June 2017

Legislative and Regulatory Highlights from State and Local Governments


CaliforniaSB 33, which would make some consumer contracts for good or services with a financial institution unenforceable if they include an arbitration clause, passed the Senate on May 30 and was read for the 1st time in the Assembly May 31.  SIFMA is part of a broad coalition opposing the bill. 

ConnecticutHB 7161, which would require service providers of 403(b) retirement plans to disclose a variety of fees that could pose a conflict of interest, passed the House as amended May 2 and is awaiting Senate floor consideration. 

ConnecticutHB 6992, which would, among other things, require financial planners to disclose upon request whether they have a fiduciary duty to the consumer, passed the House as amended and is awaiting Senate floor consideration.  The bill is limited to persons offering financial planning or investment advice ‘where such activity is not otherwise regulated by state or federal law.’

FloridaHB 747, to exempt securities BDs from mortgage brokering regulations in certain circumstances, has passed both houses as amended May 4. SIFMA urged the Gov. to sign the bill having testified in support in March.  

IllinoisSB 983, which would create the Limitations on Forced Arbitration Act, was heard in Judiciary May 9.

KansasSB 23, which would consolidate criminal prosecutions for fraud and abuse under the AG and establish the office of the securities commissioner as a division under the insurance commissioner, was presented to the Gov. May 22.

LouisianaHB 17 would authorize disclosure of brokerage account info of a decedent by a brokerage firm to a rep of the decedent's estate upon sufficient proof of the death of the decedent and the relationship with the decedent.  The House concurred with Senate amendments Jun. 1.   

LouisianaSB 4, which would exempt IA reps who have been registered for 10+ yrs. and were registered with the state on or before Aug. 31, 2016 from new exam requirements, was sent to the Gov. May 24 (effective upon signature). 

MarylandHB 1134, which would establish the MD Financial Consumer Protection Commission, was enacted into law May 27 as Ch. 781.  The Commission would: 1) assess the impact of federal financial industry laws and regs, budgets, and policies, including changes to federal financial regulators as well as the Dodd-Frank 2) issue recommendations for federal and State actions. The commission must submit 2 reports with its findings and recommendations to the Gov. and GA by the end of Dec. 2017, and Dec. 2018. The law took effect Jun. 1, 2017, and terminates Jun. 30, 2019.

NevadaSB 383, which would revise the definition of financial planner to remove the exclusions for BDs & IAs, was delivered to the Gov. May 27.  The bill had previously been amended in committee to eliminate an additional insurance requirement and to grant the Securities Administrator the ability to draft regs defining the fiduciary duty obligation.  SIFMA opposes the legislation and submitted a veto request to the Gov. May 26. 

NevadaSB 515, to require that money received by the Securities Administrator for investigative costs and attorneys’ fees in connection with an action be deposited in the State General Fund for unrestricted use, was approved by the Gov. May 31 as Ch. 253.

New HampshireSB 85, which would make various changes to the Uniform Securities Act, passed the House by voice vote on Jun. 1.

New JerseyA. 2979 / S. 2240 would require non-fiduciary investment advisors to disclose to clients that they do not have a fiduciary relationship with the client, and are not required to act in the client's best interests.  A. 2979 was scheduled to be heard in Financial Institutions & Insurance Jun. 1; S. 2240 was introduced & referred to Commerce May 23.  SIFMA submitted a letter of opposition.

New York StateA. 2464, which would mandate greater levels of disclosure by non-fiduciaries that provide investment advice, was reported out of Judiciary and sent to Codes May 16.  SIFMA submitted a memo of opposition.

New York State.   A. 7175 would require private arbitration organizations involved in 50+ consumer arbitrations/year to collect, publish at least quarterly, and make available to the public in a computer-searchable database certain info relating to such arbitrations.  This bill was heard in Transportation May 16. 

New York StateA. 5240, which would prohibit mandatory arbitration agreements in consumer and employment contracts, advanced to 3rd reading May 18.

New York StateA. 6372 / S. 6225 would provide that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and the arbitrator's findings of fact and conclusions of law. A. 6372 passed the Assembly and was referred to Senate Judiciary May 3.  S. 6225 was intro’d and referred to Judiciary May 11.  SIFMA submitted a memo of opposition.

New York StateA. 6893, which would require employment and consumer dispute arbitrations to be submitted to neutral 3rd-party arbitrators, and establish prohibited arbitration agreements and provisions, was heard in Codes May 16.

New York StateA. 7445 / S. 6484 would add several new provisions on arbitration for consumer transactions, and includes font requirements and a private right of action.  A. 7445 went to 3rd reading May 18. S. 6484 was referred to Judiciary May 24.

OregonSB 96, to require BDs and state IAs to maintain Errors & Omissions insurance of at least $1M as a condition of state licensure, passed both houses as of Jun. 1.


Taxes, Fees & Budget

CaliforniaSB 567, as intro’d, would have phased out the water’s edge election and prevented corporations from deducting compensation above $1M for CEOs or other specified employees.  SIFMA and others opposed.  The bill was subsequently amended to include just the executive compensation component.  SIFMA is part of a large coalition that continues to oppose the bill.  The bill was moved to the Inactive File on June 1 but could be resurrected at any time. 

ColoradoHB 1216, which would create the sales and use tax simplification task force, was sent to the Gov. May 24.

ConnecticutHB 7320, to require the Commission on Economic Competitiveness to study the tax, revenue and bonding policies of the state and identify legislative changes to improve the business climate and economic opportunities in the state, was reported out of the Legislative Commissioners’ Office May 9.

Florida HB 7099, which would incorporate the 2017 version of the Internal Revenue Code, passed both houses as amended May 3 and was sent to the Gov. May 18.

Illinois.  Carried interest legislation SB 1719 was amended May 23 with Senate Floor Amendment 2 and passed the Senate.‎ The IL GA broke for recess without calling SB 1719 for a vote May 31‎; the schedule for their overtime return is not yet set. 

IllinoisHB 3419 / SB 1798 would provide that anyone formed or incorporated in a foreign tax haven may be a member of a unitary business group regardless of where it conducts business. HB 3419 passed both houses May 25.  SB 1798 was amended and recalled to 2nd reading May 5.

Louisiana.  The regular session is slated to end on Jun. 8th, so most are predicting that another special session will need to be called to address tax and budget issues.  This will be the 4th special session in the last 24 months.  Tax bills that will be discussed include: HB 355, HB 356, HB 357, HB 358 , HB 360, HB 361, HB 601 & HB 673.

MarylandSB 823, to establish a Task Force to Study Tax Sales in MD to examine the tax sale system to maximize resources, was approved by the Gov. May 25 as Ch. 616.  

MassachusettsSB 1555, which would require financial institutions and publicly held corporations whose compensation ratio exceeds 100:1 to pay an additional 2% of the corporation's net taxable income, will be heard in the Joint Committee on Revenue on June 27.

Minnesota.  The Omnibus Tax bill HF 1-A signed by the Gov. May 30 has two provisions of note:  a new broader definition of Financial Institutions in Sec. 4 of Art. 1, which includes non-corporate entities; and an income tax benefit for contributions made to any qualified 529 plan (up to $1.5K single/$3K joint), in Sec. 15 of Art. 1. 

MissouriSB 285, to phase down the corporate income tax rate from 6¼ % to 4% if net revenue targets are met, died in the Senate upon adjournment May 12. 

MontanaHB 550, to place limits on the net operating loss deduction, was signed by the Gov. as amended May 22. 

New HampshireSB 16 would reauthorize a legislative commission to study apportionment of gross business profits and report findings by Nov. 1, 2017.  The House passed an amended version in early May, the Senate concurred May 11 and the bill was enrolled.

New JerseyS. 3159, which would provide gross income tax exclusion for capital gains from the sale of certain securities by qualified businesses that result in net positive benefit to State, was intro’d and referred to Senate Budget & Appropriations May 8. 

North CarolinaSB 628, re-referred to Rules & Operations May 24, would make several changes to the tax code.

North CarolinaSB 257, NC’s budget bill that would cut the personal income tax rate & cut corporate income tax rate over 2 years, passed both houses with amendments Jun. 2.

OregonSB 28, to shift OR from a ‘Cost of Performance’ state to a ‘Market Based’ state for apportionment of income from the sale of services and intangible goods, passed the Senate May 30 and was sent to the House.

OregonHB 2019, which would require the Dept. of Revenue to submit corporate tax return info to Legislative Revenue, was heard in Revenue May 24.

OregonHB 2087, which would expand the taxpayer bill of rights, was heard in Revenue May 30.

OregonHB 2275, which would redefine income subject to apportionment to align with the Multistate Tax Commission model, was signed by the Gov. May 15 as Ch. 43.

Rhode IslandSB 259, which would establish a 19% carried interest fee for investment management services to tax the carried interest income of hedge fund and private equity investors as traditional ordinary earned income, was heard in Senate Finance Jun. 1 and was recommended to be held for further study.  

TennesseeSB 132 / HB 41, which would have reduced the $400 professional fee tax by $80/yr. beginning in FY 2018 and phase the tax out entirely by FY 2022, did not pass prior to adjournment but will be carried over into 2018. 

TexasHB 28, which would have used certain surplus state revenue to phase out the franchise tax, passed the House but died in the Senate upon adjournment. 

TexasSB 17, which would have decrease the franchise tax rate in certain instances, passed the Senate but died in House committee upon adjournment. 


State Run Retirement Savings Plans for Private Workers

Federal Update.  In spite of the Federal CRA passage, some states, including CA, IL, CT, MD & OR, have vowed to move forward with state-run plans for private sector workers.

Colorado.  The legislature adjourned May 10, so HB 1290, a mandatory-on-employer auto-IRA plan which passed the House but was postponed indefinitely in Senate Comm. April 26, is now dead.  SIFMA had submitted a letter of opposition. 

HawaiiHCR 38 / SCR 16, which would have convened a legislative working group to investigate and identify strategies to promote greater retirement savings for private sector employees, died when the legislature adjourned.  SCR 16 had passed the Senate.  HCR 38 did not make it out of the House

IllinoisHB 2360, to amend the IL Secure Choice Program to require a default contribution rate of 3% to 6% of an enrollee’s wages (rather than 3%) and begin the Program in 2018, rather than July 2017, was sent to the Gov. Jun. 1. 

NevadaAB 430, which would create a task force to study the retirement security of Nevadans and consider the creation of a retirement savings plan for private sector workers, was amended and reported out of Comm. May 23.

New JerseyA. 4853, which would establish a Garden State MEP with no reference to the DOL safe harbor rule, no employer mandate, and be open to individuals, was intro’d May 18.   

North CarolinaH. 633, referred to Pensions & Retirement Apr. 10, is a state-run bill which appears to be different from the typical secure choice bills in that it does not have an employer mandate or references to the DOL safe harbor rule; SIFMA commented.    

OregonHB 2163 which would permit opt-out, rather than fully voluntarily opt-in, deductions from employees’ wages for contributions to certain retirement plans, had a hearing in Business & Labor Apr. 14.   

TennesseeSB 948 / HB 1194, the Voluntary Employee Retirement Accounts Program Act with bipartisan sponsorship, did not move this year but will carry over to next year. 

VermontSB 135, which seeks to promote economic development and would, among other things, adopt and implement a voluntary MEP for private sector employers, passed both houses May 18 after being conferenced.

Washington StateSB 5675, signed by the Gov. Apr. 19 as Ch. 69, would amend the existing Small Business Retirement Marketplace law to permit de minimus fees. 


Unclaimed Property

Delaware.   SB 79, heard in Banking, Business & Insurance May 17, would make corrections and changes to SB 13 (81 Del. Laws, c. 1), which was signed Feb. 2, 2017. 

FloridaHB 7045, which would remove the scheduled repeal of unclaimed property exemption from public records, was approved by the Gov. May 23 as Ch. 33.

Florida.   HB 681, which would repeal provisions for a surplus trustee in the case of surplus funds following a mortgage foreclosure, died in Gov’t Oversight & Accountability May 8.

FloridaSB 536, which would amend FL unclaimed property law regarding judicial sales and reporting certain unclaimed property as surplus, died in Appropriations May 5.

IllinoisHB 2603, which would create the Revised Uniform Unclaimed Property Act, was re-referred to Rules Mar. 31.  The Unclaimed Property Holder’s Coalition, which includes SIFMA, sent a letter of opposition to Rules May 31.

New York StateA. 1881, which would make several changes to the unclaimed property law, including raising the dollar thresholds triggering reporting and certified mailing requirements, passed the Assembly May 17 and was referred to Senate Finance.

Rhode IslandHB 5743, as amended, would facilitate info sharing between state agencies on unclaimed property, tax collection, and pension benefit monitoring.  It passed the House Apr. 25 and was referred to Senate Finance May 30; companion SB 638 was heard in Finance May 2.

TennesseeHB 420, which updates the state’s unclaimed property law to incorporate some Uniform Law Commission recommended changes, was signed by the Gov. May 25. 

TexasHB 2964, to set the dormancy trigger for shares of mutual funds to the date of the last investment or reinvestment in the fund or the last payment to the owner, was signed by the Gov. May 26. 

West VirginiaHB 2868, which would clarify that abandoned property owed by an insurer on a life or endowment insurance policy or an annuity that has matured or terminated, are guided by policies of the Insurance Commissioner, passed the Senate as amended Mar. 28 and was sent to the House for concurrence.


Senior Investors

AlabamaSB 274, to establish the Elder Abuse Protection Order and Enforcement Act, was signed by the Gov. May 9 as Ch. 284.

CaliforniaAB 611, which passed the Assembly on May 15 and was referred to 2 Senate committees May 24, would authorize a mandated reporter of suspected financial abuse to not honor any POA if he or she makes or has knowledge of someone else making a report to APS or law enforcement of suspected financial abuse. 

ColoradoHB 1253, a Report & Hold bill with many beneficial features on which SIFMA testified, was sent to the Gov. May 18.

DelawareHB 162 would move the existing Report & Hold law from the APS statute to the securities statutes.  The introduced bill is based on the NASAA model, but amendments harmonizing the bill with the existing DE law and FINRA rules are anticipated.  This bill was assigned to Judiciary May 9.

Maryland.  The Gov.’s statement of bills that will go into law without his signature included HB 1149 / SB 951, providing vulnerable adult investor protections.  The bill is law as of May 27 (effective Oct. 1, 2017) and contains Report & Hold language on which SIFMA successfully worked with the Securities Commissioner toward harmonization with the FINRA rule. 

MissouriSB 103, which would have required Dept. of Health & Senior Services employees investigating elder abuse to provide an alleged perpetrator present during an initial visit with info on the investigation process, passed out of comm. but died in the Senate upon adjournment. 

NevadaSB 360, to revise provisions on the protection of older and vulnerable persons and persons in need of a guardian, was delivered to the Gov. May 30. 

Ohio. SB 158, which would impose a mandatory reporting requirement and fine and require restitution from offenders found guilty of certain fraud-related crimes against the elderly, was intro’d May 25. 

OregonSB 95, originally a NASAA Model Report & Hold bill now with several SIFMA-requested changes, passed the Senate as amended and was scheduled to be heard in House Judiciary Jun. 1.  

OregonHB 2622, a voluntary, bank-side version of Report & Hold that permits refusal of suspicious transactions and other requests, passed the House and Senate Comm. and was carried over to Jun. 5. 

TennesseeSB 1192, which will make securities changes and add very good voluntary Report & Hold senior investor protection provisions, was signed by the Gov. May 18 as Ch. 424.  SIFMA supported the bill.

TexasHB 3921, a strong Report & Hold bill that SIFMA supported which also extends protection to transactions, was signed by the Gov. Jun. 1.

Washington StateHB 1402, to prevent a guardian from restricting the communication, visitation, interaction, or association of an incapacitated person, was signed by the Gov. May 10 as Ch. 268.

Washington StateHB 1153, to create the crimes of theft from a vulnerable adult in the 1st and 2nd degree, was signed by the Gov. May 10 as Ch. 266.

Washington StateSB 5349, to require the state to establish an elder justice center demonstration program, was reintro’d May 23.


529 Savings Plans

CaliforniaAB 34, which would provide for a $100 deposit into certain CA 529 accounts owned by state residents, was held in Appropriations May 26 and is done for the year.

CaliforniaSB 218, which would authorize ABLE account transfers upon the death of the designated beneficiary, passed the Senate and was read in the Assembly Jun. 1.

CaliforniaACR 57, to designate May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of using 529’s to save for college, passed the Assembly and was ordered to 3rd reading in the Senate Jun. 1.

CaliforniaAB 1175, to enact the Every Kid Counts Act to provide for a one-time state to each Golden State Scholarshare Trust Act account, did not meet passage deadline so is done for the year.

IllinoisSB 2017, to create a tax credit for ABLE account contributions, had its comm. deadline extended to May 5.  A similar bill, HB 3163, passed the House and had a Senate 3rd reading of May 31.  

IllinoisHB 3179 / SB 1758 would modify the term ‘qualified expenses’ for the College Savings Pool.  HB 3179 passed both houses as of May 26.

IllinoisHB 3691, to establish and fund education savings accounts, passed both houses with amendments May 30.

MassachusettsSB 1667, which would allow a deduction for contributions to any qualified tuition programs of up to $500 per single/$1K joint, will be heard in committee on July 11. 

MichiganHCR 8, a reso calling on Congress to include transportation costs as a qualified education expense under § 529 Qualified Tuition Program, was reported out of Workforce & Talent Development May 30.

Minnesota.  The Omnibus Tax bill HF 1-A signed by the Gov. May 30 includes an income tax benefit for contributions made to any qualified 529 plan (up to $1.5K single/$3K joint), in Sec. 15 of Art. 1. 

NevadaSB 76, which would expand authorized investments for certain public entities, including the NV Higher Education Prepaid Tuition Trust Fund, passed the Senate but failed to make the Assembly deadline and is now dead.

NevadaSB 242, to permit the Board to delegate to the State Treasurer administration of the NV Higher Education Prepaid Tuition Program and permit unused credits to be applied to graduate-level studies, passed the Senate but failed to make the Assembly deadline and is now dead.

New JerseyA. 217 / S. 832 would allow a gross income tax deduction for amounts contributed to the Better Educational Savings Trust (NJBEST) Program for taxpayers with gross incomes under $500K.  S. 832 was referred to Budget & Appropriations May 18. 

OhioSB 5, which would increase the deduction ceiling for contributions to the OH 529 plans from $2K to $10K, was heard in Finance May 2.

OregonSB 1027, which would extinguish state payment claims from ABLE accounts, passed the Senate and will be heard in House Rules Jun. 5.

PennsylvaniaHB 1385, which would repeal the long-standing PA 529 tax parity law and limit state tax benefits to only the in-state plan, was intro’d & referred to Finance May 18.

Rhode IslandHB 5831, to establish a one-time tax credit up to $250 per dependent child for certain households who contribute to an account under the RI college bound tuition savings program, was heard in Finance May 30 and was held for further study.

TexasSB 1764, to provide that a guardian of an estate may be terminated if the assets are placed in an ABLE account with the ward as beneficiary, was sent to the Gov. May 28.

TexasSB 377, signed by the Gov. May 29, makes changes to the state ABLE Program and gives the Board the power to engage services through a consortium of states or with another entity to act as plan manager.

TexasSB 3, as amended, which would have created Education Savings Account (ESA) and Tax Credit Scholarship (TCS) programs, passed the Senate as amended but died in the House when the legislature adjourned. 

Washington StateHB 2205, to make several changes intended to increase the stability of and demand for the guaranteed education tuition program, and SB 5923, to permit eligible purchasers to redeem units under the Advanced College Tuition Payment Program at the unit cash value price if all the redeemed funds are deposited immediately into an eligible WA College Savings Plan, were both re-intro’d in special session May 23.

WisconsinSB 75 / AB 108 would create a nonrefundable corporate income and franchise tax credit for employer contributions into an employee’s college savings account.  SB 75 was heard in Revenue, Financial Institutions and Rural Issues May 24.  AB 108 had a public hearing May 9. 


Labor and Employment

CaliforniaAB 1008, a ban-the-box bill, was amended in committee on May 26 to include our compliance language.  It then passed the Assembly and was sent to the Senate Jun. 1.  SIFMA therefore removed its letter of opposition.

HawaiiSB 429, a social media bill modeled after the new Uniform Act which contains our compliance language, has passed both bodies in different forms and is now in conference.

MaineLD 1566, to prohibit an employer from inquiring into or considering an applicant's criminal history info until the applicant has received a conditional offer of employment, was heard in Labor, Commerce, Research & Economic Development May 10.  The bill was tabled at a May 16 work session and a carryover request was made. Both SIFMA and FINRA oppose.

MissouriSB 316, a social media bill that contains our SRO compliance language, died in the Senate upon adjournment. 

New York StateA. 5485, to prohibit an employer from requiring or requesting that an employee or applicant disclose personal social media account info, advanced to 3rd reading May 18.  An SRO compliance provision is included.

New York StateA. 5310 / S. 5653 would enact the ‘credit privacy in employment act’ to prohibit the use of consumer credit reports in hiring and employment determinations; there is no SRO compliance provision.  A. 5310 was referred to Codes May 23.  S. 5653 will be heard in Consumer Protection Jun. 6.

New York StateA. 2144 / S. 3351 to amend the definition of “direct relationship” in New York State’s criminal background check law exemptions, advanced to 3rd reading May 18.

Oklahoma SB 650, to amend qualifications for felony expungement, reducing the number of years between a conviction and expungement application, was unable to be agreed upon in conference May 26.

TexasHB 577, to preempt political subdivisions from adopting or enforcing regulations on whether a private employer may obtain or consider an employment applicant's or employee's criminal history record info, died when the legislature adjourned.

VermontHB 462, which would prohibit an employer from requiring or requesting that an employee or applicant disclose personal social media account info, was signed by the Gov. May 12.


State & Local Business Relations

CaliforniaAB 1597, a divestment bill targeting the Turkish gov’t, passed the Assembly Jun. 1 and was sent to the Senate.

CaliforniaSB 560, to require the Teachers Retirement Board and CalPERS to consider climate change risks in its financial decision-making and investments, was held in Appropriations May 25 and is done for the year. 

CaliforniaAB 1089, which would impose the same contribution campaign limits to local campaigns that exist for state campaigns, was held in Appropriations on May 26 and is done for the year.

CaliforniaAB 20, requiring Dakota Access Pipeline investment reporting and consideration of indigenous tribal rights in investment selection, passed the Assembly May 31 and was sent to the Senate.

CaliforniaAB 867, to redefine ‘contributions’ by amending the Political Reform Act of 1974, passed the Assembly as amended May 4 and was referred to Senate Comm. May 18.

FloridaHB 457, to prohibit material support in connection with designated foreign terrorist organizations, was approved by the Gov. May 25 as Ch. 37.

IllinoisSB 2091, to prohibit a State agency from contracting with a business that contracts with the federal government to build a U.S.-Mexico border wall, was re-referred to Assignments May 5 and is dead for the year.    

IllinoisHB 3871 to ensure payments to bondholders but not fees for credit enhancements or net payments on interest rate swaps or GO futures contracts, was heard in Executive Comm. as amended May 30; it had a final action deadline extended to Jun. 30.

IllinoisSB 778 (3rd reading Apr. 26) would remove records access restrictions on agreements for public retirement investment in private equity, hedge or absolute return funds; SB 779 (died May 31) would provide for records access and for public retirement systems to require alternative investment fund external managers and general partners to make certain annual disclosures concerning certain fees and expenses.

LouisianaHB 3, to provide for the repeal of certain prior bond authorizations and new bond authorizations and allow for contracts with placement agents, was returned to the calendar May 25. 

LouisianaSB 223, which passed the Senate with amendments and is scheduled for a House floor debate Jun. 5, is an Iran, Libya, North Korea, Sudan and Syria divestment bill.  The SIFMA-supported amendments place all due diligence requirements on the State Treasurer. 

LouisianaHB 685, to prohibit mandated investment by participants in the Deferred Compensation Plan in companies that boycott Israel, passed the House as amended May 25, was read for a 2nd time in the Senate and referred to Gov’t Affairs May 30.

MarylandSB 632, an anti-pay-to-play bill that would amend the requirement that a gov’t entity notify the State Board of Elections if a person doing public business with that entity fails to file a statement, was approved by the Gov. May 25 as Ch. 630.  

MarylandHB 898, to restrict coordinated expenditures more than specified limits, was signed by the Gov. May 27 as Ch. 852.

MarylandHB 1498, to require specified persons making independent expenditures or disbursements for electioneering communications to identify a registered agent in the State for service of process, was signed by the Gov. May 27 as Ch. 851.

MissouriSB 111, which would prohibit certain public entities from engaging in a negotiated sale of debt without a municipal advisor, was delivered to the Gov. May 22.  SIFMA believes that changes made both in comm. and in conference are a significant improvement over earlier iterations.

NevadaSB 26, to ban certain gov’t contracts with and investments in companies that boycott Israel, was delivered to the Gov. as amended May 27.

New JerseyA. 4814, which would prohibit investment of pension and annuity funds by State in entities that avoid Superfund obligations to State, was intro’d & referred to Assembly Budget May 18.

New JerseyA. 4704, to require analyses and reporting of investment performance of pension funds and requires disclosure of fees paid to managers of certain funds in which State invests pension funds, will be heard in State & Local Gov’t Jun. 5.

New JerseyS. 3220, which would require the Director of Div. of Investment to attempt to use qualified minority and women-owned financial institutions to provide brokerage and investment management services, was intro’d May 18 and referred to Senate State Gov’t, Wagering, Tourism and Historic Preservation.

New York State.  Draft implementation guidance was issued Jun. 1 on Executive Order #162, which requires state contractor disclosure of job title and salary for each employee working on a state contract.  Comments on the guidance are due by Jun. 30.

New York StateA. 5757, to provide protection to employees and former employees from retaliatory actions by employers for the reporting of illegal business activities, was referred to Codes May 23. 

New York State A. 2881-B, which would authorize state chartered banking institutions to pledge investment grade corporate bonds to secure state and municipal deposits, was amended for a 2nd time and recommitted to Banks May 25.   

Rhode IslandSB 808, to define the terms conduit and earmarked for purposes of reporting campaign contributions, eliminate the aggregate contribution limits, and prohibit earmarked funds, passed out of Judiciary May 23 and was placed on the Senate calendar for Jun. 6.

South CarolinaSB 107, which would delete the proposed increase on campaign contribution limits for statewide offices from $3.5K to $5K, and from $1K to $2K for all other offices, passed both houses in different forms and is in conference.

TexasHB 1986, to create a regional transit authority with authority to issue bonds, passed the House as amended but died in the Senate when the legislature adjourned May 29.  

TexasHCR 82, which would urge Congress to retain the tax exemption for municipal bonds, passed the House May 28 but died in the Senate when the legislature adjourned May 29.

Texas SB 253, to revise investment prohibitions and divestment requirements for certain investments of public money relating to terrorist activities and Sudan, was signed by the Gov. May 23. 

TexasHB 1003, which would make no-load money market mutual funds eligible as an authorized investment for a gov’t entity in certain instances, was sent to the Gov. May 30 with SIFMA’s support.

VermontSB 8, which would impose restrictions on campaign contributions by contractors, has passed both houses with the Senate concurring in the House amendments; it should soon be sent to the Gov. for signature.

WisconsinAB 273 / SB 210 , to restrict the WI Investment Board from investing in any company contracting with the federal gov’t to plan, design, or construct a US-Mexico border wall, had fiscal estimates received May 5th & 9th, respectively.


Cybersecurity / Data & Privacy

NASAA Cybersecurity Roundtable.  NASAA is hosting a free, one-day roundtable in Washington, D.C. on June 23 to bring together leading experts to discuss critical cybersecurity issues for securities regulators and regulated entities.

CaliforniaAB 364, held in Appropriations May 26 so done for the year, would have required a study to evaluate the economic impact of CA’s cybersecurity industry.

CaliforniaAB 1306, to establish a Cybersecurity Integration Center (Cal-CSIC) to develop a CA cybersecurity strategy, passed the Assembly and was sent to the Senate May 30.

CaliforniaAB 1359, which would require certain businesses that must disclose security breaches to federal authorities to also disclose those breaches to the CA Office of Emergency Services, was held in Appropriations May 26 and is done for the year.

CaliforniaAB 531, passed the Assembly May 30 and sent to the Senate, would require the Office of Information Security to review current security technologies in place in state agencies and develop a plan to implement missing technologies within the following fiscal year. 

Colorado.  The Div. of Securities has updated its securities regulations, which include some cybersecurity provisions.  At the Division’s request, SIFMA and its Cybersecurity Working Group provided feedback on the language, which was incorporated into the final product. 

Illinois.  The 2nd Annual Cybersecurity Conference, sponsored by the IL & U.S. Chamber of Commerce, will take place on July 20 in Glen Ellyn, Illinois. 

IllinoisHJR 27, which would create the IL Cybersecurity Task Force to study the status, progress, and future of cybersecurity, was heard in Cybersecurity, Data Analytics, & IT May 25.

IllinoisHJR 59 would create the International Cybersecurity Task Force within the IL Commerce Commission to review the Dec. 2016 Joint Analysis Report from the U.S. Dept. of Homeland Security and the FBI titled "Grizzly Steppe - Russian Malicious Cyber Activity" and develop strategies to either implement or reject the report recommendations.  This bill was amended and placed on the calendar order of resolutions May 25. 

IowaHF 601, which would provide for the confidentiality of certain cyber-security and critical infrastructure info developed and maintained by the gov’t, was signed by the Gov. May 11.  

NevadaAB 471, which would create the NV Office of Cyber Defense Coordination, was delivered to the Gov. as amended May 29.  

New York StateS. 5601 / A. 7167 would broaden the scope of info triggering notification in a breach and double civil penalties.  A. 7167 was heard in Codes May 16; S. 5601 went to 3rd reading May 1.

New York State A. 7232-A , which would add a definitive timetable for notification to consumers that a breach of their personal info has occurred, was amended and recommitted to Consumer Affairs May 24. 

TexasHB 8, to establish cybersecurity protocols for state agencies, was sent to the Gov. May 30 with amendments. 

TexasHB 1605, which passed the House May 8 but died in the Senate upon adjournment, states that by Aug. 31 of each even-numbered year, the dept. shall submit to the gov., the lieutenant gov., and the legislature a report identifying preventive and recovery efforts the state can undertake to improve cybersecurity in the state. 



Various states are considering legislation that would either permit intrastate crowdfunding or make changes to their existing intrastate crowdfunding laws.  The bills include: CA AB 1517 (held in Appropriations May 26 and is done for the year), MI HB 4305 (passed the House and was referred to Senate Commerce May 22) & WA HB 1593 (signed by the Gov. Apr. 25), draft regs and summary.


State Gov't Affairs Comm. Member Mtg. Schedule

SIFMA State Reg. & Legislation Comm. meets via conference call the 1st Thursday of the month and in person the 3rd Thursday of the month.

SIFMA State Tax Comm. meets the 1st Thursday of the month. 

SIFMA State & Local Business Relationships Comm. meets the 2nd Thursday of the month.


Upcoming Events

C&L Boston Regional Seminar.  This one day seminar in Boston at the Seaport Hotel and Seaport World Trade Center on Jun. 7 will feature presentations by leading securities regulators and industry professionals.

Senior Investor Protection Regional Workshop - Denver.  Join SIFMA on July 27 in Denver, CO for a morning of practical learning and information sharing among key stakeholders on how best to protect our senior investors.  The unique program will educate participants on the impact of cognitive decline; the anatomy of an investigation; recent legal and regulatory developments; and promising practices to help prevent, spot and address situations of financial exploitation and cognitive decline. Plus, participants will tackle real-life scenarios from beginning to end in a small-group setting.


State Legislatures in Session

*Indicates Special Session











New Hampshire

New Jersey

North Carolina




Rhode Island

Washington State*

West Virginia





SIFMA Resources

SIFMA's State Government Relations team monitors and engages on legislative and regulatory developments in all 50 states, as well as certain local governments. Visit: sifma.org/state to see all news and activity.

120 Broadway, 35th Floor, New York, NY 10271 | 212.313.1000

1101 New York Avenue, NW, 8th Floor, Washington, DC 20005 | 202.962.7300


To unsubscribe from this mailing, please click here.