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Amendments › SF 574

Amendment H-1368 to SF 574

Relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions

Withdrawn · March 6, 2024

Filed May 4, 2023 in the House by

What it changes

  1. Page 1, before line 1 by inserting: “DIVISION I MEGA PROGRAM”
  2. Page 1, line 29, by striking “15.289” and inserting “15.291”
  3. Page 15, after line 31 by inserting: “Sec. ___. NEW SECTION . 15.290A Security requirements. An eligible business shall be required to post, as security for any default by the eligible business under the program, cash or negotiable securities having a fair market value of an amount equal to not less than twenty-five percent of the aggregate value of all tax incentives authorized by the board for the eligible business under the program. The cash or negotiable securities shall be deposited in a financial institution that is chartered in Iowa, and shall be posted on or before the date that the first tax credit certificate is issued to the eligible business. DIVISION ___ STATE INSTITUTIONS OF HIGHER EDUCATION —— PROHIBITION ON PRODUCTS, TRADEMARKS, AND LOGOS Sec. ___. NEW SECTION . 261J.1 Businesses in support of China —— prohibitions.
  4. For the purposes of this chapter, “institution” means an institution of higher education governed by the board of regents.
  5. A person who knowingly wears or displays a product made by nike, inc., or a product that displays a trademark or logo associated with nike, inc., while the person is acting in a capacity that represents an institution is guilty of a simple misdemeanor. Notwithstanding section 903.1, the penalty for a person who violates this subsection prior to January 1, 2028, shall not exceed five dollars and no jail sentence shall be imposed.
  6. On or before August 14, 2023, the state board of regents shall remove all public displays of nike, inc., paraphernalia, including uniforms and athletic wear made by nike, inc., or bearing a nike, inc., logo or trademark, from each institution. Beginning August 15, 2023, for each month an institution is found to be in violation of this subsection, notwithstanding the appropriation made to the institution for the fiscal year, ten million dollars of the institution’s appropriated moneys shall revert to the general fund of the state per month the violation continues. Sec. ___. ENUMERATED HUMAN RIGHTS —— PUBLIC INTEREST IN STATE IMAGE —— LEGISLATIVE FINDINGS.
  7. The general assembly finds that the Constitution of the State of Iowa expresses the importance of certain fundamental human rights. Among these rights are the right to freely choose religion, the right to due process of law, the right to equal protection under the law, the right to be free of arbitrary and capricious regulations and criminal laws, the right to free speech, the right to personal property, the right to free exchange of goods and ideas, and the right to be free of government coercion in private affairs.
  8. The general assembly further finds that the uniforms worn by athletes of various universities under the purview of the state board of regents are highly visible in a variety of media and create a part of the public image of this state and its citizens. Additionally, the state’s public image has tremendous value, as a positive image greatly enhances the state’s ability to trade and work with economic partners. As such, this state and its citizens have an interest to ensure that the brands and ideas these uniforms project are not contrary to the fundamental principles embraced by this state and its people.
  9. The general assembly further finds that the de facto government operating in mainland China is hostile to virtually all fundamental principles expressed in these legislative findings, and nike, inc., through its business operations in mainland China, has associated its image publicly as a supporter of the mainland Chinese government, the mainland Chinese economy, and the mainland China de facto government’s principles.
  10. The general assembly further finds that a display of nike’s trademarks and logos might be construed as approval of nike’s actions, including its support of the mainland China de facto government and its abuses of human rights. Therefore, any public or prominent association between nike and this state is highly inappropriate. DIVISION ___ PEOPLE’S REPUBLIC OF CHINA —— PRODUCTS AND SERVICES Sec. ___. NEW SECTION . 423H.1 Purpose. The purpose of this chapter is to mitigate the special injury incurred by the public from the sale of products made by or on services furnished from the People’s Republic of China and other repressive countries around the world. Sec. ___. NEW SECTION . 423H.2 Definitions. As used in this chapter:
  11. “Department” means the department of revenue.
  12. “Director” means the director of revenue.
  13. “People’s Republic of China” includes any province, region, municipality, or autonomous region of the People’s Republic of China.
  14. “Product or service” means any tangible personal property, specified digital product, or service that is subject to tax under chapter
  16. “Repressive country” means a country designated a prison state by a joint resolution enacted by the general assembly and signed by the governor. Sec. ___. NEW SECTION . 423H.3 Special mitigation excise tax. An excise tax of thirty percent shall be imposed on the sales price from the sale of any product or service made or sold by the People’s Republic of China or another repressive country. Sec. ___. NEW SECTION . 423H.4 Administration by director.
  17. The director of revenue shall administer the special mitigation excise tax as nearly as possible in conjunction with the administration of the state sales and use tax law, except that portion of the law that implements the streamlined sales and use tax agreement. The director shall provide appropriate forms, or provide on the regular state tax forms, for reporting tax liability, and for ease of administration may require tax liability to be identified, reported, and remitted to the department as sales and use tax liability, provided the department has the ability to properly identify such amounts as special mitigation excise tax revenues upon receipt.
  18. The director may require all persons who are engaged in the business of deriving any sales price or purchase price subject to tax under this chapter to register with the department. The director may also require a tax permit applicable only to this chapter for any retailer not collecting, or any user not paying, taxes under chapter
  20. Section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 through 423.42, and 423.47, consistent with the provisions of this chapter, shall apply with respect to the tax authorized under this chapter, in the same manner and with the same effect as if the special mitigation excise taxes were retail sales taxes within the meaning of those statutes. Notwithstanding this subsection, the director shall provide for monthly filing of returns and for other than monthly filing of returns both as prescribed in section 423.31. All taxes collected under this chapter by a retailer or any user are deemed to be held in trust for the state of Iowa. Sec. ___. NEW SECTION . 423H.5 Deposit of revenues. All moneys received and all refunds shall be deposited in or withdrawn from the general fund of the state. Sec. ___. NEW SECTION . 423H.6 Rules. The department of revenue shall adopt rules pursuant to chapter 17A to administer this chapter, including but not limited to rules specifying the percentage of inputs in a product or service that are necessary to constitute a product or service subject to tax under this chapter. DIVISION ___ PEOPLE’S REPUBLIC OF CHINA —— PROHIBITION ON OWNING REAL PROPERTY Sec. ___. Section 9I.1, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION .
  21. “Ultimate beneficial owner” shall mean the natural person who ultimately controls or owns specific real property, or on whose behalf a real property transaction is conducted. Sec. ___. Section 9I.2, Code 2023, is amended to read as follows: 9I.2 Alien rights Real property —— nonresident aliens and foreign governments .
  22. A nonresident alien, foreign business or foreign government may acquire , by grant, purchase, devise , or descent , real property, except agricultural land or any interest in agricultural land in this state, and may own, hold, devise , or alienate the real property, and shall incur the same duties and liabilities in relation thereto as a citizen and resident of the United States.
  23. Notwithstanding subsection 1, effective July 1, 2023, the government of the People’s Republic of China shall not acquire by grant, purchase, devise, or descent any real property located in this state.
  24. Notwithstanding subsection 1, effective July 1, 2023, a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China shall not acquire by grant, purchase, devise, or descent any real property located in this state. Legal entities, including but not limited to trusts, holding companies, multiple corporations, and other business arrangements, shall not affect the determination of ownership or control of the foreign business. If a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China owns or holds real property in this state on July 1, 2023, the corporation or business entity shall divest itself of all right, title, and interest in the real property before December 31,
  26. Notwithstanding subsection 1, effective July 1, 2023, a company or a person under the control of the communist party of China shall not acquire by grant, purchase, devise, or descent any real property located in this state. If a company or a person under the control of the communist party of China owns or holds real property in this state on July 1, 2023, the company or person shall divest itself of all right, title, and interest in the real property before December 31,
  27. Sec. ___. Section 9I.3, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION .
  28. a. Notwithstanding subsections 1, 2, 3, and 4, the government of the People’s Republic of China shall not purchase or otherwise acquire agricultural land in this state. If the government of the People’s Republic of China owns or holds agricultural land in this state on July 1, 2023, the government of the People’s Republic of China shall divest itself of all right, title, and interest in the agricultural land before December 31,
  29. b. Notwithstanding subsections 1, 2, 3, and 4, a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China shall not purchase or otherwise acquire agricultural land in this state. If a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China owns or holds agricultural land in this state on July 1, 2023, the corporation or business entity shall divest itself of all right, title, and interest in the agricultural land before December 31,
  30. c. Notwithstanding subsections 1, 2, 3, and 4, a company or a person under the control of the communist party of China shall not purchase or otherwise acquire agricultural land in this state. If a company or a person under the control of the communist party of China owns or holds agricultural land in this state on July 1, 2023, the company or person shall divest itself of all right, title, and interest in the agricultural land before December 31,
  31. Sec. ___. Section 9I.5, Code 2023, is amended to read as follows: 9I.5 Land acquired by devise or descent.
  32. A nonresident alien, foreign business or foreign government, or an agent, trustee or fiduciary thereof, which acquires agricultural land or an interest in agricultural land, by devise or descent after January 1, 1980, shall divest itself of all right, title and interest in the land within two years from the date of acquiring the land or interest. This section shall not require divestment of agricultural land or an interest in agricultural land, acquired by devise or descent from a nonresident alien, if such land or an interest in such land was acquired by any nonresident alien prior to July 1,
  34. If the government of the People’s Republic of China, acquired real property or an interest in real property by devise or descent on or before July 1, 2023, the government of the People’s Republic of China shall divest itself of all right, title, and interest in the land before December 31,
  36. If a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China, acquired real property or an interest in real property by devise or descent on or before July 1, 2023, the corporation or business entity shall divest itself of all right, title, and interest in the land before December 31,
  38. If a company or a person under the control of the communist party of China acquired real property or an interest in real property by devise or descent on or before July 1, 2023, the company or person shall divest itself of all right, title, and interest in the agricultural land before December 31,
  39. Sec. ___. Section 9I.6, Code 2023, is amended to read as follows: 9I.6 Change of status —— divestment.
  40. A person or business which purchases or otherwise acquires agricultural land in this state except by devise or descent, after January 1, 1980, and whose status changes so that it becomes a foreign business or nonresident alien subject to this chapter , shall divest itself of all right, title and interest in the land within two years from the date that its status changed.
  41. A person or business which purchased or otherwise acquired real property in this state except by devise or descent, and whose status changed so that the person or business is affiliated in any way with the government of the People’s Republic of China or the communist party of China, shall divest itself of all right, title, and interest in the land before December 31,
  43. A person or business which purchased or otherwise acquired real property in this state except by devise or descent, and whose status changed so that the person or business is affiliated in any way with a corporation incorporated under the laws of the government of the People’s Republic of China or the communist party of China, shall divest itself of all right, title, and interest in the land before December 31,
  44. Sec. ___. Section 9I.10, Code 2023, is amended to read as follows: 9I.10 Enforcement.
  45. a. If the secretary of state finds that a nonresident alien, foreign business, foreign government, or an agent, trustee, or other fiduciary thereof, has acquired or holds title to or interest in agricultural land in this state in violation of this chapter or has failed to timely register as required under section 9I.7 or has failed to timely report as required under section 9I.8 , the secretary shall report the violation to the attorney general. b. If a county recorder finds that the government of the People’s Republic of China has acquired or holds title to or interest in real property located in this state in violation of this chapter, the county recorder shall report the violation to the attorney general. c. If a county recorder finds that a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China has acquired or holds title to or interest in real property in this state in violation of this chapter, the county recorder shall report the violation to the attorney general. d. If a county recorder finds that a company or person under the control of the communist party of China has acquired or holds title to or interest in real property in this state in violation of this chapter, the county recorder shall report the violation to the attorney general.
  46. a. Upon receipt of the a report from the secretary of state or a county recorder under subsection 1 , the attorney general shall initiate an action in the district court of any county in which the land is located.
  47. b. The attorney general shall file a notice of the pendency of the action with the recorder of deeds of each county in which any of the land is located. If the court finds that the land in question has been acquired or held in violation of this chapter or the required registration has not been timely filed, it shall enter an order so declaring and shall file a copy of the order with the recorder of deeds of each county in which any portion of the land is located. Sec. ___. NEW SECTION . 9I.13 Ultimate beneficial owner —— presumption. If the ultimate beneficial owner of any real property located in this state cannot be one hundred percent determined, the presumption shall be that the real property is owned by a resident of the People’s Republic of China. Sec. ___. NEW SECTION . 9I.14 Foreign lands administration tax. Effective January 1, 2024, a monthly foreign lands administrative tax of ten percent of the fair market value of any real property in this state that is owned by a company or a person under the control of the communist party of China, the government of the People’s Republic of China, a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China, or an ultimate beneficial owner under section 9I.13 shall be charged to the owner and shall be a lien on the real property. Sec. ___. NEW SECTION . 9I.15 Tax sale. Notwithstanding any law to the contrary, on December 1, 2024, the county treasurer of each county in which real property is located on which the foreign lands administrative tax under section 9I.14 is delinquent, shall offer such real property at public sale pursuant to chapter
  48. Sec. ___. NEW SECTION . 9I.16 Treasurer of state —— administrator of trust. Notwithstanding any law to the contrary, on January 1, 2025, any real property located in this state that is owned by a company or a person under the control of the communist party of China, the government of the People’s Republic of China, a corporation incorporated under the laws of the government of the People’s Republic of China, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China, or an ultimate beneficial owner under section 9I.13, shall be placed in a trust administered by the treasurer of state. The Iowa public employees’ retirement system shall be the beneficiary of the trust.”
  49. Title page, line 3, by striking “and providing penalties” and inserting “establishing certain restrictions on specific commercial activities, and providing penalties”
  50. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book