H.F. 489 Section 1. NEW SECTION . 537C.1 Definition. 1 As used in this chapter, “foreign law, legal code, or system” 2 means any law, legal code, or system of a jurisdiction outside 3 of any state or territory of the United States, including but 4 not limited to international organizations and tribunals, and 5 applied by that jurisdiction’s courts, administrative bodies, 6 or other formal or informal tribunals. 7 Sec. 2. NEW SECTION . 537C.2 Comity. 8 It is the public policy of this state that the primary factor 9 which a court, administrative agency, arbitrator, mediator, or 10 other entity or person acting under the authority of state law 11 shall consider in granting comity to a decision rendered under 12 any foreign law, legal code, or system against a person in this 13 state is whether the decision rendered violated any right of 14 the person in this state guaranteed by the Constitution of the 15 State of Iowa, the Constitution of the United States, or any 16 statute enacted or decision issued under the constitution of 17 the state of Iowa or the United States. 18 Sec. 3. NEW SECTION . 537C.3 Interpretation —— foreign law. 19 If any contract, arbitration agreement, or other agreement 20 provides for the choice of a foreign law, legal code, or 21 system to govern its interpretation or resolution of any claim 22 or dispute and if the enforcement or interpretation of the 23 contract, arbitration agreement, or other agreement applying 24 that choice of law provision either resulted or would result 25 in a violation of any guaranteed right by the Constitution of 26 the State of Iowa or the Constitution of the United States, it 27 is the public policy of this state that the primary factor in 28 interpretation, enforcement, or application of the contract, 29 arbitration agreement, or other agreement shall be preservation 30 of the constitutional rights of the person in this state 31 against whom enforcement is sought, unless otherwise directed 32 by another provision of the law. 33 Sec. 4. NEW SECTION . 537C.4 Voluntary restriction of 34 constitutional rights. 35 -1- LSB 2004YH (3) 84 jm/rj 1/ 4

H.F. 489 This chapter shall not be construed to limit the right 1 of a person of this state to voluntarily restrict or limit 2 the constitutional rights of a person by contract or waiver. 3 However, the language of any such contract or other waiver 4 shall be strictly construed in favor of preserving the 5 constitutional rights of the person of this state. 6 Sec. 5. NEW SECTION . 537C.5 Venue. 7 If any contract, arbitration agreement, or other agreement 8 provides for the choice of venue or forum outside any state 9 or territory of the United States and if the enforcement or 10 interpretation of the contract, arbitration agreement, or 11 other agreement applying that choice of venue or forum either 12 resulted or would result in a violation of any guaranteed right 13 by the Constitution of the State of Iowa or the Constitution 14 of the United States, it is the public policy of this state 15 that in interpreting or construing the contract or arbitration 16 agreement, the primary factor to be considered is whether 17 the contract or arbitration agreement can be interpreted or 18 construed to preserve the constitutional rights of the person 19 in this state against whom enforcement is sought. 20 Sec. 6. NEW SECTION . 537C.6 Forum non conveniens. 21 If a person of this state, subject to personal jurisdiction 22 in this state, seeks to maintain litigation, arbitration, 23 agency, or similarly binding proceedings in this state and if 24 the courts of this state find that granting a claim of forum 25 non conveniens or a related claim violates or would likely 26 violate the constitutional rights of the nonclaimant in the 27 foreign forum with respect to the matter in dispute, it is the 28 public policy of this state that the claim shall be denied. 29 Sec. 7. NEW SECTION . 537C.7 Applicability. 30 This chapter does not apply to a corporation, partnership, 31 or other business entity. 32 Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 33 immediate importance, takes effect upon enactment. 34 EXPLANATION 35 -2- LSB 2004YH (3) 84 jm/rj 2/ 4

H.F. 489 This bill relates to the application of foreign laws. 1 As used in the bill, “foreign law” means any law, legal 2 code, or system of a jurisdiction outside of any state or 3 territory of the United States, including but not limited to 4 international organizations and tribunals, and applied by that 5 jurisdiction’s courts, administrative bodies, or other formal 6 or informal tribunals. 7 The bill establishes it is the public policy of this state 8 that the primary factor a court, administrative agency, 9 arbitrator, mediator, or other entity or person acting under 10 the authority of this state shall consider is whether the 11 decision of a foreign court or similar body rendered against a 12 person of this state violated any constitutional rights of the 13 person, prior to granting comity to such a decision. 14 Under the bill, if any contract, arbitration agreement, 15 or other agreement provides for the choice of a foreign 16 law to govern its interpretation or resolution of any claim 17 or dispute and if the enforcement or interpretation of the 18 contract, arbitration agreement, or other agreement applying 19 that choice of law provision results in a violation of any 20 guaranteed constitutional rights, the bill establishes that it 21 is the public policy of this state that the primary factor in 22 interpretation, enforcement, or application of the contract, 23 arbitration agreement, or other agreement shall be preservation 24 of the constitutional rights of the person in this state, 25 unless otherwise directed by another provision of the law. 26 Under the bill, if any contract or agreement provides for 27 the choice of venue or forum outside any state or territory of 28 the United States and if the enforcement or interpretation of 29 the contract or agreement applying the choice of venue or forum 30 results in a violation of any guaranteed constitutional rights, 31 the bill establishes that it is the public policy of this state 32 that in interpreting or construing the contract or agreement, 33 the primary factor to be considered is whether it can be 34 interpreted or construed to preserve the constitutional rights 35 -3- LSB 2004YH (3) 84 jm/rj 3/ 4

H.F. 489 of the person in this state against whom enforcement is sought. 1 If a person of this state, subject to personal jurisdiction 2 in this state, seeks to maintain litigation, arbitration, 3 agency, or similarly binding proceedings in this state and if 4 the courts of this state find that granting a claim of forum 5 non conveniens or a related claim violates the constitutional 6 rights of the nonclaimant in the foreign forum with respect 7 to the matter in dispute, the bill establishes that it is the 8 public policy of this state that the claim be denied. 9 The bill does not apply to a corporation, partnership, or 10 other business entity. 11 The bill takes effect upon enactment. 12 -4- LSB 2004YH (3) 84 jm/rj 4/ 4