Against: Each player must immediately pass his current Strategy Card to the player on his left.

Alright, so player 3 plays this law and it fails, so everyone passes their Strategy Cards to the left. The player who just played assembly now receives Production, giving her 4 in the turn order.

My question is, does the turn order resume as it was before the Strategies were passed so that everyone gets a turn, then changing to the new order determined by the switched cards, or does it happen immediately with some players losing their turn because they recieved Leadership or Diplomacy II while the player who played Assembly gets to go again because she received Production?

The turn order changes immediately, the player with production would then take their action (no matter who this is).

The turn order changes immediately, the player who now has production would then take their action (no matter who this is).

I agree with DPQ. Checks and Balances is crazy, and my group doesn't play with it.