The digital information revolution has been crucial to our country's competitiveness in a global economy. Every segment of our economy has been affected. Professionals are needed both to lead and to develop new products as part of this information revolution. Two years ago Congress increased the cap on the number of visas for foreign high tech workers to fill positions in what the IT industry claims is a severe shortage of qualified American workers. The industry is asking for another increase in the cap. Speakers addressed the need for competent high tech professionals and at the same time the need for the federal and state governments to work together to prepare the workforce for the 21^st century.

Speakers: Jeff Lande, Vice President, Information Technology Association of America, Washington, DC; Ann Morse, Immigration Policy Project, National Conference of State Legislatures, Washington, DC

With mergers of banks and the walls between banks and other financial services coming down, how has the consumer fared? ATM surcharges, sharing of consumers' personal information, and fees for services are an issue both in Washington and in may state capitols. Some in Congress are looking to require banks to provide free basic banking service or lifeline accounts such as legislators have done in New York and New Jersey. Commissioner Curry and ABA representative Ken Clayton argued that financial services modernization has been good for consumers and they expect costs of services to decline overtime. Mr. Plunkett contended that consumers need to be concerned about the mergers of large banks that could drive up service costs. He also discussed the problem of financial information privacy.

Speakers: The Honorable Thomas Curry, Commissioner of Banks, Massachusetts
Kenneth Clayton, Chief Legislative Counsel, American Bankers Association, Washington, D.C.
Travis Plunkett, Consumer Federation of America, Washington, DC

Since 1967, states have not been able to collect sales and use taxes for purchases made through out-of-state vendors by means of phone and mail order. The U.S. Supreme Court has decided that a vendor must have sufficient nexus within a state for that vendor to be required to collect that state's sales and use taxes. Prior to the Internet boom, it was estimated in 1994 that states were losing about $4.5 billion in sales and use tax revenues due phone and mail order sales. The growth of electronic commerce will more than double that loss to state treasuries. According to the University of Tennessee by 2003, states will lose an additional $10.8 billion in sales tax revenue. In electronic commerce the issue of nexus is even more tenuous. The speakers held a lively debate. Mr. Mackey in favor of the states having the authority to collect sales and use taxes from remote sellers and Mr. May taking the opposite view point. Committee members took Mr. May to task for his position.

Speakers: Scott Mackey, Chief Economist, National Conference of State Legislatures, Denver

Richard May, Partner, Davidson & Company, Washington, DC

As has been customary for the last five years, the leadership of the National Association of Insurance Commissioners will address the members of the Committee on issues of mutual interest. This year the focus was on NAIC's proposal for national treatment of insurers and the threats to the future of state regulation of insurance coming from Congress and some within the industry. At the Spring AFI Meeting the Committee adopted a resolution requesting that NCSL Executive Committee establish a Special Task Force on Streamlining and Simplifying State Insurance Regulation. Commissioner Frank Fitzgerald spoke on behalf of the NAIC. He described the various projects that are underway by NAIC staff and pledged the NAIC's cooperation with the NCSL Task Force established by the NCSL Executive Committee prior to the Committee meeting.

Speaker: The Honorable Frank Firtzgerald, Insurance Commissioner, State of Michigan
Comments: Bryan Cox, American Council of Life Insurers; Patricia Holden, American Insurance Association; Neil Alldredge, National Association of Mutual Insurance Companies; Brad Kading, Resinsurance Association of America; Debra Wozniak, State Farm Insurance Companies

In preparation for the Committee's consideration of a new Telecommunications policy statement, this session addressed the mergers of major industry providers and the convergence of telephone, Internet, data transmission, and cable television services. This convergence and constantly changing technology challenges the way states have traditionally regulated and taxed phone and cable services. The speakers also addressed the need to re-define telecommunications to include other services such as the Internet. The speakers gave their opinion as to whether there is sufficient deregulation of the industry to allow for real competition and what barriers still exist to full competition. The speakers debated what they and their industries saw as the proper role of government regulation in ensuring deregulation and competition. The presentations and the questions and comments from legislators, provided the Committee with the necessary information to formulate NCSL's new Telecommunications Service policy statement.

Speakers: Link Hoewing, Assistant Vice President, Government and Regulatory Affairs, Verizon, Inc., Washington, DC; David Porter, Vice President, Government Affairs, WorldCom, Washington, DC; Maria Arias, National Coordinator-Cable Unbundling Issues, AT&T, Colorado; Debra Berlyn, Principal, Competition Policy Institute, Washington, DC; Rick Cimerman, Director-Telecommunications Policy, National Cable Television Association, Washington, DC; Susan Ashdown, President, American ISP Association, Washington, DC.

After the sessions the Committee passed two policies and one action resolution. First the Committee updated its sunsetting policy on telecommunications to reflect the new challenges of a changing market, titling it "Telecommunications in the 21^st Century". The Committee also adopted a new policy, "Nexus in the New Economy", recognizing the state sales tax system is complicated, but asserting that states should be given mandatory collection authority for remote sales once the states have simplified and streamlined their disparate sales and use tax structures. Finally, the Committee adopted a resolution calling on Congress to refrain from taking any steps to federalize regulation of the business of insurance. All three were unanimously approved by at the Annual NCSL Business Meeting.

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