"While shifting power to the states with one hand, the federal government has been busy taking power away from states with the other hand.  The independence and responsibility that devolution has given states in certain areas is being offset by preemption elsewhere," Scheppach said. "Even as states have benefited enormously from block grants during the past few years, the federal government has preempted state laws that affect trade, telecommunications, financial services, electronic commerce, and other areas."

In his testimony, Scheppach pointed to several existing laws that preempt state authority, including:

• the National Securities Markets' Improvement Act of 1996, which weakened states' capacities to protect consumers on securities activities conducted within state boundaries and preempted revenue sources for the investigation and enforcement of fraud and other abusive practices; 
• the consolidated Farm and Rural Development Act of 1991, which preempted state annexation laws making it difficult to provide utility and economic development services in rural areas under state laws; 
• the Telecommunications Act of 1996, which preempted state regulation of inherently local businesses to federal regulators; and 
• the Internet Tax Freedom Act, which preempted state and local authority over taxing authority on transactions over the Internet.

The governor-backed H.R.2245 and Senate version, S. 1214, will protect the reserved powers of states and impose accountability on branches of the federal government for federal preemption of state and local laws and authority. NGA has worked with the committee for six months during the drafting of the bill. Original House cosponsors include Reps. James P. Moran (D-Va.), Rob J. Portman (R-Ohio), David McIntosh (R-Ind.), Karen McCarthy (D-Mo), Michael Castle (R-Del.), Gary Condit (D-Ca), and Thomas M. Davis III (R-Va). Original Senate cosponsors include Sens. Carl Levin (D-Mich.), George V. Voinovich (R-Ohio), Charles S. Robb (D-Va.), Thad Cochran (R-Miss), Blanche L. Lincoln (D-Ark.), Michael B. Enzi (R-Wyo.), John B. Breaux (D-La.), William V. Roth Jr. (R-Del.), and Evan Bayh (D-Ind.).

Key provisions of the legislation include the following.

• Congressional committee and conference reports would be required to contain explicit statements on the extent to which the proposed legislation would preempt state law and why. 
• A "rule of construction" would direct the courts to construe a statute in deference to states where there was ambiguity. 
• Federal agencies would be required to prepare federalism assessments to accompany any rule that would have significant federalism impacts on states, including the extent of the agency prior consultation with elected officials and the extent to which their concerns have been met. 
• Performance measures for state-administered grant programs could only be set after cooperation with states.

"When we fail to use these federalism principles -- consultation, disclosure, impact statements, deference, and enforcement - we spend even more effort to correct the problems created in areas such as telecommunications, the Internet, environmental laws, local zoning, regulatory preemption, and long-term tax policy. Our message to you is to move forward towards an "enforceable" federalism partnership with the elected officials of all levels of government," said Scheppach. "We urge you to join us in a revived working partnership involving all of America in our system of government through all of its elected officials. We can best meet the single and special needs of some of the people while also meeting the collective needs of most of the people."