Read the full stored bill text
House
File
682
-
Introduced
HOUSE
FILE
682
BY
COOLING
,
WILBURN
,
JAMES
,
LEVIN
,
B.
MEYER
,
KONFRST
,
MATSON
,
KRESSIG
,
BAGNIEWSKI
,
MADISON
,
CROKEN
,
R.
JOHNSON
,
AMOS
JR.
,
SRINIVAS
,
EHLERT
,
OLSON
,
SCHOLTEN
,
WESSEL-KROESCHELL
,
and
NIELSEN
A
BILL
FOR
An
Act
relating
to
the
recapture
of
tax
expenditures
and
1
disbursed
by
departments
of
the
state
to
businesses
that
2
violate
child
labor
laws.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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682
Section
1.
NEW
SECTION
.
15K.1
Recapture
of
tax
expenditures
1
for
child
labor
violations.
2
1.
As
used
in
this
chapter:
3
a.
“Business”
means
the
same
as
a
person
as
defined
in
4
section
4.1.
5
b.
“Proceeds”
means
the
same
as
noncash
and
cash
proceeds
6
as
defined
in
section
554.9102.
7
c.
“Tax
expenditure”
means
the
same
as
defined
in
section
8
2.48,
subsection
1.
9
2.
Notwithstanding
any
other
provision
of
law
to
the
10
contrary,
beginning
on
or
after
July
1,
2025,
as
a
condition
11
of
authorizing
tax
expenditures
to
a
business
under
any
of
the
12
programs
administered
by
a
department
of
the
state,
the
value
13
of
the
tax
expenditures
authorized
by
the
department
shall
be
14
subject
to
recapture
by
the
department
administering
the
tax
15
expenditure
if
the
business,
or
a
contractor,
subcontractor,
16
or
other
third
party
of
the
business
providing
services
to
the
17
business
in
the
business’s
facility,
has
violated
state
or
18
federal
child
labor
laws
under
chapter
92
or
the
federal
Fair
19
Labor
Standards
Act
of
1938.
20
3.
The
business
shall
notify
the
administering
department
21
of
the
violation
within
thirty
days
of
the
ending
of
the
time
22
period
to
contest
or
appeal
the
violation.
23
4.
The
repayment
or
recapture
of
tax
expenditures
pursuant
24
to
this
chapter
shall
be
accomplished
in
the
same
manner
as
25
provided
in
section
15.330,
subsection
2.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
relates
to
the
recapture
of
tax
expenditures
30
disbursed
by
departments
of
the
state
to
businesses
that
31
violate
child
labor
laws.
The
bill
defines
“tax
expenditure”
32
to
mean
the
same
as
defined
in
Code
section
2.48,
which
33
includes
tax
credits,
exemptions,
deductions,
and
rebates
as
34
well
as
sales
tax
refunds.
35
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682
Beginning
on
or
after
July
1,
2025,
as
a
condition
of
1
authorizing
tax
incentives
to
a
business
under
any
of
the
2
programs
administered
by
a
department
of
the
state,
the
3
value
of
the
tax
expenditure
authorized
shall
be
subject
to
4
recapture
by
the
department
if
the
business,
or
a
contractor,
5
subcontractor,
or
other
third
party
of
the
business
providing
6
services
to
the
business
in
the
business’s
facility,
violated
7
state
or
federal
child
labor
laws
under
Code
chapter
92
or
the
8
federal
Fair
Labor
Standards
Act
of
1938.
9
The
bill
requires
the
business
to
notify
the
administering
10
department
of
the
violation
within
30
days
of
the
ending
of
the
11
time
period
to
contest
or
appeal
the
violation.
12
The
bill
specifies
the
repayment
or
recapture
of
tax
13
expenditures
pursuant
to
the
bill
shall
be
accomplished
in
14
the
same
manner
as
provided
in
Code
section
15.330(2).
The
15
repayment
of
incentives
pursuant
to
that
Code
section
is
16
considered
a
tax
payment
due
and
payable
to
the
department
17
of
revenue,
and
the
failure
to
make
such
a
repayment
may
be
18
treated
by
the
department
of
revenue
in
the
same
manner
as
a
19
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due.
20
In
addition,
a
county
may
take
action
to
recover
the
value
of
21
property
taxes
not
collected
as
a
result
of
a
tax
exemption
22
provided
to
the
business.
23
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