HF 882

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2013 02:18pm

A bill for an act
relating to economic development; providing for state involvement in trade
policies; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin LEGISLATIVE FINDINGS.
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new text begin The legislature finds that:
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new text begin (1) states have traditionally enjoyed a large degree of autonomy to set their own
procurement policies under the United States system of federalism;
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new text begin (2) recent international trade agreements threaten to erode this traditional state
autonomy by requiring state governments to accord foreign suppliers of goods and
services treatment no less favorable than that afforded to in-state suppliers. In addition,
the agreements stipulate that state contract specifications must not burden trade any
more than necessary and limit supplier qualifications to those that are essential to the
performance of the contract;
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new text begin (3) state legislators have an important role to play in preserving state authority over
procurement policy. These critical decisions should be made only with the involvement
of the state legislature, and only after the public has been adequately informed and has
openly debated the issues involved; and
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new text begin (4) it is critical for citizens, state agencies, the state legislature, and other elected
officials in the state to have access to information about how trade impacts state legislative
authority, the state's economy, and existing state laws in order to participate in an informed
debate about international trade issues.
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Sec. 2. new text begin ROLE OF STATE LEGISLATURE IN TRADE POLICY.
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new text begin (a) It shall be the policy of the state that approval for the state to be bound by any
trade agreement requires the consent of the state legislature.
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new text begin (b) Four state legislative contacts must be informed by the governor when any trade
agreement arrives in the governor's office. The four contacts are the majority and minority
leader of the state senate or their designated legislators and the speaker and minority
leader in the state house of representatives or their designated legislators. The legislature
declares that the purposes of the state contacts are to:
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new text begin (1) serve as the state's official legislative liaisons with the governor and the state
legislature on trade-related matters;
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new text begin (2) serve as the legislature's designated recipients from the governor of federal
requests for consent to consultation regarding investment, procurement, services, or other
provisions of international trade agreements which impinge on state law or regulatory
authority reserved to the states;
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new text begin (3) transmit information regarding federal requests from the governor to all
appropriate legislative committees;
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new text begin (4) issue a formal request to the Department of Administration and all appropriate
state agencies to provide analysis of the impact of all proposed trade agreements on state
legislative authority and the economy of the state;
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new text begin (5) inform all members of the legislature on a regular basis about ongoing trade
negotiations and dispute settlement proceedings with implications for the state more
generally;
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new text begin (6) communicate the concerns of the legislature to the governor and United States
trade representative regarding ongoing and proposed trade negotiations; and
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new text begin (7) notify the governor and the United States trade representative of the outcome
of any legislative action.
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new text begin (c) The following actions are required before the state shall consent to the terms of
a trade agreement:
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new text begin (1) when a federal trade request has been received, the governor must submit the
request to the legislative contacts on a day both houses are in session. The request must
contain a copy of the final legal text of the agreement together with:
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new text begin (i) a report by the Department of Administration in consultation with, at a minimum,
the following agencies: Department of Employment and Economic Development,
Department of Labor and Industry, Department of Agriculture, Department of Natural
Resources, and the Minnesota Pollution Control Agency. The report shall include an
analysis of how the agreement of the state to the specific provisions of the agreement
will change or affect existing state law;
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new text begin (ii) a statement of any administrative action proposed to implement these trade
agreement provisions in the state; and
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new text begin (iii) a draft of legislation authorizing the state to sign on to the specific listed
provisions of the agreement in question;
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new text begin (2) at least one public hearing, with adequate public notice, shall occur before the
legislature votes on the bill; and
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new text begin (3) the bill authorizing the state to sign on to specific listed provisions of an
agreement is enacted into law.
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new text begin (d) It is the sense of this legislature that Congress should pass legislation instructing
the United States trade representative to fully and formally consult individual state
legislatures regarding procurement, services, investment, or any other trade agreement
rules that impact state laws or authority before negotiations begin and as they develop,
and to seek consent from state legislatures in addition to governors prior to binding
states to conform their laws to the terms of international commercial agreements. Such
legislation is necessary to ensure the prior informed consent of the state with regard to
future international trade and investment agreements.
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new text begin (e) The state attorney general shall notify the United States trade representative of
the policies in paragraph (d) in writing no later than 30 days after its effective date, and
shall provide copies of the notice to the president of the senate, speaker of the house of
representatives, the governor, and the state's congressional delegation.
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Sec. 3. new text begin REPORT TO LEGISLATURE REQUIRED.
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new text begin (a) The Department of Administration must file with the governor, the speaker of
the house, and the majority leader of the senate an annual report, in addition to specific
reports required in section 2, paragraph (c), clause (1), item (i), analyzing the following
impacts of trade policy on the state:
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new text begin (1) an audit of the amount of public contract work being performed overseas;
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new text begin (2) an audit of government goods being procured from overseas;
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new text begin (3) a study of the trade's impacts on state and local employment levels, tax revenues,
and retraining and adjustment costs;
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new text begin (4) an analysis of the constraints trade rules place on state regulatory authority,
including, but not limited to, the state's ability to preserve the environment, protect public
health and safety, and provide high-quality public services; and
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new text begin (5) findings and recommendations of specific actions the state should take in
response to the impacts of trade on the state identified in clauses (1) to (4). These actions
may include, but shall not be limited to:
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new text begin (i) revocation of the state's consent to be bound by the procurement rules of
international trade agreements;
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new text begin (ii) prohibition of offshore performance of state contract work and preferences
for domestic content in state purchasing;
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new text begin (iii) state support for cases brought under federal trade laws by residents of the state;
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new text begin (iv) state advocacy for reform of trade agreements and trade laws at the federal
level; and
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new text begin (v) implementation of a growth strategy formulated with business, labor, and
community participation. The strategy may include, but not be limited to:
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new text begin (A) more effective early warning and layoff aversion measures;
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new text begin (B) increased assistance and adjustment programs for displaced workers and
trade-impacted communities;
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new text begin (C) stronger standards and accountability for recipients of state subsidies and
incentives;
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new text begin (D) investments in workforce training and development;
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new text begin (E) investments in technology and infrastructure; and
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new text begin (F) increased access to capital for local producers.
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new text begin (b) Within 30 days of receipt of the annual trade impact report:
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new text begin (1) the governor shall review the report and issue a public statement explaining
which of the report's recommendations for specific action under paragraph (a), clause (5),
the governor must act upon in the next 30 days, whether through executive action or
proposed legislation; and
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new text begin (2) the legislature shall review the report, hold public hearings on the report's
recommendations for specific action under paragraph (a), clause (5), and introduce
legislation to enact those recommendations accepted by the legislature.
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