Text: SF2242            Text: SF2244
Complete Bill History


Senate File 2243

SENATE FILE BY BOLKCOM Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to binding international trade agreements by 2 providing for the consent of the general assembly and 3 providing an effective date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5968XS 82 6 tw/rj/5 PAG LIN 1 1 Section 1. NEW SECTION. 2E.1 SHORT TITLE. 1 2 This chapter shall be known and may be cited as "The Jobs, 1 3 Trade, and Democracy Act". 1 4 Sec. 2. NEW SECTION. 2E.2 LEGISLATIVE FINDINGS. 1 5 The general assembly finds all of the following: 1 6 1. International trade agreements, including the North 1 7 American free trade agreement, and certain other existing and 1 8 pending free trade agreements which contain commercial and 1 9 trade=related provisions enforced by the world trade 1 10 organization are undermining the sovereignty and legitimate 1 11 constitutional authority enjoyed by states generally to pass 1 12 laws for the welfare of residents. Specifically, the 1 13 authority granted by Article III of the Constitution of the 1 14 State of Iowa to the general assembly to enact laws governing 1 15 the state of Iowa is being undermined by these international 1 16 trade agreements. 1 17 2. International trade agreements have impacts which 1 18 extend significantly beyond the bounds of traditional trade 1 19 matters such as tariffs and quotas and instead grant foreign 1 20 investors and service providers certain rights and privileges 1 21 regarding operations within the state of Iowa, subject Iowa 1 22 laws to challenge as barriers to trade in the binding 1 23 international tribunals created by the agreements, and place 1 24 limits on the future policy options of state legislatures. 1 25 3. The North American free trade agreement grants foreign 1 26 firms new rights and privileges for operating within Iowa that 1 27 exceed those granted to businesses domiciled within the United 1 28 States under state and federal law. The North American free 1 29 trade agreement has generated regulatory takings cases against 1 30 state and local land use decisions, state environmental and 1 31 public health policies, state court rulings, and state and 1 32 local contracts that would not have been possible in state or 1 33 federal courts. 1 34 4. When states agree to government procurement provisions 1 35 contained in trade agreements, state economic development and 2 1 environmental policies such as buy local laws, policies to 2 2 prevent the transfer of state jobs to foreign jurisdictions, 2 3 and recycled content laws could be subject to challenge as 2 4 barriers to trade because the state laws and policies conflict 2 5 with obligations in the trade agreements. 2 6 5. Trade agreements also curtail state regulatory 2 7 authority by placing constraints on future policy options. 2 8 The world trade organization services agreement could 2 9 undermine state efforts to expand health care coverage and 2 10 rein in health care costs, and places constraints on state and 2 11 local land use planning. New negotiations in the services 2 12 area could have additional implications for state regulation 2 13 of water, energy, higher education, professional licensing, 2 14 and other areas. 2 15 6. United States government trade negotiators have failed 2 16 to consult in a meaningful way with state legislatures when 2 17 seeking the consent of states to comply with trade agreement 2 18 provisions. 2 19 7. A statutory mechanism that requires federal trade 2 20 negotiators to seek consent from state legislatures prior to 2 21 binding states to conform their laws to the terms of 2 22 international commercial and trade agreements is necessary to 2 23 adhere to the tenets of federalism and to respect state 2 24 sovereignty. 2 25 Sec. 3. NEW SECTION. 2E.3 STATE LEGISLATOR POINTS OF 2 26 CONTACT. 2 27 1. APPOINTMENT. Two state legislators shall be appointed 2 28 as points of contact at the beginning of each legislative 2 29 session, one by the majority leader of the senate and one by 2 30 the speaker of the house of representatives. 2 31 2. DUTIES. The points of contact shall do all of the 2 32 following: 2 33 a. Serve as the state's official liaisons with the federal 2 34 government on trade=related matters and state law and serve as 2 35 the general assembly's liaisons with the governor on 3 1 trade=related matters. 3 2 b. Serve as the designated recipients of federal requests 3 3 for consent or consultation regarding investment, procurement, 3 4 services, or other provisions of international trade 3 5 agreements which may encroach on state law or regulatory 3 6 authority reserved to the states. 3 7 c. Transmit information regarding federal requests for 3 8 state consent to all appropriate legislative committees, the 3 9 office of the governor, and the attorney general. 3 10 d. Inform the members of the general assembly on a regular 3 11 basis about ongoing trade negotiations and dispute settlement 3 12 proceedings with implications for the state more generally. 3 13 e. Communicate the interests and concerns of the general 3 14 assembly to the United States trade representative regarding 3 15 ongoing and proposed trade negotiations. 3 16 f. Notify the United States trade representative of any 3 17 legislative action on trade issues that has taken place. 3 18 Sec. 4. NEW SECTION. 2E.4 AUTHORITY TO BIND THE STATE TO 3 19 TRADE AGREEMENTS. 3 20 1. Except as provided in subsection 2, a state official of 3 21 any branch or department of state government shall not do 3 22 either of the following: 3 23 a. Bind the state to the terms of an international trade 3 24 agreement. 3 25 b. Give consent to the United States trade representative 3 26 or any other branch or official of the United States 3 27 government to bind the state to the terms of an international 3 28 trade agreement or otherwise indicate that the state will 3 29 comply with the nontariff terms of an international trade 3 30 agreement. 3 31 2. The governor may bind the state or give a 3 32 representative of the United States government the consent to 3 33 bind the state only if both of the following conditions exist: 3 34 a. The terms of the agreement to which the governor 3 35 purports to bind the state are terms related to government 4 1 procurement, services, or investment. 4 2 b. The general assembly of the State of Iowa, pursuant to 4 3 the authority granted by Article III of the Constitution of 4 4 the State of Iowa to enact laws, has resolved to give its 4 5 consent to the agreement. 4 6 Sec. 5. NEW SECTION. 2E.5 CONSENT BY JOINT RESOLUTION. 4 7 1. Consent by the state to any provision of a trade 4 8 agreement shall only occur through a joint resolution of the 4 9 general assembly, presented to the governor for approval, as 4 10 provided in this section. 4 11 2. A request for consent to bind the state shall be 4 12 submitted to the general assembly by the governor and the 4 13 request shall contain all of the following: 4 14 a. An explanation by the attorney general as to how the 4 15 agreement of the state to the specific provisions of the 4 16 agreement will change or affect existing state law. 4 17 b. A statement of proposed administrative actions needed 4 18 to implement the trade agreement provisions in the state. 4 19 c. A draft of a joint resolution authorizing the state to 4 20 consent to the specific listed provisions of the agreement. 4 21 3. The president of the senate and the speaker of the 4 22 house of representatives shall refer the request for consent 4 23 and any attached documents to the appropriate standing 4 24 committees of the general assembly. 4 25 4. The standing committee considering a request for 4 26 consent shall hold a public hearing before any final action is 4 27 taken by the committee. 4 28 5. The request for consent shall be passed by the senate 4 29 and the house of representatives and presented to the governor 4 30 in the same manner as a bill. 4 31 Sec. 6. NEW SECTION. 2E.6 PRIOR CONSENT INVALID. 4 32 Any consent that has been given for the state of Iowa to be 4 33 bound by the government procurement rules of any international 4 34 trade agreement on or before the effective date of this Act is 4 35 invalid, and the state of Iowa is not bound by the government 5 1 procurement rules of any international trade agreement unless 5 2 the consent to be bound has been given by the state as 5 3 provided in this chapter. 5 4 Sec. 7. FEDERAL LAW FOR STATE CONSENT. It is the sense of 5 5 the general assembly that the Congress of the United States 5 6 should pass legislation instructing the United States trade 5 7 representative to fully and formally consult individual state 5 8 legislatures regarding procurement, services, investment, or 5 9 any other trade agreement provisions that impact state laws or 5 10 authority before negotiations begin on such an agreement and 5 11 as negotiations develop, and to seek consent from state 5 12 legislatures prior to binding states to conform their laws to 5 13 the terms of international trade agreements. Such federal 5 14 legislation is necessary to ensure the prior informed consent 5 15 of the state of Iowa with regard to international trade and 5 16 investment agreements. 5 17 Sec. 8. NOTICE TO THE UNITED STATES TRADE REPRESENTATIVE. 5 18 The attorney general shall notify the United States trade 5 19 representative of the provisions set forth in section 2E.3 as 5 20 enacted in this Act, in writing no later than July 1, 2008, 5 21 and shall provide copies of such notice to the majority leader 5 22 of the senate, the speaker of the house of representatives, 5 23 the president of the senate, the governor, and Iowa's 5 24 congressional delegation. 5 25 Sec. 9. EFFECTIVE DATE. The section of this Act requiring 5 26 the attorney general to provide notice to the United States 5 27 trade representative, being deemed of immediate importance, 5 28 takes effect upon enactment. 5 29 EXPLANATION 5 30 This bill relates to international commercial and trade 5 31 rules enforced by the world trade organization and established 5 32 by agreements such as the North American free trade agreement. 5 33 The bill contains a series of legislative findings 5 34 concerning the trade negotiation process. 5 35 The bill prohibits state officials from binding the state 6 1 to international trade agreements unless by the consent of the 6 2 general assembly. The bill establishes a specific procedure 6 3 for giving state consent for future trade agreements, 6 4 requiring the enactment of a joint resolution, presented to 6 5 the governor for signature, in the same manner as a bill. All 6 6 previous consents which did not follow this process are 6 7 declared void. 6 8 The bill calls on the United States congress to enact 6 9 legislation instructing the United States trade representative 6 10 to consult individual state legislatures regarding 6 11 procurement, services, investment, or any other trade 6 12 agreement provisions that impact state laws or authority 6 13 before negotiations begin and as they develop, and to seek 6 14 consent from state legislatures prior to binding states to 6 15 conform their laws to the terms of international trade 6 16 agreements. 6 17 The bill requires the attorney general to notify the United 6 18 States trade representative and Iowa's congressional 6 19 delegation of the process to give consent to an agreement no 6 20 later than July 1, 2008. This provision takes effect upon 6 21 enactment. 6 22 LSB 5968XS 82 6 23 tw/rj/5.1
Text: SF2242            Text: SF2244 Complete Bill History