The proposed bill establishes a new Code chapter 554I in Iowa, aimed at prohibiting companies from engaging in online content censorship and restricting governmental entities from entering into contracts or providing tax incentives to such companies. It introduces specific criteria for determining violations of censorship practices and mandates that political subdivisions found to have intentionally violated this chapter will face a ten percent reduction in their budget and tax certifications. The bill also requires public bodies to consider any court findings of violations before disbursing public funds for economic development and mandates that companies allow users to opt out of certain algorithms affecting content visibility.

Additionally, the bill enhances accountability by requiring governmental entities to review existing tax credit agreements since January 1, 2001, and notify companies of their rights if violations are found. It grants the attorney general the authority to enforce these provisions, including the ability to investigate reports of violations and file lawsuits against non-compliant entities. The bill allows for citizen intervention in enforcement actions and establishes a system for reporting potential violations. If a company is found in violation, it faces the cancellation of agreements with governmental entities and a twenty-year prohibition on future agreements. The bill takes effect immediately upon enactment and applies to agreements made on or after the effective date.

Statutes affected:
Introduced: 15A.1, 24.17