I

106TH CONGRESS

2D SESSION H. R. 5534

Providing that State and local laws prohibiting or otherwise restricting

economic activity with foreign countries are null and void.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 24, 2000

Mr. OXLEY introduced the following bill; which was referred to the Committee

on International Relations

A BILL

Providing that State and local laws prohibiting or otherwise

restricting economic activity with foreign countries are

null and void.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Uniform Trade Sanc5 tions Act’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) Article VI of the United States Constitution

9 provides that the laws and treaties of the United
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1 States are ‘‘the Supreme Law of the Land’’ and the

2 judges in every State shall be bound thereby.

3 (2) Article I, section 8, clause 3 of the Con4 stitution authorizes the Congress to regulate com5 merce with foreign nations, among the several

6 States, and among Indian tribes. This clause by im7 plication prohibits States from unreasonably bur8 dening or discriminating against such commerce un9 less Congress has authorized States to do so.

10 (3) The Supreme Court has also consistently

11 recognized in numerous decisions that the Federal

12 Government has complete and exclusive power over

13 the foreign affairs of the United States. The United

14 States District Court for the District of Massachu15 setts recently reiterated this exclusive foreign affairs

16 power in striking down the Massachusetts law im17 posing sanctions on Burma.

18 SEC. 3. INEFFECTIVENESS OF STATE AND LOCAL LAWS

19 REGULATING ECONOMIC ACTIVITY WITH

20 FOREIGN COUNTRIES.

21 (a) GENERAL RULE.—Any law of a State or local

22 unit of government that imposes any restriction or condi23 tion on economic activity with respect to a specified for24 eign country, or with a foreign country or nationals or en25 tities of a foreign country by reason of specified conduct
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1 by such foreign country, nationals, or entities, shall have

2 no force or effect.

3 (b) SPECIFIC MEASURES DESCRIBED.—For purposes

4 of subsection (a), a restriction or condition on economic

5 activity with respect to a foreign country, national, or enti6 ty includes, but is not limited to, the following:

7 (1) The suspension, restriction, or prohibition

8 of exports or imports of any product, technology, or

9 service to or from that foreign country, national, or

10 entity.

11 (2) The suspension of, or any restriction or pro12 hibition on, providing goods or services to, or engag13 ing in any financial transaction with, the govern14 ment of that foreign country, national, or entity.

15 (3) Any restriction or prohibition on having a

16 place of business in that foreign country or with that

17 foreign national or entity.

18 (4) Any restriction or prohibition on being a

19 business entity that is owned or controlled by an20 other entity that engages in any of the activities sus21 pended, restricted, or prohibited as described in

22 paragraph (1), (2), or (3).

23 (5) Any restriction or prohibition on acquiring

24 or having an ownership interest in an entity that

25 provides goods or services as described in paragraph
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1 (2), in an entity that has a place of business de2 scribed in paragraph (3), or in a business entity de3 scribed in paragraph (4).

4 (6) A measure imposing any prohibition, re5 striction, or condition on economic activity on any

6 foreign government, national, or entity on the

7 ground that such government, national, or entity

8 provides goods or services to, or engages in any fi9 nancial transaction with, the government of the for10 eign country, national, or entity referred to in the

11 matter preceding paragraph (1).

12 (7) A measure imposing any prohibition, re13 striction, or condition on economic activity on any

14 person that is a national of a foreign country, or on

15 any government or other entity of a foreign country,

16 on the ground that the government of that country

17 has not taken measures in cooperation with, or simi18 lar to, sanctions imposed by the applicable State or

19 local unit of government on the foreign country, na20 tional, or entity referred to in the matter preceding

21 paragraph (1).

22 (8) A measure that imposes taxes on economic

23 activity with the foreign country, national, or entity

24 referred to in the matter preceding paragraph (1).
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1 SEC. 4. ENFORCEMENT.

2 (a) SUITS BY THE ATTORNEY GENERAL.—The Attor3 ney General, on behalf of the United States is authorized

4 to bring suit to declare invalid or enjoin enforcement of

5 any State or local restriction or condition to which this

6 Act applies on the ground that it has not force or effect.

7 (b) REMEDY NON-EXCLUSIVE; PRESERVATION OF

8 OTHER REMEDIES.—Nothing in this Act shall be con9 strued to preclude or otherwise affect any suit by any per10 son to declare invalid or to enjoin any State or local law

11 on the ground that it is unconstitutional or on the ground

12 that it is inconsistent with a Federal law or regulation.

13 SEC. 5. DEFINITIONS.

14 For purposes of this Act:

15 (1) The term ‘‘financial transaction’’ has the

16 meaning given that term in section 1956(c) of title

17 18, United States Code.

18 (2) The term ‘‘State’’ includes the District of

19 Columbia and any commonwealth, territory, or pos20 session of the United States.

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