Economic Growth and Technology

This Iowa bill regulates chatbot deployers by requiring safety protocols to detect and mitigate user harm, while limiting data collection to what's necessary for the chatbot's purpose. It mandates age verification to prevent minors from accessing chatbots, with exceptions for mental health chatbots that provide clinical evidence, professional recommendations, and clear disclaimers about their non-professional nature. Deployers must document testing and disclose limitations to parents/guardians for minor-accessible mental health chatbots. Violations may result in civil penalties up to $2,500 per incident.

This bill creates a sales tax exemption for clothing priced under $100 purchased on July 3-5, 2026, to commemorate the 250th anniversary of the Declaration of Independence. It also establishes a task force to organize state-wide events, decorate the Capitol complex for a holiday season display, and create an educational "250" display visible from the air. Public schools must provide Constitution-related lessons on September 17, 2026, and public broadcasting must air anniversary-focused programming in 2026-2027. The bill directly affects Iowa residents through tax relief, schools through curriculum requirements, and state agencies through event planning.

This bill requires data center businesses in Iowa that claim sales tax exemptions or refunds to invest 5% of the claimed amount annually into qualifying businesses or innovation funds. Specifically, they must make this investment by year-end based on the prior year's exemption/refund value. If they fail, the state cancels their tax exemption eligibility and requires repayment of the full claimed amount as a tax payment. The bill also updates annual reporting requirements for data centers to include details about exempt property purchases and tax refunds starting in 2027.

This Iowa bill defines key terms like "input" (user-provided data/directions), "output" (AI-generated content like text or images), and "trained artificial intelligence" (the AI model after training). It states that a user who provides input owns the AI-generated output, unless it infringes on third-party copyrights. A person who trains an AI owns the resulting model if the training data was lawfully acquired and ownership wasn't transferred via contract. If an employee uses AI within their job duties under employer direction, the employer owns the output or trained AI, provided it doesn't infringe existing intellectual property rights.

This bill establishes four new programs under Iowa's Economic Development Authority to support the state's game industry. It creates a tax credit program offering up to 30% of eligible development costs (with a $20 million annual cap) for companies maintaining a physical presence and $250,000 in state payroll. It also provides forgivable loans matching private investments in Iowa game studios (capped at $20 million per studio annually) and offers $150,000-$200,000 annual grants for industry professionals to relocate and work in education, consulting, or industry-building roles for two years. These programs directly affect game developers, investors, and industry professionals seeking to establish or grow Iowa-based operations.