554E.3,
subsection
1.
24
6.
The
amount
of
any
bond
forfeited
under
this
section
shall
25
be
deposited
in
the
general
fund
of
the
state.
26
7.
A
company
shall
not
file
more
than
one
petition
for
27
a
stay
of
the
provisions
of
section
554E.3,
subsection
1,
28
during
the
twenty-year
prohibition
provided
in
section
554E.3,
29
subsection
1.
30
8.
Nothing
in
this
section
shall
be
construed
to
limit
the
31
authority
of
the
office
of
the
attorney
general
under
section
32
554E.6
to
investigate
potential
violations
of
this
chapter
or
33
file
suit
to
enforce
the
provisions
of
this
chapter.
34
Sec.
10.
NEW
SECTION
.
554E.8
Right
to
intervene
——
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enforcement
by
citizens
of
this
state.
1
1.
A
governmental
entity
impacted
by
an
action
under
this
2
chapter
may
intervene
in
any
action
under
this
chapter.
3
2.
A
citizen
of
this
state
who
has
reported
a
company’s
4
potential
violation
of
this
chapter
pursuant
to
section
554E.6
5
may
intervene
in
any
action
related
to
the
company
under
this
6
chapter.
7
3.
Notwithstanding
section
554E.6,
subsection
1,
a
citizen
8
of
this
state
who
has
reported
a
company’s
potential
violation
9
of
this
chapter
pursuant
to
section
554E.6
may
file
suit
in
a
10
court
of
competent
jurisdiction
to
enforce
the
provisions
of
11
this
chapter
if
the
company
is
not
currently
subject
to
the
12
prohibition
provided
in
section
554E.3,
subsection
2,
and
if
13
the
company’s
potential
violation
of
this
chapter
occurred
at
14
least
thirty
days
following
the
effective
date
of
this
Act.
15
Sec.
11.
NEW
SECTION
.
554E.9
Rules.
16
The
office
of
the
attorney
general
shall
adopt
rules
17
pursuant
to
chapter
17A
to
administer
and
interpret
this
18
chapter.
19
Sec.
12.
TRANSITIONAL
COMPLAINT
REPORTING
SYSTEM.
Within
20
thirty
days
following
the
effective
date
of
this
Act,
and
until
21
fifty-nine
days
following
the
effective
date
of
this
Act,
the
22
office
of
the
attorney
general
shall
make
available
on
its
23
internet
site
a
transitional
system
to
allow
a
citizen
of
24
this
state
to
report
potential
violations
of
chapter
554E
by
25
a
company
or
a
governmental
entity
to
the
office.
The
system
26
shall
include,
at
a
minimum,
a
mechanism
for
the
electronic
27
submission
of
reports
of
potential
violations
of
chapter
554E
28
and
the
electronic
evidence
associated
with
the
potential
29
violations.
30
Sec.
13.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
31
3,
shall
not
apply
to
this
Act.
32
Sec.
14.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
33
immediate
importance,
takes
effect
upon
enactment.
34
Sec.
15.
APPLICABILITY.
This
Act
applies
to
agreements
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between
a
company
and
a
governmental
entity
in
effect
or
1
entered
into
on
or
after
the
effective
date
of
this
Act.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
This
bill
prohibits
the
state
or
political
subdivisions
of
6
the
state
from
entering
into
contracts
with,
or
providing
tax
7
incentives
or
other
benefits
to,
certain
companies
that
censor
8
online
content.
9
The
bill
requires
that,
before
public
funds
are
used
for
10
economic
development,
the
public
body
dispensing
the
public
11
funds
shall
consider
whether
a
court
has
found
that
the
person
12
to
whom
the
funds
will
be
dispersed
has
violated
a
provision
13
of
new
Code
chapter
554E,
and
whether
the
person
is
involved
14
in
litigation
in
which
it
has
been
alleged
that
the
person
15
violated
Code
chapter
554E.
16
The
bill
modifies
Code
section
24.17
to
provide
that,
for
17
fiscal
years
beginning
on
or
after
July
1,
2021,
if
a
political
18
subdivision
has
been
found
to
have
violated
new
Code
chapter
19
554E
during
the
12-month
period
prior
to
the
date
taxes
are
20
certified,
the
amount
of
the
political
subdivision’s
budget
21
certified
under
Code
chapter
24
and
the
amount
of
taxes
22
certified
back
to
the
county
auditor
by
the
department
of
23
management
shall
be
reduced
as
described
in
the
bill.
24
The
bill
establishes
new
Code
chapter
554E.
The
bill
25
adds
several
defined
terms
to
the
Code
chapter,
including
26
definitions
for
“company”,
“content
generated
by
bots”,
27
“excessively
violent
content”,
“expressive
merchandise”,
28
“governmental
entity”,
“intellectual
property”,
“internet
29
site”,
“massive
online
marketplace”,
“massive
online
video
30
sharing
website”,
“massive
social
networking
website”,
31
“monopolistic
entity”,
“obscene
material”,
“pornography”,
32
“pre-installed
application
store”,
and
“social
networking
33
website”.
34
The
bill
prohibits
a
company
from
intentionally
affecting
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the
ability
of
a
citizen
of
this
state
to
view,
comment,
or
1
otherwise
interact
with
certain
content
on
the
company’s
2
internet
site
by
restricting
such
content.
3
The
bill
prohibits
a
company
from
intentionally
affecting
4
the
ability
of
a
citizen
of
this
state
to
interact
with
5
certain
content
on
the
company’s
internet
site,
restricting
6
the
ability
of
a
citizen
of
this
state
to
download
a
social
7
networking
website
on
a
pre-installed
application
store,
or
8
restricting
the
ability
of
a
citizen
of
this
state
to
purchase
9
any
protected
publication
or
expressive
merchandise
on
a
10
massive
online
marketplace
as
prescribed
in
the
bill.
The
bill
11
provides,
however,
that
a
company
may
restrict
the
ability
12
of
a
citizen
of
this
state
to
interact
with
a
United
States
13
citizen’s
content
on
the
company’s
internet
site
in
certain
14
enumerated
cases.
15
The
bill
requires
a
company
to
provide
its
subscribers,
16
members,
and
users
who
are
citizens
of
this
state
with
17
the
ability
to
opt
out
of
post
promoting
algorithms
and
18
shadow
banning
algorithms
on
the
company’s
massive
online
19
marketplace,
massive
online
video
sharing
website,
or
massive
20
social
networking
website.
The
bill
defines
“post
promoting
21
algorithm”
and
“shadow
banning
algorithm”.
22
The
bill
provides
that
a
court’s
finding
that
a
company
has
23
violated
the
prohibition
on
censorship
shall
be
conclusive
24
proof
of
the
company’s
breach
of
any
agreement
between
the
25
company
and
a
governmental
entity,
and
the
governmental
entity
26
shall
cancel
the
agreement
effective
as
of
the
date
described
27
in
the
bill.
28
The
bill
provides
that,
upon
a
court’s
finding
that
a
29
company
has
violated
this
prohibition
on
censorship,
the
30
company
shall
be
prohibited
from
entering
into
any
future
31
agreement
with
a
governmental
entity
and
shall
be
prohibited
32
from
receiving
any
future
payment
from
a
governmental
entity.
33
The
bill
establishes
that
this
begins
on
the
date
of
the
34
court’s
finding
and
shall
extend
for
a
period
of
20
years,
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unless
a
stay
is
granted
pursuant
to
the
terms
of
Code
section
1
554E.7.
Additionally,
the
bill
establishes
that
this
20-year
2
prohibition
shall
be
reinstated
for
each
subsequent
finding
by
3
a
court
that
a
company
violated
the
prohibition
on
censorship.
4
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
5
has
violated
the
prohibition
on
censorship,
tax
credits;
6
assistance
under
Code
section
15.335B;
sales
tax
exemptions
or
7
refunds;
or
property
tax
rebates,
refunds,
reimbursements,
or
8
grants
for
property
taxes
paid
that
were
previously
claimed
by
9
the
company
shall
be
recaptured
as
provided
in
the
bill.
10
The
bill
provides
that
the
prohibition
on
entering
into
any
11
agreement
with
a
governmental
entity
and
the
requirement
that
12
unearned
amounts
be
returned
to
governmental
entities
shall
not
13
be
stayed
during
appeal
proceedings.
14
The
bill
requires
a
governmental
entity
to
take
certain
15
enumerated
steps
with
respect
to
companies
it
may
have
16
agreements
with
within
30
days
of
the
effective
date
of
the
17
bill.
The
bill
also
requires
a
governmental
entity
to
include
18
in
its
contracts
certain
statements
and
provisions
related
to
19
the
governmental
entity’s
enforcement
rights
under
Code
section
20
554E.3.
The
bill
requires
the
office
of
the
attorney
general
21
to
develop
a
form
describing
these
enforcement
rights
within
22
seven
days
of
the
effective
date
of
the
bill.
23
The
bill
provides
that
if
a
governmental
entity
24
intentionally
violates
Code
chapter
554E,
certain
financial
25
penalties
will
apply.
26
The
bill
requires
the
attorney
general
to
enforce
the
27
provisions
of
Code
chapter
554E.
The
bill
requires
the
28
attorney
general
to
appeal
a
district
court’s
decision
if
a
29
company
prevails
in
the
district
court
in
an
action
under
Code
30
chapter
554E.
Additionally,
the
bill
requires
the
attorney
31
general
to
file
an
application
for
further
review
with
the
32
supreme
court
if,
after
the
first
appeal,
the
supreme
court
33
transfers
the
case
to
the
court
of
appeals
and
the
company
34
prevails
in
the
action
before
the
court
of
appeals.
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The
bill
provides
that,
within
60
days
of
the
effective
1
date
of
the
bill,
the
attorney
general
shall
make
available
on
2
its
internet
site
a
system
to
allow
a
citizen
of
this
state
to
3
report
potential
violations
of
Code
chapter
554E
by
a
company
4
or
by
a
governmental
entity.
The
bill
requires
this
system
5
to
include
several
features.
The
bill
establishes
certain
6
investigative
responsibilities
of
the
attorney
general
with
7
respect
to
reports
submitted
through
this
system.
The
bill
8
requires
the
attorney
general
to
file
suit
in
a
court
of
9
competent
jurisdiction
to
enforce
the
provisions
of
the
Code
10
chapter.
The
bill
requires
the
attorney
general
to
file
suit
11
for
a
violation
of
the
Code
chapter
every
four
years
from
the
12
date
of
the
most
recent
court’s
finding
if
the
attorney
general
13
determines
there
is
reasonable
suspicion
that
a
company
has
14
violated
a
provision
of
the
Code
chapter
at
any
point
during
15
the
four-year
period
after
the
court’s
most
recent
finding.
16
Additionally,
the
bill
requires
the
attorney
general
to
file
17
suit
to
enforce
the
Code
chapter
against
a
governmental
entity
18
every
year
from
the
date
of
the
most
recent
court’s
finding
19
that
the
governmental
entity
has
violated
the
Code
chapter
if
20
the
office
determines
there
is
a
reasonable
suspicion
that
a
21
violation
of
this
chapter
has
occurred
at
any
point
during
the
22
one-year
period
after
the
court’s
most
recent
finding.
The
23
bill
provides
that
all
records
provided
to
the
attorney
general
24
under
Code
section
554E.6
shall
be
kept
confidential
and
are
25
not
subject
to
Code
chapter
22.
26
The
bill
authorizes
companies
that
have
been
found
to
have
27
violated
a
provision
of
Code
chapter
554E
to
petition
the
court
28
for
a
stay
of
the
provisions
of
the
Code
chapter.
The
bill
29
prescribes
when
this
petition
may
be
filed,
how
many
petitions
30
may
be
filed,
bonding
requirements,
statements
that
the
31
attorney
general
must
file,
when
a
court
may
grant
the
stay,
32
and
what
occurs
in
the
event
a
company
violates
the
provisions
33
of
this
Code
chapter
again
after
a
stay
has
been
granted.
34
The
bill
establishes
that
governmental
entities
impacted
by
35
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an
action
under
Code
chapter
554E
may
intervene
in
an
action
1
under
the
Code
chapter.
Additionally,
the
bill
establishes
2
that
a
citizen
of
this
state
who
has
reported
a
company’s
3
violation
of
the
bill
to
the
attorney
general
may
intervene
4
in
any
action
related
to
that
company
under
the
Code
chapter.
5
The
bill
authorizes
a
citizen
of
this
state
who
has
reported
6
a
company’s
violation
of
the
bill
to
file
suit
to
enforce
the
7
provisions
of
the
Code
chapter
if
the
company
is
not
currently
8
subject
to
the
prohibition
provided
in
Code
section
554E.3,
9
subsection
2,
and
if
the
company’s
potential
violation
of
the
10
Code
chapter
occurred
at
least
30
days
following
the
effective
11
date
of
the
bill.
12
The
bill
may
include
a
state
mandate
as
defined
in
Code
13
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
14
subsection
3,
which
would
relieve
a
political
subdivision
from
15
complying
with
a
state
mandate
if
funding
for
the
cost
of
16
the
state
mandate
is
not
provided
or
specified.
Therefore,
17
political
subdivisions
are
required
to
comply
with
any
state
18
mandate
included
in
the
bill.
19
The
bill
authorizes
the
attorney
general
to
adopt
rules
to
20
administer
and
interpret
Code
chapter
554E.
21
The
bill
requires
the
attorney
general
to
create
a
22
transitional
reporting
system
within
30
days
following
the
23
effective
date
of
the
bill
that
will
operate
until
59
days
24
following
the
effective
date
of
the
bill.
The
bill
requires
25
the
transitional
reporting
system
to
include,
at
a
minimum,
a
26
mechanism
for
the
electronic
submission
of
reports
of
potential
27
violations
of
chapter
554E
and
the
electronic
evidence
28
associated
with
the
potential
violations.
29
The
bill
takes
effect
upon
enactment
and
applies
to
30
agreements
between
a
company
and
a
governmental
entity
in
31
effect
or
entered
into
on
or
after
the
effective
date
of
the
32
bill.
33
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