Multiple states have recently passed or introduced legislation setting guidelines on who is allowed to make contracts with state agencies. States have previously made it clear that their agencies are not allowed to do business with vendors who are not registered to collect and remit sales and use tax in their state. A new trend is emerging in which states are not allowing vendors to do business with their agencies if an affiliate of the vendor is supposed to, but has not registered to collect and remit sales and use tax in their state. Legislation is pending in Georgia and legislation has been passed in California, Connecticut, Illinois, Missouri, North Carolina, and Virginia. (Georgia- HB 1240, 2004; California- SB 1009, 2003; Connecticut- HB 6802, 2003; Illinois- SB 874, 2003; Missouri- HB 600, 2003; North Carolina- HB 1433, 1999; Virginia- Ruling of Commissioner, P.D. 04-4, January 23, 2004.)