(5) The States have experience, expertise, and 
a vital interest in the collection of sales and use 
taxes, and thus should take the lead in developing 
and implementing sales and use tax collection sys-
tems that are fair, efficient, and non-discriminatory 
in their application and that will simplify the process 
for both sellers and buyers. 
(6) Online consumer privacy is of paramount 
importance to the growth of electronic commerce 
and must be protected. 
SEC. 4. AUTHORIZATION TO REQUIRE COLLECTION OF 
SALES AND USE TAXES. 
(a) GRANT OF AUTHORITY.— 
(1) IN GENERAL.—Each Member State under 
the Streamlined Sales and Use Tax Agreement is 
authorized, subject to the requirements of this sec-
tion, to require all sellers not qualifying for the 
small seller exception to collect and remit sales and 
use taxes with respect to remote sales sourced to 
that Member State under the Agreement. 
(2) REQUIREMENTS FOR AUTHORITY.—The au-
thorization provided under paragraph (1) shall be 
granted once all of the following have occurred: 
(A) Ten States comprising at least 20 per-
cent of the total population of all States impos-
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ing a sales tax, as determined by the most re-
cent Federal census, have petitioned for mem-
bership and have become Member States under 
the Agreement. 
(B) The following necessary operational as-
pects of the Agreement have been implemented 
by the Governing Board: 
(i) Provider and system certification. 
(ii) Setting of monetary allowance by 
contract with providers. 
(iii) Implementation of an online 
multistate registration system. 
(iv) Adoption of a standard form for 
claiming exemptions electronically. 
(v) Establishment of advisory coun-
cils. 
(vi) Promulgation of rules and proce-
dures for dispute resolution. 
(vii) Promulgation of rules and proce-
dures for audits. 
(viii) Provisions for funding and staff-
ing the Governing Board. 
(C) Each Member State has met the re-
quirements to provide and maintain the data-
bases for sales and use taxes and the taxability 
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matrix described in the Agreement, pursuant to 
requirements of the Governing Board. 
(3) LIMITATION OF AUTHORITY.—The author-
ization provided under paragraph (1)— 
(A) shall be granted notwithstanding any 
other provision of law; and 
(B) is dependent upon the Agreement, as 
amended, meeting the minimum simplification 
requirements of section 6. 
(b) TERMINATION OF AUTHORITY.— 
(1) IN GENERAL.—The authorization provided 
under subsection (a) shall terminate for all States 
if— 
(A) the requirements contained in sub-
section (a) cease to be satisfied; or 
(B) any amendment adopted to the Agree-
ment after the date of the enactment of this 
Act is inconsistent with the provisions of this 
Act. 
(2) LOSS OF MEMBER STATE STATUS.—The au-
thorization provided under subsection (a) shall ter-
minate for a Member State, if such Member State 
no longer meets the requirements for Member State 
status under the terms of the Agreement or the pro-
visions of this Act. 
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(c) DETERMINATION OF STATUS.— 
(1) IN GENERAL.—The Governing Board shall 
determine if Member States are in compliance with 
the requirements of subsections (a) and (b) and 
whether each Member State meets the minimum 
simplification requirements of section 6, and shall 
reevaluate such determination on an annual basis. 
(2) COMPLIANCE DETERMINATION.—Upon the 
determination of the Governing Board that all the 
requirements of subsection (a) have been satisfied, 
the authority to require a seller to collect and remit 
sales and use taxes shall commence on the first day 
of a calendar quarter at least 6 months after the 
date the Governing Board makes its determination. 
(3) NONCOMPLIANCE DETERMINATION.—Upon 
a final determination by the Governing Board that 
a Member State is not in compliance with the min-
imum simplification requirements of section 6 or is 
otherwise not in compliance with the Agreement, 
that Member State shall lose its remote seller collec-
tion authority on the earlier of— 
(A) the date specified by the Governing 
Board; or 
(B) the later of— 
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(i) the first day of January at least 2 
years after the Governing Board finally de-
termined the State was not compliant; or 
(ii) the first day of a calendar quarter 
following the end of one full session of the 
State’s legislature beginning after the Gov-
erning Board finally determined the State 
was not compliant. 
For purposes of this section, the terms ‘‘final 
determination’’ or ‘‘finally determined’’ shall 
mean that all appeals processes provided for in 
the Agreement have been exhausted or the time 
for pursuing such appeals has expired. An ac-
tion before the Federal Court of Claims pursu-
ant to section 5 shall not operate to stay a 
State’s loss of collection authority. 
(4) RESTORATION OF AUTHORITY.—Any Mem-
ber State that loses its collection authority under 
this section must comply with all provisions of this 
section to have its remote seller collection authority 
restored. 
SEC. 5. DETERMINATIONS BY GOVERNING BOARD AND JU-
DICIAL REVIEW OF SUCH DETERMINATIONS. 
(a) PETITION.—At any time after the Governing 
Board has made the determinations required under section 
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4(c), any person who may be affected by the Agreement 
may petition the Governing Board for a determination on 
any issue related to the implementation of the Agreement 
or on a Member State’s compliance with this Act or the 
Agreement. 
(b) REVIEW IN COURT OF FEDERAL CLAIMS.—Any 
person who submits a petition under subsection (a) may 
bring an action against the Governing Board in the United 
States Court of Federal Claims for judicial review of the 
action of the Governing Board on that petition if— 
(1) the petition relates to an issue of whether— 
(A) a Member State has satisfied or con-
tinues to satisfy the requirements for Member 
State status under the Agreement; 
(B) the Governing Board has performed a 
nondiscretionary duty of the Governing Board 
under the Agreement; 
(C) the Agreement— 
(i) continues to satisfy the minimum 
simplification requirements of section 6; or 
(ii) otherwise continues to be con-
sistent with the provisions of this Act; or 
(D) any other requirement of section 4 has 
been satisfied; and 
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