H.F. 173 Section 1. NEW SECTION . 537A.20 Public policy of this 1 state. 2 1. It shall be the public policy of this state to protect 3 its citizens from the application of foreign laws when the 4 application of foreign law will result in the violation of 5 a right guaranteed by the Constitution of the United States 6 or the Constitution of the State of Iowa, including but 7 not limited to due process; freedom of religion, speech, or 8 press; and any right of privacy or marriage embodied in the 9 Constitution of the State of Iowa. 10 2. It shall be the public policy of this state to fully 11 recognize the right to contract freely under the laws of this 12 state, and also to recognize that this right may be reasonably 13 and rationally circumscribed pursuant to the state’s interest 14 to protect and promote rights and privileges granted under 15 the Constitution of the United States and the Constitution of 16 the State of Iowa, including but not limited to due process; 17 freedom of religion, speech, or press; and any right of privacy 18 or marriage embodied in the Constitution of the State of Iowa. 19 Sec. 2. NEW SECTION . 537A.21 Definition. 20 As used in this subchapter, “foreign law” means any law, 21 legal code, or system of a jurisdiction outside of any state or 22 territory of the United States, including but not limited to 23 international organizations and tribunals, and applied by that 24 jurisdiction’s courts, administrative bodies, or other formal 25 or informal tribunals. 26 Sec. 3. NEW SECTION . 537A.22 Use of foreign laws —— 27 enforceability. 28 Any court, arbitration, tribunal, or administrative agency 29 ruling or decision violates the public policy of this state 30 and shall be void and unenforceable if the court, arbitration, 31 tribunal, or administrative agency bases its ruling or decision 32 in the matter at issue in whole or in part on any law, legal 33 code, or system, that would not grant the parties affected by 34 the ruling or decision the same fundamental liberties, rights, 35 -1- LSB 1144YH (2) 89 cm/jh 1/ 6

H.F. 173 and privileges granted under the Constitution of the United 1 States and the Constitution of the State of Iowa, including 2 but not limited to due process; freedom of religion, speech, 3 or press; and any right of privacy or marriage embodied in the 4 Constitution of the State of Iowa. 5 Sec. 4. NEW SECTION . 537A.23 Choice of law. 6 A contract or contractual provision, if capable of 7 segregation, which provides for the choice of a law, legal 8 code, or system, to govern some or all of the disputes 9 between the parties adjudicated by a court of law or by an 10 arbitration panel arising from the contract mutually agreed 11 upon violates the public policy of this state and shall be void 12 and unenforceable if the law, legal code, or system chosen 13 includes or incorporates any substantive or procedural law, 14 as applied to the dispute at issue, that would not grant the 15 parties the same fundamental liberties, rights, and privileges 16 granted under the Constitution of the United States and the 17 Constitution of the State of Iowa, including but not limited 18 to due process; freedom of religion, speech, or press; and any 19 right of privacy or marriage embodied in the Constitution of 20 the State of Iowa. 21 Sec. 5. NEW SECTION . 537A.24 Jurisdiction. 22 A contract or contractual provision, if capable of 23 segregation, which provides for jurisdiction for the purpose 24 of granting the courts or arbitration panels in personam 25 jurisdiction over the parties to adjudicate any disputes 26 between the parties arising from the contract mutually agreed 27 upon violates the public policy of this state and shall be void 28 and unenforceable if the law, legal code, or system chosen 29 includes or incorporates any substantive or procedural law, 30 as applied to the dispute at issue, that would not grant the 31 parties the same fundamental liberties, rights, and privileges 32 granted under the Constitution of the United States and the 33 Constitution of the State of Iowa, including but not limited 34 to due process; freedom of religion, speech, or press; and any 35 -2- LSB 1144YH (2) 89 cm/jh 2/ 6

H.F. 173 right of privacy or marriage embodied in the Constitution of 1 the State of Iowa. 2 Sec. 6. NEW SECTION . 537A.25 Forum non conveniens. 3 If a person of this state, subject to personal jurisdiction 4 in this state, seeks to maintain litigation, arbitration, 5 agency, or similarly binding proceedings in this state and if 6 the courts of this state find that granting a claim of forum 7 non conveniens or a related claim violates or would likely 8 violate the constitutional rights of the nonclaimant in the 9 foreign forum with respect to the matter in dispute, the claim 10 shall be denied. 11 Sec. 7. NEW SECTION . 537A.26 Applicability. 12 1. Without prejudice to any legal right, this subchapter 13 shall not apply to a corporation, partnership, limited 14 liability corporation, business association, or other legal 15 entity that contracts to subject itself to foreign law in a 16 jurisdiction other than this state or the United States. 17 2. This subchapter shall not apply to a church or to a 18 religious corporation, association, or society, with respect 19 to individuals of a particular religion regarding matters 20 that are purely ecclesiastical, including but not limited to 21 calling a pastor, excluding members from a church, electing 22 church officers, matters concerning church bylaws, constitution 23 and doctrinal regulations, and the conduct of other routine 24 church business where the jurisdiction of the church would be 25 final, and the jurisdiction of the courts of this state would 26 be contrary to the First Amendment to the Constitution of the 27 United States and to Article I of the Constitution of the State 28 of Iowa. This exemption in no way grants permission for any 29 otherwise unlawful act under the guise of the protection of the 30 First Amendment to the Constitution of the United States. 31 Sec. 8. NEW SECTION . 537A.27 Conflict. 32 This subchapter shall not be interpreted by any court 33 to conflict with any federal treaty or other international 34 agreement to which the United States is a party to the extent 35 -3- LSB 1144YH (2) 89 cm/jh 3/ 6

H.F. 173 that such treaty or international agreement preempts or is 1 superior to state law on the matter at issue. 2 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 3 immediate importance, takes effect upon enactment. 4 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall 5 organize the provisions of this Act as a new subchapter in 6 chapter 537A. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to the application of foreign laws. 11 The bill specifies that it shall be the public policy of 12 this state to protect its citizens from the application of 13 foreign laws when the application of foreign law will result 14 in the violation of a right guaranteed by the Constitution of 15 the United States or the Constitution of the State of Iowa, 16 including but not limited to due process; freedom of religion, 17 speech, or press; and any right of privacy or marriage embodied 18 in the Constitution of the State of Iowa. 19 The bill further specifies that it is the public policy of 20 this state to fully recognize the right to contract freely 21 under the laws of this state, and also to recognize that this 22 right may be reasonably and rationally circumscribed pursuant 23 to the state’s interest to protect and promote rights and 24 privileges granted under the Constitution of the United States 25 and the Constitution of the State of Iowa. 26 As used in the bill, “foreign law” means any law, legal 27 code, or system of a jurisdiction outside of any state or 28 territory of the United States, including but not limited to 29 international organizations and tribunals, and applied by that 30 jurisdiction’s courts, administrative bodies, or other formal 31 or informal tribunals. “Foreign law” as defined would not 32 include the laws of the Native American tribes of this state as 33 that jurisdiction is within this state. 34 The bill establishes that it is a violation of the public 35 -4- LSB 1144YH (2) 89 cm/jh 4/ 6

H.F. 173 policy of this state if any court, arbitration, tribunal, 1 or administrative agency ruling or decision bases a ruling 2 or decision in the matter at issue in whole or in part 3 on any law, legal code, or system, that would not grant 4 the parties affected by the ruling or decision the same 5 fundamental liberties, rights, and privileges granted under the 6 Constitution of the United States and the Constitution of the 7 State of Iowa. The bill specifies such a ruling is void and 8 unenforceable. 9 Under the bill, a contract or contractual provision, if 10 capable of segregation, which provides for the choice of a law, 11 legal code, or system, to govern some or all of the disputes 12 between the parties arising from a contract mutually agreed 13 upon violates the public policy of this state and shall be void 14 and unenforceable if the law, legal code, or system chosen 15 includes or incorporates any substantive or procedural law, 16 as applied to the dispute at issue, that would not grant the 17 parties the same fundamental liberties, rights, and privileges 18 granted under the Constitution of the United States and the 19 Constitution of the State of Iowa. 20 A contract or contractual provision under the bill, if 21 capable of segregation, which specifies jurisdiction for 22 the purpose of granting the courts or arbitration panels in 23 personam jurisdiction over the parties to adjudicate any 24 disputes between the parties arising from a contract mutually 25 agreed upon, shall be void and unenforceable if the law, legal 26 code, or system chosen includes or incorporates any substantive 27 or procedural law, as applied to the dispute at issue, that 28 would not grant the parties the same fundamental liberties, 29 rights, and privileges granted under the Constitution of the 30 United States and the Constitution of the State of Iowa. 31 If a person of this state, subject to personal jurisdiction 32 in this state, seeks to maintain litigation, arbitration, 33 agency, or similarly binding proceedings in this state and if 34 the courts of this state find that granting a claim of forum 35 -5- LSB 1144YH (2) 89 cm/jh 5/ 6

H.F. 173 non conveniens or a related claim violates the constitutional 1 rights of the nonclaimant in the foreign forum with respect 2 to the matter in dispute, the bill requires that the claim be 3 denied. 4 The bill does not apply to a corporation, partnership, 5 limited liability corporation, business association, or other 6 legal entity that contracts to subject itself to foreign law in 7 a jurisdiction other that this state or the United States. The 8 bill also does not apply to many activities involving a church 9 or religious organization. 10 Additionally, the provisions of the bill shall not be 11 interpreted by any court to conflict with any federal treaty or 12 other international agreement to which the United States is a 13 party to the extent that such treaty or international agreement 14 preempts or is superior to state law on the matter at issue. 15 The bill takes effect upon enactment. 16 -6- LSB 1144YH (2) 89 cm/jh 6/ 6