May 2017

Legislative and Regulatory Highlights from State and Local Governments

securities

CaliforniaSB 33, which would as introduced have made some consumer contracts for good or services with a financial institution unenforceable if they included an arbitration clause, was reported out of Judiciary as amended on May 2.  A joint opposition letter was submitted by SIFMA, CalChamber, CA Banks, and many others.  The amended language narrows the bill’s scope by requiring fraudulent activity and unlawful use of personal identifying info.

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 on May 2. 

ConnecticutHB 6992, to place additional restrictions on financial planners (defined as those not regulated under ERISA, the Investment Advisers Act of 1940 or the Securities Exchange Act of 1934), is awaiting House floor consideration. 

Florida.  SIFMA testified Mar. 27 in support of HB 747 / SB 830 to exempt securities BDs, IAs, and associated persons from FL’s mortgage brokering regs in specified circumstances; providing requirements for certain solicitations and referrals, etc.  The mortgage broker exemption has passed both houses and will go to the Gov. in coming weeks.   

KansasSB 120, which would update references to the federal securities act of 1933 in the KS uniform securities act, passed the Senate as amended May 1.     

KansasSB 23, to 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, passed both houses as amended Apr. 6.

LouisianaHB 17, which 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, passed the House May 2 and was sent to the Senate May 3.  

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 examination requirements, passed both houses as of May 3.  

NebraskaLB 148, to make multiple changes to the Securities Act of NE, was approved by the Gov. Apr. 27.

NevadaSB 383, which would revise the definition of financial planner to remove the exclusions for BDs & IAs, passed the Senate and was referred to Assembly Commerce & Labor Apr. 19.  SIFMA opposes this bill.

NevadaSB 32, which would revise the exemption from registration and filing requirements for certain transactions involving securities from 25 to 35 purchasers, passed the Senate as amended, was heard in Assembly Judiciary May 3, and is scheduled to be heard again May 9.

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, passed the Senate as amended, was heard in Assembly Judiciary Apr. 21, and is scheduled to be heard again May 9.

New HampshireSB 85, which would make various changes to the Uniform Securities Act, passed the Senate with amendments and was heard in House Commerce & Consumer Affairs May 3.  

New York StateA. 6372 would require arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, to include all issues in dispute and the arbitrator's findings of fact and conclusions of law.  This bill passed the Assembly and was referred to Senate Judiciary May 3.

New York StateA. 5248, to require reps of companies administering a contract for consumer goods, services, or employment to disclose the existence of and explain any mandatory arbitration clause contained within the contract and clearly explain what a mandatory arbitration clause is, was reported from Rules Apr. 24.

North CarolinaH. 772, which would make conforming and modernizing changes to the NC International Commercial Arbitration and Conciliation Act (ICACA) to more closely align with other state arbitration laws, passed the House and was referred to Senate Rules & Ops of the State Apr. 26.

OklahomaHB 1243, to amend permissible investments by guardians and require certain contractual arrangements with financial professionals, was approved by the Gov. May 2.

OregonSB 96, to require BDs and state IAs to maintain Errors & Omissions insurance of at least $1M as a condition of state licensure, passed the Senate and will be heard in House Business & Labor May 8.

West VirginiaHB 2851 to update the fee structure for BDs (initial or renewal registration filing fee will be $300 for BDs and an issuer agent, $66 for an agent, $200 for an IA and $75 for each IA rep), was approved by the Gov. Apr. 26.  

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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 recently amended to include just the executive compensation component; SIFMA remains opposed.  The bill will be heard in committee May 10.

ColoradoHB 1242, to establish a statewide ballot question to impose a new state sales and use tax for 20 years to fund state transportation projects, passed the House but was postponed indefinitely in Senate Finance Apr. 25. 

ColoradoHB 1216, which would create the sales and use tax simplification task force, passed the House and was reported favorably out of Senate Appropriations May 5.

ConnecticutHB 7313, a carried interest bill to impose a 19% surcharge on income derived from investment management services, did not meet its committee passage deadline and is now dead.  SIFMA opposed the legislation. 

ConnecticutHB 7320 would 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. This bill was referred to the Office of Legislative Research and the Office of Fiscal Analysis for further review.

ConnecticutHB 7322, to increase the sales tax rate, increase the personal income tax for the upper income tax brackets, and allow municipalities to tax real property at a greater rate, had a hearing in the Joint Comm. on Finance, Revenue & Bonding Apr. 27.

FloridaHB 7099 / SB 1156 would adopt the 2017 version of the Internal Revenue Code.  HB 7099 passed both Houses as amended May 3; SB 1156 was placed on the calendar for 2nd reading Apr. 18.

IdahoHB 67, which would have cut the corporate income tax rate to 7.2%, was vetoed by the Gov. Apr. 11.

Illinois.  Carried interest legislation SB 1719 was heard in Revenue May 3; HB 3393 was amended with House Comm. Amendment 1 and was re-referred to Rules Apr. 28.

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 the House Apr. 28 as amended and is scheduled to be heard in Senate comm. May 11.  SB 1798 had its Senate 3rd reading deadline extended to May 9.

Louisiana.  Several tax bills were referred to Ways & Means Apr. 10:  HB 80 would phase out the corporate franchise tax over a 10-yr. period,  HB 95 would eliminate the income tax deduction for federal income taxes paid for purposes of calculating corporate income tax liability, HB 102 would repeal the state income tax deduction for federal income taxes paid for purposes of calculating corporate income tax, HB 108 would establish a flat tax rate for purposes of calculating corporation income tax liability, HB 385 would repeal the corporate income and franchise taxes and prohibits certain corporate taxpayers from claiming certain refundable tax credits, HB 421 would reduce the corporate income tax rate, HB 422 would eliminate the deductibility of federal income taxes paid from state individual and corporate income taxes & HB 433 would phase out the corporate franchise tax over a 10-yr. period beginning Jan. 1, 2020.

LouisianaHB 628, which would levy a new a new Commercial Activity Tax at a rate of .35% for corporations with $1.5M in gross revenues, was referred to Ways & Means Apr. 18.

LouisianaHB 648, which would levy the LA Business Tax on corporations and entities taxed as corporations for federal income tax purposes, was referred to Ways & Means Apr. 20.

MarylandHB 659 / SB 823 would establish a Task Force to Study Tax Sales in MD to examine the tax sale system to maximize resources.  Both bills passed both houses as amended Apr. 8 & 10, respectively. 

Minnesota.  The Omnibus Tax Conference Comm. Agreement and final bill (HF 4 / SF 2255), which includes tax benefits for contributions to all qualified 529 plans, were released Apr. 18; no issues of concern to the industry have been identified.  Next steps include negotiations with the Gov. and final passage by the legislature.

MissouriSB 285, which would phase down the corporate income tax rate from 6¼ % to 4% if net revenue targets are met, is awaiting Senate floor consideration.

MontanaSB 317, to establish the interest rate for all taxes except the individual income tax shall be 4 % above prime, was transmitted to the Gov. May 1.

MontanaSB 138, to set a limit on how long a taxpayer may wait before successfully applying for a refund or credit, was transmitted to the Gov. May 1.

MontanaHB 550, which would place limits on the net operating loss deduction, was amended by the Gov. and returned from enrolling May 1.

New HampshireSB 16, which would reauthorize a legislative commission to study apportionment of gross business profits and report findings by Nov. 1, 2017, passed both houses in different forms May 4.

North CarolinaSB 325, which would make several corporate income tax changes, including reducing the rate and adopting market-based sourcing apportionment, passed the Senate and was referred to House Rules Apr. 10.

OregonHB 2019, which would require the Dept. of Revenue to submit corporate tax return info to the Legislative Revenue, was heard in Revenue May 2.

Oregon.  On May 2, a business tax framework statement was sent out by the OR Joint Comm. on Tax Reform, which is considering replacing the OR corporate excise/income tax with a Corporate Activities Tax.  

OregonHB 2275, which would redefine income subject to apportionment to align with the Multistate Tax Commission model, passed the House and passed 2nd reading in the Senate May 1.

TennesseeSB 132 / HB 41 would reduce the $400 professional fee tax by $80/yr. beginning in FY 2018 and phase the tax out entirely by FY 2022.  On May 8, SB 132 will be heard in full committee and HB 41 will be heard in subcommittee. 

TennesseeHB 320, which modifies the formula for calculating quarterly estimated payments for franchise and excise taxes, was signed by the Gov. Apr. 19 as Ch. 194.

Texas.  HB 28, relating to the use of certain surplus state revenue to phase out the franchise tax and to the expiration of that tax, passed the House Apr. 28 and was referred to Senate Finance May 1.  

VirginiaHB 1500, VA’s budget proposal, was approved by the Gov. with amendments Apr. 28 and is now Ch. 836.

West VirginiaSB 484, the Gov.’s budget proposal which would enact several state tax increases (including, at one time, expanding the sales tax to several professional services) passed both houses in different forms and died upon adjournment Apr. 8.  Now in special session, the legislature is expected to consider tax measures beginning May 15; specifics are not yet available.

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Senior Investors

AlabamaSB 274, to establish the Elder Abuse Protection Order and Enforcement Act, passed both houses as of May 4.   

AlaskaHB 170, a securities omnibus bill that includes Report & Hold provisions, was amended and passed the House Apr. 17.  The bill was read in Senate Labor & Commerce May 1.

ArkansasHB 170, which would establish increased civil penalties for harming older persons and vulnerable adults, passed the House and was referred to Senate Labor & Commerce May 1.

CaliforniaAB 611, to be heard in Judiciary May 9 as amended, would authorize a mandated reporter of suspected financial abuse to not honor any power of attorney if he or she makes or has actual knowledge of someone else making a report to APS or law enforcement of suspected financial abuse. 

CaliforniaAB 728, which would expand the list of offenses that make a defendant ineligible for expungement relief to include elder abuse, was amended and re-referred to Health Apr. 24.

ColoradoHB 1253, a Report & Hold bill with many beneficial features on which SIFMA testified, passed both houses as amended and will be sent to the Gov.

FloridaHB 981, to create a public records exemption for certain personal identifying info, personal health and financial records, and photographs and video recordings held by the Dept. of Elderly Affairs, passed both houses as of May 3.

IndianaHB 1526, the Securities Commissioner’s bill to add IAs to the state Report & Hold law, was signed by the Gov. Apr. 24 as Public Law 158. 

MarylandHB 1149 / SB 951 contain Report & Hold language on which SIFMA successfully worked with the Securities Commissioner toward harmonization with the FINRA rule.  The bill passed both houses and awaits Gov. action; it will be effective Oct. 1, 2017.    

MichiganSB 345, intro’d May 2, would protect BD/IA record-sharing to APS and law enforcement and require the securities administrator to make available web-based training materials on prevention and detection of financial exploitation of financially endangered adults.

MichiganSB 346 would impose mandatory reporting, establish a Report & Hold process, and only take effect unless SB 345 is enacted into law.

MissouriSB 103 would require the Dept. of Health & Senior Services employees investigating a report of elder abuse or neglect to provide the alleged perpetrator, if he or she is present during an initial visit, with a written description of the investigation process and the Dept.’s policies on such investigations.  The bill is out of Senate comm. and is awaiting Senate floor consideration.

NevadaSB 360, to revise provisions on the protection of older and vulnerable persons and persons in need of a guardian, passed the Senate as amended and was referred to Assembly Judiciary Apr. 26. 

New MexicoHB 326, which originally mirrored the NASAA model but was substantially amended to include many of SIFMA’s recommendations, was signed by the Gov. Apr. 7.  

North DakotaSB 2322, a Report & Hold bill with several changes from the NASAA Model, including coverage for suspicious transactions, was signed by the Gov. Apr. 10.

OregonSB 95, a bill to establish Report & Hold provisions, passed the Senate and was read for the 1st time in the House May 2.   

OregonHB 2622, a voluntary, bank-side version of Report & Hold that permits refusal of suspicious transactions and other requests, passed the House Apr. 20 and has a Senate Judiciary Hearing & Work Session May 9.  

TennesseeSB 1192 would make securities changes and add very good voluntary Report & Hold senior investor protection provisions.  SB 1192 passed both houses as of May 4 with SIFMA’s support.

TexasHB 3921 / SB 2067 are strong Report & Hold bills that also extend protection to transactions.  HB 3921 passed the House May 4 and was referred to Senate comm. May 5. SB 2067 was left pending in Business & Commerce Apr. 25.

VermontSB 56, which would enhance penalties for insurance or securities violations involving a vulnerable adult, passed both houses as amended May 2.

Washington StateHB 1402, to restrict a guardian or limited guardian from restricting the communication, visitation, interaction, or association of an incapacitated person, was delivered to the Gov. Apr. 21.

Washington StateHB 1153, to create the crimes of theft from a vulnerable adult in the 1st and 2nd degree, was delivered to the Gov. Apr. 18.

Washington StateSB 5349, to require the state to establish an elder justice center demonstration programs, was reintroduced Apr. 24.

 

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State Run Retirement Savings Plans for Private Workers

Federal Update.  Congress voted to pass 2 resolutions to repeal federal Dept. of Labor rules which would have exempted states (HJR 66) and municipalities (HJR 67) from ERISA - federal retirement plan protection rules - when they established certain mandatory-on-employer, auto-IRA plans for private workers.   The President signed HJR 67 on Apr. 13 and is expected to sign HJR 66; when signed, all retirement plans will again have to adhere to the same set of rules and offer the same investor protections.

California.  The CA Secure Choice Retirement Savings Investment Board met Apr. 24.  At the meeting, the board received legal analysis and legislative updates and heard a presentation concerning lessons learned from the rollout of the federal Affordable Care Act.

ColoradoHB 1290, which would establish a state run retirement savings plan for private-sector employees, passed the House Apr. 18 but was postponed indefinitely in Senate Comm. on Apr. 26; SIFMA opposed.

HawaiiSCR 16, which would convene a legislative working group to investigate and identify strategies to promote greater retirement savings for private sector employees, passed the Senate as amended and was re-referred to House Finance Apr. 11.

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, passed both houses as of May 3.

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 heard in Legislative Operations & Elections Apr. 18.

North CarolinaH. 633, referred to the Pensions & Retirement Comm. Apr. 10, is a state run retirement 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.   

Oregon.  The OR Retirement Savings Plan Board met on Apr. 18; the meeting included several progress updates and Board approval of rules.

TexasHB 3601, left pending in Pensions Apr. 24, would create a state-administered automatic IRA savings program and a state-sponsored multiple employer plan. 

VermontSB 135, which seeks to promote economic development by, among other things, adopting and implementing a voluntary MEP for private sector employers, passed both houses as of May 4.

Washington StateSB 5675, signed by the Gov. Apr. 19 as Ch. 69 2017, would amend the existing Small Business Retirement Marketplace law to permit de minimus fees. 

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Unclaimed Property

MissouriHB 985, which would create a Class A misdemeanor offense for failure to register with the State Treasurer prior to entering into an agreement to recover lost property from the treasurer for a 3rd party, was reported Do Pass from the Administrative Oversight Comm. Apr. 19.

New York StateA. 1881, which would make several changes to unclaimed property law, including raising the dollar thresholds triggering reporting and certified mailing requirements, will be heard in comm. May 9.

Rhode IslandHB 5743, as amended, would facilitate info sharing between the treasury, state retirement system, division of taxation, and the Dept. of Labor & training concerning unclaimed property, taxation collection, and pension benefit monitoring.  It passed the House Apr. 25. Companion bill SB 638 was heard in Finance May 2.

TennesseeHB 420 / SB 371 would amend several unclaimed property provisions, including dormancy periods, reporting, and due diligence requirements.  HB 420 will be heard in the Finance, Ways & Means Subcomm. May 8; SB 371 is awaiting Senate floor consideration.

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.

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529 Savings Plans

ArkansasHB 1762, which would allow an employer to make a matching contribution to an employee’s tax-deferred tuition savings program as an employee benefit, was signed by the Gov. Apr. 5 as Act 884.   

CaliforniaAB 34, which would provide for a $100 deposit into certain CA 529 accounts owned by state residents, was reported out of Higher Ed and will be heard in Appropriations May 10.

CaliforniaSB 218, which would authorize ABLE account transfers upon the death of the designated beneficiary, was heard in Appropriations May 1 and placed on the suspense file.

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, was introduced on Apr. 17 and referred to Comm. Apr. 20.

CaliforniaAB 1175, to enact the Every Kid Counts Act to provide for a one-time deposit by the state to each Golden State Scholarshare Trust Act account, did not meet its committee passage deadline so will see no further action this year. 

ColoradoHB 1007, which would concern a tax benefit for an employer who contributes to an employee's collegeinvest account and enact the ‘Increase College Savings Act,’ was indefinitely postponed in the Education Comm. Apr. 12.

IllinoisSB 2017, to create a tax credit for ABLE account contributions, had its committee deadline extended to May 5.  A similar bill, HB 3163, passed the House and was assigned to Senate Revenue May 2.

IllinoisHB 3179 / SB 1758 would modify the term ‘qualified expenses’ for the College Savings Pool.  HB 3179 passed the House and is in the Senate as of May 5; SB 1758 passed the Senate and is in House Rules.

IllinoisHB 3691, to establish and fund education savings accounts, passed the House as amended and will be heard in Senate Higher Ed. May 9.   

Minnesota.  The Omnibus Tax Conference Comm. Agreement and final bill (HF 4 / SF 2255), which includes tax benefits for contributions to all qualified 529 plans, were released Apr. 18; no issues of concern to the industry have been identified.  Next steps include negotiations with the Gov. and final passage by the legislature.

NevadaSB 76, which would expand the list of authorized investments for certain public entities, including the NV Higher Education Prepaid Tuition Trust Fund, passed the Senate Apr. 17 and was heard in Gov’t Affairs Apr. 27.

NevadaSB 242, which would 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 Apr. 17 and was heard in Assembly Gov’t Affairs Apr. 27.

New York StateA. 7431, which would amend the program requirements for the NYS college choice tuition savings program, was referred to Higher Ed. Apr. 25.

New York StateA. 7450, to increase the contribution that a resident taxpayer may make to family tuition accounts for each beneficiary during a tax year, was referred to Ways & Means Apr. 26.

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 would prohibit the Dept. of Human Services and OR Health Authority from seeking payment from amounts in ABLE account.  The bill passed the Senate and was heard in House Human Services & Housing May 4.

TexasSB 1764, which would provide that a guardian of an estate may be terminated if the assets are placed in an ABLE account with the ward as beneficiary, passed the Senate on Apr. 26. 

TexasSB 377 would make changes to the state ABLE Program and give the Board the power to engage services through a consortium of states or with another entity to act as plan manager.  The bill passed the Senate Apr. 3 and was received in the House Apr. 4.

Washington StateHB 2205, to make several changes intended to increase the stability of and demand for the guaranteed education tuition program, was re-introduced in special session Apr. 24.

Washington StateSB 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, was re-introduced in special session Apr. 24.

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Labor and Employment

ArkansasHB 2000, enacted Apr. 7, will prohibit employers from requiring an employee or prospective employee to consent to a request for a credit report.

CaliforniaAB 1008, a ban-the-box bill, passed the Labor & Employment Comm. May 3 as amended and was referred to Appropriations.  SIFMA submitted a letter of opposition.

CaliforniaAB 5, which would require an employer with 10+ employees to offer additional hours of work to an existing nonexempt employee before hiring an additional employee or subcontractor, was heard in Appropriations May 3.

ColoradoHB 1305, which would require an employer with 10+ employees to offer additional hours of work to an existing nonexempt employee before hiring an additional employee or subcontractor, passed the Labor & Employment Comm. but was postponed in Appropriations May 3.

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.

IllinoisHB 1606, which would amend the Right to Privacy in the Workplace Act, was re-referred to Rules Apr. 28 (died).  

IllinoisHB 3822, which would amend the Criminal Identification Act, was re-referred to Rules Apr. 28 (died). 

IndianaSB 312, to ban political subdivisions from prohibiting an employer from obtaining or using criminal history info during the hiring process to the extent allowed by federal or state law, rules, or regulations, was signed by the Gov. Apr. 27 as Public Law 210.

MissouriSB 316, a social media bill that contains our SRO compliance language, is awaiting Senate floor consideration. 

MissouriHB 564, to 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, was reported from its 2nd comm. on Apr. 20.

New York CityInt. 1253, which prohibits employers from seeking salary history information from job applicants except in certain circumstances, was signed by the Mayor May 4 and is now law.

New York StateA. 5485 , which would prohibit an employer from requesting or requiring that an employee or applicant disclose any user name, password, or other means for accessing a personal account or service through specified electronic communications devices and contains an SRO exemption, was reported out of Labor & referred to Codes May 2.

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, was reported from Business & Oversight as amended Apr. 12.

TexasHB 317, to limit the use of credit background checks but provide exemptions both for financial institutions (including securities firms) and where such info is substantially related to the employment position, was reported favorably from comm. Apr. 3.

Vermont.   HB 462, which would prohibit an employer from requiring or requesting that an employee or applicant disclose personal social media account info, passed both houses as amended Apr. 26.

Washington State.   HB 1298, a ban-the-box bill, was returned to House Rules Comm. for 3rd reading Apr. 23.

Washington State.   HB 1829, which would exempt info on the public and private infrastructure and security of computer and telecommunications networks from disclosure under the public records act, was signed by the Gov. Apr. 27 as Ch. 149/2017.

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State & Local Business Relations

CaliforniaAB 1597, a divestment bill targeting the Turkish gov’t, was heard in Appropriations May 3 and sent to the suspense file.

CaliforniaSB 560, to require the Teachers Retirement Board and CalPERS to consider the risks posed by climate change in its financial decision-making and investments, was reported from the Public Employment and Retirement Comm. on Apr. 17 and has an Appropriations hearing May 15.

CaliforniaAB 20, requiring Dakota Access Pipeline investment reporting and consideration of indigenous tribal rights in investment selection, was reported from its first committee on Apr. 28 and placed on the Appropriations suspense file on May 3. 

CaliforniaAB 867, to redefine ‘contributions’ by amending the Political Reform Act of 1974, passed the Assembly as amended May 4.   

FloridaHB 457, to prohibit material support in connection with designated foreign terrorist organizations, passed the House Apr. 28 and the Senate May 5.

HawaiiHB 1588, to prohibit the issuance of GO bonds for certain capital assets, was transmitted to the Gov. as amended May 3.

IllinoisHB 3061, to require the IL Investment Policy Board to identify and restrict investment in all companies that contract to build a border wall, was re-referred to Rules Apr. 28 (died).  

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 postponed in State Government Apr. 27.  

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 re-referred to Rules as amended Apr. 28. 

IllinoisHB 3407, which would remove statutory provisions concerning interest payable on variable rate bonds, provisions allowing certain gov’t units to engage in swap agreements, and provisions authorizing variable interest rates and certain credit or liquidity enhancement arrangements, among other sections, passed the House as amended and arrived in the Senate May 2.  

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 the House as amended and arrived in the Senate May 2.

IllinoisSB 778, (on 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 (on 3rd reading Apr. 27) provides 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.

LouisianaSB 223, referred to Finance Apr. 10, would further prohibit state investment (including state funds) in businesses with ties to, or funds that invest directly or indirectly in, prohibited terror-sponsor nations including Iran, Libya, North Korea, Sudan and Syria.  It would expand the definition of ‘investment fund manager’ and require them to review all existing state funds for prohibited investments, make various determinations, and report to the State Treasurer.

MarylandHB 118 / SB 632 are anti-pay-to-play bills 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.  Both bills passed both houses as amended Apr. 6 & 8, respectively.

MarylandHB 898, to restrict coordinated expenditures more than specified limits, passed both houses as amended Apr. 8.

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, passed both houses as amended Apr. 8.

MinnesotaHF 2472 / SF 2085 would require the State Board of Investment to assess the risks to public pension investments in fossil fuel companies due to climate change.  HF 2472 was intro’d and referred to Gov. Ops Mar. 20; SF 2085 passed 2nd reading May 4.  

MissouriHB 950, which would prohibit certain public entities from engaging in a negotiated sale of debt without a municipal advisor, passed Administrative Oversight Apr. 13.  SIFMA opposes this bill.

MontanaHB 501, an anti-Boycott, Divestment & Sanctions of Israel bill, died Apr. 28.  

NevadaSB 26 , to ban certain gov’t contracts with and investments in companies that boycott Israel, passed the Senate on Apr. 17 and was referred to Assembly Comm. on Gov’t Affairs Apr. 18.

New York StateA. 7321, to ban investment of public funds in companies doing business in Iran, was referred to Gov’t Employees Apr. 24. 

New York State.  Executive Order #162, applicable to state contracts Jun. 1, requires contractors to disclose the job title and salary of each employee of a contractor performing work on a State contract, or of each employee in the contractor’s entire workforce if the individuals working directly on a State contract can’t be identified. 

New York StateA. 2881 / S. 2420 would authorize state chartered banking institutions to pledge investment grade corporate bonds to secure state and municipal deposits. S. 2420 advances to 3rd reading Apr. 24.

North CarolinaHB 161, which would prohibit the NC Retirement Systems or the State Treasurer from directly investing in any company boycotting Israel, passed the House and was referred to Senate Rules & Ops Mar. 27.  

Rhode Island. HB 6007, to extend the limitation on political contributions for state or municipal vendors and establish significant penalties for violations, was heard in Judiciary Apr. 12; the bill was held for further study.

Rhode IslandHB 5505, which would prohibit the state investment commission from investing in companies that are involved in the construction of a US-Mexico border, was heard in Finance May 3.

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, was heard in Judiciary May 4.

Rhode IslandSB 834, which would provide increased sanctions and reporting requirements for campaign finance activities, was heard in Judiciary May 4 and held for further study.

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.  H. 3726 was signed by the Gov. Apr. 25, now Act No. 13.   

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 the Senate but was amended in the House May 2.

TexasHCR 82, which would urge Congress to retain the tax exemption for municipal bonds, was reported from comm. Apr. 20 and sent to Local and Consent Calendar Apr. 24. 

TexasHB 89, signed by the Gov. May 2, prohibits gov’t contracting unless the contract contains verification that the company will not boycott Israel during the contract term.

TexasHB 1143 / SB 253 would revise investment prohibitions and divestment requirements for certain investments of public money relating to terrorist activities and Sudan.  SB 253 passed the Senate and passed House State Affairs May 5.  HB 1143 is awaiting House floor consideration.

TexasSB 29, to restrict state contracts with and investments in companies that boycott Israel, passed the Senate and was referred to House State Affairs Apr. 18.   

TexasHB 1003, which would make no-load money market mutual funds eligible as an authorized investment for a governmental entity in certain instances, passed the House as amended and was received in the Senate May 1 and referred to comm. May 5.

VermontSB 8, which would impose restrictions on campaign contributions by contractors, has passed both houses in different forms. 

WisconsinAB 273 / SB 210 would 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. The bills were introduced and referred to Comm. Apr. 24 & 20, respectively.

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Cybersecurity / Data & Privacy

CaliforniaAB 364, passed its 1st comm. on Mar. 28 and referred to the Appropriations suspense file on Apr. 26, would require 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, will be heard in Appropriations May 10.

CaliforniaAB 1359, re-referred to Appropriations as amended May 1, would state the intent of the Legislature to enact subsequent legislation that would require certain companies to confidentially report cyberattacks to CalSIC, and would impose certain duties on CalSIC with respect to the information submitted.  SIFMA opposes this bill.

CaliforniaAB 531, to be heard in Appropriations as amended May 10, 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.  A public hearing was held May 2 on omnibus securities regs which include notable cybersecurity requirements.  SIFMA has suggested changes to the proposed regulation.

HawaiiHB 598, to place the HI Cybersecurity, Economic, Education, and Infrastructure Security Coordinator within the Office of Enterprise Technology Services, passed both houses in different forms; conferees have been appointed.

IowaHF 601, which would provide for the confidentiality of certain cyber-security and critical infrastructure info developed and maintained by the gov’t, passed both houses and was sent to the Gov. Apr. 25.

MarylandHB 974 / SB 525 would change data breach investigation and notification standards. HB 974 was approved by the Gov. as amended May 4, now Ch. 518; SB 525 passed the Senate as amended Apr. 7.

MinnesotaHF 1896 / SF 1251 would establish the Legislative Commission on Cyber Security. HF 1896 was amended and re-referred to State Gov’t Finance Comm. Mar. 7; SF 1251 passed the Senate as amended May 4. 

NevadaAB 471, which would create the NV Office of Cyber Defense Coordination, was amended and re-referred to Ways & Means Apr. 19.

New York StateS. 5601 / A. 7167 would broaden the scope of info triggering notification in a breach and double civil penalties.  A. 7167 was referred to Codes Apr. 25; S. 5601 advanced to 3rd reading May 1.

New York StateA. 7232, referred to Assembly Consumer Affairs Apr. 12, would create a specific timetable for disclosure of a break (with a 45-day maximum).

TexasHB 8, to establish cybersecurity protocols for state agencies, passed the House as amended and was referred to Senate Business & Commerce May 3.

TexasHB 2192, which would relate to comprehensive information security assessments on state agency info resources and network systems and digital data storage and security, was reported favorably from Gov’t Transparency & Operation Apr. 12 and is awaiting floor consideration. 

TexasHB 1605, which passed the House May 6, states that no later than Aug. 31 of each even-numbered year, the department shall submit to the governor, the lieutenant gov., and the legislature a report identifying preventive and recovery efforts the state can undertake to improve cybersecurity in this state. 

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Crowdfunding

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 (scheduled to be heard May 10) and MI HB 4305 (heard in Commerce & Trade May 2).

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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.

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Upcoming Events

Operations Conference & Exhibition.  Join your peers, subject matter experts, industry leaders and regulators at the 44th annual Operations Conference and Exhibition to address industry changes driven by regulation, risk, resiliency, and the evolution of technology. This year, the event will take place from May 8 – 11 in Boca Raton.  The program includes sessions on top operations priorities with a diverse speaker line-up including: Robert S. Mueller, III, Partner at WilmerHale & Former Director of the FBI; Richard Dzina, Executive Vice President at the Federal Reserve Bank of New York; Ron Lefferts, Managing Partner, IBM North America; Amanda Smith, Senior Vice President at Fidelity Investments; Bill Wollman, Executive Vice President at FINRA; and more.

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

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State Legislatures in Session

*Indicates Special Session

Alabama

Alaska

California

Colorado

Connecticut

Delaware

Florida

Illinois

Kansas

Louisiana

Maine

Massachusetts

Michigan

Minnesota

Missouri

Nebraska

Nevada

New Hampshire

New Jersey

New York State

North Carolina

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

Tennessee

Texas

Vermont

Washington State*

West Virginia

Wisconsin

 

 

 

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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: sifma.org/state to see all news and activity.

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