House File 2490 - Introduced
HOUSE FILE
BY SHOULTZ
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act to create the model jobs, trade, and democracy Act.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
3 TLSB 6146YH 81
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PAG LIN
1 1 Section 1. MODEL JOBS, TRADE, AND DEMOCRACY ACT ==
1 2 LEGISLATIVE FINDINGS. This Act shall be known and may be
1 3 cited as the "Model Jobs, Trade, and Democracy Act".
1 4 The general assembly finds all of the following:
1 5 1. Democratic, accountable governance in the states
1 6 generally, and specifically the authority granted by Article
1 7 III of the Constitution of the State of Iowa to the Iowa
1 8 general assembly to enact statutes governing the state of
1 9 Iowa, is being undermined by international commercial and
1 10 trade rules enforced by the world trade organization and
1 11 established by the North American free trade agreement, and is
1 12 further threatened by similar provisions in an array of
1 13 pending trade agreements.
1 14 2. Trade agreements have impacts which extend
1 15 significantly beyond the bounds of traditional trade matters
1 16 such as tariffs and quotas and instead grant foreign investors
1 17 and service providers certain rights and privileges regarding
1 18 operations within the state of Iowa, subject Iowa laws to
1 19 challenge as barriers to trade in the binding dispute
1 20 resolution bodies that accompany the pacts, and place limits
1 21 on the future policy options of state legislatures.
1 22 3. The North American free trade agreement grants foreign
1 23 firms new rights and privileges for operating within Iowa that
1 24 exceed those granted to businesses domiciled within the United
1 25 States under state and federal law. The North American free
1 26 trade agreement has already generated regulatory takings cases
1 27 against state and local land use decisions, state
1 28 environmental and public health policies, adverse state court
1 29 rulings, and state and local contracts that would not have
1 30 been possible in state or federal courts.
1 31 4. When states agree to government procurement provisions
1 32 contained in trade agreements, common economic development and
1 33 environmental policies, such as buy local laws and policies to
1 34 prevent the transfer of state jobs to foreign jurisdictions,
1 35 as well as recycled content laws, could be subject to
2 1 challenge as barriers to trade as they contradict the
2 2 obligations in the trade agreements.
2 3 5. Trade agreements also curtail state regulatory
2 4 authority by placing constraints on future policy options.
2 5 The world trade organization services agreement could
2 6 undermine state efforts to expand health care coverage and
2 7 rein in health care costs, and places constraints on state and
2 8 local land use planning. New negotiations in the services
2 9 area could have additional implications for state regulation
2 10 of water, energy, higher education, professional licensing,
2 11 and other areas.
2 12 6. Federal government trade negotiators have failed to
2 13 consult in a meaningful way with state legislatures when
2 14 seeking the consent of states to comply with trade agreement
2 15 provisions.
2 16 7. A statutory mechanism that requires federal trade
2 17 negotiators to seek consent from state legislatures prior to
2 18 binding states to conform their laws to the terms of
2 19 international commercial agreements is necessary to adhere to
2 20 the tenets of federalism and state sovereignty.
2 21 Sec. 3. LEGISLATIVE DECLARATION OF POLICY.
2 22 1. STATE LEGISLATIVE POINTS OF CONTACT. Two state
2 23 legislative points of contact shall be appointed at the
2 24 beginning of each legislative session, one by the president of
2 25 the senate and one by the speaker of the house of
2 26 representatives. The points of contact shall do all of the
2 27 following:
2 28 a. Serve as the state's official liaisons with the federal
2 29 government and the general assembly's liaisons with the
2 30 governor on trade=related matters.
2 31 b. Serve as the designated recipients of federal requests
2 32 for consent or consultation regarding investment, procurement,
2 33 services, or other provisions of international trade
2 34 agreements which may encroach on state law or regulatory
2 35 authority reserved to the states.
3 1 c. Transmit information regarding federal requests for
3 2 consent to the office of the governor, the attorney general,
3 3 and all appropriate legislative committees.
3 4 d. Inform all members of the general assembly on a regular
3 5 basis about ongoing trade negotiations and dispute settlement
3 6 proceedings with implications for the state more generally.
3 7 e. Communicate the interests and concerns of the general
3 8 assembly to the United States trade representative regarding
3 9 ongoing and proposed trade negotiations.
3 10 f. Notify the United States trade representative of any
3 11 legislative action that has taken place.
3 12 2. CONSENT BY JOINT RESOLUTION. Consent by the state of
3 13 Iowa to any provision of a trade agreement shall only occur
3 14 through a joint resolution by the general assembly, presented
3 15 to the governor for signature as provided in this subsection.
3 16 All of the following actions are required before the state
3 17 of Iowa may consent to the terms of a trade agreement:
3 18 a. A request for consent must contain all of the
3 19 following:
3 20 (1) An explanation as to how the agreement of the state of
3 21 Iowa to the specific provisions of the agreement will change
3 22 or affect existing law.
3 23 (2) A statement of any administrative action proposed to
3 24 implement the trade agreement provisions in the state of Iowa.
3 25 (3) A draft of a joint resolution authorizing the state to
3 26 consent to the specific listed provisions of the agreement.
3 27 b. The speaker of the house of representatives and the
3 28 president of the senate shall refer the request for consent
3 29 and any attached documents to the appropriate standing
3 30 committees of the general assembly.
3 31 c. The standing committee considering a request for
3 32 consent shall hold a public hearing before any final action is
3 33 taken by the committee.
3 34 d. A joint resolution is passed by the senate and the
3 35 house of representatives and is presented to the governor for
4 1 signature in the same manner as a bill, authorizing the state
4 2 of Iowa to consent to specific listed provisions of an
4 3 agreement.
4 4 Sec. 4. PRIOR CONSENT VOID. Any consent that has been
4 5 given for the state of Iowa to be bound by the government
4 6 procurement rules of any international trade agreement on or
4 7 before the effective date of this Act is declared invalid and
4 8 the state of Iowa is not bound by the government procurement
4 9 rules of any international trade agreement for which consent
4 10 has been given by the state of Iowa to be bound to on or
4 11 before the effective date of this Act.
4 12 Sec. 5. FEDERAL LAW FOR STATE CONSENT. It is the sense of
4 13 the general assembly that the Congress of the United States
4 14 should pass legislation instructing the United States trade
4 15 representative to fully and formally consult individual state
4 16 legislatures regarding procurement, services, investment, or
4 17 any other trade agreement provisions that impact state laws or
4 18 authority before negotiations begin on such an agreement and
4 19 as they develop, and to seek consent from state legislatures
4 20 prior to binding states to conform their laws to the terms of
4 21 international trade agreements. Such legislation is necessary
4 22 to ensure the prior informed consent of the state of Iowa with
4 23 regard to future international trade and investment
4 24 agreements.
4 25 Sec. 6. NOTICE. The attorney general shall notify the
4 26 United States trade representative of the provisions set forth
4 27 in section 3 of this Act, in writing no later than July 1,
4 28 2006, and shall provide copies of such notice to the president
4 29 of the senate, speaker of the house of representatives, the
4 30 governor, and Iowa's congressional delegation.
4 31 EXPLANATION
4 32 This bill relates to international commercial and trade
4 33 rules enforced by the world trade organization and established
4 34 by the North American free trade agreement. The bill contains
4 35 a series of legislative findings concerning the trade
5 1 negotiation process.
5 2 The bill establishes a specific procedure for state consent
5 3 for future trade agreements, requiring the enactment of a
5 4 joint resolution, presented to the governor for signature, in
5 5 the same manner as a bill. All previous consents which did
5 6 not follow this process are declared void.
5 7 The bill calls on the United States Congress to enact
5 8 legislation instructing the United States trade representative
5 9 to consult individual state legislatures regarding
5 10 procurement, services, investment, or any other trade
5 11 agreement provisions that impact state laws or authority
5 12 before negotiations begin and as they develop, and to seek
5 13 consent from state legislatures prior to binding states to
5 14 conform their laws to the terms of international trade
5 15 agreements.
5 16 The bill requires the attorney general to notify the United
5 17 States trade representative and Iowa's congressional
5 18 delegation of the process to give consent to an agreement no
5 19 later than July 1, 2006.
5 20 LSB 6146YH 81
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