Standing Committee on Communications, Financial Services and Interstate Commerce

Committee Workbook: 2012 Legislative Summit


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Legislative Summit
August 6 – 9, 2012
Chicago, Illinois
 
Standing Committee on Communications, Financial Services and Interstate Commerce
 
Table of Contents
Committee Agenda

 

Committee Description
Committee Officers and NCSL Staff Contacts
Committee Roster
Rules and Bylaws
Policy Directives for Consideration

Online Agenda

Directives for Consideration
Link to all NCSL Polices for Consideration

  • Banking & Financial Services

  • Corporate Formations

  • Cradle to Grave Electronics Management

  • Insurance

  • Internet & Electronic Commerce

  • Remote Commerce

 

Resolutions for Consideration

  • State Sovereignty in Online Gaming

  • Supports and Urges Enactment of the Marketplace Fairness Act

  • Supports Intellectual Property (IP) Rights and Protections to Promote Productivity, Competitiveness, Jobs, and Public Health

  • Opposes Federal Contactless Technology Mandates For State Issued Identification Documents

  • Support of State Public Affairs Networks (Memorial Resolution)


National Conference of State Legislatures 2011 - 2012

Standing Committee on Communications, Financial Services & Interstate Commerce

 
The NCSL Standing Committee on Communications, Financial Services and Interstate Commerce has jurisdiction over state-federal relations with regard to telecommunications, electronic commerce, banking and financial services, interstate commerce and taxation of electronic transactions, telecommunications and interstate business activity taxes.  Upholding the sovereignty of the states to regulate intrastate telecommunications and oversee the deregulation and opening of local exchange markets to competition as well as advocate for regulatory parity of similar services delivered through different mediums are major state-federal regulatory and legislative concerns.  The Committee also has responsibility to work with Congress and the Administration to avoid over regulation of the Internet and electronic commerce that could cause much harm to our nation’s own ability to compete globally while ensuring enhanced marketplace competition, increased consumer choice and security of personal information of consumers.  The Communications, Financial Services and Interstate Commerce Committee will assume the jurisdiction over the following issues: regulation of financial services -- including banking, insurance and securities -- as well as community reinvestment, consumer protection, corporate governance, credit cards, credit unions, financial privacy, and natural disaster insurance. Its members have a keen interest in upholding state authority to regulate financial services and to protect financial consumers. Specific issues include supporting states' role as the sole regulator of the business of insurance, preserving the dual banking system, and opposing efforts to weaken state authority to protect individual investors and impose remedies to correct fraudulent activity by securities analysts.
 
Issues within the Committee’s Jurisdiction:

Banks & Banking
Broadband Technologies
Business Activity Taxes
Cable TV Regulation
Community Reinvestment Act
Computer and Information Systems
Consumer Affairs
Content Regulation
Credit Cards & Bureaus
Credit Unions
Dual Banking System
Dual Chartering of Insurance
Electronic Commerce
Electronic Commerce Sales Tax
Electronic Government
Electronic Records and Information
Financial Institutions
Financial Privacy
Information technology and policy
Insurance
Insurance Fraud
Insurance Redlining
Insurance Solvency/State Guaranty Funds
Internet Gaming
Internet and Electronic Privacy
Internet Regulation
Internet Tax
Interstate Commerce
Natural Disaster Insurance
Securities
Spectrum Allocation
State Internet Networks
State Telecommunications Networks
Telecommunications
Telecommunications Taxes
Wireless Communications


National Conference of State Legislatures
Communications, Financial Services and Interstate Commerce Committee
2011-2012 Officer Directory
 

Co-Chairs
Sen. Carol Fukunaga, Hawaii
State Capitol, Room 216
415 South Beretania Street
Honolulu, HI 96813
Phone: (808) 586-6890
Fax: (808) 586-6899
senfukunaga@Capitol.hawaii.gov

Rep. Greg Wren, Alabama
Alabama State House, Room 517-B
11 South Union Street
Montgomery, AL 36130
Phone:  (334) 242-7764
Fax: (334) 242-4015
repgregwren@yahoo.com

Staff Co-Chairs
Duncan Goss, Vermont
Vermont General Assembly
115 State St. State House
Montpellier, VT 05633-5301
Phone:  (802) 828-2231
Fax:  (802) 828-2424
dgoss@leg.state.vt.us

Patricia Murdo, Montana
Montana Legislature
PO Box 201706
Helena, MT  59620-1706 
Phone: (406) 444-3594 
Fax: (406) 444-3036 
pmurdo@mt.gov
 
Vice Chairs
Sen. Thomas C. Alexander, South Carolina
State House
PO Box 142
Columbia, SC 29202-0142
Phone: (803) 212-6220
Fax: (803) 212-6299
thomasalexander@scsenate.gov
 
Rep. Ross Hunter, Washington
John L O’Brien Building
P.O. Box 40600
Olympia, WA 98504-0600
Phone: (360) 786-7936
Fax: (360) 786-1066
Hunter.ross@leg.wa.gov
 
Del. Joe T. May, Virginia
General Assembly Building
PO Box 406
Richmond, VA 23218
Phone: (804) 698-1033
Fax: (804) 698-6733
DelJMay@house.virginia.gov
 
Rep. Wayne Harper, Utah
State Capitol, Suite 350
350 North State Street
Salt Lake City, UT 84114
Phone: (801) 538-1029
Fax: (801) 326-1544
wharper@utah.gov
 
Del. Susan C. Lee, Maryland
Lowe House Office Building, Room 414
6 Bladen Street
Annapolis, MD 21401-1912
Phone: (410) 841-3649
Fax: (410) 841-3424
susan.lee@house.state.md.us
 
Rep. Chris Perone, Connecticut
Legislative Office Building, Room 4023
300 Capitol Avenue
Hartford, CT 06106-1591
Phone: (860) 240-8585
Fax: (860) 240-0067
chris.perone@cga.ct.gov

Staff Vice Chairs 

Karen Cochrane-Brown
North Carolina General Assembly
300 N. Salisbury St. – 545 LOB
Raleigh, NC 27603
Phone: (919) 733-2578
Fax: (919) 733-5460
karenc@ncleg.net

Gary Schaefer, Louisiana
Louisiana Legislature
PO Box 94183
Baton Rouge, LA 70804-9183
Phone: (225) 342-1001
Fax: (225) 342-9736
schaefeg@legis.la.gov
 
Immediate Past Chair
Sen. Delores G. Kelley, Maryland
James Senate Office Building, Room 302
11 Bladen Street
Annapolis, MD  21401-1991
Phone:  410-841-3606
Fax:  410-841-3399
delores.kelley@senate.state.md.us

Immediate Past Staff Chair
Melissa Calderwood, Kansas
Kansas Legislature, Room 68-W
300 SW 10th Avenue
Topeka, KS 66612-1504
Phone: (785) 296-3181
Fax: (785) 296-3824
melissa.calderwood@klrd.ks.gov
 

NCSL Staff Contacts

Denver Office
Heather Morton
Program Principal
Fiscal Affairs Program
Phone: (303) 856-1475
Fax: (303) 364-7700
Heather.Morton@ncsl.org
 
Jo Anne Bourquard
Senior Fellow
State Services Division
Phone: (303) 856-1355
Fax: (303) 364-7700
Jo.Anne.Bourquard@ncsl.org
 
Washington, D.C. Office                   
James Ward
Committee Director
State-Federal Relations Division
Phone: (202) 624-8683
Fax: (202) 737-1069
James.Ward@ncsl.org
                       
Max Behlke
Policy Specialist
State-Federal Relations Division
Phone: (202) 624-3586
Fax: (202) 737-1069
Max.Behlke@ncsl.org


CFI Committee Members
 

Alabama

Rep. Steve Hurst, Republican
Rep. Oliver Robinson, Democrat
Rep. Greg Wren, Republican, Co-Chair
 
Alaska
Curt Clothier, Legislative Staff
Sen. Dennis Egan, Democrat
Rep. David Guttenberg, Democrat
 
Arkansas
Rep. John Burris, Republican
Sen. F. Bruce Holland, Republican
Sen. Jeremy Hutchinson, Republican
Roger Norman, Legislative Staff
Rep. Mark Perry, Democrat
Sen. Jason Rapert, Republican
Rep. Henry Wilkins, Democrat
 
California
Sen. Christine Kehoe, Democrat
Asm. Fiona Ma, Democrat
 
Colorado
Sen. Greg Brophy, Republican
Sen. Rollie Heath, Democrat
Sen. Evie Hudak, Democrat
Sen. Keith King, Republican
Rep. Kevin Priola, Republican
Sen. Mark Scheffel, Republican
Rep. Amy Stephens, Republican
 
Connecticut
Melissa Buckley, Legislative Staff
Sen. Bob Duff, Democrat
Katherine Dwyer, Legislative Staff
Sen. L. Scott Frantz, Republican
Rep. Susan Johnson, Democrat
Sen. Rob Kane, Republican
Sen. Gary LeBeau, Democrat
Sen. Carlo Leone, Democrat
Schuyler Merritt, Legislative Staff
Rep. Selim Noujaim, Republican
Rep. Chris Perone, Democrat, Vice Chair
 
Delaware
Sen. Catherine Cloutier, Republican
Rep. Deborah Hudson, Republican
Sen. Harris McDowell, Democrat
Rep. Darryl Scott, Democrat
Sen. Robert Venables, Sr., Democrat
 
District of Columbia
Councilmember Michael Brown, Democrat
 
Florida
Kara Collins-Gomez, Legislative Staff

Georgia
Rep. Stephen Allison, Republican
Rep. Steve Davis, Republican
Sen. Bill Hamrick, Republican
Brian Johnson, Legislative Staff
Rep. Billy Mitchell, Republican
Rep. Don Parsons, Republican
Sen. Cecil Staton, Republican
 
Hawaii
Sen. Rosalyn H. Baker, Democrat
Sen. Carol Fukunaga, Democrat, Co-Chair
Rep. Robert Herkes, Democrat
 
Illinois
Sen. Pamela Althoff, Republican
Sen. Jacqueline Collins, Democrat
Sen. Iris Martinez, Democrat
Rep. Frank Mautino, Democrat
Louie Mossos, Legislative Staff
Rep. Timothy Schmitz, Republican
Maurice Scholten, Legislative Staff
 
Indiana
Rep. Jeb Bardon, Democrat
Rep. C. Woody Burton, Republican
Eric Gonzalez, Legislative Staff
Sen. Travis Holdman, Republican
Rep. Eric Koch, Republican
Sen. Frank Mrvan, Democrat
Sen. Allen Paul, Republican
Sen. Greg Taylor, Democrat
Sen. Brent Waltz, Republican
 

Iowa

Glen Dickinson, Legislative Staff
Richard Johnson, Legislative Staff
Julie Simon, Legislative Staff
 

Kansas

Melissa Calderwood, Past Staff Chair
Rep. Nile Dillmore, Democrat
Rep. Stan Frownfelter, Democrat
Rep. Robert Grant, Democrat
David Larson, Legislative Staff
Sen. Ty Masterson, Republican
Rep.  Charlotte O'Hara, Republican
Rep. Richard Proehl, Republican
Sen. Allen Schmidt, Democrat
Rep. Clark Shultz, Republican
Rep. Gene Suellentrop, Republican
Sen. Ruth Teichman, Republican
 
Kentucky
Sen. Tom Buford, Republican
Rep. Dwight Butler, Republican
Sen. Perry Clark, Democrat
Rep. Robert Damron, Democrat
Rep. Jeff Greer, Democrat
Rep. Keith Hall, Democrat
Donna Robinson Holiday, Legislative Staff
Rep. Jimmie Lee, Democrat
Rep. Brad Montell, Kentucky
Sen. Gerald Neal, Democrat
Rep. Tanya Pullin, Democrat
Sen. Dorsey Ridley, Democrat
Rep. Steve Riggs, Democrat
Sen. Daniel Seum, Republican
Sen. Tim Shaughnessy, Democrat
Mike Sunseri, Legislative Staff
Rep. Tommy Thompson, Democrat
 
Louisiana
Sen. A.G. Crowe, Republican
Gary Schaefer, Legislative Staff Vice Chair
 
Maine
Colleen McCarthy Reid, Legislative Staff
 
Maryland
Del. Kumar Barve, Democrat
Del. Emmett Burns, Jr., Democrat
Del. Brian Feldman, Democrat
Sen. Delores G. Kelley, Democrat, Immediate Past Chair        
Del. Susan Krebs, Republican
Del. Susan Lee, Democrat, Vice Chair
Sen. C. Anthony Muse, Democrat
Sen. E.J. Pipkin, Republican
Sen. Catherine Pugh, Democrat
 Del. Nancy Stocksdale, Republican
Del. Michael Vaughn, Democrat
 
Massachusetts
Rep. Paul Adams, Republican
Rep. Brian Ashe, Democrat
Rep. Carlo Basile, Democrat
Rep. Nicholas Boldyga, Republican
Rep. Paul Brodeur, Democrat
Rep. James Cantwell, Democrat
Rep. Gailanne Cariddi, Democrat
Rep. Tackey Chan, Democrat
Rep. Michael Costello, Democrat
Rep. Geraldine Creedon, Democrat
Rep. Mark Cusack, Democrat
Rep. Stephen DiNatale, Democrat
Rep. James Dwyer, Democrat
Rep. Lori Ehrlich, Democrat
Rep. Christopher Fallon, Democrat
Rep. Ryan Fattman, Republican
Rep. Robert Fennell, Democrat
Rep. Sean Garballey, Democrat
Rep. Thomas Golden, Democrat
Rep. Kate Hogan, Democrat
Rep. Russell Holmes, Democrat
Rep. Steven Howitt, Republican
Rep. Donald Humason, Republican
Rep. Randy Hunt, Republican
Sen. Brian Joyce, Democrat
Rep. John Keenan, Democrat
Sen. Michael Knapik, Republican
Rep. Kevin Kuros, Republican
Rep. Marc Lombardo, Republican
Rep. Timothy Madden, Democrat
Rep. John Mahoney, Democrat
Rep. Kevin Murphy, Democrat
Rep. Rhonda Nyman, Democrat
Rep. Jerald Parisella, Democrat
Sen. Anthony Petruccelli, Democrat
Rep. Angelo Puppolo, Democrat
Rep. John Rogers, Democrat
Rep. Theodore Speliotis, Democrat
Rep. Joyce Spiliotis, Democrat
Rep. Thomas Stanley, Democrat
Rep. Walter Timilty, Democrat
Rep. Cleon Turner, Democrat
 
Michigan
Patrick Affholter, Legislative Staff
Sen. Steven Bieda, Democrat
Sen. Darwin Booher, Republican
Julie Cassidy, Legislative Staff
Sen. Joe Hune, Republican
Rep. Martin J. Knollenberg, Republican
Rep. Lisa P. Lyons, Republican
Sen. Michael L. Nofs, Republican
Rep. Amanda Price, Republican
Sen. John M. Proos IV, Republican
Robin Risko, Legislative Staff
Rebecca Ross, Legislative Staff
Sen. Tonya Schuitmaker, Republican
Jim Stansell, Legislative Staff
Steve Stauff, Legislative Staff
Rep. Jimmy Womack, Democrat
 
Minnesota
Rep. Joe Atkins, Democrat
Rep. Pat Mazorol, Republican
Rep. Tim O’Driscoll, Republican
Troy Olson, Legislative Staff
Thomas Pender, Legislative Staff
Rep. Tim Sanders, Republican
Katherine Schill, Legislative Staff
Rep. Kelby Woodard, Republican

Mississippi

Sen. Nancy Adams Collins, Republican
Mandy Davis, Legislative Staff
Ronald Frith, Legislative Staff
 
Missouri
Rep. T.J. Berry, Republican
Terri Rademan, Legislative Staff
Rep. Dave Schatz, Republican

Montana

Bart Campbell, Legislative Staff
Rep. Rob Cook, Republican
Rep. Champ Edmunds, Republican
Todd Everts, Legislative Staff
Rep. Galen Hollenbaugh, Democrat
Sen. Cliff Larsen, Democrat
Patricia Murdo, Legislative Staff Co-Chair
Sonja Nowakowski, Legislative Staff
Hope Stockwell, Legislative Staff
Helen Thigpen, Legislative Staff
 
Nebraska
Sen. Abbie Cornett, Non-Partisan
Sen. Deb Fischer, Non-Partisan
Sen. Pete Pirsch, Non-Partisan
Sen. Paul Schumacher, Non-Partisan
 
Nevada
Asm. Irene Bustamante Adams, Democrat
Asm. Richard Daly, Democrat
Asm. Pat T. Hickey, Republican
 
New Hampshire
Rep. John Hunt, Republican
Michael Kane, Legislative Staff Michael J Landrigan, Legislative Staff
Christopher M. Shea,  Legislative Staff
Rep. Kathleen Taylor, Democrat
 
New Jersey
Asm. Upendra Chivukula, Democrat
Asm. Paul Moriarty, Democrat
Asm. L. Grace Spencer, Democrat

New Mexico

Claudia Armijo, Legislative Staff
Sen. William Burt, Republican
Sen. Carlos Cisneros, Democrat
Sen. Phil Griego, Democrat
Sen. Timothy Keller, Democrat
Damian Lara, Legislative Staff
Sen. Lynda Lovejoy, Democrat
Sen. Cisco McSorley, Democrat
Sen. Steven Neville, Republican
Rep. Debbie Rodella, Democrat
Sen. Nancy Rodriquez, Democrat
Sen. John Christopher Ryan, Republican
Sen. Bernadette Sanchez, Democrat
Sen. John Arthur Smith, Democrat
Sen. David Ulibarri, Democrat
 
North Carolina
Rep. Alma Adams, Democrat
Rep. Harold Brubaker, Republican
Karen Cochrane-Brown, Legislative Staff Vice Chair
Rep. Jerry Dockham, Republican
Walker Reagan, Legislative Staff
Rep. Mitchell Setzer, Republican
Rep. Joe Tolson, Democrat
Rep. Michael Wray, Democrat

North Dakota
Sen. Larry Robinson, Democrat
Sen. Bob Skarphol, Republican
 
Ohio
Rep. Richard Adams, Republican
Rep. Peter Beck, Republican
Michael Dittoe, Legislative Staff
Rep. Jay Goyal, Democrat
Sen. Eric Kearney, Democrat
Rep. Peter Stautberg, Republican
 
Oklahoma
Sen. Cliff A. Aldridge, Republican
Kim Bishop, Legislative Staff
Sen. Rick Brinkley, Republican
Sen. Bill Brown, Republican
Rep. Mike Brown, Democrat
Rep. David Brumbaugh, Republican
Rep. Larry Glenn, Democrat
Rep. Randy Grau, Republican
Rep. Charles Key, Republican
Rep. Dan Kirby, Republican
Rep. James Lockhart, Democrat
Rep. Steve Martin, Republican
Sen. Mike Mazzei, Republican
Rep. Lewis H. Moore, Republican
Rep. Jason W. Murphey, Republican
Rep. Marty Quinn, Republican
Rep. Seneca Scott, Democrat
Rep. John Trebilcock, Republican
 
Pennsylvania
Rep. Frank Burns, Democrat
Neil Friedman, Legislative Staff
Rep. Nick Kotik, Democrat
Rep. Mark Longietti, Democrat
Rep. Robert F. Matzie, Democrat
John Raymond, Legislative Staff
Rep. Chris Sainato, Democrat
 
Puerto Rico
Rep. Jose L. Chico Vega, NPP
Speaker Jenniffer Gonzalez Colon, PDP
Luis Hidalgo, Legislative Staff
Rep. Gabriel Rodriguez Aguilo, NPP
Rep. Paula A Rodriguez Homs, NPP
 
Rhode Island
Rep. Brian Patrick Kennedy, Democrat

South Carolina

Sen. Thomas Alexander, Republican,Vice Chair
Rep. Kenneth Bingham, Republican
Sen. Glenn Reese, Democrat
Mary Riley, Legislative Staff
Michael Shealy, Legislative Staff
Jane Shuler, Legislative Staff
Sen. David Thomas, Republican
 
South Dakota
Rep. Kristin Conzet, Republican
Sen. Deb Peters, Republican
Rep. Mark K. Willadsen, Republican
 
Tennessee
Sen. Charlotte Burks, Democrat
Luke Gustafson, Legislative Staff
Sen. Jack Johnson, Republican
Rep. Stephen McManus, Republican
Anna Richardson, Legislative Staff
Sen. Steve Southerland, Republican
Sen. Jim Tracy, Republican
 
Texas
Rep. Brandon Creighton, Republican
Rep. Dan Flynn, Republican
Sen. Troy Fraser, Republican
Rep. Lance Gooden, Republican
Sen. Chris Harris, Republican
Rep. Harvey Hilderbran, Republican
Rep. Charles Howard, Republican
Rep. Jose Menendez, Democrat
Linda Pittsford, Legislative Staff
Rep. Vicki Truit, Republican
Sen. Leticia Van de Putte, Democrat
Rep. Hubert Vo, Democrat
Sen. Royce West, Democrat
Sen. Tommy Williams, Republican
 
Utah
Sen. Curtis Bramble, Republican
Rep. Wayne Harper, Republican,
Vice Chair
Sen. Peter Knudson, Republican
Zackery N. Zing, Legislative Staff
 
Vermont
StephanieBarrett, Legislative Staff
Rep. Jim Condon, Democrat
Rep. Susan Hatch Davis, Progressive
Duncan Goss, Legislative Staff Co-Chair
Rep. Warren Kitzmiller, Democrat
Rep. William Lippert, Democrat
Rep. Ernest Shand, Democrat
Sara Teachout, Legislative Staff
 
Virginia
Del. Robert Brink, Democrat
Del. Kathy Byron, Republican
Sen. Adam Ebbin, Democrat
Sen. Mark R. Herring, Democrat
Del. Joe May, Republican, Vice Chair
Sen. Phillip Puckett, Democrat
Sen. Walter Stosch, Republican
Lisa Wallmeyer, Legislative Staff
Sen. John C. Watkins, Republican
Del. Vivian Watts, Democrat

Washington
Sen. Maralyn Chase, Democrat
Rep. Bob Hasegawa, Democrat
Joe Hedegard, Legislative Staff
Rep. Ross Hunter, Democrat, Vice Chair
Rep. Troy Kelley, Democrat
Rep. John McCoy, Democrat
Thomas Osborn, Legislative Staff
 
West Virginia
Del. Nancy Peoples Guthrie, Democrat
Sen. Walt Helmick, Democrat
Sen. Evan Jenkins, Democrat
Sen. Jeffrey Kessler, Democrat
Del. Cliff Moore, Democrat
Melanie Pagliaro, Legislative Staff
 

Wisconsin

Margit Kelley, Legislative Staff
Dan Schmidt, Legislative Staff

Wyoming
Rep. John A. Botten, Republican
Sen. Cale Case, Republican
Lynda Cook, Legislative Staff
Senator Floyd A. Esquibel
David Gruver, Legislative Staff
Rep. Kendell Kroeker, Republican


NCSL Standing Committee Guidelines

 
Policy Statements and Resolutions
All new policy directives and resolutions must be submitted to the attention of the Washington Office Directors, Neal Osten and Molly Ramsdell (dc-directors@ncsl.org) by 5:00 pm (EST) on Monday, July 9.  They will submit the policy directives and resolutions to the co-chairs of the Standing Committees, Senator Curt Bramble of Utah and Assemblywoman Fiona Ma of California, for assignment to the appropriate committee(s) of jurisdiction.
 
All policy directives and resolutions to be considered at the 2012 Legislative Summit in Chicago must be posted on NCSL’s web site no later than Monday, July 30, though our intention is to have everything posted by July 20.  The list of policy directives and resolutions will be sent to all legislative leaders, NCSL Executive Committee members, and chairs and vice chairs of the NCSL standing committees. Each committee is responsible for making the policy directives and resolutions available to all committee members.
 

Amendments to Policy Directives and Resolutions
NCSL’s Executive Committee has made it a priority to ensure that NCSL’s policy development process is transparent as evidence by the 30 day introduction requirement for policy directives and resolutions.  In that same regard, the Executive Committee has approved changes to the NCSL Rules of Procedure that will set guidelines for the introduction of amendments to policy directives and resolutions.  These proposed changes will be considered at the Business Meeting in Chicago and therefore will not be in effect for the 2012 Legislative Summit.  However, to foster the transparency of NCSL’s policy process, members are encouraged to introduce amendments to policy directives and resolutions no later than July 30, which is ten days before the Legislative Summit Business Meeting.

 
Voting Members of the Committee
The roster of voting members for each standing committee is the roster on file with NCSL as of August 3, 2012.   The legislators on that roster have been duly appointed by their appropriate presiding officer in their legislative chamber.   Appointments to a committee after August 3 shall be made in writing from the appropriate presiding officer and delivered to Bill Pound, NCSL Executive Director, no later than the start of a committee’s scheduled business meeting. (Please see below.) Committee chairs may want to announce at the beginning of the first committee session that only legislators on the official committee roster (which will include any new appointments made to Bill Pound) will be permitted to vote during the committee’s business meeting. 
                                                            
Appointments to a committee cannot be accepted once the FIRST business meeting for that committee starts.   For the 2012 Legislative Summit, the scheduled start of the various standing committees is as follows:
 
 
Committee                                                      Date                          Time
Human Services & Welfare                            Monday, August 6       12:00 pm
Law & Criminal Justice                                   Monday, August 6        12:00 pm
Agriculture & Energy                                     Monday, August 6        3:15 pm
Environment                                                  Monday, August 6        3:15 pm
Health                                                            Monday, August 6        3:15pm
Labor & Economic Development                    Monday, August 6        3:15 pm
Transportation                                               Monday, August 6        3:15 pm
Budgets and Revenue                                   Tuesday, August 7       10:30 am
Communications, Financial Services              Tuesday, August 7       10:30 am
and Interstate Commerce
Education                                                       Tuesday, August 7       10:30 am
 
Committee Business Meeting

  • All committee members to be identified with appropriate table tent name holder, prepared by NCSL staff.

  • The presiding legislator co-chair [chair] or one of the legislator vice chairs calls the meeting to order at the scheduled time.

  • The presiding legislator co-chair shall establish the presence of a quorum.  It is recommended that the chair call the roll of states to determine the presence of a quorum.  The quorum for the adoption of policy directives and resolutions in a standing committee shall consist of representation of appointed legislator members from at least 10 states.  A quorum call can also be requested by legislator members from 2 states at any time during the committee business meeting.

  • A legislator member from a state not present for the most recent quorum call can, before the start of the next roll call vote, request recognition from the presiding legislator co-chair and be recorded as present for purposes of the quorum. 

  • Each committee shall review and act on all policy directives or resolutions referred to the committee.  A legislator member who is sponsoring a policy directive, resolution or amendment may withdraw such policy directive, resolution or amendment at any time before a vote is called.

  • If a committee fails to take up any policy directive or resolution on its agenda before the scheduled time of the committee meeting expires, those policy directives and resolutions would be considered tabled and held over until the next meeting of the committee in Washington, D.C., December 6-8, 2012.

  • A summary of action on all policy directives and resolutions must be kept by NCSL staff and such summary shall be delivered by the legislator co-chairs or one of the legislator vice chairs at the appropriate meeting of the Steering Committee.

  • The legislator chair or one of the legislator vice chairs acting as presiding officer of the standing committee has the obligation and authority to preserve order and decorum and have charge of the committee meeting room at all times.

  • Committee does not need to take any further action to table unfinished business.

  • All standing committee business meeting must end by 3:15 pm on Tuesday, August 7, 2012.

 
Voting During the Committee Business Meeting

  • Only duly appointed legislator members of the committee can vote on matters of public policy.

  • All voting in the committee shall be by a voice vote, except when a roll call is requested by at least one legislator from two member states, or is called by the legislator chair.

  • During a roll call vote on a question, only states that were recorded as present during the most recent quorum call shall be called on to vote.

  • The legislator chair may request any delegation from a state to designate a spokesperson if there are more than two legislators from the state. The spokesperson would cast the vote for the state on any roll call vote.

  • The vote by a state shall represent the majority view of all the duly appointed legislator members from the state present and voting.  If the legislator members in a state delegation are evenly divided, the state vote would be recorded as present.

  • On matters of public policy an affirmative vote of three-fourths (3/4) of the states responding to the most recent quorum call shall be required.  This means that states that pass, abstain or vote present would be counted. 

  • For all amendments to policy directives and resolutions, a simple majority of the states responding to the most recent quorum call shall be required.

  • A quorum call can be requested at any time by legislator members from two states prior to the start of a roll call vote.

  • At such time that the legislator chair announces the vote on a policy directive or resolution, the vote is final.  Motions to reconsider a question can be made by any legislator member of the committee.

  • If a policy directive or resolution passes the committee unanimously it will be reported to the Consent Calendar.  Policy directives or resolutions adopted at the previous Fall or Spring Forum shall also be considered on the Consent Calendar. Any policy statement or resolution receiving at least one no vote shall be reported to the Debate Calendar. 

 Post Committee Meeting Responsibilities
The legislator chair or a designated legislator vice chair shall make a report to the Steering Committee on Tuesday, August 7 at 4:45 pm on the disposition of all the policy directives and resolutions that were on the committee’s agenda.
 
The legislator chair or a designated legislator vice chair is responsible for making an introductory statement and moving the committee’s policy directives and resolutions that appear on the Debate Calendar on the floor of the NCSL Annual Business Meeting on Thursday, August 9, 2012.  The Business Meeting will take place 10:30 am – 12:15 pm.


Policy Directives and Resolutions for Consideration

                                 

 

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: BANKING & FINANCIAL SERVICES
 
TYPE OF POLICY: DRAFT POLICY DIRECTIVE
 
STATE SOVEREIGNTY IN FINANCIAL SERVICES
The National Conference of State Legislatures (NCSL) is concerned that Congress, the federal financial services regulators, and the federal courts have sought to nationalize control of financial services in Washington, D.C. NCSL has consistently and strongly advocated for state sovereignty in financial services regulation. NCSL has opposed any federal preemption of state legislative or regulatory authority in financial services. A high burden of proof that federal action is necessary, such as a national financial crisis, should be met before any preemption of state financial services laws and regulations is warranted.
 
Preservation of Dual Banking System
NCSL is committed to the preservation of the dual banking system. The dual system enables state governments to apply laws and regulations to banks and thrifts that serve the needs of local economies and that respond to the values and concerns of local citizens. In recognition of the advantages of the dual system to the public and to the health of the financial services industry, NCSL opposes any efforts by the federal government to restrict state authority to charter, supervise, or regulate the powers of state chartered banks and thrifts. NCSL opposes any federal attempts to tax state banks for federal oversight services already performed by the appropriate state banking agencies and departments. Nonetheless, NCSL recognizes that the states have a duty to use their powers responsibly and in a way that does not endanger the deposit insurance system and thereby the nation's financial stability. NCSL acknowledges congressional efforts in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to limit the unchecked preemption efforts by the Office of the Comptroller of the Currency (OCC) of state financial consumer protections. NCSL urges continued congressional vigilance of the OCC and asks the secretary of the Treasury to ensure that the spirit of the Dodd-Frank Act in ensuring the states’ role in protecting consumers is not diminished in regulations establishing the new Consumer Financial Protection Bureau.
 
Federal Regulatory Consolidation
NCSL recognizes the need for the federal government to reduce the federal regulatory burden that can impede the economic vitality of our nation's financial services industries. In consolidating the federal banking regulators, Congress must ensure that any consolidation does not invalidate the regulatory independence of the dual banking system.
 
NCSL opposes any federal regulatory consolidation plan that would:

  • Preempt, limit or interfere with the rights of states to regulate state chartered banks;

  • Require federal reporting requirements and examinations that duplicate state efforts;

  • Place state chartered banks at a competitive disadvantage with national banks or federal thrifts; and

  • Grant oversight authority for state chartered banks to the OCC, the regulator of national banks.

 
NCSL supports the continued federal oversight by the FDIC and the Federal Reserve of state chartered banks. It would be detrimental to the well-being of the dual banking system for Congress to tamper with present oversight cooperation between state banking departments, the FDIC and the Federal Reserve.
 
Federal Preemption
NCSL strongly believes that a high burden of proof must be established before federal preemption of state banking authority is ever justified and that only Congress—and not federal regulatory agencies—can preempt the actions of elected state leaders. NCSL supports the “prevent or significantly interfere with” standard established by the Supreme Court and reiterated in Subtitle D of Title X of the Dodd-Frank Act to govern federal preemption of state laws as those laws apply to national banks. NCSL strongly opposes any effort by the OCC to assert its regulatory authority to weaken the standard of preemption or shield national banks and bank operating subsidiaries from state consumer protection laws and enforcement. Moreover, NCSL encourages Congress to eliminate the judicial deference given to the OCC by federal courts in challenges to state financial services laws and to restrain OCC abuse of its regulatory authority to preempt state laws.
 
Dual Chartering of Credit Unions
NCSL believes that state credit union supervisors have the primary responsibility for assuring the safety and soundness of credit unions chartered by and operating under state law and regulation. NCSL supports the authority of state governments to determine how state financial institutions must be insured and opposes any efforts by the federal government to preempt states’ authority to govern state deposit insurance requirements. NCSL also acknowledges that states have a responsibility to provide a credible regulatory environment where powers can be exercised in a way that does not endanger the financial solvency of the National Credit Union Share Insurance Fund (NCUSIF). NCSL additionally acknowledges that federal deposit insurance agencies, like the National Credit Union Administration (NCUA), have a legitimate role to play if state authorized powers lead to unreasonable risks for NCUSIF. However, NCUA regulations and policies should be crafted in a way that minimizes the preemption of state authority. NCSL opposes any effort by the Administration and Congress to erode the dual chartering system for credit unions by preempting state credit union laws and regulations that do not adversely impact the financial well-being of state chartered credit unions and thus the NCUSIF. Any preemption of state credit union laws or regulatory authority must be justified only by a clear and certain threat to the credit unions' share insurance fund by those credit unions that are federally insured.
 
Consumer Protection
State legislatures and Congress must periodically consider legislation: to ensure consumer access to basic financial services; to protect the privacy of financial consumers and the security of their personal financial information; to provide protection for consumers from abusive lending practices; to ensure disclosure of information about credit terms, interest rates, fees, and balances; to regulate branch closing; and to otherwise protect the consuming public. In recognition that this is an area of overlapping federal and state jurisdiction, NCSL will ordinarily not oppose such federal consumer protection measures, provided that there is no preemption of complementary state consumer protection legislation. Federal legislation should not prohibit state legislatures and state regulators from providing additional protections for consumers of financial services. Furthermore, as the Consumer Financial Protection Bureau established in Dodd-Frank commences its role as the federal agency responsible for regulating consumer protection and enforcing applicable federal laws NCSL opposes any action that preempts state consumer protections law or undermines the principles of federalism.
Finally, as online financial services continue to grow, clear rules must be established as to which jurisdiction's consumer protections apply to a given transaction. NCSL believes that any such rules should be crafted through a partnership between state and federal regulators and should not place state chartered financial institutions at a disadvantage in the instituation’s ability to provide services over the Internet.
 
Financial Services and Economic Development
NCSL recognizes that racial, ethnic, or gender discrimination by financial services institutions may have an impact on the ability of residents in distressed communities to obtain financial assistance. State legislators also recognize the need for financial institutions to make safe, sound and profitable investments. NCSL, recognizing the responsibilities that each state has for financial institution regulation and solvency and for providing for fair lending to their constituents, believes that each state legislature has the responsibility to address the unique needs of its state. Likewise, the federal government as regulator of federal financial institutions must make the same determinations and act accordingly. However, Congress must not mandate federal guidelines that impede the states' abilities to regulate financial services.
 
Securities Regulation
NCSL recognizes that the federal government has an interest in efficient and fair capital markets. NCSL also acknowledges that the states’ securities agencies are indispensable partners with their federal counterparts engaging in the pursuit of fair and efficient capital markets by protecting local investors, workers, and communities by ensuring compliance with securities laws.
 
NCSL is concerned that the preemption of state securities laws and regulations will serve only to erode investor trust in the capital markets by further weakening a system designed to protect investors and putting the financial well-being of hard-working Americans at risk. NCSL opposes such federal preemption and the creation of self-regulatory organizations that usurp state authority. Instead, NCSL supports congressional efforts to expand the restoration of state securities regulators’ authority.
 
Mortgage Industry
Currently states regulate a significant portion of mortgage lending. Federalizing this area of supervision will displace the 50-state regulatory system that has rapidly evolved and could erode, or even eliminate, the current authority the states have to approve, supervise and bar mortgage professionals. The local nature of real estate and consumer protection necessitates direct state authority.
 
States, through the Conference of State Bank Supervisors (CSBS) and the American Association of Mortgage Regulators (AARMR), developed the Nationwide Mortgage Licensing System (NMLS) to improve and coordinate mortgage supervision. This state system enhances consumer protection and streamlines the licensing process for regulators and the industry. NCSL supports the NMLS to encourage a more coordinated system of state and federal supervision.
 
FINANCIAL INFORMATION SECURITY
NCSL believes that states should continue to play a vital role in protecting the privacy, confidentiality and security of sensitive nonpublic personal financial information. States long have sought to balance the economic value of information sharing with reasonable safeguards against the unnecessary disclosure and inappropriate acquisition of sensitive nonpublic personal financial information, such as credit information, account numbers, account balances, and Social Security numbers. Understanding local and regional economic situations and the unique needs of consumers within these markets, states consistently have ensured the protection of sensitive nonpublic personal financial information.
 
State legislatures recognize that financial information security is an area of overlapping federal and state jurisdiction. Therefore, NCSL does not oppose federal baseline standards for the protection of financial information, provided that these standards generally do not preempt complementary state laws. NCSL believes that states should have the authority and flexibility to adopt standards for the acquisition, retention, disclosure and sharing of financial information by and among financial institutions and nonaffiliated third parties that address local concerns or respond in a timely way to incidences of neglect or abuse that may be local or regional in nature. NCSL specifically believes that Congress should preserve state authority to exceed federal baseline standards for information sharing among nonaffiliated third parties.
 
Credit Reporting
NCSL acknowledges the benefit of a uniform national credit reporting system to the nation's economy. Therefore, NCSL does not oppose the limited areas that were subject to federal preemption by the 1996 Amendments of the Fair Credit Reporting Act and made permanent by the Fair and Accurate Credit Transactions Act. In doing so, NCSL supports the continued exemption of the state laws that were in existence prior to the 1996 Amendments and thus are currently exempted from the preemption provisions.
 
Data Security Breach Disclosure
Consistent with NCSL’s general policy for safeguarding financial information, NCSL does not oppose baseline federal data security breach notification standards, provided that the requirements do not preempt state authority to adopt standards that provide affected consumers additional protection and notification. NCSL also supports allowing state financial regulators and attorneys general to enforce any new federal data security breach notification standards
 
In the event that Congress decides to preempt state law, NCSL urges that the preemption be narrowly construed to preempt only state laws that are inconsistent with the federal standard while preserving state laws that apply to entities that may be excluded from the federal act. Additionally, should Congress decide to preempt state data security breach notification laws, NCSL would support a strong federal law that would require notification of the affected consumers when sensitive personally identifiable information has been, or is reasonably believed to have been, accessed or acquired. In this instance, exceptions should be made only when it is concluded that there is no significant risk that the breach has resulted in, or will result in, harm to the individual whose information has been breached.


COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: CORPORATE FORMATIONS
 
TYPE OF POLICY: DRAFT POLICY DIRECTIVE
 
The ability to regulate and set standards for incorporation law resides within the individual states.  Many states rely on the revenue generated by incorporation fees, corporate taxes and other fees as a way to fund many of their public needs.  States determine requirements regarding the articles of incorporation and have the ability to tighten and lift barriers for corporate formation.  The National Conference of State Legislatures opposes any unwarranted effort at the federal level to preempt state incorporation laws.


 

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
                        ENVIRONMENT
 
POLICY: CRADLE TO GRAVE ELECTRONICS MANAGEMENT
 
TYPE OF POLICY: DRAFT POLICY DIRECTIVE
 
The disincentives for reuse and recycling of electronics scrap or e-scrap must be examined and mitigated by all relevant stakeholders.
 
NCSL encourages the full cooperation and assistance of the federal government in state efforts to promote responsible product stewardship and encourage the development of an infrastructure necessary to support the widespread recovery of a broad range of electronic equipment. Any legislative or regulatory action taken at the federal level must recognize the importance of a state-federal partnership in managing the current stream of end-of-life electronics and promote future product stewardship of electronic equipment.


COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: INSURANCE
 
TYPE OF POLICY: DRAFT POLICY DIRECTIVE
 
INSURANCE REGULATORY MODERNIZATION
The National Conference of State Legislatures (NCSL) is committed to state regulation of the business of insurance. NCSL acknowledges the responsibility of states to adjust state systems to meet the needs of the modern economy. NCSL opposes any proposal to establish either a federal or a dual system of regulation of insurance, to cede any state authority to regulate financial institutions involved in the business of insurance or to obtain Congressional ratification of trade agreements that preempt state regulation of insurance.
 
States and insurance commissioners continue to develop a shared vision of insurance regulatory reform to meet the needs of the modern marketplace while preserving the advantages of the state system. NCSL supports the efforts of states to streamline and simplify insurance regulation. NCSL endorses state participation in the Interstate Insurance Product Regulation Commission, which creates a national state-based system to make regulatory decisions quickly on life insurance products according to uniform national standards. NCSL endorses state participation in the Surplus Lines Insurance Multi-State Compliance Compact (SLIMPACT), an interstate compact to protect and facilitate the collection of premium tax revenue on surplus lines and independently procured insurance placements by the compacting states.
 
NCSL believes that state efforts to enact significant reforms in critical areas represent tremendous progress, and NCSL will continue to support further efforts as states move forward to achieve widespread reform in all areas in the years ahead.
 
State-Federal Partnership
Individually and at the national level, states work to modernize insurance regulation. However, state legislatures recognize a legitimate federal role in overseeing and promoting well-functioning insurance markets.
 
Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act established The Federal Insurance Office (FIO) within the U.S. Department of Treasury. While NCSL and other state groups were successful in limiting the scope of the FIO’s authority, concern remains that the FIO will serve as a vehicle to promote a greater federal role in the historically state-regulated industry of insurance.
 
Therefore, NCSL opposes any administrative action by the FIO or federal legislation that: relies on wholesale preemption of state authority, would compel state compliance with federal standards or those of any non-governmental third party, or conditions, restricts or redirects state insurance revenues, including insurance premium taxes, fees and fines, either directly or as a condition of a state’s refusal to submit to federal standards or federal efforts to commandeer a state executive branch official to participate in a federal regulatory program.
 
Moreover, some in Congress and industry support federal legislation to establish a single federal regulator of insurance or allow for dual federal and state insurance regulation. NCSL opposes any provision of federal legislation that preempts state authority through the creation of a federal insurance official, commission or entity with the authority to regulate insurance, to implement federal standards, to enforce state compliance with federal standards, or to initiate or participate in judicial proceedings to resolve differences between federal standards and state law.
 
State legislators perform a critical role in the development of insurance public policy.  However, despite this important function, state legislators are oftentimes overlooked for service on federal advisory boards and committees related to the regulation of the business of insurance.  Recognizing this recurring oversight, NCSL requests an enhanced effort from the federal government to incorporate state legislators onto associated insurance advisory panels.
 
Insurance Company Solvency
The safety and soundness of insurance companies operating in the United States are the prime objective of state insurance regulation. State legislatures have endeavored to strengthen state insurance departments and to create standards for financial regulation that have improved the solvency of insurance companies.
 
NCSL opposes any proposal to establish federal standards for state solvency regulation that cedes any authority to federal agencies to regulate financial institutions involved in the business of insurance, including congressional ratification of trade agreements that would preempt state regulation of insurance for solvency purposes. Although NCSL continues to support the National Association of Insurance Commissioners’ Financial Regulation Standards and Accreditation Program, NCSL acknowledges that state legislatures and governors have the responsibility to enact policy, which state regulators enforce. NCSL recognizes that interstate compact proposals have the potential of addressing binding uniformity and effectiveness in specific areas of regulation.
 
NCSL also objects to actions taken or contemplated by the Internal Revenue Service or other federal agencies to assert priority claims to the assets of failed insurers. The states should first be allowed to distribute an insolvent company's assets to pensioners, family businesses, other policyholders and others protected by the McCarran-Ferguson Act’s delegation of the business of insurance to the states.
 
In the same vein, NCSL is concerned by federal bankruptcy rulings under the federal bankruptcy code that would allow alien insurers and reinsurers to move certain trust fund assets to bankruptcy proceedings in their domicile country. The trust funds established by alien insurers and reinsurers are to serve as collateral for insurance and reinsurance underwriting in the United States. Federal bankruptcy rulings have allowed such alien insurers and reinsurers to be exempt from state solvency regulation and have placed these collateral trust funds out of the reach of state insurance departments, which are solely responsible for solvency protection. NCSL urges Congress to rectify this situation by amending federal law to eliminate or limit this exemption for alien insurers and reinsurers under the bankruptcy code.
 
Insurance Information Security
NCSL opposes any federal effort to preempt state laws and regulations or to enact federal standards that address the use of financial and credit information in insurance.
 
INSURANCE FRAUD - FEDERAL CRIMINALIZATION
NCSL recognizes the toll that policyholder and claimant initiated fraud has on the cost of insurance and the solvency of the insurer. We applaud the action taken in various states to pass laws that make it more difficult to file a false claim, increase the penalties for those who are guilty of fraudulent activities, and expand state insurance department fraud units.
 
NCSL believes that the prosecution of policyholder and claimant fraud should and must remain in the jurisdiction of state and local law enforcement officials. However, in cases of internal insurer fraud that may be the result of interstate and international conspiracies to defraud, loot or plunder an insurance company, states and the federal government should cooperate to prosecute such criminal activity.
 
As a result of financial services modernization, the various federal and state financial institutions regulators need to coordinate anti-fraud activities. However, federal legislation to assist the coordination of state and federal anti-fraud activities should not unnecessarily preempt state anti-fraud laws and regulations nor grant audit or subpoena authority to a federal entity over a state agency operating under appropriate state constitutions and laws.
 
NCSL's endorsement of federal involvement in the criminal prosecution of certain kinds of insurance fraud does not diminish our support for continued state regulation of the insurance business. Federal criminal sanctions will assist state regulators in state efforts to prevent future insolvencies.
 
EQUAL ACCESS TO FBI CRIMINAL HISTORY RECORDS
State regulators should have efficient access to the Federal Bureau of Investigation’s (FBI) Criminal Justice Information System in order to establish dependable procedures for licensing officers, directors, and agents of insurance companies across the United States.
 
NCSL calls on Congress to give state insurance regulators statutory access to FBI fingerprint files. This information is currently available to federal and state banking and securities regulators. Access will help safeguard insurance consumers from the unnecessary risk of having known fraud artists or violent offenders engaged in the insurance business.
 
NATURAL DISASTER MITIGATION AND INSURANCE
NCSL urges Congressional action that would: (a) provide federal grants, tax credits or deductions to assist consumers to strengthen their homes to better withstand catastrophic natural disasters; and (b) create a commission to determine what other action is necessary and appropriate to support and enhance the ability of existing insurance and reinsurance mechanisms to cope with catastrophic natural disasters. However, any such action must not displace private sector risk transfer mechanisms, adversely impact a state's ability to levy premium taxes, regulate the business of insurance and set solvency standards for property and casualty insurers.
 
TERRORISM RISK INSURANCE
NCSL requests Congress work with state insurance regulators to ensure that the property and casualty insurance and group life insurance industries develop the products to protect Americans from financial losses associated with terrorism and to ensure an available and affordable insurance market for American consumers and businesses.
 
NCSL continues to believe that any reauthorization of the Terrorism Risk Insurance Act should recognize the temporary nature of the program, and therefore encourages efforts to further promote development of the private insurance markets. Any federal plan for a temporary and limited federal backstop for terrorism insurance coverage must not adversely impact a state’s ability to levy premium taxes, regulate the business of insurance and set solvency standards for property and casualty and group life insurers.


 

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: INTERNET & ELECTRONIC COMMERCE
 
TYPE OF POLICY: DRAFT POLICY DIRECTIVE
 
THE INTERNET AND ELECTRONIC COMMERCE
The Internet defies a detailed one-size-fits-all approach to public policy and regulation. America's federal and state lawmakers, as well as policy makers from other countries should be guided by principles that foster the Internet's development while protecting the security and privacy of individual users.
 
Our nation's state legislatures are well aware of the impact that access to the Internet and electronic commerce have on the economic vitality of our states and communities. State legislatures also recognize that the marketplace for electronic commerce is not just in the United States but is present in the vast global market. State legislatures share the concern of many in Congress that ill-conceived over-regulation and taxation of the Internet and electronic commerce services could harm our nation's ability to compete globally. However, state legislatures also recognize that they have an obligation to act, when and if necessary, to protect the general welfare of their constituents. As the use of the Internet continues to expand, any future or existing regulations must be balanced against market forces in a competitive and technologically neutral manner, as government must not choose the winners or losers of the digital age.
 
Nothing in this policy statement is to be construed as limiting or affecting the right of any state to regulate alcohol according to its local norms and standards pursuant to the 21st Amendment.
 
NCSL opposes unnecessary or unwarranted federal legislation or regulation that would impede efforts by states to promote access to the Internet, enhance competition or increased consumer choice or ensure the security of personal information of consumers conducting electronic commerce transactions.
 
The National Conference of State Legislatures (NCSL) supports the following principles in formulating laws and regulations that impact the Internet and electronic commerce:
 
Privacy and Security
Every American should be empowered to protect their privacy and personal information from intrusion or piracy. While NCSL recognizes that there is a need for Congress to act to establish a national policy to protect the personal information of Americans, state legislatures, in the absence of any action by Congress and the federal government, have moved to fill the void. NCSL calls upon the Congress to enact federal Internet privacy legislation that ensures the security of Americans’ personal information with the least amount of government regulation as possible. However, NCSL opposes federal legislation that seeks to preempt existing state statutes and regulations governing privacy protections and security for non-Internet based transactions.
 
Free Speech
The Internet allows people to communicate and share ideas with others with an ease never before possible. Federal government policy should rigorously protect freedom of speech and expression on the Internet, but not restrict states or local governments from oversight protecting freedom of speech. New technologies should adequately enable individuals, families and schools to protect themselves and students from communications and materials they deem offensive or inappropriate. State law enforcement, with federal assistance and resources, must be able to enforce criminal statutes against predators that use the Internet to harm or abuse children.
 
Self-governance
NCSL requests the Congress to maintain the current self-governance approach that allows the competitive marketplace to drive broadband and broadband-related applications development and deployment. Congress should avoid adopting new mandates and provide the Federal Communications Commission (FCC) with defined and limited authority to oversee, but not proactively intervene in, the broadband Internet marketplace consistent with principles that focus on assessing whether the market continues to ensure that consumers can:
 
(1) receive meaningful information regarding their broadband service plans;
 
(2) have access to their choice of legal Internet content, subject to the limits on bandwidth and quality of service of their service plan;
 
(3) run applications of their choice, subject to the needs of law enforcement and the limits on bandwidth limits and quality of service of their service plans, as long as they do not harm the provider’s network or interfere with other consumers’ use of the broadband service; and
 
(4) be permitted to attach any devices they choose to their broadband connection at the consumer’s premise, so long as they operate within the limits on bandwidth and quality of service of their service plans and do not harm the provider’s network, interfere with other consumers’ use of the broadband service, or enable theft of services.
 
Consumer Protection
Industry self-regulation has made an important contribution to the development of electronic commerce. Industry technologies and best practices, combined with the enactment of strong state laws which outlaw deceptive practices and fraudulent online behavior, are essential elements in promoting electronic commerce and enhancing consumer protection. Privacy and consumer protection continue to be priority issues in state legislatures.
 
NCSL supports the efforts of state legislatures to develop new policy initiatives to protect consumers online, especially when the federal government fails to respond to consumers’ concerns. NCSL also recognizes that because of the global nature of the Internet that states must seek cooperative federal action to further enhance consumer protection, privacy and information security. Federal legislation must ensure the authority of state attorneys general to enforce federal statutes protecting consumers. However, NCSL opposes any attempt by Congress to restrict the states’ ability to impose criminal and/or civil penalties for illegal activity that may occur over the Internet.
 
Growth
Public policies must be designed to foster continuing expansion of useful and affordable bandwidth, encourage development of innovative technologies and promote broad universal access. Federal and state governments must work together to ensure that all Americans, regardless of where they live, have competitive access to high-speed broadband technologies. Government must work to guarantee open and competitive markets for broadband services.
 
Information Technology
Information technology (IT) is a global industry. A strong American IT industry enhances and strengthens the economic well being of our states and nation.
States and the federal government must work together to ensure a climate that allows America’s IT companies to continue to perform research and technology development, to generate innovative new products and services and to solve customer problems. States must have the unfettered ability to continue to seek ways to use IT to better the lives of their residents. Therefore, NCSL opposes any attempt by the federal government to restrict or penalize states’ efforts to utilize information technology services and products that allow states to provide more efficient government services to residents at lower costs to taxpayers.
 
Internet Gambling
Congress must respect the sovereignty of states to allow or to prohibit Internet gambling by their residents.
 
Electronic Commerce and Taxation
Government policies should create a workable infrastructure in which electronic commerce can flourish. Policy makers must resist any temptation to apply tax policy to the Internet in a discriminatory or multiple manner that hinders growth. Government tax systems should treat transactions, including telecommunications and electronic commerce, in a competitively neutral and non-discriminatory manner. The federal government and America’s industries should work with state legislatures in ensuring equal tax treatment of all forms of commerce and should encourage state efforts to achieve simplification and uniformity through the streamlining of state and local sales and telecommunications tax systems.
 
NCSL supports the reform of the discriminatory taxation of communications services and believes that if state and local governments were to take such action, the need for the federal moratorium on Internet access would cease to exist.
Since 2003 NCSL has maintained a neutral position on the extension of the moratorium and continues to do so. However, should the moratorium be extended, it is consistent with NCSL policy that the moratorium be competitively neutral and apply equally to all media used to access the Internet.
 
VIDEO FRANCHISE REFORM
Innovation and convergence of existing technologies are radically expanding communications and information services, blurring distinctions between telephone, Internet services, cable, wireless and satellite. These rapid changes often outpace abilities of federal, state and local regulatory regimes to adapt. It is important that video regulatory policy assure that like services are treated alike, investment is encouraged, and services are in a non-discriminatory manner.
 
State Administration Will Preserve State Authority
Local jurisdictions are the creation of either state constitutions or law. The powers that these political subdivisions of the state exercise were granted to them over time by state legislatures. Those local jurisdictions that have franchise authority have it as a result of state legislation or the state constitution. Therefore, any attempt by Congress to preempt current local franchise authority is a preemption of state sovereignty.
While NCSL rarely advocates the consideration of legislation in state legislatures, NCSL has at times, when states are facing a crisis or a serious threat of federal preemption, urged state legislatures to take action. NCSL endorses efforts that removes barriers to entry for or inequity of regulation among video competitors and foster additional consumer choices in the video marketplace ultimately ensuring competitive neutrality.
Government should encourage competition and consumer choices for broadband and video services and promote the deployment of broadband services and technologies.
 
Fees and Taxation of Video Providers
Franchise fees today are levied, imposed or collected as a percentage of gross revenues, used for general revenue purposes and not based on the actual direct and identifiable costs of any benefit to the entity that pays the fee. To the extent such fees are intended as payment for use of public rights-of-way, that fee should be limited to the actual, direct and identifiable cost of such use, and that portion of the fee should be applied only to those who use the rights-of-way. Franchise fees should be collected and administered by one central agency per state.


 

COMMITTEES: EXECUTIVE COMMITTEE TASK FORCE ON STATE & LOCAL TAXATION
                          COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: REMOTE COMMERCE
 
TYPE: DRAFT POLICY DIRECTIVE
 
The 1967 Bellas Hess and the 1992 Quill Supreme Court decisions denied states the authority to collect sales and use taxes by out-of-state sellers that have no physical presence or nexus in the taxing states, holding that legislation by Congress is required to create such authority. One recent report has estimated that states will lose over $23 Billion in uncollected sales tax revenues in 2012, of which $11.4 billion is from electronic commerce, and that annual losses will continue to grow as more commerce is conducted online. This disconnect with remote commerce threatens to erode the viability of the sales tax as a revenue source for state and local governments. States have requested Congressional action, but Congress has failed to close this large loophole in the states’ sales and use tax system.
 
NCSL calls on Congress to require all sellers, regardless of location, to collect sales taxes and remit them to the state to which they are due. Further, NCSL supports a small business exception.
 
Acknowledging that the complexity of multiple tax rates places a significant burden on out-of-state sellers, twenty-four states joined the Streamlined Sales Tax and Use Agreement and passed laws to simplify sales and use tax systems, remove burdens to interstate sellers, and collaborate on the collection of taxes due to them.
 
NCSL calls on Congress to pass legislation overturning the Bellas Hess and Quill decisions, affirming the states’ sovereign right to enter into such agreements, and granting states the authority denied to them by the Court’s decisions.


 

COMMITTEES: COMMITTEE ON BUDGETS AND REVENUE
                          COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES AND INTERSTATE COMMERCE
 
TITLE: STATE SOVEREIGNTY IN ONLINE GAMING
 
TYPE: DRAFT RESOLUTION
 
The National Conference of State Legislatures (NCSL) believes the federal government must respect the sovereignty of states to allow or to prohibit Internet gambling by their residents.
 
The recent ruling by the United States Justice Department on the Federal Wire Act of 1961, 18 U.S.C. §1084, clarifies that intra-state online gambling is lawful.  Any effort by Congress or the administration to reverse this ruling is preemptive and diminishes the flexibility of state legislatures to be innovative and responsive to the unique needs of the residents of each state.
 
NCSL requests Congress consider the perspective of the states as it examines this issue and asks that it involve state legislators in any federal efforts that seek to reform the regulation of online gaming.  NCSL strongly opposes any effort by the federal government to overturn the Justice Department’s ruling or consideration of legislation overruling state authority by legalizing or regulating gambling at the federal level.  NCSL also requests that federal lawmakers be respectful of state legislatures that prohibit online gaming or other forms of gaming within their state.


 

COMMITTEES: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
                          BUDGETS AND REVENUE
                          TASK FORCE ON STATE AND LOCAL TAXATION

POLICY: NATIONAL CONFERENCE OF STATE LEGISLATURES SUPPORTS AND URGES ENACTMENT OF THE MARKETPLACE FAIRNESS ACT
 
TYPE OF POLICY: DRAFT RESOLUTION
 
 
WHEREAS, the 1967 Bellas Hess and the 1992 Quill Supreme Court decisions denied states the authority to require the collection of sales and use taxes by out-of-state sellers that have no physical presence in the taxing state; and
 
WHEREAS, the combined weight of the inability to collect sales and use taxes due on remote sales through traditional carriers and the tax erosion from electronic commerce threatens the future viability of the sales tax as a stable revenue source for state and local governments; and
 
WHEREAS, a report from the Center for Business Research at the University of Tennessee has estimated that in fiscal year 2012, states will lose over $23 billion in uncollected sales tax revenues from out of state sales; and
 
NOW, THEREFORE BE IT RESOLVED THAT, the National Conference of State Legislatures supports the Marketplace Fairness Act, introduced by Senators Durbin of Illinois and Enzi of Wyoming that authorizes each member state under the Streamlined Sales and Use Tax Agreement to require all sellers not qualifying for a small-seller exception to collect and remit sales and use taxes with respect to remote sales and allows a state that is not a member state under the Agreement to require sellers to collect and remit sales and use taxes with respect to remote sales sourced to such state if the state adopts and implements certain minimum simplification requirements; and
 
BE IT FURTHER RESOLVED THAT, the National Conference of State Legislatures calls upon the Congress to move swiftly to consider and approve the Marketplace Fairness Act that grants states collection authority and provides $23 billion in fiscal relief to the states without a dime coming from the U.S. Treasury; and
 
BE IT FURTHER RESOLVED THAT, the National Conference of State Legislatures urges the President to sign the Marketplace Fairness Act that grants states collection authority into law, upon its passage by the Congress; and
 
BE IT FURTHER RESOLVED THAT, a copy of this resolution be sent to the President of the United States and to all the members of Congress.


 

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE
 
POLICY: RESOLUTION SUPPORTING INTELLECTUAL PROPERTY (IP) RIGHTS AND PROTECTIONS TO PROMOTE PRODUCTIVITY, COMPETITIVENESS, JOBS, AND PUBLIC HEALTH 
 
TYPE OF POLICY: DRAFT RESOLUTION
 
WHEREAS, Intellectual property (IP) rights and innovation are primary drivers of job creation and America’s economic growth.
 
WHEREAS, over 55 million jobs are directly and indirectly supported by IP-intensive industries as a significant driver of GDP, exports, and wages in every state of the Union. 
 
WHEREAS, IP-intensive industries are responsible for $5.8 trillion in private sector output (GDP).
 
WHEREAS, in a 2012 economic study by the U.S. Department of Commerce that ties employment and value-added numbers to IP-intensive industries, IP-intensive industries pay workers 42% higher wages than those of non IP-intensive industries.
 
WHEREAS, IP-intensive industries drive American exports accounting for approximately $1 trillion (74% of total U.S. exports in 2011)
 
WHEREAS, given the important role that IP plays in sustaining a long-term economic growth, policymakers should give high priority to fostering innovation and protecting intellectual property; and
WHEREAS, protecting and enforcing the IP rights of businesses are critical to advancing global economic recovery, driving competitiveness and export growth, and creating high-quality jobs; and
 
WHEREAS, the National Conference of State Legislatures believes that widespread efforts to promote innovation and intellectual property protection are critical to improving the nation’s long-term competitiveness in a global market, and to achieving certain socioeconomic improvements in the quality of American life; and 
 
NOW, THEREFORE LET IT BE RESOLVED, that the National Conference of State Legislatures calls upon all levels of governments to work cooperatively with the private sector, nonprofits, and academia to create, develop and implement robust pro-IP awareness and enforcement; and
 
BE IT FURTHER RESOLVED, the National Conference of State Legislatures supports efforts to ensure the IPEC has sufficient staff, budget, and authority to fulfill the obligations and achieve the goals outlined in the PRO-IP Act and the National IP Strategy; and
 
BE IT FURTHER RESOLVED, the National Conference of State Legislatures support robust IP protection and enforcement provisions in trade agreements and their implementation (specifically the Trans-Pacific Partnership Agreement (TPP)/ KORUS); and
 
BE IT FURTHER RESOLVED THAT, the National Conference of State Legislatures supports existing efforts to shut down the top illegal rogue websites globally that are willfully selling counterfeit goods and facilitating digital theft; 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 112th Congress.


 

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE 

POLICY: NCSL OPPOSES CONTACTLESS TECHNOLOGY MANDATES FOR STATE ISSUED IDENTIFICATION DOCUMENTS                     

TYPE OF POLICY: DRAFT RESOLUTION    
 
WHEREAS, the federal government is taking a more active role in influencing and determining the technological standards for state issued identification documents such as drivers licenses.  The federal government is attempting to influence or mandate the technological standards of sovereign state issued identification documents through the direct acts of Congress, the rule-making processes of the Departments of State and Homeland Security, or through both official or informal agreements with international organizations or initiatives such as the American Association of Motor Vehicle Administrators (AAMVA), the Security and Prosperity Partnership (SPP), and the United Nation’s agency known as the International Civil Aviation Organization (ICAO).
 
WHEREAS, an example contrary to the tenets of federalism, the initial version of the federal REAL ID Act as introduced would have required the states to enter into the AAMVA compact known as the Driver’s License Agreement (DLA).  This compact as drafted would put the non-governmental 501c3 AAMVA, which has foreign voting members, in charge of making the technology decisions for a state’s sovereign drivers licenses.  Such federal decisions would allow for AAMVA, and not the States, to determine whether or not bar code or contactless technology must be employed, whether or not such data could be encrypted, what biometrics would need to be encoded, and whether or not the data could be shared with foreign governments.
 
WHEREAS, an example contrary to the tenets of federalism, the final rules for both REAL ID and the Western Hemisphere Travel Initiative (WHTI) were published in 2008, and mandated standards onto states’ driver’s licenses for them to be acceptable for certain uses.  The Department of Homeland Security is currently requiring states to embed unencrypted contactless technology into a state’s drivers licenses in order for citizens to be able to use them to get back into the United States at international ground crossings.  This places specific technological choices as having equal importance over the roles of identification and proof of citizenship, while leaving states with no flexibility or options in this area if they want to pursue an Enhanced Drivers License (EDL) that does not use contactless technology, wishes to employ encrypted contactless technology, or wishes to employ shorter range contactless technology than what is being mandated.  The goal of WHTI deals simply with providing proof of citizenship, not dictating the technology by which that proof must be conveyed.
 
WHEREAS, an example contrary to the tenets of federalism, the final rules for REAL ID, page 86, make clear that the federal government is not satisfied with a one time mandate and wishes to have this control in perpetuity going forward:  “Moreover, in the future, DHS, in consultation with the States and DOT, may consider technology alternatives to the PDF417 2D bar code that provide greater privacy protections after providing for public comment”.  The “final rules” are therefore not really final, and it is unacceptable that such technological decisions could be made by requiring only non-binding consultation with States, especially when there is debate between the States and the federal government as to what really constitutes optimal privacy and security options for their driver’s licenses.
 
WHEREAS, a driver’s license is a sovereign state document, and whether or not bar code or contactless technology must be employed, should remain a State decision.  The federal government should not use the WHTI, a policy of its own devising, as an economic cudgel to coerce states into accepting such technological standards onto their sovereign driver’s licenses.
 
Therefore, let it be resolved, that the NCSL will urge the President, Congress, and the Departments of State, Transportation, and Homeland Security to not pass law, allow for federal policy, use international organizations, or enter into international agreements that mandate or attempt to indirectly influence the use of contactless technology in state or local identity documents.



COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

POLICY: NCSL RESOLUTION IN SUPPORT OF STATE PUBLIC AFFAIRS NETWORKS                     

TYPE OF POLICY: MEMORIAL RESOLUTION
 
WHEREAS, the operations of state governments and the roles of elected officials are often little understood by citizens.  Yet public understanding of the institutions and processes of government is critical to building public trust and confidence.  State governments need to bring about a better understanding of the concepts of representative democracy.
 
WHEREAS, a growing number of states have created or supported the creation of state public affairs television networks whose charge it is to offer unfiltered, gavel-to-gavel coverage of legislative sessions, committee proceedings and similar actions within the executive and judicial branches.  By providing an “open window” on the workings of their state governments, these independent networks have increased citizen access, public trust and understanding of both the governmental and the public policy process at large.
 
WHEREAS, the National Association of Public Affairs Networks (NAPAN) has been conceived to help establish and expand nationally such noncommercial, independent television networks devoted to providing citizens with fair, balanced, and unfiltered access to their state governments: to foster and nurture the institutions that will help create the informed electorate that will shape our democracy in the years to come.  NAPAN is committed to the launch and viability of networks in all 50 states.
 
NOW, THEREFORE BE IT RESOLVED, the National Conference of State Legislatures supports and encourages the efforts of the National Association of Public Affairs Networks in its vision for the formation and expansion of a state public affairs network in each of the 50 states in the manner most appropriate for each individual state.