1.1 	A bill for an act
1.2 	relating to economic development; providing for state
1.3 	involvement in trade policies.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. LEGISLATIVE FINDINGS.
 1.6 	The legislature finds that:
1.7 	(1) states have traditionally enjoyed a large degree of
1.8 	autonomy to set their own procurement policies under the United
1.9 	States system of federalism;
1.10 	(2) recent international trade agreements threaten to erode
1.11 	this traditional state autonomy by requiring state governments
1.12 	to accord foreign suppliers of goods and services treatment no
1.13 	less favorable than that afforded to in-state suppliers.  In
1.14 	addition, the agreements stipulate that state contract
1.15 	specifications must not burden trade any more than necessary and
1.16 	limit supplier qualifications to those that are essential to the
1.17 	performance of the contract;
1.18 	(3) the governor, not the state legislature, chose to bind
1.19 	this state to the terms of various international trade
1.20 	agreements upon the request of the United States Trade
1.21 	Representative;
1.22 	(4) state legislators have an important role to play in
1.23 	preserving state authority over procurement policy.  These
1.24 	critical decisions should be made only with the involvement of
2.1 	the state legislature, and only after the public has been
2.2 	adequately informed and has openly debated the issues involved;
2.3 	and 
2.4 	(5) it is critical for citizens, state agencies, the state
2.5 	legislature, and other elected officials in the state to have
2.6 	access to information about how trade impacts state legislative
2.7 	authority, the state's economy, and existing state laws in order
2.8 	to participate in an informed debate about international trade
2.9 	issues.

2.10 	Sec. 2. ROLE OF STATE LEGISLATURE IN TRADE POLICY.
 2.11 	(a) It shall be the policy of the state that approval for
2.12 	the state to be bound by any trade agreement requires the
2.13 	consent of the state legislature.
2.14 	(b) Two state legislative points of contact must be
2.15 	appointed at the beginning of each legislative session:  one by
2.16 	the majority and minority leaders in the senate and one by the
2.17 	majority and minority leaders of the house of representatives.
2.18 	The legislature declares that the purposes of the state
2.19 	legislative points of contact are to:
2.20 	(1) serve as the state's official liaisons with the federal
2.21 	government and as the legislature's liaisons with the governor
2.22 	on trade-related matters;
2.23 	(2) serve as the designated recipients of federal requests
2.24 	for consent to consultation regarding investment, procurement,
2.25 	services, or other provisions of international trade agreements,
2.26 	which impinge on state law or regulatory authority reserved to
2.27 	the states;
2.28 	(3) transmit information regarding federal requests for
2.29 	consent to the Office of the Governor, the attorney general, all
2.30 	appropriate legislative committees, and the Office of Trade
2.31 	Enforcement;
2.32 	(4) issue a formal request to the Office of Trade
2.33 	Enforcement and other appropriate state agencies to provide
2.34 	analysis of all proposed trade agreements' impact on state
2.35 	legislative authority and the economy of the state;
2.36 	(5) inform all members of the legislature on a regular
3.1 	basis about ongoing trade negotiations and dispute settlement
3.2 	proceedings with implications for the state more generally;
3.3 	(6) communicate the interests and concerns of the
3.4 	legislature to the United States Trade Representative regarding
3.5 	ongoing and proposed trade negotiations; and 
3.6 	(7) notify the United States Trade Representative of the
3.7 	outcome of any legislative action.
3.8 	(c) The following actions are required before the state
3.9 	shall consent to the terms of a trade agreement:
3.10 	(1) when a request has been received, the governor,
3.11 	majority or minority leader, or ranking member of the
3.12 	appropriate committee of jurisdiction may submit to the
3.13 	legislature, on a day on which both houses are in session, a
3.14 	copy of the final legal text of the agreement, together with:
3.15 	(i) a report by the Office of Trade Enforcement, which
3.16 	shall include an analysis of how the agreement of the state to
3.17 	the specific provisions of the agreement will change or affect
3.18 	existing state law;
3.19 	(ii) a statement of any administrative action proposed to
3.20 	implement these trade agreement provisions in the state; and 
3.21 	(iii) a draft of legislation authorizing the state to sign
3.22 	on to the specific listed provisions of the agreement in
3.23 	question;
3.24 	(2) a public hearing, with adequate public notice, shall
3.25 	occur before the legislature votes on the bill; and 
3.26 	(3) the bill authorizing the state to sign on to specific
3.27 	listed provisions of an agreement is enacted into law.
3.28 	(d) It is the sense of this legislature that Congress
3.29 	should pass legislation instructing the United States Trade
3.30 	Representative to fully and formally consult individual state
3.31 	legislatures regarding procurement, services, investment, or any
3.32 	other trade agreement rules that impact state laws or authority
3.33 	before negotiations begin and as they develop, and to seek
3.34 	consent from state legislatures in addition to governors prior
3.35 	to binding states to conform their laws to the terms of
3.36 	international commercial agreements.  Such legislation is
4.1 	necessary to ensure the prior informed consent of the state with
4.2 	regard to future international trade and investment agreements.
4.3 	(e) The state attorney general shall notify the United
4.4 	States Trade Representative of the policies set forth in
4.5 	paragraph (d) in writing no later than 30 days after its
4.6 	effective date, and shall provide copies of such notice to the
4.7 	president of the senate, speaker of the house of
4.8 	representatives, the governor, and the state's congressional
4.9 	delegation.

4.10 	Sec. 3. OFFICE OF TRADE ENFORCEMENT AND CITIZENS'
4.11 	COMMISSION ON GLOBALIZATION.
 4.12 	(a) The state shall establish an Office of Trade
4.13 	Enforcement and a Citizens' Commission on Globalization.
4.14 	(b) The Office of Trade Enforcement is directed to:
4.15 	(1) monitor trade negotiations and disputes impacting the
4.16 	state economy;
4.17 	(2) analyze pending trade agreements the state is
4.18 	considering signing and provide the analysis to the governor,
4.19 	the legislature, the citizens' commission, and the public;
4.20 	(3) provide technical assistance to workers and firms
4.21 	impacted by unfair trade practices;
4.22 	(4) provide a trade impact report to the governor, the
4.23 	legislature, the citizens' commission, and the public annually;
4.24 	and 
4.25 	(5) provide additional research and analysis as requested
4.26 	by the governor, the legislature, and the citizens' commission.
4.27 	(c) Each annual trade impact report required under
4.28 	paragraph (b), clause (4), shall include:
4.29 	(1) an audit of the amount of public contract work being
4.30 	performed overseas;
4.31 	(2) an audit of government goods being procured from
4.32 	overseas;
4.33 	(3) a study of trade's impacts on state and local
4.34 	employment levels, tax revenues, and retraining and adjustment
4.35 	costs;
4.36 	(4) an analysis of the constraints trade rules place on
5.1 	state regulatory authority, including, but not limited to, the
5.2 	state's ability to preserve the environment, protect public
5.3 	health and safety, and provide high-quality public services; and 
5.4 	(5) findings and recommendations of specific actions the
5.5 	state should take in response to the impacts of trade on the
5.6 	state identified in clauses (1) to (4).  These actions may
5.7 	include, but shall not be limited to:
5.8 	(i) revocation of the state's consent to be bound by the
5.9 	procurement rules of international trade agreements;
5.10 	(ii) prohibition of offshore performance of state contract
5.11 	work and preferences for domestic content in state purchasing;
5.12 	(iii) state support for cases brought under federal trade
5.13 	laws by residents of the state;
5.14 	(iv) state advocacy for reform of trade agreements and
5.15 	trade laws at the federal level; and 
5.16 	(v) implementation of a high-road growth strategy
5.17 	formulated with business, labor, and community participation.
5.18 	The strategy may include, but not be limited to:
5.19 	(A) more effective early warning and layoff aversion
5.20 	measures;
5.21 	(B) increased assistance and adjustment programs for
5.22 	displaced workers and trade-impacted communities;
5.23 	(C) stronger standards and accountability for recipients of
5.24 	state subsidies and incentives;
5.25 	(D) investments in workforce training and development;
5.26 	(E) investments in technology and infrastructure; and 
5.27 	(F) increased access to capital for local producers.
5.28 	(d) Within 30 days of receipt of the annual trade impact
5.29 	report:
5.30 	(1) the governor shall review the report and issue a public
5.31 	statement explaining which of the report's recommendations for
5.32 	specific action under paragraph (c), clause (5), the governor
5.33 	must act upon in the next 30 days, whether through executive
5.34 	action or proposed legislation; and 
5.35 	(2) the legislature shall review the report, hold public
5.36 	hearings on the report's recommendations for specific action
6.1 	under paragraph (c), clause (5), and introduce legislation to
6.2 	enact those recommendations accepted by the legislature.
6.3 	(e) A Citizens' Commission on Globalization shall be
6.4 	appointed by the governor:
6.5 	(1) the following stakeholders shall be equally represented
6.6 	on the commission:
6.7 	(i) employers;
6.8 	(ii) labor organizations;
6.9 	(iii) community organizations; and 
6.10 	(iv) government; and 
6.11 	(2) the commission shall:
6.12 	(i) assess the legal and economic impacts of trade
6.13 	agreements;
6.14 	(ii) provide input on the annual trade impact report;
6.15 	(iii) hold public hearings on the impacts of trade on the
6.16 	state and communities, as well as the annual trade impact report
6.17 	impacts of trade on the state; and 
6.18 	(iv) make policy recommendations to the governor, state
6.19 	legislature, state congressional delegation, and United States
6.20 	trade negotiators.