SF 2174

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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

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) the governor, not the state legislature, chose to bind
this state to the terms of various international trade
agreements upon the request of the United States Trade
Representative;
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new text begin (4) 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 (5) 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) Two state legislative points of contact must be
appointed at the beginning of each legislative session: one by
the majority and minority leaders in the senate and one by the
majority and minority leaders of the house of representatives.
The legislature declares that the purposes of the state
legislative points of contact are to:
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new text begin (1) serve as the state's official liaisons with the federal
government and as the legislature's liaisons with the governor
on trade-related matters;
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new text begin (2) serve as the designated recipients 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 for
consent to the Office of the Governor, the attorney general, all
appropriate legislative committees, and the Office of Trade
Enforcement;
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new text begin (4) issue a formal request to the Office of Trade
Enforcement and other appropriate state agencies to provide
analysis of all proposed trade agreements' impact 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 interests and concerns of the
legislature to the United States Trade Representative regarding
ongoing and proposed trade negotiations; and
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new text begin (7) notify 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 request has been received, the governor,
majority or minority leader, or ranking member of the
appropriate committee of jurisdiction may submit to the
legislature, on a day on which both houses are in session, a
copy of the final legal text of the agreement, together with:
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new text begin (i) a report by the Office of Trade Enforcement, which
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) a 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 set forth in
paragraph (d) in writing no later than 30 days after its
effective date, and shall provide copies of such 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 OFFICE OF TRADE ENFORCEMENT AND CITIZENS'
COMMISSION ON GLOBALIZATION.
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new text begin (a) The state shall establish an Office of Trade
Enforcement and a Citizens' Commission on Globalization.
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new text begin (b) The Office of Trade Enforcement is directed to:
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new text begin (1) monitor trade negotiations and disputes impacting the
state economy;
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new text begin (2) analyze pending trade agreements the state is
considering signing and provide the analysis to the governor,
the legislature, the citizens' commission, and the public;
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new text begin (3) provide technical assistance to workers and firms
impacted by unfair trade practices;
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new text begin (4) provide a trade impact report to the governor, the
legislature, the citizens' commission, and the public annually;
and
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new text begin (5) provide additional research and analysis as requested
by the governor, the legislature, and the citizens' commission.
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new text begin (c) Each annual trade impact report required under
paragraph (b), clause (4), shall include:
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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 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 high-road 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 (d) 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 (c), 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 (c), clause (5), and introduce legislation to
enact those recommendations accepted by the legislature.
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new text begin (e) A Citizens' Commission on Globalization shall be
appointed by the governor:
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new text begin (1) the following stakeholders shall be equally represented
on the commission:
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new text begin (i) employers;
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new text begin (ii) labor organizations;
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new text begin (iii) community organizations; and
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new text begin (iv) government; and
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new text begin (2) the commission shall:
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new text begin (i) assess the legal and economic impacts of trade
agreements;
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new text begin (ii) provide input on the annual trade impact report;
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new text begin (iii) hold public hearings on the impacts of trade on the
state and communities, as well as the annual trade impact report
impacts of trade on the state; and
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new text begin (iv) make policy recommendations to the governor, state
legislature, state congressional delegation, and United States
trade negotiators.
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