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AGRICULTURAL BONDS |
S. 370. Would exempt agricultural bonds from state private activity bond volume caps to provide lower interest financing to beginning farmers and ranchers. |
NCSL supported S.370. Letters urging co-sponsorship and support written March 15 and March 22, 2001. No action in 2001-02. |
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BANKS AND INSURANCE |
The Gramm-Leach-Bliley Act provides for functional regulation of financial services, thus ensuring that insurance activities conducted by banks will be regulated by the several states and not federal banking regulators. However, the federal Office of the Comptroller of the Currency (OCC) intends to review state insurance laws and regulations to determine their applicability to national banks. The OCC is reviewing insurance laws in Rhode Island and has preempted such laws regulating bank sales of insurance in Massachusetts and West Virginia. |
NCSL consistently opposed the OCC's violation of the functional regulation provisions of the Gramm-Leach Bliley Financial Services Modernization Act. NCSL filed opinion letters with the OCC protesting its review of state insurance laws and regulations. NCSL supported state legal challenges to OCC's review of state insurance laws. |
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BIOTERRORISM |
P.L.107-188. The Public Health Security and Bioterrorism Response Act. Legislation to improve the ability of the U.S. to prevent, prepare for and respond to bioterrorism and other public health emergencies. Authorizes grants to state and local governments.
P.L. 107-38. Emergency FY2001 supplemental bill, H.R. 2888, made available $1.042 billion in state/local bio-terrorism grants distributed to states during 2002. |
NCSL supported provisions providing grants to state and local governments. NCSL commented on bio-terrorism legislation in an April 23, 2002 letter emphasizing flexibility, funding support and coordination with state plan coordination. HR 3448 signed into law.
NCSL supported the grant program as noted above. Signed into law. Funding for FY2003 unresolved for now due to unfinished FY2003 appropriations bills. |
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BUSINESS ACTIVITY TAXES |
H.R.2566. Places federal limits on state nexus standards for imposition of business activity taxes. This legislation originally paired business activity tax changes with authorization for states to collect sales and use taxes on remote electronic sales. The electronic commerce provisions were dropped during subcommittee markup. |
H.R.2566 passed out of a House Judiciary Subcommittee on July 16, 2002. No further action ensued. NCSL opposed because of its costs to states in lost revenues thereby violating federal unfunded mandate law and because any discussion of BAT reform at this time is premature until the states are prepared to seek congressional authority to allow for out of state sales tax collection. |
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CAMPAIGN FINANCE REFORM |
P.L. 107-276. Exempts state legislative candidates and their campaign committees from Section 527 reporting and filing requirements enacted in 2000. |
NCSL supported all of the many bills that addressed this issue in the 107th Congress. H.R. 5596 passed the House and Senate unanimously the week of October 14 and was signed into law. |
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CASH MANAGEMENT |
Finalized revisions to regulations implementing the 1990 Cash Improvement Management Act. Revisions would raise default thresholds, eliminate restrictions on allowable funding techniques and reduce state compliance burdens. |
NCSL supported the proposed revisions. NCSL raised concerns in a January 10, 2001 letter with disallowed fund transfers and matching requirements relating primarily to TANF, The Childcare and Development Block Grant and the Social Services Block Grant. |
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CELL PHONE USE |
H.R.1837, S.927. Would require states to enact laws to restrict or prohibit the use of cell phones while driving, or lose a portion of their federal highway funds. |
Over 40 states considered legislation with regard to cell phone use while driving. This is a decision that will be made by each state legislature and should not be influenced because of the threat of federal retaliation by cutting needed highway funds. NCSL opposed this mandate. No congressional action in 2002. |
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CHILD CARE |
H.R.4737 (House and Senate versions), S.2758. The House version of H.R.4737, welfare reform reauthorization, provides states with a $2 billion increase (split between the mandatory and discretionary programs) over five years. The Senate version of H.R. 4737 provides a $5.5 billion mandatory program increase over five years with no state match for the first three years. S.2758 increases discretionary funding by $2 billion in FY2003 and adds various set asides, state requirements and provider payment rate increases to the existing program. |
H.R.4737 passed the House. A modified Senate version emerged from committee but never received floor consideration. S.2758 reported from committee on September 4 but never received further consideration. NCSL supported program funding increases, particularly if work requirements were increased in TANF reauthorization. NCSL opposed S.2758 because of its mandates, set asides and other intrusive state requirements. |
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CONCENTRATED ANIMAL FEEDING OPERATIONS (CAFOs) |
An EPA final rule. Requires all large and selected other CAFOs (new definitions based on actual animals, not animal units) to apply for a permit, submit an annual report and develop a plan for handling manure and wastewater. The rule also eliminates current permitting exemptions (the 25 year/24-hour storm provision) and expands coverage for other types of animals (chickens raised with dry manure handling systems, immature swine and immature dairy cows).
H.R.1138 would negate the need for CAFO permits if a state implements a nutrient management program for animal feeding operations. |
Final rule signed on December 15, 2002. State regulatory agencies with authorized NPDES programs (45 states, one territory) are principally responsible for implementing and enforcing the rule. Changes must be made within one year of the date of publication in the Federal Register. IN cases where a state must amend or enact a stature, such revisions must take place within two years of the rule's promulgation. NCSL was primarily concerned with potentially preemptive language and unfunded mandates in the proposed rule.
NCSL supported H.R. 1138 as expressed in an April 25, 2001 letter. The legislation was never considered. |
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DEDUCTIBILITY |
H.R. 322; S.291. Would give taxpayers the option of deducting their state income or sales taxes (or state and local income or sales taxes in S. 291) on federal tax forms. |
NCSL supported both bills. Letters urging support and co-sponsorship were written in February and March 2001 to the full congress and the president. The conference agreement on H.Con.Res 83 (FY2002 budget resolution) urged consideration of this legislation. This legislation was never considered in the 107th Congress. |
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DRIVER'S LICENSES |
H.R.4633. Establishes federal standards for issuance and verification regarding state driver's licenses and identification cards. Mandates use of specific tamper-resistant security features. Requires linkage of state driver's license databases. S.3107 consolidates functions of commercial drivers license information system with the national driver register and permits each state to check all state driver's records before issuing licenses. Funds state upgrades. Establishes minimum federal standards for issuing licenses through consultation with states.
H.R.4043. Would render null and void the driver's licenses of all citizens from states that do not have statutes setting the expiration dates for licenses issued to non-citizens as the same as visa expiration dates. |
H.R.4633 and S.3107 were never considered in the 107th Congress. NCSL recommended state-driven improvements and changes to the driver's license issuance and verification system. NCSL and CSG issued a June, 2002 report laying out options to achieve these modifications. The administration's National Strategy for Homeland Security urged state-initiated driver's license reforms and greater uniformity. H.R.5005, legislation establishing a U.S. Department of Homeland Security, urged state-driven reforms and rejected any attempt to establish national identification cards.
Passed out of a Judiciary subcommittee in May, 2002, but received no further consideration. NCSL opposed H.R.4043 in a May 2, 2002 on grounds of coercive federalism, unfunded mandates and because of the state's lack of real-time availability of INS visa data.
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ECONOMIC STIMULUS AND RECOVERY |
P.L.107-147. The Job Creation and Worker Assistance Act of 2002. Provides various temporary tax cuts, including a 30 percent special depreciation bonus for equipment purchases and leasehold improvements made between 9/11/01 and 9/11/04 that impacts state revenue bases. Provides an additional 13 weeks of extended federal unemployment insurance benefits in qualifying states. Provides $8 billion in Reed Act funds to states for optional state use, including payment of regular unemployment compensation benefits, benefit payments to part-time workers and payment of state employment service administrative costs. Extends various expiring tax provisions. Authorizes the issuance of $400 million in 2002 and 2003 in state and local tax exempt bonds for school construction. |
NCSL circulated several letters to Congress and the Administration:
9/26/01: on aviation security.
10/5/01: on tax provisions, worker benefits, health benefits, infrastructure and homeland security.
10/25/01: on tax provisions.
10/31/01: on worker benefits.
11/13/01: on tax provisions, worker benefits, health benefits, infrastructure and homeland security. These letters spoke to H.R.622, H.R. 3090, H.R. 3529 and Senate versions of the same.
NCSL principally advocated for: (1) 13 additional weeks of federally-funded unemployment benefits (for those exhausting state benefits), (2) accelerated Reed Act payments (for state-determined unemployment purposes), (3) holding states harmless from FY2002 FMAP reductions, (4) an unconditional FMAP increase among states or grant for delivering health care coverage and services, (5) tax rebate for those not receiving one in August, 2001, (6) payroll tax holiday, (7) federal depreciation tax credit-rather than depreciation schedule changes and (8) avoidance of federal tax changes depleting state revenue bases. Of these, (1), (2) and (5) were accomplished.
Signed into law. |
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ELECTION REFORM |
P.L. 107-252. H.R. 3295 sets seven election conduct requirements, provides $3.9 billion in state grant funding for various purposes and is consistent with NCSL policy. It also establishes a commission of state (including NCSL) and local officials to make further recommendations. Justice Department involvement is limited to enforcement only. H.R. 3295 keeps election administration in state and local hands.
P.L.107-206. This FY2002 supplemental appropriations enactment includes $400 million for the first year of state election reform grants. The $400 million was part of a $5 billion component the president had the option to spend entirely or not at all. |
NCSL supported H.R.3295 in various letters and communications to both houses and conferees. NCSL policy states that election conduct should remain a state responsibility, urges state legislative representation on any federal study commission and opposes unfunded federal mandates regarding elections. NCSL supports a federal grant program for multiple election reform purposes that does not mandate specific requirements on states. NCSL testified before a House Committee on April 25, 2001. H.R. 3295 passed the House 362-63 in December 2001. S.565 passed the Senate unanimously in April, 2002. Conference committee agreement passed by both houses. Signed into law. Obtaining funding becomes the next challenge since FY2003 funding issues remain unresolved at this point.
NCSL insisted on and supported inclusion of start-up state election reform grant funding. Signed into law. The President exercised his option not to spend the $5 billion optional emergency package, including election reform grants. |
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ENERGY
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House and Senate versions of H.R. 4. Both versions include comprehensive national energy policy initiatives and changes and associated tax provisions respectively. Both propose to increase U.S. energy independence. Going into conference, the House version places greater emphasis on increased domestic production of fossil fuels. The Senate version places greater emphasis on energy efficiency and reductions in demand for energy. Both bills claim to be fairly balanced approaches. The administration produced a national energy plan in mid-May, 2001 from its task force chaired by Vice President Cheney. The plan contains 103 recommendations, most of which are in the House version of H.R.4. Both versions address tax credits, conservation, efficiency, production, CAFÉ standards, research and development, ANWR and renewable energy sources, with significant differences over CAFÉ standards, ANWR, ethanol, pipeline safety, and renewables. Electric industry restructuring is addressed only in the Senate's version of H.R.4 |
NCSL supported a bipartisan approach to energy priorities that would increase domestic production of fossil fuels and increase federal support for renewable energy and energy efficient technologies through substantive and appropriations/tax measures. NCSL opposed any preemption of state eminent domain authority. The Senate version of H.R.4 is closer to NCSL policy on CAFÉ standards and appliance efficiency and electric industry restructuring NCSL commented in writing on the President's plan on May 30 and July 3.
H.R. 4 has both houses, but died after months of conferece committee meetings and agreements. Finally, the House and Senate agreed to extrapolate pipeline safety provisions from H.R. 4 and pass them as stand-alone legislation. |
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FAITH-BASED LEGISLATION |
H.R. 7 (House version). Provides phased-in deductions for charitable contributions for non-itemizing taxpayers. Allows religious organizations to get federal funds in eight program areas in the form of vouchers and litigate state and local governments when they do not get these funds. Preempts all state and local laws prohibiting employment discrimination.
H.R.7 (Senate version). Establishes a charitable contribution deduction for non-itemizers for two years. Allows rollover of IRAs for charitable purposes for select taxpayers. Provides a 2-year boost in Social Services Block Grant authorized funding. Authorizes individual development accounts to promote self-sufficiency. Provides states with technical assistance funding to support administration of the legislation. Does not preempt state and local employment discrimination laws and contains no unfunded mandates. Includes Section 527 repealer (See Campaign Finance Reform) |
NCSL supported the Senate version of H.R.7 and opposed its House counterpart. H.R. 7 passed the House on July 19, 2001. Charitable choice provisions exist in TANF law, but the House version of H.R. 7 does not track that statute. NCSL and five other state and local organizations wrote September 27, 2001 on several preemptive, program structure and legal concerns. NCSL met with the administration and key Senate sponsors and helped craft a completely different, non-preemptive bill that is now the Senate version of H.R.7. NCSL sent a letter of support for the legislation on September 12. The Senate version passed out of committee but died after several attempts to get a unanimous consent agreement to consider the legislation. A December 12, 2002 executive order facilitates faith-based organizational application and competition for federal grant assistance. |
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FEDERALISM |
President Bush established a working group on federalism on February 26 to review waiver processes, grant program flexibility and the current executive order on federalism. |
NCSL responded to the president's action with a February 27, 2001 letter laying out recommendations for a federalism executive order and calling for intergovernmental consultations on regulatory and other related issues. A second letter on waivers, block grants, preemption and other issues was sent July 9. An additional communication from all state and local groups, including NCSL was sent on July 27, 2001. The working group convened on April 30, 2001. Further discussions took place on July 20, but no further action ensued.
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FOOD STAMPS |
P.L.107-171. Comprehensive reauthorization of the Freedom to Farm Act that provides counter-cyclical protection to farmers, retains marketing loan rates, creates a marketing assistance loan program and boosts soil, wildlife and water conservation programs. It includes state-friendly changes to food stamps quality control systems and provides state-friendly program simplifications. The new law restores Food Stamp eligibility for legal immigrants. |
NCSL actively sought Food Stamps program quality control reform and simplification provisions and the restoration of Food Stamps benefits for legal immigrants included in P.L.107-171. The quality control changes de-emphasize costly state sanctions and promote outcomes over process. The simplification changes remove conflicts between TANF and Food Stamps programs. Restoration of legal immigrant Food Stamps benefits provides states with fiscal relief for costs that had been shifted to states since 1996. NCSL expressed its position in numerous letters and action alerts and through active lobbying efforts with congress and the administration. Signed into law. |
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HIGH SPEED RAIL/AMTRAK |
S. 250, S.1528, S.1530,H.R.2329,H.R.2950, S.1991. S.250 and H.R.2329 would authorize Amtrak to sell $12 billion in rail bonds over 10 years to develop high speed rail corridors. Would provide tax credits to bondholders in lieu of interest payments. States would have a 20% match requirement. 10% of the funds would be available for non-high speed rail purposes. H.R.2950 and S.1530 allow states to issue tax-exempt bonds for high speed rail outside the private activity bond volume cap and provide loans and direct loan guarantees for rehabilitating and improving freight and passenger railroads. S.1528 provides funding to improve passenger rail security. S.1991 provides $7.5 billion in state grants for development of high speed rail corridors, provides enhanced funding and accountability for Amtrak operations and capital improvements. A recent White House long-term plan for Amtrak calls for reduction in Amtrak operating subsidies, greater accountability, enhanced competition, a state-funded intercity passenger rail system and a public partnership to manage the Northeast Corridor.
P.L.107-206. This FY2002 supplemental appropriations measure contains $207 million to allow Amtrak to continue operations through September, 2002.
S. 2808. FY2003 transportation appropriations bill. Contains $1.2 billion for Amtrak, the amount sought by its governing board. The White House has budgeted for $521 million. |
NCSL generally supported legislation capitalizing the development of high-speed rail. S.1991 emerged from committee, but all others lingered. NCSL submitted a statement for the record to the Senate Commerce Committee on May 22, 2001. NCSL reiterated its support for federal action on passenger rail this year in an October 17, 2001 letter and in various other communications since. No final action in the 107th Congress.
Signed into law.
Passed unanimously out of Senate Appropriations Committee. Pending further action as the FY2003 appropriations process remains unfinished at this writing. |
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HIGHWAY/MASS TRANSIT FUNDING |
P.L.107-206. This FY2002 supplemental appropriations measure includes language negating statutorily-induced reductions in FY2003 highway funding due to the affect of revenue aligned budget authority (RABA) calculations. It sets FY2003 funding at $27.7 billion, with the full amount protected by budget firewalls and funds distributed to states according to TEA-21 formulas., the TEA-21 authorized amount. RABA would have dropped funding to $23.3. The FY2002 state highway obligation authority was $31.8 billion.
S. 2808, H.R.5559. The FY2003 transportation appropriations bill. S.2808 sets the highway obligation ceiling at $31.8 billion (same as FY2002), while H.R.5559 comes in at $27.7 billion. |
In numerous communications and related lobbying efforts, NCSL supported: (1) negating the RABA reduction; (2) setting the FY2003 at no less that $27. 7 billion and as close to $31.8 billion as possible; (3) ensuring that all FY2003 funding is protected by budgetary firewalls; (4) ensuring that all FY2003 state disbursements are made in accordance with TEA-21 formulas and (5) developing a fix to avoid wide future funding swings caused by RABA. Signed into law on August 2, 2002.
Both bills passed out of appropriations committees in their respective houses. Like other funding issues, this appropriations matter remains unresolved at this point. NCSL supported the Senate's FY2003 highway obligation ceiling. The 5th Continuing Resolution for FY2003 sets $31.8 billion as the obligation base for continuing appropriations, but uses $27.7 billion as the outlay (spend out) base - bridging the political gap that persists. |
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HOMELAND SECURITY DEPARTMENT |
P.L. 107-296. Consolidates several federal agencies under a Homeland Security Departmental umbrella. Issues for states addressed in the new law incude grantsmanship within a new department, contractor liability for security services and goods sold to state and local governments, integration of and accessibility to law enforcement data and access to security information by state legislators and other state officials. |
NCSL's Task Force on Protecting Democracy sent federal recommendations in May, 2002. The creation of the Homeland Security Department incorporates a number of those recommendations including:
(1) creation of an Office for State and Local Government Coordination; (2) provision for state and local government support and technical assistance in response to cybersecurity threats; (3) authorization of research, development, testing and evaluation of law enforcement technologies; and (4) establishment of a system for appropriate federal, state and local personnel to share information and to have that information remain exempt/protected under the federal FOIA. Signed into law. |
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HOMELAND SECURITY FUNDING-FEMA |
S. 2797. Provides a significant increase in funding for emergency management and planning to include $75 million for state and local emergency planning grants; $180 million for grants to state emergency operations centers; $15 million to help initiate mutual aid agreements amount state and local governments and $1.1 billion for security clearances for state and local emergency management personnel. H.R.5605 provides $367 million for emergency planning and assistance; $450 million for firefighter grants; and $250 million for a new competitive pre-disaster mitigation program. |
S. 2797 and H.R. 5605 reported from respective appropriations committees in their houses of origin. This issue remains unresolved at this point, like other appropriations matters. NCSL and other state/local groups wrote several times in favor of President's recommended $3.5 billion level of funding for first responder grants. |
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HOMELAND SECURITY FUNDING - JUSTICE DEPT. |
S. 2778. Provides a significant increase in funding for domestic preparedness. This includes $60 million for state strategic planning; $1.128 billion for a equipment grant program of which $1.047 billion will be formula-based grants to states based on their approved 3-year Statewide Domestic Preparedness Strategies; $272 million for ODP to assist state and local jurisdictions in planning and conducting weapons of mass destruction exercise. |
S.2778 reported out of committee. The House has yet to introduce a similar bill. The issue remains unresolved, like most appropriations matters, at this writing. |
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HOUSING BONDS |
H.R. 951/S. 677. The Housing Bond and Credit Modernization and Fairness Act. Would expand state flexibility in the use of mortgage revenue bonds and broaden use of the bonds and the low-income housing credit in rural areas. |
NCSL supported expanded state flexibility. Existing rules lead to mortgage revenue bonds taking up a disproportionate share of the private activity bond volume cap NCSL signed onto a letter in September urging inclusion of S. 677 in a small business tax bill; that markup was postponed. No final action in 107th Congress. |
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IMMIGRATION - BENEFIT RESTORATION
INSURANCE: REGULATION |
S.582, H.R.1143, S.2646. Would permit states to cover legal immigrant children and pregnant women under Medicaid and SCHIP.
S.2646. Would permit states to provide TANF benefits to legal immigrants.
See Farm Bill for restoration of legal immigrant Food Stamps benefits.
Legislation introduced in both the House and Senate would create a bifurcated system of state and federal regulation that would companies to bypass state insurance and consumer protection laws. Congress also may consider legislation to remove all regulatory authority for insurance from the states and establish a new federal agency to regulate the business of insurance. |
NCSL supported health benefit and TANF options since they potentially relieve state and local governments of costs that the federal government does not currently cover. S.583 and HR 2142 addressed a cost shift to states. Neither bill moved out of committee in the house of origin. Letters of support sent July 2, 2001.
NCSL is an ardent supporter of S.2646 and has written numerous letters of support and met continuously with key Senate sponsors of this general TANF reauthorization legislation. S.2646 passed out of the Senate Finance Committee but received no further consideration.
NCSL opposed any federal effort to preempt state authority over regulation of the business of insurance. Either proposal would harm insurance consumers, result in the loss of over $10 billion in revenues states now receive from the insurance industry in taxes and jeopardize the present state guaranty system. NCSL has created a special Task Force to review the current system of insurance regulation. Three hearings were held in the spring and summer of 2002 but no further action ensured. |
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INTERNET PRIVACY |
H.R. 237 would prohibit web site operators from sharing personal information with third parties unless the consumer has a clear opportunity to opt-out of having the information shared. H.R. 89, H.R. 91, and H.R. 347 would direct the Federal Trade Commission to take further steps to establish rules and enforcement procedures for commercial information and sharing of information gathered through the Internet. H.R. 583 would establish a federal commission to study privacy and the Internet. H.R.4678 would require that privacy standards be identical for offline as well as online transactions. It would preempt all state privacy laws with regard to offline transactions, except those specifically allowed by congress. States would not be permitted to enforce federal privacy laws. |
NCSL's Internet and Electronic Commerce Policy Statement "calls upon the Congress to enact federal Internet privacy legislation that ensures the security of American's personal information with the least amount of government regulation as possible." NCSL would oppose federal legislation that would limit or prohibit state attorneys general from enforcing federal privacy guidelines. NCSL opposed federal legislation such as H.R.4678 because it wuld preempt state privacy laws for offline activities or transactions. None of these bills were acted upon in the 107th Congress. |
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MANAGED CARE REFORM |
S. 1052, H.R.2563. Would guarantee to patients the right to internal and external appeals, access to specialists, a "gag" clause prohibition in health care contracts and access to emergency care. Would apply patient protections to all of the privately insured. States must show "substantial compliance" to obtain certification that their laws are comparable to federal protections. S.1052 and H.R. 2563 have similar but far different liability caps and damages and liability severability provisions. Both bills differ on grounds for bringing suits against health plans. Both bills shield from liability employers not directly involved in coverage decisions. H.R.2563 preempts state independent review requirements and many state tort, liability and medical malpractice laws. Both bills would apply the federal provisions to state and local government employee plans. The Senate bill applies its provisions to Medicaid, Medicare and the Federal Employees Health Benefit Plan. H.R. 2563 expands association health plans and broadens access to medical savings accounts. |
NCSL testified on March 15, 2001 supporting efforts to preserve state laws providing patient protections substantially equivalent to federal standards. Provisions allowing states to show "substantial equivalency" in S. 1052 and House bills. NCSL also called for adequate transition time for state implementation and a clear procedure where a state opts for federal enforcement. A letter spelling out NCSL positions on preserving state patient protections was sent June 21, 2001 with a letter addressing H.R.2563 sent on August 2, 2001. H.R. 2563 is replete with preemption and unfunded mandates. S. 1052 passed the Senate on June 30, 2001 and H.R. 2563 passed on August 2, 2001. No further action was taken in the 107th Congress.
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MEDICAID - TEMPORARY FEDERAL MEDICAL ASSISTANCE PERCENTAGE (FMAP) RATE INCREASE |
S.812. Underlying legislation facilitates the entry of generic drugs into the marketplace. S.812 provides a 1.35% increase in the federal Medicaid match for the second half of FY2002 and all of FY2003. It holds harmless those states experiencing an FMAP decrease in FY2002 and/or 2003. S.812 does contain a maintenance of effort qualifier - meaning any state that restricted Medicaid eligibility after January 1, 2002 would not qualify for the federal match increase. The match increase would provide states with $6 billion in additional federal Medicaid funds.
See Economic Stimulus for additional related information. |
NCSL supported a temporary FMAP increase and a hold harmless provision for states experiencing FMAP reductions in FY2002 and 2003. NCSL, however, has urged the exclusion of any maintenance of effort provision as a condition for qualifying for the temporary FMAP increase. S.812 passed the Senate on August 1. Companion House generic drug legislation was buried in committee. Attempts to include a temporary FMAP increase in House economic stimulus bills failed. The administration opposed the temporary FMAP increase. A motion to discharge House committees of S.812 failed and no further action ensued. |
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MEDICAID - TRANSITIONAL MEDICAL ASSISTANCE |
H.R.4737. The House version of H.R.4737 extends TMA for one year. Offsets costs of this extension by reducing state Medicaid administrative funds. The Senate version of H.R.4737 reauthorizes TMA for 5 years. Does not require states to pay for this extension through a Medicaid administrative funds reduction. |
H.R. 4737 passed the House of Representatives. The Senate version of H.R. 4737 passed out of committee but never got floor consideration. NCSL supported TMA extension as part of TANF reauthorization without states having to pay for such extension. |
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MEDICARE - PRESCRIPTION DRUG COVERAGE |
H.R.4954, S.2625, S.2729. The president proposed a temporary block grant to states in 2001 that garnered little congressional support. H.R.4954 adds a $320 billion prescription drug benefit to Medicare through private insurers. The Senate took up four distinct versions of a prescription drug benefit in July, 2002, with all of them failing to garner sufficient votes to overcome the Senate's procedural obstacles. |
NCSL supported the inclusion of a prescription drug benefit in the Medicare program, but insists that the program not shift costs from Medicare to Medicaid. NCSL has conducted briefings for congressional staff on state pharmacy assistance programs. H.R.4954 passed the House. The Senate debated various versions on the Senate floor in July. No further action ensued in the 107th Congress. |
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NATIONAL HEALTH SERVICES CORPS |
S. 1281, H.R.3450. Would reauthorize this program. It has continued to get annual appropriations although not reauthorized. The president has expressed an interest in making substantive changes to the program through the reauthorization process. |
NCSL supports reauthorization of the program and testified in that regard on August 1 before a House subcommittee. S.1281 passed out of committee on August 2, 2001. H.R.3450 introduced in mid-December, 2001. |
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NEW SOURCE REVIEW |
In November, EPA announced that it had finalized 1996-proposed rules to reform the NSR program regarding pollution control and prevention projects, plant-wide applicability limits, clean unit provisions and calculating emissions increases and establishing emissions baseline. At the same time EPA proposed a rule for new NSR reforms to address the definition of routine maintenance and repair and replacement.
S. 556, H.R. 5266/S 2815. Bills to control emissions from power plants. An exemption from NSR is a point of contention. |
NCSL was concerned that the NSR reforms would weaken the ability of states to enact or benefit from reduced emission for new or modified major emitting facilities, as expressed in a letter to EPA August 2002 and further clarified in a October 3, 2002 letter to EPA.
S. 556 passed out of committee but no further action ensued. HR 5266/S. 2815 was the administration's legislative language for its Clear Skies Initiative. |
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PAYDAY LENDING |
A number of states have enacted legislation restricting or even prohibiting payday lending. Some payday lenders charge interest as high as 300 percent or more for consumers who can least afford to pay such rates. To avoid state regulation, some payday lenders have affiliated with national banks, seeking the protection of the Office of the Comptroller of the Currency (OCC). H.R. 1055 would prohibit payday lenders from affiliating with any bank insured by the FDIC and H.R. 1319 would prohibit payday lending unless regulated by the state. |
NCSL raised concerns about the OCC's protection of national banks' involvement in payday lending and preempting state laws that regulate payday lending activities. While NCSL supported the intention of the federal legislation, NCSL worked to ensure that such legislation did not mandate certain state action or preempt existing state consumer protection laws. No action in 107th Congress. |
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PENSION SECURITY |
H.R.3762, S.1992, S.1971. All three bills amend ERISA and the federal tax code to add protections to retirement plan participants from excessive investment in employer stock. All promote retirement investment advice and diversification of participant assets. H.R.3762 applies to state government pension plans but not to federal plans. H.R. 3762 levies federal excise taxes on state plans not providing quarterly notices regarding diversification and benefit payments. |
H.R.3762 passed the House. S.1971 and S.1992 passed out of committee. No further action ensued. NCSL opposed the redundant and costly application of provisions of H.R.3762 to state/local government pension plans that are protected under state law. NCSL opposed application of compliance taxes and penalties on state government plans. NCSL succeeded in striking all state-related provisions from Senate legislation. |
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PREDATORY LENDING |
Predatory lending refers to an abusive practice of making loans to collect the collateral or assess punitive fees rather than lending to collect principal plus interest. States have acted increasingly to restrict predatory lending practices by both state and national banks. Federal law explicitly subjects national banks to state consumer protection and fair lending laws. |
NCSL raised concerns about possible action by the OCC to preempt state predatory lending laws. NCSL also opposed any federal legislation that would preempt state authority to address abusive and deceptive lending practices or undermine the traditional state and federal shared-jurisdiction over financial institutions. No action in the 107th Congress. |
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PRIVACY/SOCIAL SECURITY NUMBERS |
H.R.2036, S.3100. Would restrict state display and sale of social security numbers. |
NCSL submitted a statement for the record to a House Ways and Means subcommittee on May 22, 2001. NCSL raised numerous questions about existing federal mandates for use of social security numbers, potential for preempting stringent state privacy standards, possibilities for disrupting anti-fraud practices, liability matters and costs to adopt new identification systems. S.3100 was readied for Senate floor action but never considered. |
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SOCIAL SERVICES BLOCK GRANT |
H.R.7, S.2648, S.2766. The Senate version of H.R. 7 (faith-based legislation) increases authorized SSBG funding for FY2003 to $1.975 billion and for FY2004 to $2.8 billion. S. 2648 increases authorized SSBG spending to $1.95 billion. SSBG is level funded ($1.7 billion) in S.2766, FY2003 appropriations for labor, health, human services and education. |
On numerous occasions, NCSL communicated its long-held support for funding SSBG at the level ($2.8 billion)agreed to by all parties during passage of federal welfare reform legislation . No final action on any of these bills. |
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SPECIAL EDUCATION - REAUTHORIZATION OF THE INDIVIDUALS WITH DISABILITIES ACT - IDEA FUNDING |
No bills. Hearings and legislation will likely focus on subscription and financing issues.
S.2766, H.R.5320. FY2003 appropriations bill for health, human services, education and labor. Both increase funding for IDEA by $1 billion, the same amount as recommended by the President. |
NCSL strongly advocated for making funding for Part B expenditures of IDEA mandatory - and for compelling the federal government to fulfill its promise to cover 40% of all part B expenditures (currently around 17%). This remains one of the most egregious unfunded federal mandates with which states must cope.
Both bills passed out of their respective house's appropriations committee, but remain unresolved like most other FY2003 appropriations measures at this writing. |
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STATE CHILDREN'S HEALTH INSURANCE PROGRAM (SCHIP) - EXTENSION OF UNSPENT FUNDS |
Unless Congress extends availability of funds, approximately $3 billion in unobligated 2000 and retained/redistributed 1998-1999 SCHIP funds will lapse. S.2860 extends availability of these funds, but also establishes a new reserve fund stream for future unused funds. The President's FY2003 budget supports reinstatement of the full amount. S.3018, medicare giveback legislation, reinstates lapsed FY98/99 funds and redistributes FY2000 funds. |
NCSL supported extension of unspent prior year SCHIP funds. This issue may be resolved in FY2003 labor, health, human services and education appropriations bill. Despite various legislative attempts, this issue remained unresolved when Congress adjourned. |
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STATE CHILDREN'S HEALTH INSURANCE PROGRAM (SCHIP) - PREGNANT WOMEN, LEGAL IMMIGRANTS |
H.R.4610, S.724. Allow states to provide optional SCHIP coverage of pregnancy-related assistance for targeted low-income uninsured pregnant women. |
S.724 reported out of Senate Finance Committee, but no further action on it or H.R.4610. NCSL supported optional SCHIP services to pregnant women over age 19. Letter of support sent April, 2002. Proposed HHS rule would cover pregnant women under SCHIP by redefining targeted low income child to include unborn children. NCSL communications supported statutory changes on SCHIP issues to avoid ambiguities. |
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TAX-EXEMPT FINANCING |
The Department of the Treasury is conducting a review of municipal finance laws. Numerous organizations have provided suggestions to strengthen the bond market. |
NCSL generally supported broader state flexibility in public finance. NCSL signed onto a letter in July, 2002 urging 1) relaxation of federal arbitrage rules; 2) easing of restrictions on small issuer financing; 3) expanded opportunities to advance refund; and 4) relaxation of rules governing private activity bonds. There was no action in the 107th Congress. |
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TELECOMMUNICATIONS COMPETITION AND ADVANCED SERVICES
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) REAUTHORIZATION |
It has been five years since the enactment of the Telecommunications Act of 1996 and many are dissatisfied with the pace of market competition and the rollout of advanced telecommunications services to all areas of the country. Congressional frustration has resulted in the introduction of several bills: H.R. 1542, the Internet Freedom and Broadband Deployment Act, H.R. 1667, the Broadband Competition and Incentives Act, S. 1364, the Telecommunications Enforcement Act, S.2430, Broadband Regulatory Parity Act of 2002, S.2448, Broadband Deployment Act of 2002 and S.2863, Consumer Broadband Deregulation Act.
H.R.4737, House and Senate version. Both bills reauthorize the TANF block grant. H.R.4737 (House version) increases worker participation rates and mandatory work hours, nudges child care funding slightly above current levels, maintains ban on TANF, Medicaid and disability benefits for legal immigrants and maintains five year time limits. It establishes a $100 million competitive grant program promoting marriage, reauthorizes the TANF supplemental grant program and maintains transitional Medicaid by cutting state Medicaid cost allocations. The Senate version of H.R.4737 maintains current work hours, increases work participation rates, provides an employment credit to states for placement of individuals in jobs, and broadens definitions of work. It gives states the option of providing Medicaid, TANF and disability benefits to legal immigrants. It reauthorizes and expands TANF supplemental grant program. It reauthorizes transitional Medicaid program. It increases childcare funding substantially. |
NCSL shares the frustration over the lack of competition in certain telecommunications markets and the slowness in providing access to advanced telecommunications services to all Americans. NCSL has called upon Congress and the Federal Communications Commission to review the current definitions of telecommunications services to ensure government regulation is based on an even playing field between competitors of similar services delivered through different mediums. NCSL opposed any federal legislation intended to encourage competition or deployment of advanced telecommunications services, that does not maintain the rights and responsibilities of states to regulate intrastate telecommunications, ensure fair and open competition, remove obsolete regulatory barriers, preserve and advance universal services, and allow for effective participation of all parties on a non-discriminatory basis. No final action on any of these bills in the 107th Congress.
In a November 30, 2001 letter and in all subsequent communications, testimony and lobbying, NCSL laid out ten reauthorization priorities: (1) maintain current TANF funding and reauthorize TANF in 2002; (2) maintain and expand program flexibility; (3) restore TANF supplemental grants; (4) reaffirm the Brown amendment - state legislative TANF appropriations authority; (5) expand use of carryover funds; (6) establish a TANF contingency fund for economic downturns; (7) boost the Child Care and Development Block Grant without earmarks; (8) fund the Social Services Block Grant at the l996 authorized level - $2.8 billion; (9) enact Food Stamps quality control reforms and (10) restore Food Stamps benefits to legal immigrants to eliminate cost shift to states. H.R. 4737 passed the House. The Senate version of H.R.4737 was reported out of committee but did not receive floor consideration. NCSL supported the Senate version because it is a far more state-friendly bill than its House counterpart. NCSL opposed the transitional Medicaid provisions in the House version of H.R.4737 because they reduced state Medicaid administrative funds to pay for an extension. On September 30, NCSL offered a 36-point draft proposal for a three-year extension of TANF that reinvigorated negotiations to move legislation. |
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TERRORISM INSURANCE |
P.L. 107-297. Establishes a three-year federal backstop for terrorism insurance. In the event of a future domestic terrorist attack, the plan would have the federal government cover 90 percent of losses up to $100 billion after each participating insurer pays a deductible. Deductibles are based on a percentage of companies" direct premiums written from the previous calendar year, with the percentage rising from seven percent in the first year to 10 percent the second year to 15 percent in the third and final year. |
NCSL supported a temporary, limited, backstop terrorism insurance program that would not undermine state insurance regulation. Signed into law. |
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TRADE AGREEMENTS |
P.L.107-210. Renews presidential authority to negotiate trade agreements that are generally not subject to Senate amendment - "fast track" trade authority. Expands trade adjustment assistance for displaced workers, renews the generalized system of duty-free benefit preferences and reauthorizes the Andean Trade Preference Act. The new law contains a provision stating that foreign investors do not have greater substantive rights than U.S. investors in tribunals assigned to settle investor-state trade disputes.
Free Trade Agreement of the Americas and Singapore Free Trade Agreement. The U.S. Trade Representative is seeking public comments, through Federal Register notices of July 31 and August 14 respectively, on these pending trade agreements. |
NCSL supported reauthorization of trade promotion authority in numerous communications to Congress and the administration on H.R.3005. NCSL sought explicit language affirming that foreign investors should receive no greater rights than U.S. citizens based on the U.S. Constitution and U. S. legal principles and that state and local public purpose laws should have safe harbor protection. This language was defeated 42-57 on the Senate floor. Signed into law.
NCSL commented on both pending trade agreements in September, 2000 urging the Trade Representative to protect American federalism and not afford foreign investors greater rights than those afforded American investors and property owners. The comments also urged exclusion of any provision remotely similar to NAFTA's investment chapter. |
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TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY - TEA-21 |
No bills. Congress explored the successes and failures of TEA-21 during its 2002 session in preparation for reauthorization of TEA-21 in 2003. Numerous congressional hearings were conducted. |
NCSL has been a solid supporter of TEA-21 and has urged: (1) maintaining guaranteed trust fund appropriations for highways and mass transit; (2) protection of all excess trust fund revenues (known as revenue adjusted budget authority-RABA) for distribution to states; (3) maintaining and expanding program flexibility; (4) avoidance of any new unrelated grant conditions or redirects of trust fund monies; (5) allowing states to use trust funds for passenger and high speed rail; and (6) expanding authority to pursue innovative financing methods, such as state infrastructure banks. NCSL met with Transportation Secretary Mineta in late September, 2002. |
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UNFUNDED MANDATE REFORM ACT |
No legislation yet. |
NCSL supported revisions to Title II (regulatory reviews) of UMRA, lifting of exemptions on legislative analyses (Title I) and continued funding of CBO's fiscal mandate analysis section. NCSL testified at House subcommittee hearings on UMRA on May 24, 2001. No other action in the 107th Congress. |
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WATER REVOLVING FUNDS |
S.2797, H.R.5605. S.2797 FY2003 appropriations measure for VA,HUD and independent agencies increases the state clean water revolving fund by $100 million (to $1.45 billion) and increases the state drinking water revolving fund by $25 million (to $875 million).H.R.5605 slightly reduces clean water SRF funding and keeps drinking water at the FY2002 level. |
S.2797 reported from Senate Appropriations Committee and H.R.5605 reported from House subcommittee. The issues remains unresolved, like most appropriations matters, at this writing. NCSL supported no less than level funding for these two SRFs because of continuing satisfaction among the states with them. |
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WATER SECURITY |
HR 3178: Establishes a grant program to support research projects on critical infrastructure protection for water supply systems. States are eligible to apply for these funds.
S 1593: Establishes a grant program to support research projects at public and private non-profit research institutions on critical infrastructure protection for water supply systems.
S 1608: Establishes a program to provide grants to states to meet immediate security needs of drinking water and wastewater facilities. |
NCSL did not formally take a position on these bills.
HR 3178 was on the Senate calendar. S 1593 passed out of committee. S 1608 passed the Senate. No further action ensued. |
