The proposed bill seeks to prohibit the state of Iowa and its political subdivisions from entering into contracts or providing tax incentives to companies that engage in online content censorship. It introduces new provisions to existing laws, specifically establishing criteria for evaluating the disbursement of funds to entities that violate the newly defined chapter 554I. The bill outlines definitions for terms related to online platforms, such as "massive online marketplace" and "monopolistic entity," and specifies the types of content that can be restricted. If a court finds a company in violation of these provisions, it will lead to the cancellation of any agreements regarding tax credits or benefits, along with a twenty-year prohibition on future agreements with the state.

Additionally, the bill mandates that governmental entities review existing agreements related to tax credits and notify companies of their rights in case of violations. It establishes the Office of the Attorney General as the enforcer of these provisions, requiring the development of a reporting system for citizens to report potential violations. The bill also imposes penalties on governmental entities that intentionally violate its terms and allows citizens to intervene in enforcement actions. Overall, the legislation aims to enhance accountability and oversight regarding financial agreements involving tax incentives while protecting constitutionally protected speech and ensuring citizens have options to manage their online interactions.

Statutes affected:
Introduced: 15A.1, 24.17