NCSL's Lobbying Activities 1999-2000 Updated December 27, 2000 This report summarizes NCSL's lobbying activities during the 106th Congress, 1999-2000. NCSL played an instrumental advocacy role on numerous state-federal issues. Once again, NCSL's primary lobbying themes emphasized preservation of state authority and promotion of program flexibility. NCSL continued, also, to oppose unfunded federal mandates and to preserve state fiscal authority. NCSL had several important successes. For example, during the 106th Congress, NCSL led the way in preserving complete state authority over tobacco settlement funds. Enactment of TEA-21 and AIR-21 ended use of trust funds to balance the federal budget and provided enhanced funding for states for highways, mass transit, airports and highway safety. NCSL reversed a 1996 statute that preempted state driver's license issuance processes. In 2000, the organization then staved off attempts to preempt state privacy protections regarding use of social security numbers, driver's licenses and their derivatives. An intensive campaign preserved state authority to deal with electronic commerce, remote sales and related taxation issues on state, not federal, terms. The 106th Congress featured many attempts to preempt state authority. NCSL blocked legislation that would have compromised state authority regarding health insurance regulation, land use and zoning, product liability, class action suits and electric industry restructuring. The organization defeated unfunded mandates regarding child support and Medicaid provider reimbursements. Through NCSL's persistent advocacy efforts, Congress upheld state authority regarding wireless telephone calls and validity of electronic signatures, the former serving as a possible future model regarding telecommunications and technology issues. Some long-term campaigns came to a successful end. Congress enacted adjustments to each state's private activity bond volume cap and low income housing tax credit. It also passed several regulatory and grant reform bills reemphasizing state impact review and streamlining federal grant applications. NCSL also regained state authority to transfer up to 10% of Temporary Assistance for Needy Families (TANF) funds into the Social Services Block Grant (SSBG). A few efforts came up short. In the waning days of the 106th Congress, negotiators dropped an NCSL-sought provision to provide states with tax credit bonds for developing high-speed rail. A bill to reverse inclusion of state legislative candidates in new federal campaign reporting requirements aimed at political action committees did not pass. Legislation requiring preemption impact statements and bolstering federalism failed to get floor consideration. And, states will have their highway funds automatically reduced in the future for not having a .08 blood alcohol content standard. As usual, NCSL's successes are directly linked to communications state legislators have with their congressional delegations and administration contacts. Over the past decade, NCSL's prominence and presence on numerous issues has risen significantly thanks to these communications and state support for NCSL. Part A of this report summarizes the outcome of federal legislation and regulations enacted or promulgated during 2000. Part B summarizes the outcome of federal legislation enacted or promulgated during 1999, the first session of the 106th Congress. Summaries in both parts briefly describe the legislation or regulation and NCSL's lobbying position and outcome. Part A - Issues Resolved in 2000 (106th Congress, Second Session) Aviation Bankruptcy (Pensions) Beginner Farmer Programs Biennial Budgeting FY 2001 Budget Resolution Campaign Finance Reform Child Support Class Action Jurisdiction Clean Air Regulations Education Block Grants/"Straight A's" Electric Industry Restructuring Electronic Commerce and Internet Taxation Electronic Signatures Environmental Appropriations, FY 2001 Environmental Compliance of Federal Facilities Fatherhood Programs Federalism - preemption Federalism - regulatory Food Stamps Gas Tax High Speed Rail Intergovernmental Transfers of Medicaid Funds Juvenile Justice Land to Trust Regulations Low Income Home Energy Assistance Program (LIHEAP) Managed Care Reform Mandatory Social Security Coverage Medicaid Provider Reimbursements Medical Records Privacy Pension Portability Privacy Product Liability Property Rights School Construction Sentencing Mandates Social Security Earnings Test Social Services Block Grant for FY 2001 Special Education State Children's Health Insurance Program (SCHIP) Regulations Superfund Tax-Exempt Financing Tobacco -- Gray Market Transportation Appropriations for FY 2001 Wireless Telephone Calls Part B - Issues Resolved in 1999 (106th Congress, First Session) FY 2000 Appropriations Balanced Budget Act Revisions (Medicare, Medicaid, Children's Health) FY 2000 Budget Resolution Banking/Financial Services Driver's License Issuance Driver's License Records Ed-Flex Federalism - executive order Federalism - grant management Federalism - unfunded mandates Foster Care Mass Transit Social Services Block Grant (Title XX) State Disbursement Unit (SDU) Penalty Relief TANF (Temporary Assistance to Needy Families) Funding TANF (Temporary Asisstance to Needy Families) Regulations TEA-21 Tobacco Recoupment Water Revolving Funds Welfare to Work Eligibility Y2K Liability   Part A -Issues Resolved by the 106TH Congress, Second Session ISSUE BILLS/REGULATIONS STATUS AVIATION Contact: Eileen Doherty H.R. 1000. Reauthorizes the state airport improvement grant program (AIP), requiring annual appropriation of aviation fund receipts and interest, boosting annual AIP funding, requiring the use of trust funds for aviation purposes only and expanding small community airport support. H.R. 1000 also frees up distribution of $1.9 billion of held FY 2000 AIP funds. Signed into law. NCSL fully supported the House version of H.R. 1000 and the conference agreement. BANKRUPTCY (PENSIONS) Contact: Gerri Madrid H.R. 2415. Protects governmental plan assets by expanding the types of retirement savings protected from creditors' claims in bankruptcy proceedings. Regarding state homestead exemptions, caps value at $100,000 when consumer has lived in home under 2 years. President vetoed. NCSL backed pension, homestead exemption provisions.   BEGINNER FARMER PROGRAMS Contact: David Naftzger H.R. 1810, S. 1038. These bills exempt state beginner farmer loan bonds from the federal volume cap for industrial revenue bonds. NCSL supported these companion bills. Neither bill heard or voted on. BIENNIAL BUDGETING Contact: Gerri Madrid H.R. 853. This bill makes numerous changes to the Congressional budgeting process, the most notable being the shift from annual appropriations to biennial appropriations. Defeated on the House floor. NCSL took no position but raised concerns about the legislation's treatment of trust funds that coopted TEA-21 and AIR-21 agreements. FY 2001 BUDGET RESOLUTION Contact: Gerri Madrid H. Con. Res. 290 outlines spending and tax parameters for FY 2001, cuts non-defense domestic discretionary assistance by 6 percent, proposes cuts in federal taxes totaling $150 billion, sets aside up to $40 billion for senior citizens' prescription drug benefits and Medicare changes, and directs surplus funds to debt reduction. Passed both the House and Senate. Did not require the president's signature. NCSL opposed the inclusion of a 4.3-cent gas tax cut, which was dropped. CAMPAIGN FINANCE REFORM Contact: Susan Parnas Frederick H.R. 4762. Requires all of Section 527 political committees to register with IRS and to disclose contribution sources. H.R. 5625 and S. 3193 exempts state and local candidates, campaign committees and state political parties from requirements of H.R. 4762. H.R. 4762 signed into law. NCSL supported H.R. 5265 and S. 3193 to exempt state and local candidates and their political committees from all new notification, disclosure and annual reporting provisions in H.R. 4762. Neither bill moved. CHILD SUPPORT Contact: Sheri Steisel H.R. 4768. Would allow, not require, states to pass child support payments to families formerly receiving welfare by 2005. It allows states to do the same for families currently receiving welfare benefits. Passed House only. NCSL succeeded in getting mandate changed to an option. States funding their child support systems through retained collections would take a sizable financial hit with a mandate. CLASS ACTION JURISDICTION Contact: Susan Parnas Frederick H.R. 1875, S. 353. Each would transfer most class action lawsuits from state courts to federal court. No final federal action. H.R. 1875 narrowly passed the House in September and drew a presidential veto threat. Passed Senate committee but was never considered on Senate floor. NCSL opposed the legislation on preemption and federalism grounds. CLEAN AIR REGULATIONS Contact: Molly Stauffer EPA has proposed Tier 2 automobile emission standards as part of the Clean Air Act's directive to reduce mobile source emissions. NCSL commented on the imposition of more stringent tailpipe emission standards, application of similar standards for cars and light duty trucks and the sulfur content in gasoline. CROP INSURANCE Contact: David Naftzger H.R. 2559. Increases the federal share of crop insurance premiums. The bill no longer contains provisions that would preempt state anti-rebating statutes. Signed into law. NCSL was successful in knocking out preemptive language regarding state anti-rebating statutes. EDUCATION BLOCK GRANTS/"STRAIGHT A'S" Contact: David Shreve H.R. 2300, S. 1266. H.R. 2300 passed House. Allows up to ten states to combine federal education funds into a block grant. States would have to commit to and meet certain performance goals in target populations. No final action in the 106th Congress. NCSL testified before House committee and offered qualified support for legislation. ELECTRIC INDUSTRY RESTRUCTURING Contact: Eileen Doherty H.R. 2944, S. 2098 and S. 2071. These bills take a variety of approaches regarding state and federal responsibilities. No final action in the 106th Congress. Senate Energy Committee abandoned S. 2098 in favor of S. 2071, addressing reliability only. S. 2071 passed the Senate. H.R. 2944 reported from a House subcommittee hearing was postponed indefinitely. NCSL has a 10-principle policy that supports state restructuring of the electric industry without a federal mandate, grandfathering of state actions to establish retail competition; state-determined time for competition and consumer protections from anti-competitive behavior and unfair trade practices. ELECTRONIC COMMERCE AND INTERNET TAXATION Contact: Neal Osten H.R. 3709, H.R. 4267, H.R. 4460, H.R. 4462, and S. 2775. H.R. 3709 extends for five years the moratorium on state and local government taxation of the Internet and related services. Repeals existing grandfather protection of 11 states that had Internet access taxes prior to the original moratorium. H.R. 4267, H.R. 4460 and H.R. 4462 include various recommendations made by the National Advisory Commission on Electronic Commerce. S. 2775 extends Internet tax moratorium by four years, mandates state sales and use tax collection simplification and authorized collection of these taxes on remote sales instate accomplishing simplification and requires states to establish a single tax rate. No final action in the 106th Congress. NCSL opposed H.R. 3709, which passed the House in May. Instead, NCSL supported voluntary state simplification of state sales and use tax collection systems as recommended by NCSL's advisory task force on electronic commerce. NCSL opposed H.R. 4267, H.R. 4460 and H.R. 4462 and had concerns with mandates in S. 2775. ELECTRONIC SIGNATURES Contact: Neal Osten S. 761. Ensures validity of electronic signatures on contracts entered into under state law until states enact UETA (Uniform Electronic Transactions Act). Contains federal disclosure and notification requirements and consumer protections. Authorizes electronic records transmission and preserves state regulation over record keeping. Signed into law. NCSL supported conference agreement that was a vast improvement over original House bill and initial conference offers. ENVIRONMENTAL APPROPRIATIONS, FY 2001 Contact: Molly Stauffer H.R. 4635. Funds state drinking water and clean water revolving funds at 3% over previous year and at FY 2000 levels respectively. Calls for EPA to reassess costs borne by states to implement new TMDL (Total Maximum Daily Loads) regulations. Signed into law. NCSL supported revolving funds appropriations and TMDL cost assessment. ENVIRONMENTAL COMPLIANCE OF FEDERAL FACILITIES Contact: Molly Stauffer S. 2549, H.R. 4205, and H.R. 5408. PL 106-79, the defense appropriation bill for FY 2000, required specific authorization for the payment of state environmental fines. S. 2549, the authorization bill for 2001, also contained this provision. NCSL opposed both the original language and the compromise offer. The provision was deleted in conference; signed into law as H.R. 4205. FATHERHOOD PROGRAMS Contact: Sheri Steisel H.R. 3073, H.R. 4678, and S. 1364. House bills create a $140 million competitive grant program with a 20 percent state match. States would not have to pay the federal share of child support collections if they choose to pass through child support to families. S. 1364 creates a state block grant with a 25 percent state match. No final action in the 106th Congress. H.R. 3073 passed the House on November 10. NCSL was successful in obtaining Maintenance of Effort credit for state matching funds and eliminating the federal share of child support payments collected from program participants. S. 1364 does not contain Brown amendment language. Senate hearing held in July. FEDERALISM - preemption Contact: Susan Parnas Frederick S. 1214, H.R. 2245. Both bills require congressional and regulatory federalism assessments, increased regulatory consultation with elected state officials on proposed rules and a rule of construction favorable to state authority for courts to follow. NCSL supported both bills. Senate bill passed out of committee 12-2 in August 1999. House bill passed out of subcommittee in July, 1999. Both bills blocked due to objections from business interests. FEDERALISM - regulatory Contact: Susan Parnas Frederick S. 59, S. 408, S. 746, S. 1198, H.R. 409, H.R. 1074, and H.R. 4692. Combined, these bills streamline the federal grant application process, codify regulatory consultation with elected state officials on rules and require annual reporting on the impact of federal rules on state and local governments.   S. 408 , S. 1198, and H 4692 signed into law. NCSL fully supported this package of legislation. S. 408 simplifies federal grant application processes. S 1193 initiates a 3-year pilot project of voluntary Congressional review of proposed rules. H.R. 4692 requires a review of state and local government fiscal impact by agencies on all major rules. FOOD STAMPS Contact: Sheri Steisel H.R. 4461. Allows states to use state-determined TANF vehicle asset level as criteria for qualifying for food stamp benefits. H.R. 4461 also increases food stamp allotments for families and children with high shelter costs. Signed into law. NCSL supported. GAS TAX Contact: Eileen Doherty S. 2285 and several others that would temporarily repeal or suspend 4.3 cents or all 18.4 cents of the federal gas tax. Rejected twice on the Senate floor by wide bipartisan margins. Rejected in budget resolution. NCSL opposed this legislation. HIGH SPEED RAIL Contact: Eileen Doherty H.R. 2614 provides $10 billion in tax credit bonds to enchance development of Amtrak's high speed rail corridors. Requires a 20% state match. NCSL supported. Dropped in final FY 2001 appropriations/tax negotiations.. INTERGOVERN- MENTAL TRANSFERS OF MEDICAID FUNDS Contact: Joy Johnson Wilson Proposed regulations from the U.S. Department of Health and Human Services that would limit state use of intergovernmental transfers for purposes of qualifying for federal Medicaid match funds filed 10/10/00. Proposed regulations have a 5-year implementation period. HHS issued a proposed regulation curtailing use of these transfers on October 10. H.R. 4577, provisions relating to Medicaid, requires HHS to issue a final rule, no later than 12/31/00. JUVENILE JUSTICE Contact: Susan Parnas Frederick S. 254, H.R. 1501. Both bills make various reforms to the procedures that apply to the prosecution and detention of juveniles, further federalize juvenile crime and expand funding for juvenile justice grants and prevention programs. No final action in the 106th Congress. The underlying House and Senate bills, before being amended on the floor, focused primarily on intensifying state efforts to combat juvenile crime. Floor amendments in both houses revived bad habits regarding federalization of juvenile crime. The two Bills are now in conference. Gun issues dominate public debate.   LAND TO TRUST REGULATIONS Contact: Susan Parnas Frederick Department of Interior proposed revisions to regulations governing the federal government's authority to accept title to land to be held for the benefit of Indian tribes and individual Indians. NCSL objected to the regulations for failing to comply with federalism assessments in executive orders on federalism and with UMRA-required fiscal impact statements for proposed regulations. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) Contact: Sheri Steisel H.R. 4425 makes FY 2000 supplemental appropriations. It includes state disaster assistance funding and a $600 million replenishment of LIHEAP emergency funds. Signed into law. NCSL supported LIHEAP replenishment. MANAGED CARE REFORM Contact: Joy Johnson Wilson S. 1344, H.R. 2990, H.R. 448, H.R. 1496 and a variety of other Senate and House bills. Conferees met for several months, failing to reach consensus. Liability and scope issues remain completely unresolved. NCSL concentrated its efforts on preserving state health insurance regulation, ensuring those association health plans and multiple employer welfare associations are subject to state insurance standards and objecting to preemption. MANDATORY SOCIAL SECURITY COVERAGE Contact: Gerri Madrid Numerous bills, a few of which call for universal state and local government Employee contributions to Social Security. NCSL opposed universal contributions. NCSL has kept this issue out of the President's budget, the budget resolution and most prominent Social Security reform proposals. MEDICAID PROVIDER REIMBURSEMENTS Contact: Joy Johnson Wilson H.R. 4451. A motion to instruct conferees to reinstate the Boren amendment was offered on October 31, 2000. The motion would have mandated states to provide adequate reimbursement to health care providers that was the subject of voluminous litigation in previous years. The old Boren Amendment was repealed in 1996. NCSL opposed. Motion was withdrawn due to NCSL's and governors' opposition. MEDICAL RECORDS PRIVACY Contact: Joy Johnson Wilson Various bills establish federal standards for medical record confidentiality. Major debate is over legislation that would preempt all state medical records confidentiality laws or establish a federal floor for standards while protecting existing state confidentiality laws and future opportunities to go beyond federal standards. Federal medical records privacy regulations published for comment in November 1999. NCSL supported legislation that would grandfather existing state confidentiality laws, narrowly define the scope of any preemption, preserve to states issues not addressed federally and permit additional future state privacy protections. HHS issued final medical records privacy regulations on 12-20-2000. PENSION PORTABILITY Contact: Gerri Madrid S. 741, H.R. 1102, H.R. 2614. Stand-alone bills that allow greater flexibility in Section 457 distributions, allow benefit rollover when employees switch jobs, remove compensation-based limits regarding all retirement plans, provide equitable tax treatment of Section 457 plans, increase and index catch-up contributions, and make other changes. NCSL fully supported the public pension provisions contained in H.R. 1102 and S. 741. Provisions dropped in final FY 2001 appropriations/tax negotiations. PRIVACY Contact: Gerri Madrid, Sheri Steisel H.R. 4690 and H.R. 4875 would set federal standards for protecting privacy and regulating use of personal identifiers such as social security numbers. Preempts state protections that are generally greater than those proposed. Impose unfunded mandates on states. No final federal actions in the 106th Congress. H.R. 4875 passed out of House committee, but stalled. H.R. 4690 in conference. NCSL opposed on preemption grounds, but supported GAO study of governmental use of personal identifiers (which will be undertaken). PRODUCT LIABILITY Contact: Susan Parnas Frederick H.R. 2366. Caps punitive damages, limits joint liability for non-economic harm and establishes uniform product liability rules for small businesses. Preempts all inconsistent state laws. No final federal action. Reported by the House Judiciary Committee. NCSL opposed on preemption grounds. PROPERTY RIGHTS Contact: Susan Parnas Frederick H.R. 2372, H.R. 2669, S. 1028. H.R. 2372 and S. 1028 substantially federalize land use law, allowing suits to be filed in federal courts without developing an information record needed to determine regulatory takings. H.R. 2669 amends Coastal Zone Management Act to prohibit grantees from regulating activities on private property. NCSL opposed on preemption grounds. Legislation officially died in Senate Judiciary Committee in September 2000. SCHOOL CONSTRUCTION Contact: David Shreve S. 526, S. 1134, H.R. 1084, H.R. 1648, H.R. 1760, H.R. 7 and H.R. 4577. Each of these bills attempts to enhance availability of funding for state school construction. H.R. 1648 would establish a state revolving loan program, H.R.1084 would allow advance refunding for school construction bonds, S. 526 would add school construction to the definition of private activity bonds and various proposals would broaden arbitrage rebate exceptions for school construction. H.R. 4094 makes direct grants to state and local districts in accordance with state law. H.R. 7 provides federal tax credits for interest on $25 billion in school modernization bonds. H.R. 4577 signed into law. H.R. 4577 creates a $1.2 billion school repair grant program. NCSL supported a multi-faceted approach to school construction reflected in many of the individual bills listed. SENTENCING MANDATES Contact: Susan Parnas Frederick H.R. 894 sets federal life without parole mandatory penalties for certain crimes. Allows states to claim another state's federal law enforcement funds when a convicted felon convicted in one state commits the same crime in another state. Folded into H.R. 3244 and signed into law. NCSL opposed because it federalizes an area of traditional state jurisdiction and because it pits states against each other for federal funds based on sentencing and release practices. . SOCIAL SECURITY EARNINGS TEST Contact: Gerri Madrid H.R. 5 eliminates the earnings limit for Social Security recipients ages 65 to 69. These recipients currently lose $1 in benefits for every $3 earned in wages or self-employed income over an annual $17,000 threshold. Signed into law. NCSL supported. SOCIAL SERVICES BLOCK GRANT FOR FY 2001 Contact: Sheri Steisel S. 2553, H.R. 4577, S. 2585, H.R. 4481. S. 2553, the Senate Labor/HHS appropriations bill, cut the SSBG by 63 percent from $1.7 billion to $600 million. H.R. 4577, the House Labor/HHS appropriations bill, recommended level funding at $1.7 billion. S. 2585 and H.R. 4481 were introduced to authorize Title XX funding at $2.38 billion and restore the amount states can transfer from TANF to Title XX to 10 percent of the TANF grant. H.R. 4577 signed into law. Funding cut $53 million, but transferability restored. NCSL strongly supported the restoration of SSBG funding and transferability. SPECIAL EDUCATION Contact: David Shreve H.R. 4055, H.R. 4577, S. 2553. H.R. 4055 would authorize incremental increases of $2 billion annually for 10 years so that Congress could achieve 40 percent funding for special education, the amount promised 25 years ago. H.R. 4577 and S. 2553 make only $500 million increases for FY '01. H.R. 4577 signed into law. It increases the federal share of special education funding from 12% to 15%. STATE CHILDREN'S HEALTH INSURANCE PROGRAM (SCHIP) REGULATIONS Contact: Joy Johnson Wilson SCHIP implementing regulations were published in the Federal Register in November. NCSL submitted comments to DHHS in January. SUPERFUND Contact: Molly Stauffer S. 1090, S. 1105, H.R. 1300 and others. Each bill attempts to address various issues related to the reauthorization of Superfund. No final action in 106th Congress. H.R. 1300 passed House committee. NCSL supported reauthorization efforts that avoid caps on National Priority List additions, retain trust fund financing mechanisms, retain polluter pays principles, allow a 10 percent cost-share on remedial action costs and require adherence to state laws for Brownfields sites. TAX-EXEMPT FINANCING Contact: Gerri Madrid S. 459, H.R. 175, H.R. 864, H.R. 4923, S. 3125, and H.R. 4577. Collectively, these bills increase the bond volume cap, provide an inflationary adjustment for the cap and raise the low-income housing tax credit to $1.75 per capita. NCSL supported all of these bills. H.R. 4577 signed into law. It included bond volume cap and low-income housing tax credit increases. TOBACCO - GRAY MARKET Contact: Joy Johnson Wilson H.R. 4986 puts in effect provisions that will stem the negative impact of gray market cigarette sales (tobacco exports that are reimported). H.R. 4986 signed into law. TRANSPORTATION APPROPRIATIONS FOR FY 2001 Contact: Eileen Doherty H.R. 4475. Fully funds TEA-21 and AIR-21 programs per legislative guarantee to fully use trust fund receipts for highway and aviation programs respectively. Forces states to adopt .08 BAC or else lose 2 percent (FY 04) or up to 8 percent (FY 07) of federal highway funds. Signed into law. NCSL supported, based on compliance with funding agreements in TEA-21 and AIR-21 legislation. NCSL opposed .08 BAC sanction. WIRELESS TELEPHONE CALLS Contact: Neal Osten H.R. 3489, H.R. 4391, S. 1755. These bills simplify state and local government taxation of wireless phone services. Future taxation must be applied to a "place of primary purpose", most likely a home or business. Signed into law. NCSL fully supported this bill and was instrumental in its drafting.   Part B -Issues Resolved by the 106TH Congress, First Session ISSUE BILLS/REGULATIONS STATUS FY 2000 APPROPRIATIONS H.R. 3194, H.R. 2084 and H.R. 2684. Provided FY 2000 appropriations for labor, health, human services, interior, commerce, justice and education programs (H.R. 3194); transportation programs (H.R. 2084); and environment programs (H.R. 2684). H.R. 2084, 2684 and 3194 signed into law. NCSL prevailed on all of its priorities except the Social Services Block Grant. (For more information, see TANF, TEA-21, Water Revolving Funds, Mass Transit, Social Services Block Grant, Balanced Budget Act, State Disbursement Unit Penalty Relief, and Welfare to Work Eligibility and the FY 2000 Budget Resolution.) BALANCED BUDGET ACT REVISIONS (MEDICARE, MEDICAID, CHILDREN'S HEALTH) H.R. 3194, H.R. 3075, H.R. 3426. Made changes to Medicare, Medicaid and State Children's Health Insurance Program (SCHIP) provisions in the Balanced Budget Act of 1997 and other changes to those programs. H.R. 3194 signed into law. Improved reimbursement to many health care providers under Medicare, extended the timeframe for using Medicaid administrative funds provided to states under welfare reform and provided additional funding for evaluation of the SCHIP program. FY 2000 BUDGET RESOLUTION H. Con. Res. 68. Established tax and spending parameters for FY 2000 and beyond. Made spending allocations for FY 2000 appropriations based on the 1997 balanced budget agreement, likely requiring some reductions in assistance to states. Allowed for a tax cut bill of up to $792 billion over ten years. H. Con. Res. 68 passed Congress. NCSL was successful in preserving TEA-21 guaranteed funding, protecting TANF, Title XX, and CHIP spending levels, and blocking assumptions regarding universal state employee contributions to Social Security. The budget resolution did assume some potential reductions in Medicaid administrative funds, but no reductions were made. BANKING/FINANCIAL SERVICES S. 900, H.R. 10. Both bills repealed Depression-era restrictions on financial services offered by banks and other commercial entities. S. 900 signed into law. NCSL supported financial service reform, but objected to preemption of state law regarding the business of insurance, the demutualization of mutual insurers, and diminished state regulatory authority for state-chartered banks. NCSL was successful in having Congress reaffirm the McCarran-Ferguson Act, provide for functional regulation of financial services, give equal standing to state financial services regulators in judicial disputes with federal bank regulators, remove provisions impacting the privacy of health records and ensure that state legislatures can pass stronger financial service privacy protections for consumers. DRIVER'S LICENSE ISSUANCE Section 355 of the conference agreement on H.R. 2084 (FY 2000 Transportation appropriations bill) and H.R. 2337. Repealed a 1996 provision federalizing the state driver's license process and license content standards. 1996 law coupled with subsequent regulations effectively required placement of Social Security numbers on all state driver's licenses and verification of Social Security numbers. H.R. 2084 signed into law. NCSL fully supported. This issue was one of NCSL's top priorities for 1999. DRIVER'S LICENSE RECORDS Section 350 of the conference agreement on H.R. 2084 (FY 2000 Transportation appropriations bill). Mandated states by June 2000 (2001 for biennial state legislatures) to require written licensee consent to distribute personal records data except for insurance, credit, marketing and other purposes. H.R. 2084 signed into law. NCSL opposed the provision when there was a sanction on state highway funds for non-compliance. NCSL supported exceptions in H.R. 2084 and succeeded in knocking out sanction language. ED-FLEX S. 280, H.R. 900. Extended to all 50 states, territories and the District of Columbia authority to qualify for waivers from seven federal educations program requirements. Required state legislatures to waive certain state statutory and regulatory requirements to qualify. H.R. 800 signed into law. NCSL fully supported this legislation. FEDERALISM - executive order E.O. 12612 (existing order) and E. O. 13132 (signed order) on federalism. The new executive order, E. O. 13132, provides guidance to agency heads regarding matters of federalism, consultation with state and local government officials, preemption and intergovernmental relations and their applicability to proposed legislation and rules. NCSL and its state and local government association partners consulted with the administration from January through July. E. O. 13132 was issued in August. FEDERALISM - grant management S. 468 compelled federal agencies to establish uniform grant application standards for crosscutting requirements. Permitted electronic federal grant applications by states. Signed into law on November 20, 1999. NCSL fully supported this legislation. FEDERALISM - unfunded mandates H.R. 3257. Clarified the Congressional Budget Office's scorekeeping responsibilities regarding proposals to limit or reduce federal financing of entitlement programs. Amended the 1995 Unfunded Mandates Reform Act (P.L. 104-4). H.R. 3257 signed into law in December. NCSL fully supported this legislation. FOSTER CARE S. 1327, H.R. 1802. These bills doubled funding for the Independent Living Assistance program. H.R. 1802 permitted states to provide Medicaid coverage to individuals 18-21 years of age living independently. S. 1327 made Medicaid coverage mandatory for a state to receive increased funding. Both eliminated the child support "hold harmless" provision in the 1996 welfare reform law as a spending offset. S. 1327 reduced the federal match for paternity testing. H.R. 1802 passed the House 380-6. NCSL supported the increased ILA funding and the Medicaid option as in H.R. 1802. Ultimately, Congress passed H.R. 3443 as a memorial to the late Senator John Chafee. NCSL prevailed on the Medicaid option and the hold harmless cut was narrowed. No reduction was made in the paternity match. H.R. 3443 was signed into law in December. MASS TRANSIT H.R. 2084. A Senate committee amendment would have reallocated mass transit funds, causing considerable harm to California and New York. H.R. 2084 signed into law. NCSL opposed the amendment and it was dropped. The amendment, if passed, would have broken a TEA-21 agreement. SOCIAL SERVICES BLOCK GRANT (TITLE XX) H.R. 3194 (FY 2000 appropriations bill for labor, health and human services and education). Reduced funding to $1.775 billion. H.R. 3194 kept intact the transferability of Temporary Assistance to Needy Families (TANF) funds into the Social Services Block Grant (SSBG). H.R. 3194 signed into law. Although NCSL supported $2.3 billion for SSBG, the amount agreed to in the 1996 federal welfare reform law, funding was reduced to $1.775 billion. NCSL succeeded in maintaining transferability of TANF funds into SSBG at 10 percent per the 1996 law. STATE DISBURSEMENT UNIT (SDU) PENALTY RELIEF S. 1844, H.R. 3073 and H.R. 3194. Contained penalty relief for states not in compliance with child support automated system for State Disbursement Unit requirements. H.R. 3194 signed into law. NCSL supported penalty relief included in this bill. TANF (TEMPORARY ASSISTANCE TO NEEDY FAMILIES) FUNDING S. 544, H.R. 1141 (both FY 1999 supplemental appropriations bills) and S. 1650, H.R. 3037 (original FY 2000 labor, HHS, education appropriations bills) and H.R. 3194 (final labor, HHS, education appropriations bill). S. 544 originally proposed to cut $350 million out of state TANF funding, breaking a 1996 agreement for guaranteed five-year federal funding of TANF. H.R. 3037 originally proposed a $3 billion cut in TANF. H.R. 3037 and S. 1630 also accelerated to FY 2000 a reduction from 10 percent to 4.25 percent of the transferability of TANF funds into the Social Services Block Grant. H.R. 3194 fully funded TANF. NCSL opposed the $350 million cut in S. 544. It was dropped before Senate floor consideration. NCSL opposed the $3 billion cut in H.R. 3037 and the TANF to SSBG transferability reduction. NCSL supported full funding for TANF and 10 percent transferability to SSBG/Title XX, both of which were included in H.R. 3194 as signed by the president in November. TANF (TEMPORARY ASSISTANCE FOR NEEDY FAMILIES) REGULATIONS Federal Register 54, #69, pages 17729-17931. Established final regulations for the TANF block grant. States retain flexibility to provide a wide range of activities outside of federal requirements. NCSL prevailed on over 90% of issues sought in final rules. States can use their Maintenance of Effort funds for separate state programs not subject to federal time limits and work participation rates. Welfare waivers remain intact. States keep authority to define "families" for purpose of providing assistance.   TEA-21 H.R. 2084 (FY 2000 appropriations bill). Fully funds the 1998 TEA-21 agreement, guaranteeing funding for highways, mass transit and highway safety. Signed into law as P.L. 106-69. NCSL supported the funding portions for TEA-21 because they were based on agreed-upon levels. NCSL successfully opposed an administration-sponsored attempt to divert a portion of the TEA-21 funds to other purposes. NCSL opposed a Senate provision reallocating excess estimated gas tax receipts. That provision survived conference in a reduced amount. TOBACCO RECOUPMENT S. 346, H.R. 351. Prohibited the federal government from recouping any portion of state tobacco settlement funds. H.R. 1141, making FY 1999 supplemental appropriations, included a Senate-added provision prohibiting recoupment. H.R. 1141 signed into law. NCSL fully supported all anti-recoupment measures. This issue was NCSL's top state-federal priority for 1999. WATER REVOLVING FUNDS H.R. 2684. Funded the state clean water state revolving fund for FY 2000 at the FY 1999 level ($1.35 billion). Increased funding for the state drinking water state revolving fund by 6 percent to $820 million for FY 2000. H.R. 2684 signed into law. NCSL fully supported state revolving fund funding. WELFARE TO WORK ELIGIBILITY H.R. 3073, H.R. 3194. Expanded eligibility for the Welfare to Work program, including custodial and non-custodial parents and children aging out of foster care, for job training funds. H.R. 3194 signed into law. NCSL supported this eligibility expansion. Y2K LIABILITY H.R. 775. Exempted state and local governments from punitive damage claims arising out of Y2K computer glitches. Capped punitive damages for businesses with fewer than 50 employees encouraged use of alternative dispute resolution and provided a 90-day waiting period for corrective action on Y2K problems. Preempted state contract and tort law. H.R. 775 sunsets in three years. H.R. 775 signed into law. NCSL supported last year's Y2K information-sharing legislation and opposed H.R. 775 on preemption grounds.   Visitor counts for this page.

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