1 00:00:00,080 --> 00:00:02,840 Speaker 1: Now his time for our daily Bloomberg Law Brief, exploring 2 00:00:02,920 --> 00:00:05,560 Speaker 1: legal issues in the news. And Today, Bloomberg Law host 3 00:00:05,600 --> 00:00:09,320 Speaker 1: Doing Grasso discusses a ruling by the South Dakota Supreme 4 00:00:09,360 --> 00:00:12,840 Speaker 1: Court that company selling goods on the internet can't be 5 00:00:12,960 --> 00:00:15,120 Speaker 1: forced to collect the states four and a half percent 6 00:00:15,200 --> 00:00:18,800 Speaker 1: tax on purchases. She speaks with Kirk Stark, a professor 7 00:00:18,840 --> 00:00:21,560 Speaker 1: at U c l A Law School. Kirk, the state 8 00:00:21,680 --> 00:00:25,680 Speaker 1: expected this defeat. Tell us why the South Dakota legislature 9 00:00:25,760 --> 00:00:28,800 Speaker 1: passed the law so that the state's highest court could 10 00:00:28,840 --> 00:00:31,960 Speaker 1: quickly reject it. Well, they're hoping for a consideration in 11 00:00:32,000 --> 00:00:35,800 Speaker 1: the Supreme Court of the Quill decision from that's the 12 00:00:35,880 --> 00:00:40,280 Speaker 1: decision that prohibits states from imposing a sales tax obligation 13 00:00:41,000 --> 00:00:45,720 Speaker 1: collection obligation on vendors without a physical presence in the state. 14 00:00:46,320 --> 00:00:50,879 Speaker 1: The South Dakota opinion was offered by Chief Justice David Gilbertson, 15 00:00:51,159 --> 00:00:54,040 Speaker 1: and so he acknowledged the state's interests, but he said 16 00:00:54,040 --> 00:00:59,000 Speaker 1: he was bound by that ruling. What makes them think, 17 00:00:59,160 --> 00:01:03,440 Speaker 1: Why is South Dakota painning its hopes on a concurrence 18 00:01:03,520 --> 00:01:07,399 Speaker 1: written by Justice Anthony Kennedy. Right, So there's a case 19 00:01:07,400 --> 00:01:09,440 Speaker 1: out of Colorado from a couple of years ago, the 20 00:01:09,520 --> 00:01:12,720 Speaker 1: d M A against Brawl case that had to do 21 00:01:12,800 --> 00:01:17,840 Speaker 1: with Colorado's sales tax information reporting requirements, and in a 22 00:01:17,920 --> 00:01:24,760 Speaker 1: concurring opinion, Justice Kennedy said that this Quill case from was, 23 00:01:25,200 --> 00:01:30,400 Speaker 1: you know, a questionable decision even in and it's now 24 00:01:30,480 --> 00:01:33,800 Speaker 1: harming states to a as the way he put it, 25 00:01:33,880 --> 00:01:36,520 Speaker 1: a degree far greater than could have been anticipated at 26 00:01:36,560 --> 00:01:42,000 Speaker 1: that time. So he invited the legal profession to work 27 00:01:42,120 --> 00:01:44,720 Speaker 1: up a case that the U. S. Supreme Court could 28 00:01:44,760 --> 00:01:48,400 Speaker 1: then take that would give the Court an opportunity to 29 00:01:48,480 --> 00:01:52,360 Speaker 1: reconsider the Quill case squarely. Will you explain the Quill 30 00:01:52,440 --> 00:01:57,120 Speaker 1: decision a little more and how the commerce clause works briefly? 31 00:01:57,640 --> 00:02:02,200 Speaker 1: The notion here is that the imposition of a sales 32 00:02:02,240 --> 00:02:07,720 Speaker 1: tax collection obligation on out of state vendors that don't 33 00:02:07,760 --> 00:02:11,360 Speaker 1: have any physical presence in the state is an impermissible 34 00:02:11,480 --> 00:02:17,079 Speaker 1: interference with interstate commerce. No Congress always has the right 35 00:02:17,280 --> 00:02:22,440 Speaker 1: to intervene and enact its own regulation of interstate commerce. 36 00:02:22,520 --> 00:02:25,160 Speaker 1: But what the Quill decision is, it's almost sort of 37 00:02:25,200 --> 00:02:28,760 Speaker 1: like a placeholder ruling that says we're not going to 38 00:02:28,919 --> 00:02:33,560 Speaker 1: let the states do this unless and Intel Congress and 39 00:02:33,680 --> 00:02:38,280 Speaker 1: acts legislation that says otherwise. As Kirk Stark, a professor 40 00:02:38,320 --> 00:02:40,519 Speaker 1: at u c l A Law School, speaking with Bloomberg 41 00:02:40,600 --> 00:02:42,720 Speaker 1: Law host Jon Gross So you can listen to Bloomberg 42 00:02:42,760 --> 00:02:45,480 Speaker 1: Law weekdays at one pm Wall Street Time here on 43 00:02:45,560 --> 00:02:48,960 Speaker 1: Bloomberg Radio and among the top legal stories from Bloomberg Law. 44 00:02:49,000 --> 00:02:51,920 Speaker 1: President Trump's former campaign manager is said to oh his 45 00:02:52,000 --> 00:02:55,920 Speaker 1: old law firm substantial sums for legal fees. That's according 46 00:02:55,960 --> 00:02:59,160 Speaker 1: to a Wall Street Journal report on Paul Mantaport, mounta 47 00:02:59,200 --> 00:03:02,360 Speaker 1: Fort is essential figure in investigations of Russian medaling in 48 00:03:02,400 --> 00:03:06,160 Speaker 1: the presidential election. He's been represented by his former law firm, 49 00:03:06,320 --> 00:03:09,919 Speaker 1: Wilmer Hale. Neither Mantaport nor the law firm Mark Commiting. 50 00:03:10,880 --> 00:03:13,440 Speaker 1: That's this morning's Bloomberg Law Brief. You can find more 51 00:03:13,520 --> 00:03:16,959 Speaker 1: legal news at Bloomberg Law dot com and Bloomberg b 52 00:03:17,240 --> 00:03:20,560 Speaker 1: NA dot com. Attorneys will find exceptional legal research and 53 00:03:20,639 --> 00:03:24,480 Speaker 1: business development tools there as well. Visit Bloomberg Law dot 54 00:03:24,520 --> 00:03:28,240 Speaker 1: com and Bloomberg b NA dot com for more information.