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House File 173 - IntroducedA Bill ForAn Act 1relating to the application of foreign laws and
2constitutional rights and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 537A.20 Public policy of this
2state.
31. It shall be the public policy of this state to protect
4its citizens from the application of foreign laws when the
5application of foreign law will result in the violation of
6a right guaranteed by the Constitution of the United States
7or the Constitution of the State of Iowa, including but
8not limited to due process; freedom of religion, speech, or
9press; and any right of privacy or marriage embodied in the
10Constitution of the State of Iowa.
112. It shall be the public policy of this state to fully
12recognize the right to contract freely under the laws of this
13state, and also to recognize that this right may be reasonably
14and rationally circumscribed pursuant to the state’s interest
15to protect and promote rights and privileges granted under
16the Constitution of the United States and the Constitution of
17the State of Iowa, including but not limited to due process;
18freedom of religion, speech, or press; and any right of privacy
19or marriage embodied in the Constitution of the State of Iowa.
20 Sec. 2. NEW SECTION. 537A.21 Definition.
21As used in this subchapter, “foreign law” means any law,
22legal code, or system of a jurisdiction outside of any state or
23territory of the United States, including but not limited to
24international organizations and tribunals, and applied by that
25jurisdiction’s courts, administrative bodies, or other formal
26or informal tribunals.
27 Sec. 3. NEW SECTION. 537A.22 Use of foreign laws —
28enforceability.
29Any court, arbitration, tribunal, or administrative agency
30ruling or decision violates the public policy of this state
31and shall be void and unenforceable if the court, arbitration,
32tribunal, or administrative agency bases its ruling or decision
33in the matter at issue in whole or in part on any law, legal
34code, or system, that would not grant the parties affected by
35the ruling or decision the same fundamental liberties, rights,
-1-1and privileges granted under the Constitution of the United
2States and the Constitution of the State of Iowa, including
3but not limited to due process; freedom of religion, speech,
4or press; and any right of privacy or marriage embodied in the
5Constitution of the State of Iowa.
6 Sec. 4. NEW SECTION. 537A.23 Choice of law.
7A contract or contractual provision, if capable of
8segregation, which provides for the choice of a law, legal
9code, or system, to govern some or all of the disputes
10between the parties adjudicated by a court of law or by an
11arbitration panel arising from the contract mutually agreed
12upon violates the public policy of this state and shall be void
13and unenforceable if the law, legal code, or system chosen
14includes or incorporates any substantive or procedural law,
15as applied to the dispute at issue, that would not grant the
16parties the same fundamental liberties, rights, and privileges
17granted under the Constitution of the United States and the
18Constitution of the State of Iowa, including but not limited
19to due process; freedom of religion, speech, or press; and any
20right of privacy or marriage embodied in the Constitution of
21the State of Iowa.
22 Sec. 5. NEW SECTION. 537A.24 Jurisdiction.
23A contract or contractual provision, if capable of
24segregation, which provides for jurisdiction for the purpose
25of granting the courts or arbitration panels in personam
26jurisdiction over the parties to adjudicate any disputes
27between the parties arising from the contract mutually agreed
28upon violates the public policy of this state and shall be void
29and unenforceable if the law, legal code, or system chosen
30includes or incorporates any substantive or procedural law,
31as applied to the dispute at issue, that would not grant the
32parties the same fundamental liberties, rights, and privileges
33granted under the Constitution of the United States and the
34Constitution of the State of Iowa, including but not limited
35to due process; freedom of religion, speech, or press; and any
-2-1right of privacy or marriage embodied in the Constitution of
2the State of Iowa.
3 Sec. 6. NEW SECTION. 537A.25 Forum non conveniens.
4If a person of this state, subject to personal jurisdiction
5in this state, seeks to maintain litigation, arbitration,
6agency, or similarly binding proceedings in this state and if
7the courts of this state find that granting a claim of forum
8non conveniens or a related claim violates or would likely
9violate the constitutional rights of the nonclaimant in the
10foreign forum with respect to the matter in dispute, the claim
11shall be denied.
12 Sec. 7. NEW SECTION. 537A.26 Applicability.
131. Without prejudice to any legal right, this subchapter
14shall not apply to a corporation, partnership, limited
15liability corporation, business association, or other legal
16entity that contracts to subject itself to foreign law in a
17jurisdiction other than this state or the United States.
182. This subchapter shall not apply to a church or to a
19religious corporation, association, or society, with respect
20to individuals of a particular religion regarding matters
21that are purely ecclesiastical, including but not limited to
22calling a pastor, excluding members from a church, electing
23church officers, matters concerning church bylaws, constitution
24and doctrinal regulations, and the conduct of other routine
25church business where the jurisdiction of the church would be
26final, and the jurisdiction of the courts of this state would
27be contrary to the First Amendment to the Constitution of the
28United States and to Article I of the Constitution of the State
29of Iowa. This exemption in no way grants permission for any
30otherwise unlawful act under the guise of the protection of the
31First Amendment to the Constitution of the United States.
32 Sec. 8. NEW SECTION. 537A.27 Conflict.
33This subchapter shall not be interpreted by any court
34to conflict with any federal treaty or other international
35agreement to which the United States is a party to the extent
-3-1that such treaty or international agreement preempts or is
2superior to state law on the matter at issue.
3 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
4immediate importance, takes effect upon enactment.
5 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall
6organize the provisions of this Act as a new subchapter in
7chapter 537A.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to the application of foreign laws.
12The bill specifies that it shall be the public policy of
13this state to protect its citizens from the application of
14foreign laws when the application of foreign law will result
15in the violation of a right guaranteed by the Constitution of
16the United States or the Constitution of the State of Iowa,
17including but not limited to due process; freedom of religion,
18speech, or press; and any right of privacy or marriage embodied
19in the Constitution of the State of Iowa.
20The bill further specifies that it is the public policy of
21this state to fully recognize the right to contract freely
22under the laws of this state, and also to recognize that this
23right may be reasonably and rationally circumscribed pursuant
24to the state’s interest to protect and promote rights and
25privileges granted under the Constitution of the United States
26and the Constitution of the State of Iowa.
27As used in the bill, “foreign law” means any law, legal
28code, or system of a jurisdiction outside of any state or
29territory of the United States, including but not limited to
30international organizations and tribunals, and applied by that
31jurisdiction’s courts, administrative bodies, or other formal
32or informal tribunals. “Foreign law” as defined would not
33include the laws of the Native American tribes of this state as
34that jurisdiction is within this state.
35The bill establishes that it is a violation of the public
-4-1policy of this state if any court, arbitration, tribunal,
2or administrative agency ruling or decision bases a ruling
3or decision in the matter at issue in whole or in part
4on any law, legal code, or system, that would not grant
5the parties affected by the ruling or decision the same
6fundamental liberties, rights, and privileges granted under the
7Constitution of the United States and the Constitution of the
8State of Iowa. The bill specifies such a ruling is void and
9unenforceable.
10Under the bill, a contract or contractual provision, if
11capable of segregation, which provides for the choice of a law,
12legal code, or system, to govern some or all of the disputes
13between the parties arising from a contract mutually agreed
14upon violates the public policy of this state and shall be void
15and unenforceable if the law, legal code, or system chosen
16includes or incorporates any substantive or procedural law,
17as applied to the dispute at issue, that would not grant the
18parties the same fundamental liberties, rights, and privileges
19granted under the Constitution of the United States and the
20Constitution of the State of Iowa.
21A contract or contractual provision under the bill, if
22capable of segregation, which specifies jurisdiction for
23the purpose of granting the courts or arbitration panels in
24personam jurisdiction over the parties to adjudicate any
25disputes between the parties arising from a contract mutually
26agreed upon, shall be void and unenforceable if the law, legal
27code, or system chosen includes or incorporates any substantive
28or procedural law, as applied to the dispute at issue, that
29would not grant the parties the same fundamental liberties,
30rights, and privileges granted under the Constitution of the
31United States and the Constitution of the State of Iowa.
32If a person of this state, subject to personal jurisdiction
33in this state, seeks to maintain litigation, arbitration,
34agency, or similarly binding proceedings in this state and if
35the courts of this state find that granting a claim of forum
-5-1non conveniens or a related claim violates the constitutional
2rights of the nonclaimant in the foreign forum with respect
3to the matter in dispute, the bill requires that the claim be
4denied.
5The bill does not apply to a corporation, partnership,
6limited liability corporation, business association, or other
7legal entity that contracts to subject itself to foreign law in
8a jurisdiction other that this state or the United States. The
9bill also does not apply to many activities involving a church
10or religious organization.
11Additionally, the provisions of the bill shall not be
12interpreted by any court to conflict with any federal treaty or
13other international agreement to which the United States is a
14party to the extent that such treaty or international agreement
15preempts or is superior to state law on the matter at issue.
16The bill takes effect upon enactment.
-6-cm/jh
2constitutional rights and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 537A.20 Public policy of this
2state.
31. It shall be the public policy of this state to protect
4its citizens from the application of foreign laws when the
5application of foreign law will result in the violation of
6a right guaranteed by the Constitution of the United States
7or the Constitution of the State of Iowa, including but
8not limited to due process; freedom of religion, speech, or
9press; and any right of privacy or marriage embodied in the
10Constitution of the State of Iowa.
112. It shall be the public policy of this state to fully
12recognize the right to contract freely under the laws of this
13state, and also to recognize that this right may be reasonably
14and rationally circumscribed pursuant to the state’s interest
15to protect and promote rights and privileges granted under
16the Constitution of the United States and the Constitution of
17the State of Iowa, including but not limited to due process;
18freedom of religion, speech, or press; and any right of privacy
19or marriage embodied in the Constitution of the State of Iowa.
20 Sec. 2. NEW SECTION. 537A.21 Definition.
21As used in this subchapter, “foreign law” means any law,
22legal code, or system of a jurisdiction outside of any state or
23territory of the United States, including but not limited to
24international organizations and tribunals, and applied by that
25jurisdiction’s courts, administrative bodies, or other formal
26or informal tribunals.
27 Sec. 3. NEW SECTION. 537A.22 Use of foreign laws —
28enforceability.
29Any court, arbitration, tribunal, or administrative agency
30ruling or decision violates the public policy of this state
31and shall be void and unenforceable if the court, arbitration,
32tribunal, or administrative agency bases its ruling or decision
33in the matter at issue in whole or in part on any law, legal
34code, or system, that would not grant the parties affected by
35the ruling or decision the same fundamental liberties, rights,
-1-1and privileges granted under the Constitution of the United
2States and the Constitution of the State of Iowa, including
3but not limited to due process; freedom of religion, speech,
4or press; and any right of privacy or marriage embodied in the
5Constitution of the State of Iowa.
6 Sec. 4. NEW SECTION. 537A.23 Choice of law.
7A contract or contractual provision, if capable of
8segregation, which provides for the choice of a law, legal
9code, or system, to govern some or all of the disputes
10between the parties adjudicated by a court of law or by an
11arbitration panel arising from the contract mutually agreed
12upon violates the public policy of this state and shall be void
13and unenforceable if the law, legal code, or system chosen
14includes or incorporates any substantive or procedural law,
15as applied to the dispute at issue, that would not grant the
16parties the same fundamental liberties, rights, and privileges
17granted under the Constitution of the United States and the
18Constitution of the State of Iowa, including but not limited
19to due process; freedom of religion, speech, or press; and any
20right of privacy or marriage embodied in the Constitution of
21the State of Iowa.
22 Sec. 5. NEW SECTION. 537A.24 Jurisdiction.
23A contract or contractual provision, if capable of
24segregation, which provides for jurisdiction for the purpose
25of granting the courts or arbitration panels in personam
26jurisdiction over the parties to adjudicate any disputes
27between the parties arising from the contract mutually agreed
28upon violates the public policy of this state and shall be void
29and unenforceable if the law, legal code, or system chosen
30includes or incorporates any substantive or procedural law,
31as applied to the dispute at issue, that would not grant the
32parties the same fundamental liberties, rights, and privileges
33granted under the Constitution of the United States and the
34Constitution of the State of Iowa, including but not limited
35to due process; freedom of religion, speech, or press; and any
-2-1right of privacy or marriage embodied in the Constitution of
2the State of Iowa.
3 Sec. 6. NEW SECTION. 537A.25 Forum non conveniens.
4If a person of this state, subject to personal jurisdiction
5in this state, seeks to maintain litigation, arbitration,
6agency, or similarly binding proceedings in this state and if
7the courts of this state find that granting a claim of forum
8non conveniens or a related claim violates or would likely
9violate the constitutional rights of the nonclaimant in the
10foreign forum with respect to the matter in dispute, the claim
11shall be denied.
12 Sec. 7. NEW SECTION. 537A.26 Applicability.
131. Without prejudice to any legal right, this subchapter
14shall not apply to a corporation, partnership, limited
15liability corporation, business association, or other legal
16entity that contracts to subject itself to foreign law in a
17jurisdiction other than this state or the United States.
182. This subchapter shall not apply to a church or to a
19religious corporation, association, or society, with respect
20to individuals of a particular religion regarding matters
21that are purely ecclesiastical, including but not limited to
22calling a pastor, excluding members from a church, electing
23church officers, matters concerning church bylaws, constitution
24and doctrinal regulations, and the conduct of other routine
25church business where the jurisdiction of the church would be
26final, and the jurisdiction of the courts of this state would
27be contrary to the First Amendment to the Constitution of the
28United States and to Article I of the Constitution of the State
29of Iowa. This exemption in no way grants permission for any
30otherwise unlawful act under the guise of the protection of the
31First Amendment to the Constitution of the United States.
32 Sec. 8. NEW SECTION. 537A.27 Conflict.
33This subchapter shall not be interpreted by any court
34to conflict with any federal treaty or other international
35agreement to which the United States is a party to the extent
-3-1that such treaty or international agreement preempts or is
2superior to state law on the matter at issue.
3 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
4immediate importance, takes effect upon enactment.
5 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall
6organize the provisions of this Act as a new subchapter in
7chapter 537A.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to the application of foreign laws.
12The bill specifies that it shall be the public policy of
13this state to protect its citizens from the application of
14foreign laws when the application of foreign law will result
15in the violation of a right guaranteed by the Constitution of
16the United States or the Constitution of the State of Iowa,
17including but not limited to due process; freedom of religion,
18speech, or press; and any right of privacy or marriage embodied
19in the Constitution of the State of Iowa.
20The bill further specifies that it is the public policy of
21this state to fully recognize the right to contract freely
22under the laws of this state, and also to recognize that this
23right may be reasonably and rationally circumscribed pursuant
24to the state’s interest to protect and promote rights and
25privileges granted under the Constitution of the United States
26and the Constitution of the State of Iowa.
27As used in the bill, “foreign law” means any law, legal
28code, or system of a jurisdiction outside of any state or
29territory of the United States, including but not limited to
30international organizations and tribunals, and applied by that
31jurisdiction’s courts, administrative bodies, or other formal
32or informal tribunals. “Foreign law” as defined would not
33include the laws of the Native American tribes of this state as
34that jurisdiction is within this state.
35The bill establishes that it is a violation of the public
-4-1policy of this state if any court, arbitration, tribunal,
2or administrative agency ruling or decision bases a ruling
3or decision in the matter at issue in whole or in part
4on any law, legal code, or system, that would not grant
5the parties affected by the ruling or decision the same
6fundamental liberties, rights, and privileges granted under the
7Constitution of the United States and the Constitution of the
8State of Iowa. The bill specifies such a ruling is void and
9unenforceable.
10Under the bill, a contract or contractual provision, if
11capable of segregation, which provides for the choice of a law,
12legal code, or system, to govern some or all of the disputes
13between the parties arising from a contract mutually agreed
14upon violates the public policy of this state and shall be void
15and unenforceable if the law, legal code, or system chosen
16includes or incorporates any substantive or procedural law,
17as applied to the dispute at issue, that would not grant the
18parties the same fundamental liberties, rights, and privileges
19granted under the Constitution of the United States and the
20Constitution of the State of Iowa.
21A contract or contractual provision under the bill, if
22capable of segregation, which specifies jurisdiction for
23the purpose of granting the courts or arbitration panels in
24personam jurisdiction over the parties to adjudicate any
25disputes between the parties arising from a contract mutually
26agreed upon, shall be void and unenforceable if the law, legal
27code, or system chosen includes or incorporates any substantive
28or procedural law, as applied to the dispute at issue, that
29would not grant the parties the same fundamental liberties,
30rights, and privileges granted under the Constitution of the
31United States and the Constitution of the State of Iowa.
32If a person of this state, subject to personal jurisdiction
33in this state, seeks to maintain litigation, arbitration,
34agency, or similarly binding proceedings in this state and if
35the courts of this state find that granting a claim of forum
-5-1non conveniens or a related claim violates the constitutional
2rights of the nonclaimant in the foreign forum with respect
3to the matter in dispute, the bill requires that the claim be
4denied.
5The bill does not apply to a corporation, partnership,
6limited liability corporation, business association, or other
7legal entity that contracts to subject itself to foreign law in
8a jurisdiction other that this state or the United States. The
9bill also does not apply to many activities involving a church
10or religious organization.
11Additionally, the provisions of the bill shall not be
12interpreted by any court to conflict with any federal treaty or
13other international agreement to which the United States is a
14party to the extent that such treaty or international agreement
15preempts or is superior to state law on the matter at issue.
16The bill takes effect upon enactment.
-6-cm/jh