(a)  The state tax administrator shall enter into discussions with states regarding development of a multi-state, voluntary, streamlined system for sales and use tax collection and administration. These discussions shall focus on a system that has the capability to determine whether the transaction is taxable or tax exempt, the appropriate tax rate to be applied to the transaction, and the total tax due on the transaction, and shall provide a method for collecting and remitting sales and use taxes to the state. The system may provide compensation for the costs of collecting and remitting sales and use taxes. Discussions between the tax administrator and other states may include, but are not limited to, the following:

(1)  The development of a “joint request for information” from the potential public and private parties governing the specifications for the system;

(2)  The mechanism for compensating parties for the development and operation of the system;

(3)  Establishment of minimum statutory simplification measures necessary for state participation in the system; and

(4)  Measures to preserve confidentiality of taxpayer information and privacy rights of consumers.

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(b)  Following these discussions, the tax administrator may proceed to issue a joint request for information.