National Conference of State Legislatures
Communications, Financial Services & Interstate
Commerce Committee
News from the States
Committee Update
NCSL Spring Forum, Washington,
D.C., April 24-26, 2008
The Communications, Financial Services and Interstate
Commerce (CFI) Committee will hold its next meeting April 24-26, 2008 in
Washington, D.C. At the Spring Forum, the Committee will address several
crucial state-federal policies and explore key state issues. Topics include
streamlined sales tax, Surplus Lines Multi-State Compliance Compact (SLIMPACT),
accessibility of government information, foreclosure mitigation efforts,
communications tax, NFL equal access, and regulation of credit and debit
cards. In addition, Committee members are invited to participate in the
Task Force on Corporate Formation, which will meet the afternoon of April
23rd and the morning of April 24th. For updates to
the agenda, see the CFI
Committee web page or contact Committee staff, Jo
Anne Bourquard, Heather
Morton or Neal
Osten.
Summary of NCSL Fall Forum, Phoenix, Arizona, November
27-30, 2007
At the CFI Committee meeting November 27-30th in
Phoenix, Arizona, the agenda included hearings on 21st Century Communications,
and sessions on identity theft, streamlined sales tax, telecommunications
taxation, discriminatory taxation of communications, organized retail theft,
payday lending, and updates on the Interstate Insurance Regulation Compact
and the Optional Federal Charter. The Committee also sponsored two pre-conference
events: the Task Force on Corporate Formation and the Connecting America
Foundation for State Legislatures Partners Project. The Task Force on Corporation
Formation reviewed federal reports analyzing whether state corporate formation
laws and current state standards allow money laundering by criminal and
terrorist elements. The Connecting America Foundation for State Legislatures
Partners Project held a tour and briefing at Cisco's Phoenix office where
attendees saw a broadband application that combines advanced audio, true
high definition video and interactive elements to create unique, "in-person"
experiences between people, places and events over the IP network. See
the Committee's
Fall Forum web page and the Connecting
America Broadband Policy Issues web page for handouts.
Financial Services
Hey, what's my score?
Fair Isaac Corporation announced that they
are changing the formula used to calculate credit scores. The changes are
intended to make the formula better able to separate good risks from bad
risks. Dubbed "FICO 08," the formula will better predict risk for consumers
with new or thin credit files, consumers who are considered higher risk,
such as subprime borrowers, and consumers who are actively seeking new
accounts.
In addition, the new formula will ignore authorized
user accounts when calculating credit scores. An authorized user account
is a person who is starting to establish a credit history and is permitted
by the account holder to use the account. Typically, the authorized user
is related to the account holder. Recently, some credit repair services
have sold consumer credit card histories to credit applicants as a way
to represent the applicants' credit history to lenders and other businesses.
FICO 08 will still use the same scale, 300 to
850, with the higher scores indicating better credit ratings. Credit scores
are calculated based on payment history, amounts owed on accounts, length
of credit, new credit and types of credit used.
- Submitted by Heather Morton
Mortgage Licensing Goes National
On January 2, 2008, the Nationwide Mortgage Licensing
System (NMLS) went live. In a move to help state residential mortgage regulators,
the Conference
of State Bank Supervisors (CSBS) and the American
Association of Residential Mortgage Regulators (AARMR) developed a
national licensing system and database for residential mortgage lenders
and loan brokers. The Residential Mortgage Licensing System will be a central
repository of licensing information and enforcement actions.
Begun in 2004, CSBS, AARMR and the mortgage industry
developed a uniform mortgage application for each state and worked with
the National Association of Securities Dealers, Inc. (NASD) to create a
secure, Internet-based system for participating state-licensed mortgage
professionals. The system allows lenders and brokers to apply for and renew
their licenses, and it will provide consumers access to licensing and enforcement
actions. Plans call for consumers to have access to the system's public
licensing and enforcement information in 2009, enabling them to make a
more informed decision when selecting a mortgage loan officer and lender.
The primary goals of the system are to:
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* Streamline the licensing process for regulators
and mortgage professionals.
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* Reduce the regulatory burden and improve the efficiency
and effectiveness of state supervision.
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* Increase accountability among mortgage industry
professionals.
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* Reduce mortgage fraud and predatory lending practices.
To date, 40 states have agreed to participate in
the Residential Mortgage Licensing System. Idaho, Iowa, Kentucky, Massachusetts,
Nebraska, New York and Rhode Island are the initial participants.
- Submitted by Heather Morton
Internet and Information Technology
Preserving Legislative Legacies
NCSL is working with the Minnesota Historical Society
and the Library of Congress to identify model practices to preserve and
provide access to legislative records in the digital age. State and territorial
librarians, archivists and records managers, in a recent survey, identified
legislative records as most “at-risk” of loss among types of government
records. This two-year
project will develop best practices for state legislatures to provide
enhanced online access to and preservation of legislative materials in
digital form.
This project will emphasize working with legislators
and legislative staffs to identify best practices for collecting, sharing
and providing access to digital content so as to better position repositories
to preserve that content. The project will also test the capacity of other
states to adopt that model, analyze the results with the legislative and
government records communities, and identify how different states could
position themselves to implement similar programs. It also aims to develop
compelling business cases for further investment and will use education
and outreach to promote further collaboration and sustainability.
The Minnesota State Archives is leading the effort
in partnership with the Minnesota Revisor's Office, the Minnesota Legislative
Reference Library, the California Digital Library, California’s State Library
and State Archives, the California Legislative Counsel, and NCSL. Other
participating states include Illinois, Kansas, Mississippi, Tennessee,
and Vermont.
Funding and support comes from the Library of
Congress' National
Digital Information Infrastructure and Preservation Program. For additional
information about the project, contact Jo
Anne Bourquard or Pam
Greenberg.
- Submitted by Pam Greenberg
Telecommunications
Robo Calls in the News
Nine states—Arkansas, Idaho, Indiana, Minnesota,
Montana, New Hampshire, North Dakota, South Carolina and Wyoming—have passed
legislation to restrict or tightly regulate certain telephone calls with
pre-recorded messages from political candidates (also known as robo-calls).
At least 21 states considered legislation regulating robo-calls in 2007.
Iowa
introduced a measure that carried over to 2008. And, Colorado,
Kentucky
and New
Jersey have introduced legislation thus far in 2008. Submitted
by Bob Boerner
- Submitted by Bob Boerner
Regulation of Telecommunications Towers
More than 243 million consumers currently subscribe
to wireless telephone service in the United States. Due to the growing
demand for these services, wireless companies face pressure to extend the
networking capabilities and range of service reception areas. To prevent
the number of dead zones and dropped calls, additional telecommunications
towers will need to be placed in the near future. However, the placement
of the towers can be controversial.
State legislation regulating telecommunications
tower siting has been introduced in 2008 in Hawaii,
Maryland,
Oklahoma
and Tennessee.
For additional information on this topic, please see the NCSL LegisBrief
at: http://www.ncsl.org/legis/lbriefs/2008/08LBFeb_Siting.pdf.
- Submitted by Bob Boerner
Digital TV Transition
On February 17, 2009, analog television broadcasts
will cease. As mandated by Congress, broadcasters must switch from analog
to digital broadcasts in order to free additional spectrum for the nation’s
first responders. According to the National Association of Broadcasters,
over 70 million television sets still rely on an analog signal for television
service; of which 20 million households rely upon "over-the-air" analog
broadcast for their television service, and an additional 14 million households
still use an analog television somewhere in their home.
Why is the switch to a digital format important?
Because digital broadcasts use smaller segments of spectrum than an analog
broadcasts, the digital transition will free additional spectrum for public
safety agencies and the private sector. The conversion will produce an
additional 108 MHz (698-806 MHz or 700 MHz spectrum band) that may be used
by public safety services and by the private sector. Of the 108 MHz available
under the digital transition, 24 MHz is allocated for public safety agencies,
36 MHz is allocated to the private sector, and the remaining available
spectrum was scheduled to be auctioned off by January 2008.
Consumers who own analog televisions will have
several choices. A consumer can: purchase an analog-to-digital converter
box to continue using their analog television; purchase a digital television
set; subscribe to cable or satellite services (households that subscribe
to cable or satellite services should check with their provider to determine
whether new equipment is otherwise required); or choose not to use their
analog television set. Congress has created a program to help consumers
with the first option.
NCSL has a countdown clock with additional information
available on the following page:
http://www.ncsl.org/standcomm/sccomfc/DTV.htm
and a recent LegisBrief available at:
http://www.ncsl.org/programs/pubs/summaries/08LBJan_Analog-sum.htm.
- Submitted by Garner Girthoffer
Broadband Task Forces Created in California and
Ohio
The California Broadband Task Force (CBTF), formed
in late 2006 by Governor Arnold Schwarzenegger, issued its final report
in January, 2008. It recommends several measures to encourage broadband
infrastructure build out in the state so that all Californians can have
high speed Internet access. The report encouraged use of existing state
program such as the California Teleconnect Fund, Emerging Technology Fund
and Advanced Services Fund to promote deployment of high-speed broadband
to unserved areas. To read “The State of Connectivity: Building Innovation
Through Broadband,” click on http://www.calink.ca.gov/pdf/CBTF_FINAL_Report.pdf.
The State of Ohio recently created a broadband
task force named the Ohio Broadband Council. The Council is directed to
address the following:
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* Direct a unified, statewide broadband development
effort
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* Develop the phased implementation of Broadband
Ohio
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* Develop a strategic plan for statewide broadband
deployment, determining the resources necessary for it implementation
-
* Coordinate all broadband activities that receive
state-appropriated funds and pursue new federal and private-sector investments
in broadband
-
* Establish policies and promote new public and private
broadband networking investments
-
* Develop a strategic plan to achieve digital inclusion.
To learn more about the Ohio Broadband Council, click
on:
http://www.ohiobroadbandcouncil.org/council/index.shtml.
To learn more about other broadband task forces, please visit the Connecting
America Broadband Policy Issues and Options for State Legislatures Web
site at: http://www.ncsl.org/programs/lis/ConnectAmericaPubs.htm#State.
- Submitted by Bob Boerner
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