New Model Policies from the 50th ALEC Annual Meeting

“With these new model policies, ALEC members have delivered trusted policy solutions to protect individual liberty and create a better life for all.”

Last month, ALEC wrapped up our 50th Annual Meeting in Orlando, Florida. With 1,600 attendees, including state lawmakers from nearly all 50 states, it was an incredible success.

Attendees heard from speakers, such as Florida Governor Ron DeSantis, Dr. Ben Carson, and Texas Lieutenant Governor Dan Patrick and attended workshops on important issues across the states, including artificial intelligence (AI), education freedom, and ESG.

We also passed 23 new ALEC model policies across our task forces, joining our library of more than 900 trusted policy solutions.

“As Washington debates legislation filled with higher taxes and more regulations, the American people are looking to the states for leadership,” said ALEC CEO Lisa B. Nelson. “With these new model policies, ALEC members have delivered trusted policy solutions to protect individual liberty and create a better life for all.”

Our 23 new model policies are summarized below.

Task Force on Commerce, Insurance and Economic Development

Taxpayer Dollars Protect Workers Act

This model policy requires employers receiving taxpayer-funded economic incentives to agree to safeguard the personal information of their employees and use the secret ballot in unionization elections as a condition of receiving those incentives.

Reject CBDCs and Protect Financial Privacy Act

This resolution opposes the adoption and development of a central bank digital currency (CBDC) and resolves that state agencies will not accept or require central bank digital currency payments.

Accessory Dwelling Units Act

The following model policy authorizes the construction of accessory dwelling units (ADUs) on residential property, outlines the building and land requirements for such dwellings, the permitting processes, and, when applicable, a preemption of local laws prohibiting the construction of such dwellings.

Task Force on Communications and Technology

Reject CBDCs and Protect Financial Privacy Act

This resolution opposes the adoption and development of a central bank digital currency (CBDC) and resolves that state agencies will not accept or require central bank digital currency payments.

Teen Social Media and Internet Safety Act

An act to require public schools to adopt social media and internet safety training; an act to require the State of [Insert State Name] Department of Education OR State of [Insert State Name] Board of Education to adopt an internet safety policy.

Resolution in Support of Free Market Solutions and Enforcement of Existing Regulations for Uses of Artificial Intelligence

This resolution affirms that the free market is best equipped to advance artificial intelligence (AI) innovation and protect consumers, and that state and federal regulators should enforce existing anti-discrimination and other laws against regulated entities that use AI. The resolution also rejects any attempt by federal, state , or municipal governments to ban AI and undermine free market principles. Finally, the resolution expresses the sense that any federal AI regulations must emerge from the U.S. Congress, not promulgated by federal agencies.

Amendments to the Neutrality and Integrity in Software Procurement Act

This Act amends the state’s procurement rules to preserve choice, competition, and integrity in the state’s selection and installation of software products. It requires that software procurement decisions made by the state consider: (1) the total cost of ownership during the full life of the software, including service and maintenance; and (2) time to value, and (3) performance criteria and value of the software based on its ability to meet the specific needs of the state.

The Act also prevents the state from limiting software choice through express or implied preferences for any specific model of software licensing or for any specific software product. Finally, the Act prevents state employees from circumventing procurement rules and information security requirements when acquiring or installing software.

Amendments to the Fantasy Sports Contests Act

Rotisserie league and fantasy sports contests have been around for decades.  Now, the internet allows millions of fans to compete in daily and season-long fantasy sports contests, often with entry fees and cash prizes.  Participation in daily fantasy sports contests now approaches 10 million Americans.  With the rise of this new activity, states are seeking to clarify the legality of daily fantasy sports and ensure that consumers are protected.  The Fantasy Sports Contests Act clarifies establishes registration requirements for operators of fantasy sports contests and provides licensing fees to cover the costs of state regulation.

Task Force on Criminal Justice

Elimination of Youth Justice Fines and Fees Act

This model policy prohibits all fees, fines, or other financial obligations other than restitution from being ordered, assessed, or sought against a youth or a youth’s parent, guardian, or custodian. This model policy does not amend or eliminate a state’s existing victim’s restitution requirements or collection for a youth or a youth’s parent, guardian, or custodian.

This model policy reflects best practices adopted at the state level, including in Louisiana and Arizona, related to youth court fees and fines, which are separate from and unrelated to victim restitution. Data has consistently shown that collection rates from youth are so low in most states that the cost of collecting these obligations can cost taxpayers’ money rather than raising revenue for system operations. Further, fees and fines imposed on youth who oftentimes do not have the means to pay them themselves, undermine rehabilitation and successful reentry by increasing recidivism. This model policy allows a state to prioritize resources devoted to collecting and enforcing fees and fines instead on efforts that improve public safety and reduce the chances of a minor having further interactions with the criminal justice system as an adult.

Veterans Justice Act

This model policy details alternative sentencing options for US veterans charged with certain crimes that recognize their service to the country and that their criminal behavior may derive from their military service. The options include the use of pretrial supervision and probation in lieu of a record of conviction or incarceration and are grounded in evidence-based practices for effective supervision and rehabilitation.

Task Force on Education and Workforce Development

Teen Social Media and Internet Safety Act

An act to require public schools to adopt social media and internet safety training; an act to require the State of [Insert State Name] Department of Education OR State of [Insert State Name] Board of Education to adopt an internet safety policy.

The Opportunity High School Diploma Program

The Opportunity High School Diploma Program creates an alternative and simplified path for adult learners to earn a high school diploma at the same time they are completing a workforce education program at a public community college.

The Career Transparency Act

The Career Transparency Act provides essential information to prospective postsecondary students who are deciding which college they would like to attend and what degree program they would like to pursue. The model requires the state to make a variety of statistics and information publicly available that students will find helpful in making their decision. Information that will be disclosed includes the average starting wage for various degree programs, student debt statistics, graduation rates, and more.

The Early College Education Program

The Early College Education Program allows high school students, particularly those who are designated as being “at risk of dropping out,” to work concurrently toward their high school diploma and an associate degree. The program offers flexibility in scheduling to the student, so they can work at a faster or slower pace as their schedule allows.

Public Community College State Finance Program

The Public Community College State Finance Program implements a modernized financing system for public community colleges. The model establishes two tiers of state funding and transitions the majority of state funds into a “performance tier” that awards funds when public community colleges meet specific performance objectives.

Task Force on Energy, Environment and Agriculture

Act to Prohibit State Procurement of Electric Vehicles with Forced Labor Components

Many electric vehicles are made from components created through forced labor. Taxpayer dollars should not be used to create demand for this inhumane practice, and states should restrict government procurement of electric vehicles unless the manufacturers responsible for the supply chain can show that the taxpayer dollars will not be used to buy a vehicle made with forced labor.

Task Force on Federalism and International Relations

Resolution Supporting a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

This model resolution supports the adoption of an Agreement for the Avoidance of Double Taxation (ADTA) and the Prevention of Fiscal Evasion with Respect to Taxes on Income between the United States and Taiwan. The United States has similar treaties with nations around the world, many of which do not enjoy as robust a trading relationship with the US as Taiwan, and some, including China and Russia, are strategic adversaries rather than strategic partners like Taiwan. Negotiating and concluding a tax agreement with Taiwan could: facilitate US-Taiwan economic cooperation; strengthen US-Taiwan strategic relations; and encourage other nations to increase their economic ties to Taiwan.

Safeguard American Votes and Elections Act (SAVE ACT)

In American federalism, states are the fundamental level of government. This includes primacy over state and local elections, and over many aspects of federal elections. Special interests are pushing a novel and complicated election process called ranked-choice voting (RCV; and also related systems like approval voting and STAR voting). Often they try to enact these in local jurisdictions, creating a conflict between local and state election processes. They have also introduced federal legislation to force RCV on the states. This legislation would prohibit RCV and similar systems in state or local elections.

Act to Prohibit State Procurement of Electric Vehicles with Forced Labor Components

Many electric vehicles are made from components created through forced labor. Taxpayer dollars should not be used to create demand for this inhumane practice, and states should restrict government procurement of electric vehicles unless the manufacturers responsible for the supply chain can show that the taxpayer dollars will not be used to buy a vehicle made with forced labor.

Resolution Calling on the Current Presidential Administration to Oppose Efforts at the World Trade Organization (WTO) to Expand the Trade Related Aspects of Intellectual Property Rights (TRIPS) Waiver Which Would Undermine Global Intellectual Property Rights

Following a misguided World Trade Organization (WTO) decision in June 2022 to eliminate global intellectual property rights (IPR) for COVID-19 vaccines that resulted in what is commonly referred to as the TRIPS Waiver, China and India are among the countries encouraging the (WTO) to expand the waiver to include surrendering the intellectual property (IP) for American-made COVID-19 treatments and diagnostics. The current U.S. Administration is seriously considering agreeing to this proposal, likely at the WTO’s 13th Ministerial Conference in February 2024 in the United Arab Emirates, even though it would (i) undermine American property rights and market-derived innovation, (ii) unilaterally forfeit American IP – and therefore American research and manufacturing jobs – to China and other foreign competitors, and (iii) compromise global public health and undermine U.S. global leadership in healthcare innovation. This resolution calls on the current U.S. Administration to reject the expansion of the TRIPS waiver and all other efforts by the WTO, other international organizations, or their member states to erode American intellectual property rights.

Task Force on Health and Human Services

The Kinship Care Fictive Kin Reform Act

This Act establishes that the Department may approve kinship care” or “Fictive Kin” as a best placement interest of children placement, and an alternative to entering into the foster care system when circumstances necessitate out-of-home-placement for a minor child. When children are no longer able to stay in their homes with their parents due to parental death, military deployment, abuse and/or neglect, parental substance abuse, mental illness, incarceration, serious physical illness, and/or disability, this act directs the Department to place the child with a relative or individual not related by birth, adoption, or marriage, but who maintain an emotionally significant relationship with the child.

Health Care Tax Relief Equity Act

The purpose of this Act is to provide state tax credits for both the purchase of individual health insurance policies and out-of-pocket medical expenses. This bill restores tax equity to the health care system. Currently, only employers are allowed to purchase health insurance with pre-tax dollars. This is not only unfair to individuals, the self-employed, and their families, but it also fosters a dependence on employer provided health care. With tax credits, individuals would be encouraged to shop around for the best plan to meet their needs. Purchasers would become more sensitive to the price and utilization of insurance and, in effect, would spur stronger competition within the health care industry, helping to keep costs under control.

This bill would grant taxpayers a state tax credit for the purchase of health insurance, covering medical care for the taxpayer, the taxpayer’s spouse, or a dependent. The bill would also allow taxpayers to use the credit for out-of-pocket medical care expenses for the taxpayer, the taxpayer’s spouse, or a dependent, which were not reimbursed by insurance.

Welfare System Integrity Act

Many states are facing harsh economic realities—meanwhile, citizens are demanding greater accountability on how their tax dollars are spent.  In many states, citizens are voicing concerns over the escalating cost of the welfare portion of the state budget, which is quickly outpacing other state funding priorities. The easiest way to break the cycle of welfare dependency, as well to stop the perceived and real abuses within the welfare system, is to prevent it in the first place by reducing the number of new enrollments.  Front-end fraud prevention is the logical method to avoid the cost of investigation and prosecution later. One key challenge is to separate those who are truly needy and eligible for TANF, food stamps, and Medicaid from those who are not.  This critical first step in the process will allow the system to focus its efforts on those who have the most difficulty becoming self-sufficient, and it will free up the resources and energy needed to deal with the underlying problems that promote this perpetual cycle of dependency. This legislation will establish the Income Eligibility Verification System (IEVS), a computerized system designed to find and root out welfare fraud.  Currently, the federal government requires all states to have a computerized system of databases in order to eliminate fraudulent applications for assistance.  However, the federal government requires that only four database matches be used.  This updated legislation requires the state to institute a system of 17 different database matches, 13 more than currently mandated by federal law. The IEVS proposed for use here is similar to the one that was successfully enacted as part of Mayor Rudy Giuliani’s welfare reform initiative in New York City.  Using a parallel system, 10,000 fleeing felons alone were found to be abusing the welfare system in NYC.

Task Force on Tax and Fiscal Policy

Resolution Supporting a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

This model resolution supports the adoption of an Agreement for the Avoidance of Double Taxation (ADTA) and the Prevention of Fiscal Evasion with Respect to Taxes on Income between the United States and Taiwan. The United States has similar treaties with nations around the world, many of which do not enjoy as robust a trading relationship with the US as Taiwan, and some, including China and Russia, are strategic adversaries rather than strategic partners like Taiwan. Negotiating and concluding a tax agreement with Taiwan could: facilitate US-Taiwan economic cooperation; strengthen US-Taiwan strategic relations; and encourage other nations to increase their economic ties to Taiwan.

Public Community College State Finance Program

The Public Community College State Finance Program implements a modernized financing system for public community colleges. The model establishes two tiers of state funding and transitions the majority of state funds into a “performance tier” that awards funds when public community colleges meet specific performance objectives.

Amendments to the State Government Employee Retirement Protection Act

This model strengthens fiduciary rules to protect pensioners from politically driven investment strategies. These strategies reduce investment returns over the long term which leads to underfunding in state pension plans across the country.

Public Trusts Pledge Prohibition Act

Many state agencies, public trusts, and other public entities have taken it upon themselves to become signatories to international non-governmental agreements without the express consent of the governed and without a clear public purpose. Unlike private sector companies and organizations, governmental entities funded with taxpayer dollars should be precluded from signing on to international nongovernmental agreements.

Taxpayer Receipt Act

Requires the department of state revenue (department) to annually provide each resident individual taxpayer who filed a return in the immediately previous taxable year a taxpayer receipt statement in an electronic format explaining how the individual taxpayer’s taxes are being used. Requires the department, in consultation with the budget agency, to create and administer an Internet web page on which individual taxpayers may access an estimate of the allocation of their tax payments to various expenditure categories for the most recent state fiscal year based on the adjusted gross income taxes paid by the taxpayer. Specifies the information that must be provided on the web page. Requires the department to include a link to the web page on the state’s individual tax return.