SF 564 – Electronic consent of company boards

SF 564 (BLU 1216) allows boards of directors of companies to accept electronic signatures in transactions relating to the conduct of business, commerce or government specified in the chapter. This is “fallback” legislation requested by the insurance industry. The language is included in the Model Business Corporations Act (SF 266/HF 681 by the judiciary), but they support the advancement of this bill if the broader legislation is not passed. The companion is HF 759.
[3/4: short form (Excused: Whiting)]

SF 565 (BLU 1087) Adds high-alcohol beer and canned cocktails to the definition of “beverage” under the Iowa Bottle Bill and requires distributors to report the amount of unclaimed deposits they have . Each distributor must open a special interest-bearing account at a financial institution in Iowa and deposit therein an amount equal to the redemption value of each beverage container sold by the distributor on or after July 1, 2021. Reimbursement of the value of reimbursement paid by the distributor to a broker, broker or redemption center must be paid from the account. Beginning October 31, each distributor must submit a quarterly report to the Iowa Department of Natural Resources that includes the account balance at the start and end of the quarter, as well as a list of all deposits credited and all withdrawals from the account. The state treasurer, independently or at the request of the director of the DNR, may examine the accounts and records of any distributor. The Attorney General, independently or at the request of the Director of MNR, may take any appropriate action or procedure to enforce any provision of the bill or any rule adopted.
[3/4: 11-5 (No: Bisignano, Lykam, Mathis, Petersen, Wahls; Excused: Whiting)]

SF 566 – Banking Omnibus Division

SF 566 (BLU 1236) is a recommendation from the Division of Banking to modernize the Iowa Banking Act [Ch. 524], which has not been the subject of an in-depth review since 1995. Parts of the law are outdated and do not reflect current conditions and practices in the banking sector, both at the state level and National level. Topics requiring updates or further statutory treatment include interstate banking, online banking, fintech, and innovation.

In developing the proposal, the Division thoroughly reviewed the Act with input from stakeholders to streamline the provisions, eliminate outdated and unnecessary regulatory requirements (p.

Specific changes include:

The bill allows the superintendent to impose an initial civil fine of up to $ 500,000 on a state bank (or its director or officer) that enters into a transaction without receiving the approval of the superintendent. in violation of certain statutory provisions listed (voluntary dissolution, conversion into a company, merger). For these violations, the superintendent can also impose a civil fine of up to $ 10,000 per day the state bank operates on after closing such a transaction without prior approval. Noting the extraordinarily high amounts, Senator Quirmbach proposed an amendment (.1071) to remove the provisions relating to civil penalties for unauthorized transactions. The amendment failed on a 6-10, party line vote. SF 566 was referred to the appropriations.
[3/4: 10-6, party-line (No: Democrats; Excused: Whiting)]

FS 567 (BLU 1135) adds licensed or registered mortgage bankers in Iowa to CH. 535B provisions allowing non-depository lenders (aka non-banks) who issue mortgages to charge the same points and fees as other financial institutions. This includes lenders such as Rocket Mortgage / Quicken Loans. The Association of Business and Industry and the Iowa Mortgage Association support the proposal. No statement of opposition.
[3/4: short form (Excused: Whiting)]

FS 571 – Prohibition of the blocking of social networks by private companies

FS 571 (SF 402) prohibits the state or political subdivisions from entering into contracts with, or providing tax incentives or other benefits to, certain companies that censor online content.

The original bill was amended as follows:

• Removes the wording “Legislative Findings and Legislative Intent” which was a perspective on freedom of expression and First Amendment rights.
• Defines “monopoly entity” to include businesses that own or operate a social networking website, own or operate a search engine, or a person that owns or operates a similar website that displays content to its users.
• Demands that the Iowa Attorney General take legal action alleging a violation of state or federal antitrust or pricing laws on these monopoly entities.
• Adds additional exceptions (i.e. allowed censorship) to cover situations where constitutionally protected speech should be allowed to be removed or restricted on a platform: intellectual property (trademark and copyrighted material). copyright); robot generated content; and pornography.
• Allows a preinstalled app store to remove the ability to download a social network website (app) from its store if the app poses a threat to national security confirmed by the U.S. Department of Homeland Security in the 60 days after deletion.

To address the concerns of various government entities (eg, school boards, Regents institutions), the amendment also bifurcates tax incentive agreements and non-tax incentive agreements. Agreements entered into by government entities and “Big Tech” companies must be terminated if they relate to tax incentives. Government entities may, at their discretion, terminate all other agreements within 90 days.

• Tax incentive agreements must be terminated by government entities upon a court ruling of a violation of 554E by a company.
  • If the deal is about tax incentives, the tech company violates the deal once a court finds a violation of 554E.3 (constitutionally protected censored content), and the government entity is required to terminate the contract. and recover any tax incentives not obtained through performance. under the contract
  • This termination obligation will apply to existing and future contracts.
  • Government entities must include a provision stipulating the obligation to terminate a tax incentive in any agreement entered into on or after the date of entry into force of this bill (possible application)
  • This provision will essentially be included in an existing contract (retroactive application)

• Non-tax incentive agreements do not have to be terminated by government entities, but they have the discretion to terminate such contracts within 90 days of a court finding that a company has violated 554E.
  • If the deal is not about tax incentives, the tech company violates the deal once a court finds a violation of 554E.3 (constitutionally protected censored content), and the government entity will be given the opportunity to terminate the contract within 90 days of the courts find a 554E.3 violation but may choose to continue the contract.
  • The 90-day termination option must be included as a provision in any contract a between a government entity and a technology company entered into as of the effective date.
  • The option to terminate the contract within 90 days will only apply to contracts concluded from the effective date of the invoice.

The Attorney General must create a transitional reporting system within 30 days of the effective date of the bill that will operate until 59 days after that date. The transitional reporting system must include at a minimum a mechanism for submitting electronic reports of potential violations of Chapter 554E, including evidence.

The bill takes effect upon promulgation and applies to agreements in force or concluded from the date of entry into force. FS 571 was referred to ways and means.
[3/4: 10-6, party-line (No: Democrats; Excused: Whiting)]