State Bills Introduced

State Bills Introduced Week Ending January 11, 2008

Variable Annuities New Jersey AB 271 directs the Commissioner of Banking and Insurance, within 180 days of the bill's effective date, to adopt regulations concerning the replacement of life insurance policies and annuity contracts. The bill further provides that the regulations adopted by the commissioner shall be similar in form and content to the Life Insurance and Annuities Model Regulation adopted by the National Association of Insurance Commissioners (NAIC).

South Dakota SB 37 amends the Insurance Code to adopt the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation.

Advanced Penalties Against the Elderly Missouri SB 889 /HB 1488 amends the Securities Act to increase fines and penalties for crimes committed against the elderly (60 or older) or disabled. The proposal would increase fines to not less than $50,000 and not less than 5 years in prison for criminal violations of the Act.

Securities Act Utah HB 83 provides a process for non-departmental hearing officers outside the Department of Commerce to conduct certain securities related proceedings; and makes technical and conforming amendments to the Securities Act.

Viatical Settlements Maine LD 2091 amends the Viatical and Life Settlements Act of 2003 to: expand the definition of a "Viatical settlement contract" to exempt from the definition those premium finance transactions and other transactions that are not settlement contracts; extend from 2 to 5 years the general waiting period for settlements; and expand the specified exceptions under which policyholders could settle their policies and not be subject to the 5-year settlement waiting period.

Broker-Dealers New Jersey SB 406 regulates the participation of issuers of State bonds in derivatives agreements and requires the adoption of certain standards and disclosure policies for State financial advisors, brokers, dealers, and municipal securities dealers. State issuers of bonded indebtedness will be prohibited from entering into derivatives agreements without the adoption of a derivatives policy approved by the State Treasurer and provided to the Joint Budget Oversight Committee.

Financial Literacy New Jersey AB 1237 requires that high school students receive instruction in credit and personal money management as part of Core Curriculum Content Standards.

1 New Jersey AB 278 establishes pilot program in the Department of Education to provide instruction in personal finance to high school seniors. This bill establishes a three-year pilot program to provide high school seniors in selected districts with personal financial literacy instruction.

New Jersey SB 541 establishes a pilot program in the Department of Education to provide instruction in personal finance to elementary school students.

New York AB 9585 establishes that instruction in financial education be provided to pupils in grades nine through twelve which will include a curriculum in the basics of financial planning, budgeting, borrowing, interest rates and personal insurance policies.

Pennsylvania HB 2146 requires financial literacy to be integrated into the curriculum as a core subject. The Secretary of Education shall establish sample curricula to assist school districts in offering such instruction.

Information Privacy New Hampshire HB 1531 establishes a cause of action for identity theft against any person whose social security number is used by another to gain employment.

New Jersey SB 456 establishes a more restrictive information sharing procedure, whereby financial institutions, including banks, credit unions, savings and loan associations, financial services and securities firms, and insurance companies, shall not sell, share or otherwise disclose a consumer’s nonpublic personal information without the consumer’s explicit prior consent; meaning the consumer must "Opt- in" to permit the sharing of information, as opposed to the federal "Opt-Out" system.

Maine LD 2139 directs the Department of Professional and Financial Regulation, Bureau of Financial Institutions to study the effect of data security breaches on Maine banks and credit unions, including the damages suffered as a result of these breaches, and report its findings to the Legislature no later than February 1, 2009.

Virginia HB 385 expands the type of information that would constitute the crime of computer invasion of privacy, to include any personal information relating to any other person as well as another person's name and date of birth.

Virginia SB 132 provides that no agency shall require an individual to furnish or disclose his social security number or driver's license number unless the furnishing or disclosure of such number is expressly authorized by state or federal law and is essential for the performance of that agency's duties.

Virginia SB 133 prohibits the dissemination of another person's social security number, regardless of whether such number is obtained from a public or private record.

Virginia HB 390 creates the Compromised Data Notification Act, which, following discovery or notification of a breach of a security system, requires a state agency that owns or licenses computerized data that includes personal information to provide notice

2 of the breach to all residents of Virginia whose unencrypted personal information was or is reasonably believed to have been acquired by an unauthorized person.

Virginia HB 971 requires a person or business that conducts business in Virginia and that owns or licenses computerized data that includes personal information to conduct a reasonable investigation to promptly determine the likelihood that personal information has been or will be misused when it becomes aware of an incident of unauthorized access to personal customer information.

Identity Theft New Jersey SB 391 establishes the "Anti-Phishing Act" to prohibit the unlawful practice by means of a web page, electronic mail message, or otherwise through the use of the Internet, to solicit, request, or take any action to induce another person to provide personal information without the authority or approval of that business.

Utah SB 52 authorizes the court to order restitution to the victim of an identity fraud offense; and attorney fees, lost wages, and other costs; and the victim's time involved in dealing with the offense, including administrative hearings and clearing the victim's record.

Credit Freeze Virginia HB 345/HB 897/HB 785/HB 607 authorizes an individual to freeze access to his/her credit report. If a consumer has placed a freeze on his/her credit report, a consumer reporting agency is prohibited from releasing the credit report, or any information in it, without the consumer’s express authorization.

Miscellaneous New Jersey AB 356 establishes the Commercial and Technology Court that would have jurisdiction with respect to business and commercial disputes involving contracts; Uniform Commercial Code transactions; banking; insurance; commodities; securities; and corporations.

New Jersey AB 1125 creates a Business Part of the Law Division which would have jurisdiction with respect to business and commercial disputes involving contracts; the Uniform Commercial Code; banking; insurance; commodities; securities; corporations; non-Profit corporations; partnerships; limited liability entities and associations.

New Jersey SB 642 establishes a Business Court that would have jurisdiction with respect to business and commercial disputes involving contracts; the Uniform Commercial Code; banking; insurance; commodities; securities; corporations; non-Profit corporations; partnerships; limited liability entities and associations.