Preemption watch.Two important bills that potentially intrude on Verb 1. intrude on - to intrude upon, infringe, encroach on, violate; "This new colleague invades my territory"; "The neighbors intrude on your privacy"
encroach upon, obtrude upon, invade state authority have been introduced in the 105th Congress to require deregulation Deregulation
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Traditional areas that have been deregulated are the telephone and airline industries. and retail competition for electric utilities. Representative Dan Schaefer of Colorado has introduced HR 655, essentially a duplicate of his HR 3790 introduced last session. Senator Dale Bumpers of Arkansas, ranking Democrat on the Senate Energy and Natural Resources Committee, has introduced S 237, which also would deregulate deregulate
To reduce or eliminate control. One of the major forces in the financial markets in the 1970s and 1980s was the federal government's decision to deregulate interest rates. the electric utility industry and preempt pre·empt or pre-empt
v. pre·empt·ed, pre·empt·ing, pre·empts
1. To appropriate, seize, or take for oneself before others. See Synonyms at appropriate.
a. state law to mandate retail competition (while retaining a role for states in regulating and supervising competition). Representative Tom DeLay, the House Republican whip, is expected to introduce a third bill in early March.
The Schaefer bill would require open competition in the retail electricity market by Dec. 15, 2000. Bumpers would deregulate the retail market by December 2003. Both would allow the states a measure of discretion in implementing the federal law, but states still would be required to open retail markets and to meet minimum federal standards. This could lead to the feds dictating a variety of issues, such as recovery of stranded costs, renewable energy initiatives and consumer protection.
NCSL's message to Congress is that federal preemption preemption
U.S. policy that allowed the first settlers, or squatters, on public land to buy the land they had improved. Since improved land, coveted by speculators, was often priced too high for squatters to buy at auction, temporary preemptive laws allowed them to acquire of state law in this area is premature and unwarranted. Congress should limit its involvement to removing federal statutory impediments to state deregulation efforts. State legislatures and state utility commissions traditionally have regulated the retail electricity market and in doing so have not unnecessarily burdened interstate commerce interstate commerce
In the U.S., any commercial transaction or traffic that crosses state boundaries or that involves more than one state. Government regulation of interstate commerce is founded on the commerce clause of the Constitution (Article I, section 8), which .
To the contrary, states have led the way with experiments in retail competition. New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , for example, has already launched a pilot program in retail competition and will open the market to competition on a statewide basis by next January. California and Pennsylvania will open their retail utility markets to competition in 1998, Rhode Island Rhode Island, island, United States
Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. by 2001. Arizona plans to deregulate its retail market by Jan. 1, 2002. Illinois will run two pilot programs in local retail competition. And most state legislatures and public utility commissions have proposals for competition in the retail electricity market under active consideration.
NCSL NCSL National Conference of State Legislatures
NCSL National College for School Leadership
NCSL National Conference of Standards Laboratories
NCSL National Council of State Legislators
NCSL National Computer Systems Laboratory (NIST) argues that congressional action would disrupt carefully crafted state experiments with retail competition. Electric utility deregulation is not a simple matter. The road from regulated monopolies to market driven competition is always an uncertain course. It is too early to say whether consumers will always see lower utility costs, or, more important, to assess which consumers, industrial or residential, urban or rural, will benefit. It is imperative that states stay in the driver's seat, so that midcourse mid·course
1. The part of a missile flight between the end of the launching phase and reentry, during which corrective maneuvers are made.
2. The middle point of a course or of a course of action. adjustments can be made.
The structure of the industry also varies greatly from state to state. Those that have moved quickly to deregulate have been plagued with high utility rates, caused in New Hampshire's case, for example, by heavy reliance on high cost nuclear power plants. A state like Idaho, on the other hand, with its hydropower hy·dro·pow·er
Hydroelectric power. and low-cost coal, currently has low rates and has so far rejected retail deregulation. It simply cannot be assumed that states will benefit from a one-size-fits-all model for electric utility deregulation that has been designed in Washington, D.C.
Another reason for concern is that the electric utility bills are only the latest in a wave of bills and recent enactments that would override state regulatory authority. The 105th Congress is actively considering bills that would preempt the authority of state legislatures over product liability and over "multiple employer welfare associations" in the health insurance arena. And Congress already has acted in recent years to substantially take away state jurisdiction over many elements of trucking, credit reporting, telecommunications and banking policy.
So where does it stop? What authority will state legislatures have 20 years from now if Congress continues to preempt at this pace?