STANDING COMMITTEE on COMMUNICATIONS, FINANCIAL

SERVICES and INTERSTATE COMMERCE

COMMITTEE WORKBOOK

LEGISLATIVE SUMMIT AUGUST 6 – 9, 2012

CHICAGO, ILLINOIS

STANDING COMMITTEE on COMMUNICATIONS, FINANCIAL

SERVICES and INTERSTATE COMMERCE

TABLE of CONTENTS

COMMITTEE AGENDA…………………….…………………..…..3

COMMITTEE DESCRIPTION……………………………………..13

COMMITTEE OFFICERS AND STAFF CONTACTS…...................14

COMMITTEE ROSTER…........................................................16

RULES AND BYLAWS…….……………..……….….……...…...22

POLICY DIRECTIVES TRANSITION CHART…………...…………25

POLICY DIRECTIVES FOR CONSIDERATION…………………….26

Banking & Financial Services (p. 26)

Corporate Formations (p. 33)

Cradle to Grave Electronics Management (p.34)

Insurance (p. 35)

Internet & Electronic Commerce (p. 41)

Remote Commerce (p. 47)

RESOLUTIONS FOR CONSIDERATION……………………..…...49

State Sovereignty in Online Gaming (p. 49)

Supports and Urges Enactment of the Marketplace Fairness Act (p. 50)

Supports Intellectual Property (IP) Rights and Protections to Promote Productivity, Competitiveness, Jobs, and Public Health (p. 52)

Opposes Federal Contactless Technology Mandates For State Issued Identification Documents (p. 54)

Support of State Public Affairs Networks (Memorial Resolution) (p. 57)

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2012 NCSL Legislative Summit August 6-9, 2012 Chicago, Illinois

Communications, Financial

Services and Interstate Commerce

Committee Agenda

Items in bold denote committee activities All sessions will be held in the

McCormick Place Convention Center Co-Chairs: Senator Carol Fukunaga, Hawaii Representative Greg Wren, Alabama

Staff Co-Chairs: Duncan Goss, Legislative Council, Vermont Patricia Murdo, Legislative Services Division, Montana

Vice Chairs: Senator Thomas Alexander, South Carolina Representative Wayne Harper, Utah Representative Ross Hunter, Washington Delegate Susan Lee, Maryland Delegate Joe May, Virginia Representative Chris Perone, Connecticut

Staff Vice Chairs: Karen Cochrane-Brown, Research Division, North Carolina Gary Schaefer, Senate, Louisiana

Past Chair: Senator Delores Kelley, Maryland

Past Staff Chair: Melissa Calderwood, Legislative Research Department, Kansas

Sunday, August 5, 2012

12:30 pm – 7:00 pm International Program 1:00 pm – 2:15 pm W194b - Level 1

NCSL Executive Committee: Outreach and Communications Subcommittee

2:00 pm – 5:00 pm W192b - Level 1

Task Force on State & Local Taxation Presiding:

Senate Minority Caucus Whip Pamela Althoff, Illinois

Delegate Sheila Ellis Hixson, Maryland 2:30 pm – 3:45 pm W194b - Level 1

NCSL Executive Committee: Budget, Finance and Rules Committee

4:00 pm – 5:30 pm W196a - Level 1

Executive Committee

Monday, August 6, 2012

7:30 am – 5:30 pm Registration B - Level 3

Registration

7:30 am – 1:00 pm Pre-Conferences, Task Forces, International Program, Ancillary

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8:00 am – 11:30 am W179b - Level 1

Task Force on State & Local Taxation Hear an update on the Marketplace Equity Act and the Marketplace Fairness Act, which would give states the authority to collect taxes owed on remote sales. Discuss deal-of-the-day vouchers, such as Groupon and LivingSocial, and what to be aware of when determining how to tax discounted products or services. Review a draft statement on principles states should consider when deciding to tax cloud computing services and discuss telecommunications tax reform in the states. Presiding:

Senate Minority Caucus Whip Pamela J. Althoff, Illinois

Delegate Sheila Ellis Hixson, Maryland 9:00 am – 12:00 noon Legislative Staff Coordinating Committee 10:30 am – 11:30 am W184ab - Level 1

Transforming Health Care Through Technology FSL Partners Project Business Meeting Members of the steering committee will review the accomplishments of this Foundation for State Legislatures’ Partners Project. Presiding:

Senator Richard Moore, Massachusetts, NCSL Immediate Past President

Senator Kemp Hannon, New York 11:45 am – 1: 15pm W184cd - Level 1

Mobile Health Technologies Working Lunch Joint with Transforming Health Care Through Technology Partners Project Learn about advancements in home health care and explore the ways that mobile technologies are revolutionizing how health care is delivered. Moderator:

Senator Jeremy Nordquist, Nebraska

Delegate Joe May, Virginia Speakers:

Fred Castillo, Executive Director AT&T Government Education, and Medical Mobility Team, Illinois

Chuck Davidson, Advanced Communications Law and Policy, New York

11:45 am – 1:15 pm W178ab - Level 1

Leveling the Playing Field for Retailers: Fixing a $23 Billion Loophole on Internet Sales Taxes Working Lunch Co-sponsored by the Task Force on State & Local Taxation NCSL gratefully acknowledges the International Council of Shopping Centers and the Retail Industry Leaders Association for supporting this luncheon session. Supreme Court decisions have limited states’ ability to collect taxes on online sales. In FY 2012 this amounted to around $23 billion. This also puts brick and mortar stores who must collect taxes at a disadvantage to their online competitors. Analyze two bills in Congress that would give states authority to collect these taxes and explore the

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options states have to fix this loophole. Presiding:

Senator Deb Peters, South Dakota

Moderator:

Joseph Crosby, Multistate Associates, Virginia Panelists:

Representative John Otto, Texas

David Vite, IRMA, Illinois

Adrielle Churchill, Office of Congressman Steve Womack

Corey Tellez, Office of Senator Dick Durbin 12:30 pm – 1:15 pm W176c - Level 1

New Attendee Orientation If you are attending your first NCSL Legislative Summit, take part in this interactive orientation and learn how to navigate your way through the nation's most substantive public policy meeting. Learn about meetings that will get you more involved with NCSL, including our business meeting, staff sections, standing committees and more.

1:30 pm – 3:00 pm Skyline Ballroom - Level 3

General Session: Diane Swonk Diane Swonk, chief economist for Mesirow Financial has been named one of the top economic forecasters in the country by the Wall Street Journal. She acts as advisor to Federal Reserve Board and regional Reserve Banks, and is one of the most respected economists in the world and among the most quoted economists in the financial press.

3:15 pm – 5:00 pm W184ab - Level 1

Identity Theft and Privacy in the Online Age Computers and the internet continue to change the way we conduct business, govern and interact with one another. State and federal policymakers grapple with the issues of identity theft and the privacy of online information. Hear about the current state of digital information and examine what issues state lawmakers should be aware of. Moderators:

Duncan Goss, Legislative Council, Vermont

Karen Cochrane-Brown, Research Division, North Carolina

Panelists:

House Assistant Minority Leader James B. Durkin, Illinois

Senator Delores Kelley, Maryland

Senator Ellen Roberts, Colorado Senator Charleta B. Tavares, Ohio

Justin Brookman, Center for Democracy & Technology, Washington, D.C.

Jim Halpert, DLA Piper, Washington, D.C. 3:15 pm – 5:00 pm Staff Sections 5:15 pm – 6:15 pm W183a - Level 1

Steering Committee Meeting The steering committee includes the overall standing committee officers and the legislator and staff chairs of each standing committee. Members will preview policies for

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consideration and decide on joint and re-referrals of policy resolutions as necessary.

5:00 pm – 7:00 pm Gino’s East of Chicago

American Financial Services Association’s Reception for the Communications, Financial Services and Interstate Commerce Committee members Please RSVP by Friday, July 27, to Susan Sullivan at ssullivan@afsamail.org.

Tuesday, August 7, 2012

7:30 am – 5:30 pm Registration B - Level 3

Registration

8:00 am – 8:45 am Staff Sections Prayer Breakfast

9:00 am – 10:15 am Skyline Ballroom - Level 3

General Session: Peter Hart and Neil Newhouse Peter Hart and Neil Newhouse are two of the nation's leading pollsters. Newhouse is a partner and co-founder of Public Opinion Strategies, a firm that The New York Times describes as "the leading Republican polling company" in the country. Peter Hart is "the foremost Washington pollster for the Democratic Party," according to the National Journal and is chairman of Peter D. Hart Research Associates.

10:30 am – 11:30 am W184ab - Level 1

CFI Committee Business Meeting Members of the committee will discuss and vote on committee business and consider and vote on any new policy resolutions submitted for consideration and review policies. Presiding:

Senator Carol Fukunaga, Hawaii, CFI Co-Chair

Representative Greg Wren, Alabama, CFI Co-Chair Duncan Goss, Vermont, CFI Staff Co-Chair

Patricia Murdo, Montana CFI Staff Co-Chair 10:00 am – 4:00 pm Hall F1 - Level 3

Exhibit Hall

11:45 am – 1:00 pm W184ab - Level 1

Insurance Fraud—If You Don’t Find It, You’re Not Looking Working Lunch Sponsored by the National Insurance Crime Bureau Hear how today’s insurance fraud crimes are much more pervasive than ever costing Americans an estimated $30 billion a year while fraud criminals ply their scams with relative impunity. Moderator:

Senator Thomas Alexander, South Carolina Speaker:

Joseph Wehrle, National Insurance Crime Bureau, Illinois

1:00 pm – 2:15 pm W184ab - Level 1

Revolutionizing Care Through Telehealth Technologies Joint with the Transforming Health Care Through Technology Project With an additional 32 million people estimated to gain health insurance coverage by 2014, states are looking for innovative ways to expand services to underserved and rural areas. Telehealth or telemedicine is emerging as a critical piece in the puzzle. Find out how states are working to

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expand services and hear about state examples. Moderator:

Representative Rosie Berger, Wyoming Speakers:

John D. Blum, John J. Waldon Research Professor of Law, Beazley Institute for Health Law and Policy, Loyola University Chicago School of Law, Illinois

David Johnson, MD, Associate Professor of Pediatrics and Chief, Section of Academic Pediatrics, Comer Children’s Hospital, The University of Chicago Medicine, Illinois

Tom Richards, MD, CEO, Apollo Telemedicine, Wyoming

1:30 pm – 2:45 pm W184cd - Level 1

Building a Better Public Safety Communications Network Joint with the Law and Criminal Justice Committee and Task Force on Homeland Security and Emergency Preparedness Recently approved federal legislation reallocates spectrum and provides funding for states to move forward with the construction of a nationwide interoperable broadband network for first responders. Learn about the nationwide broadband network and important next steps for states. Moderator:

Senator Denton Darrington, Idaho Speakers:

Anna Gomez, Deputy Assistant Secretary, NTIA Michael Balboni, GNYHCFA, New York

Jeffrey Cohen, Law and Policy, APCO International, Virginia

2:15 pm – 3:30 pm W184ab - Level 1

Dodd-Frank and the States States play a significant role in the regulation of financial services. This authority relies on the preservation of a dual-banking system, state regulation of insurance and a state-federal partnership in securities regulation authority. Several provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law two years ago, are impacting the regulation of banking and insurance in the states. Discuss these relationships and explore how implementation of Dodd-Frank is shaping states’ responsibilities and authority. Moderator:

Representative Greg Wren, Alabama

Patricia Murdo, Legislative Services Division, Montana

3:15 pm – 4:45pm W470ab - Level 4

Legislative Staff University: Laree Kiely Laree Kiely is an award-winning organizational expert, consultant, educator, and founder of the Kiely Group.

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3:30 pm – 4:30 pm W184ab – Level 1

The Changing Telecommunications Landscape Consumers now have a growing number of choices when selecting communications services. With new options available, several states have considered or enacted legislation to deregulate some services. Legislators and other experts will discuss recent initiatives and what the future holds. Moderators:

Senator Curtis S. Bramble, Utah

House Deputy Majority Leader Chris Perone , Connecticut

Speakers:

Representative Darryl M. Scott, Delaware Representative Mike Hill, Alabama

Chuck Davidson, Advanced Communications Law and Policy, New York

Sherry Lichtenberg, National Regulatory Research Institute, Maryland

4:45 pm – 5:45 pm W183a - Level 1

Steering Committee The steering committee will review the policies reported from the standing committees at the Forum and determine the calendar for the NCSL Business Meeting on Thursday, August 9, at 10:30 am.

4:45 pm – 5:45 pm W184cd - Level 1

Legislating in the Cloud Cloud computing makes it easier to get, store and deliver software and services through the Internet. It also has the potential for saving costs. Learn about cloud computing and discuss the pros and cons, including questions about confidentiality, security and ownership of data. Hear about other state experiences in taking the leap to the cloud. Moderator:

Gary Wieman, Legislative Technology Center, Nebraska

Panelists: Sharon Crouch Steidel, Virginia House of Delegates

Eric Dugger, Legislative Counsel Bureau, Nevada Legislature

Jonathan Palmore, Senate Information Systems, Virginia General Assembly

4:45 pm – 5:45 pm Rooftop Garden - Level 5

Young Professionals’ Networking Reception Join your legislative colleagues for some light appetizers, a drink and a chance to get to know one another at the Convention Center. Hear about the NCSL staff sections available to you, which are professional groups organized around jobs responsibilities.

5:00 pm – 6:00 pm Skyline Pre-function - Level 3

Women’s Legislative Network Reception Join members of the network to honor incoming president Delaware Senator Dori Connor, the executive board, and female lawmakers from around the world.

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6:30 pm – 8:30 pm Museum of Science and Industry

Social Event: Windy City Welcome Chicago stands tall as the city of big shoulders—a city known for its renowned architecture, captivating museums, beloved sports teams, wonderful shopping, great food and beautiful lake shore. At this opening event, you’ll have exclusive access to the largest science center in the Western Hemisphere and experience fascinating, world-class exhibits. During your exploration of the museum, you will get a ―taste‖ of what makes Chicago famous—food, fun and music. A traditional ―Taste of Chicago‖ will showcase all the famous eats and tunes from the Windy City, from deep dish pizza to the classic Chicago style hot dog, from jazz to gospel to rock.

8:30 pm – 11:00 pm The Signature Room, Hancock Building

CTIA-The Wireless Association’s Reception for the Communications, Financial Services and Interstate Commerce Committee members Please RSVP by Monday, July 30, to CTIAExtStateAff@ctia.org. Shuttle service will be provided from the Museum of Science and Industry.

Wednesday, August 8, 2012

6:00 am – 7:30 am Bipartisan Bike Ride 7:30 am – 5:30 pm Registration B - Level 3

Registration

8:00 am – 9:15 am Staff Section Breakfasts 9:30 am – 10:45 am W180 - Level 1

Taxing the Cloud—Not a Weather Phenomenon (CLE) The development of cloud computing and digital products has put state government in a fog. It is difficult for states to define what a digital product or service is, and whether or not to tax it. Although relatively new, cloud computing has changed the landscape of how businesses operate and has changed the way we live. You'll be able to clarify the hazy definition of "cloud" and explore how some states have taxed digital services and products. Moderator:

Senator Deb Peters, South Dakota Panelists:

Representative Ross Hunter, Washington Stephen Kranz, Sutherland Asbill & Brennan LLP,

Washington, D.C. Scott Mackey, KSE FOCUS, Vermont

Steve Pierce, AT&T, Illinois 10:00 am – 4:00 pm Hall F1 - Level 3

Exhibit Hall

11:00 am – 12:15 pm Issue Forums 12:00 noon – 1:30 pm Hall F1 - Level 3

Atlanta Kick-off Lunch

1:30 pm – 2:45 pm W180 - Level 1

Placing Bets on Gaming: What's on the Screen? (CLE) Some policymakers continue to consider legalized gaming a way to cash in on extra revenue. While states traditionally have determined regulation and taxation of the gaming industry, Congress has introduced legislation regarding

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online gaming that may encroach upon the states' prerogative in this area. Explore state gaming developments, news regarding state legalization of online gaming and the possible fiscal and regulatory impacts on states if the federal bill is enacted. Moderator:

Steve Rauschenberger, Rauschenberger Partners, LLC, Illinois

Panelists:

Margaret Defrancisco, North American Association of State and Provincial Lotteries, Ohio

Frank Fahrenkopf, American Gaming Association, Washington, D.C.

Professor I. Nelson Rose, Gambling and the Law, California

3:00 pm – 4:30 pm W178ab - Level 1

Salute to Legislative Staff: Strong Stewards Mary Crane is a nationally recognized speaker and trainer. She has been featured on "60 Minutes" and "Fox Business News," and her experience includes working in the White House.

3:00 pm – 5:00 pm W184cd - Level 1

Legislators Roundtable

4:30 pm – 5:30 pm W180 - Level 1

Social Media Safety Social networking sites have created new security challenges in legislative and political realms. Hacking, high-jacking and impersonation happen too frequently. Hear about the security and privacy risks of social media, as well as some apps and location check-in tools, and learn some simple steps to keep your accounts secure. Moderator:

Peter Capriglione, North Carolina General Assembly Speaker:

Kevin Haley, Symantec, California States’ Night

Thursday, August 9, 2012

6:00 am – 7:30 am Walk for Wellness Stretch your legs and join your friends at the Walk for Wellness, a 5K walk (or run) along Lake Michigan, to raise awareness of chronic diseases and health disparities. It’s open to all Summit attendees; no preregistration is required. The start/finish location is Arvey Field, near Lake Shore Drive and Roosevelt.

7:30 am – 9:00 am W185d – Level 1

Online Reservations: A Breakfast on the State of Hotel Taxation Co-sponsored by the Task Force on State & Local Taxation Recently, state and local governments around the country have filed law suits against online travel companies (OTCs) claiming they are in violation of hotel occupancy tax ordinances. The suits claim that taxes should be paid on the amount the consumer paid for the room, rather than on the rate the OTC negotiated with the hotel. The travel

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companies contend that they neither operate hotels nor resell the rooms as wholesalers, placing them outside the scope of occupancy taxes. At this breakfast session, hear a discussion of online travel billing practices and how taxes are assessed, collected and remitted to the appropriate government agency. Moderator:

Representative Brian Patrick Kennedy, Rhode Island Panelists:

John Crongeyer, National Online Travel Litigation Group, Georgia

Bob Finnell, National Online Travel Litigation Group, Georgia

Joseph Henchman, The Tax Foundation, Washington, D.C.

Cynthia Ohlenforst, K&L Gates LLP, Texas 7:30 am – 8:45 am W176b - Level 1

NCSL Statehouse Ambassadors’ Breakfast NCSL State Liaisons will have an opportunity to get to know their state’s NCSL Statehouse Ambassadors, who are legislative staff serving as in-state field representatives for NCSL. The Statehouse Ambassador program is designed to energize and sustain participation in NCSL and strengthen the organization’s role as an extension of state legislatures.

7:30 am – 12:00 noon Registration B - Level 3

Registration

9:00 am – 10:15 am Skyline Ballroom - Level 3

General Session on Jobs John Engler, former Michigan governor and current head of the Business Roundtable, and Douglas Oberhelman, CEO of Caterpillar Inc., and Edward B. Rust Jr., CEO of State Farm Mutual and vice-chairman of the U.S. Chamber of Commerce, will participate in a lively discussion on the different roles government and businesses can play in creating jobs.

9:00 am – 12:00 noon Hall F1 - Level 3

Exhibit Hall

10:30 am – 12:15 pm W375e - Level 3

NCSL Annual Business Meeting All legislators and legislative staff are urged to attend the Business Meeting for consideration of policy directives and resolutions that will guide NCSL’s advocacy efforts before Congress and the administration, amendments to the Bylaws and Rules of Procedures, election of NCSL officers and approval of the Conference budget. All other meeting participants are welcome to observe.

12:30 pm – 2:00 pm Skyline Ballroom - Level 3

General Session: Doris Kearns Goodwin Doris Kearns Goodwin, acclaimed historian, Pulitzer Prize winner, prolific author and captivating speaker, has written books on Franklin and Eleanor Roosevelt, the Fitzgeralds and the Kennedys, Lyndon Johnson and Abraham Lincoln. This year, she will be speaking on Teddy Roosevelt—legislator, president, bigger-than-life hero—and the leadership lessons we can learn from a time of economic and political turmoil that reverberate today.

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2:15 pm – 3:30 pm Issue Forums Staff Sections

3:30 pm – 4:45 pm Staff Sections 5:00 pm – 5:45 pm Ancillary 6:30 pm – 9:00 pm Millennium Park

Social Event: Musical Feast What better way to say farewell to the City by the Lake than an evening of great music and fine food in this 25-acre park along Lake Michigan’s shoreline—a center for world-class art, music, architecture, gardens and landscape design? Guests will savor and sip some of Chicago’s best offerings from its many culturally diverse neighborhoods such as Greek Town, Little Italy and Ukrainian Village. While sitting under the stars, listen to an exclusive performance by the toddling town’s best-known musicians. Get ready for an evening of culinary and musical delights set against the picturesque skyline in one of the city’s top tourist attractions.

The NCSL Communications, Financial Services & Interstate Commerce Standing Committee will next meet during NCSL's Fall Forum to be held in Washington, D.C., December 5-7, 2012.

Please plan to attend!

For additional information about the Committee, please contact: Heather Morton (303-856-1475 or heather.morton@ncsl.org)

Jo Anne Bourquard (303-856-1355 or jo.anne.bourquard@ncsl.org) James Ward (202-624-8683 or james.ward@ncsl.org) Max Behlke (202-624-3586 or max.behlke@ncsl.org)

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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

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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

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

Patricia Murdo, Montana

Montana Legislature

PO Box 201706

Helena, MT 59620-1706

Phone: (406) 444-3594

Fax: (406) 444-3036

pmurdo@mt.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

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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

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

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 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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

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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

Connecticut (continued)

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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

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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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

~ 18 ~

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

Massachusetts (continued)

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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

~ 19 ~

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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

~ 20 ~

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

Pennsylvania (continued)

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

NATIONAL CONFERENCE OF STATE LEGISLATURES 2011 - 2012 STANDING COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES & INTERSTATE COMMERCE

~ 21 ~

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

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

~ 22 ~

New 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:

~ 23 ~

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.

~ 24 ~

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.

~ 3 ~

* Incorporated into Environment Committee’s Waste Management Policy Directive

Policy Statements

1. 21st Century Communications

2. Spectrum Management

3. Banking Regulation

4. Corporate Formations

5. Dual Chartering of Credit

Unions

6. Financial Information Security

7. State Sovereignty in Financial

Services

8. Insurance Regulatory

Modernization

9. Insurance Fraud - Federal

Criminalization

10. Equal Access to FBI Crim.

History Recs.

11. Natural Disaster Mitigation &

Insurance

12. Terrorism Risk Insurance

13. The Internet & Electronic

Commerce

14. Cradle to Grave Electronics

Management

15. Nexus in the New Economy

16. Video Franchise Reform

Policy Statements

1. Banking Regulation

2. Corporate Formations

3. Dual Chartering of Credit Unions

4. Financial Information Security

5. State Sovereignty in Financial

Services

6. Insurance Regulatory

Modernization

7. Insurance Fraud - Federal

Criminalization

8. Equal Access to FBI Crim.

History Recs.

9. Natural Disaster Mitigation &

Insurance

10. Terrorism Risk Insurance

11. The Internet & Electronic

Commerce

12. Cradle to Grave Electronics

Management *

13. Nexus in the New Economy

14. Video Franchise Reform

Insurance

(Insurance Regulatory Modernization)

(Insurance Fraud – Federal Criminalization)

(Equal Access to FBI Crim. History Recs.)

(Natural Disaster Mitigation & Insurance)

(Terrorism Risk Insurance)

21st Century

Communications

Resolutions Expiring at the 2012 Legislative Summit in Chicago, Illinois

Opposes the State Video Tax Fairness Act (Consent Calendar)

Supports Federal VoIP Communications Sourcing Act (Consent Calendar)

Supports Public Private Partnerships to Increase Broadband Internet Adoption and Use (Consent Calendar)

Supports and Urges Enactment of the Main Street 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

21st Century Communications

(21st Century Communications)

(Spectrum Management)

Banking & Financial

Services

Insurance

The Internet &

Electronic Commerce

Banking & Financial Services

(Banking Regulation)

(Dual Chartering of Credit Unions)

(Financial Information Security)

(State Sovereignty in Financial Services)

The Internet & Electronic Commerce

(The Internet & Electronic Commerce)

(Video Franchise Reform)

21st Century

Communications

Current Policy Statements

Fall Forum 2011

Legislative Summit 2012

Policy Directives Post Legislative Summit 2012

Guidance for Transition of Current Communications, Financial Services & Interstate Commerce Committee Policy Statements to Policy Directives

Corporate Formations

(Corporate Formations)

Remote Commerce

(Nexus in the New Economy )

Corporate Formations

Remote Commerce

~ 26 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

3

POLICY: BANKING & FINANCIAL SERVICES 4

5

TYPE OF POLICY: DRAFT POLICY DIRECTIVE 6

7

STATE SOVEREIGNTY IN FINANCIAL SERVICES 8

The National Conference of State Legislatures (NCSL) is concerned that Congress, the 9

federal financial services regulators, and the federal courts have sought to nationalize 10

control of financial services in Washington, D.C. NCSL has consistently and strongly 11

advocated for state sovereignty in financial services regulation. NCSL has opposed any 12

federal preemption of state legislative or regulatory authority in financial services. A high 13

burden of proof that federal action is necessary, such as a national financial crisis, should 14

be met before any preemption of state financial services laws and regulations is warranted. 15

Preservation of Dual Banking System 16

NCSL is committed to the preservation of the dual banking system. The dual system 17

enables state governments to apply laws and regulations to banks and thrifts that serve 18

the needs of local economies and that respond to the values and concerns of local 19

citizens. In recognition of the advantages of the dual system to the public and to the 20

health of the financial services industry, NCSL opposes any efforts by the federal 21

government to restrict state authority to charter, supervise, or regulate the powers of state 22

chartered banks and thrifts. NCSL opposes any federal attempts to tax state banks for 23

federal oversight services already performed by the appropriate state banking agencies 24

and departments. Nonetheless, NCSL recognizes that the states have a duty to use their 25

powers responsibly and in a way that does not endanger the deposit insurance system 26

and thereby the nation's financial stability. NCSL acknowledges congressional efforts in 27

the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to limit 28

the unchecked preemption efforts by the Office of the Comptroller of the Currency (OCC) 29

of state financial consumer protections. NCSL urges continued congressional vigilance of 30

~ 27 ~

the OCC and asks the secretary of the Treasury to ensure that the spirit of the Dodd-31

Frank Act in ensuring the states’ role in protecting consumers is not diminished in 32

regulations establishing the new Consumer Financial Protection Bureau. 33

Federal Regulatory Consolidation 34

NCSL recognizes the need for the federal government to reduce the federal regulatory 35

burden that can impede the economic vitality of our nation's financial services industries. 36

In consolidating the federal banking regulators, Congress must ensure that any 37

consolidation does not invalidate the regulatory independence of the dual banking 38

system. 39

NCSL opposes any federal regulatory consolidation plan that would: 40

Preempt, limit or interfere with the rights of states to regulate state chartered 41

banks; 42

Require federal reporting requirements and examinations that duplicate state 43

efforts; 44

Place state chartered banks at a competitive disadvantage with national banks or 45

federal thrifts; and 46

Grant oversight authority for state chartered banks to the OCC, the regulator of 47

national banks. 48

NCSL supports the continued federal oversight by the FDIC and the Federal Reserve of 49

state chartered banks. It would be detrimental to the well-being of the dual banking 50

system for Congress to tamper with present oversight cooperation between state banking 51

departments, the FDIC and the Federal Reserve. 52

Federal Preemption 53

NCSL strongly believes that a high burden of proof must be established before federal 54

preemption of state banking authority is ever justified and that only Congress—and not 55

federal regulatory agencies—can preempt the actions of elected state leaders. NCSL 56

supports the “prevent or significantly interfere with” standard established by the Supreme 57

~ 28 ~

Court and reiterated in Subtitle D of Title X of the Dodd-Frank Act to govern federal 58

preemption of state laws as those laws apply to national banks. NCSL strongly opposes 59

any effort by the OCC to assert its regulatory authority to weaken the standard of 60

preemption or shield national banks and bank operating subsidiaries from state consumer 61

protection laws and enforcement. Moreover, NCSL encourages Congress to eliminate the 62

judicial deference given to the OCC by federal courts in challenges to state financial 63

services laws and to restrain OCC abuse of its regulatory authority to preempt state laws. 64

Dual Chartering of Credit Unions 65

NCSL believes that state credit union supervisors have the primary responsibility for 66

assuring the safety and soundness of credit unions chartered by and operating under 67

state law and regulation. NCSL supports the authority of state governments to determine 68

how state financial institutions must be insured and opposes any efforts by the federal 69

government to preempt states’ authority to govern state deposit insurance requirements. 70

NCSL also acknowledges that states have a responsibility to provide a credible regulatory 71

environment where powers can be exercised in a way that does not endanger the 72

financial solvency of the National Credit Union Share Insurance Fund (NCUSIF). NCSL 73

additionally acknowledges that federal deposit insurance agencies, like the National 74

Credit Union Administration (NCUA), have a legitimate role to play if state authorized 75

powers lead to unreasonable risks for NCUSIF. However, NCUA regulations and policies 76

should be crafted in a way that minimizes the preemption of state authority. NCSL 77

opposes any effort by the Administration and Congress to erode the dual chartering 78

system for credit unions by preempting state credit union laws and regulations that do not 79

adversely impact the financial well-being of state chartered credit unions and thus the 80

NCUSIF. Any preemption of state credit union laws or regulatory authority must be 81

justified only by a clear and certain threat to the credit unions' share insurance fund by 82

those credit unions that are federally insured. 83

Consumer Protection 84

State legislatures and Congress must periodically consider legislation: to ensure 85

consumer access to basic financial services; to protect the privacy of financial consumers 86

~ 29 ~

and the security of their personal financial information; to provide protection for 87

consumers from abusive lending practices; to ensure disclosure of information about 88

credit terms, interest rates, fees, and balances; to regulate branch closing; and to 89

otherwise protect the consuming public. In recognition that this is an area of overlapping 90

federal and state jurisdiction, NCSL will ordinarily not oppose such federal consumer 91

protection measures, provided that there is no preemption of complementary state 92

consumer protection legislation. Federal legislation should not prohibit state legislatures 93

and state regulators from providing additional protections for consumers of financial 94

services. Furthermore, as the Consumer Financial Protection Bureau established in 95

Dodd-Frank commences its role as the federal agency responsible for regulating 96

consumer protection and enforcing applicable federal laws NCSL opposes any action that 97

preempts state consumer protections law or undermines the principles of federalism. 98

Finally, as online financial services continue to grow, clear rules must be established as to 99

which jurisdiction's consumer protections apply to a given transaction. NCSL believes that 100

any such rules should be crafted through a partnership between state and federal 101

regulators and should not place state chartered financial institutions at a disadvantage in 102

the institution’s ability to provide services over the Internet. 103

Financial Services and Economic Development 104

NCSL recognizes that racial, ethnic, or gender discrimination by financial services 105

institutions may have an impact on the ability of residents in distressed communities to 106

obtain financial assistance. State legislators also recognize the need for financial 107

institutions to make safe, sound and profitable investments. NCSL, recognizing the 108

responsibilities that each state has for financial institution regulation and solvency and for 109

providing for fair lending to their constituents, believes that each state legislature has the 110

responsibility to address the unique needs of its state. Likewise, the federal government 111

as regulator of federal financial institutions must make the same determinations and act 112

accordingly. However, Congress must not mandate federal guidelines that impede the 113

states' abilities to regulate financial services. 114

~ 30 ~

Securities Regulation 115

NCSL recognizes that the federal government has an interest in efficient and fair capital 116

markets. NCSL also acknowledges that the states’ securities agencies are indispensable 117

partners with their federal counterparts engaging in the pursuit of fair and efficient capital 118

markets by protecting local investors, workers, and communities by ensuring compliance 119

with securities laws. 120

NCSL is concerned that the preemption of state securities laws and regulations will serve 121

only to erode investor trust in the capital markets by further weakening a system designed 122

to protect investors and putting the financial well-being of hard-working Americans at risk. 123

NCSL opposes such federal preemption and the creation of self-regulatory organizations 124

that usurp state authority. Instead, NCSL supports congressional efforts to expand the 125

restoration of state securities regulators’ authority. 126

Mortgage Industry 127

Currently states regulate a significant portion of mortgage lending. Federalizing this area 128

of supervision will displace the 50-state regulatory system that has rapidly evolved and 129

could erode, or even eliminate, the current authority the states have to approve, supervise 130

and bar mortgage professionals. The local nature of real estate and consumer protection 131

necessitates direct state authority. 132

States, through the Conference of State Bank Supervisors (CSBS) and the American 133

Association of Mortgage Regulators (AARMR), developed the Nationwide Mortgage 134

Licensing System (NMLS) to improve and coordinate mortgage supervision. This state 135

system enhances consumer protection and streamlines the licensing process for 136

regulators and the industry. NCSL supports the NMLS to encourage a more coordinated 137

system of state and federal supervision. 138

FINANCIAL INFORMATION SECURITY 139

NCSL believes that states should continue to play a vital role in protecting the privacy, 140

confidentiality and security of sensitive nonpublic personal financial information. States 141

~ 31 ~

long have sought to balance the economic value of information sharing with reasonable 142

safeguards against the unnecessary disclosure and inappropriate acquisition of sensitive 143

nonpublic personal financial information, such as credit information, account numbers, 144

account balances, and Social Security numbers. Understanding local and regional 145

economic situations and the unique needs of consumers within these markets, states 146

consistently have ensured the protection of sensitive nonpublic personal financial 147

information. 148

State legislatures recognize that financial information security is an area of overlapping 149

federal and state jurisdiction. Therefore, NCSL does not oppose federal baseline 150

standards for the protection of financial information, provided that these standards 151

generally do not preempt complementary state laws. NCSL believes that states should 152

have the authority and flexibility to adopt standards for the acquisition, retention, 153

disclosure and sharing of financial information by and among financial institutions and 154

nonaffiliated third parties that address local concerns or respond in a timely way to 155

incidences of neglect or abuse that may be local or regional in nature. NCSL specifically 156

believes that Congress should preserve state authority to exceed federal baseline 157

standards for information sharing among nonaffiliated third parties. 158

Credit Reporting 159

NCSL acknowledges the benefit of a uniform national credit reporting system to the 160

nation's economy. Therefore, NCSL does not oppose the limited areas that were subject 161

to federal preemption by the 1996 Amendments of the Fair Credit Reporting Act and 162

made permanent by the Fair and Accurate Credit Transactions Act. In doing so, NCSL 163

supports the continued exemption of the state laws that were in existence prior to the 164

1996 Amendments and thus are currently exempted from the preemption provisions. 165

Data Security Breach Disclosure 166

Consistent with NCSL’s general policy for safeguarding financial information, NCSL does 167

not oppose baseline federal data security breach notification standards, provided that the 168

requirements do not preempt state authority to adopt standards that provide affected 169

~ 32 ~

consumers additional protection and notification. NCSL also supports allowing state 170

financial regulators and attorneys general to enforce any new federal data security breach 171

notification standards 172

In the event that Congress decides to preempt state law, NCSL urges that the preemption 173

be narrowly construed to preempt only state laws that are inconsistent with the federal 174

standard while preserving state laws that apply to entities that may be excluded from the 175

federal act. Additionally, should Congress decide to preempt state data security breach 176

notification laws, NCSL would support a strong federal law that would require notification 177

of the affected consumers when sensitive personally identifiable information has been, or 178

is reasonably believed to have been, accessed or acquired. In this instance, exceptions 179

should be made only when it is concluded that there is no significant risk that the breach 180

has resulted in, or will result in, harm to the individual whose information has been 181

breached. 182

~ 33 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

3

POLICY: CORPORATE FORMATIONS 4

5

TYPE OF POLICY: DRAFT POLICY DIRECTIVE 6

7

The ability to regulate and set standards for incorporation law resides within the 8

individual states. Many states rely on the revenue generated by incorporation 9

fees, corporate taxes and other fees as a way to fund many of their public 10

needs. States determine requirements regarding the articles of incorporation and 11

have the ability to tighten and lift barriers for corporate formation. The National 12

Conference of State Legislatures opposes any unwarranted effort at the federal 13

level to preempt state incorporation laws.14

~ 34 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

ENVIRONMENT 3

4

POLICY: CRADLE TO GRAVE ELECTRONICS MANAGEMENT 5

6

TYPE OF POLICY: DRAFT POLICY DIRECTIVE 7

8

The disincentives for reuse and recycling of electronics scrap or e-scrap must be 9

examined and mitigated by all relevant stakeholders. 10

NCSL encourages the full cooperation and assistance of the federal government in 11

state efforts to promote responsible product stewardship and encourage the 12

development of an infrastructure necessary to support the widespread recovery of a 13

broad range of electronic equipment. Any legislative or regulatory action taken at the 14

federal level must recognize the importance of a state-federal partnership in managing 15

the current stream of end-of-life electronics and promote future product stewardship of 16

electronic equipment. 17

~ 35 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

3

POLICY: INSURANCE 4

5

TYPE OF POLICY: DRAFT POLICY DIRECTIVE 6

7

INSURANCE REGULATORY MODERNIZATION 8

The National Conference of State Legislatures (NCSL) is committed to state regulation 9

of the business of insurance. NCSL acknowledges the responsibility of states to adjust 10

state systems to meet the needs of the modern economy. NCSL opposes any proposal 11

to establish either a federal or a dual system of regulation of insurance, to cede any 12

state authority to regulate financial institutions involved in the business of insurance or 13

to obtain Congressional ratification of trade agreements that preempt state regulation of 14

insurance. 15

States and insurance commissioners continue to develop a shared vision of insurance 16

regulatory reform to meet the needs of the modern marketplace while preserving the 17

advantages of the state system. NCSL supports the efforts of states to streamline and 18

simplify insurance regulation. NCSL endorses state participation in the Interstate 19

Insurance Product Regulation Commission, which creates a national state-based 20

system to make regulatory decisions quickly on life insurance products according to 21

uniform national standards. NCSL endorses state participation in the Surplus Lines 22

Insurance Multi-State Compliance Compact (SLIMPACT), an interstate compact to 23

protect and facilitate the collection of premium tax revenue on surplus lines and 24

independently procured insurance placements by the compacting states. 25

NCSL believes that state efforts to enact significant reforms in critical areas represent 26

tremendous progress, and NCSL will continue to support further efforts as states move 27

forward to achieve widespread reform in all areas in the years ahead. 28

~ 36 ~

State-Federal Partnership 29

Individually and at the national level, states work to modernize insurance regulation. 30

However, state legislatures recognize a legitimate federal role in overseeing and 31

promoting well-functioning insurance markets. 32

Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act established 33

The Federal Insurance Office (FIO) within the U.S. Department of Treasury. While 34

NCSL and other state groups were successful in limiting the scope of the FIO’s 35

authority, concern remains that the FIO will serve as a vehicle to promote a greater 36

federal role in the historically state-regulated industry of insurance. 37

Therefore, NCSL opposes any administrative action by the FIO or federal legislation 38

that: relies on wholesale preemption of state authority, would compel state compliance 39

with federal standards or those of any non-governmental third party, or conditions, 40

restricts or redirects state insurance revenues, including insurance premium taxes, fees 41

and fines, either directly or as a condition of a state’s refusal to submit to federal 42

standards or federal efforts to commandeer a state executive branch official to 43

participate in a federal regulatory program. 44

Moreover, some in Congress and industry support federal legislation to establish a 45

single federal regulator of insurance or allow for dual federal and state insurance 46

regulation. NCSL opposes any provision of federal legislation that preempts state 47

authority through the creation of a federal insurance official, commission or entity with 48

the authority to regulate insurance, to implement federal standards, to enforce state 49

compliance with federal standards, or to initiate or participate in judicial proceedings to 50

resolve differences between federal standards and state law. 51

State legislators perform a critical role in the development of insurance public policy. 52

However, despite this important function, state legislators are oftentimes overlooked for 53

service on federal advisory boards and committees related to the regulation of the 54

business of insurance. Recognizing this recurring oversight, NCSL requests an 55

~ 37 ~

enhanced effort from the federal government to incorporate state legislators onto 56

associated insurance advisory panels. 57

Insurance Company Solvency 58

The safety and soundness of insurance companies operating in the United States are 59

the prime objective of state insurance regulation. State legislatures have endeavored to 60

strengthen state insurance departments and to create standards for financial regulation 61

that have improved the solvency of insurance companies. 62

NCSL opposes any proposal to establish federal standards for state solvency regulation 63

that cedes any authority to federal agencies to regulate financial institutions involved in 64

the business of insurance, including congressional ratification of trade agreements that 65

would preempt state regulation of insurance for solvency purposes. Although NCSL 66

continues to support the National Association of Insurance Commissioners’ Financial 67

Regulation Standards and Accreditation Program, NCSL acknowledges that state 68

legislatures and governors have the responsibility to enact policy, which state regulators 69

enforce. NCSL recognizes that interstate compact proposals have the potential of 70

addressing binding uniformity and effectiveness in specific areas of regulation. 71

NCSL also objects to actions taken or contemplated by the Internal Revenue Service or 72

other federal agencies to assert priority claims to the assets of failed insurers. The 73

states should first be allowed to distribute an insolvent company's assets to pensioners, 74

family businesses, other policyholders and others protected by the McCarran-Ferguson 75

Act’s delegation of the business of insurance to the states. 76

In the same vein, NCSL is concerned by federal bankruptcy rulings under the federal 77

bankruptcy code that would allow alien insurers and reinsurers to move certain trust 78

fund assets to bankruptcy proceedings in their domicile country. The trust funds 79

established by alien insurers and reinsurers are to serve as collateral for insurance and 80

reinsurance underwriting in the United States. Federal bankruptcy rulings have allowed 81

such alien insurers and reinsurers to be exempt from state solvency regulation and 82

~ 38 ~

have placed these collateral trust funds out of the reach of state insurance departments, 83

which are solely responsible for solvency protection. NCSL urges Congress to rectify 84

this situation by amending federal law to eliminate or limit this exemption for alien 85

insurers and reinsurers under the bankruptcy code. 86

Insurance Information Security 87

NCSL opposes any federal effort to preempt state laws and regulations or to enact 88

federal standards that address the use of financial and credit information in insurance. 89

INSURANCE FRAUD - FEDERAL CRIMINALIZATION 90

NCSL recognizes the toll that policyholder and claimant initiated fraud has on the cost of 91

insurance and the solvency of the insurer. We applaud the action taken in various states 92

to pass laws that make it more difficult to file a false claim, increase the penalties for 93

those who are guilty of fraudulent activities, and expand state insurance department 94

fraud units. 95

NCSL believes that the prosecution of policyholder and claimant fraud should and must 96

remain in the jurisdiction of state and local law enforcement officials. However, in cases 97

of internal insurer fraud that may be the result of interstate and international 98

conspiracies to defraud, loot or plunder an insurance company, states and the federal 99

government should cooperate to prosecute such criminal activity. 100

As a result of financial services modernization, the various federal and state financial 101

institutions regulators need to coordinate anti-fraud activities. However, federal 102

legislation to assist the coordination of state and federal anti-fraud activities should not 103

unnecessarily preempt state anti-fraud laws and regulations nor grant audit or subpoena 104

authority to a federal entity over a state agency operating under appropriate state 105

constitutions and laws. 106

NCSL's endorsement of federal involvement in the criminal prosecution of certain kinds 107

of insurance fraud does not diminish our support for continued state regulation of the 108

~ 39 ~

insurance business. Federal criminal sanctions will assist state regulators in state efforts 109

to prevent future insolvencies. 110

EQUAL ACCESS TO FBI CRIMINAL HISTORY RECORDS 111

State regulators should have efficient access to the Federal Bureau of Investigation’s 112

(FBI) Criminal Justice Information System in order to establish dependable procedures 113

for licensing officers, directors, and agents of insurance companies across the United 114

States. 115

NCSL calls on Congress to give state insurance regulators statutory access to FBI 116

fingerprint files. This information is currently available to federal and state banking and 117

securities regulators. Access will help safeguard insurance consumers from the 118

unnecessary risk of having known fraud artists or violent offenders engaged in the 119

insurance business. 120

NATURAL DISASTER MITIGATION AND INSURANCE 121

NCSL urges Congressional action that would: (a) provide federal grants, tax credits or 122

deductions to assist consumers to strengthen their homes to better withstand 123

catastrophic natural disasters; and (b) create a commission to determine what other 124

action is necessary and appropriate to support and enhance the ability of existing 125

insurance and reinsurance mechanisms to cope with catastrophic natural disasters. 126

However, any such action must not displace private sector risk transfer mechanisms, 127

adversely impact a state's ability to levy premium taxes, regulate the business of 128

insurance and set solvency standards for property and casualty insurers. 129

TERRORISM RISK INSURANCE 130

NCSL requests Congress work with state insurance regulators to ensure that the 131

property and casualty insurance and group life insurance industries develop the 132

products to protect Americans from financial losses associated with terrorism and to 133

ensure an available and affordable insurance market for American consumers and 134

businesses. 135

~ 40 ~

NCSL continues to believe that any reauthorization of the Terrorism Risk Insurance Act 136

should recognize the temporary nature of the program, and therefore encourages efforts 137

to further promote development of the private insurance markets. Any federal plan for a 138

temporary and limited federal backstop for terrorism insurance coverage must not 139

adversely impact a state’s ability to levy premium taxes, regulate the business of 140

insurance and set solvency standards for property and casualty and group life insurers. 141

~ 41 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

3

POLICY: INTERNET & ELECTRONIC COMMERCE 4

5

TYPE OF POLICY: DRAFT POLICY DIRECTIVE 6

7

THE INTERNET AND ELECTRONIC COMMERCE 8

The Internet defies a detailed one-size-fits-all approach to public policy and regulation. 9

America's federal and state lawmakers, as well as policy makers from other countries 10

should be guided by principles that foster the Internet's development while protecting 11

the security and privacy of individual users. 12

Our nation's state legislatures are well aware of the impact that access to the Internet 13

and electronic commerce have on the economic vitality of our states and communities. 14

State legislatures also recognize that the marketplace for electronic commerce is not 15

just in the United States but is present in the vast global market. State legislatures share 16

the concern of many in Congress that ill-conceived over-regulation and taxation of the 17

Internet and electronic commerce services could harm our nation's ability to compete 18

globally. However, state legislatures also recognize that they have an obligation to act, 19

when and if necessary, to protect the general welfare of their constituents. As the use of 20

the Internet continues to expand, any future or existing regulations must be balanced 21

against market forces in a competitive and technologically neutral manner, as 22

government must not choose the winners or losers of the digital age. 23

Nothing in this policy statement is to be construed as limiting or affecting the right of any 24

state to regulate alcohol according to its local norms and standards pursuant to the 21st 25

Amendment. 26

NCSL opposes unnecessary or unwarranted federal legislation or regulation that would 27

impede efforts by states to promote access to the Internet, enhance competition or 28

~ 42 ~

increased consumer choice or ensure the security of personal information of consumers 29

conducting electronic commerce transactions. 30

The National Conference of State Legislatures (NCSL) supports the following principles 31

in formulating laws and regulations that impact the Internet and electronic commerce: 32

Privacy and Security 33

Every American should be empowered to protect their privacy and personal information 34

from intrusion or piracy. While NCSL recognizes that there is a need for Congress to act 35

to establish a national policy to protect the personal information of Americans, state 36

legislatures, in the absence of any action by Congress and the federal government, 37

have moved to fill the void. NCSL calls upon the Congress to enact federal Internet 38

privacy legislation that ensures the security of Americans’ personal information with the 39

least amount of government regulation as possible. However, NCSL opposes federal 40

legislation that seeks to preempt existing state statutes and regulations governing 41

privacy protections and security for non-Internet based transactions. 42

Free Speech 43

The Internet allows people to communicate and share ideas with others with an ease 44

never before possible. Federal government policy should rigorously protect freedom of 45

speech and expression on the Internet, but not restrict states or local governments from 46

oversight protecting freedom of speech. New technologies should adequately enable 47

individuals, families and schools to protect themselves and students from 48

communications and materials they deem offensive or inappropriate. State law 49

enforcement, with federal assistance and resources, must be able to enforce criminal 50

statutes against predators that use the Internet to harm or abuse children. 51

Self-governance 52

NCSL requests the Congress to maintain the current self-governance approach that 53

allows the competitive marketplace to drive broadband and broadband-related 54

applications development and deployment. Congress should avoid adopting new 55

~ 43 ~

mandates and provide the Federal Communications Commission (FCC) with defined 56

and limited authority to oversee, but not proactively intervene in, the broadband Internet 57

marketplace consistent with principles that focus on assessing whether the market 58

continues to ensure that consumers can: 59

(1) receive meaningful information regarding their broadband service plans; 60

(2) have access to their choice of legal Internet content, subject to the limits on 61

bandwidth and quality of service of their service plan; 62

(3) run applications of their choice, subject to the needs of law enforcement and 63

the limits on bandwidth limits and quality of service of their service plans, as long 64

as they do not harm the provider’s network or interfere with other consumers’ use 65

of the broadband service; and 66

(4) be permitted to attach any devices they choose to their broadband connection 67

at the consumer’s premise, so long as they operate within the limits on bandwidth 68

and quality of service of their service plans and do not harm the provider’s 69

network, interfere with other consumers’ use of the broadband service, or enable 70

theft of services. 71

Consumer Protection 72

Industry self-regulation has made an important contribution to the development of 73

electronic commerce. Industry technologies and best practices, combined with the 74

enactment of strong state laws which outlaw deceptive practices and fraudulent online 75

behavior, are essential elements in promoting electronic commerce and enhancing 76

consumer protection. Privacy and consumer protection continue to be priority issues in 77

state legislatures. 78

NCSL supports the efforts of state legislatures to develop new policy initiatives to 79

protect consumers online, especially when the federal government fails to respond to 80

~ 44 ~

consumers’ concerns. NCSL also recognizes that because of the global nature of the 81

Internet that states must seek cooperative federal action to further enhance consumer 82

protection, privacy and information security. Federal legislation must ensure the 83

authority of state attorneys general to enforce federal statutes protecting consumers. 84

However, NCSL opposes any attempt by Congress to restrict the states’ ability to 85

impose criminal and/or civil penalties for illegal activity that may occur over the Internet. 86

Growth 87

Public policies must be designed to foster continuing expansion of useful and affordable 88

bandwidth, encourage development of innovative technologies and promote broad 89

universal access. Federal and state governments must work together to ensure that all 90

Americans, regardless of where they live, have competitive access to high-speed 91

broadband technologies. Government must work to guarantee open and competitive 92

markets for broadband services. 93

Information Technology 94

Information technology (IT) is a global industry. A strong American IT industry enhances 95

and strengthens the economic well being of our states and nation. 96

States and the federal government must work together to ensure a climate that allows 97

America’s IT companies to continue to perform research and technology development, 98

to generate innovative new products and services and to solve customer problems. 99

States must have the unfettered ability to continue to seek ways to use IT to better the 100

lives of their residents. Therefore, NCSL opposes any attempt by the federal 101

government to restrict or penalize states’ efforts to utilize information technology 102

services and products that allow states to provide more efficient government services to 103

residents at lower costs to taxpayers. 104

Internet Gambling 105

Congress must respect the sovereignty of states to allow or to prohibit Internet gambling 106

by their residents. 107

~ 45 ~

Electronic Commerce and Taxation 108

Government policies should create a workable infrastructure in which electronic 109

commerce can flourish. Policy makers must resist any temptation to apply tax policy to 110

the Internet in a discriminatory or multiple manner that hinders growth. Government tax 111

systems should treat transactions, including telecommunications and electronic 112

commerce, in a competitively neutral and non-discriminatory manner. The federal 113

government and America’s industries should work with state legislatures in ensuring 114

equal tax treatment of all forms of commerce and should encourage state efforts to 115

achieve simplification and uniformity through the streamlining of state and local sales 116

and telecommunications tax systems. 117

NCSL supports the reform of the discriminatory taxation of communications services 118

and believes that if state and local governments were to take such action, the need for 119

the federal moratorium on Internet access would cease to exist. 120

Since 2003 NCSL has maintained a neutral position on the extension of the moratorium 121

and continues to do so. However, should the moratorium be extended, it is consistent 122

with NCSL policy that the moratorium be competitively neutral and apply equally to all 123

media used to access the Internet. 124

VIDEO FRANCHISE REFORM 125

Innovation and convergence of existing technologies are radically expanding 126

communications and information services, blurring distinctions between telephone, 127

Internet services, cable, wireless and satellite. These rapid changes often outpace 128

abilities of federal, state and local regulatory regimes to adapt. It is important that video 129

regulatory policy assure that like services are treated alike, investment is encouraged, 130

and services are in a non-discriminatory manner. 131

State Administration Will Preserve State Authority 132

Local jurisdictions are the creation of either state constitutions or law. The powers that 133

these political subdivisions of the state exercise were granted to them over time by state 134

legislatures. Those local jurisdictions that have franchise authority have it as a result of 135

~ 46 ~

state legislation or the state constitution. Therefore, any attempt by Congress to 136

preempt current local franchise authority is a preemption of state sovereignty. 137

While NCSL rarely advocates the consideration of legislation in state legislatures, NCSL 138

has at times, when states are facing a crisis or a serious threat of federal preemption, 139

urged state legislatures to take action. NCSL endorses efforts that remove barriers to 140

entry for or inequity of regulation among video competitors and foster additional 141

consumer choices in the video marketplace ultimately ensuring competitive neutrality. 142

Government should encourage competition and consumer choices for broadband and 143

video services and promote the deployment of broadband services and technologies. 144

Fees and Taxation of Video Providers 145

Franchise fees today are levied, imposed or collected as a percentage of gross 146

revenues, used for general revenue purposes and not based on the actual direct and 147

identifiable costs of any benefit to the entity that pays the fee. To the extent such fees 148

are intended as payment for use of public rights-of-way, that fee should be limited to the 149

actual, direct and identifiable cost of such use, and that portion of the fee should be 150

applied only to those who use the rights-of-way. Franchise fees should be collected and 151

administered by one central agency per state.152

~ 47 ~

COMMITTEES: EXECUTIVE COMMITTEE TASK FORCE ON STATE & 1

LOCAL TAXATION 2

COMMUNICATIONS, FINANCIAL SERVICES & 3

INTERSTATE COMMERCE 4

5

POLICY: REMOTE COMMERCE 6

7

TYPE: DRAFT POLICY DIRECTIVE 8

9

The 1967 Bellas Hess and the 1992 Quill Supreme Court decisions denied states the 10

authority to collect sales and use taxes by out-of-state sellers that have no physical 11

presence or nexus in the taxing states, holding that legislation by Congress is required 12

to create such authority. One recent report has estimated that states will lose over $23 13

Billion in uncollected sales tax revenues in 2012, of which $11.4 billion is from electronic 14

commerce, and that annual losses will continue to grow as more commerce is 15

conducted online. This disconnect with remote commerce threatens to erode the 16

viability of the sales tax as a revenue source for state and local governments. States 17

have requested Congressional action, but Congress has failed to close this large 18

loophole in the states’ sales and use tax system. 19

NCSL calls on Congress to require all sellers, regardless of location, to collect sales 20

taxes and remit them to the state to which they are due. Further, NCSL supports a small 21

business exception. 22

Acknowledging that the complexity of multiple tax rates places a significant burden on 23

out-of-state sellers, twenty-four states joined the Streamlined Sales Tax and Use 24

Agreement and passed laws to simplify sales and use tax systems, remove burdens to 25

interstate sellers, and collaborate on the collection of taxes due to them. 26

~ 48 ~

NCSL calls on Congress to pass legislation overturning the Bellas Hess and Quill 27

decisions, affirming the states’ sovereign right to enter into such agreements, and 28

granting states the authority denied to them by the Court’s decisions.29

~ 49 ~

COMMITTEES: COMMITTEE ON BUDGETS AND REVENUE 1

COMMITTEE ON COMMUNICATIONS, FINANCIAL SERVICES 2

AND INTERSTATE COMMERCE 3

4

TITLE: STATE SOVEREIGNTY IN ONLINE GAMING 5

6

TYPE: RESOLUTION - DRAFT 7

8

The National Conference of State Legislatures (NCSL) believes the federal government 9

must respect the sovereignty of states to allow or to prohibit Internet gambling by their 10

residents. 11

The recent ruling by the United States Justice Department on the Federal Wire Act of 12

1961, 18 U.S.C. §1084, clarifies that intra-state online gambling is lawful. Any effort by 13

Congress or the administration to reverse this ruling is preemptive and diminishes the 14

flexibility of state legislatures to be innovative and responsive to the unique needs of the 15

residents of each state. 16

NCSL requests Congress consider the perspective of the states as it examines this 17

issue and asks that it involve state legislators in any federal efforts that seek to reform 18

the regulation of online gaming. NCSL strongly opposes any effort by the federal 19

government to overturn the Justice Department’s ruling or consideration of legislation 20

overruling state authority by legalizing or regulating gambling at the federal level. NCSL 21

also requests that federal lawmakers be respectful of state legislatures that prohibit 22

online gaming or other forms of gaming within their state.23

~ 50 ~

COMMITTEES: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

BUDGETS AND REVENUE 3

TASK FORCE ON STATE AND LOCAL TAXATION 4

POLICY: NATIONAL CONFERENCE OF STATE 5

LEGISLATURES SUPPORTS AND URGES 6

ENACTMENT OF THE MARKETPLACE FAIRNESS 7

ACT 8

9

TYPE OF POLICY: DRAFT RESOLUTION 10

WHEREAS, the 1967 Bellas Hess and the 1992 Quill Supreme Court decisions 11

denied states the authority to require the collection of sales and use taxes by out-12

of-state sellers that have no physical presence in the taxing state; and 13

WHEREAS, the combined weight of the inability to collect sales and use taxes 14

due on remote sales through traditional carriers and the tax erosion from 15

electronic commerce threatens the future viability of the sales tax as a stable 16

revenue source for state and local governments; and 17

WHEREAS, a report from the Center for Business Research at the University of 18

Tennessee has estimated that in fiscal year 2012, states will lose over $23 billion 19

in uncollected sales tax revenues from out of state sales; and 20

NOW, THEREFORE BE IT RESOLVED THAT, the National Conference of State 21

Legislatures supports the Marketplace Fairness Act, introduced by Senators 22

Durbin of Illinois and Enzi of Wyoming that authorizes each member state under 23

the Streamlined Sales and Use Tax Agreement to require all sellers not 24

qualifying for a small-seller exception to collect and remit sales and use taxes 25

with respect to remote sales and allows a state that is not a member state under 26

the Agreement to require sellers to collect and remit sales and use taxes with 27

~ 51 ~

respect to remote sales sourced to such state if the state adopts and implements 28

certain minimum simplification requirements; and 29

BE IT FURTHER RESOLVED THAT, the National Conference of State 30

Legislatures calls upon the Congress to move swiftly to consider and approve the 31

Marketplace Fairness Act that grants states collection authority and provides $23 32

billion in fiscal relief to the states without a dime coming from the U.S. Treasury; 33

and 34

BE IT FURTHER RESOLVED THAT, the National Conference of State 35

Legislatures urges the President to sign the Marketplace Fairness Act that grants 36

states collection authority into law, upon its passage by the Congress; and 37

BE IT FURTHER RESOLVED THAT, a copy of this resolution be sent to the 38

President of the United States and to all the members of Congress. 39

~ 52 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES & 1

INTERSTATE COMMERCE 2

POLICY: RESOLUTION SUPPORTING INTELLECTUAL 3

PROPERTY (IP) RIGHTS AND PROTECTIONS TO 4

PROMOTE PRODUCTIVITY, COMPETITIVENESS, 5

JOBS, AND PUBLIC HEALTH 6

TYPE OF POLICY: DRAFT RESOLUTION 7

WHEREAS, Intellectual property (IP) rights and innovation are primary drivers of 8

job creation and America’s economic growth. 9

10

WHEREAS, over 55 million jobs are directly and indirectly supported by IP-11

intensive industries as a significant driver of GDP, exports, and wages in every 12

state of the Union. 13

WHEREAS, IP-intensive industries are responsible for $5.8 trillion in private 14

sector output (GDP). 15

WHEREAS, in a 2012 economic study by the U.S. Department of Commerce that 16

ties employment and value-added numbers to IP-intensive industries, IP-17

intensive industries pay workers 42% higher wages than those of non IP-18

intensive industries. 19

WHEREAS, IP-intensive industries drive American exports accounting for 20

approximately $1 trillion (74% of total U.S. exports in 2011) 21

WHEREAS, given the important role that IP plays in sustaining a long-term 22

economic growth, policymakers should give high priority to fostering innovation 23

and protecting intellectual property; and 24

~ 53 ~

WHEREAS, protecting and enforcing the IP rights of businesses are critical to 25

advancing global economic recovery, driving competitiveness and export growth, 26

and creating high-quality jobs; and 27

WHEREAS, the National Conference of State Legislatures believes that 28

widespread efforts to promote innovation and intellectual property protection are 29

critical to improving the nation’s long-term competitiveness in a global market, 30

and to achieving certain socioeconomic improvements in the quality of American 31

life; and 32

NOW, THEREFORE LET IT BE RESOLVED, that the National Conference of 33

State Legislatures calls upon all levels of governments to work cooperatively with 34

the private sector, nonprofits, and academia to create, develop and implement 35

robust pro-IP awareness and enforcement; and 36

BE IT FURTHER RESOLVED, the National Conference of State Legislatures 37

supports efforts to ensure the IPEC has sufficient staff, budget, and authority to 38

fulfill the obligations and achieve the goals outlined in the PRO-IP Act and the 39

National IP Strategy; and 40

BE IT FURTHER RESOLVED, the National Conference of State Legislatures 41

support robust IP protection and enforcement provisions in trade agreements and 42

their implementation (specifically the Trans-Pacific Partnership Agreement (TPP)/ 43

KORUS); and 44

BE IT FURTHER RESOLVED THAT, the National Conference of State 45

Legislatures supports existing efforts to shut down the top illegal rogue websites 46

globally that are willfully selling counterfeit goods and facilitating digital theft; and 47

BE IT FURTHER RESOLVED THAT, a copy of this resolution be sent to the 48

President of the United States and all members of the 112th Congress. 49

~ 54 ~

COMMITETE: COMMUNICATIONS, FINANCIAL 1

SERVICES & INTERSTATE COMMERCE 2

POLICY: NCSL OPPOSES FEDERAL 3

CONTACTLESS TECHNOLOGY 4

MANDATES FOR STATE ISSUED 5

IDENTIFICATION DOCUMENTS 6

TYPE OF POLICY: DRAFT RESOLUTION 7

WHEREAS, the federal government is taking a more active role in influencing 8

and determining the technological standards for state issued identification 9

documents such as drivers licenses. The federal government is attempting to 10

influence or mandate the technological standards of sovereign state issued 11

identification documents through the direct acts of Congress, the rule-making 12

processes of the Departments of State and Homeland Security, or through both 13

official or informal agreements with international organizations or initiatives such 14

as the American Association of Motor Vehicle Administrators (AAMVA), the 15

Security and Prosperity Partnership (SPP), and the United Nation’s agency 16

known as the International Civil Aviation Organization (ICAO). 17

WHEREAS, an example contrary to the tenets of federalism, the initial version of 18

the federal REAL ID Act as introduced would have required the states to enter 19

into the AAMVA compact known as the Driver’s License Agreement (DLA). This 20

compact as drafted would put the non-governmental 501c3 AAMVA, which has 21

foreign voting members, in charge of making the technology decisions for a 22

state’s sovereign drivers licenses. Such federal decisions would allow for 23

AAMVA, and not the States, to determine whether or not bar code or contactless 24

technology must be employed, whether or not such data could be encrypted, 25

what biometrics would need to be encoded, and whether or not the data could be 26

shared with foreign governments. 27

~ 55 ~

WHEREAS, an example contrary to the tenets of federalism, the final rules for 28

both REAL ID and the Western Hemisphere Travel Initiative (WHTI) were 29

published in 2008, and mandated standards onto states’ driver’s licenses for 30

them to be acceptable for certain uses. The Department of Homeland Security is 31

currently requiring states to embed unencrypted contactless technology into a 32

state’s drivers licenses in order for citizens to be able to use them to get back 33

into the United States at international ground crossings. This places specific 34

technological choices as having equal importance over the roles of identification 35

and proof of citizenship, while leaving states with no flexibility or options in this 36

area if they want to pursue an Enhanced Drivers License (EDL) that does not use 37

contactless technology, wishes to employ encrypted contactless technology, or 38

wishes to employ shorter range contactless technology than what is being 39

mandated. The goal of WHTI deals simply with providing proof of citizenship, not 40

dictating the technology by which that proof must be conveyed. 41

WHEREAS, an example contrary to the tenets of federalism, the final rules for 42

REAL ID, page 86, make clear that the federal government is not satisfied with a 43

onetime mandate and wishes to have this control in perpetuity going forward: 44

“Moreover, in the future, DHS, in consultation with the States and DOT, may 45

consider technology alternatives to the PDF417 2D bar code that provide greater 46

privacy protections after providing for public comment”. The “final rules” are 47

therefore not really final, and it is unacceptable that such technological decisions 48

could be made by requiring only non-binding consultation with States, especially 49

when there is debate between the States and the federal government as to what 50

really constitutes optimal privacy and security options for their driver’s licenses. 51

WHEREAS, a driver’s license is a sovereign state document, and whether or not 52

bar code or contactless technology must be employed, should remain a State 53

decision. The federal government should not use the WHTI, a policy of its own 54

~ 56 ~

devising, as an economic cudgel to coerce states into accepting such 55

technological standards onto their sovereign driver’s licenses. 56

THEREFORE, LET IT BE RESOLVED, that the NCSL will urge the President, 57

Congress, and the Departments of State, Transportation, and Homeland Security 58

to not pass law, allow for federal policy, use international organizations, or enter 59

into international agreements that mandate or attempt to indirectly influence the 60

use of contactless technology in state or local identity documents.61

~ 57 ~

COMMITTEE: COMMUNICATIONS, FINANCIAL SERVICES &

INTERSTATE COMMERCE

POLICY: NCSL RESOLUTION IN SUPPORT OF STATE

PUBLIC AFFAIRS NETWORKS

TYPE OF POLICY: DRAFT 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

~ 58 ~

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.