March 2017

Legislative and Regulatory Highlights from State and Local Governments


CaliforniaAB 1517, a crowdfunding bill which would establish an application process, qualification standards and fee schedule, was read for the 1st time Feb. 17.

ConnecticutHB 6992, to place additional restrictions on financial planners, defined as those not regulated under ERISA, passed Aging Feb. 14 and was sent for fiscal analysis Feb. 24.   

ConnecticutHB 7143, which would enable the Commissioner of Banking to impose monetary fines against persons who have engaged in dishonest or unethical practices in the securities or commodities business, had a hearing in the Banking Comm. Mar. 2.

ConnecticutHB 7152 , which would provide that a financial planner shall disclose, upon request, whether the financial planner has a fiduciary duty to the requestor or any financial interest in the advice being provided and the nature of the interest, had a hearing in the Banking Comm. Mar. 2.

FloridaHB 747 / SB 830, to exempt a securities dealer, IA, or associated person from mortgage broker regulation if conducting business with clients in the normal course of securities business, were referred to comm. Feb. 15 & 23, respectively.  The OFR made amendments to the exemption.

GeorgiaSB 2, which would provide that up to half of any licensing fee could be required in advance of an application with the second half due upon decision, and require any license or regulatory application to be automatically approved if the decision is more than 50 days late, passed the Senate on Feb. 17 and went to 2nd reading in the House Feb. 22.

IllinoisHB 165, a placeholder bill to amend the IL Pension Code re prohibited transactions, had its 2nd reading Feb. 16 and was held on the calendar.

KentuckyHB 324, to expand state exam authority to include certain 3rd party service providers (incl. data processing, lending, fiduciary activity, mobile app and others), is based on a Conf. of State Bank Supervisors Model Law; it passed the House Feb. 21 and was referred to Senate Banking & Insurance Feb. 23.

KentuckyHB 329, a DFI bill to increase felony charges for violations of the securities code based on the amount of the fraud, passed the House Feb. 21 and was sent to Senate Judiciary Feb. 23.

LouisianaSB 4, which would exclude individuals who have been registered for more than 10 yrs. from examination/certification requirements, was prefiled Feb. 16.

MarylandHB 1134 / SB 884 would establish the MD Financial Consumer Protection Commission.  HB 1134 has a hearing in Economic Matters Mar. 10; SB 884 has a hearing in Finance Mar. 14.

MississippiHB 1002 / SB 2423 would clarify grounds for discipline for violations of the MS Securities Act.  SB 2423 passed the Senate Feb. 6; HB 1002 died in comm. Feb. 28.  

MontanaSB 263, which would delete venture capital investment provisions for public employer retirement funds, was tabled in State Administration Feb. 27. 

NevadaAB 9, which would authorize the Secretary of State to appoint a Deputy of Securities, passed the Assembly Feb. 28.

New JerseyA. 3064 / S. 2450 is an arbitration bill which would ban state agencies from entering into contracts with business entities that require persons or public entities to give up rights or remedies provided by state law.  The bills are ready for a Senate floor vote.

New MexicoHB 33, to amend state deferred compensation plans to allow for investment in mutual funds, including stock, bond or capital preservation funds, passed the House Feb. 21 and had a hearing in Senate Public Affairs Feb. 28.

New York StateA. 6242, which would authorize public pension funds and Taft-Hartley pension funds to bring actions for damages resulting from violation of the Martin Act, was referred to Codes Mar. 1.

North DakotaSB 2266, which originally would have had the Insurance Commissioner take over the duties of the Securities Commissioner and the Dept. of Securities (which would have been dissolved), was amended to a fiscal study bill.  This bill passed the Senate Feb. 3 and was read in House Business & Labor Feb. 20. 

OregonSB 96, which would require BDs and state IAs to maintain Errors & Omissions insurance of at least $1M as condition of state licensure (if BD or state IA has discretionary trading authority or client fund custody), passed Business & Transportation as amended Feb. 20.  

Rhode IslandHB 5508, which would facilitate the sharing of information between the treasury, state retirement system, division of taxation, and the dept. of labor and training concerning unclaimed property, taxation collection, and pension benefit monitoring, was withdrawn at the sponsor’s request Feb. 16.

TexasHB 823, which would state that the State Securities Board is self-directed and semi-independent and authorize fees on securities transactions and investment advisors to fund expenses of the Board, was referred to Investments & Financial Services Feb. 21.

UtahHB 106, which passed both Houses as of Feb. 14, clarifies the calculation of damages for certain violations of the UT USA. 

UtahHB 171, which would enact an intrastate securities exemption from registration and disclosure requirements, was amended Feb. 23 and was sent to House Rules Feb. 28.

West VirginiaSB 438, which would declare that state insurance laws would apply to unclaimed life or endowment insurance policies and annuities payable upon death and removes inconsistencies between insurance laws and the Uniform Unclaimed Property Act, was intro’d and sent to Banking & Insurance Feb. 24.

WyomingHB 60, which would remove the 55% restriction on the percentage of permanent funds that may be invested in common stock, passed both Houses as of Feb. 16; it awaits Gov.’s signature.

WyomingSF 49, which would create an investment fund comm., passed the Senate January 30 and was amended and reported Do Pass from House Appropriations Feb. 24. 


State Run Retirement Savings Plans for Private Workers

California.  The Secure Choice Retirement Savings Investment Board met Feb. 27, with discussion on consulting and legal services as well as federal CRA bills, their potential effect on Secure Choice, and potential amendments to SB 1234.

IllinoisHB 2360, to amend the IL Secure Choice Program to require the Board to select 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 reported out of comm. and placed on the calendar for 2nd reading Feb. 24.

New MexicoSJM 12 (as amended), to establish a retirement income security task force helmed by the state Treasurer to study retirement preparedness of NM residents and evaluate options for a retirement savings vehicle for private-sector employees without a workplace plan, passed the Senate Feb. 24 and was sent to the House. Its companion,  HJM 9, passed the House as amended Feb. 21 and was sent to the Senate.

New York StateS. 4655, which would establish a state government task force to study the feasibility of creating a state sponsored retirement security program for private sector workers, was referred to Civil Service & Pensions Feb. 23. 

OregonHB 2163 which would amend the law restricting deductions from employee pay to 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 Feb. 20.  

TennesseeHB 1149 / SB 948, which would enact the Voluntary Employee Retirement Accounts Program Act, have been referred to their respective State Gov’t Comm. with the House bill assigned to a Subcomm.

UtahSB 109, which passed the Senate as amended Feb. 28, would create a $500 non-refundable tax credit for small employers who offer qualified retirement plans to employees for the first time.

VermontHB 387 would create a Multiple Employer Plan for the self-employed and employers with less than 50 employees who don’t offer a retirement plan.  Employees would be automatically enrolled if employer participates. It was heard in Gov’t Operations Mar. 2.

Washington StateHB 1966 & SB 5675 would permit de minimus fees and make other changes to the Marketplace law.  SB 5675 passed the Senate Feb. 27 and was referred to House Business & Financial Services Mar. 1; HB 1966 was placed on 2nd reading by Rules Comm. Feb. 28. 


Senior Investors

AlabamaHB 304, which would establish the Elder Abuse Protection Order and Enforcement Act, was intro’d and referred to Judiciary Feb. 23. 

FloridaSB 1408, which would create an exemption from public records requirements for certain personally identifiable information, personal health and financial records, and certain photographs and video recordings held by the Dept. of Elderly Affairs, was filed Mar. 1.

HawaiiHB 432, to make financial exploitation of an elder by a caregiver a felony, passed 1st comm. and had a hearing in its 2nd Feb. 28.

IndianaHB 1526, the Securities Commissioner’s bill to add ‘investment advisor’ to the state Report & Hold law, passed the House Feb. 7 and was sent to Senate Comm. Feb. 20.  SB 345, which would amend the definition of ‘financially endangered adult’ within the Report & Hold to remove the 65-year age, passed the Senate and was sent to House Comm. Feb. 28.

KansasSB 72, to require officers of financial institutions to promptly report suspected abuse, neglect and exploitation of vulnerable adults, was heard in comm. Feb. 16.

KansasSB 23, which would consolidate criminal prosecutions for fraud and abuse under the jurisdiction of the attorney general and establish the office of the securities commissioner as a division under the jurisdiction of the commissioner of insurance, was referred to Federal & State Affairs Feb. 23.

MarylandHB 1149 / SB 951 contain a senior investor protection section based on the NASAA model rule; the bills would make MD a mandatory reporting state and are not currently harmonized with the new SEC-approved rule.  The Senate bill was heard Feb. 23; the House bill has a hearing Mar. 10. 

MississippiHB 753, which would expand the authority of the Dept. of Human Services when investigating the abuse of vulnerable persons, died in comm. Feb. 28.

MississippiSB 2911 would require BDs to file a report with the Dept. of Human Services under the MS Vulnerable Person Act and require a follow up report 7 business days after the internal review.  This bill passed the Senate Feb. 7 and House Banking & Financial Services Feb. 23; SIFMA submitted comments

Missouri.  On Feb. 23, the Secretary of State announced that the Securities Div. of the Office of the Secretary of State is boosting investor protection and education through the formation of its new Vulnerable Citizens Services unit.

MontanaHB 24, a Report & Hold bill based on the NASAA model, passed the House with amendments Feb. 15, passed the Senate Feb. 20, and was returned to the House for concurrence. SIFMA submitted amendments jointly with NAIFA.

New MexicoHB 326, which started with the NASAA model, has been substantially amended.  The bill is awaiting House floor consideration.  SIFMA submitted comments

New MexicoHB 325, which was sent to 2 committees and reported out of 1, would increase penalties for certain violations of the NM USA, including violations involving persons over the age of 60.  

New York State.  The Executive Budget included a transaction-focused Report & Hold provision that applies to banks; it includes relatively tight time-frames.  The Executive Budget has been intro’d as A. 3008-A and S. 2008-A (see § AA).

New York StateA. 6099 / S. 1093 is a Report & Hold proposal applicable to banks. S. 1093 passed the Senate and was referred to Assembly Aging Mar. 2; A. 6099 was referred to Aging Feb. 23.

North DakotaSB 2322, a Report & Hold bill similar to the NASAA Model, passed the Senate Feb. 2 and was read in House Judiciary Feb. 20.  SIFMA submitted comments.

OregonSB 95, a NASAA Model Report & Hold bill, has a Human Services work session Mar. 8.  SIFMA is requesting amendments. 

OregonHB 2622, to authorize banks to refuse certain financial transactions with a reasonable belief of financial exploitation, had a Judiciary hearing Feb. 15; a work session was held Feb. 28.

TexasHB 916, referred to comm. Feb. 21, would require financial institutions to report suspected financial exploitation to both APS and law enforcement within 24 hrs., would provide immunity to good faith reporting, and has penalties up to $5K for failure to report. 

TexasHB 959, referred to comm. Feb. 27, would impose criminal penalties on those who commit financial exploitation and would impose civil penalties up to $100K on financial institutions for failure to report.

TexasSB 792 & SB 791, which would require financial institutions to report suspected financial abuse of elderly persons and provide a civil penalty and create criminal offenses, was intro’d Feb. 22.

VirginiaHB 1945, to broaden the definition of adult exploitation for the purposes of social services laws, passed both Chambers and was signed by the Gov. Feb. 23.  The new law (Ch. 195) is effective July 1.

VirginiaHB 2073, to add the offenses of obtaining money by false pretense, and financial exploitation of mentally incapacitated persons to both the list of criminal violations that a multi-jurisdiction grand jury may investigate and the list of prohibited practices under the VA Consumer Protection Act and make them eligible for grand jury, passed both Houses as of Feb. 14.

Washington StateSB 5099, which would increase penalties and reduce barriers to prosecution for seniors-related crimes, passed 2 Committees as of Feb. 23, and is in Rules.

Washington StateHB 1153, to create the crimes of theft from a vulnerable adult in the 1st and 2nd degree, had an Executive Session hearing Feb. 15.

Washington StateSB 5349, to require the state to establish elder justice center demonstration programs, was referred out of comm. Feb. 24.



Senior Investors

ArkansasHB 1142, to require pre-escheatment account liquidation, passed both Houses as amended (amendment #1) and was transmitted to the Gov.’s office Mar. 2.  SIFMA expressed concerns with the original bill but is supportive of the amended version, which increases the dormancy period from 5 to 7 years. 

FloridaSB 536, which would repeal provisions relating to the deposit of unclaimed funds with the CFO to the credit of the State School Fund, has a hearing in Banking & Insurance Mar. 6.

IllinoisHB 2603, which would create the Revised Uniform Unclaimed Property Act, was assigned to Executive Comm. Feb. 22.

MinnesotaHF 587 / SB 1304 would modify how the commissioner of commerce returns abandoned property to owners and gives notice of abandoned property.  SB 1304 was intro’d and read for the 1st time Feb. 22.

MinnesotaHF 1608 / SF 1035 would enact the revised Uniform Unclaimed Property Act.  HB 1608 was intro’d & referred to Commerce & Regulation Reform on Feb. 23; SF 1305 was intro’d and referred to Commerce & Consumer Protection Feb. 16. 

MissouriHB 985, which would change the laws regarding unclaimed property claims and finder registration, was read for a 2nd time Feb. 22.

MontanaLC 286, a draft bill to remove the sunset on Securities Restitution Fund, was sent to the Executive Director for final review Feb. 24. 

North DakotaHB 1384, which would move the duties of unclaimed property administration from the Land Commissioner to the Office of State Treasurer, passed the House Feb. 7 and was read for the 1st time in the Senate Feb. 17. 

OhioSB 45, which would address payment of registered unclaimed funds finders, was referred to Finance Feb. 15. 

South DakotaSB 34, which would revise certain provisions related to securities held as unclaimed property, passed both Houses as of Feb. 27.  SIFMA submitted comments expressing concern.

TennesseeHB 420 / SB 371 would amend unclaimed property provisions including dormancy periods, reporting, and due diligence requirements.  HB 420 was heard in Civil Justice Subcomm. Mar. 1; SB 371 was heard in Commerce & Labor Feb. 28. 

UtahSB 6, which would require a report from the State Treasurer's Office including the total value of unclaimed property claims paid by Oct. 15, 2018, was signed by the Gov. Feb. 16.

UtahSB 175, which would repeal and reenact the Revised Uniform Unclaimed Property Act by revising presumptions of abandonment, amending reporting procedures, and addressing the duties of a holder of abandoned or unclaimed property, is awaiting Senate floor consideration.  Concerns expressed in a SIFMA letter have been addressed.

VermontHB 311, which would propose to adopt the Revised Uniform Law Commission Unclaimed Property Act of 2016, was referred to Commerce & Economic Development Feb. 17.


529 Savings Plans

HawaiiSB 940, which passed out of its first Senate comm. as amended on Feb. 17, would provide a tax deduction up to $5K single/$10K joint for contributions to HI's 529 college savings program, beginning in 2018.

IdahoHB 41, to exempt ABLE accounts when determining an applicant’s eligibility for certain programs or grants and provide for certain assistance subject to appropriation, passed the Senate Feb. 10 and was filed for 3rd reading in the House Feb. 23.

IdahoHB 185, which would amend existing law to increase the amount that may be deducted annually for contributions to an in-state college savings program, was placed on 3rd reading Feb. 27. 

IllinoisHB 3163, which would permit ABLE account contributions to be deducted from adjusted gross income, has a hearing in Revenue & Finance Mar. 9. 

IllinoisHB 3179 / SB 1758 would modify the term ‘qualified expenses’ for the College Savings Pool.  HB 3179 has a hearing in Higher Education Mar. 8. 

IllinoisHB 3691, to establish and fund education savings accounts to provide funds for qualified education expenses of program participants, was referred to Rules Feb. 10.

IllinoisSB 2017, to create a tax credit for contributions to ABLE accounts, had multiple co-sponsors added Feb. 24.

Mississippi.  Bills to establish ABLE accounts: HB 162 (died in comm. Feb. 28) / SB 2311 (passed Senate Feb. 7, titled Do Pass in House Revenue Feb. 27).

MississippiSB 2484, which would authorize the creation of individual development accounts for low-income individuals that may be utilized by the account holder for certain purposes, died Feb. 22.

MississippiSB 2575, which would establish an educational improvement tax credit program, died Feb. 22.

New York StateS. 1160, which would establish the NYS pre-paid tuition plan by which a person may contribute to an account for the pre-payment of college tuition, tax-free, was committed to Finance Mar. 1.   

New York StateA. 6121, which would create the college savings incentive program, which provides up to a 10% matching grant from the general fund to the beneficiary of a family tuition account, was referred to Higher Education Feb. 23.

North DakotaHB 1382, to establish and fund education savings accounts to provide funds for qualified education expenses of program participants, passed the House Feb. 14 and was referred to Senate Education Comm. Feb. 17.

OhioHB 74, intro’d Feb. 21, would increase the maximum deduction to $3K from $2K for contributions to the state’s 529 account; we are working with sponsor and leadership to amend to tax parity.

OregonHB 2508, which would require an applicant who does not select an investment option when enrolling in the state 529 program be enrolled in the investment option that OR 529 Savings Board determines is most appropriate for greatest number of participants, was heard in comm. Feb. 20. 

UtahSB 199 is an ABLE bill that passed the Senate Feb. 28 as substituted; it would now authorize state administration of an ABLE plan or contracting with another state to provide ABLE program access to UT residents and establish a tax credit for contributions.

VermontHB 348, to extend the income tax credit deadline for 529 contributions to the following Apr. 15 and establish a 529 contribution income tax check off, was intro’d and referred to Ways & Means Feb. 21

Washington StateHB 1425, to create the WA next generation educational savings account pilot program, has a Higher Education hearing Feb. 17.

WisconsinSB 75, which would create a nonrefundable corporate income and franchise tax credit for certain amounts contributed by an employer into an employee's college savings account, was referred to Revenue, Financial Institution & Rural Issues Feb. 21.


Taxes, Fees & Budget

ArizonaHB 2064 / SB 1290, which would conform the state with the Internal Revenue Code, were sent to the Gov. Feb. 28. 

ArkansasSB 140, which would change state sales tax nexus rules for out of state sellers, passed the Senate Feb. 6 and had a hearing in Revenue & Taxation Feb. 28.  This bill was amended in comm. to remove definitions and references to in-state affiliates.

CaliforniaSB 640, intro’d Feb. 17, is a concepts bill that would make substantial changes to the tax code by providing tax relief to middle and low income residents, imposing a tax on services, lowering the corporate income tax on small businesses, and reducing the minimum franchise tax. 

HawaiiHB 146, which would allow changes in the Federal Internal Revenue Code to automatically apply to State income tax law, was amended and reported out of Finance Mar. 2.

HawaiiHB 345, to clarify that an entity can do business in the state and owe taxes without having a presence, was heard in Consumer Protection & Commerce Feb. 13. The Comm. recommended that the bill be deferred. 

Illinois.  Carried interest legislation SB 1719 & HB 3393 were referred to their 2nd committees Feb. 22 & 28, respectively.  

IllinoisHB 2458, which would amend the Stock, Commodity, or Options Transaction Tax Exemption Act and provide that a city of 1M+ may, by ordinance, levy a tax on stock, commodity or options transactions, was assigned to Revenue & Finance Feb. 22.

IllinoisHB 3419 / SB 1798, which 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, were assigned to their 2nd committees Feb. 23 & 28, respectively. 

MarylandSB 1096, which would adopt single sales factor apportionment, has a hearings in Budget & Taxation Mar. 8 & 15.  

MarylandHB 615 / SB 357, to prohibit the State Dept. of Assessments & Taxation from imposing a fee for the filing of specified documents by corporations or business entities with 10 or fewer employees, had a Budget & Tax hearing Feb. 22.

MarylandHB 659 / SB 823 would establish a Task Force to Study Tax Sales in MD to examine the tax sale system to maximize resources, facilitate properties getting to productive use, and protecting residents.  SB 823 has a hearing in Budget & Taxation Mar. 8. 

MinnesotaHF 444 / SF 1223 would change qualifications and procedures surrounding the MNvest tax incentives program.  HF 444, as amended, passed the House Mar. 2; SF 1223 was referred to Commerce & Consumer Protection Feb. 20.   

MinnesotaHF 893 / SF 726 is a tax omnibus bill which would alter what business activities will be deemed to have economic substance in the state and expand the definition of financial institutions.  HB 893 had a hearing in Taxes Mar. 1. 

MinnesotaHF 1227 / SF 1218 would add sales of derivatives, including but not limited to swaps, options, futures, and forwards, when determining sales factor.  HF 1227 was heard in Property Tax & Local Gov’t Finance Division Feb. 22; SF 1218 was referred to Taxes Feb. 20.  

MinnesotaHF 1365 / SF 1145 would conform state tax code to future federal tax legislation.  SF 1145 was referred to Taxes Feb. 20. 

MississippiSB 2191, which would make several tax code changes, including eliminating a planned phase down of the franchise tax, died in comm. Feb. 22.

MissouriSB 285, which would phase down the corporate income tax rate from 6¼ % to 4% if net revenue targets are met, was placed on Senate formal calendar Mar. 2.

New MexicoHB 412, to create a single 5% corporate income tax bracket and make other changes, had a hearing in Taxation & Revenue Feb. 25.

New York StateA. 6013, which would relate to conducting studies on personal income tax brackets and the corporate franchise tax, was intro’d & referred to Ways & Means Feb. 21.

New York State.  Executive budget bills A. 3009-A & S. 2009-A were amended Feb. 17th.

OregonSJR 41, which would propose an amendment to the OR Constitution providing for imposition of a business privilege tax on gross receipts derived from OR sales and establishing an OR Rainy Day Fund, was intro’d and referred to Finance & Revenue Feb. 14. 

Rhode IslandSB 259, to assess a 19% carried interest fee for investment management services to tax hedge fund and private equity investors, was referred to Finance Feb. 15.

Rhode IslandSB 318, which would impose a surtax on publicly traded corporations subject to SEC disclosure requirements if the compensation ratio of CEO to median worker hits 100:1, was referred to Finance Feb. 16.

TennesseeSB 132 / HB 41 would reduce the $400 professional fee tax by $80/year beginning in FY 2018 and phase the tax out entirely by FY 2022.  SB 132 was referred to Finance, Ways & Means with recommendation Mar. 1.

TennesseeHB 714 / SB 8 would change the statutory apportionment formula franchise and excise taxes from a three-factor formula to a single-sales-factor formula. SB 8 was heard in Revenue Subcomm. Mar. 1.

Texas.  Various bills regarding reducing or eliminating the franchise tax were intro’d in Feb.:  HB 388, HB 1196, HB 1052, HB 1095 & SB 17.  HB 388 & HB 1196 are sponsored by Ways & Means members.  SB 17 was heard in Finance Feb. 28.

VirginiaSB 900 / HB 1500, VA’s budget proposal, was adopted with amendments Feb. 25.  It awaits the Gov.’s signature. 

VirginiaHB 1961, which would instruct the Dept. of Taxation to establish rules regarding the methodology for determining deductible gross receipts attributable to business conducted in another state or a foreign country, was approved by the Gov. Feb. 20, effective July 1, 2017.

West VirginiaSB 409, which would eliminate several exemptions to the state sales tax, including some related party transactions, utilities, software processing, pharmaceuticals, sales for reselling, food stamp purchases, and personal income tax, was intro’d Feb. 23. 

West VirginiaSB 335, which would repeal the current sales tax, personal income tax, and corporate income tax and replace them with a broad-based ‘general consumption tax’ with no distinction between in-state and out-of-state sellers, was intro’d Feb. 16. 

West VirginiaSB 484, the Gov.’s budget proposal which includes several state tax increase provisions including sales tax increase to 6.5% and expands the sales tax to include a number of professional services, was intro’d and sent to Finance Feb. 28.

WisconsinSB 2, which would change due dates for corporate and franchise tax filings and rules for paying estimated tax, passed 1st comm. and will be heard in Rules Mar. 7.


Labor and Employment

CaliforniaAB 1008, a ban-the-box bill, was read for the first-time Feb. 16.

CaliforniaSB 744, which would state the intent of the Legislature to enact a bill establishing an ‘Employee Right to Privacy’, was intro’d Feb. 17.

GeorgiaHB 389, a social media employer restriction bill with a limited exemption, had a hearing in Industry and Labor Subcomm. Mar. 2.   

HawaiiSB 429 is a social media bill modeled after the new Uniform Act which contains exemption language where required by federal, state or SRO obligations.  The bill was heard and unanimously reported out of 3 committees and awaits 1 more committee’s consideration. 

IowaHF 192, ban-the-box legislation which contains alternative exemption language, was referred to Subcomm. Feb. 21.

MarylandHB 440 / SB 55, to provide employer protections when hiring certain individuals with a criminal record, was heard in Economic Matters Feb. 21.

MissouriSB 316, a social media bill that contains our SRO compliance language, was voted Do Pass in the General Laws Comm. Mar. 1.

MissouriHB 564, which would prohibit an employer from requiring, requesting, or coercing an employee or potential employee to disclose a username or password for a personal social media account, had a hearing in the Special Comm. on Innovation & Technology Mar. 1.  The bill contains an exemption for compliance with federal, state or SRO obligations.

MontanaSB 326, a ban-the-box bill, failed to pass comm. Feb. 24. 

New HampshireHB 442, to restrict employers from asking pre-interview criminal history questions to applicants and authorize certain employment denials, was voted Inexpedient to Legislate Feb. 14.

New MexicoSB 78, which passed the Senate Feb. 21 and was sent to House Business & Industry Feb. 24, would prohibit employers from inquiring about an applicant’s prior convictions on an employment application but allows employers to consider such information after review of the application and discussion with the applicant. 

TexasHB 548, which would prohibit employers from considering criminal history information before issuing a conditional offer of employment, was referred to Business & Industry Feb. 23.

TexasHB 577, which would preempt a political subdivision from adopting or enforcing regulations on whether a private employer may obtain or consider an applicant's or employee's criminal history information, was referred to Business & Industry Feb. 20.

Washington State.   HB 1298, a ban-the-box bill on which SIFMA has requested an exemption, passed the House Mar. 1.

Washington State.   HB 1829, which would exempt information regarding the public and private infrastructure and security of computer and telecommunications networks from disclosure under the public records act, was placed on 2nd reading Feb. 24. 

West VirginiaSB 399, which would prohibit political subdivisions from enacting local ordinances regulating employer-provided benefits, was intro’d and sent to Workforce Comm. Feb. 22.


State & Local Business Relations

ArizonaHB 2446, read for a 2nd time Feb. 8, would prohibit state contracts with companies that contract with the federal gov. to build a U.S.-Mexico border wall. 

ArkansasSB 11, to require the public employee retirement system board of trustees to identify and list restricted companies (Israel-boycotters, Iran & Sudan business), to be distributed to each public employee retirement system for divestment, was heard in comm. Feb. 27.

CaliforniaAB 1597, a divestment bill targeting the Turkish gov’t, was read for the 1st time Feb. 17. 

FloridaSB 1178 / HB 1057 would modify the schedule governing campaign finance reporting for candidates, political committees, and electioneering communications organizations.  SB 1178 was filed Feb. 23; HB 1057 was filed Feb. 27.  

GeorgiaHB 399, which would provide limits on campaign contributions and expenditures and require disclosure of such contributions and expenditures, was read for a 2nd time Feb. 21. 

HawaiiHB 1588, to prohibit the issuance of GO bonds for certain capital assets, had a Finance hearing Feb. 28.

HawaiiHCR 51 / HR 26, to assess the impact of fossil fuel investments on the Employees' Retirement System's portfolio, was intro’d and referred to Finance Feb. 22.

IllinoisHB 3061, to require the IL Investment Policy Board to make its best efforts to identify and restrict investment in all companies that contract to build a border wall, has a hearing in Economic Opportunity Mar. 7.

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 assigned to State Gov’t Feb. 27.

IllinoisHB 2718, which would amend several existing laws to restrict interest rate swaps and make other changes, was assigned to Executive Comm. Feb. 22.

IllinoisHB 3335, which would levy an annual fee on publicly traded companies if the company reports a pay ratio between its CEO’s compensation and its employees' median pay of at least 100:1, has a hearing in Economic Justice & Equality Mar. 8. 

IllinoisSB 778, which would provide for FOIA disclosure of any agreement to invest in a private equity fund, hedge fund, or absolute return fund proposed or executed after Jan. 1, 2018, had a hearing in Licensed Activities & Pensions postponed Feb. 16.

KansasHB 2011, which was stricken from calendar Feb. 23, would substantially increase campaign contribution limits, with most existing limits being doubled.

KentuckySB 2, which would amend various KRS sections to place all state retirement systems under the Model Procurement Code and amend the definition of placement agents to restrict 3rd party placement agents, passed both houses as amended. 

MarylandHB 118 / SB 632 is 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 the entity fails to file a certain statement.  HB 118 passed the House and was read in Education, Health & Environmental Affairs Feb. 22.

MarylandHB 234, which would prohibit a person from directly or indirectly making a specified contribution during the General Assembly regular session, was reported unfavorable by Ways & Means Feb. 16. 

MarylandHB 299, which would require a solicitation by or for a PAC to contain a disclosure statement, was reported unfavorable by Ways & Means Feb. 16.

MarylandHB 976, which would prohibit contributions from a business entity (or its rep) with a pending bid or application before a county board or commission, has a hearing in Environment & Transportation Mar. 10. 

MarylandHB 949 / SB 739 would extend restrictions on those engaged in investment activities in Iran to include persons participating in a boycott of Israel.  SB 739 was heard in Budget & Taxation Mar. 1. 

MontanaHB 501, an anti-Boycott, Divestment & Sanctions of Israel bill, passed the House and was transmitted to Senate Feb. 27. 

New MexicoHB 33, to amend state deferred compensation plans to allow for investment in mutual funds, including stock, bond or capital preservation funds, passed the House Feb. 21 and had a hearing in Senate Public Affairs Feb. 28.  

New York StateA. 1926 / S. 496 would relate to political contributions by LLCs. A. 1926 advanced to a 3rd reading Mar. 2.

New York StateA. 6017 is a proposed constitutional amendment that would require the enactment of a code of corporate responsibility and require corporations formed under laws of other states to pay registration fees and taxes; it has been intro’d with no action for many years. It was referred to the AG for opinion on Feb 23, in addition to its regular Corporations Comm. referral.

New York StateA. 3712 / S. 4596 would direct the State Comptroller to divest the NYS Common Retirement Fund from companies engaged in the production of fossil fuels.  S. 4596 was referred to Civil Service & Pensions Feb. 21.

New York StateA. 3137 / S. 4761 would prohibit the use of placement agents or intermediaries by investment managers doing business with the common retirement fund.  S. 4761 was referred to Civil Service & Pensions Feb. 27.

North CarolinaHB 161, which would prohibit the NC Retirement Systems or the State Treasurer from directly investing in any company engaged in a boycott of Israel, passed 1st reading and was referred to Pensions & Retirement Feb. 22.

Pennsylvania. On January 18, the Treasurer announced a ban on the use of third-party placement agents in Treasury investment contracts, effective immediately.

Rhode IslandHB 5505, which would prohibit the state investment commission from investing in any companies that are involved in the construction of a border wall between the United States and Mexico, was referred to Finance Feb. 15.

South CarolinaS. 107, which would increase campaign contribution limits for statewide offices from $3.5K to $5K, and from $1K to $2K for all other offices, passed the Senate as amended and was sent to House Judiciary Feb. 28.

South CarolinaS. 255, which would define Independent Expenditure Committee and provide for disclosures and disclaimers, was referred to Subcomm. Mar. 1.

South CarolinaS. 394 / H. 3726 would bar retirement system investments in a fund managed by an external investment manager if a placement agent receives any compensation from the investment.  S. 394 passed the Senate as amended Mar. 2. H. 3726 passed the House as amended and was referred to Senate Finance Mar. 1.

South DakotaHB 1200, to institute several provisions regarding contributions to ballot questions committees, passed the House as amended and had a Senate Judiciary hearing Mar. 1.  

TennesseeHB 1123 / SB 1376 would prohibit candidates for public office from soliciting gifts and require disclosure of any non-lobbyist gifts.  HB 1123 was assigned to Local Gov’t Subcomm. Feb. 15. 

TexasHCR 82, which would urge Congress to retain the tax exemption for municipal bonds, was filed Feb. 23.

TexasSB 29, which would relate to state contracts with and investments in companies that boycott Israel, was referred to Business & Commerce Feb. 27.

TexasHB 1902, which would prohibit the investment of certain retirement system funds in publicly traded business entities that donate to Planned Parenthood, was filed Feb. 14.

VermontSB 8, which would impose restrictions on campaign contributions by contractors, passed the Senate and was heard in House Gov’t Ops Feb. 17.


Cybersecurity / Data & Privacy

CaliforniaAB 364, referred to comm. Feb. 21, would require a study to evaluate the economic impact of CA’s cybersecurity industry and require that study to include certain information and be completed by Jul. 1, 2018. 

CaliforniaAB 1306, to establish a Cybersecurity Integration Center (Cal-CSIC) to develop a cybersecurity strategy for CA, was 1st read Feb. 17. 

HawaiiHB 598, which would place the HI Cybersecurity, Economic, Education, and Infrastructure Security Coordinator within the Office of Enterprise Technology Services, was reported from its second comm. on Feb. 28. 

KansasHB 2331, to establish an information security office and state CIO, is in comm. as of Feb. 21

KansasSB 204, which would enact the KS Cybersecurity Act, create a chief information security officer for the state, and stablish a cybersecurity state grant fund coordinating council, was referred to Ways & Means Feb. 17.

MarylandHB 965 / SB 552, which would alter the applicability of specified security breach investigation and notification requirements to specified businesses, was heard in Economic Matters Mar. 1.

MarylandHB 974 / SB 525, to change data breach investigation and notification standards, had a hearing in Economic Matters Mar. 1.

MontanaLC 770, a draft bill to ‘generally revise cyber-security laws,’ was in legal review as of Feb. 27.

New York StateA. 3311 / S. 953 would provide for the crime of cyber terrorism in the first and second degree.  S. 953 passed the Senate and was referred to Assembly Codes Mar. 2.  

New York StateS. 1104, which would relate to the timeliness of disclosure of a breach of the security of a system which contains private information, advanced to a 3rd reading Mar. 1.  

OklahomaSB 614, to amend the Security Breach Notification Act, was reported Do Pass as amended in Judiciary Feb. 21.

TexasHB 8, which would establish cybersecurity protocols for state agencies, was filed Feb. 20.

TexasHB 2192, which would relate to comprehensive information security assessments on state agency information resources and network systems and digital data storage and security, was filed Feb. 21.


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

Securities Industry Institute 2017.  The Securities Industry Institute® (SII) is the premier executive development program for financial services professionals.  This year it is being held from Mar. 5 – 10.  For more than 65 years, SIFMA and The Wharton School of The University of Pennsylvania have partnered to equip SII participants with practical information, ideas and answers directly applicable to their present and future responsibilities. 

SIFMA C&L 2017 Annual Seminar.  This year, the SIFMA C&L Annual Seminar will take place at the Marriott Marquis, San Diego Marina from Mar. 19 - 22. Mike Rothman, Joe Borg and Judy Shaw will be participating at this event.

Private Client Conference.  SIFMA’s Private Client Conference convenes leaders from across the private wealth management industry to examine the most topical issues facing the business. Join us in Scottsdale, AZ from Apr. 5 – 7 for a new program focusing on financial advice amidst rapidly changing technology, regulations, and demographics.

SIFMA Senior Investor Protection Regional Workshop. Join SIFMA on May 2 in Philadelphia for our second Senior Investor Protection Regional Workshop! Following the success of our first event last fall, this interactive program provides attendees with the opportunity to take a deeper-dive into the causes of cognitive decline, learn how to identify decline and exploitation, and learn practical ways to establish an effective client protection program.


State Legislatures in Session

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Washington State

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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: to see all news and activity.

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