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
  4 jr/cf/24

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
  5 21 jr:nh/cf/24