March 15, 2007, Introduced by Senators BASHAM, PAPPAGEORGE, CLARK-COLEMAN, GLEASON, ANDERSON, HUNTER, PRUSI, BRATER and SCOTT and referred to the Committee on Government Operations and Reform.
A bill to define the role of this state in the approval of
certain trade agreements; to create certain state agencies; and to
provide for the powers and duties of certain state officers and
agencies in relation to trade agreements and related issues.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "jobs,
trade, and democracy act".
Sec. 2. The legislature finds all of the following:
(a) States have traditionally enjoyed a large degree of
autonomy to set their own procurement policies under our system of
federalism.
(b) 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.
(c) 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.
(d) 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
legislatures, and only after the public has been adequately
informed and has openly debated the issues involved.
(e) It is critical for citizens, state agencies, the state
legislature, and other elected officials in this 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.
(f) The current encroachment on state regulatory authority by
international commercial and trade agreements has been exacerbated
because United States trade policy is being formulated and
implemented under "fast track" trade authority procedures. The
current grant of fast track is scheduled to sunset in July 2007.
(g) Fast track, first established in 1974 by President Richard
Nixon, is outdated and inappropriate, given the diverse range of
nontrade issues now impacted by trade agreements. These agreements
broadly affect federal and state regulatory authority over nontrade
areas, such as public health and procurement policies. Fast track
should be replaced with a more democratic model for negotiating and
implementing trade agreements so that elected legislators and
ordinary citizens can have a meaningful voice in determining the
content of trade policies.
Sec. 3. (1) It is the policy of this state that approval for
the state to be bound by any trade agreement requires the consent
of the legislature.
(2) Two state legislative points of contact shall be appointed
at the beginning of each legislative session. One shall be
appointed by the majority and minority leaders in the senate, and 1
by the speaker of the house of representatives and the minority
leader in the house of representatives. The legislature declares
that the purposes of the single points of contact are as follows:
(a) To serve as this state's official liaisons with the
federal government and as the legislature's liaisons with the
governor on trade-related matters.
(b) To serve as the designated recipients of federal requests
for consent or consultation regarding investment, procurement,
services, or other provisions of international trade agreements
which impinge on state law or regulatory authority reserved to this
state.
(c) To transmit information regarding federal consultation
with states to the office of the governor, the attorney general,
all appropriate legislative committees, and the office of trade
enforcement.
(d) To 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.
(e) To 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.
(f) To communicate the interests and concerns of the
legislature to the United States trade representative regarding
ongoing and proposed trade negotiations.
(g) To notify the United States trade representative of the
outcome of any legislative action.
(3) The following actions are required before this state
consents to the terms of a trade agreement:
(a) In a timely fashion, concurrent with trade negotiations,
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 the senate and house of
representatives are in session, a copy of the final legal text of
the agreement, together with all of the following:
(i) A report by the office of trade enforcement, which shall
include an analysis of how the agreement of this state to the
specific provisions of the agreement will change or affect existing
state law.
(ii) A statement of any administrative action proposed to
implement these trade agreement provisions in this state.
(iii) A draft of legislation authorizing this state to sign on
to the specific listed provisions of the agreement in question.
(b) A public hearing, with adequate public notice, shall occur
before the legislature votes on the bill.
(c) The enactment into law of a bill authorizing this state to
sign on to specific listed provisions of an agreement.
(4) It is the sense of this legislature that the congress of
the United States 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. That legislation is
necessary to ensure the prior informed consent of this state with
regard to future international trade and investment agreements.
(5) The attorney general shall notify the United States trade
representative of the policies set forth in subsection (4) in
writing no later than 90 days after the legislation is enacted into
law and shall provide copies of that notice to the president of the
senate, the speaker of the house of representatives, the governor,
and this state's congressional delegation.
Sec. 4. (1) An office of trade enforcement and a citizens'
commission on globalization are created. The office of trade
enforcement shall do all of the following:
(a) Monitor trade negotiations and disputes impacting the
state economy.
(b) Analyze pending trade agreements the state is considering
signing and provide the analysis to the governor, the legislature,
the citizens' commission, and the public.
(c) Provide technical assistance to workers and firms impacted
by unfair trade practices.
(d) Provide a trade impact report to the governor, the
legislature, the citizens' commission, and the public no later than
180 days after the effective date of this act and annually
thereafter.
(e) Provide additional research and analysis as requested by
the governor, the legislature, and the citizens' commission on
globalization.
(2) Each annual trade impact report required under subsection
(1)(d) shall include all of the following:
(a) An audit of the amount of public contract work being
performed overseas.
(b) An audit of government goods being procured from overseas.
(c) A study of trade's impacts on state and local employment
levels, tax revenues, and retraining and adjustment costs.
(d) 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 workers' rights, and provide high-quality public
services.
(e) Findings and recommendations of specific actions the state
should take in response to the impacts of trade on the state
identified above. Those actions may include, but shall not be
limited to, any or all of the following:
(i) Revocation of the state's consent to be bound by the
procurement rules of international trade agreements.
(ii) Prohibition of offshore performance of state contract work
and preferences for domestic content in state purchasing.
(iii) State support for cases brought under federal trade laws
by residents of the state.
(iv) State advocacy for reform of trade agreements and trade
laws at the federal level.
(v) Implementation of a high-road growth strategy formulated
with business, labor, and community participation. That strategy
may include, but not be limited to, any or all of the following:
(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.
(F) Increased access to capital for local producers.
(3) Within 30 days of receipt of the annual trade impact
report, both of the following shall occur:
(a) The governor shall review the report and issue a public
statement explaining which of the report's recommendations for
specific action under subsection (2)(e) the governor will act upon
in the next 30 days, whether through executive order or by
proposing legislation.
(b) The legislature shall review the report, hold public
hearings on the report's recommendations for specific action under
subsection (2)(e), and introduce legislation to enact those
recommendations accepted by the legislature.
(4) A citizens' commission on globalization shall be appointed
by the governor. The following stakeholders shall be equally
represented on the commission: employers, labor organizations,
community organizations, and government. The commission shall do
all of the following:
(a) Assess the legal and economic impacts of trade agreements.
(b) Provide input on the annual trade impact report.
(c) Hold public hearings on the impacts of trade on the state
and communities, as well as on the annual trade impact report.
(d) Make policy recommendations to the governor, the
legislature, the state congressional delegation, and United States
trade negotiators.