Relating to the application of foreign laws and constitutional rights and including effective date provisions

The bill further specifies that it is the public policy of this state to fully recognize the right to contract freely under the laws of this state, and also to recognize that this right may be reasonably and rationally circumscribed pursuant to the state’s interest to protect and promote rights and privileges granted under the Constitution of the United States and the Constitution of the State of Iowa. As used in the bill, “foreign law” means any law, legal code, or system of a jurisdiction outside of any state or territory of the United States, including but not limited to international organizations and tribunals, and applied by that jurisdiction’s courts, administrative bodies, or other formal or informal tribunals. “Foreign law” as defined would not include the laws of the Native American tribes of this state as that jurisdiction is within this state. The bill establishes that it is a violation of the public policy of this state if any court, arbitration, tribunal, or administrative agency ruling or decision bases a ruling or decision in the matter at issue in whole or in part on any law, legal code, or system, that would not grant the parties affected by the ruling or decision the same fundamental liberties, rights, and privileges granted under the Constitution of the United States and the Constitution of the State of Iowa. The bill specifies such a ruling is void and unenforceable. Under the bill, a contract or contractual provision, if capable of segregation, which provides for the choice of a law, legal code, or system, to govern some or all of the disputes between the parties arising from a contract mutually agreed upon violates the public policy of this state and shall be void and unenforceable if the law, legal code, or system chosen includes or incorporates any substantive or procedural law, as applied to the dispute at issue, that would not grant the parties the same fundamental liberties, rights, and privileges granted under the Constitution of the United States and the Constitution of the State of Iowa. A contract or contractual provision under the bill, if capable of segregation, which specifies jurisdiction for the purpose of granting the courts or arbitration panels in personam jurisdiction over the parties to adjudicate any disputes between the parties arising from a contract mutually agreed upon, shall be void and unenforceable if the law, legal code, or system chosen includes or incorporates any substantive or procedural law, as applied to the dispute at issue, that would not grant the parties the same fundamental liberties, rights, and privileges granted under the Constitution of the United States and the Constitution of the State of Iowa. If a person of this state, subject to personal jurisdiction in this state, seeks to maintain litigation, arbitration, agency, or similarly binding proceedings in this state and if the courts of this state find that granting a claim of forum non conveniens or a related claim violates the constitutional rights of the nonclaimant in the foreign forum with respect to the matter in dispute, the bill requires that the claim be denied. The bill does not apply to a corporation, partnership, limited liability corporation, business association, or other legal entity that contracts to subject itself to foreign law in a jurisdiction other that this state or the United States. The bill also does not apply to many activities involving a church or religious organization. Additionally, the provisions of the bill shall not be interpreted by any court to conflict with any federal treaty or other international agreement to which the United States is a party to the extent that such treaty or international agreement preempts or is superior to state law on the matter at issue. The bill takes effect upon enactment.