H.F. 135 Section 1. NEW SECTION . 537C.1 Public policy of this state. 1 1. It shall be the public policy of this state to protect 2 its citizens from the application of foreign laws when the 3 application of foreign law will result in the violation of 4 a right guaranteed by the Constitution of the United States 5 or the Constitution of the State of Iowa, including but 6 not limited to due process; freedom of religion, speech, or 7 press; and any right of privacy or marriage embodied in the 8 Constitution of the State of Iowa. 9 2. It shall be the public policy of this state to fully 10 recognize the right to contract freely under the laws of this 11 state, and also to recognize that this right may be reasonably 12 and rationally circumscribed pursuant to the state’s interest 13 to protect and promote rights and privileges granted under 14 the Constitution of the United States and the Constitution of 15 the State of Iowa, including but not limited to due process; 16 freedom of religion, speech, or press; and any right of privacy 17 or marriage embodied in the Constitution of the State of Iowa. 18 Sec. 2. NEW SECTION . 537C.2 Definition. 19 As used in this chapter, “foreign law” means any law, legal 20 code, or system of a jurisdiction outside of any state or 21 territory of the United States, including but not limited to 22 international organizations and tribunals, and applied by that 23 jurisdiction’s courts, administrative bodies, or other formal 24 or informal tribunals. 25 Sec. 3. NEW SECTION . 537C.3 Use of foreign laws —— 26 enforceability. 27 Any court, arbitration, tribunal, or administrative agency 28 ruling or decision violates the public policy of this state 29 and shall be void and unenforceable if the court, arbitration, 30 tribunal, or administrative agency bases its ruling or decision 31 in the matter at issue in whole or in part on any law, legal 32 code, or system, that would not grant the parties affected by 33 the ruling or decision the same fundamental liberties, rights, 34 and privileges granted under the Constitution of the United 35 -1- LSB 1702YH (3) 86 jm/rj 1/ 6

H.F. 135 States and the Constitution of the State of Iowa, including 1 but not limited to due process; freedom of religion, speech, 2 or press; and any right of privacy or marriage embodied in the 3 Constitution of the State of Iowa. 4 Sec. 4. NEW SECTION . 537C.4 Choice of law. 5 A contract or contractual provision, if capable of 6 segregation, which provides for the choice of a law, legal 7 code, or system, to govern some or all of the disputes 8 between the parties adjudicated by a court of law or by an 9 arbitration panel arising from the contract mutually agreed 10 upon violates the public policy of this state and shall be void 11 and unenforceable if the law, legal code, or system chosen 12 includes or incorporates any substantive or procedural law, 13 as applied to the dispute at issue, that would not grant the 14 parties the same fundamental liberties, rights, and privileges 15 granted under the Constitution of the United States and the 16 Constitution of the State of Iowa, including but not limited 17 to due process; freedom of religion, speech, or press; and any 18 right of privacy or marriage embodied in the Constitution of 19 the State of Iowa. 20 Sec. 5. NEW SECTION . 537C.5 Jurisdiction. 21 A contract or contractual provision, if capable of 22 segregation, which provides for jurisdiction for the purpose 23 of granting the courts or arbitration panels in personam 24 jurisdiction over the parties to adjudicate any disputes 25 between the parties arising from the contract mutually agreed 26 upon violates the public policy of this state and shall be void 27 and unenforceable if the law, legal code, or system chosen 28 includes or incorporates any substantive or procedural law, 29 as applied to the dispute at issue, that would not grant the 30 parties the same fundamental liberties, rights, and privileges 31 granted under the Constitution of the United States and the 32 Constitution of the State of Iowa, including but not limited 33 to due process; freedom of religion, speech, or press; and any 34 right of privacy or marriage embodied in the Constitution of 35 -2- LSB 1702YH (3) 86 jm/rj 2/ 6

H.F. 135 the State of Iowa. 1 Sec. 6. NEW SECTION . 537C.6 Forum non conveniens. 2 If a person of this state, subject to personal jurisdiction 3 in this state, seeks to maintain litigation, arbitration, 4 agency, or similarly binding proceedings in this state and if 5 the courts of this state find that granting a claim of forum 6 non conveniens or a related claim violates or would likely 7 violate the constitutional rights of the nonclaimant in the 8 foreign forum with respect to the matter in dispute, the claim 9 shall be denied. 10 Sec. 7. NEW SECTION . 537C.7 Applicability. 11 1. Without prejudice to any legal right, this chapter shall 12 not apply to a corporation, partnership, limited liability 13 corporation, business association, or other legal entity that 14 contracts to subject itself to foreign law in a jurisdiction 15 other than this state or the United States. 16 2. This chapter shall not apply to a church or to a 17 religious corporation, association, or society, with respect 18 to individuals of a particular religion regarding matters 19 that are purely ecclesiastical, including but not limited to 20 calling a pastor, excluding members from a church, electing 21 church officers, matters concerning church bylaws, constitution 22 and doctrinal regulations, and the conduct of other routine 23 church business where the jurisdiction of the church would be 24 final, and the jurisdiction of the courts of this state would 25 be contrary to the First Amendment to the Constitution of the 26 United States and to Article I of the Constitution of the State 27 of Iowa. This exemption in no way grants permission for any 28 otherwise unlawful act under the guise of the protection of the 29 First Amendment to the Constitution of the United States. 30 Sec. 8. NEW SECTION . 537C.8 Conflict. 31 This chapter shall not be interpreted by any court to 32 conflict with any federal treaty or other international 33 agreement to which the United States is a party to the extent 34 that such treaty or international agreement preempts or is 35 -3- LSB 1702YH (3) 86 jm/rj 3/ 6

H.F. 135 superior to state law on the matter at issue. 1 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to the application of foreign laws. 7 The bill specifies that it shall be the public policy of 8 this state to protect its citizens from the application of 9 foreign laws when the application of foreign law will result 10 in the violation of a right guaranteed by the Constitution of 11 the United States or the Constitution of the State of Iowa, 12 including but not limited to due process; freedom of religion, 13 speech, or press; and any right of privacy or marriage embodied 14 in the Constitution of the State of Iowa. 15 The bill further specifies that it is the public policy of 16 this state to fully recognize the right to contract freely 17 under the laws of this state, and also to recognize that this 18 right may be reasonably and rationally circumscribed pursuant 19 to the state’s interest to protect and promote rights and 20 privileges granted under the Constitution of the United States 21 and the Constitution of the State of Iowa. 22 As used in the bill, “foreign law” means any law, legal 23 code, or system of a jurisdiction outside of any state or 24 territory of the United States, including but not limited to 25 international organizations and tribunals, and applied by that 26 jurisdiction’s courts, administrative bodies, or other formal 27 or informal tribunals. “Foreign law” as defined would not 28 include the laws of the Native American tribes of this state as 29 that jurisdiction is within this state. 30 The bill establishes that it is a violation of the public 31 policy of this state if any court, arbitration, tribunal, 32 or administrative agency ruling or decision bases a ruling 33 or decision in the matter at issue in whole or in part 34 on any law, legal code, or system, that would not grant 35 -4- LSB 1702YH (3) 86 jm/rj 4/ 6

H.F. 135 the parties affected by the ruling or decision the same 1 fundamental liberties, rights, and privileges granted under the 2 Constitution of the United States and the Constitution of the 3 State of Iowa. The bill specifies such a ruling is void and 4 unenforceable. 5 Under the bill, a contract or contractual provision, if 6 capable of segregation, which provides for the choice of a law, 7 legal code, or system, to govern some or all of the disputes 8 between the parties arising from a contract mutually agreed 9 upon violates the public policy of this state and shall be void 10 and unenforceable if the law, legal code, or system chosen 11 includes or incorporates any substantive or procedural law, 12 as applied to the dispute at issue, that would not grant the 13 parties the same fundamental liberties, rights, and privileges 14 granted under the Constitution of the United States and the 15 Constitution of the State of Iowa. 16 A contract or contractual provision under the bill, if 17 capable of segregation, which specifies jurisdiction for 18 the purpose of granting the courts or arbitration panels in 19 personam jurisdiction over the parties to adjudicate any 20 disputes between the parties arising from a contract mutually 21 agreed upon, shall be void and unenforceable if the law, legal 22 code, or system chosen includes or incorporates any substantive 23 or procedural law, as applied to the dispute at issue, that 24 would not grant the parties the same fundamental liberties, 25 rights, and privileges granted under the Constitution of the 26 United States and the Constitution of the State of Iowa. 27 If a person of this state, subject to personal jurisdiction 28 in this state, seeks to maintain litigation, arbitration, 29 agency, or similarly binding proceedings in this state and if 30 the courts of this state find that granting a claim of forum 31 non conveniens or a related claim violates the constitutional 32 rights of the nonclaimant in the foreign forum with respect 33 to the matter in dispute, the bill requires that the claim be 34 denied. 35 -5- LSB 1702YH (3) 86 jm/rj 5/ 6

H.F. 135 The bill does not apply to a corporation, partnership, 1 limited liability corporation, business association, or other 2 legal entity that contracts to subject itself to foreign law in 3 a jurisdiction other that this state or the United States. The 4 bill also does not apply to many activities involving a church 5 or religious organization. 6 Additionally, the provisions of the bill shall not be 7 interpreted by any court to conflict with any federal treaty or 8 other international agreement to which the United States is a 9 party to the extent that such treaty or international agreement 10 preempts or is superior to state law on the matter at issue. 11 The bill takes effect upon enactment. 12 -6- LSB 1702YH (3) 86 jm/rj 6/ 6