State Legislatures Magazine: January 1999
Editor's Note: These articles appeared in the January 1999 issue of
NCSL's magazine, State Legislatures. To order copies or to
subscribe, contact the marketing department at (303) 830-2200.
Even the coolest Washington insiders were stunned by year-end
developments in the nation’s capital; but it doesn’t look as if
state-federal relations will be much affected.
By Carl Tubbesing
Political Science 101. Final exam. Multiple choice. (Check only
one.)
(1) Which of the following recent events will affect the states’
lobbying priorities in Washington, D.C., in 1999?
_____ The House impeachment proceedings against President Clinton.
_____ The Democratic gains in the House mid-term elections.
_____ Speaker Gingrich’s resignation and the election of Congressman
Livingston as the new speaker of the House.
_____ All of the above.
_____ None of the above.
If you checked "none of the above," you’re probably right. Impeachment
hearings are grave, nearly unprecedented and they preoccupy the news
media. The political party of no previous president has ever gained seats
in the sixth year of his term. And Congressman Gingrich’s decision left
Washington insiders gasping. But as dramatic as these events have been,
they are unlikely to alter recent patterns in the relations between state
officials and the federal government.
(2) Which of the following will characterize the states’ lobbying
concerns in 1999?
_____ Battling against federal attempts to preempt state authority.
_____ Renewing the fight against unfunded mandates.
_____ Ensuring fair treatment in federal budget negotiations.
_____ Getting ready for issues such as Social Security reform and tax
reform, that may take several years to settle.
_____ All of the above.
If you chose "all of the above," you are right again. For the past two
years, state officials have concentrated most of their lobbying resources
on opposing federal proposals to preempt state prerogatives and authority.
The first year of the 106th Congress, however, promises no dominant theme
for state officials. The number of proposals to preempt state laws will
not abate. If anything, there will be even more attempts to preempt in
1999 than there were in the last couple of years.
Added to the states’ lobbying concerns in 1999, though, will be a
resurgence in proposals to impose unfunded mandates on state governments,
new funding constraints imposed by the 1997 balanced budget agreement,
other budget-related issues and preparations for solving problems
associated with the Social Security system, Internet taxation and other
longer term issues.
WARDING OFF PREEMPTION The greatest current
tension between the federal and state governments is over the question of
national standards vs. state flexibility and adaptability. The pressure
for federal preeminence—that is, preemption of state authority—is driven
by several factors, including technological advancements, radical changes
in the world marketplace and campaign fundraising. Opponents of federal
preemption note the advantages of experimentation at the state level, the
cultural and economic diversity among the states, and the responsiveness
and accountability of state legislators.
New Hampshire Speaker Donna Sytek calls the past three years "the most
successful lobbying period the National Conference of State Legislatures
has ever had." She supports her claim with the role legislators played in
devolving several major programs to the states including welfare, safe
drinking water and work force training. "Equally important, though," she
says, "is the overall success we’ve had in forestalling proposals to
supplant state authority with federal standards."
In 1998 alone, state legislators helped thwart congressional efforts to
preempt state authority in at least eight major areas. Bills to preempt
state product liability laws and to remove property rights cases from
state to federal purview met identical fates. Opponents, including state
legislators, were able to garner enough support to cause Senate Majority
Leader Trent Lott to pull them off the calendar.
A major overhaul of banking and insurance laws passed out of the House,
moved out of the Senate Banking Committee, but, in the final days of the
session, failed to muster enough support for approval. Negotiations to
produce a bill that would federalize juvenile justice laws faltered during
Congress’ final week. Competing bills to preempt state managed care laws
also died in the last hours of the 1998 session.
Maine’s U.S. Senator Susan Collins and Massachusetts Senator John Kerry
stymied efforts to include preemption of state anti-slamming laws in the
omnibus budget bill. These are the laws that protect consumers from
unauthorized switching of their long distance phone service. The omnibus
budget bill also includes a section, advocated by Georgia Congressman
Robert Barr and House Majority Leader Dick Armey, that keeps the
Department of Transportation from issuing rules that would require states
to use Social Security numbers on driver’s licenses.
All of these attempts at preemption will be back in 1999, some with
more steam than others. Registering lower on the steam gauge are the
financial services, slamming, product liability and takings proposals. New
York Senator Al D’Amato’s November election defeat diminishes the
prospects for rewriting the nation’s banking and insurance laws. His
successor as chair of the Senate Banking Committee, Texas Senator Phil
Gramm, killed the 1998 version. Louisiana Congressman Billy Tauzin,
sponsor of the 1998 anti-slamming preemption bill, says he has no
intention of bringing it back this year. Long distance companies may
attempt to resurrect it, presumably with another sponsor. With the smaller
Republican majority, interest in resuscitating the product liability and
takings bills will be reduced.
At the high end of the steam gauge will be managed care, Indian gaming
and drivers’ licenses. Over the past five years, many state legislatures
have employed a variety of approaches to regulate managed care, especially
to protect consumers. They let mothers stay in hospitals longer than 24
hours after giving birth. They ease access to emergency services. They let
women designate ob/gyns as their primary care physicians. Despite this
widespread state activity, Democrats and Republicans at the federal level
want to impose national managed care standards. The Clinton administration
has made a federal managed care law one of its top three or four
priorities for 1999. Although House and Senate Republicans will have their
own proposals, they are divided on the desirability of moving in this
area.
In a post-election "Meet the Press" program, South Carolina Republican
Congressman Lindsay Graham made managed care a "must pass" item. "We need
to get HMO reform. We’re not miles apart, we’re yards apart from the
Democrats."
Being close to the Democrats on this issue, though, made Indiana
Congressman David McIntosh nervous. "If we fight on the issues that the
president has laid out—like managed care, then we’ll fall into the same
trap we did last time where the president sets the agenda."
Congressman Barr’s drivers’ license fix is only temporary and provides
time to develop support for an amendment to the immigration law passed in
1996. The 1996 law includes a section sponsored by Texas Congressman Lamar
Smith that requires states to use Social Security numbers on drivers’
licenses. The provision was intended to provide a tougher form of
identification for illegal immigrants and to make it more difficult for
them to find jobs.
Groups as diverse as Phyllis Schaffley’s Eagle Forum, the American
Civil Liberties Union and NCSL responded with outrage when the National
Highway Traffic Safety Administration issued proposed rules to implement
this section of the immigration law. The Eagle Forum and the ACLU voiced
their fears about the section’s privacy implications. NCSL raised cost
concerns and noted it will preempt state laws, especially those that
prohibit the use of Social Security numbers on licenses. The same
coalition will work early in 1999 to remove the section and encourage
Congress to find another way of identifying immigrants.
The irresistible attraction of positive headlines for congressional
sponsors almost guarantees continued interest in juvenile justice
legislation. North Dakota House Majority Leader John Dorso, though, points
out that "most federal anti-crime bills pass in election years." If the
106th Congress holds to precedent, this preemption bill might not get
serious attention until 2000.
Added to the list of preemption reruns is at least one major proposal
that has gotten only cursory treatment in the past. Since 1995, 12
legislatures have restructured their states’ electric utilities. Nine
bills were introduced in Congress in 1998 that would impose a federal
electric utility restructuring solution; and the Clinton administration
unveiled its own deregulation approach. Most observers expect greater
congressional attention on electrical utility restructuring this year.
Oklahoma State Senator Larry Dickerson, an advocate of his state’s
restructuring law, warns against federal action. "Most of these new state
laws are just now taking effect. We know a lot of legislatures are
watching and waiting to see how these initiatives are going to work. So
why should the federal government step in this early without the benefit
of learning from these state experiences?"
Dickerson notes, in fact, that federal preemption may never be
desirable. "There are many legislatures—especially in states with low
utility rates—that may never choose to deregulate. A federal law could
easily force restructuring where the state’s legislature has concluded it
is not warranted."
PROTECTING AGAINST PREEMPTION State Senator
Steve Cohen of Tennessee warns there is a horror movie quality to all of
these preemption proposals. "Like Freddy Krueger in Nightmare on Elm
Street and its 17 sequels," he says, "preemption bills never completely
die. Kill them one year, and they’re back the next."
Speaker Sytek agrees. "Legislators could beat nine of every 10
preemption schemes—a phenomenal lobbying record. Yet, one loss a year
means 10 losses in 10 years. That could translate into a fundamental shift
of power between the state and federal governments over the course of a
decade."
For that reason, state lawmakers hope to work with a bipartisan group
of congressmen to move legislation in 1999 that would discourage
preemption. This legislation would place procedural obstacles in the way
of specific attempts at preemption. A centerpiece of the bill would be
allowing a point of order during floor debate of bills that would supplant
state authority—a device that has proved to be an effective deterrent
against unfunded mandates.
UNFUNDED MANDATES ON THE COMEBACK
TRAIL? The Unfunded Mandate Reform Act became law in 1995.
Since then, not coincidentally, the flow of unfunded mandates from the
federal government to state and local governments has abated
significantly. The new Congress may see more bills that would impose new
costs on state governments. It will also have a chance to reverse a couple
of recent decisions that constitute unfunded mandates.
Several of these bills relate to health care. The Clinton
administration is planning to initiate a new round of nursing home
reforms. Concerned about reports of patient abuse, the administration will
propose stricter requirements on states to make background checks on
nursing home employees.
The Clinton administration will resurrect its annual budget proposal to
cut the amount of money it will reimburse states for their administrative
costs associated with the Medicaid and food stamp programs. The
administration may also attempt to restrict once again the use of provider
taxes for funding the state portion of the Medicaid program.
BUDGET CUTS RISKY BUSINESS FOR STATES The
historic agreement reached in 1997 to balance the federal budget delayed
many of the hard decisions until the "out years" of the five-year plan. In
FY 2000, the out years arrive.
Of greatest importance to state officials is a cap on discretionary
spending that requires a $28.1 billion spending cut. Many state-federal
programs will be high on the list for cuts. Particularly troublesome for
some legislators will be suggestions to reduce block grant funds,
including Temporary Assistance for Needy Families and the social services
block grant.
Michigan Senator Joanne Emmons argues that any reductions in TANF would
betray the agreement state officials reached with the federal government
when the welfare system was revamped in 1996. "We exchanged entitlements
for block grants. We got the flexibility we needed. We did not bargain for
block grants that would be subject to budget cutting every year."
The administration’s FY 2000 proposed budget almost certainly will
advocate mandating Social Security coverage for state employees currently
not in the system. Twenty-two states have substantial numbers of their
employees in alternative pension systems and not in the Social Security
system. Administration officials view mandating coverage as a short-term
budget savings and as a way of extending the life of the Social Security
system.
Maryland House Majority Leader John Hurson, co-chair of a special NCSL
task force on Social Security reform, says legislators hope to convince
Congress not to "unilaterally abrogate the decisions these states have
made." He says Congress should look instead at "more fundamental Social
Security reforms and not this stopgap partial solution."
The November 1998 settlement of state lawsuits against the four largest
tobacco companies raises a different kind of budget issue. The U.S.
Department of Health and Human Services claims that states owe the federal
government a portion of the settlement funds. Its position is that states
are recouping money they paid out of Medicaid over the years to patients
with tobacco-related illnesses.
In 1998, Texas Speaker Pete Laney, Florida Speaker Daniel Webster and
Mississippi Speaker Tim Ford led an aggressive campaign in support of
legislation that would deny their recoupment claim. The bill, co-sponsored
by Florida Senator Robert Graham and Florida Congressman Michael
Bilirakis, died at the end of the session, despite state lawmakers’
efforts and support from Senate Majority Leader Lott. Washington Attorney
General Christine Gregoire, the lead state negotiator in the November
settlement, says the new agreement, which includes money for the 46 states
that had not already settled, "makes passage of the Graham-Bilirakis bill
absolutely imperative."
PREPARING FOR THE LONGER TERM 1999 will also
see Congress and the president beginning to address issues whose
resolution is likely to be a year or more away. Two of these are of
particular interest to state legislatures.
Clinton made saving Social Security the centerpiece of his negotiations
over the FY 1999 federal budget. Two weeks after the mid-term elections,
Congress accepted the challenge, starting with a high-powered Ways and
Means Committee hearing featuring former senior advisers to Presidents
Nixon, Carter, Reagan and Bush. None mentioned the impact that various
reform proposals would have on state governments.
NCSL’s special task force on Social Security reform, co-chaired by
Delegate Hurson and Colorado Senator Norma Anderson, will examine the
proposals from the states’ perspective and attempt to raise the visibility
of state legislatures in the reform discussions.
Included in the omnibus budget bill was a compromise version of the
Internet Tax Freedom Act. It places a three-year moratorium on new state
and local taxes on Internet activities. It creates a commission of eight
state and local officials, eight industry representatives and three
cabinet secretaries who will develop recommendations regarding taxation of
the Internet. The law allows the commission to address sales taxes on
transactions that take place over the Internet and on other remote sales,
including catalogue sales. The commission’s recommendations could have a
fundamental and long-term effect on the nature of state and local tax
systems.
KEEP AN EYE ON CONGRESS Impeachment
hearings and a new Republican House leadership team certainly will
monopolize headlines in the early weeks of the 106th Congress. As
consequential as these events are, state legislators will be equally
concerned with the stories that will not make the headlines—preemption,
the budget, Social Security and taxation of the Internet. How these issues
are settled in 1999 will have their own consequences for the standing of
the states in the federal system as the country approaches the next
century.
Carl Tubbesing, NCSL’s deputy executive director, heads the Washington,
D.C., office.
©1998, National Conference of State Legislatures. All rights
reserved.

Legislators are our best lobbyists" is the tag line for NCSL’s work in
Washington, D.C. State legislators are good lobbyists, in part because
they are so well connected to members of Congress. These connections begin
with the fact that a significant portion of the members of Congress
formerly served in state legislatures. The following multiple choice quiz
examines your knowledge of this linchpin in the relations between state
legislatures and the federal government.
(1) Approximately what fraction of the members of Congress once served
in a state legislature? (Choose one.)
(a) ______ One-third
(b) ______ One-half
(c) ______ Three-fifths
(d) ______ Two-thirds
(2) How does the new congressional class compare to the overall
membership of Congress? Is the percentage of former state legislators in
the new class:
(a) ______ Significantly lower than that in the overall membership?
(b)______ About the same?
(c)______ Somewhat higher?
(d)______ Significantly lower?
(3) Which of the following new members of the Senate and House were
legislative leaders during their previous careers?
(a)______ Michael Crapo, Idaho
(b)______ John Larson, Connecticut
(c)______ Michael Simpson, Idaho
(d)______ Jim Bunning, Kentucky
(e)______ All of the above
(4) Which new member of the U.S. Senate has moved directly there from a
state legislature?
(a)______ Michael Crapo, Idaho
(b)______ Blanche Lambert Lincoln, Arkansas
(c)______ Jim Bunning, Kentucky
(d)______ Peter Fitzgerald, Illinois
(5) Which members of the new House Republican leadership formerly
served in a state legislature?
(a)______ Speaker Bob Livingston, Louisiana
(b)______ Dick Armey
(c)______ Tom DeLay, Texas
(d)______ J.C. Watt
(6) Who was the last speaker of the U.S. House to have served in a
state legislature?
(a)______ Newt Gingrich, Georgia
(b)______ Bob Livingston, Louisiana
(c)______ Tom Foley, Washington
(d)______ Sam Rayburn, Texas
(e)______ Carl Albert, Oklahoma
(f)______ Jim Wright, Texas
(7) Which of the following current members of the U.S. House are former
presidents of the National Conference of State Legislatures?
(a)______ Congressman Martin Sabo, Minnesota
(b)______ Congressman David Hobson, Ohio
(c)______ Congresswoman Karen McCarthy, Missouri
(d)______ Congressman Vern Ehlers, Michigan
Answers: 1=b. Just under half (49.4 percent) of the combined membership
of the House and Senate formerly served in a state legislature. 2=c.
Twenty-three of the 40 new House members are former legislators (58
percent) and five of the eight new members of the U.S. Senate once served
in their legislature. 3=e. All of the above. Senator Crapo was president
pro tempore of the Idaho Senate; Congressman Larson was president pro
tempore of the Connecticut Senate; Congressman Simpson just concluded his
third term as speaker of the Idaho House; and Senator Bunning, in addition
to pitching a perfect game for the Philadelphia Phillies in 1964, also has
served as minority leader of the Kentucky Senate. 4=d. Senator Fitzgerald
was state Senator Fitzgerald from 1993 until his election to the U.S.
Senate in 1998. 5=c. Only Congressman DeLay formerly served in his state’s
legislature. 6=f. Speaker Wright was a member of the Texas House of
Representatives from 1947-48. 7=a and c. Congressman Sabo was NCSL’s third
president (1976-77), and Congresswoman McCarthy served a half term as NCSL
president just before her election to Congress in 1994.
©1998, National Conference of State Legislatures. All rights
reserved.

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