Bill Text: IA HF223 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the application of foreign laws and constitutional rights and including effective date provisions.
Spectrum: Partisan Bill (Republican 12-0)
Status: (Introduced - Dead) 2017-04-04 - Rereferred to Judiciary. H.J. 869. [HF223 Detail]
Download: Iowa-2017-HF223-Introduced.html
House File 223 - Introduced HOUSE FILE BY WATTS, SHEETS, GASSMAN, SALMON, FISHER, HOLT, HEARTSILL, WHEELER, SIECK, McKEAN, HOLZ, and WORTHAN A BILL FOR 1 An Act relating to the application of foreign laws and 2 constitutional rights and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1041YH (6) 87 jm/rj PAG LIN 1 1 Section 1. NEW SECTION. 537A.20 Public policy of this 1 2 state. 1 3 1. It shall be the public policy of this state to protect 1 4 its citizens from the application of foreign laws when the 1 5 application of foreign law will result in the violation of 1 6 a right guaranteed by the Constitution of the United States 1 7 or the Constitution of the State of Iowa, including but 1 8 not limited to due process; freedom of religion, speech, or 1 9 press; and any right of privacy or marriage embodied in the 1 10 Constitution of the State of Iowa. 1 11 2. It shall be the public policy of this state to fully 1 12 recognize the right to contract freely under the laws of this 1 13 state, and also to recognize that this right may be reasonably 1 14 and rationally circumscribed pursuant to the state's interest 1 15 to protect and promote rights and privileges granted under 1 16 the Constitution of the United States and the Constitution of 1 17 the State of Iowa, including but not limited to due process; 1 18 freedom of religion, speech, or press; and any right of privacy 1 19 or marriage embodied in the Constitution of the State of Iowa. 1 20 Sec. 2. NEW SECTION. 537A.21 Definition. 1 21 As used in this subchapter, "foreign law" means any law, 1 22 legal code, or system of a jurisdiction outside of any state or 1 23 territory of the United States, including but not limited to 1 24 international organizations and tribunals, and applied by that 1 25 jurisdiction's courts, administrative bodies, or other formal 1 26 or informal tribunals. 1 27 Sec. 3. NEW SECTION. 537A.22 Use of foreign laws ==== 1 28 enforceability. 1 29 Any court, arbitration, tribunal, or administrative agency 1 30 ruling or decision violates the public policy of this state 1 31 and shall be void and unenforceable if the court, arbitration, 1 32 tribunal, or administrative agency bases its ruling or decision 1 33 in the matter at issue in whole or in part on any law, legal 1 34 code, or system, that would not grant the parties affected by 1 35 the ruling or decision the same fundamental liberties, rights, 2 1 and privileges granted under the Constitution of the United 2 2 States and the Constitution of the State of Iowa, including 2 3 but not limited to due process; freedom of religion, speech, 2 4 or press; and any right of privacy or marriage embodied in the 2 5 Constitution of the State of Iowa. 2 6 Sec. 4. NEW SECTION. 537A.23 Choice of law. 2 7 A contract or contractual provision, if capable of 2 8 segregation, which provides for the choice of a law, legal 2 9 code, or system, to govern some or all of the disputes 2 10 between the parties adjudicated by a court of law or by an 2 11 arbitration panel arising from the contract mutually agreed 2 12 upon violates the public policy of this state and shall be void 2 13 and unenforceable if the law, legal code, or system chosen 2 14 includes or incorporates any substantive or procedural law, 2 15 as applied to the dispute at issue, that would not grant the 2 16 parties the same fundamental liberties, rights, and privileges 2 17 granted under the Constitution of the United States and the 2 18 Constitution of the State of Iowa, including but not limited 2 19 to due process; freedom of religion, speech, or press; and any 2 20 right of privacy or marriage embodied in the Constitution of 2 21 the State of Iowa. 2 22 Sec. 5. NEW SECTION. 537A.24 Jurisdiction. 2 23 A contract or contractual provision, if capable of 2 24 segregation, which provides for jurisdiction for the purpose 2 25 of granting the courts or arbitration panels in personam 2 26 jurisdiction over the parties to adjudicate any disputes 2 27 between the parties arising from the contract mutually agreed 2 28 upon violates the public policy of this state and shall be void 2 29 and unenforceable if the law, legal code, or system chosen 2 30 includes or incorporates any substantive or procedural law, 2 31 as applied to the dispute at issue, that would not grant the 2 32 parties the same fundamental liberties, rights, and privileges 2 33 granted under the Constitution of the United States and the 2 34 Constitution of the State of Iowa, including but not limited 2 35 to due process; freedom of religion, speech, or press; and any 3 1 right of privacy or marriage embodied in the Constitution of 3 2 the State of Iowa. 3 3 Sec. 6. NEW SECTION. 537A.25 Forum non conveniens. 3 4 If a person of this state, subject to personal jurisdiction 3 5 in this state, seeks to maintain litigation, arbitration, 3 6 agency, or similarly binding proceedings in this state and if 3 7 the courts of this state find that granting a claim of forum 3 8 non conveniens or a related claim violates or would likely 3 9 violate the constitutional rights of the nonclaimant in the 3 10 foreign forum with respect to the matter in dispute, the claim 3 11 shall be denied. 3 12 Sec. 7. NEW SECTION. 537A.26 Applicability. 3 13 1. Without prejudice to any legal right, this subchapter 3 14 shall not apply to a corporation, partnership, limited 3 15 liability corporation, business association, or other legal 3 16 entity that contracts to subject itself to foreign law in a 3 17 jurisdiction other than this state or the United States. 3 18 2. This subchapter shall not apply to a church or to a 3 19 religious corporation, association, or society, with respect 3 20 to individuals of a particular religion regarding matters 3 21 that are purely ecclesiastical, including but not limited to 3 22 calling a pastor, excluding members from a church, electing 3 23 church officers, matters concerning church bylaws, constitution 3 24 and doctrinal regulations, and the conduct of other routine 3 25 church business where the jurisdiction of the church would be 3 26 final, and the jurisdiction of the courts of this state would 3 27 be contrary to the First Amendment to the Constitution of the 3 28 United States and to Article I of the Constitution of the State 3 29 of Iowa. This exemption in no way grants permission for any 3 30 otherwise unlawful act under the guise of the protection of the 3 31 First Amendment to the Constitution of the United States. 3 32 Sec. 8. NEW SECTION. 537A.27 Conflict. 3 33 This subchapter shall not be interpreted by any court 3 34 to conflict with any federal treaty or other international 3 35 agreement to which the United States is a party to the extent 4 1 that such treaty or international agreement preempts or is 4 2 superior to state law on the matter at issue. 4 3 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 4 4 immediate importance, takes effect upon enactment. 4 5 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall 4 6 organize the provisions of this Act as a new subchapter in 4 7 chapter 537A. 4 8 EXPLANATION 4 9 The inclusion of this explanation does not constitute agreement with 4 10 the explanation's substance by the members of the general assembly. 4 11 This bill relates to the application of foreign laws. 4 12 The bill specifies that it shall be the public policy of 4 13 this state to protect its citizens from the application of 4 14 foreign laws when the application of foreign law will result 4 15 in the violation of a right guaranteed by the Constitution of 4 16 the United States or the Constitution of the State of Iowa, 4 17 including but not limited to due process; freedom of religion, 4 18 speech, or press; and any right of privacy or marriage embodied 4 19 in the Constitution of the State of Iowa. 4 20 The bill further specifies that it is the public policy of 4 21 this state to fully recognize the right to contract freely 4 22 under the laws of this state, and also to recognize that this 4 23 right may be reasonably and rationally circumscribed pursuant 4 24 to the state's interest to protect and promote rights and 4 25 privileges granted under the Constitution of the United States 4 26 and the Constitution of the State of Iowa. 4 27 As used in the bill, "foreign law" means any law, legal 4 28 code, or system of a jurisdiction outside of any state or 4 29 territory of the United States, including but not limited to 4 30 international organizations and tribunals, and applied by that 4 31 jurisdiction's courts, administrative bodies, or other formal 4 32 or informal tribunals. "Foreign law" as defined would not 4 33 include the laws of the Native American tribes of this state as 4 34 that jurisdiction is within this state. 4 35 The bill establishes that it is a violation of the public 5 1 policy of this state if any court, arbitration, tribunal, 5 2 or administrative agency ruling or decision bases a ruling 5 3 or decision in the matter at issue in whole or in part 5 4 on any law, legal code, or system, that would not grant 5 5 the parties affected by the ruling or decision the same 5 6 fundamental liberties, rights, and privileges granted under the 5 7 Constitution of the United States and the Constitution of the 5 8 State of Iowa. The bill specifies such a ruling is void and 5 9 unenforceable. 5 10 Under the bill, a contract or contractual provision, if 5 11 capable of segregation, which provides for the choice of a law, 5 12 legal code, or system, to govern some or all of the disputes 5 13 between the parties arising from a contract mutually agreed 5 14 upon violates the public policy of this state and shall be void 5 15 and unenforceable if the law, legal code, or system chosen 5 16 includes or incorporates any substantive or procedural law, 5 17 as applied to the dispute at issue, that would not grant the 5 18 parties the same fundamental liberties, rights, and privileges 5 19 granted under the Constitution of the United States and the 5 20 Constitution of the State of Iowa. 5 21 A contract or contractual provision under the bill, if 5 22 capable of segregation, which specifies jurisdiction for 5 23 the purpose of granting the courts or arbitration panels in 5 24 personam jurisdiction over the parties to adjudicate any 5 25 disputes between the parties arising from a contract mutually 5 26 agreed upon, shall be void and unenforceable if the law, legal 5 27 code, or system chosen includes or incorporates any substantive 5 28 or procedural law, as applied to the dispute at issue, that 5 29 would not grant the parties the same fundamental liberties, 5 30 rights, and privileges granted under the Constitution of the 5 31 United States and the Constitution of the State of Iowa. 5 32 If a person of this state, subject to personal jurisdiction 5 33 in this state, seeks to maintain litigation, arbitration, 5 34 agency, or similarly binding proceedings in this state and if 5 35 the courts of this state find that granting a claim of forum 6 1 non conveniens or a related claim violates the constitutional 6 2 rights of the nonclaimant in the foreign forum with respect 6 3 to the matter in dispute, the bill requires that the claim be 6 4 denied. 6 5 The bill does not apply to a corporation, partnership, 6 6 limited liability corporation, business association, or other 6 7 legal entity that contracts to subject itself to foreign law in 6 8 a jurisdiction other that this state or the United States. The 6 9 bill also does not apply to many activities involving a church 6 10 or religious organization. 6 11 Additionally, the provisions of the bill shall not be 6 12 interpreted by any court to conflict with any federal treaty or 6 13 other international agreement to which the United States is a 6 14 party to the extent that such treaty or international agreement 6 15 preempts or is superior to state law on the matter at issue. 6 16 The bill takes effect upon enactment. LSB 1041YH (6) 87 jm/rj
