S T A T E O F N E W Y O R K
________________________________________________________________________
4152
2009-2010 Regular Sessions
I N A S S E M B L Y
January 30, 2009
___________
Introduced by M. of A. BRODSKY, SCHROEDER -- read once and referred to
the Committee on Economic Development, Job Creation, Commerce and
Industry
AN ACT establishing the jobs, trade, and democracy act and creating the
citizens' commission on globalization
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "jobs,
trade, and democracy act".
S 2. Legislative findings. The legislature hereby finds and declares
that New York has traditionally enjoyed a large degree of autonomy to
set its own procurement policies under the U.S. system of federalism.
However, recent international trade agreements threaten to erode New
York's traditional state autonomy by requiring state governments to
accord foreign suppliers of goods and services treatment no less favora-
ble than that afforded to in-state suppliers. In addition, the agree-
ments 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.
The governor - not the state legislature - chose to bind New York to
the terms of various international trade agreements upon the request of
the United States Trade Representative (USTR). The New York state legis-
lature has 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.
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 New York's legislative authority, New York's
economy, and existing state laws in order to participate in an informed
debate about international trade issues.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07328-01-9
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S 3. Role of the state legislature in trade policy. 1. It shall be the
policy of the state of New York that approval for the state to be bound
by any trade agreement requires the consent of the senate and assembly
through their traditional legislative powers.
2. Two state legislative points of contact (SLPCs) will be appointed
at the beginning of each legislative session; one by the temporary pres-
ident of the senate, and one by the speaker of the assembly. The
purposes of the SLPCs are to:
a. Serve as New York's official liaisons with the federal government
and as the legislature's liaisons with the governor on trade-related
matters;
b. 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 the states;
c. Transmit information regarding federal requests for consent to the
office of the governor, the attorney general, all appropriate legisla-
tive committees, and the office of trade enforcement;
d. 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. 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. Communicate the interests and concerns of the legislature to the
United States Trade Representative (USTR) regarding ongoing and proposed
trade negotiations; and
g. Notify the USTR of the outcome of any legislative action.
3. The following actions are required before the state of New York
shall consent to the terms of a trade agreement:
a. When a request has been received, the governor, the temporary pres-
ident of the senate, or speaker of the assembly may submit to the legis-
lature, on a day on which both houses are in session, a copy of the
final legal text of the agreement, together with:
(i) A report by the office of trade enforcement which shall include an
analysis of how the agreement of the state of New York 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 the state of New York; and
(iii) A draft of legislation authorizing the 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; and
c. The bill authorizing the state of New York to sign on to specific
listed provisions of an agreement is enacted into law.
4. It is the sense of this legislature that the Congress of the United
States should pass legislation instructing the USTR to fully and formal-
ly 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 interna-
tional commercial agreements. Such legislation is necessary to ensure
the prior informed consent of the state of New York with regard to
future international trade and investment agreements.
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5. The state attorney general shall notify the USTR of the policies
set forth in subdivision four of this section in writing no later than
one year after the effective date of this act, and shall provide copies
of such notice to the president of the senate, speaker of the house of
representatives, the governor, and the state of New York's congressional
delegation.
S 4. Office of trade enforcement and citizen's commissioner on global-
ization. 1. The state shall establish an office of trade enforcement and
a citizen's commission on globalization.
2. The office of trade enforcement is directed to:
a. Monitor trade negotiations and disputes impacting the state's econ-
omy.
b. Analyze pending trade agreements the state is considering signing
and provide the analysis to the governor, the legislature, the citizen's
commission on globalization 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
citizen's commission on globalization and the public no later than
February first after the effective date of this act and annually there-
after.
e. Provide additional research and analysis as requested by the gover-
nor, the assembly, senate and the citizen's commission on globalization.
3. Each annual trade impact report required under paragraph d of
subdivision two of this section shall include:
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 regulato-
ry 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
e. Findings and recommendations of specific actions the state should
take in response to the impacts of trade on the state identified above.
Such actions may include, but shall not be limited to:
(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; and
(v) Implementation of a high-road growth strategy formulated with
business, labor and community participation. Such a strategy may
include, but not be limited to:
(1) More effective early warning and layoff aversion measures;
(2) Increased assistance and adjustment programs for displaced workers
and trade-impacted communities;
(3) Stronger standards and accountability for recipients of state
subsidies and incentives;
(4) Investments in workforce training and development;
(5) Investments in technology and infrastructure; and
(6) Increased access to capital for local producers.
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4. Within 30 days of receipt of the annual trade impact report:
a. The governor shall review the report and issue a public statement
explaining which of the report's recommendations for specific action
under paragraph e of subdivision three of this section the governor will
act upon in the next 30 days, whether through executive action or
proposed legislation.
b. The assembly and senate shall review the report, hold public hear-
ings on the report's recommendations for specific action under paragraph
e of subdivision three of this section, and introduce legislation to
enact those recommendations accepted by the assembly and senate.
5. A citizens' commission on globalization shall be created. The
commission shall consist of six members, two will be appointed by the
governor, two will be appointed by the temporary president of the senate
and two will be appointed by the speaker of the assembly. Commission
members shall serve four-year terms.
a. The following stakeholders shall be equally represented on the
commission: employers, labor organizations, community organizations, and
government.
b. The commission shall:
(i) Assess the legal and economic impacts of trade agreements;
(ii) Provide input on the annual trade impact report;
(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
(iv) Make policy recommendations to the governor, state legislature,
state congressional delegation, and U.S. trade negotiators.
S 5. This act shall take effect on the one hundred twentieth day after
it shall have become law.