The House passed legislation on October 10 to reverse the state budget bill, restoring a business tax exemption for attorneys and lobbyists.

Senate Bill 26 was originally introduced to allow educators to claim an income tax deduction for out-of-pocket classroom expenses.

The House Finance Committee approved amendments to restore the deduction for attorneys and lobbyists excluded in the two-year state operating bill tax policy of House Bill 166.

Since 2013, the state business income deduction (BID) has allowed those deriving income from any pass-through entity (e.g., LLCs, LLPs) to pay no tax on the first $250,000 of income and a flat 3% on any income above the threshold.

House Bill 166 excluded otherwise eligible income from legal services provided by an attorney or income from legislative, executive agency, or retirement system lobbying activity beginning in 2020.

Senate Bill 26 has been re-referred to the Senate for final approval.

Gov. Gavin Newsom signed a campaign finance bill imposing limits on contributions to candidates for elective county and city offices in jurisdictions that have not independently imposed contribution limits.

Currently, a county or a city may, by ordinance or resolution, limit campaign contributions in local elections. However, many counties and cities have not imposed such limits.

Assembly Bill 571 establishes contribution limits of $4,700 per election to a candidate for elective office in a city or county in which the local government has not established a limit.

The bill also allows a local government to establish different limits that are more precisely tailored to the needs of the community.

Assembly Bill 571 becomes effective January 1, 2021.

On October 2, 2019, a U.S. District Court for the District of New Jersey issued an opinion and order issuing a preliminary injunction.

The Injunction prohibits the state of New Jersey from enforcing the changes in the law from a bill passed earlier this year concerning disclosure requirements by independent expenditure committees.

Senate Bill 150, which was to take effect on October 15, requires the committees to disclose donors giving more than $10,000 and expenditures over $3,000.

The parties filing the lawsuit, Americans for Prosperity v. Grewal, argue the disclosure requirements are unconstitutional and violate the First Amendment.

The preliminary injunction will continue while the lawsuit proceeds.

Del. Tawanna Gaines resigned from her District 22 seat in advance of federal wire fraud charges.

Prosecutors allege from January 2015 through April 2018, Del. Gaines defrauded her campaign and its contributors by taking more than $22,000 from her campaign account for personal use.

If convicted, she faces up to 20 years in federal prison.

Rep. Jake Blum resigned from his District 42 seat on October 4, citing a move to Minnesota.

Republicans in District 42 will select a replacement to fill the vacant seat.

However, the replacement will not serve in the Legislature without winning a future election, since lawmakers will not meet in full session again until 2021 because of North Dakota’s biennial format.

The person selected will fill Blum’s committee assignments in the interim.

The next election for District 42 will be November 2020.

On October 1, the U.S. District Court for the Southern District of New York ruled state laws enacted in 2016 requiring disclosure of donors to tax exempt organizations to be invalid.

In Citizens Union of the City of New York, et al., v. Attorney General of the State of New York, the U.S. District Court found provisions in the state’s ethics laws requiring entities exempt from federal taxation under 26 USC §§501(c)(3) and 501(c)(4) to publicly report donors under certain circumstances to be unconstitutional.

The district court found the disclosure of funding sources requirement for 501(c)(3) entities making an in-kind donation over $2,500 to a 501(c)(4) entity engaged in lobbying violates the First Amendment because it chills speech and burdens donors’ rights to free association and privacy.

The district court also struck down the rule requiring 501(c)(4) to publicly disclose donors if the entity makes a public statement that refers to the position of an official regarding any potential legislation.

The second provision was found to intrude on donors’ right to express opinions anonymously.

Following a weekend storm that put parts of Montana under record levels of snow, the Commissioner of Political Practices Jeff Mangan extended the deadlines for filing campaign finance reports for candidates and committees from Pondera, Teton, and the Blackfeet Nation.

Mangan cited problems with internet access, telephones, and mail service.

For candidates and committees affected by the storm, the deadline to file campaign finance reports is October 4 by 5 p.m.

City candidates in the general election not affected by the storm still file by October 1.

City committees not affected by the storm still file by September 30.

Gov. Gary Herbert has signed a series of bills bringing an end to the special legislative session.

The governor signed two major bills making changes to the laws governing medical cannabis and beer.

Lawmakers approved a change to allow grocery and convenience stores a one-week grace period to purchase and store 4% beer before it can be sold to customers as the cap is lifted from 3.2% beer on Nov. 1.

Additionally, legislators passed changes to the state’s medical cannabis bill.

Wisconsin Gov. Tony Evers issued an executive order calling for a special election to fill Rep. Sean Duffy’s vacant seat in the 7th Congressional District.

The election will take place on January 27, 2020.

Duffy announced his resignation earlier this year after revealing the child he and his wife are expecting in October will have medical issues.

Due to Duffy’s resignation, effective at 5 p.m. on September 23, Evers stated a primary for the seat, if necessary, will be held on December 30.

Lawmakers officially passed a legislative fix to an issue regarding vehicle sales during Gov. Mike Parson’s special session.

The session took place from September 9 to September 16, 2019.

Currently, the value of one previously owned motor vehicle, trailer, boat, or outboard motor may be used as a deduction against the sales tax owed on the purchase of any such vehicle within 180 days before or after a taxpayer sells a previously owned vehicle.

House Bill 1 expands the deduction to include the values of one or more previously owned motor vehicles, trailers, boats, or outboard motors.

Parsons stated if he hadn’t called lawmakers to Jefferson City, thousands of people would have suffered financial loss.

The bill will take effect 90 days after receiving Gov. Parson’s signature.

The Senate adjourned on Monday, bringing an end to the special legislative session.

Gov. Jim Justice called the special session after legislators failed to agree on education proposals following a two-day teacher strike in February.

The Senate adjourned its half of the special session during its scheduled interim meetings.

The House adjourned it’s session about two months ago.

Campaign contribution limits increased following an every other year adjustment to match inflation required by state law.

The amount an individual or PAC may give to a campaign for governor rose from $680 to $710 per election.

The aggregate amount a PAC may give to a candidate for state Senate rose from $2,850 to $3,050.

Additionally, the same amount rose from $1,750 to $1,850 for a candidate for state House.

The Commissioner of Political Practices is in charge of calculating the increase by multiplying last cycle’s limits by an inflation factor provided by statute.

The new contribution limits took effect September 21. Contributions made before that date are subject to the old limits.

However, those who have already given money may contribute again up to the new limits.

Gov. Phil Bryant announced a special election on November 5 for Senate District 50.

A special judge for Harrison County Circuit Court vacated the August 6 primary results due to possible voter irregularities.

Five of the district’s 16 precincts will be allowed to re-vote during the special election to conclude the Republican primary.

No Democratic candidates ran for the vacant seat during the Democratic primary.

The winner of the special election will serve the full term for Senate District 50.

Rep. John Knotwell will resign from the Utah House of Representatives, effective September 30.

The District 52 representative will resign to focus on his employment that requires significant traveling and a busy schedule.

The Salt Lake County Republican Party will be responsible for filling the vacancy.