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First Substitute H.J.R. 1

Representative Sheryl L. Allen proposes the following substitute bill:


             1     
RESOLUTION URGING THE WITHDRAWAL OF

             2     
UNITED STATES' WORLD TRADE

             3     
ORGANIZATION COMMITMENT ON GAMBLING

             4     
2009 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Sheryl L. Allen

             7     
Senate Sponsor: Mark B. Madsen

             8     
             9      LONG TITLE
             10      General Description:
             11          This joint resolution of the Legislature supports the withdrawal of the United States'
             12      World Trade Organization commitments on gambling.
             13      Highlighted Provisions:
             14          This resolution:
             15          .    supports the withdrawal of the United States' gambling commitments made in the
             16      General Agreement on Trade in Services; and
             17          .    expresses concern that the World Trade Organization withheld the terms of a
             18      proposed resolution under which the United States withdrew its gambling
             19      commitment made in the General Agreement on Trades in Services treaty.
             20      Special Clauses:
             21          None
             22     
             23      Be it resolved by the Legislature of the state of Utah:
             24          WHEREAS, the World Trade Organization (WTO) Dispute Resolution Body found the
             25      United States to have made a commitment under the General Agreement on Trade in Services


             26      (GATS) in the category of "Other Recreational Services" that covered gambling services;
             27          WHEREAS, the Appellate Body of the WTO acknowledged the importance of "public
             28      morals" concerns in this WTO dispute and the legitimacy of the United States "public morals"
             29      defense in this case;
             30          WHEREAS, states have considerable authority to regulate and prohibit various forms
             31      of gambling;
             32          WHEREAS, a number of states communicated with the Office of the United States
             33      Trade Representative (USTR) to express their concern about the WTO decision and its
             34      implications for public morals and for state regulation of gambling;
             35          WHEREAS, the USTR took steps last year to rescind the United States' commitment in
             36      "Other Recreational Services," consistent with the wishes of states as expressed through letters
             37      and direct communications to USTR, as well as the wishes of Congress as exemplified by the
             38      Unlawful Internet Gambling Enforcement Act;
             39          WHEREAS, in withdrawing this commitment, the United States had to offer
             40      compensatory adjustments in its overall schedule of GATS commitments, providing market
             41      access opportunities to United States' trading partners in other sectors;
             42          WHEREAS, the United States has signed Free Trade Agreements with a number of
             43      nations that are home to major on-line gambling operations;
             44          WHEREAS, the London-based Remote Gambling Association has already filed a
             45      complaint with the European Union asking that Europe bring a new WTO claim against the
             46      United States on gambling; and
             47          WHEREAS, the Utah Legislature created the Utah International Trade Commission in
             48      2006 as a legislative commission to address international trade issues:
             49          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
             50      expresses its gratitude to the USTR for its forthright position in the WTO gambling
             51      commitments dispute, and its willingness to withdraw the United States' commitment under
             52      "Other Recreational Services" once it was determined that this commitment covered gambling.
             53          BE IT FURTHER RESOLVED that the Legislature of the state of Utah recognizes that
             54      this action reflects the increasing responsiveness of the USTR in addressing the legitimate
             55      regulatory concerns of states in light of international trade commitments undertaken by the
             56      federal government.


             57          BE IT FURTHER RESOLVED that the Legislature of the state of Utah expresses its
             58      concern that the terms of the agreement whereby the United States withdrew the commitment
             59      under "Other Recreational Services" were withheld from members of Congress, the
             60      Intergovernmental Policy Advisory Committee (IGPAC), and state oversight commissions on
             61      international trade.
             62          BE IT FURTHER RESOLVED that the Legislature of the state of Utah expresses its
             63      concern that the USTR's recent actions are an effort to bypass Congress and IGPAC by
             64      proposing a solution outside of the constitutional United States Senate treaty ratification
             65      process.
             66          BE IT FURTHER RESOLVED that the Legislature of the state of Utah expresses its
             67      concern that United States' trading partners may attempt to bring further claims against federal
             68      and state gambling laws under trade and investment agreements that lack the "public morals"
             69      exception found in the WTO GATS.
             70          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the WTO,
             71      USTR, Utah Congressional delegation, and members of the U.S. Senate Finance and House
             72      Ways and Means Committees.


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