SECOND REGULAR SESSION

HOUSE BILL NO. 1301

93RD GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVES SHOEMYER (Sponsor), GEORGE, DARROUGH, LOWE (44), WAGNER, SALVA, MEADOWS, BOWMAN, BLAND AND ZWEIFEL (Co-sponsors).

Read 1st time January 10, 2006 and copies ordered printed.

STEPHEN S. DAVIS, Chief Clerk

4020L.01I

AN ACT

To amend chapters 21 and 620, RSMo, by adding thereto four new sections relating to trade agreements.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Chapters 21 and 620, RSMo, are amended by adding thereto four new sections, to be known as sections 21.850, 21.852, 620.1600, and 620.1602, to read as follows:

21.850. 1. As used in sections 21.850 to 21.852 the term "office" shall mean the office of trade enforcement created under section 620.1600, RSMo.

2. This state shall not be bound by any trade agreement without the consent of the general assembly.

3. The following actions are required before this state shall consent to the terms of a trade agreement:

(1) When a request has been received, any member of the general assembly may submit to the general assembly, on a day on which both houses are in session, a copy of the final text of the trade agreement, together with:

(a) A report by the office including an analysis of how the agreement of this state to the specific provisions of the trade agreement may change or affect existing state law;

(b) A statement of any administrative action proposed to implement these trade agreement provisions in this state; and

(2) A public hearing, with adequate public notice, shall occur before the general assembly votes on the bill; and

(3) Legislation authorizing this state to agree to specific listed provisions of a trade agreement shall be passed by both houses of the general assembly and signed by the governor.

21.852. 1. Subject to appropriation from the general revenue fund, two individuals shall be appointed, at the beginning of each legislative session, as general assembly points of contact. The general assembly points of contact shall serve as such until the final day of the legislative session. The speaker of the house of representatives shall appoint one general assembly point of contact and the president pro tem of the senate shall appoint the other general assembly point of contact. The general assembly points of contact shall not be compensated for their services, but they shall be reimbursed for actual and necessary expenses incurred in the performance of their duties.

2. The specific duties of the general assembly points of contact shall include, but not be limited to, the following:

(1) Serving as liaisons between the general assembly and the United States Government on trade-related matters and as liaisons between the general assembly and the governor on trade-related matters;

(2) Serving as the designated recipients of federal requests for consent or consultation regarding investment, procurement, services, or other provisions of international trade agreements that impinge on this state's laws, or rules;

(3) Transmitting information regarding federal requests for consent to the governor, the attorney general, the general assembly, and the office;

(4) Issuing a formal request to the office and other appropriate state agencies to provide analysis of all proposed trade agreements' impact on this state's legislative authority and the economy of this state;

(5) Informing all members of the general assembly on a regular basis of ongoing trade negotiations and dispute settlement proceedings including the impact such negotiations and proceedings may have on this state;

(6) Communicating the interests and concerns of the general assembly to the United States Trade Representative regarding ongoing and proposed trade negotiations; and

(7) Notifying the United States Trade Representative of the outcome of any legislative action by the general assembly relating to trade agreements.

620.1600. 1. As used in sections 620.1600 to 620.1602 the following terms shall mean:

(1) "Commission", the citizen's commission on globalization created under section 620.1602;

(2) "Department", department of economic development;

(3) "Office", the office of trade enforcement created under this section.

2. There is hereby established within the department the "Office of Trade Enforcement".

3. Subject to appropriations from the general revenue fund, the specific duties of office shall include, but not be limited to, the following:

(1) Monitoring trade negotiations and disputes impacting this state's economy;

(2) Analyzing pending trade agreements this state is considering agreeing to and providing analysis to the governor, the general assembly, the commission, and the public;

(3) Providing technical assistance to workers and firms impacted by unfair trade practices;

(4) Annually providing a trade impact report to the governor, the general assembly, the commission, and the public;

(5) Providing additional research and analysis as requested by the governor, the general assembly, and the commission.

4. Each annual trade impact report required under subdivision (4) of subsection 3 of this section shall include:

(1) An audit of the amount of public contract work being performed overseas;

(2) An audit of the materials, products, supplies, provisions, and other needed articles used by this state's government that are procured from outside of the United States;

(3) A study of impact of trade upon this state's employment levels, tax revenues, and retraining and adjustment costs;

(4) An analysis of the constraints trade rules place on this state's regulatory authority, including but not limited to this state's ability to preserve enforcement, protect public health and safety, and provide public services; and

(5) Findings and recommendations of specific actions this state should take in response to the impact of trade. Such actions may include, but shall not be limited to, the following:

(a) Revocation of the state's consent to be bound by the procurement rules of international trade agreements;

(b) Prohibition of offshore performance of state contract work and preferences for materials, products, supplies, provisions, and other needed articles produced, manufactured, compounded, made, or grown within the United States in state purchasing;

(d) State advocacy for reform of trade agreements and trade laws at the federal levels; and

(e) Implementation of a growth strategy formulated with business, labor, and community participation. Such a strategy may include, but not be limited to:

a. More effective early warning and layoff aversion measures;

b. Increased assistance and adjustment programs for displaced workers and trade-impacted communities;

c. Stronger standards and accountability for recipients of state subsidies and incentives;

d. Investments in workforce training and development;

e. Investments in technology and infrastructure; and

f. Increased access to capital for local producers.

5. (1) The department shall have the authority to promulgate rules necessary for the administration of this section.

(2) Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.

6. Pursuant to section 23.253, RSMo, of the Missouri Sunset Act:

(1) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and

(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and

(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.

620.1602. 1. There is hereby created the "Citizen's Commission on Globalization".

2. The commission shall consist of twelve members. The governor shall appoint four members to the board, one who shall represent the interest of employers in this state, one who shall represent the interest of labor organizations in this state, one who shall represent the interests of community organizations in this state, and one who shall represent the interest of the government of this state. The speaker of the house of representatives shall appoint four members to the board, one who shall represent the interest of employers in this state, one who shall represent the interest of labor organizations in this state, one who shall represent the interest of community organizations in this state, and one who shall represent the interest of the government of this state. The president pro tem of the senate shall appoint four members to the board, one who shall represent the interest of employers in this state, one who shall represent the interest of labor organizations in this state, one who shall represent the interests of community organizations in this state, and one member who shall represent the interest of the government of this state. Each commission member shall serve for a term of two years.

3. The commission members shall not be compensated for their services, but they shall be reimbursed for actual and necessary expenses incurred in the performance of their duties. The department shall provide staff to the commission and aid it in the performance of its duties.

4. The specific duties of the commission shall include, but not be limited to:

(1) Assessing the legal and economic impacts of trade agreements;

(2) Providing input on the annual trade impact report;

(3) Holding public hearings on the impacts of trade on this state and its communities, as well as the impact the annual trade impact report has had on this state; and

(4) Making policy recommendations to the governor, general assembly, any congressional delegation of this state, and United States trade negotiators.

5. (1) The department shall have the authority to promulgate rules necessary for the administration of this section.

6. Pursuant to section 23.253, RSMo, of the Missouri Sunset Act:

(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and

(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.

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