Bill Text: IA HF135 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the application of foreign laws, and including effective date provisions.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Introduced - Dead) 2015-02-02 - Introduced, referred to Judiciary. H.J. 183. [HF135 Detail]
Download: Iowa-2015-HF135-Introduced.html
House File 135 - Introduced HOUSE FILE BY WATTS, SALMON, SHEETS, HEARTSILL, FORRISTALL, VANDER LINDEN, HOLT, BAUDLER, LANDON, GUSTAFSON, KOOIKER, GASSMAN, and FISHER A BILL FOR 1 An Act relating to the application of foreign laws, and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1702YH (3) 86 jm/rj PAG LIN 1 1 Section 1. NEW SECTION. 537C.1 Public policy of this state. 1 2 1. It shall be the public policy of this state to protect 1 3 its citizens from the application of foreign laws when the 1 4 application of foreign law will result in the violation of 1 5 a right guaranteed by the Constitution of the United States 1 6 or the Constitution of the State of Iowa, including but 1 7 not limited to due process; freedom of religion, speech, or 1 8 press; and any right of privacy or marriage embodied in the 1 9 Constitution of the State of Iowa. 1 10 2. It shall be the public policy of this state to fully 1 11 recognize the right to contract freely under the laws of this 1 12 state, and also to recognize that this right may be reasonably 1 13 and rationally circumscribed pursuant to the state's interest 1 14 to protect and promote rights and privileges granted under 1 15 the Constitution of the United States and the Constitution of 1 16 the State of Iowa, including but not limited to due process; 1 17 freedom of religion, speech, or press; and any right of privacy 1 18 or marriage embodied in the Constitution of the State of Iowa. 1 19 Sec. 2. NEW SECTION. 537C.2 Definition. 1 20 As used in this chapter, "foreign law" means any law, legal 1 21 code, or system of a jurisdiction outside of any state or 1 22 territory of the United States, including but not limited to 1 23 international organizations and tribunals, and applied by that 1 24 jurisdiction's courts, administrative bodies, or other formal 1 25 or informal tribunals. 1 26 Sec. 3. NEW SECTION. 537C.3 Use of foreign laws ==== 1 27 enforceability. 1 28 Any court, arbitration, tribunal, or administrative agency 1 29 ruling or decision violates the public policy of this state 1 30 and shall be void and unenforceable if the court, arbitration, 1 31 tribunal, or administrative agency bases its ruling or decision 1 32 in the matter at issue in whole or in part on any law, legal 1 33 code, or system, that would not grant the parties affected by 1 34 the ruling or decision the same fundamental liberties, rights, 1 35 and privileges granted under the Constitution of the United 2 1 States and the Constitution of the State of Iowa, including 2 2 but not limited to due process; freedom of religion, speech, 2 3 or press; and any right of privacy or marriage embodied in the 2 4 Constitution of the State of Iowa. 2 5 Sec. 4. NEW SECTION. 537C.4 Choice of law. 2 6 A contract or contractual provision, if capable of 2 7 segregation, which provides for the choice of a law, legal 2 8 code, or system, to govern some or all of the disputes 2 9 between the parties adjudicated by a court of law or by an 2 10 arbitration panel arising from the contract mutually agreed 2 11 upon violates the public policy of this state and shall be void 2 12 and unenforceable if the law, legal code, or system chosen 2 13 includes or incorporates any substantive or procedural law, 2 14 as applied to the dispute at issue, that would not grant the 2 15 parties the same fundamental liberties, rights, and privileges 2 16 granted under the Constitution of the United States and the 2 17 Constitution of the State of Iowa, including but not limited 2 18 to due process; freedom of religion, speech, or press; and any 2 19 right of privacy or marriage embodied in the Constitution of 2 20 the State of Iowa. 2 21 Sec. 5. NEW SECTION. 537C.5 Jurisdiction. 2 22 A contract or contractual provision, if capable of 2 23 segregation, which provides for jurisdiction for the purpose 2 24 of granting the courts or arbitration panels in personam 2 25 jurisdiction over the parties to adjudicate any disputes 2 26 between the parties arising from the contract mutually agreed 2 27 upon violates the public policy of this state and shall be void 2 28 and unenforceable if the law, legal code, or system chosen 2 29 includes or incorporates any substantive or procedural law, 2 30 as applied to the dispute at issue, that would not grant the 2 31 parties the same fundamental liberties, rights, and privileges 2 32 granted under the Constitution of the United States and the 2 33 Constitution of the State of Iowa, including but not limited 2 34 to due process; freedom of religion, speech, or press; and any 2 35 right of privacy or marriage embodied in the Constitution of 3 1 the State of Iowa. 3 2 Sec. 6. NEW SECTION. 537C.6 Forum non conveniens. 3 3 If a person of this state, subject to personal jurisdiction 3 4 in this state, seeks to maintain litigation, arbitration, 3 5 agency, or similarly binding proceedings in this state and if 3 6 the courts of this state find that granting a claim of forum 3 7 non conveniens or a related claim violates or would likely 3 8 violate the constitutional rights of the nonclaimant in the 3 9 foreign forum with respect to the matter in dispute, the claim 3 10 shall be denied. 3 11 Sec. 7. NEW SECTION. 537C.7 Applicability. 3 12 1. Without prejudice to any legal right, this chapter shall 3 13 not apply to a corporation, partnership, limited liability 3 14 corporation, business association, or other legal entity that 3 15 contracts to subject itself to foreign law in a jurisdiction 3 16 other than this state or the United States. 3 17 2. This chapter shall not apply to a church or to a 3 18 religious corporation, association, or society, with respect 3 19 to individuals of a particular religion regarding matters 3 20 that are purely ecclesiastical, including but not limited to 3 21 calling a pastor, excluding members from a church, electing 3 22 church officers, matters concerning church bylaws, constitution 3 23 and doctrinal regulations, and the conduct of other routine 3 24 church business where the jurisdiction of the church would be 3 25 final, and the jurisdiction of the courts of this state would 3 26 be contrary to the First Amendment to the Constitution of the 3 27 United States and to Article I of the Constitution of the State 3 28 of Iowa. This exemption in no way grants permission for any 3 29 otherwise unlawful act under the guise of the protection of the 3 30 First Amendment to the Constitution of the United States. 3 31 Sec. 8. NEW SECTION. 537C.8 Conflict. 3 32 This chapter shall not be interpreted by any court to 3 33 conflict with any federal treaty or other international 3 34 agreement to which the United States is a party to the extent 3 35 that such treaty or international agreement preempts or is 4 1 superior to state law on the matter at issue. 4 2 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 4 3 immediate importance, takes effect upon enactment. 4 4 EXPLANATION 4 5 The inclusion of this explanation does not constitute agreement with 4 6 the explanation's substance by the members of the general assembly. 4 7 This bill relates to the application of foreign laws. 4 8 The bill specifies that it shall be the public policy of 4 9 this state to protect its citizens from the application of 4 10 foreign laws when the application of foreign law will result 4 11 in the violation of a right guaranteed by the Constitution of 4 12 the United States or the Constitution of the State of Iowa, 4 13 including but not limited to due process; freedom of religion, 4 14 speech, or press; and any right of privacy or marriage embodied 4 15 in the Constitution of the State of Iowa. 4 16 The bill further specifies that it is the public policy of 4 17 this state to fully recognize the right to contract freely 4 18 under the laws of this state, and also to recognize that this 4 19 right may be reasonably and rationally circumscribed pursuant 4 20 to the state's interest to protect and promote rights and 4 21 privileges granted under the Constitution of the United States 4 22 and the Constitution of the State of Iowa. 4 23 As used in the bill, "foreign law" means any law, legal 4 24 code, or system of a jurisdiction outside of any state or 4 25 territory of the United States, including but not limited to 4 26 international organizations and tribunals, and applied by that 4 27 jurisdiction's courts, administrative bodies, or other formal 4 28 or informal tribunals. "Foreign law" as defined would not 4 29 include the laws of the Native American tribes of this state as 4 30 that jurisdiction is within this state. 4 31 The bill establishes that it is a violation of the public 4 32 policy of this state if any court, arbitration, tribunal, 4 33 or administrative agency ruling or decision bases a ruling 4 34 or decision in the matter at issue in whole or in part 4 35 on any law, legal code, or system, that would not grant 5 1 the parties affected by the ruling or decision the same 5 2 fundamental liberties, rights, and privileges granted under the 5 3 Constitution of the United States and the Constitution of the 5 4 State of Iowa. The bill specifies such a ruling is void and 5 5 unenforceable. 5 6 Under the bill, a contract or contractual provision, if 5 7 capable of segregation, which provides for the choice of a law, 5 8 legal code, or system, to govern some or all of the disputes 5 9 between the parties arising from a contract mutually agreed 5 10 upon violates the public policy of this state and shall be void 5 11 and unenforceable if the law, legal code, or system chosen 5 12 includes or incorporates any substantive or procedural law, 5 13 as applied to the dispute at issue, that would not grant the 5 14 parties the same fundamental liberties, rights, and privileges 5 15 granted under the Constitution of the United States and the 5 16 Constitution of the State of Iowa. 5 17 A contract or contractual provision under the bill, if 5 18 capable of segregation, which specifies jurisdiction for 5 19 the purpose of granting the courts or arbitration panels in 5 20 personam jurisdiction over the parties to adjudicate any 5 21 disputes between the parties arising from a contract mutually 5 22 agreed upon, shall be void and unenforceable if the law, legal 5 23 code, or system chosen includes or incorporates any substantive 5 24 or procedural law, as applied to the dispute at issue, that 5 25 would not grant the parties the same fundamental liberties, 5 26 rights, and privileges granted under the Constitution of the 5 27 United States and the Constitution of the State of Iowa. 5 28 If a person of this state, subject to personal jurisdiction 5 29 in this state, seeks to maintain litigation, arbitration, 5 30 agency, or similarly binding proceedings in this state and if 5 31 the courts of this state find that granting a claim of forum 5 32 non conveniens or a related claim violates the constitutional 5 33 rights of the nonclaimant in the foreign forum with respect 5 34 to the matter in dispute, the bill requires that the claim be 5 35 denied. 6 1 The bill does not apply to a corporation, partnership, 6 2 limited liability corporation, business association, or other 6 3 legal entity that contracts to subject itself to foreign law in 6 4 a jurisdiction other that this state or the United States. The 6 5 bill also does not apply to many activities involving a church 6 6 or religious organization. 6 7 Additionally, the provisions of the bill shall not be 6 8 interpreted by any court to conflict with any federal treaty or 6 9 other international agreement to which the United States is a 6 10 party to the extent that such treaty or international agreement 6 11 preempts or is superior to state law on the matter at issue. 6 12 The bill takes effect upon enactment. LSB 1702YH (3) 86 jm/rj
