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 outlines significant repercussions for companies found in violation, including a ten percent reduction in budget certifications and tax returns for the involved political subdivisions. The bill also mandates that companies allow users to opt out of algorithms affecting content visibility and requires public bodies to consider any court findings of violations before disbursing public funds for economic development.

Additionally, the bill enhances enforcement mechanisms by assigning the Attorney General's office the responsibility to adopt rules, create a complaint reporting system, and file lawsuits against violators. It specifies that a court's finding of a violation will result in the cancellation of agreements with governmental entities and a 20-year prohibition on future agreements and payments for repeat offenders. The legislation emphasizes transparency and accountability, allowing citizens to report violations and intervene in legal actions, while also imposing penalties on governmental entities that intentionally violate the provisions. 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