February 2017

Legislative and Regulatory Highlights from State and Local Governments


CaliforniaSB 33, to prohibit pre-contract requirements waiving legal rights for fraud, identity theft, and other wrongful use of personal identifying information, was intro’d Jan. 12.

ConnecticutHB 6992, to place additional restrictions on financial planners, defined as those not regulated under ERISA, the Investment Advisers Act or the Securities Exchange Act, was reported out of Aging Feb. 14.

Connecticut.  At the Feb. 7 Banking Comm. hearing, the Joint Comm. decided to draft legislation on a variety of topics, including broker-dealer disclosure and a best interest test for certain financial services. 

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, was filed Feb. 9.

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 was reported out of House Banking & Insurance Feb. 15.

KentuckyHB 329, a DFI bill to increase felony charges for violations of the securities code based on the amount of the fraud, was sent to Banking & Insurance Feb. 14. 

MarylandHB 1134 / SB 884, which would establish the MD Financial Consumer Protection Commission, has a hearing in Economic Matters Mar. 10.

MississippiSB 2423, which would clarify grounds for discipline for violations of the MS Securities Act, passed the Senate Feb. 6.

NebraskaLB 148, to make various changes to the NE Securities Act, was placed on the General File Feb. 2.

New York StateA. 2464, to mandate greater disclosure by non-fiduciaries that provide investment advice and require a signed acknowledgement of disclosure to clients that the advisor owes no fiduciary duty, was referred to Judiciary Jan. 20.

North DakotaSB 2266, which originally would have had the Insurance Commissioner take over the duties of the Dept. of Securities (which would have been dissolved), was amended to a fiscal study bill of that change.  It had a Senate hearing Feb. 1.

OklahomaHB 1783, which would require disclosure on a specific form (in apparent violation of NSMIA), of all fees, charges, expenses and other costs charged by, was referred to Rules Feb. 7. 

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), had a hearing in Business & Transportation Feb. 15. 

UtahHB 106, which passed the House Feb. 6 and went on the Senate consent calendar Feb. 9, clarifies the calculation of damages for certain violations of the UT USA. 

Virginia.  New amendments to an exemption for foreign issued securities were effective Feb. 1. 

WyomingHB 13, which would specify that a local government investing public funds is subject to the WY Uniform Prudent Investor Act, passed both Houses as of Feb. 13.

Crowdfunding.  UT  HB 171, a crowdfunding bill with fairly high limits, was assigned to Comm. Jan. 31, and a MO crowdfunding bill, SB 12, was amended and voted out of Comm. Jan. 31.


Unclaimed Property

ArkansasHB 1142, to require pre-escheatment account liquidation, passed the House and was heard in the Senate Feb. 16; SIFMA has concerns

DelawareSB 13, which would enact general reforms to the state unclaimed property system, was signed by the Gov. Feb. 2.

New York StateA. 3266 / S. 1105, to extend the term for claiming unclaimed property from 3 to 5 years, was sent to Ways & Means Jan. 27.

OklahomaHB 1531, to create the Unclaimed Property Endowment Trust Fund, was reported Do Pass Feb. 9.

South DakotaSB 34, which would revise certain provisions related to securities held as unclaimed property, was deferred in the House Feb. 14.  SIFMA submitted comments expressing concern.

TennesseeHB 420 / SB 371, which would amend unclaimed property provisions including dormancy periods, reporting, and due diligence requirements, were intro’d Feb. 6. 


State Run Retirement Savings Plans for private sector workers

ArkansasHB 1142, to require pre-escheatment account liquidation, passed the House and was heard in the Senate Feb. 16; SIFMA has concerns

DelawareSB 13, which would enact general reforms to the state unclaimed property system, was signed by the Gov. Feb. 2.

New York StateA. 3266 / S. 1105, to extend the term for claiming unclaimed property from 3 to 5 years, was sent to Ways & Means Jan. 27.

OklahomaHB 1531, to create the Unclaimed Property Endowment Trust Fund, was reported Do Pass Feb. 9.

South DakotaSB 34, which would revise certain provisions related to securities held as unclaimed property, was deferred in the House Feb. 14.  SIFMA submitted comments expressing concern.

TennesseeHB 420 / SB 371, which would amend unclaimed property provisions including dormancy periods, reporting, and due diligence requirements, were intro’d Feb. 6. 



Senior Investors

ArizonaSB 1364, intro’d Jan. 26, would create a study Committee to examine the state’s current system of preventing, investigating and prosecuting elder abuse cases and examine existing barriers, services and resources available to address elder abuse. 

ConnecticutHB 7029, which would permit financial institutions who suspected financial exploitation to delay or refuse to execute transactions or disbursements without fear of liability, was heard in Committee on Feb. 14.  SIFMA submitted testimony encouraging the Committee to amend the bill to include BDs & IAs.

HawaiiHB 432, to make financial exploitation of an elder by a caregiver a felony, had a hearing Feb. 16.

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

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

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 will be heard Feb. 23; the House bill has a hearing Mar. 10. 

MinnesotaSF 919, a NASAA Model Report & Hold bill which has not been amended to reflect the newly-approved FINRA rules, was intro’d & referred to Aging Feb. 13.

MississippiHB 386, which would have required persons who make reports to DHS about suspected abuse, neglect, or exploitation of a vulnerable person to provide their name, address and phone number, died in Comm. Jan. 31.

MississippiHB 753, which would expand the authority of the Dept. of Human Services when investigating the abuse of vulnerable persons, passed the House Feb. 10 and was transmitted to the Senate Feb. 14.

MississippiHB 1003, which would have required BDs to immediately file a report with the Dept. of Human Services if senior financial exploitation is suspected, died Feb. 9.  

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 was transmitted to House Feb. 8.

MontanaHB 24, a Report & Hold bill based on the NASAA model, passed the House as amended Feb. 15. We submitted amendments jointly with NAIFA.

MontanaHB 139, which would revise terminology related to protective services, was tabled in Comm. Jan. 20.

New MexicoHB 326, senior legislation comparable to the NASAA Model legislation, was intro’d and referred to 2 House Committees Feb. 6. 

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

North DakotaSB 2322, a Report & Hold bill similar to the NASAA Model, passed the Senate Feb. 2 before new rules were approved by the SEC.

OregonSB 95, a Report & Hold bill which has not been amended to reflect the newly-approved FINRA rules, had a hearing Feb. 13 with SIFMA and several others requesting amendments. 

OregonHB 2622, to authorize banks to refuse certain financial transactions with the reasonable belief financial exploitation of vulnerable person may have occurred, or is being attempted, had a Judiciary hearing Feb. 15. 

TennesseeHB 304, intro’d Jan. 31, is modeled after the NASAA Report & Hold bill but reporting would be voluntary, not mandatory.

Texas.  SIFMA is part of a broad coalition working on senior investor protection Report & Hold legislation that would apply to financial institutions, BDs and IAs.  The legislation is under review by relevant Comm. chairmen and leg counsel. 

VirginiaHB 1945, to broaden the definition of adult exploitation for the purposes of social services laws, passed both Houses as of Feb. 14.

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. 13.

Washington StateSB 5099, which would increase penalties and reduce barriers to prosecution for seniors-related crimes, was heard in Executive Session Feb. 14.

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 StateHB 1402, to prohibit a guardian from restricting an incapacitated person's right to communicate or associate with any person without good cause to believe there is a need to do so to protect the incapacitated person from financial exploitation, was sent to Appropriations Feb. 6.


529 Savings Plans

ColoradoHB 1007, to permit employers who contribute to an employee’s ‘collegeinvest’ savings account to deduct that contribution from their adjusted gross income, has a hearing in House Education Feb. 22.

HawaiiSB 940, heard in Comm. Feb. 14, would provide a tax deduction up to $5K single/$10K joint for contributions to HI's 529 college savings program, beginning in 2018.

HawaiiHB 128, amended and reported out of Committee Feb. 13, would provide for a tax credit for taxpayers of 10% of the first $2.5K single/$5K joint contributed to the HI 529 plan.

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.

IllinoisHB 3163, which would permit ABLE account contributions to be deducted from adjusted gross income, was referred to Rules Feb. 9. 

IllinoisHB 3179 / SB 1758, to modify the term ‘qualified expenses’ for the College Savings Pool, were referred to Comm. Feb. 9. 

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, was referred to Assignments Feb. 10.

MarylandSB 213, which would alter the amount the State is required to contribute to certain MD 529 account holders, had a hearing in Budget & Tax Feb. 8. 

Mississippi.  Bills to establish prepaid tuition plans and other new education savings accounts: HB 11, SB 2240, SB 2466 / SB 2247, SB 2574 (all died in Comm. Jan. 31); bills to establish ABLE accounts: HB 162 (passed House Feb. 2) / SB 2311 (passed the Senate Feb. 7).

North DakotaHB 1382, to establish and fund education savings accounts to provide funds for qualified education expenses of program participants, passed House Feb. 14.

VirginiaHB 1959, to provide a 30% credit for employer contributions up to $1,000 for a student intern's VA College Savings Plan contribution, was left in Finance Feb. 7.

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


Taxes, Fees & Budget

ArizonaHB 2064, to conform the state with the Internal Revenue Code, passed the House and was sent to the Senate.  A similar Senate bill, SB 1290, was objected to when placed on the Senate consent calendar.

Arizona.  The corporate income tax rate is scheduled to be reduced from 5.5% to 4.9% after Dec. 31, 2016, down from almost 7% in 2013.  HB 2328, to freeze the rate at 5.5%, was read for a 2nd time Jan. 19. 

ArkansasHB 1159, which would establish a task force to study the state’s tax system to find ways to increase AR competitiveness, was signed by the Gov. Feb. 1, as Act 79.

ConnecticutHB 6973, which would impose a surcharge of 19% on investment management services fees, effective upon the passage of similar legislation by MA, NJ & NY, was referred to Finance, Revenue & Banking Jan. 27. 

ConnecticutHB 6554, to require that net profits of investment funds attributable to certain investment management services performed by fund managers be treated as ordinary income subject to income taxes, rather than as investment profits subject to the capital gains tax, was referred to Finance, Revenue & Bonding Jan. 24.

ConnecticutSB 98, which would repeal the state’s 20% corporate income tax surcharge, was referred to Finance, Revenue & Bonding Jan. 24.

ConnecticutHB 6373 to amend the corporate income tax on public corporations with a tax rate based on the ratio between such corporation’s highest paid employee and the median compensation level of the corporation’s employees, on a scale from 5% to 25% tax, was sent to the Joint Finance Comm. Jan. 23. 

ConnecticutHB 6101, which would deny economic assistance and tax expenditures to any corporation whose chief executive officer earns more than 100 times the average wage for a worker in CT, was referred to Commerce Jan. 20.

ConnecticutHB 5802 (referred to Finance, Revenue & Bonding Jan. 18) & HB 5250 (referred to Finance, Revenue & Bonding Jan. 6) would both repeal mandatory combined reporting.  

ConnecticutHB 5245, which would eliminate the sales tax on business to business consulting services, was referred to Finance, Revenue & Bonding Jan. 6.

ConnecticutHB 5347, which would impose a 5-year moratorium on new business taxes, was referred to Finance, Revenue & Bonding Jan. 10.

GeorgiaHB 61, which would expand sales tax nexus to require out of state sellers to remit sales tax on in-state purchases under certain circumstances, passed House Feb. 15.

HawaiiHB 146, which passed the Finance Comm. Feb. 9, would allow changes in the Federal Internal Revenue Code to automatically apply to State income tax law. 

HawaiiHB 345, to clarify that an entity can do business in the state and owe taxes without having a presence, had a hearing Feb. 2; 2 Committee votes have been deferred.

IllinoisCiting the state’s failure to enact a full budget the last 2 fiscal years, IL credit rating was downgraded Feb. 1 to BBB, 2 notches above non-investment grade status.

Illinois.  Carried interest legislation SB 1719 & HB 3393 were both intro’d and referred to Comm. Feb. 9 & 10, respectively. 

IllinoisHB 2458, which would amend the Stock, Commodity, or Options Transaction Tax Exemption Act and provide that a city of 1,000,000 or more may, by ordinance, levy a tax on stock, Commodity or options transactions, was intro’d Feb. 7.

IllinoisHB 3076, to require financial institutions to remit $0.01 to the Banking Div. for each electronic fund transfer, for deposit into the IL DREAM (Development, Relief, & Education for Alien Minors) Fund, was intro’d Feb. 9.

IllinoisHB 3419 / SB 1798, to 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, was referred to Rules Feb. 10.

IllinoisSB 1970, to create a Financial Transaction Tax, was referred to Assignments Feb. 10.

MarylandSB 205, to provide a subtraction modification under the corporate income tax for specified dividends included in federal taxable income because of a specified repatriation holiday enacted by federal law, had a Budget & Tax hearing Feb. 8.

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, has a Budget & Tax hearing Feb. 22.

MassachusettsSD 188, a draft excessive executive compensation bill, has yet to be formally intro’d. 

MinnesotaHF 444, which would change qualifications and procedures surrounding the MNvest tax incentives program, was amended and reported out of Comm. Feb. 9. 

Minnesota.  The Gov. has proposed a ‘loophole closer’ to remove the advantage of transferring loans and interest income to an affiliated partnership or LLC that is not treated as a financial institution.

MinnesotaHF 893 / SF 726, 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 was referred to Taxes Feb. 6.

MissouriSB 285 would phase down the corporate income tax rate to 4% from 6¼%; the process requires net revenue targets to be met for any rate reduction. The bill was heard in Senate Ways & Means Jan. 31; a Committee substitute was reported out Feb. 7.

NebraskaLB 312 & LB 563, to expand the sales tax to include a host of new services, including the gross income received for investment advice, are scheduled to be heard in Revenue Feb. 22.

New MexicoSB 1, which would require combined reporting for a unitary group, was reported from Committee as amended Feb. 14. 

New MexicoSB 199, which would delay a planned decrease in the corporate income tax and the adoption of single sales factor, was sent to Corporations & Transportation Jan. 25.

New York State.  The Executive Budget, A. 3009 / S. 2009, was referred to Ways & Means Jan. 23. 

New York State.  On Feb. 14, the Chair of the IDC held a press conference supporting  S. 1991 / A. 3554, which would tax the carried interest income of hedge fund and private equity investors income at a rate of 19%; if passed, the act would not take effect until similar laws are enacted in CT, NJ & MA.

New York StateA. 5316 would reinstate a bank tax based on the highest of 4 bases: a tax on allocated entire net income, a tax on allocated alternative entire net income, a tax on allocated taxable assets, or a fixed dollar minimum tax.  This bill was intro’d and referred to Ways & Means Feb. 8. 

New York StateA. 190, A. 2104 / S. 1523, A. 2529 / S. 1586, S. 1523 / A. 2104, S. 1528 all intro’d in late Jan., would relate to rebates from stock transfer tax paid.

Oklahoma.  Gov. Fallin has proposed a sales tax on services, including securities services and investment advice.  Revenue estimate for BD’s = $110,552, IA’s = $8,430,232.  No bill has been intro’d.

OregonSB 28, to require all members of an affiliated group of corporations to be treated as a single taxpayer and amend for computation of OR apportionment % if any member is taxable in the state, had a hearing Feb. 13.

Pennsylvania.  Gov. Wolf delivered his Budget Address on Feb. 7: Budget in Brief, Budget Presentation & Budget Hearing Schedule.

TennesseeSB 132 / HB 41 would reduce the $400 professional fee tax by $80 per year beginning in FY 2018 and phase the tax out entirely by FY 2022.  Multiple sponsors were added to both bills in Feb.

VirginiaHB 1499, which would change VA’s corporate income tax apportionment formula by adopting single sales factor apportionment, was left in Finance Feb. 7. 

VirginiaHB 1500, VA’s budget proposal, was reported out of Finance with amendments Feb. 14.  

VirginiaHB 1501, which would bring VA into compliance with the Streamlined Sales and Use Tax Agreement, was left in Finance Feb. 7. 

VirginiaHB 1503, which would require VA to take the necessary steps to join the Multistate Tax Commission, was left in Finance Feb. 7. 

VirginiaHB 1714, to phase down the corporate income tax rate to 5% by Jan. 1, 2018, was left in Finance Feb. 7. 


Labor and Employment

ArizonaHB 2312, to prohibit an employer from inquiring about the criminal conviction record of an applicant until after the applicant has received a conditional offer of employment, restrict the look back time frame to the past 5 yrs., and require the criminal conviction to have a direct relationship to the employment position, was read for a 2nd time in the House Jan. 18.

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 reported out of 2 Committees Feb. 2; it awaits consideration by 2 additional Committees. 

IllinoisSB 202, a placeholder bill that would amend the social media/Right to Privacy in the Workplace law (in which there is a compliance provision), was referred to Assignments Jan. 24.

IowaHF 192, ban-the-box legislation which contains alternative exemption language, was intro’d Feb. 1.

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

MassachusettsSD 1320, a credit background check bill which contains exemption language where required by federal or state law or regulation or the rules of a SRO, has yet to be intro’d.

MichiganHB 4112, a minority credit history bill that includes a requirement to be licensed under federal securities, was referred to Financial Services Jan. 26.

MississippiSB 2302, a hybrid Ban the Box and expungement bill, died in Comm. Feb. 9.

MississippiHB 768,  a Ban-the-Box bill with an exemption where the applicant would be disqualified from serving in the position under Federal or State law or regulation, died in Comm. Jan. 31.

MissouriSB 316 is a social media bill that contains our SRO compliance language.  A hearing was held in the Senate General Laws Comm. Feb. 8.

NebraskaLB 420, a ban-the-box bill which contains alternative exemption language, has a hearing Mar. 13.

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

New MexicoSB 78, reported out of Comm. Feb. 8, 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. 

New York State.  Several ban-the-box bills are in their first committee: A. 2770, A. 3050, S. 2425-A, S. 3801.  Notably, A. 3050 contains SRO compliance exemption language.

New York State.   S. 5485, social media legislation which contains SRO compliance exemption language, was referred to Labor Feb. 9. 

New York StateA. 2645, A. 2956, A. 3288 / S. 3610 credit background check legislation, was intro’d & referred to Comm. in late January.


State & Local Business Relations

ArizonaHB 2446, intro’d Feb 6, would prohibit state contracts with companies that contract with the federal gov. to build a U.S.-Mexico border wall. 

ArizonaHB 2019, to require voter approval before negotiable bonds could be issued for Community college projects and require fees to be paid from the authorized amount or current operating monies, was retained on calendar Feb. 9. 

CaliforniaAB 20, referred to Comm. Jan. 19, would prohibit CalPERS or CalSTRS from investing in or renewing investments in a company constructing or funding the construction of the Dakota Access Pipeline.  The CalPERS Investment Comm. discussed the legislation, but delayed a vote on opposing the bill until after the bill sponsor finished redrafting Feb. 13.  Staff had recommended an oppose position.

ConnecticutSB 212, sent to Joint Gov’t Administration & Elections Jan 18, would eliminate the $30K aggregate limit on political contributions for individuals for any single election or primary to comply with the 2014 McCutcheon decision.

ConnecticutSB 582, sent to Joint Gov’t Administration & Elections Jan. 24, would prohibit independent expenditures by entities with 5% foreign ownership or foreign political activity participation in the US, and limit covered transfers to $70K.  

GeorgiaSB 22, which would impose restrictions on contributing to candidates from any business entity whose contracts with state agencies annually total more than $50K, was referred to Ethics Jan. 23.

HawaiiHB 366, to require a majority shareholder vote before a corporation makes election contributions and independent expenditures and require 48-hr. notification to shareholders and public of such spending, was sent to Judiciary Jan. 23.  HB 447 is similar in content.

HawaiiHB 1588, to prohibit the issuance of GO bonds to finance the repair and maintenance of a capital asset with a depreciable life of less than 10 yrs., and authorized only cash appropriations or the issuance of non-GO bonds for those with a depreciable life of less than 10 yrs., was referred to Finance Jan. 30.

HawaiiSB 813, intro’d and referred to Judiciary Jan. 23, would prohibit campaign contributions, solicitations and fundraisers during legislative session, the 5 days following adjournment, and during special sessions. 

IllinoisHB 823, to require a Div. of Banking program to encourage financial institutions to meet the credit needs of underserved communities, was sent to Business Incentives Feb. 8.  It would also prohibit the State from contracting with a financial institution not participating in the program.

IllinoisHB 775, to require pension funds to develop a climate change risk minimization policy, was sent to Personnel & Pensions Feb. 8.

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, was referred to Rules Feb. 9.

IllinoisSB 2091, to prohibit a State agency from contracting with a business that contracts with the federal government to build U.S.- Mexico border wall, was sent to Assignments Feb. 10.

IowaHJR 8, a resolution to prohibit or regulate the expenditure of funds for political speech by any corporation, LLC, or other corporate entity, was referred to Judiciary Feb. 9.

IowaSF 203, to establish a voter-owned IA clean elections Act and fund and provide for funding, including an income tax checkoff and an income tax exemption for fund contributions, was sent to Subcomm. Feb. 9. 

KansasHB 2011, reported out of Comm. Feb. 9, would substantially increase campaign contribution limits, with most existing limits being doubled.

KansasSB 105, referred to Ethics, Elections & Local Gov. Feb. 1, would prohibit state or muni contractors from contributing to state political campaigns or Committees.  

MarylandHB 118 / SB 632, anti-pay-to-play legislation to 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, had a Ways & Means hearing Feb. 7

MarylandHB 234, to prohibit a person from directly or indirectly making a specified contribution during the General Assembly regular session, had a hearing in Ways & Means Feb. 7

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

MarylandHB 376, which would prohibit business entities from directly making contributions to campaign finance entities, had a Ways & Means hearing Feb. 16.

MarylandHB 898, which would prohibit a person from making a coordinated expenditure more than specified limits or donating to a person for the purpose of furthering a coordinated expenditure in excess of specified limits, has a Ways & Means hearing Mar. 2.

MarylandHB 1363, which would establish a system of public financing of campaigns for General Assembly candidates, has a Ways & Means hearing Mar. 9.

MissouriHB 60, to ban expenditures made by lobbyists to state public officials with certain exceptions (including customary gifts, flowers & plants, returned items, and speaking fees), passed the House Jan. 12. 

MissouriHB 545, amended and referred to Comm., would require political subdivisions issuing debt to do so through a competitive process unless the political subdivision employs the services of a municipal advisor at which point a negotiated or competitive process is acceptable.  

New MexicoHB 33, to amend state deferred compensation plans to allow for investment in mutual funds, including stock, bond or capital preservation funds, was reported out of its 1st House Comm. Feb. 2; another hearing is scheduled for Feb. 16. 

New York StateA. 3525, which relates to pay-to-play disclosure reform, was referred to Gov Op. Jan. 27.

New York StateA. 3010, which would make changes to laws regulating political contributions by corporations, was referred to Ways & Means Jan. 23.

New York StateA. 3137, which would prohibit the use of placement agents or intermediaries by investment managers doing business with the Common retirement fund, was referred to Governmental Employees Jan. 26.

New York StateA. 3239 / S. 2010, an anti-Israel boycott bill, was referred to Gov Op. Jan. 27.

Rhode IslandSB 49, which would restrict some political contributions by state vendors and prohibit state vendors from making political contributions to candidates for the office responsible for awarding those state vendor contracts, was intro’d Jan. 18.   

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 Feb. 14.

South CarolinaS. 394 / H. 3726, which would bar retirement system investments in a fund managed by an external investment manager if a placement agent receives any compensation from the investment, was intro’d and referred to Comm. Feb. 9.

South CarolinaH. 3571, which would require independent expenditure committees to provide disclosures regarding contributions and disclaimers regarding the committee’s communications, was intro’d & referred to Judiciary Jan. 25.

South DakotaHB 1069, which would repeal and revise certain provisions related to campaign finance, was signed by the Gov. Feb. 2.

TennesseeHB 1123 / SB 1376 would prohibit candidates for public office from soliciting gifts and require disclosure of any non-lobbyist gifts.  HB 1123 was sent to Local Gov’t Subcomm. Feb. 15; SB 1376 was referred to State & Local Gov’t Feb. 13.

TexasHB 1143, filed Jan. 19, would prohibit state investment in companies with business operations in Iran or with designated terrorist organizations. 

TexasHB 1295, which is a clean-up bill to last year’s enacted disclosure bill of the same name, has been intro’d.  Notably, the disclosure does not apply to publicly traded business entities, including a wholly owned subsidiary of the business entity.

WyomingHB 279, to prohibit public contracts and limit investment with companies that boycott Israel, failed to pass the House Feb. 2.

WyomingHJR 4, a resolution to reject boycotts, divestment and sanctions against Israel and other WTO trading partners, failed to pass the House Feb. 3.


Cybersecurity / Data & Privacy

CaliforniaAB 364, intro’d Feb. 9, 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. 

ColoradoHB 1069, to create a Subcomm. within the Joint Technology Comm. to address information security that would consider strategies for protecting data and other information resources of the state against unauthorized access, disclosure, use, modification or destruction, failed in Comm. Feb. 9.

IllinoisHJR 27, which would create the IL Cybersecurity Task Force to study the status, progress, and future of cybersecurity, was referred to Rules Feb. 15.

KansasHB 2331, to establish a KS information security office, create a chief information security officer for the state and establish the cybersecurity state grant fund coordinating council, had a hearing in Gov’t, Technology & Security Feb. 15.

KentuckyHB 59, which would amend the definition of personal information involved in a data security breach of information held by government agencies, was referred to Judiciary Jan. 7.

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

MarylandHB 974 / SB 525, which would alter the circumstances under which a specified business that owns, licenses, or maintains computerized data that includes specified personal information must conduct a specified investigation and notify specified persons of a specified breach, has a hearing in Economic Matters Mar. 1.

MarylandHB 378 / SB 318, to alter the eligibility criteria under the cybersecurity investment incentive tax credit to provide the credit, has a hearing in Budget & Taxation Feb. 22.

New York State.  Gov. Cuomo released the final DFS cybersecurity rule Feb. 16; it takes effect Mar. 1.

New York StateS. 924, which would require the formation of a cyber security advisory board and the implementation of a cyber security initiative, was committed to Finance Feb. 14.

New York StateS. 926, which would require a comprehensive review of all cyber security services to be performed every 5 years, was committed to Finance Feb. 14.

New York StateS. 953, which would provide for the crime of cyber terrorism in the 1st and 2nd degree, was placed on the floor calendar Feb. 14.

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, was placed on the floor calendar Feb. 14.

OklahomaSB 614, to amend the Security Breach Notification Act, was referred to Judiciary Feb. 7.



ArizonaSB 1069, which had a hearing Feb. 16, would allow a person who is convicted of a class 4, 5 or 6 felony to petition the court to vacate the judgment of conviction and expunge the record related to that conviction. 

Maryland.  Various criminal expungement bills have been recently intro’d and have a hearing in Judiciary Feb. 28:  HB 836, HB 840 & HB 1237

Mississippi.  Numerous criminal expungement bills died in Comm. Jan. 31, including: HB 617, HB 618, HB 632, HB 644, HB 738, HB 758, HB 768, HB 1146 & SB 2122, SB 2303.

New York State.  Various criminal expungement legislation was intro’d & referred to various Committees late Jan., including A. 3193 / S. 653, A. 3209.

Rhode IslandHB 5205, which would make persons with certain multiple misdemeanors eligible for expungement 10 years from last sentence completion (with certain restrictions), was heard in House Judiciary Jan. 31 and held for further study.

Rhode IslandHB 5157, which would redefine first time offender and permit individuals with up to 2 misdemeanor convictions to be eligible for expungement, was heard in Judiciary Jan. 31 and held for further study.

South CarolinaS. 149, which would allow nonviolent offenses to be expunged, was referred to Comm. Jan. 10. 

TennesseeHB 1280 / SB 405 would allow a person to have a current conviction expunged with prior convictions for Class B & C misdemeanors.  The House bill awaits Committee referral; the Senate bill was sent to Judiciary.

UtahSB 12, to prevent the dissemination of pardon and expungement information, specify that certain offenses will not count towards expungement eligibility, and increase the number of allowable convictions, passed the Senate then was sent from the House floor back to Rules for fiscal consideration.


State Government 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

Social Media & Digital Marketing Seminar.  SIFMA’s Social Media Seminar on Feb. 23 is the leading forum for Business, Marketing and Compliance professionals in Wealth Management to explore how to maximize the use of social media platforms while adhering to an ever-changing compliance framework.

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.


State Legislatures in Session

*Indicates Special Session




























New Hampshire

New Jersey

New Mexico

New York State

North Carolina

North Dakota





Rhode Island

South Carolina

South Dakota






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.

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