COMMITTEE REPORT

POLICIES SUBMITTED AT FALL FORUM

The following policies were submitted at the Fall Forum, held December 6-9 in Chicago, for Committee consideration: State Sovereignty to Use Tax Policy for Economic Growth and The Western Hemisphere Travel Initiative (WHTI). The tax policy statement is in response to the Cuno case, and encourages Congress to pass legislation reaffirming states' authority to decide their own tax policies. The WHTI policy is in relation to the pending rules by the U.S. State Department regarding the use of passports in travel between the U.S. and Canada. The Committee did not act on either resolution. The proposed text for both policies is online at www.ncsl.org/standcomm/scecon/chairmark.htm. If you have suggestions for amendments to these or any existing policies or ideas for new policies, please email jeremy.meadows@ncsl.org for consideration at the Spring Forum.

FALL FORUM BOASTS ANOTHER SUCCESSFUL TRADE SEMINAR

The Economic Development, Trade & Cultural Affairs Committee and the North Carolina Department of Commerce hosted a Trade Policy Leadership Seminar (TPLS) at the Fall Forum on December 6-7 in Chicago, building on the successful joint seminar offered by NCSL and the National Association of Attorneys General (NAAG) at the Spring Forum in April. Participants discussed states' roles in the global economy and a number of WTO issues such as procurement and subsidies. The TPLS agenda is online at www.ncsl.org/standcomm/scecon/TPLS05.htm. Presentations from the seminar will be on the Committee’s website by the end of January.

GOVERNING IN THE GLOBAL AGE SEMINAR CONDUCTED

The George Washington University Elliott School of International Affairs in Washington, DC hosted its 7^th Governing in the Global Age program, November 14-15. The program offers state and local leaders the opportunity to participate in executive briefings and debates on topics of global scope with critical implications for state and local policy and programs. For the November 2005 program, former Committee Chair and current NCSL Executive Committee member Representative Peter Lewiss led a delegation from Rhode Island. If you are interested in having your state participate in Governing in the Global Age and in leading a delegation in the future, please contact Jeremy Meadows at jeremy.meadows@ncsl.org.

EMINENT DOMAIN LIMITS BREEZE THROUGH U.S. HOUSE

States and localities would be prohibited from exercising eminent domain powers for economic development purposes in legislation (HR 4128) that passed the U.S. House on November 3 with a bipartisan 376-38 vote. The legislation stipulates that the prohibition applies in any fiscal year that a state receives federal economic development funds (to be defined by the U.S. attorney general) and conveys property from one private person or entity to another private person or entity without the original owner’s consent. HR 4128 identifies numerous exceptions to the prohibition. It also waives state sovereign immunity under the 11^th Amendment. NCSL opposed the legislation, stating that “the ill-advised bill would severely chill state and local revitalization efforts, preempt state and local land use laws, and curtail many valid and constitutional state and local projects.” Prior to its approval, House members handily rejected floor amendments striking the sovereign immunity waiver language, adding exemptions and gutting all but the “sense of the House” language expressing disapproval of the Kelo v. New London decision. The bill has been referred to the Senate Judiciary Committee.

BAHRAIN FTA IMPLEMENTATION LEGISLATION ENACTED

On December 13, the U.S. Senate approved implementing legislation for the U.S.-Bahrain Free Trade Agreement (HR 4340) by voice vote. It cleared the House on December 7 with a vote of 327-95 and was sent to President Bush after the Senate vote. The bill provides for administration of dispute settlement proceedings and specified tariff modifications. It also has requirements for the enforcement of rules of origin relating to textiles and apparel and actions for relief from imports benefiting from the Agreement.