Gov. Dennis Daugaard has called a special session for September 12.

The session will address legislation allowing the state to enforce remote sellers to collect and remit sales tax.

In addition to calling the session, Daugaard will be appointing three people to fill vacancies in the Legislature to ensure the districts are fully represented during the special session.

Campaign Finance

National: “LePage Will Release Over $1 Million in Campaign Funds” by Marina Villeneuve (Associated Press) for Raleigh News and Observer

Montana: “Billings House Candidate Insists Loan from Public Service Commissioner Wasn’t Campaign Contribution” by Matt Hudson (Billings Gazette) for Montana Standard

Elections

National: “A ‘Rainbow Wave’? 2018 Has More L.G.B.T. Candidates Than Ever” by Liam Stack and Catie Edmonson (New York Times) for MSN

National: “Kris Kobach Used Flawed Research to Defend Trump’s Voter Fraud Panel, Experts Say” by Eli Rosenberg (Washington Post) for Chicago Tribune

Ethics

National: “Where Are Retiring Congress Members Going to Work? Loopholes Let Them Job Hunt in Secret” by Bill Theobald for USA Today

Michigan: “Thanedar Discloses Ties to Radio Hosts Who Promoted Him” by Jonathan Oosting for Detroit News

Missouri: “Lawsuit Seeks to Knock Gerrymandering Issue Off Missouri’s November Ballot” by Kurt Erickson for St. Louis Post-Dispatch

Tennessee: “Ousted Tennessee Lawmaker Fights for Retirement Benefits” by Daniel Jackson for Courthouse News Service

Lobbying

National: “Former Trump Campaign Aides Set Up Foreign Lobbying Shop in Corey Lewandowski’s Townhouse” by Soo Rin Kim for ABC News

Missouri: “Slay’s Role as Lobbyist Raises Questions Over Conflict of Interest in Quest to Privatize Airport” by Melody Walker for St. Louis Public Radio

A lawsuit has been filed to remove a referendum from the Missouri ballot. On August 2, Sec. of State Jay Ashcroft certified an ethics initiative for the November general election ballot.

The proposal would limit legislative gifts from lobbyists, reduce campaign contribution limits for legislative candidates, create a two-year waiting period for public officials seeking to become lobbyists, and establish new procedures for redistricting.

The lawsuit claims the proposed referendum violates a provision of the Missouri Constitution limiting ballot measures to a single subject.

Combining multiple subjects in a single ballot measure can force voters to vote for a matter they do not support just to enact a proposal they do support.

On August 3, a federal court ruled a campaign finance disclosure regulation, followed for decades by the Federal Election Commission (FEC), failed to uphold disclosure requirements required by a federal statute. Chief Judge Beryl A. Howell of the United States District Court for The District of Columbia issued an order, in CREW v. FEC, vacating 11 C.F.R. §109.10(e)(1)(vi), but stayed the vacatur for 45 days to give time for the FEC to issue interim regulations comporting with the statutory disclosure requirements of 52 U.S.C. §30104(c). The court also has allowed the FEC 30 days to change an earlier FEC dismissal to conform with the court’s ruling.

The case originated because of independent expenditures made in a 2012 Ohio senate race by the non-political social-welfare nonprofit Crossroads Grassroots Policy Strategies (Crossroads GPS), an affiliate of the American Crossroads Super PAC. Crossroads GPS did not report donors when reporting its independent expenditures, while it acknowledged receiving contributions over $200, arguing the donors did not donate funds directly tied to any specific reported expenditure, as the FEC interpreted 11 C.F.R. §109.10(e)(1)(vi) to require. Non-political committees making independent expenditures over $250 in a calendar year must comply with disclosure obligations closely analogous to those imposed on political committees.

The vacated regulation required the identification of each person who made a contribution in excess of $200 to the person filing a disclosure report, including for non-political 501(c)(4) non-profits entities making independent expenditures, if the contribution was made for the purpose of furthering the reported independent expenditure. The court found the regulation, as construed and applied by the FEC, did not require the disclosure of donors, absent the donor’s express agreement that the funds be used for the specific expenditures reported to the FEC, even though the donor may otherwise support and in fact contribute for the purpose of funding those expenditures. The court found the regulation impermissibly narrows the mandated disclosure in 52 U.S.C. §30104(c)(2)(C), which requires the identification of such donors contributing for the purpose of furthering the non-political committee’s own express advocacy for or against the election of a federal candidate, even when the donor has not expressly directed that the funds be used in the precise manner reported.

Campaign Finance

National: “Judge’s Ruling Invalidates FEC Regulation Allowing Anonymous Donations to ‘Dark Money’ Groups” by Brent Griffiths for Politico

Elections

National: “Accused of Harassment, and Seeking Redemption at the Ballot Box” by Julie Turkewitz and Alan Blinder (New York Times) for MSN

National: “Beyond the N.R.A.: Maria Butina’s peculiar bid for Russian influence” by Matthew Rosenberg, Mike McIntire, Michael LaForgia, Andrew Kramer, and Elizabeth Dias (New York Times) for MSN

National: “President Admits Trump Tower Meeting Was Meant to Get Dirt on Clinton” by Michael Shear and Michael Schmidt (New York Times) for MSN

Ethics

Missouri: “Missouri Voters Get to Decide Medical Marijuana, Minimum Wage, Ethics Reform in Fall” by Alison Kite for Kansas City Star

New York: “What Has JCOPE Actually Done?” by Kay Dervishi for City and State

Texas: “Texas Court Revives Lawsuit to Strip Ethics Regulators of Campaign, Elections Oversight” by Lauren McGaughey for Dallas News

Lobbying

Florida: “Panel Finds ‘Probable Cause’ That Five Municipal Officials, Five Lobbyists Violated State Ethics Laws” by John Haughey for Florida Watchdog

Due to the passage of Legislative Document 1842, lobbyists will be required to complete an in-person harassment training.

The training must be taken at the beginning of every regular session.

Additionally, lobbyists must include the date the training was completed on their lobbyist registration form.

The bill will become effective at the adjournment of the special session.

Campaign Finance

National: Corporate Donations Are New Test for Democratic Candidates by Lisa Lerer (Associated Press) for Lowell Sun

National: Trump Legal Fund Remains Mum on Donors, Payments by Ken Doyle for Bloomberg Government

Elections

North Carolina: Arrested, Jailed and Charged with a Felony. For Voting. by Jack Healy (New York Times) for WRAL

Ethics

National: These Lame Ducks Still Fly – On the Taxpayer’s Dime – Often to Faraway Countries by Bill Theobald for USA Today

Michigan: ‘I’m Ready’: Towing titan Fiore hauled off to prison for 21 months by Tresa Baldas for Detroit Free Press

Oregon: Oregon House Speaker, Senate President Accused of Sexual Harassment Cover-up by Fellow Democrat by Gordon Friedman for Portland Oregonian

Wisconsin: Ethics Commission Picks New Administrator by The Associated Press for Wisconsin Law Journal

Lobbying

Canada: B.C. Watchdog Warns of Legal Loophole Letting Ex-Staffers Lobby Leaders by David Ball for Toronto Star

Secretary of State Warner announced the official registration dates for a special election to fill the seat vacated by former state Supreme Court Justice Menis Ketchum.

The special election will occur concurrently with the general election on November 6.

Ketchum recently agreed to plead guilty to a felony criminal count of wire fraud for using a vehicle and fuel card owned by the state for personal travel.

Ketchum resigned effective July 27 with two years left on his term.

Pictured: Former Supreme Court Justice Menis Ketchum

National:

As Midterm Elections Approach, a Growing Concern That the Nation Is Not Protected from Russian Interference
Washington Post – Ellen Nakashima and Craig Timberg | Published: 8/1/2018

Two years after Russia interfered in the American presidential campaign, the nation has done little to protect itself against a renewed effort to influence voters in the coming congressional midterm elections, according to lawmakers and independent analysts. They say voting systems are more secure against hackers, thanks to action at the federal and state levels, and the Russians have not targeted those systems to the degree they did in 2016. But Russian efforts to manipulate American voters through misleading social media postings are likely to have grown more sophisticated and harder to detect, and there is not a sufficiently strong government strategy to combat information warfare against the U.S.

Campaigns Enter Texting Era with a Plea: Will U Vote 4 Me 🙏??
New York Times – Kevin Roos | Published: 8/1/2018

Candidates in this year’s midterm elections are still sending mailers, putting ads on television, and knocking on doors to drum up support. But they have added a new, hard-to-ignore tool to their arsenal: personalized text messages sent to voters’ phones. When TV ads are skipped and email inboxes automatically filter out junk and promotions, it is not surprising that campaigns are desperate for a tool that can reliably get voters’ attention. What is surprising is how influential the lowly SMS text message has remained. Both Democratic and Republican campaigns are relying on mass-texting apps that take advantage of a clever legal loophole to send huge numbers of texts per day without running afoul of anti-spam laws.

Federal:

At Prayer Breakfast, Guests Seek Access to a Different Higher Power
WRAL – Kenneth Vogel and Elizabeth Dias (New York Times) | Published: 7/27/2018

The National Prayer Breakfast has long brought together people from all over the world for an agenda built around the teachings of Jesus. But the annual event has become an international influence-peddling bazaar, where foreign dignitaries, religious leaders, diplomats, and lobbyists jockey for access to the highest reaches of American power. The subculture around the breakfast was thrust into the spotlight with the indictment of Maria Butina, who was charged with conspiring to act as a Russian agent. Her goals, prosecutors said, included gaining access to the breakfast “to establish a back channel of communication” between influential Russians and Americans “to promote the political interests of the Russian Federation.”

Mueller’s Digging Exposes Culture of Foreign Lobbying and Its Big Paydays
WRAL – Mark Mazzetti and Katie Benner (New York Times) | Published: 8/1/2018

The case against Paul Manafort is part of a broader inquiry into the lucrative work done on behalf of the former president of Ukraine, Viktor Yanukovych, and special counsel Robert Mueller has handed some elements of the investigation to federal prosecutors in New York. Beyond Mueller’s office, the Justice Department has also recently been pursuing such cases with greater urgency under the Foreign Agents Registration Act and related to foreign influence operations more broadly. All of this has prompted lobbyists to hunt for advice about how to comply with laws governing that sphere. “The phone rings much more often with this question than it did two years ago,” said Tom Spulak, a partner at the King & Spalding law firm who advises on lobbying compliance.

From the States and Municipalities:

Alaska: Ethics Reform Bill Signed into Law
Cordova Times; Staff –   | Published: 7/27/2018

Alaska Gov. Bill Walker signed a bill into law that bars lobbyists from buying meals or alcoholic beverages for lawmakers. House Bill 44 also requires that when legislators vote on an issue they or their immediate family have a financial stake in they must disclose it, among other provisions.

California: Combatting Corruption: How effective is the political watchdog Jerry Brown helped create?
CALmatters – Laurel Rosenhall and Robbie Short | Published: 7/25/2018

California voters overwhelmingly approved the Political Reform Act, which also created the Fair Political Practices Commission to enforce the new ethics rules championed by Jerry Brown when he first ran for governor in 1974. Yet while Brown rose to power in the 1970s expressing a passion for cleaning up politics, he has not demonstrated the same zeal in the sunset of his career. The idealism of a young candidate has been replaced with the resignation of an experienced politician who seems to doubt how much the government can regulate human foibles.

Florida: Jack Latvala Cleared of Criminal Charges by State Prosecutor
Tampa Bay Times – Steve Bousquet, Mary Ellen Klas, and Emily Mahoney | Published: 7/26/2018

Tallahassee’s state attorney, Jack Campbell, said he could not find enough evidence to charge former Florida Sen. Jack Latvala following claims he engaged in a sex-for-vote scheme. Lobbyist Laura McLeod alleged Latvala intimated on multiple occasions if she had sex with him or let him touch her that he would lend his influential support to issues she was promoting. The Florida Department of Law Enforcement (FDLE) concluded Latvala did not unlawfully exert his influence. Campbell submitted a letter to FDLE concurring there was not enough evidence to support the claims of public corruption.

Georgia: In Georgia Governor’s Race, a Defining Moment for a Southern State
WRAL – Kevin Sack and Alan Blinder (New York Times) | Published: 7/28/2018

Georgia’s gubernatorial race between Brian Kemp and Stacey Abrams has taken on the dimensions of a defining moment, one that will determine what the state represents and how it is perceived. That voters chose these two candidates reflects how Americans are embracing politicians on the basis of culture and identity, and how Georgia’s politics are catching up with its rapid demographic change. More starkly than in most midterm campaigns, the contest between Kemp, the two-term Republican secretary of state, and Abrams, a former Democratic leader in the state Legislature, has come to mirror the polarization of the Trump era and expose the consequences of a primary system that increasingly rewards those who appeal to the fringes.

Illinois: Company Used Convicted Chicago Schools Chief in ‘Highly Unethical’ Work to Win Millions in CPS Business, Watchdog Finds
Chicago Tribune – Juan Perez Jr. | Published: 7/31/2018

A for-profit company that educates at-risk students won tens of millions of dollars from Chicago Public Schools with help from then-district Chief Executive Officer Barbara Byrd-Bennet and her co-conspirators. That “highly unethical conduct” was essential for Camelot Education to open four campuses several years ago, Inspector General Nicholas Schuler said in a report. Schuler’s office asked the Board of Education to disqualify Camelot and two unnamed company executives from future business. If the board concludes doing so would be too disruptive, Schuler recommended the board fine Camelot $6.7 million and appoint an independent monitor to review the company’s conduct for three years.

Maine: Judge Orders LePage to Release Clean Elections Cash
centralmaine.com – Scott Thistle | Published: 8/2/2018

A judge ordered Maine Gov. Paul LePage to release about $1.4 million in campaign funds for candidates running under the state’s clean elections law. The order would provide public funding for the campaigns of about 174 candidates for the Legislature and one candidate running in the governor’s race. The ruling does not affect an additional $4.8 million in clean elections funding that is tied up in a partisan dispute in the state House.

Missouri: Divided KC Council Defeats $5 Gift Proposal – ‘We’re Doing Fine’
Kansas City Star – Bill Turque | Published: 7/26/2018

The Kansas City Council voted down a bill that would limit lobbyists’ gifts and taxpayer-funded travel. The measure slashed the maximum value of gifts from $1,000 to five dollars. It restricted city-funded council and mayoral travel to two trips per four-year term, except when representing the city before the state or federal government. It also doubled from one to two years the time ex-officials must wait before lobbying the city or working as a contractor.

New York: Sheldon Silver, Ex-Assembly Speaker, Gets 7 Years in Prison for Corruption Conviction
Rochester Democrat and Chronicle – Jon Campbell | Published: 7/27/2018

Sheldon Silver, the former New York Assembly speaker who brokered legislative deals for two decades before corruption charges abruptly ended his career, was sentenced to seven years in prison. Silver’s initial conviction on the charges in 2015 was tossed out by an appeals court, but a jury once again found him guilty of taking nearly $4 million in return for legislative favors he performed for a cancer researcher and real estate developers. His sentencing comes 10 days after Dean Skelos, the former New York Senate leader, and his son, Adam, were convicted of extortion, wire fraud, and bribery at a retrial for each of them.

North Carolina
‘I Have Not Been Involved,’ NC Supreme Court Justice Says of Bill Targeting Opponent
Raleigh News and Observer – Wil Doran | Published: 7/26/2018

North Carolina legislators took another step that critics say amounted to meddling in this year’s election for a seat on the state Supreme Court. State lawmakers voted along almost entirely partisan lines, deciding that only one of the two Republicans running for the seat would have her party affiliation listed on the ballot. Republicans are worried the candidate the bill affected, Chris Anglin, is not truly a Republican but rather part of a Democratic plot to influence the election. Supreme Court Justice Barbara Jackson said she did not ask for the bill targeting Anglin. Jackson said she hardly ever speaks with legislators about anything to avoid conflicts-of-interest.

Pennsylvania: Lehigh County Pay-to-Play Law Crimps Donations from Political Candidates’ Own Parties
Allentown Morning Call – Tom Shortell | Published: 7/30/2018

Lehigh County’s “pay-to-play” law has become a factor in one of this year’s most closely watched congressional races, with one candidate’s campaign saying it has impeded fundraising. Outside groups have pumped millions of dollars into the race, which they see as a critical swing district in a fight to control Congress. But all that money flowing toward Marty Nothstein’s campaign could create complications in Lehigh County. Because Nothstein is an elected member of the county Board of Commissioners, any donations he would receive from county vendors could trigger the “pay-to-play” provisions.

Vermont: Vermont Campaign-Finance Limits Survive Appeal
Courthouse News Service – Nick Rummell | Published: 7/31/2018

An appeals court ruled Vermont does not trample the First Amendment by hinging public financing of political candidates on their adherence to certain rules. The opinion upholds the dismissal of a lawsuit by a candidate for lieutenant governor who argued his receipt of public financing should not force him to curtail expenditures and contributions from private parties. “Given the free choice to accept the grants and restrictions that public financing entails or to engage in unlimited private fundraising, candidates cannot complain that electing the former course burdens their rights,” Judge Robert Katzmann wrote.

Campaign Finance

Tennessee: “Tennessee Sued Over PAC Contributions ‘Blackout Period’ Before Elections” by Joey Garrison for The Tennessean

Vermont: “Vermont Campaign-Finance Limits Survive Appeal” by Nick Rummell for Courthouse News Service

Elections

National: “Campaigns Enter Texting Era with a Plea: Will U Vote 4 Me 🙏??” by Kevin Roos for New York Times

Washington D.C.: “The Voters Approved It. Should Lawmakers Erase the Result? In D.C., a Debate About Democracy.” by Reis Thebault for Washington Post

Ethics

Alabama: “Alabama’s ‘Beach House Sheriff’ Is Selling His Beach House” by Connor Sheets for AL.com

California: “San Diego Council Sets Up Ballot Measure to Double the Salary for Council, Mayor” by David Garrick for San Diego Union Tribune

California: “Vindicated Colonies Corruption Figure Sues San Bernardino County, DA in Federal Court for $40 Million” by Joe Nelson for San Bernardino Sun

Michigan: “Macomb Politician Gets 20 Months in Prison for Corruption” by Robert Snell for Detroit News

New York: “Ethics Commissioner Wants Option to Make Status of Probes Public” by Chris Bragg for Albany Times Union

Lobbying

National: “Mueller Refers Foreign Agent Inquiries to New York Prosecutors” by Erica Orden (CNN) for MSN

National: “Lobbying Groups Join Fight Against Sexual Harassment” by Katherine Tully-McManus for Roll Call

Akron Mayor Dan Horrigan plans to collect signatures in a citywide petition to move Akron’s primary elections from September to May.

City Council previously proposed putting the issue on the November ballot, but the legislation stalled. Local primary elections in Ohio are held in May unless a charter provides otherwise.

Summit County is one of only three Ohio counties holding municipal primary elections in September. Moving the Akron primary to May would save the city money while increasing voter turnout.

Five other Summit County cities are also considering the election date change.

Campaign Finance

Arizona: “Secretary of State Michele Reagan Again Delays Arizona Campaign Website Planned for 2015” by Dustin Gardiner for Arizona Republic

Michigan: “Former Michigan Secretary of State, Husband Agree to Pay $66K Fine” by Todd Spangler for Detroit Free Press

Minnesota: “Minnesota Political Donors Benefiting from State Campaign Refund Program” by Eric Chaloux for KSTP

Missouri: “Judge Strikes One St. Louis County Ballot Question on Campaign Contributions, but Other Two Are OK” by Jeremy Kohler for St. Louis Post-Dispatch

Pennsylvania: “Lehigh County Pay-to-Play Law Crimps Donations from Political Candidates’ Own Parties” by Tom Shortell for Allentown Morning Call

Elections

National: “Facebook Has Identified Ongoing Political Influence Campaign” by Nicholas Fandos and Kevin Roose for MSN

Ethics

National: “FEMA Personnel Chief Harassed Women, Hired Some as Possible Sexual Partners for Male Employees, Agency’s Leader Says” by Lisa Rein (Washington Post) for MSN

Illinois: “Company Used Convicted Chicago Schools Chief in ‘Highly Unethical’ Work to Win Millions in CPS Business, Watchdog Finds” by Juan Perez Jr. for Chicago Tribune

Lobbying

National: “Foreign Lobbying Overhauls Stall as Manafort Goes to Trial” by Kate Ackley for Roll Call

Campaign Finance

National: “Liberal Activists Embrace ‘Dark Money’ in Supreme Court Fight” by Michelle Ye Hee Lee (Washington Post) for Everett Herald

Elections

Georgia: “In Georgia Governor’s Race, a Defining Moment for a Southern State” by Kevin Sack and Alan Blinder for WRAL

Ethics

California: “Combatting Corruption: How effective is the political watchdog Jerry Brown helped create?” by Laurel Rosenhall and Robbie Short for CALmatters

New Mexico: “Investigators Move Sexual Harassment Case Against Legislator Forward” by Dan McKay and Dan Boyd for Albuquerque Journal

Lobbying

National: “From Six Homes to a City Jail: Paul Manafort, who redefined lobbying, faces trial” by Rachel Weiner and Tom Hamburger (Washington Post) for The News-Times

National: “At Prayer Breakfast, Guests Seek Access to a Different Higher Power” by Kenneth Vogel and Elizabeth Dias (New York Times) for WRAL

National: “EPA Chief Andrew Wheeler’s Past Lobbying Ties Attract Scrutiny” by Juliet Eilperin (Washington Post) for MSN

Alaska: “Ethics Reform Bill Signed into Law” by Staff for Cordova Times

Gov. Phil Bryant announced a special election on November 6, to fill a seat in House District 31.

The special election will fill the seat vacated by Rep. Sara Thomas last month.

Thomas has served in the role for 21 years and cited the desire to spend more time with family as her reason for resigning.