Read the full stored bill text
House
File
451
-
Introduced
HOUSE
FILE
451
BY
STONE
A
BILL
FOR
An
Act
prohibiting
the
state
or
a
political
subdivision
of
the
1
state
from
entering
into
contracts
with,
or
providing
tax
2
incentives
or
specified
benefits
to,
certain
companies
that
3
censor
online
content,
and
including
effective
date
and
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
15A.1,
subsection
2,
Code
2025,
is
1
amended
by
adding
the
following
new
paragraphs:
2
NEW
PARAGRAPH
.
e.
Whether
a
court
has
found
by
a
3
preponderance
of
the
evidence
that
the
person
to
whom
the
funds
4
will
be
disbursed
has
violated
a
provision
of
chapter
554I.
5
NEW
PARAGRAPH
.
f.
Whether
the
person
to
whom
the
funds
will
6
be
disbursed
is
involved
in
litigation
in
which
it
has
been
7
alleged
that
the
person
has
violated
a
provision
of
chapter
8
554I.
9
Sec.
2.
Section
24.17,
subsection
2,
Code
2025,
is
amended
10
to
read
as
follows:
11
2.
a.
One
copy
of
the
budget
shall
be
retained
on
file
12
in
the
office
by
the
county
auditor
and
the
other
shall
be
13
certified
by
the
county
auditor
to
the
state
board.
The
14
department
of
management
shall
certify
the
taxes
back
to
the
15
county
auditor
by
June
15.
16
b.
For
budgets
for
fiscal
years
beginning
on
or
after
17
July
1,
2025,
if
a
political
subdivision
that
is
a
city,
18
county,
school
district,
or
township
has
been
found
to
have
19
intentionally
violated
a
provision
of
chapter
554I
during
the
20
twelve-month
period
prior
to
the
date
taxes
are
certified
back
21
to
the
county
auditor
under
paragraph
“a”
,
the
amount
of
the
22
political
subdivision’s
budget
certified
under
this
chapter
and
23
the
amount
of
taxes
certified
back
to
the
county
auditor
by
the
24
department
of
management,
including
any
amounts
received
as
25
replacement
taxes
under
chapter
437A
or
437B,
shall
be
reduced
26
by
ten
percent.
Once
a
political
subdivision
has
been
found
27
to
have
violated
a
provision
of
chapter
554I
and
the
amount
28
of
the
political
subdivision’s
budget
certified
under
this
29
chapter
and
the
amount
of
taxes
certified
back
to
the
county
30
auditor
by
the
department
of
management,
including
any
amounts
31
received
as
replacement
taxes
under
chapter
437A
or
437B,
have
32
been
reduced
by
ten
percent,
if
the
political
subdivision
fails
33
to
remedy
the
violation
of
chapter
554I
prior
to
January
31
of
34
any
subsequent
fiscal
year,
the
percentage
reduction
of
the
35
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political
subdivision’s
budget
certified
under
this
chapter
1
and
the
amount
of
taxes
certified
back
by
the
department
of
2
revenue,
including
any
amounts
received
as
replacement
taxes
3
under
chapter
437A
or
437B,
shall
be
reduced
by
a
percentage
4
equal
to
the
total
reduction
for
the
preceding
fiscal
year
plus
5
five
percent.
6
Sec.
3.
NEW
SECTION
.
554I.1
Definitions.
7
As
used
in
this
chapter,
unless
the
context
otherwise
8
requires:
9
1.
“Company”
means
and
includes
a
person
or
an
affiliate
of
10
a
person
who
owns
or
operates
any
of
the
following:
11
a.
A
massive
online
marketplace.
12
b.
A
massive
online
video
sharing
website.
13
c.
A
massive
social
networking
website.
14
d.
A
monopolistic
entity.
15
e.
A
pre-installed
application
store.
16
2.
“Content
generated
by
bots”
means
and
includes
content
17
that
is
created
or
posted
on
an
internet
site
by
a
software
18
application
or
program.
19
3.
“Excessively
violent
content”
means
any
image,
video,
20
or
other
content
that,
taking
the
material
as
a
whole
and
21
applying
contemporary
community
standards
with
respect
to
what
22
is
suitable
for
public
distribution,
meets
all
of
the
following
23
criteria:
24
a.
Depicts
or
involves
killing,
maiming,
dismembering,
or
25
sexually
assaulting
an
individual.
26
b.
Lacks
serious
literary,
scientific,
political,
or
27
artistic
value.
28
4.
“Expressive
merchandise”
means
and
includes
any
tangible
29
personal
property
that
contains
or
displays
a
viewpoint
that
30
constitutes
constitutionally
protected
speech.
31
5.
“Governmental
entity”
means
and
includes
all
of
the
32
following:
33
a.
A
unit
of
state
government
in
the
executive,
legislative,
34
or
judicial
branch.
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b.
A
political
subdivision
of
the
state,
including
a
city,
1
county,
township,
school
district,
and
any
other
governmental
2
entity
authorized
to
levy
taxes.
3
6.
“Intellectual
property”
means
a
commercially
valuable
4
product
of
the
human
intellect
in
a
concrete
or
abstract
form
5
that
is
protected
by
a
copyright,
trademark,
or
patent.
6
7.
“Massive
online
marketplace”
means
and
includes
an
7
internet
site
that
meets
all
of
the
following
criteria:
8
a.
Offers
tangible
personal
property
for
sale
to
the
general
9
public.
10
b.
Sells
or
facilitates
the
sale
of
protected
publications
11
or
expressive
merchandise.
12
c.
Has
at
least
seventy-five
million
subscribers
or
members
13
in
the
United
States
in
the
calendar
year
before
the
date
a
14
court
has
found
by
a
preponderance
of
the
evidence
that
the
15
massive
online
marketplace
violated
this
chapter,
or
has
sold
16
goods
to
at
least
seventy-five
million
individuals
in
the
17
United
States
in
the
calendar
year
before
the
date
a
court
18
has
found
by
a
preponderance
of
the
evidence
that
the
massive
19
online
marketplace
has
violated
a
provision
of
this
chapter.
20
8.
“Massive
online
video
sharing
website”
means
and
includes
21
an
internet
site
that
meets
all
of
the
following
criteria:
22
a.
Allows
users
or
the
public
to
share
videos
with
other
23
users
or
the
public.
24
b.
Hosts,
stores,
provides,
or
otherwise
facilitates
access
25
by
individuals
in
the
United
States.
26
c.
Has
at
least
five
hundred
million
videos
available
at
any
27
point
in
time.
28
9.
“Massive
social
networking
website”
means
and
includes
an
29
internet
site
that
meets
all
of
the
following
criteria:
30
a.
Allows
users,
through
the
creation
of
pages
within
31
the
internet
site
or
profiles
or
by
other
means,
to
provide
32
information
about
themselves
that
is
available
to
the
public
33
or
to
other
users.
34
b.
Allows
users
a
mechanism
for
communication
with
other
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users.
1
c.
Has
at
least
twenty
million
subscribers
or
members
2
in
the
United
States
in
the
calendar
year
before
the
date
a
3
court
has
found
by
a
preponderance
of
the
evidence
that
the
4
massive
social
networking
website
has
violated
a
provision
5
of
this
chapter,
or
has
been
used
by
at
least
twenty
million
6
individuals
in
the
United
States
in
the
calendar
year
before
7
the
date
a
court
has
found
by
a
preponderance
of
the
evidence
8
that
the
massive
social
networking
website
has
violated
a
9
provision
of
this
chapter.
10
10.
“Monopolistic
entity”
means
a
person
who
owns
or
11
operates
a
social
networking
website,
a
person
who
owns
or
12
operates
an
internet
search
engine,
or
a
person
who
owns
or
13
operates
any
similar
internet
site
that
displays
content
to
its
14
users,
and
to
which
any
of
the
following
apply:
15
a.
The
person,
within
the
ten-year
period
preceding
the
date
16
a
court
has
found
by
a
preponderance
of
the
evidence
that
the
17
person
has
violated
a
provision
of
this
chapter,
has
been
found
18
to
have
violated
any
state
or
federal
antitrust
or
price-fixing
19
law.
20
b.
The
person
is
involved
in
litigation
in
which
the
21
office
of
the
attorney
general
has
alleged
that
the
person
has
22
violated
any
state
or
federal
antitrust
or
price-fixing
law.
23
11.
“Obscene
material”
means
any
material
depicting
or
24
describing
the
genitals,
sex
acts,
masturbation,
excretory
25
functions,
or
sadomasochistic
abuse
which
the
average
person,
26
taking
the
material
as
a
whole
and
applying
contemporary
27
community
standards
with
respect
to
what
is
suitable
material
28
for
minors,
would
find
appeals
to
the
prurient
interest
and
is
29
patently
offensive;
and
the
material,
taken
as
a
whole,
lacks
30
serious
literary,
scientific,
political,
or
artistic
value.
31
12.
“Pornography”
means
and
includes
any
material
depicting
32
or
describing
erotic
behavior
that
is
intended
to
cause
sexual
33
excitement
which
the
average
person,
taking
the
material
as
a
34
whole
and
applying
contemporary
community
standards,
would
find
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appeals
to
the
prurient
interest
and
is
patently
offensive;
1
and
the
material,
taken
as
a
whole,
lacks
serious
literary,
2
scientific,
political,
or
artistic
value.
3
13.
“Pre-installed
application
store”
means
and
includes
4
any
program,
application,
service,
or
mechanism
that
is
5
pre-installed
on
a
mobile
telephone
or
other
portable
6
electronic
communication
device
capable
of
being
used
to
write,
7
send,
or
view
an
electronic
message
that
meets
all
of
the
8
following
criteria:
9
a.
Facilitated
at
least
one
hundred
million
annual
downloads
10
of
programs
or
applications
by
individuals
in
the
United
11
States
in
the
calendar
year
before
the
date
a
court
has
found
12
by
a
preponderance
of
the
evidence
that
the
pre-installed
13
application
store
has
violated
a
provision
of
this
chapter.
14
b.
Facilitated
the
download
of
programs
or
applications
15
that
constitute
a
massive
online
marketplace,
massive
online
16
video
sharing
website,
or
massive
social
networking
website
17
in
the
calendar
year
before
the
date
a
court
has
found
by
a
18
preponderance
of
the
evidence
that
the
preinstalled
application
19
store
has
violated
a
provision
of
this
chapter.
20
14.
“Protected
publication”
means
and
includes
any
21
newspaper,
nonfiction
book,
periodical,
religious
text,
or
any
22
other
publication
that
contains
or
displays
a
viewpoint
that
23
constitutes
constitutionally
protected
speech.
24
15.
“Social
networking
website”
means
and
includes
an
25
internet
site
that
meets
all
of
the
following
criteria:
26
a.
Allows
users,
through
the
creation
of
pages
within
27
the
internet
site
or
profiles
or
by
other
means,
to
provide
28
information
about
themselves
that
is
available
to
the
public
29
or
to
other
users.
30
b.
Allows
users
a
mechanism
for
communication
with
other
31
users.
32
Sec.
4.
NEW
SECTION
.
554I.2
Prohibition
on
censorship
——
33
ability
to
opt
out
of
certain
algorithms.
34
1.
a.
A
company
shall
not
intentionally
affect
the
ability
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of
a
citizen
of
this
state
to
view,
comment,
or
otherwise
1
interact
with
a
United
States
citizen’s
content
on
the
2
company’s
internet
site
by
limiting,
blocking,
or
otherwise
3
restricting
any
content
on
the
company’s
internet
site
if
the
4
content
constitutes
constitutionally
protected
speech.
5
b.
A
company
shall
not
intentionally
restrict
the
ability
of
6
a
citizen
of
this
state
to
download
a
social
networking
website
7
on
a
pre-installed
application
store.
8
c.
A
company
shall
not
intentionally
restrict
the
ability
of
9
a
citizen
of
this
state
to
purchase
any
protected
publication
10
or
expressive
merchandise
on
a
massive
online
marketplace
11
if
similar
protected
publications
or
expressive
merchandise
12
were
allowed
for
sale
on
the
massive
online
marketplace
at
13
the
time
the
company
restricted
the
ability
of
a
citizen
of
14
this
state
to
purchase
the
protected
publication
or
expressive
15
merchandise.
16
2.
Notwithstanding
subsection
1,
a
company
may
do
any
of
the
17
following:
18
a.
Restrict
the
ability
of
a
citizen
of
this
state
to
19
view,
comment,
or
otherwise
interact
with
a
United
States
20
citizen’s
content
on
the
company’s
internet
site
if
the
21
content
is
criminal
in
nature,
if
the
content
does
not
22
constitute
constitutionally
protected
speech,
or
if
the
content
23
constitutes
any
of
the
following:
24
(1)
Obscene
material.
25
(2)
Excessively
violent
content.
26
(3)
Pornography.
27
(4)
Content
generated
by
bots.
28
(5)
Intellectual
property.
29
b.
Restrict
the
ability
of
a
citizen
of
this
state
to
30
download
a
social
networking
website
program
or
application
31
from
a
pre-installed
application
store
if
the
social
networking
32
website
is
being
used
for
criminal
activity
and
the
social
33
networking
website
does
not
have
a
policy
in
place
to
require
34
its
employees
to
notify
law
enforcement
upon
receiving
a
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complaint
or
otherwise
becoming
aware
of
the
criminal
activity
1
being
discussed
or
conducted
on
its
social
networking
website,
2
or
does
not
have
a
policy
in
place
to
require
its
employees
3
to
refer
the
complaint
or
existence
of
criminal
activity
to
4
designated
employees
that
carry
out
the
policy.
5
c.
Restrict
the
ability
of
a
citizen
of
this
state
to
6
download
a
social
networking
website
program
or
application
7
from
a
pre-installed
application
store
if,
within
sixty
days
8
of
the
restriction,
the
United
States
department
of
homeland
9
security
determines
the
social
networking
website
program
or
10
application
constitutes
a
national
security
threat.
11
3.
a.
A
company
shall
provide
its
subscribers,
members,
and
12
users
who
are
citizens
of
this
state
with
the
ability
to
opt
13
out
of
post
promoting
algorithms
and
shadow
banning
algorithms
14
on
the
company’s
massive
online
marketplace,
massive
online
15
video
sharing
website,
or
massive
social
networking
website.
16
b.
For
purposes
of
this
subsection:
17
(1)
“Post
promoting
algorithm”
means
and
includes
the
18
mechanism,
process,
or
set
of
rules
that
is
used
to
sort
the
19
content
that
is
visible
to
a
subscriber,
member,
or
user
based
20
on
data
or
information
possessed,
used,
or
controlled
by
a
21
company
which
relates
to
the
subscriber,
member,
or
user.
22
(2)
“Shadow
banning
algorithm”
means
and
includes
the
23
mechanism,
process,
or
set
of
rules
that
is
used
to
restrict
24
the
visibility
of
a
subscriber’s,
member’s,
or
user’s
content
25
to
other
subscribers,
members,
or
users
in
a
way
that
is
not
26
readily
apparent
to
the
subscriber,
member,
or
user
who
created
27
the
content.
28
Sec.
5.
NEW
SECTION
.
554I.3
Enforcement
——
companies.
29
1.
a.
A
court’s
finding
by
a
preponderance
of
the
evidence
30
that
a
company
has
violated
a
provision
of
this
chapter
shall
31
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
32
between
the
company
and
a
governmental
entity
in
effect
as
33
of
the
effective
date
of
this
Act
regarding
tax
credits;
34
assistance
under
section
15.335B;
sales
tax
exemptions
or
35
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refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
1
including
but
not
limited
to
exemptions
under
chapter
427,
2
rebates,
refunds,
reimbursements,
or
grants
for
property
3
taxes
paid,
and
the
governmental
entity
shall
cancel
the
4
agreement
effective
as
of
the
date
of
the
court’s
finding
by
5
a
preponderance
of
the
evidence
that
a
company
has
violated
a
6
provision
of
this
chapter.
7
b.
A
court’s
finding
by
a
preponderance
of
the
evidence
8
that
a
company
has
violated
a
provision
of
this
chapter
shall
9
be
conclusive
proof
of
the
company’s
breach
of
any
agreement
10
between
the
company
and
a
governmental
entity
entered
into
11
after
the
effective
date
of
this
Act
regarding
tax
credits;
12
assistance
under
section
15.335B;
sales
tax
exemptions
or
13
refunds
under
chapter
423;
or
property
tax
credits,
exemptions,
14
including
but
not
limited
to
exemptions
under
chapter
427,
15
rebates,
refunds,
reimbursements,
or
grants
for
property
taxes
16
paid,
and
the
governmental
entity
shall
cancel
the
agreement
17
effective
as
of
the
date
of
the
court’s
finding.
18
2.
Notwithstanding
any
other
provision
of
law
to
the
19
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
20
evidence
that
a
company
has
violated
a
provision
of
this
21
chapter,
the
company
shall
be
prohibited
from
entering
into
22
any
future
agreement
with
a
governmental
entity
regarding
23
tax
credits;
assistance
under
section
15.335B;
sales
tax
24
exemptions
or
refunds
under
chapter
423;
or
property
tax
25
credits,
exemptions,
including
but
not
limited
to
exemptions
26
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
27
for
property
taxes
paid,
and
shall
be
prohibited
from
receiving
28
any
future
payments;
tax
credits;
assistance
under
section
29
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
30
property
tax
credits,
exemptions,
including
but
not
limited
to
31
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
32
or
grants
for
property
taxes
paid.
The
prohibition
provided
in
33
this
subsection
shall
begin
on
the
date
of
the
court’s
finding.
34
Except
as
provided
in
section
554I.7,
the
prohibition
shall
35
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be
for
a
period
of
twenty
years.
The
twenty-year
prohibition
1
shall
be
reinstated
for
each
subsequent
finding
by
a
court
2
pursuant
to
this
subsection.
3
3.
Notwithstanding
any
other
provision
of
law
to
the
4
contrary,
upon
a
court’s
finding
by
a
preponderance
of
the
5
evidence
that
a
company
has
violated
a
provision
of
this
6
chapter
all
of
the
following
shall
apply:
7
a.
Tax
credits;
assistance
from
programs
and
funds
under
8
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
9
423;
or
property
tax
credits,
exemptions,
including
but
not
10
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
11
reimbursements,
or
grants
for
property
taxes
paid,
that
were
12
previously
claimed
by
the
company
but
not
earned
under
the
13
terms
of
the
agreement
with
the
governmental
entity
at
the
time
14
of
the
cancellation
of
the
agreement
pursuant
to
subsection
1,
15
shall
be
recaptured
or
terminated
by
the
governmental
entity.
16
The
recapture
or
termination
pursuant
to
this
subsection
of
17
any
tax
credits;
assistance
under
section
15.335B;
sales
tax
18
exemptions
or
refunds
under
chapter
423;
or
property
tax
19
credits,
exemptions,
including
but
not
limited
to
exemptions
20
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
21
for
property
taxes
paid,
that
were
previously
claimed
but
not
22
earned
by
the
company
shall
supersede
any
agreement
previously
23
entered
into
with
the
governmental
entity.
Recapture
or
24
termination
pursuant
to
this
subsection
shall
be
accomplished
25
in
the
same
manner
as
provided
in
section
15.330,
subsection
26
2,
by
the
method
for
resolving
a
breach
described
in
the
27
agreement,
through
court
action,
or
any
other
means
determined
28
by
the
attorney
general
to
result
in
the
most
expeditious
29
recapture
or
termination
of
tax
credits;
assistance
under
30
section
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
31
423;
or
property
tax
credits,
exemptions,
including
but
not
32
limited
to
exemptions
under
chapter
427,
rebates,
refunds,
33
reimbursements,
or
grants
for
property
taxes
paid,
that
were
34
previously
claimed
by
the
company
but
not
earned
under
the
35
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terms
of
the
agreement
with
the
governmental
entity
at
the
time
1
of
the
cancellation
of
the
agreement
pursuant
to
subsection
1.
2
b.
Payments
or
other
quantifiable
benefits
received
but
not
3
earned
by
the
company
shall
be
returned
to
the
governmental
4
entity.
5
4.
Upon
a
court’s
finding
by
a
preponderance
of
the
evidence
6
that
a
company
has
violated
a
provision
of
this
chapter,
the
7
prohibition
provided
in
subsection
1
and
the
return
of
received
8
but
not
earned
amounts
provided
in
subsection
3
shall
not
be
9
stayed
during
appeal
proceedings.
10
Sec.
6.
NEW
SECTION
.
554I.4
Inventory
of
agreements
with
11
companies
——
obligations.
12
1.
Within
thirty
days
following
the
effective
date
of
this
13
Act,
a
governmental
entity
shall
do
all
of
the
following:
14
a.
Conduct
a
review
of
currently
effective
agreements
15
related
to
tax
credits;
assistance
under
section
15.335B;
sales
16
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
17
credits,
exemptions,
including
but
not
limited
to
exemptions
18
under
chapter
427,
rebates,
refunds,
reimbursements,
or
19
grants
for
property
taxes
paid,
that
were
provided
by
the
20
governmental
entity
beginning
January
1,
2001,
through
the
21
effective
date
of
this
Act,
to
determine
if
any
agreements
22
related
to
tax
credits;
assistance
under
section
15.335B;
sales
23
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
24
credits,
exemptions,
including
but
not
limited
to
exemptions
25
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
26
for
property
taxes
paid,
were
entered
into
with,
or
provided
27
to,
a
company.
28
b.
Provide
notice
to
a
company
on
the
form
provided
by
the
29
office
of
the
attorney
general
pursuant
to
subsection
3,
of
30
the
governmental
entity’s
rights
pursuant
to
section
554I.3
by
31
certified
mail
return
receipt
requested
if
the
governmental
32
entity
determines
pursuant
to
subsection
1
that
a
currently
33
effective
agreement;
tax
credit;
assistance
under
section
34
15.335B;
sales
tax
exemption
or
refund
under
chapter
423;
or
35
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property
tax
credit,
exemption,
including
but
not
limited
to
1
an
exemption
under
chapter
427,
rebate,
refund,
reimbursement,
2
or
grant
for
property
taxes
paid,
was
entered
into
with,
or
3
provided
to,
the
company
beginning
January
1,
2001,
through
the
4
effective
date
of
this
Act.
5
c.
Provide
the
office
of
the
attorney
general
with
copies
of
6
the
notice
and
receipt
of
delivery
provided
in
subsection
2.
7
d.
This
subsection
shall
not
be
construed
to
provide
8
a
company
that
did
not
receive
notice
a
defense
to
a
suit
9
alleging
a
violation
of
this
chapter
or
a
defense
to
a
10
suit
alleging
the
company
breached
an
agreement
with
the
11
governmental
entity.
12
2.
A
governmental
entity
shall
include
all
of
the
following
13
in
agreements
to
which
it
is
a
party
entered
into
on
or
after
14
the
effective
date
of
this
Act:
15
a.
A
statement
summarizing
the
governmental
entity’s
16
enforcement
rights
under
section
554I.3
with
respect
to
17
agreements
related
to
tax
credits;
assistance
under
section
18
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
and
19
property
tax
credits,
exemptions,
including
but
not
limited
to
20
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
21
or
grants
for
property
taxes
paid.
22
b.
A
provision
stating
that
any
agreement
between
the
23
governmental
entity
and
a
company
subject
to
section
554I.3
24
that
does
not
relate
to
tax
credits;
assistance
under
section
25
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
26
property
tax
credits,
exemptions,
including
but
not
limited
to
27
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
28
or
grants
for
property
taxes
paid,
may
be
canceled
at
the
29
governmental
entity’s
discretion
within
ninety
days
after
a
30
court’s
finding
by
a
preponderance
of
the
evidence
that
the
31
company
has
violated
a
provision
of
this
chapter.
32
3.
The
office
of
the
attorney
general
shall
develop
and
33
provide
to
governmental
entities
a
form
to
be
used
for
the
34
notice
provided
in
subsection
2
within
seven
days
of
the
35
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effective
date
of
this
Act.
1
Sec.
7.
NEW
SECTION
.
554I.5
Enforcement
——
governmental
2
entities.
3
Notwithstanding
any
other
provision
of
law
to
the
contrary,
4
upon
a
court’s
finding
by
a
preponderance
of
the
evidence
5
that
a
governmental
entity
intentionally
violated
a
provision
6
of
this
chapter,
including
but
not
limited
to
by
making
7
payments
or
providing
tax
credits;
assistance
under
section
8
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
9
property
tax
credits,
exemptions,
including
but
not
limited
to
10
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
11
or
grants
for
property
taxes
paid,
in
violation
of
section
12
554I.3,
all
of
the
following
shall
apply:
13
1.
The
governmental
entity’s
certified
budget
and
amount
of
14
taxes
certified
shall
be
reduced
as
provided
in
section
24.17,
15
subsection
2,
paragraph
“b”
.
16
2.
If
the
governmental
entity
receives
an
appropriation,
17
the
governmental
entity’s
portion
of
each
appropriation
in
the
18
fiscal
year
of
the
court’s
finding
of
an
intentional
violation
19
shall
be
reduced
by
ten
percent.
If
the
governmental
entity
20
fails
to
remedy
the
violation
of
this
chapter
prior
to
the
21
beginning
of
the
subsequent
fiscal
year,
the
governmental
22
entity’s
portion
of
each
appropriation
made
by
the
general
23
assembly
for
the
subsequent
fiscal
year
shall
be
reduced
by
a
24
percentage
equal
to
the
percentage
reduction
for
the
preceding
25
fiscal
year
plus
five
percent.
All
appropriation
amounts
26
reduced
pursuant
to
this
section
shall
be
transferred
to
the
27
fund
from
which
they
were
appropriated.
28
Sec.
8.
NEW
SECTION
.
554I.6
Obligations
of
the
office
of
29
the
attorney
general.
30
1.
The
office
of
the
attorney
general
shall
enforce
31
the
provisions
of
this
chapter,
including
in
all
appeal
32
proceedings.
33
a.
The
office
of
the
attorney
general
shall
appeal
a
34
district
court’s
decision
if
a
company
prevails
in
the
district
35
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court
in
an
action
under
this
chapter.
1
b.
The
office
of
the
attorney
general
shall
file
an
2
application
for
further
review
with
the
supreme
court
if,
after
3
the
appeal
provided
in
paragraph
“a”
,
the
supreme
court
issues
4
an
order
of
transfer
and
transfers
the
case
to
the
court
of
5
appeals
and
the
company
prevails
in
the
action
before
the
court
6
of
appeals.
7
c.
When
an
appeal
is
taken
by
the
office
of
the
attorney
8
general,
the
office
shall
not
be
required
to
give
an
appeal
9
bond
or
security
for
costs.
10
2.
a.
Within
sixty
days
following
the
effective
date
11
of
this
Act,
the
office
of
the
attorney
general
shall
make
12
available
on
its
internet
site
a
system
to
allow
a
citizen
of
13
this
state
to
report
potential
violations
of
this
chapter
by
a
14
company
or
by
a
governmental
entity
to
the
office.
15
b.
The
system
required
pursuant
to
paragraph
“a”
shall
16
include
all
of
the
following:
17
(1)
A
mechanism
for
the
electronic
submission
of
18
photographs
or
other
evidence
of
a
company’s
potential
19
violation
of
this
chapter.
20
(2)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
21
number
of
complaints
received
by
the
office
of
the
attorney
22
general
related
to
the
number
of
potential
violations
of
this
23
chapter
by
companies
and
governmental
entities.
In
addition
24
to
the
current
year’s
accounting,
the
system
shall
display
25
annual
accountings
required
by
this
subparagraph
for
the
years
26
preceding
the
current
calendar
year.
27
(3)
An
annual
accounting,
on
a
calendar
year
basis,
of
the
28
number
of
investigations
required
pursuant
to
subsections
3
29
and
4
in
which
the
office
of
the
attorney
general
determines
30
the
preponderance
of
the
evidence
indicates
that
a
company
31
or
governmental
entity
violated
this
chapter.
In
addition
32
to
the
current
year’s
accounting,
the
system
shall
display
33
annual
accountings
required
by
this
subparagraph
for
the
years
34
preceding
the
current
calendar
year.
35
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(4)
A
list
of
the
companies
that
a
court
has
found
by
a
1
preponderance
of
the
evidence
have
violated
this
chapter.
2
(5)
A
list
of
the
governmental
entities
that
a
court
has
3
found
by
a
preponderance
of
the
evidence
have
violated
this
4
chapter.
5
(6)
A
mechanism
to
ensure
that
the
person
submitting
the
6
report
is
a
citizen
of
this
state.
7
3.
Notwithstanding
subsection
5,
the
office
of
the
attorney
8
general
shall
complete
the
investigation
of
a
report
received
9
pursuant
to
subsection
2
within
sixty
days
of
the
receipt
10
of
the
report
if
the
report
included
a
photograph
or
other
11
evidence
that,
in
the
opinion
of
the
office,
indicates
a
12
company’s
potential
violation
of
this
chapter.
13
4.
The
office
of
the
attorney
general
shall
contact
a
person
14
who
submits
a
report
pursuant
to
subsection
2
related
to
a
15
company’s
potential
violation
of
this
chapter
that
did
not
16
contain
a
photograph
or
other
evidence
within
seven
days
of
17
the
receipt
of
the
report
and
inform
the
person
of
one
of
the
18
following:
19
a.
The
office
will
investigate
the
report,
in
which
case
the
20
office
shall
complete
the
investigation
within
sixty
days
of
21
the
receipt
of
the
report.
22
b.
The
person
has
thirty
days
to
provide
the
office
with
23
a
photograph
or
other
evidence
that
indicates
a
potential
24
violation
of
this
chapter,
in
which
case
the
office
shall
25
complete
the
investigation
within
sixty
days
of
the
receipt
of
26
the
photograph
or
other
evidence.
27
5.
a.
Upon
completion
of
an
investigation
or
investigations
28
in
which
the
office
of
the
attorney
general
determines
the
29
preponderance
of
the
evidence
indicates
that
a
company
or
30
governmental
entity
has
violated
this
chapter,
the
office
shall
31
file
suit
in
a
court
of
competent
jurisdiction
to
enforce
the
32
provisions
of
this
chapter.
33
b.
The
office
of
the
attorney
general
shall
file
suit
for
34
a
violation
of
this
chapter
every
four
years
from
the
date
of
35
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the
most
recent
court’s
finding
if
the
office
determines
that
1
a
company
has
violated
this
chapter
at
any
point
during
the
2
four-year
period
after
the
court’s
most
recent
finding.
3
c.
(1)
The
office
of
the
attorney
general
shall
file
suit
4
against
a
governmental
entity
that
has
previously
been
found
5
to
have
violated
a
provision
of
this
chapter
no
later
than
6
February
1
of
any
subsequent
fiscal
year
if
the
office
of
the
7
attorney
general
determines
that
the
governmental
entity
failed
8
to
remedy
a
prior
violation
of
this
chapter
prior
to
January
9
31
of
the
current
fiscal
year.
10
(2)
In
a
suit
filed
pursuant
to
this
paragraph,
the
sole
11
issue
before
the
court
shall
be
to
determine
whether
the
12
governmental
entity
has
remedied
a
prior
violation
of
this
13
chapter.
14
d.
The
office
of
the
attorney
general
may
join
all
claims
15
arising
from
investigations
under
this
subsection
against
a
16
company
or
governmental
entity
if
the
preponderance
of
the
17
evidence
indicates
that
the
company
or
governmental
entity
has
18
violated
this
chapter.
19
6.
a.
To
accomplish
the
objectives
and
to
carry
out
the
20
duties
prescribed
by
this
section,
the
office
of
the
attorney
21
general,
in
addition
to
other
powers
conferred
upon
the
office
22
of
the
attorney
general
by
this
section,
may
issue
subpoenas
to
23
any
person,
administer
an
oath
or
affirmation
to
any
person,
24
conduct
hearings
in
aid
of
any
investigation
or
inquiry,
and
25
prescribe
such
forms
as
may
be
necessary.
26
b.
Subject
to
paragraph
“c”
,
information,
documents,
27
testimony,
or
other
evidence
provided
to
the
office
of
the
28
attorney
general
by
a
person
pursuant
to
paragraph
“a”
,
or
29
provided
by
a
person
as
evidence
in
any
civil
action
brought
30
pursuant
to
this
section,
shall
not
be
admitted
in
evidence,
31
or
used
in
any
manner
whatsoever,
in
any
criminal
prosecution
32
or
forfeiture
proceeding
against
that
person.
If
a
criminal
33
prosecution
or
forfeiture
proceeding
is
initiated
in
a
state
34
court
against
a
person
who
has
provided
information
pursuant
to
35
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paragraph
“a”
,
the
state
shall
have
the
burden
of
proof
that
the
1
information
provided
was
not
used
in
any
manner
to
further
the
2
criminal
investigation,
prosecution,
or
forfeiture
proceeding.
3
c.
Paragraph
“b”
does
not
apply
unless
the
person
has
first
4
asserted
a
right
against
self-incrimination
and
the
office
of
5
the
attorney
general
has
elected
to
provide
the
person
with
a
6
written
statement
that
the
information,
documents,
testimony,
7
or
other
evidence
at
issue
are
subject
to
paragraph
“b”
.
After
8
a
person
has
been
provided
with
such
a
written
statement
by
the
9
office
of
the
attorney
general,
a
claim
of
privilege
against
10
self-incrimination
is
not
a
defense
to
any
action
or
proceeding
11
to
obtain
the
information,
documents,
testimony,
or
other
12
evidence.
The
limitation
on
the
use
of
evidence
in
a
criminal
13
proceeding
contained
in
this
section
does
not
apply
to
any
14
prosecution
or
proceeding
for
perjury
or
contempt
of
court
15
committed
in
the
course
of
the
giving
or
production
of
the
16
information,
documents,
testimony,
or
other
evidence.
17
7.
Service
by
the
office
of
the
attorney
general
of
any
18
notice
requiring
a
person
to
file
a
statement
or
report,
or
of
19
a
subpoena
upon
any
person,
shall
be
made
personally
within
20
this
state,
but
if
such
cannot
be
obtained,
substituted
service
21
may
be
made
in
any
of
the
following
ways:
22
a.
Personal
service
thereof
without
this
state.
23
b.
The
mailing
thereof
by
registered
mail
to
the
last
known
24
place
of
business,
residence,
or
abode
within
or
without
this
25
state
of
such
person
for
whom
the
same
is
intended.
26
c.
As
to
any
person
other
than
a
natural
person,
in
the
27
manner
provided
in
the
rules
of
civil
procedure
as
if
a
28
petition
had
been
filed.
29
d.
Such
service
as
a
district
court
may
direct
in
lieu
of
30
personal
service
within
this
state.
31
8.
If
a
person
fails
or
refuses
to
file
a
statement
or
32
report,
or
obey
any
subpoena
issued
by
the
office
of
the
33
attorney
general,
the
office
of
the
attorney
general
may,
after
34
notice,
apply
to
the
Polk
county
district
court
or
the
district
35
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court
for
the
county
in
which
the
person
resides
or
is
located
1
and,
after
hearing,
request
an
order
that
provides
for
any
of
2
the
following:
3
a.
A
grant
of
injunctive
relief,
restraining
the
sale
or
4
advertisement
of
any
merchandise
by
such
persons.
5
b.
The
dissolution
of
a
corporation
created
by
or
under
the
6
laws
of
this
state
or
revoking
or
suspending
the
certificate
of
7
authority
to
do
business
in
this
state
of
a
foreign
corporation
8
or
revoking
or
suspending
any
other
licenses,
permits,
or
9
certificates
issued
pursuant
to
law
to
such
person
which
are
10
used
to
further
the
allegedly
unlawful
practice.
11
c.
A
grant
of
such
other
relief
as
may
be
required
until
the
12
person
files
the
statement
or
report,
or
obeys
the
subpoena.
13
9.
a.
The
office
of
the
attorney
general
shall
notify
the
14
department
of
management
upon
a
court’s
initial
finding
by
a
15
preponderance
of
the
evidence
that
a
governmental
entity
has
16
intentionally
violated
a
provision
of
this
chapter,
including
17
in
a
suit
filed
pursuant
to
section
554I.8,
subsection
3.
18
b.
The
office
of
the
attorney
general
shall
notify
the
19
department
of
management
no
later
than
June
1
of
any
subsequent
20
fiscal
year
if
a
governmental
entity
fails
to
remedy
the
21
violation
in
paragraph
“a”
prior
to
January
31
of
the
current
22
fiscal
year.
23
10.
All
records
provided
to
the
office
of
the
attorney
24
general
pursuant
to
this
section
shall
be
kept
confidential
and
25
are
not
subject
to
chapter
22.
26
Sec.
9.
NEW
SECTION
.
554I.7
Petition
for
stay.
27
1.
No
sooner
than
four
years
after
a
court’s
finding
that
28
a
company
violated
a
provision
of
this
chapter
pursuant
to
29
section
554I.3,
the
company
may
petition
the
court
for
a
stay
30
of
the
provisions
of
section
554I.3,
subsection
1.
31
2.
At
the
time
the
company
petitions
the
court
for
a
stay
32
pursuant
to
subsection
1,
the
company
shall
file
with
the
court
33
a
bond
payable
to
the
state
in
an
amount
deemed
necessary
by
34
the
office
of
the
attorney
general.
35
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3.
Within
thirty
days
after
a
company
files
a
petition
for
1
a
stay
pursuant
to
subsection
1,
the
office
of
the
attorney
2
general
shall
file
with
the
court
a
statement
indicating
any
3
reports
received
under
section
554I.6,
subsection
2,
related
4
to
the
company
from
the
date
of
the
court’s
finding
that
5
the
company
violated
a
provision
of
this
chapter
pursuant
to
6
section
554I.3
through
the
date
the
company
filed
the
petition
7
for
a
stay.
8
4.
The
court
shall
grant
the
petition
for
stay
filed
9
pursuant
to
subsection
1
if
it
finds
that
the
company
did
not
10
violate
the
provisions
of
this
chapter
from
the
date
of
the
11
court’s
finding
that
the
company
violated
a
provision
of
this
12
chapter
pursuant
to
section
554I.3
through
the
date
the
company
13
filed
the
petition
for
a
stay.
14
a.
Beginning
one
year
after
the
court
grants
the
petition
15
for
stay
pursuant
to
this
subsection,
the
company
shall
16
annually
file
with
the
court
an
additional
bond
in
the
amount
17
of
any
payments;
tax
credits;
assistance
under
section
18
15.335B;
sales
tax
exemptions
or
refunds
under
chapter
423;
or
19
property
tax
credits,
exemptions,
including
but
not
limited
to
20
exemptions
under
chapter
427,
rebates,
refunds,
reimbursements,
21
or
grants
for
property
taxes
paid,
which
the
company
received
22
from
the
state
during
the
previous
year.
23
b.
A
governmental
entity
shall
not
provide
the
company
24
with
any
tax
credits;
assistance
under
section
15.335B;
sales
25
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
26
credits,
exemptions,
including
but
not
limited
to
exemptions
27
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
28
for
property
taxes
paid,
until
the
company
has
satisfied
the
29
requirements
in
paragraph
“a”
for
the
previous
year.
30
5.
The
company
shall
be
permanently
prohibited
from
31
entering
into
any
agreement
with
a
governmental
entity
32
regarding
tax
credits;
assistance
under
section
15.335B;
sales
33
tax
exemptions
or
refunds
under
chapter
423;
or
property
tax
34
credits,
exemptions,
including
but
not
limited
to
exemptions
35
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451
under
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
1
for
property
taxes
paid,
and
shall
be
permanently
prohibited
2
from
receiving
from
a
governmental
entity
any
payments;
tax
3
credits;
assistance
under
section
15.335B;
sales
tax
exemptions
4
or
refunds
under
chapter
423;
or
property
tax
credits,
5
exemptions,
including
but
not
limited
to
exemptions
under
6
chapter
427,
rebates,
refunds,
reimbursements,
or
grants
for
7
property
taxes
paid,
if
the
company
violates
a
provision
of
8
this
chapter
after
a
court
has
granted
the
company’s
petition
9
for
stay
pursuant
to
this
section
and
before
the
end
of
the
10
twenty-year
prohibition
provided
in
section
554I.3,
subsection
11
1.
12
6.
The
amount
of
any
bond
forfeited
under
this
section
shall
13
be
deposited
in
the
general
fund
of
the
state.
14
7.
A
company
shall
not
file
more
than
one
petition
for
15
a
stay
of
the
provisions
of
section
554I.3,
subsection
1,
16
during
the
twenty-year
prohibition
provided
in
section
554I.3,
17
subsection
1.
18
8.
This
section
shall
not
be
construed
to
limit
the
19
authority
of
the
office
of
the
attorney
general
under
section
20
554I.6
to
investigate
potential
violations
of
this
chapter
or
21
file
suit
to
enforce
the
provisions
of
this
chapter.
22
Sec.
10.
NEW
SECTION
.
554I.8
Right
to
intervene
——
23
enforcement
by
citizens
of
this
state.
24
1.
A
governmental
entity
impacted
by
an
action
under
this
25
chapter
may
intervene
in
any
action
under
this
chapter.
26
2.
A
citizen
of
this
state
who
has
reported
a
company’s
27
potential
violation
of
this
chapter
pursuant
to
section
554I.6
28
may
intervene
in
any
action
related
to
the
company
under
this
29
chapter.
30
3.
Notwithstanding
section
554I.6,
subsection
1,
a
citizen
31
of
this
state
who
has
reported
a
company’s
potential
violation
32
of
this
chapter
pursuant
to
section
554I.6
may
file
suit
in
a
33
court
of
competent
jurisdiction
to
enforce
the
provisions
of
34
this
chapter
if
the
company
is
not
currently
subject
to
the
35
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451
prohibition
provided
in
section
554I.3,
subsection
2,
and
if
1
the
company’s
potential
violation
of
this
chapter
occurred
at
2
least
thirty
days
following
the
effective
date
of
this
Act.
3
Sec.
11.
NEW
SECTION
.
554I.9
Rules.
4
The
office
of
the
attorney
general
shall
adopt
rules
5
pursuant
to
chapter
17A
to
administer
and
interpret
this
6
chapter.
7
Sec.
12.
TRANSITIONAL
COMPLAINT
REPORTING
SYSTEM.
Within
8
thirty
days
following
the
effective
date
of
this
Act,
and
until
9
fifty-nine
days
following
the
effective
date
of
this
Act,
the
10
office
of
the
attorney
general
shall
make
available
on
its
11
internet
site
a
transitional
system
to
allow
a
citizen
of
12
this
state
to
report
potential
violations
of
chapter
554I
by
13
a
company
or
a
governmental
entity
to
the
office.
The
system
14
shall
include,
at
a
minimum,
a
mechanism
for
the
electronic
15
submission
of
reports
of
potential
violations
of
chapter
554I
16
and
the
electronic
evidence
associated
with
the
potential
17
violations.
18
Sec.
13.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
19
3,
shall
not
apply
to
this
Act.
20
Sec.
14.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
21
immediate
importance,
takes
effect
upon
enactment.
22
Sec.
15.
APPLICABILITY.
This
Act
applies
to
agreements
23
between
a
company
and
a
governmental
entity
in
effect
or
24
entered
into
on
or
after
the
effective
date
of
this
Act.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
prohibits
the
state
or
political
subdivisions
of
29
the
state
from
entering
into
contracts
with,
or
providing
tax
30
incentives
or
other
specified
benefits
to,
certain
companies
31
that
censor
online
content.
32
The
bill
requires
that,
before
public
funds
are
used
for
33
economic
development,
the
public
body
dispensing
the
public
34
funds
shall
consider
whether
a
court
has
found
that
the
person
35
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451
to
whom
the
funds
will
be
disbursed
has
violated
a
provision
1
of
new
Code
chapter
554I,
and
whether
the
person
is
involved
2
in
litigation
in
which
it
has
been
alleged
that
the
person
3
violated
Code
chapter
554I.
4
The
bill
modifies
Code
section
24.17
to
provide
that,
for
5
fiscal
years
beginning
on
or
after
July
1,
2025,
if
a
political
6
subdivision
has
been
found
to
have
violated
new
Code
chapter
7
554I
during
the
12-month
period
prior
to
the
date
taxes
are
8
certified,
the
amount
of
the
political
subdivision’s
budget
9
certified
under
Code
chapter
24
and
the
amount
of
taxes
10
certified
back
to
the
county
auditor
by
the
department
of
11
management
shall
be
reduced
as
described
in
the
bill.
12
Current
law
requires
a
county
board
of
supervisors
and
a
13
city
council
to
post
a
public
hearing
notice
on
the
board’s
or
14
council’s
social
media
account.
The
bill
provides
that
posting
15
of
the
public
hearing
notice
is
authorized
but
not
required.
16
The
bill
establishes
new
Code
chapter
554I.
The
bill
17
adds
several
defined
terms
to
the
Code
chapter,
including
18
definitions
for
“company”,
“content
generated
by
bots”,
19
“excessively
violent
content”,
“expressive
merchandise”,
20
“governmental
entity”,
“intellectual
property”,
“massive
online
21
marketplace”,
“massive
online
video
sharing
website”,
“massive
22
social
networking
website”,
“monopolistic
entity”,
“obscene
23
material”,
“pornography”,
“pre-installed
application
store”,
24
and
“social
networking
website”.
25
The
bill
prohibits
a
company
from
intentionally
affecting
26
the
ability
of
a
citizen
of
this
state
to
view,
comment,
or
27
otherwise
interact
with
certain
content
on
the
company’s
28
internet
site
by
restricting
such
content.
29
The
bill
prohibits
a
company
from
intentionally
affecting
30
the
ability
of
a
citizen
of
this
state
to
interact
with
31
certain
content
on
the
company’s
internet
site,
restricting
32
the
ability
of
a
citizen
of
this
state
to
download
a
social
33
networking
website
on
a
pre-installed
application
store,
or
34
restricting
the
ability
of
a
citizen
of
this
state
to
purchase
35
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any
protected
publication
or
expressive
merchandise
on
a
1
massive
online
marketplace
as
prescribed
in
the
bill.
The
bill
2
provides,
however,
that
a
company
may
restrict
the
ability
3
of
a
citizen
of
this
state
to
interact
with
a
United
States
4
citizen’s
content
on
the
company’s
internet
site
in
certain
5
enumerated
cases.
6
The
bill
requires
a
company
to
provide
its
subscribers,
7
members,
and
users
who
are
citizens
of
this
state
with
8
the
ability
to
opt
out
of
post
promoting
algorithms
and
9
shadow
banning
algorithms
on
the
company’s
massive
online
10
marketplace,
massive
online
video
sharing
website,
or
massive
11
social
networking
website.
The
bill
defines
“post
promoting
12
algorithm”
and
“shadow
banning
algorithm”.
13
The
bill
provides
that
a
court’s
finding
that
a
company
has
14
violated
the
prohibition
on
censorship
shall
be
conclusive
15
proof
of
the
company’s
breach
of
any
agreement
between
the
16
company
and
a
governmental
entity,
and
the
governmental
entity
17
shall
cancel
the
agreement
effective
as
of
the
date
described
18
in
the
bill.
19
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
20
has
violated
this
prohibition
on
censorship,
the
company
shall
21
be
prohibited
from
entering
into
any
future
agreement
with
a
22
governmental
entity
and
shall
be
prohibited
from
receiving
23
any
future
payment
from
a
governmental
entity.
The
bill
24
establishes
that
this
begins
on
the
date
of
the
court’s
finding
25
and
shall
extend
for
a
period
of
20
years,
unless
a
stay
is
26
granted.
Additionally,
the
bill
establishes
that
this
20-year
27
prohibition
shall
be
reinstated
for
each
subsequent
finding
by
28
a
court
that
a
company
violated
the
prohibition
on
censorship.
29
The
bill
provides
that,
upon
a
court’s
finding
that
a
company
30
has
violated
the
prohibition
on
censorship,
tax
credits;
31
assistance
under
Code
section
15.335B;
sales
tax
exemptions
or
32
refunds;
or
property
tax
rebates,
refunds,
reimbursements,
or
33
grants
for
property
taxes
paid,
that
were
previously
claimed
by
34
the
company,
but
not
earned
under
the
terms
of
the
agreement
35
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451
with
the
governmental
entity
at
the
time
of
the
cancellation
of
1
the
agreement,
shall
be
recaptured
as
provided
in
the
bill.
2
The
bill
provides
that
the
prohibition
on
entering
into
any
3
agreement
with
a
governmental
entity
and
the
requirement
that
4
unearned
amounts
be
returned
to
governmental
entities
shall
not
5
be
stayed
during
appeal
proceedings.
6
The
bill
requires
a
governmental
entity
to
take
certain
7
enumerated
steps
with
respect
to
companies
it
may
have
8
agreements
with
within
30
days
of
the
effective
date
of
the
9
bill.
The
bill
also
requires
a
governmental
entity
to
include
10
in
its
contracts
certain
statements
and
provisions
related
11
to
the
governmental
entity’s
enforcement
rights.
The
bill
12
requires
the
office
of
the
attorney
general
to
develop
a
form
13
describing
these
enforcement
rights
within
seven
days
of
the
14
effective
date
of
the
bill.
15
The
bill
provides
that
if
a
governmental
entity
16
intentionally
violates
the
bill’s
provisions,
certain
financial
17
penalties
will
apply.
18
The
bill
requires
the
attorney
general
to
enforce
the
bill.
19
The
bill
requires
the
attorney
general
to
appeal
a
district
20
court’s
decision
if
a
company
prevails
in
the
district
court
21
in
an
action
relating
to
the
bill.
Additionally,
the
bill
22
requires
the
attorney
general
to
file
an
application
for
23
further
review
with
the
supreme
court
if,
after
the
first
24
appeal,
the
supreme
court
transfers
the
case
to
the
court
of
25
appeals
and
the
company
prevails
in
the
action
before
the
court
26
of
appeals.
27
The
bill
requires,
within
60
days
of
the
bill’s
effective
28
date,
the
attorney
general
to
make
available
on
its
internet
29
site
a
system
to
allow
a
citizen
of
this
state
to
report
a
30
company’s
or
a
governmental
entity’s
potential
violation
31
of
the
bill.
The
bill
requires
this
system
to
include
32
several
features.
The
bill
establishes
certain
investigative
33
responsibilities
of
the
attorney
general
with
respect
to
34
reports
submitted
through
this
system.
35
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The
bill
requires
the
attorney
general
to
file
suit
in
1
a
court
of
competent
jurisdiction
to
enforce
the
bill’s
2
provisions,
and
establishes
when
the
attorney
general
shall
3
file
suit.
The
bill
provides
the
attorney
general
with
4
certain
enumerated
powers.
Additionally,
the
bill
requires
5
the
attorney
general
to
notify
the
department
of
management
6
regarding
the
outcome
of
cases
arising
under
the
bill.
The
7
bill
provides
that
all
records
provided
to
the
attorney
general
8
under
Code
section
554I.6
shall
be
kept
confidential
and
are
9
not
subject
to
Code
chapter
22.
10
The
bill
authorizes
companies
that
have
been
found
to
have
11
violated
the
bill
to
petition
the
court
for
a
stay
of
the
12
bill’s
provisions.
The
bill
prescribes
when
this
petition
13
may
be
filed,
how
many
petitions
may
be
filed,
bonding
14
requirements,
statements
that
the
attorney
general
must
file,
15
when
a
court
may
grant
the
stay,
and
what
occurs
in
the
event
a
16
company
violates
the
bill
again
after
a
stay
has
been
granted.
17
The
bill
establishes
that
governmental
entities
impacted
18
by
an
action
under
the
bill
may
intervene
in
the
action.
19
Additionally,
the
bill
establishes
that
a
citizen
of
this
20
state
who
has
reported
a
company’s
violation
of
the
bill
to
21
the
attorney
general
may
intervene
in
any
action
related
to
22
that
company.
The
bill
authorizes
a
citizen
of
this
state
23
who
has
reported
a
company’s
violation
of
the
bill
to
file
24
suit
to
enforce
the
bill’s
provisions
if
the
company
is
not
25
currently
subject
to
a
prohibition
detailed
in
the
bill,
and
26
if
the
company’s
potential
violation
occurred
at
least
30
days
27
following
the
bill’s
effective
date.
28
The
bill
may
include
a
state
mandate
as
defined
in
Code
29
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
30
subsection
3,
which
would
relieve
a
political
subdivision
from
31
complying
with
a
state
mandate
if
funding
for
the
cost
of
the
32
state
mandate
is
not
provided
or
specified.
By
operation
of
33
law,
political
subdivisions
are
required
to
comply
with
any
34
state
mandate
included
in
the
bill.
35
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The
bill
authorizes
the
attorney
general
to
adopt
rules
to
1
administer
and
interpret
the
bill.
2
The
bill
requires
the
attorney
general
to
create
a
3
transitional
reporting
system
within
30
days
following
the
4
bill’s
effective
date
that
will
operate
until
59
days
following
5
the
bill’s
effective
date.
The
bill
requires
the
transitional
6
reporting
system
to
include,
at
a
minimum,
a
mechanism
for
the
7
electronic
submission
of
reports
of
potential
violations
of
the
8
bill
and
the
electronic
evidence
associated
with
the
potential
9
violations.
10
The
bill
takes
effect
upon
enactment
and
applies
to
11
agreements
between
a
company
and
a
governmental
entity
in
12
effect
or
entered
into
on
or
after
the
effective
date
of
the
13
bill.
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