Category: Uncategorized

All I Want for Christmas
By Rep. Dusty Johnson
December 20, 2023

The year may be coming to a close, but it doesn’t look like our southern border is.

A year ago, my Republican colleagues and I made a commitment to secure the border and combat illegal immigration. While immigration is an important part of our country, the current system is broken and needs reform. An open border only increases the stress on our immigration processing systems.

Recently, our southern border had its highest number of migrant encounters in a single day: 12,600. Because of these sustained high crossing numbers, U.S. Customs and Border Patrol has announced the closure of vital cross-border rail operations in Eagle Pass and El Paso, Texas, stalling essential trade between the U.S. and Mexico. The Biden administration’s handling of the border crisis is now causing disruptions to our supply chain, just in time for Christmas. The bandages the administration is putting on the border are not solving the problem. They’re only causing more stress on local communities across America.

The House has passed H.R. 2, the Secure the Border Act, with the strongest border policies ever advanced out of the House. It’s time for the Senate and the administration to follow suit and pass strong border policies.

All I want for Christmas is a secure southern border, and I will do everything I can to ensure we provide necessary border security and make important reforms to our immigration process.

This year has been one for the history books. House Republicans have taken many steps to fulfill our commitment to America, but there is still work to be done.  I wish you and your family a merry Christmas and I look forward to what we can accomplish in the new year!

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Rounds, McHenry Lead 77 Colleagues in Requesting Delay for Unclear Reporting Requirements for Small Businesses 

WASHINGTON – U.S. Senator Mike Rounds (R-S.D.), a senior member of the Senate Committee on Banking, Housing, and Urban Affairs, and House Financial Services Committee Chairman Patrick McHenry (R-N.C.) partnered with Senator Rick Scott (R-Fla.) and Representative Warren Davidson (R-Ohio) to lead 77 of their colleagues in sending a bicameral letter to Treasury Secretary Janet Yellen and Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki asking the department to delay implementation of the beneficial ownership reporting requirements for small businesses.

The reporting requirements put into place by the Corporate Transparency Act (CTA) are set to begin January 1, 2024. The letter requests that FinCEN delay the January 1, 2024, effective date for requirements by a minimum of one year which will give FinCEN adequate time to finalize all outstanding rulemakings. The additional time will enable regulators to finish the necessary regulatory framework and give both FinCEN and the 33.2 million small business owners across the country additional time to prepare for this new reporting regime.

“On behalf of the millions of small businesses in our states, we write to you today with significant concerns regarding the implementation of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA),” wrote the members. “The CTA requires most corporations, limited liability companies, and other entities created in or registered to do business in the United States to regularly report information about their beneficial owners—the persons who ultimately own or control the company, to the Financial Crimes Enforcement Network (FinCEN) beginning on January 1, 2024.”

“Unfortunately, FinCEN is woefully behind in educating small business owners and stakeholders of their new obligations under the CTA that begin in just a few short weeks,” the members continued. “In fact, a National Federation of Independent Business (NFIB) survey found that 90 percent of respondents were entirely unfamiliar with these reporting requirements. Even more concerning is that the CTA has civil and criminal penalties of up to $10,000 and two years of jail time for failure to comply.”

Other signers included Senators Mike Crapo (R-Idaho), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), JD Vance (R-Ohio), Katie Boyd Britt (R-Ala.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), John Thune (R-S.D.), John Barrasso (R-Wyo.), Joni Ernst (R-Iowa), Shelley Moore Capito (R-W.Va.), Jim Risch (R-Idaho), Ted Cruz (R-Texas), Jerry Moran (R-Kan.), Ron Johnson (R-Wis.), Mike Lee (R-Utah), Deb Fischer (R-Neb.), James Lankford (R-Okla.), Dan Sullivan (R-Alaska), Cindy Hyde-Smith (R-Miss.), Mike Braun (R-Ind.), Roger Marshall (R-Kan.), Ted Budd (R-N.C.) and Pete Ricketts (R-Neb.).

The letter was also signed by Representatives Frank Lucas (R-Okla.), Pete Sessions (R-Texas), Bill Posey (R-Fla.), Blaine Luetkemeyer (R-Mo.), Bill Huizenga (R-Mich.), Ann Wagner (R-Mo.), Andy Barr (R-Ky.), Roger Williams (R-Texas), French Hill (R-Ark.), Tom Emmer (R-Minn.), Barry Loudermilk (R-Ga.), Alexander Mooney (R-W.Va.), John Rose (R-Tenn.), Bryan Steil (R-Wisc.), William Timmons (R-S.C.), Ralph Norman (R-S.C.), Dan Meuser (R-Pa.), Scott Fitzgerald (R-Wis.), Andrew Garbarino (R-N.Y.), Young Kim (R-Calif.), Byron Donalds (R-Fla.), Mike Flood (R-Neb.), Michael Lawler (R-N.Y.), Zach Nunn (R-Iowa), Monica De La Cruz (R-Texas), Erin Houchin (R-Ind.), Andy Ogles (R-Tenn.), Randy Weber (R-Texas), Tracey Mann, R-Kan.), Brian Fitzpatrick (R-Pa.), Glenn Grothman (R-Wis.), Jake La Turner (R-Kan.), Chuck Edwards (R-N.C.), Brad Finstad (R-Minn.), Russell Fry (R-S.C.), John Moolenaar (R-Mich.), Chip Roy (R-Texas), Kelly Armstrong (R-N.D.), Sam Graves (R-Mo.), Ben Cline (R-Va.), Clay Higgins (R-La.), Rudy Yakym (R-Ind.), Diana Harshbarger (R-Tenn.), Virginia Foxx (R-N.C.), Bruce Westerman (R-Ark.), Maria Elvira Salazar (R-Fla.), Earl “Buddy” Carter (R-Ga.), Juan Ciscomani (R-Ariz.), Michael Guest (R-Miss.), Tom Tiffany (R-Wis.) and Brett Guthrie (R-Ky.).

Read the full letter HERE or below.

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Dear Secretary Yellen and Director Gacki:

On behalf of the millions of small businesses in our states, we write to you today with significant concerns regarding the implementation of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA). The CTA requires most corporations, limited liability companies, and other entities created in or registered to do business in the United States to regularly report information about their beneficial owners—the persons who ultimately own or control the company, to the Financial Crimes Enforcement Network (FinCEN) beginning on January 1, 2024.

While the goal of this new law is to target shell companies involved in illicit financial transactions, the CTA defines covered entities as those having 20 or fewer employees and under $5 million in revenue. In other words, not just shell companies, but nearly every small business in America.

Effective January 1st, small businesses will be required to provide the personal information of their beneficial owners – owners, board members, senior management, legal representation – and continue to monitor and report this information to FinCEN to ensure that it is current and up-to-date or they will face civil and criminal penalties. According to FinCEN estimates, more than 32 million separate reports are expected to be filed in 2024, with an additional five to six million filings each year thereafter.

Unfortunately, FinCEN is woefully behind in educating small business owners and stakeholders of their new obligations under the CTA that begin in just a few short weeks. In fact, a National Federation of Independent Business (NFIB) survey found that 90 percent of respondents were entirely unfamiliar with these reporting requirements. Even more concerning is that the CTA has civil and criminal penalties of up to $10,000 and two years of jail time for failure to comply.

This lack of awareness and education is alarming and must be addressed before the law is implemented. Dozens of organizations, representing millions of small businesses operating in every state and community across the country, have already publicly expressed their strong support for delaying implementation of the beneficial ownership information (BOI) reporting requirements by one year.

Further, FinCEN has yet to finalize the two final BOI rulemakings that are critical to protecting small businesses’ personal information. These include the “Access Rule,” and the “Customer Due Diligence Rule”. As you know, the Access Rule specifies the parameters around which the database can be accessed, the purposes for which the information can be used, and how the highly sensitive information will be protected. The Customer Due Diligence Rule is critical to make sure BOI would not result in a duplicative reporting regime for small businesses.

Therefore, we strongly request that FinCEN delay the January 1, 2024, effective date for all BOI requirements by a minimum of one year which will give FinCEN adequate time to finalize all outstanding rulemakings. Additionally, we believe a year’s delay will provide FinCEN and the business community with more time to educate small business owners of their new reporting obligations.

Thank you for your prompt attention to this important matter.

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Home for the Holidays
by Senate Majority Leader Casey Crabtree 

For generations, home ownership has been a goal that families plan for, budget for, and work hard to achieve. Thinking back to when Ashley and I were newlyweds and planning for a family, we dreamt of the day when we would establish roots in a community and buy a home. I’m sure like us, that was a milestone for many of you as well, especially around the holidays with memories of the first time putting up a Christmas tree, celebrating Christmas at home with a newborn, and sending out Christmas photos from in front of the fireplace.

South Dakota’s record population growth in recent years has been a boon for construction, but that demand has also put financial pressures on working families—especially first-time home buyers. Compile that with economic inflation due to Bidenomics and supply chain issues, it has become harder for some to achieve their version of the American dream. While the national economy is out of the hands of South Dakota’s Legislature, we have worked hard on local solutions to help reduce new home costs, reduce taxes, and strengthen the local economy for South Dakotans.

In 2022, when federal dollars came to South Dakota for COVID relief, the Legislature had a choice: return the dollars to the federal government and watch the feds turn around and give the money to other states or invest those dollars in impactful ways to advance the state and help our residents. Thanks to the efforts of many including local mayors, city councils, county commissions, Realtors, homebuilders, and ordinary taxpayers, the Legislature invested $200 million into the Workforce Housing Infrastructure Fund.

Through SB 41 in 2023 and HB 1033 in 2022, I was able to work with my colleagues to establish this fund to help communities reduce the costs of infrastructure needed for new homes throughout the entire state. Applications began earlier this year and dollars have already been awarded from our most rural areas to our biggest cities. So far, 57 projects have received investments leading to the development of more than 6,000 single-family lots and 3,700 multi-family units.

Innovative ideas like the Workforce Housing Infrastructure Fund are ways Republicans have taken a conservative, pro-responsible growth approach to helping our communities and our residents to incentivize economic strength instead of government handouts. This one-time investment will provide a return to the taxpayers for generations while reducing costs for new homeowners. It will help our kids and grandkids build the foundation of their families here. These are the South Dakotans leaping to a new phase of life to set deeper roots in our communities, lend their talents to local economies, and help raise the next generation of South Dakotans.

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As the battles over pipelines continue in South Dakota, and advocacy group spring up on either side, I had the opportunity this week to sit down with a true expert on pipeline safety.

Brigham McCown has seen pipelines from all sides, and is one of the parties who has provided information as part of the PUC hearing on the Summit Carbon pipeline.  Tremendously well versed on pipelines, Mc Cown is President & CEO of Noveau, a regulators consulting firm, founder of the non-partisan group Alliance for Innovation and Infrastructure, an adjunct Professor with Miami University teaching business and regulatory law, and a Senior Fellow at Hudson Institute.

But he’s not some wonky professor from the coast – he’s a Midwesterner himself, and a retired Naval officer. He’s worked his entire life in the transportation sector; first in the military, then as a regulatory attorney, later still as a federal regulator, and ultimately as a pipeline operator.

McCown was the first acting administrator and first deputy administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA), and served as an advisor to the 2016 presidential transition as a core member of the president-elect Donald Trump’s infrastructure policy and agency action teams.

In other words, he knows what he’s talking about inside/out when it comes to energy transportation. And he’s very big on pipelines, referring to them as “the unsung hero of the economy.”  As McCown told me, he’s had the opportunity to see it from all sides, and it’s an important topic.

So, with that introduction, here are 5 questions with pipeline expert Brigham McCown:

One of the special interest groups opposing the pipelines, Dakota Rural Action, tells its followers that “CCS (Carbon Capture & Sequestration) is a Dangerous and failed technology.” How old is this technology, and how long has this been used in practice?

The technology for carbon capture & sequestration has actually been around for 50 years, and is is improving all the time. In Europe, such as Germany, the UK, they’re very excited for this technology to capture and sequester carbon. In their view, if we have to change the way we do business, we can’t get from today’s types of energy production without intermediary steps, as we continue to rely on existing sources while we add new ones into the mix.

Carbon capture has implications for other industries besides ethanol, such as hooking up pipelines to large plants for steel and concrete. There’s worldwide recognition that the carbon capture technology is critical for the future.

Going back to some of the rhetoric, opponents also claim that people have been “gassed and poisoned in their own homes,” which comes off to me as a lot of fear-mongering.  Have there been any fatalities during all this time?

No one in the US, and I don’t believe anyone in the world, has ever died as a result of a broken CO2 pipeline.  There is a single pipeline break that opponents cite heavily, where there were people treated for exposure as a result of the break in Mississippi.  However, the pipeline was one that piped CO2 and Hydrogen Sulfide together, and the injuries were from the Hydrogen Sulfide. That’s not being done in this project.

The break in that pipeline was as a result of the pipeline operator not doing their geology correctly, as the ground shifted from heavy rainfall.

How safe are CO2 pipelines in comparison to another pipeline, such as natural gas?  In South Dakota,  I believe we have four natural gas pipelines, and I don’t believe they’ve received the same level of anti-pipeline sentiment or pushback that CO2 pipelines do. Why is a pipeline better than rail or truck?  Are those even practical for CO2?

For transporting materials, if a CO2 pipeline is a 1 out of 10 for a risk, trains are at a 15/10, and off the scale for the risk of something happening along the transport route. 

When looking at pipelines, you have those that transport HVL’s – Highly volatile liquids. That’s your natural gas, etcetera, that are explosive or flammable.  You don’t have those same issues with CO2 pipelines, and it’s considered safe. This is a product currently being released in the air as part of production. 

When there are issues with pipelines, it is typically because someone dug where they weren’t supposed to, and they hit a pipeline.  I’m proud to note that while at PHMSA, I introduced the national 811 system to help prevent pipeline damage.

Arguments over setbacks pushed by opponents arguments about safety are a big part of what is happening in South Dakota right now in terms of the Summit Project. Can you provide more background?

Setbacks are designed to keep people away from pipelines, not pipelines away from people.  When pipeline routes are planned, regulations and safety concerns dictate that when creating routes, planners avoid houses and buildings are much as you can.

As opponents go to counties to create ordinances try to dictate setbacks, claiming they are improving safety, they need to understand that county ordinances are going to fail, as it is settled law that only the Federal Government, such as through PHMSA and the Department of Transportation have exclusive jurisdiction when it comes to pipeline safety.  In Iowa, under 2 different cases, county ordinances were pre-empted, and it was specifically cited by the judge that counties can’t use the safety argument.

Any other thoughts when it comes to Carbon Capture Pipelines and the debates we’re currently having in South Dakota?

As I’ve taught in my US Energy Policy Class, pipelines are the unsung hero of the economy, and often taken for granted. In South Dakota, the Summit Pipeline will provide free money for counties, which can have a significant positive impact for their budget for rural counties with a limited tax base. 

People should understand that the world’s energy mix will change over time. The concern is to provide as much as we need, and to keep it affordable.  Ethanol has an important role to play. And more importantly, the Summit CC&S pipeline will extend the ramp for ethanol’s longevity, and keep it around for generations.

And there you have it. Thank you to Mr. McCown for a very informative and interesting discussion!

From The Hill late this afternoon, South Dakota Senator John Thune and others are calling out former President Trump’s attack on immigrants, where he claimed that immigrants are “poisoning the blood of our country”:

Asked about Trump’s controversial comments, which have drawn comparison to Nazi rhetoric before and during World War II, McConnell pointed out the hypocrisy of the remarks.

“It strikes me that didn’t bother him when he appointed Elaine Chao the secretary of Transportation,” he said.

and..

Other Senate Republicans have recoiled at Trump’s racially-charged language that immigrants are poisoning the country’s blood.

“My grandfather was an immigrant, so I don’t agree with that sentiment,” said Senate Republican Whip John Thune (S.D.). 

Read the entire story here.

Given that 9/10 of us or more had family members emigrate to our country at one time or another (Even President Trump), this statement might be one of the dumber things Trump has said. We can largely agree that illegal immigration is a problem that needs to be addressed by the government, but that kind of statement is not good for our nation.

Summit Carbon Solutions Signs 80 Percent of North Dakota Landowners 

Since implementing reroutes, the company surpasses previous ROW achievements

AMES, IA (December 19, 2023) — Summit Carbon Solutions announces today it has acquired 80% of the Right-of-Way (ROW) needed for its proposed carbon capture, transport, and storage project across North Dakota. This significant milestone comes after the Public Service Commission (PSC) initially denied the Company’s permit, prompting the company to undertake extensive rerouting.

“Our team is dedicated to working with landowners to address concerns and reach a mutually agreeable path,” said CEO Lee Blank. “This has led to a higher percentage of ROW acquisition, reflecting our commitment to progress and community partnership.”

Following the denial of Summit’s application by the PSC, Summit completed multiple reroutes in Burleigh, Emmons, and Dickey counties. Even considering the addition of 12 miles to the route, the Summit team has successfully acquired about 80% of the North Dakota route, and continues to work with landowners every day to reach a solution that works for both Summit and the landowner.

“Working with the Summit team was fair and mutually beneficial. This partnership is important to us, as it’s a good thing for our land now and in the years to come,” said Bruce Speich, a Milnor ND landowner. “Together, we’re making a big difference for the future of agriculture and energy in North Dakota.”

As Summit continues to listen to everyone’s input, and work with landowners, community members, and permitting bodies, the company remains committed to respectful and transparent engagement with all stakeholders. Summit believes that this project aligns with the long-term vision that North Dakota has for its energy and agricultural sectors.

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Summit Carbon Solutions is driving the future of agriculture by expanding economic opportunities for ethanol producers, strengthening the marketplace for Midwest-based farmers, and creating jobs. In developing the largest carbon capture and storage project in the world, the company seeks to connect industrial facilities via strategic infrastructure to store carbon dioxide safely and permanently in the Midwest United States. More information, visit: www.SummitCarbonSolutions.com.

 

At least one Minnehaha County Commissioner is calling out County Auditor Leah Anderson for her circus-like approach to elected office, as Minnehaha County Commissioner Joe Kippley calls out Anderson as “embarassing.”

A Minnehaha County commissioner criticized county Auditor Leah Anderson Tuesday, calling her behavior an embarrassment to the county.

Commissioner Joe Kippley was reacting to Anderson’s request two weeks ago for a pay increase amid news that Anderson allowed her supporters to secretly sit in on a phone call with staff from the Secretary of State’s Office and officials with Election Systems & Software, the company that is the vendor for the software used in vote tabulating machines.

and..

Kippley accused Anderson of stoking conspiracy theories about election integrity and “burning down” the institution from within. He said that other local election officials have “grave concerns” about next year’s elections given her performance in office.

Read the entire story here at the Dakota Scout.

Commissioners have the power of the purse, and should make sure they exercise it when it comes to Anderson’s antics…

The Madison Daily Leader has a story on their website noting that the recently retired Lake County Sheriff Tim Walburg is going to be a candidate for State House in District 8:

Walburg has dedicated decades of his life to serving his community. For 30 years, his law enforcement career included service as a correctional officer, deputy sheriff, assistant police chief and chief deputy. In 2012, he was appointed Lake County sheriff and retired earlier this year. Walburg also has 30 years of experience in emergency medical services, including 18 years at Madison Regional Health Systems, where he currently serves as a paramedic. Walburg has been active in the community, serving as a member of the Madison Housing and Redevelopment Commission for Lake, Miner and McCook counties, the Trinity Lutheran Church council and the Community Counseling board of directors.

Walburg has achieved success working with lawmakers in Pierre. He was an active member of the South Dakota Sheriffs Association, including serving as the association’s president in 2022.

Read the entire story here.

This expands both D8 races into primary elections, with both the Republican House and Senate seats now facing contested ballots on June 4, 2024:

District 8 State Senate:

Casey Crabtree (R – Incumbent)
Patty Shiery (R)

District 8 House:

Matt Wagner (R)
Rick Weible (R)
Tim Walburg (R)
Tim Reisch (R-Incumbent)

Stay tuned!

It appears that State Dems intend to try to run a stronger candidate in District 15 Senate than Linda Duba, as Jamie Smith announces he’s going to run after losing to Governor Noem:

The 52-year-old teacher-turned-realtor has stayed active within the South Dakota Democratic Party since falling short in his challenge against the governor during the last election cycle when Noem cruised to reelection. His decision to run for the Legislature again comes amid much uncertainty for District 15, a Democratic stranglehold in the last decade.

Read that in the Dakota Scout.

District 15 used to be a Democrat District.. but since redistricting, it is not. Now, it just depends on who steps forward on the side of the GOP to run.

At the very least, the opposition research is already done for the fall.

Attorney General Jackley Releases 2024 Legislative Package

PIERRE, S.D. – South Dakota Attorney General Marty Jackley announces that the Attorney General’s Office’s proposed legislative package for 2024 features five bills including separate legislation to regulate the drug Xylazine, add fentanyl protections, and make Artificial Intelligence Generated Child Pornography a felony crime.

“This is a proactive legislative package designed to protect South Dakotans, especially the most vulnerable,” said Attorney General Jackley. “We look forward to working with the Governor and legislators on securing passage of these bills this session.”

The bills are: 

1.    An Act to Regulate Xylazine.

The Attorney General’s Office and the state Department of Health will jointly introduce the bill. The draft legislation would criminalize the use and possession of Xylazine. The proposal also would add the drug to the state statute that criminalizes the possession of multiple controlled substances.

Because Xylazine is not an opioid, the use of Narcan by law enforcement is not effective in dealing with a person suffering from an overdose.

“Xylazine is important for veterinary uses and will remain available for those intended uses, but human consumption has led to overdoses and deaths,” said Attorney General Jackley. “This drug is dangerously being mixed with fentanyl by drug distributors.”

2.    An Act to regulate Artificial Intelligence (AI) generated child pornography. 

The proposal would revise certain definitions to the current child pornography laws and criminalizes the possession, manufacturing, or distributing of child pornography to include Artificial Intelligence (AI) generated image and videos. That would include “deepfake” images or videos of an actual child that have been manipulated to make it look like the subject is a child engaged in prohibited sexual acts and AI-generated images that do not depict any actual person but are created to look like a child engaged in prohibited sexual acts.

“Artificial Intelligence can do great things, but there is potential for serious harm that we are now experiencing with several investigations in South Dakota,” said Attorney General Jackley.  “That harm is real with ‘deepfakes’ that include the use of real children’s voices and photographs taken from social media to create computer generated child porn.”

3.    An Act to modify the sex offender registry.

South Dakota’s sex offender registry has three tiers of offenders. Tier 1 includes those offenders who have been convicted of having sexual contact with a person under legal age while being 21 years old or younger themselves.

One current state statute indicates that a Tier 1 sex offender registrant must remain on the sex offender registry for a minimum of 10 years while a second current statute sets the minimum time at five years. Attorney General Jackley recommends 10 years as the minimum amount of time for someone to remain on the registry before removal.

“This bill would strengthen the registry to protect the public and remove the confusion about how long a Tier 1 registrant must remain on the sex offender registry,” said the Attorney General.

4.    An Act to modify the membership of the open meetings commission.

The South Dakota Open Meetings Commission was created in 2004 to consider possible violations of the state’s open meeting law. The commission currently consists of five State’s Attorneys appointed by the Attorney General.

Current state law only allows for State’s Attorneys to serve on the commission. This revision would allow Deputy State’s Attorneys, who are equally qualified, to serve on the commission.

5. An Act to modify the 24/7 participation in fentanyl testing.

South Dakota’s 24/7 program is a voluntary offender pay program aimed at keeping participants sober and protecting the public. A participant in the 24/7 program who wears a drug patch currently pays a user fee of $50 for each drug patch that is attached.

The new patches cost more than that with the increased cost of fentanyl testing. This proposal would raise the fee to no more than $70 for each drug patch that is attached.

“Fentanyl use is a growing concern in South Dakota, and preventive testing is important to public health and safety,” said Attorney General Jackley.

All five bills will be filed with the state Legislative Research Council prior to the legislative session starting Jan. 9, 2024.

 

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