H.F. 2554 Section 1. NEW SECTION . 623.1 Prohibition on transfer of 1 civil actions involving foreign law. 2 1. As used in this section, “foreign law” means any law, 3 legal code, or legal system of a jurisdiction outside any state 4 or territory of the United States, including but not limited 5 to laws or rules of international organizations, tribunals, or 6 courts. 7 2. A court of this state, an arbitration panel, a tribunal, 8 or an administrative agency shall not transfer a civil action 9 to another court or forum if the transfer would result in 10 application of a foreign law that would violate or is likely to 11 violate a fundamental liberty, right, or privilege guaranteed 12 by the Constitution of the United States or the Constitution of 13 the State of Iowa. 14 Sec. 2. NEW SECTION . 626E.1 Application of foreign law. 15 1. As used in this section, “foreign law” means any law, 16 legal code, or legal system of a jurisdiction outside any state 17 or territory of the United States, including but not limited 18 to laws or rules of international organizations, tribunals, or 19 courts. 20 2. A ruling or decision of a court of this state, an 21 arbitration panel, a tribunal, or an administrative agency that 22 is based, in whole or in part, on a foreign law is void and 23 unenforceable if application of the foreign law denies a party 24 a fundamental liberty, right, or privilege guaranteed by the 25 Constitution of the United States or the Constitution of the 26 State of Iowa. 27 3. A contract, or a contractual provision if severable, that 28 provides for the choice or application of a foreign law is void 29 and unenforceable if application of the foreign law denies a 30 party a fundamental liberty, right, or privilege guaranteed by 31 the Constitution of the United States or the Constitution of 32 the State of Iowa. 33 4. A contract, or a contractual provision if severable, 34 that grants jurisdiction to a foreign tribunal or forum is void 35 -1- LSB 5931YH (1) 91 lh/jh 1/ 3

H.F. 2554 and unenforceable if exercise of jurisdiction by the foreign 1 tribunal or forum results in application of a foreign law that 2 denies a party a fundamental liberty, right, or privilege 3 guaranteed by the Constitution of the United States or the 4 Constitution of the State of Iowa. 5 5. This section shall not be construed to do any of the 6 following: 7 a. Disapprove, abrogate, or overturn existing precedent of 8 the supreme court. 9 b. Limit the adjudication of ecclesiastical or internal 10 religious matters of a religious organization, including the 11 selection, appointment, discipline, or removal of clergy, or 12 the interpretation of religious doctrine. 13 c. Apply to a corporation, partnership, limited liability 14 company, association, or any other type of business entity 15 that voluntarily and knowingly subjects the corporation, 16 partnership, limited liability company, association, or other 17 type of business entity to foreign law or a foreign forum. 18 d. Apply in any circumstance in which federal law preempts 19 state law, including obligations arising under treaties or 20 international agreements to which the United States is a party. 21 Sec. 3. APPLICABILITY. This Act applies to civil actions, 22 contracts, arbitrations, and administrative proceedings 23 commenced on or after the effective date of this Act. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to the application of foreign law and 28 limits the transfer of civil actions when application of 29 foreign law would violate constitutional protections. 30 The bill defines “foreign law” as law, legal codes, or 31 legal systems of jurisdictions outside any state or territory 32 of the United States, including international organizations, 33 tribunals, or courts. The bill prohibits a court of this 34 state, an arbitration panel, a tribunal, or an administrative 35 -2- LSB 5931YH (1) 91 lh/jh 2/ 3

H.F. 2554 agency from transferring a civil action to another court or 1 forum if the transfer would result in application of foreign 2 law that would violate or is likely to violate a fundamental 3 liberty, right, or privilege guaranteed by the Constitution of 4 the United States or the Constitution of the State of Iowa. 5 The bill provides that rulings or decisions of courts, 6 arbitration panels, tribunals, or administrative agencies 7 are void and unenforceable if based, in whole or in part, 8 on foreign law that denies a party a fundamental liberty, 9 right, or privilege guaranteed under the federal or state 10 constitution. The bill also provides that contracts, or 11 severable contractual provisions, selecting foreign law or 12 granting jurisdiction to a foreign tribunal or forum are void 13 and unenforceable if application of foreign law results in the 14 denial of constitutional rights. 15 The bill specifies that these provisions do not overturn 16 existing precedent of the supreme court, do not limit 17 adjudication of ecclesiastical or internal religious matters 18 of religious organizations, do not apply to entities that 19 voluntarily and knowingly subject themselves to foreign law 20 or foreign forums, and do not apply in circumstances in which 21 federal law preempts state law, including obligations arising 22 under treaties or international agreements. 23 The bill applies to civil actions, contracts, arbitrations, 24 and administrative proceedings commenced on or after the 25 effective date of the bill. 26 -3- LSB 5931YH (1) 91 lh/jh 3/ 3