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Assembly on Federal Issues
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NEW! Resolution Protecting Consumers Against "Slamming" |
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National Driver's License |
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Keeping the Federal Commitment to Welfare Reform and Human Services Programs |
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State-Tribal Relations |
WHEREAS, the court ordered break up of AT&T in the 1980's opened the long distance markets to competition and the Telecommunications Act of 1996 has endeavored to do the same in the local telephone markets; and
WHEREAS, such competition while lowering prices for consumers and offering greater services, has resulted in a number of unscrupulous telephone service providers which through the fraudulent means of slamming and cramming have stolen millions of dollars from both consumers and legitimate telephone service providers; and
WHEREAS, slamming is the practice of changing a consumer's preferred carrier without that consumer's knowledge or express consent and cramming is the billing of unauthorized charges on a consumer's telephone bill; and
WHEREAS, in 1997 alone, the Federal Communications Commission received over 20,000 slamming complaints from consumers which is just a small fraction of the total amount of consumers who have been slammed. (AT&T reported last year that over 500,000 of its own customers were slammed, similar reports come from other telephone service providers, US West claims approximately 40,000 slamming complaints a month, Southwestern Bell averages 4,000 to 6,000 complaints a month and Ameritech-Illinois reports that the first half of 1997, the company had to deal with over 16,000 slamming complaints); and
WHEREAS, the Federal Trade Commission and state public service commissions are reporting an increase in complaints from consumers about the practice of cramming; and
WHEREAS, the Federal Communications Commission has the authority to investigate complaints of telephone service fraud and to punish companies that violate existing FCC regulations; and
WHEREAS, the United States General Accounting Office reported in April 1998 to Congress that the FCC has taken relatively modest punitive actions against companies that engage in telephone services fraud; and
WHEREAS, as a result of the lack of a strong federal response by the FCC to the problem of slamming, states have had to become the first line of defense against this fraudulent activity. (In response to the number of our constituents who have been slammed several state legislatures have enacted strong anti-slamming laws, including Alabama, Florida, Maine, Michigan, Minnesota, Montana, New Hampshire, New Jersey, New York, Tennessee, and Texas); and
WHEREAS, the just completed 105th Congress, frustrated with the lack of a sufficient response by the FCC to slamming, considered legislation which would have put in place rules and regulations governing the change of telephone service providers by consumers; and
WHEREAS, such legislation as originally introduced would have preserved state sovereignty to enact strong and more restrictive state laws against slamming; and
WHEREAS, on June 23, 1998, in testimony before the United States House Commerce Committee, Lawrence Strickling, Deputy Bureau Chief of the Common Carrier Bureau of the Federal Communication Commission, endorsed the provisions of the legislation with regard to state authority: "We (the FCC) believe that it is important to authorize the states to provide greater consumer protection for their residents based on their knowledge of local experiences, provided that such measures do not thwart or impede Congress' vision of a competitive telecommunications marketplace."; and
WHEREAS, as a result of industry efforts during the Congressional debate, the House version of the legislation, H.R. 3888, was amended to preempt stronger or more restrictive state anti-slamming laws on that premise that it would be too cumbersome for telephone service providers to comply with different state laws; and
WHEREAS, the National Conference of State Legislatures along with the National Association of Attorneys General, the National Governors' Association and the National Association of Regulatory Utility Commissions opposed such preemption; and
WHEREAS, with the opposition from the national organizations representing elected and appointed state officials, a number of members of Congress, led by United States Senators Susan Collins (Republican-Maine) and John Kerry (Democratic-Massachusetts) were able to block consideration of H.R. 3888 in the Senate and prevailed in reaching an agreement with the Chair of the House Commerce Committee to remove the preemption of state authority; and
WHEREAS, the 105th Congress adjourned before further consideration of the anti-slamming legislation; and
WHEREAS, the Federal Communications Commission is expected to shortly announce its new rules and regulations with regard to switching of telephone service providers and other billing practices as required by the Telecommunications Act of 1996; and
WHEREAS, should the FCC fail to issue the above mentioned rule or if such rule is determined to be inadequate in dealing with the problem of slamming, the 106th Congress is likely to consider legislation next year on slamming and cramming.
NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures, by means of this resolution, reaffirms its strong support for state legislative and regulatory authority to protect consumers from fraudulent and illegal activity by certain telephone service providers; and
BE IT FURTHER RESOLVED, that the National Conference of State Legislatures would support Congressional efforts to include provisions in anti-slamming legislation which reaffirms state authority to enact stricter state laws and regulations individually or collectively against slamming and cramming practices than contained in federal statutes, rules and regulations; and
BE IT FURTHER RESOLVED, that it should not be construed that in approving this Resolution, NCSL supports or encourages passage of legislation which would be judged to be an impediment to a competitive telecommunications marketplace; and
BE IT FURTHER RESOLVED, that NCSL expresses its appreciation to those members of the United States Senate who were successful in opposing passage of H.R. 3888: Senators Susan Collins (R-Maine), John Kerry (D-Massachusetts), Bob Graham (D-Florida), Kay Bailey Hutchison (R-Texas), Richard Durbin (D-Illinois), John McCain (R-Arizona) and Ernest Hollings (D-South Carolina); and
BE IT FURTHER RESOLVED, that a copy of this resolution be sent to all members of the 106th Congress and the Federal Communications Commission.
December 1998
The Advisory Commission on Electronic Commerce - Congress Must Follow the Law
WHEREAS, over the last two years, Congress, state and local governments and the Internet/Electronic Commerce industries have been working to address the issue of taxation of the Internet and transactions which occur over that medium; and
WHEREAS, legislation was introduced in both Houses of Congress in 1997 with the intent according to the bill sponsors of protecting "an industry in its infancy" from discriminatory, multiple and/or new state and local taxes; and
WHEREAS, such legislation as introduced would have resulted in a broad preemption of state taxing authority and a major reduction of state revenues for an indefinite period; and
WHEREAS, the National Conference of State Legislatures opposed the original introduction of the Internet Tax Freedom Act based upon the Conference’s long standing policy opposing any federal preemption of state taxing authority; and
WHEREAS, NCSL recognized that the intent of the original legislation while ill-drafted was to provide a time-out for states and the industry to develop consensus legislation that promotes business growth and tax fairness for all commerce, regardless where it may be transacted; and
WHEREAS, NCSL made a concerted effort to work with Congressional sponsors to modify the legislation to produce a bill that contained:
WHEREAS, the final legislation containing the three principles enumerated above which had the support of NCSL, passed the Congress and signed into law by the President on October 21; and
WHEREAS, the Internet Tax Freedom Act establishes an Advisory Commission on Electronic Commission and requires the Commission to contain eight state and local government representatives officials, one of which was to come from a non income tax state and one from a non sales tax state and eight representatives from the electronic commerce industry, including Main Street retailers, and consumers. The Advisory Commission also includes the Secretaries of Commerce and Treasury and the United States Trade Representative; and
WHEREAS, the Senate Majority Leader and the Speaker of the House were to appoint five members each and the Senate Minority Leader and the House Minority Leader were to appoint three each; and
WHEREAS, such appointments were to be made within 45 days of the enactment date, December 5, 1998; and
WHEREAS, NCSL in conjunction with the National Governors’ Association, the National Association of Counties; the National League of Cities and the United States Conference of Mayors submitted a list government leaders--governors, legislative presiding officers and local executive officials to the Congressional leadership for their consideration; and
WHEREAS, one of the primary functions of legislatures is the writing of tax law; and
WHEREAS, state legislatures have many qualified and respected members who would bring expertise on tax policy and knowledge of the burgeoning electronic commerce industry to the commission's deliberations; and
WHEREAS, including more legislators, especially state legislative leaders, on the commission would also vastly improve the chances of selling the commission's findings to the 50 state legislatures-the bodies that would be entrusted with implementing the commission's findings; and
WHEREAS, NCSL has nominated three legislative leaders, Representative Dan Blue, former Speaker of the North Carolina House of Representatives, Senator Richard Finan, President of the Ohio State Senate and Speaker Donna Sytek of New Hampshire (New Hampshire is a non-sales tax state.); and
WHEREAS, by December 7, 1998, the Congressional leaders had appointed the following:
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Speaker Gingrich: |
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Governor Jim Gilmore, Virginia (GOVERNMET) |
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Senator Majority Leader Lott: |
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Governor Mike Leavitt, Utah (GOVERNMENT) |
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Senate Minority Leader Daschle: |
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Mike Armstrong, Chairman and CEO, AT&T (INDUSTRY) |
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House Minority Leader Gephardt: |
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Governor Gary Locke, Washington (GOVERNMENT) |
WHEREAS, such appointments amount to only six state and local representatives with none from a non-sales tax state and ten commissioners from industry, which violates the provisions of the Internet Tax Freedom Act, passed by Congress less than two months ago; and
WHEREAS, the Congressional leaders also failed to appoint at least one representative from America's Main Street retailers or even a consumer organization; and
WHEREAS, failing to comply with the Act will make the commission vulnerable to challenge in court and risks wasting the next 18 months on legal wrangling rather than the serious study of the questions involved with electronic commerce and the revenue system of state and local governments;
NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures by this resolution lodges an official challenge to the legitimacy of the Advisory Commission and urges Congress to abide by the law which it has just approved and rectify the imbalance on the Advisory Commission; and
BE IT FURTHER RESOLVED, that NCSL calls upon the Congressional leadership to meet as soon as possible to reconsider the appointments and to create a commission that is balanced, representative of the various interests concerned with Internet taxation, and complies with the legal requirements in the Internet Tax Freedom Act; and
BE IT FURTHER RESOLVED, that NCSL calls upon Congress to increase state legislative membership on the Commission to three; and
BE IT FURTHER RESOLVED, that NCSL acknowledges the one state legislative appointment, Delegate Paul Harris of Virginia, made to the Advisory Commission by Senator Trent Lott, the Senate Majority Leader; and
BE IT FURTHER RESOLVED, that NCSL calls upon the Congressional leadership not to abandon our Main Street retailers and consumers and to appoint appropriate candidates to represent them on the Commission; and
BE IT FURTHER RESOLVED, that the National Conference of State Legislature will challenge the validity of any meeting the Commission and any recommendations or finding the Commission may issue until the imbalance of the Commission is corrected; and
BE IT FURTHER RESOLVED, that a copy of this resolution be sent to all members of the 105th and 106th Congresses.
December 1998
WHEREAS, the Internet is a collection of computer networks that enables the user to communicate electronically with other users around the world; and
WHEREAS, millions of businesses, families, senior citizens, and physically challenged persons participate in on-line communications activities through their computers to connect to the Internet, to send and receive electronic mail, to connect their businesses from their homes and other remote locations, and to connect to a variety of on-line databases; and
WHEREAS, retail electronic commerce totaled $2.6 billion in 1997 and is expected to reach $12 billion by the year 2000; and
WHEREAS, business-to-business electronic commerce amounted to $8 billion in 1997 and is expected to grow to $327 billion by 2000; and
WHEREAS, businesses, consumers, and others engaging in interstate and foreign commerce on the Internet or on-line could become subject to conflicting and complex tax structures in over 6,000 different taxing jurisdictions; and
WHEREAS, multiple, uncoordinated and inconsistent taxes imposed on Internet activity could threaten to restrict the growth and continued technology maturation of the Internet itself, and could call into question the continued viability of this dynamic medium; and
WHEREAS, state governments, particularly state legislatures, are concerned about the unintended consequences of multiple or discriminatory taxes on this vital new technology; and
WHEREAS, the National Conference of State Legislatures recognizes the vital economic force that the Internet and advanced communications systems will be for our states, our nation and world, and that there is a need for a coordinated and simplified tax structure that is not an impediment to the growth of these services; and
WHEREAS, such concern has resulted in ten state legislatures repealing taxes on the Internet or postponing enforcement until the impact of such taxes can be determined and at least three other states are presently considering similar action this year; and
WHEREAS, state and local governments have joined with representatives of the Internet industry to establish the Communications and Electronic Commerce Tax Project under the auspices of the National Tax Association; and
WHEREAS, it is the intent of the Communications and Electronic Commerce Tax Project to reach consensus between state and local government and industry on simplicity and uniformity of taxation of electronic commerce transactions on the Internet; and
WHEREAS, at the same time, state legislators are concerned about federal legislation prohibiting Internet taxation that is too broadly drafted or ill-defined, which could result in unfair competition at the expense of our states' Main Street businesses and a new financial burden on state and local taxpayers;
WHEREAS, the United States House of Representatives has passed legislation which was the direct product of negotiations between the National Conference of State Legislatures, other national state and local organization and representatives of the Internet Tax Fairness Coalition and the Direct Marketers Association; and
WHEREAS, such legislation, H.R. 4105 contained provisions which NCSL's membership endorsed during the Conference Spring Meeting in April of this year. Those provisions are:
NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures urges the United States Senate to ensure that the principles enumerated above are included in the Senate's version of the Internet Tax Freedom Act; and
BE IT FURTHER RESOLVED, that NCSL calls upon the Senate to pass H.R. 4105 and not to accept any amendments which would weaken the principles agreed to by state and local government organizations and industry representatives; and
BE IT FURTHER RESOLVED, that a copy of this resolution be sent to the President of the United States and all members of the 105th Congress.
July 1998
Whereas, studies of industry and government workforce requirements indicate that, by the year 2000, 60 percent of new jobs will require computing and information skills currently held by only 20 percent of the population; and
WHEREAS, one in ten information technology jobs in the United States are currently unfilled; and
WHEREAS, it is essential that to maintain our nation's status as a leader in information technology, we must ensure the development of a qualified, high technology workforce; and
Whereas, it is recognized by industry, government and education leaders that the establishment of technology platforms and access to these platforms by school children is necessary to maintain the competitive advantage of the United States in the global economy; and
Whereas, it was the intent of Congress in passing Section 254(h) of the Telecommunications Act of 1996 to ensure that health care providers for rural areas, elementary and secondary school classrooms, and libraries have affordable access to modern telecommunications services that will enable them to provide medical and educational services to all parts of the nation; and
WHEREAS, the Federal Communications Commission (FCC) established a separate Universal Service Fund program dedicated to the provision of communication services for schools and libraries known as the E-rate; and
Whereas, this separate program dedicated to schools and libraries envisioned the employment of discounts, ranging from 20 to 90 percent, to be applied to telecommunications services, Internet access, and internal connections to accelerate the introduction of information technology into classrooms and libraries; and
WHEREAS, such support amounts to only 15 percent of the total technology costs for schools and libraries; and
WHEREAS, schools and libraries are responsible for leveraging those discounts to fulfill the other approximately 85 percent required for a complete technology program by combining resources from other federal programs, state and local governments, and philanthropic and corporate donations; and
WHEREAS, the E-Rate discount program in May 1997 was capped at $2.25 billion per year by the Federal Communications Commission; and
WHEREAS, within the first 75 days of the program in 1998, 30,000 applications, totaling $2.02 billion in discounts over the first 12 months, were received by the administering corporation from entities representing schools and libraries; and
WHEREAS, the Telecommunications Act of 1996 requires that all telecommunications carriers that provide interstate service must contribute to the federal Universal Service Fund; and
WHEREAS, the FCC's Universal Service Order establishes a mechanism to assess telecommunications carriers new charges to support the federal Universal Service Fund including the support for schools and libraries, E-Rate; and
WHEREAS, some telecommunications service carriers involved in interstate telephone services pass the new costs to support the federal Universal Service Fund on to their customers (which may amount to as much as an additional 5 percent of the costs of a consumer's interstate toll service); and
WHEREAS, such telecommunications service carriers pass these new costs on to their customers’ long distance phone bills making them aware of the new amount they will be paying each month as a result of the FCC authorized federal Universal Service Fund assessment; and
WHEREAS, some in Congress have expressed their disappointment with and opposition to the Universal Service mechanisms put in place by the FCC to support the E-Rate; and
WHEREAS, such Congressional criticisms have caused the FCC to modify the schedule and amount of money available for funding the discounts to $ 1.925 billion over an 18 month period; and
WHEREAS, many schools and libraries, which have budgeted around the promise of these discounts and leveraged the other necessary resources, will realize a significant shortfall; and
WHEREAS, some in Congress are proposing new E-Rate legislation which would provide for the guaranteed funding of advanced telecommunications services for schools and libraries by earmarking a certain percent of funds already collected under the existing federal Telecommunications Excise Tax; and
WHEREAS, it is estimated that the Congressional proposal to use the Telecommunications Excise Tax would raise $2.565 billion in funding for discounts to schools and libraries in 1999 which would be a substantial increase over the FCC's annual spending cap for discounts of $ 2.25 billion; and
WHEREAS, the Congressional proposal calls for the funds to be distributed to schools and libraries through direct block grants to states which would allow the appropriate state officials to ensure that the funding compliments existing state efforts;
NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures recognizes the need to ensure our nation has the future workforce to sustain its competitive advantage in global markets; and
BE IT FURTHER RESOLVED, that the NCSL acknowledges the importance of ensuring our nation's schools from K through 12th grade are capable of taking full advantage of advanced telecommunications and information technology; and
BE IT FURTHER RESOLVED, that all schools regardless of location or income levels of students' families be provided with the appropriate funding to ensure access to advanced telecommunications services to all students; and
BE IT FURTHER RESOLVED, that the NCSL recognizes the political controversy surrounding the federal Universal Service support mechanisms for education and health; and
BE IT FURTHER RESOLVED, that NCSL calls upon Congress and the Federal Communications Commission to keep in place the current E-Rate program until an alternative funding mechanism can be implemented; and
BE IT FURTHER RESOLVED, that the NCSL calls upon Congress to:
BE IT FURTHER RESOLVED, that the National Conference of State Legislatures calls upon Congress to enact a viable, ongoing and reliable funding mechanism to support access by schools and libraries to advanced telecommunication and information technology before adjourning the 105th Congress;
BE IT FURTHER RESOLVED, that this resolution be sent to the President of the United States and to all members of Congress.
July 1998
WHEREAS, the turn of the century represents a major challenge for federal, state and local governments as well as for all organizations that rely heavily on computer technology; and
WHEREAS, most computer software designed in the last three decades used a standard simple date shorthand format (MM/DD/YY), which can create problems as we approach the millennium and computer system may mistake the year 2000 for 1900; and
WHEREAS, this simple mistake may cause many computer systems to cease functioning thus resulting in system delays and failures which could range from inconvenient to disastrous; and
WHEREAS, the costs to both the private and public sectors will cost hundreds of billions of dollars and hundreds of thousands of hours of manpower to correct this simple mistake; and
WHEREAS, the work required to correct this mistake appear simple, it involves searching through millions of lines of computer code to find and make the needed changes; and
WHEREAS, extensive testing is required to make sure the changes will perform under a range of circumstances; and
WHEREAS, the Internal Revenue Service and other federal agencies have asked Congress to delay implementation of new legislation to allow the agencies the time to dedicate resources toward fixing the Year 2000 problem; and
WHEREAS, in a normal year, many business are subject to changing laws and regulations that mandate business process changes and require companies to modify their computer systems; and
WHEREAS, a "millennium moratorium" on legislative and regulatory changes which require system modifications during the six months before and the six months after January 1, 2000 will provide American businesses the necessary flexibility to make the Year 2000 transition in an orderly fashion;
NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures acknowledges the costs and resources which will be necessary to prevent major catastrophes which may occur as a result of the Year 2000 problem; and
BE IT FURTHER RESOLVED, that the effort to correct the date change problem must take precedence for both the public and private sectors over the next two years; and
BE IT FURTHER RESOLVED, that the National Conference of State Legislatures calls upon the Congress and the Administration to refrain from enacting or implementing new laws or regulations on state and local governments which would require state and local governments to make systems modifications and which would have an effective date between July 1, 1999 and July 1, 2000; and
BE IT FURTHER RESOLVED, that NCSL supports extending such regulatory moratorium treatment to all private sector regulated entities during the period of July 1, 1999 and July 1, 2000; and
BE IT FURTHER RESOLVED, that NCSL would support waiving such regulatory moratorium in case of a national emergency or crisis.
July 1998
The issuance and production of driver’s licenses is currently within the purview of the states. NCSL feels strongly that the authority to issue and produce driver’s licenses should continue to remain within the domain of state authority.
The 1996 Immigration Reform Act, Section 656 (b) proposes rules requiring states to follow federal guidelines in issuing and producing driver’s licenses. Under section 656 (b) states are mandated to:
The movement of the states regarding driver’s licenses has been to eliminate the use of Social security numbers and instead issue a random ID number to the driver. This is done for reasons including, but not limited to privacy. Section 656 (b) of the Immigration reform act, constitutes a move in the opposite direction of the states. Additionally, NCSL feels strongly that because of the absence of any financial assistance, these proposed rules would impose an undue financial burden on the states, as well as an enormous administrative burden. This monetary burden constitutes an unfunded mandate on the states and is a direct violation of the unfunded mandate act of 1994.
NCSL strongly opposes this or any attempt to establish a national driver’s license or National ID card and the preemption of state authority regarding the issuance and production of driver’s licenses.
July 1998
In 1996, Congress enacted and the President signed welfare reform legislation based on a partnership between the states and the federal government, The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). The National Conference of State Legislatures (NCSL) strongly believes that the federal government must not depart from the historic welfare agreement made with the states and must maintain its commitment to welfare reform.
State and federal policymakers agreed to forego the sixty-year old AFDC entitlement program in exchange for greater authority and a capped, guaranteed funding stream for five years, the Temporary Assistance to Needy Families Block grant (TANF). The welfare reform agreement also included changes to Title XX, the Social Services Block Grant. Under PRWORA, funds for Title XX were reduced with the understanding that no further reductions would be made and states were allowed to transfer up to 10% of TANF to Title XX.
Several proposals before Congress would dismantle this agreement in its infancy by reducing funding for TANF and related programs and the Social Services Block Grant (Title XX). We urge the Congress to maintain its commitment to existing welfare and related programs, such as Title XX and LIHEAP. In addition, the Administration proposed a significant cut in Title XX in their budget. These actions strike at the very heart of devolution and represent a federal departure from the welfare reform agreement forged less than two years ago.
States have and continue to uphold their part of the welfare reform agreement. States expect no less from the federal government. The National Conference of State Legislatures urges Congress and the Administration to resist all efforts to cut the welfare block grant (TANF), the social services block grant, LIHEAP or any related welfare program and preserve the full integrity of the historic welfare agreement.
July 1998
The states and Indian tribes share many of the same difficulties and frustrations in finding the resources to address the human, social, and other governmental needs of our citizenry. Competition for limited resources may hamper the cooperative efforts of states and tribes to resolve common problems.
The National Conference of State Legislatures recognizes the need for diversification of tribal economies for the encouragement of self sufficiency. NCSL recognizes that gambling has brought unprecedented levels of employment to some tribes and economic benefit to some states. The federal Indian Gaming Regulatory Act (IGRA) represents a compromise of state-tribal interests because, as it acknowledges tribal rights to conduct gambling not prohibited in the states, it also acknowledges states' rights to regulate gambling. The negotiated compact is the mechanism by which states and tribes reach agreement regarding those rights.
Although IGRA has been the basis for disputes between states and tribes, one of its advantages has been that states have developed official paths for communication with Indian tribes. States enter into compacts with tribes hoping to balance the public interest in limiting pervasive gambling activity within state boundaries, with tribal rights under the Act.
Congress should hold hearings and discussions on the need to modify IGRA to clarify the Act and reduce litigation that has resulted from the current law. Legislation should be enacted as soon as possible to diminish conflict while recognizing and respecting state sovereignty. Congress should clarify the law, particularly regarding the scope of permitted gaming. In doing so, it should honor state constitutional and statutory distinctions between types of Class III gambling which are authorized within a state and types of gambling which are prohibited. However, in amending the existing law, Congress should respect compacts that have already been signed between states and tribes.
NCSL believes that the federal government should take a comprehensive and coordinated view of Native Americans' needs. States and tribes should try to achieve agreement through cooperation, and where necessary, compromise. Where possible, the federal government should direct resources to help states, local governments, and tribes address problems cooperatively. The leadership of the President is critical in efforts to coordinate activities of federal agencies that provide programs and services to tribes.
July 1998
Commerce and Communications neal.osten@ncsl.org
Energy and Transportation dawn.levy@ncsl.org
Human Services sheri.steisel@ncsl.org
Law and Justice william.waren@ncsl.org
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