Commerce Committee – Week 9, 2021


SF 564 – Digital consent of the corporate’s boards of administrators

SF 564 (SSB 1216) permits company boards of administrators to simply accept digital signatures in transactions referring to the conduct of enterprise, commerce or authorities affairs specified within the chapter. That is “safeguard” laws requested by the insurance coverage trade. The wording is a part of the Mannequin Legislation on Industrial Corporations (SF 266/HF 681 by the judiciary), however they assist the promotion of this invoice if the broader laws shouldn’t be handed. The companion is HF 759.
[3/4: short form (Excused: Whiting)]

SF 565 (SSB 1087) provides high-alcohol beer and canned cocktails to the definition of “beverage” within the Iowa Bottle Invoice and requires distributors to report the quantity of unclaimed deposits they’ve. Every distributor should open a particular interest-bearing account at a monetary establishment in Iowa and deposit into the account an quantity equal to the redemption worth for every beverage container offered by the distributor on or after July 1, 2021. The reimbursement of the Reimbursement worth paid by the distributor to a dealer, brokerage or redemption middle have to be paid from the account. Starting October 31, every distributor should submit a quarterly report back to the Iowa Division of Pure Sources that features the account steadiness firstly and finish of the quarter, in addition to a listing of all deposits credited and all withdrawals from the account. The State Treasurer, independently or on the request of the Director of MNR, could study the accounts and data of any Distributor. The Lawyer Normal, independently or on the request of the Director of MNR, could take any applicable motion or process to implement any provision of the invoice or any rule adopted.
[3/4: 11-5 (No: Bisignano, Lykam, Mathis, Petersen, Wahls; Excused: Whiting)]

SF 566 – Banking Omnibus Division

SF 566 (SSB 1236) is a suggestion from the Division of Banking to modernize the Iowa Banking Act [Ch. 524], which has not been totally reviewed since 1995. Elements of the legislation are outdated and don’t mirror present banking sector situations and practices at nationwide and nationwide ranges. Subjects requiring updates or additional statutory remedy embody interstate banking, on-line banking, fintech, and innovation.

In creating the proposal, the Division totally reviewed the Act with stakeholder participation with a purpose to streamline the provisions, remove outdated and pointless regulatory necessities (e.g., a number of filings, newspaper publications ) and take note of present developments within the banking and monetary companies sectors.

Particular modifications embody:

The invoice permits the superintendent to impose an preliminary civil penalty of as much as $ 500,000 on a state financial institution (or its director or officer) that closes a transaction with out receiving the approval of the superintendent in violation of sure provisions. listed statutes (voluntary dissolution, conversion into an organization, merger). For these violations, the superintendent may impose a civil nice of as much as $ 10,000 per day the state financial institution operates after such a transaction closes with out prior approval. Noting the terribly giant quantities, Senator Quirmbach proposed an modification (.1071) to take away the provisions referring to civil penalties for unauthorized transactions. The modification failed by a 6-10 vote, within the celebration line. SF 566 was referred to the appropriations.
[3/4: 10-6, party-line (No: Democrats; Excused: Whiting)]

SF 567 (SSB 1135) provides mortgage bankers licensed in Iowa or registered in Iowa to CH. 535B to permit non-depository (aka non-bank) lenders who grant mortgages to cost the identical factors and costs as different monetary establishments. This consists of lenders corresponding to Rocket Mortgage / Quicken Loans. The Enterprise and Business Affiliation and the Iowa Mortgage Affiliation assist the proposal. No assertion of opposition.
[3/4: short form (Excused: Whiting)]

SF 571 – Prohibition of the blocking of social networks by non-public corporations

SF 571 (SF 402) prohibits the state or political subdivisions from getting into into contracts or offering tax incentives or different advantages to sure corporations that censor on-line content material.

The unique invoice was amended as follows:

  • Removes the wording “Legislative Findings and Legislative Intent” which was a perspective on free speech and First Modification rights.
  • Defines “monopoly entity” to incorporate companies that personal or function a social networking web site, personal or function a search engine, or an individual that owns or operates an identical web site that shows content material to its customers.
  • Forces the Iowa Lawyer Normal to convey authorized motion alleging a violation of state or federal antitrust or pricing legal guidelines on these monopoly entities.
  • Provides further exceptions (i.e. Censorship Allowed) to cowl conditions the place constitutionally protected speech needs to be allowed to be eliminated or restricted on a platform: Mental Property (trademark and copyrighted materials copyright); bot generated content material; and pornography.
  • Permits a preinstalled app retailer to take away the power to obtain a social media web site (app) from its retailer if the app poses a nationwide safety risk that’s confirmed by the U.S. Division of Homeland Safety within the 60 days after deletion.

To deal with the issues of assorted authorities entities (eg, faculty boards, Regents establishments), the modification additionally bifurcates tax and non-tax incentive agreements. Agreements entered into by authorities entities and “Large Tech” corporations have to be terminated in the event that they relate to tax incentives. Authorities entities could, at their discretion, terminate all different agreements inside 90 days.

  • Tax incentive agreements have to be terminated by authorities entities upon a courtroom ruling of violation of 554E by an organization.
    • If the deal is about tax incentives, the tech firm violates the deal as soon as a courtroom finds a violation of 554E.3 (constitutionally protected censored content material), and the federal government entity is required to terminate the deal. contract and get better any tax incentives not obtained by means of efficiency. as a part of the contract
    • This termination requirement will apply to current and future contracts.
    • Authorities entities should embody a provision stipulating the duty to terminate a tax incentive in any settlement entered into on or after the date of entry into power of this invoice (potential software)
    • This provision will primarily be included in an current contract (retroactive software)
  • Non-tax incentive agreements don’t essentially need to be terminated by authorities entities, however they do have the discretion to terminate such contracts inside 90 days of the courtroom discovering a violation of 554E by an organization.
    • If the deal shouldn’t be about tax incentives, the tech firm violates the deal as soon as a courtroom finds a violation of 554E.3 (constitutionally protected censored content material), and the federal government entity shall be given the chance to terminate the contract inside 90 days of the courts discovering a violation of 554E.3 however could select to proceed the contract.
    • The 90-day termination choice have to be included as a provision in any contract a between a authorities entity and a know-how firm entered into on or after the efficient date.
    • The choice to terminate the contract inside 90 days will solely apply to contracts concluded from the efficient date of the bill.

The Lawyer Normal should create a transitional reporting system inside 30 days of the efficient date of the invoice that may function till 59 days after that date. The transitional notification system should embody at a minimal a mechanism for digital reporting of potential violations of Chapter 554E, together with proof.

The invoice comes into power upon its adoption and applies to agreements in power or concluded from the date of entry into power. SF 571 was referred to methods and means.
[3/4: 10-6, party-line (No: Democrats; Excused: Whiting)]

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