Far West

The House Financial Services Committee is expected to begin voting today on derivatives and other regulatory reform legislation. The Regional Bond Dealers Association is urging committee chairman Barney Frank, D-Mass., to ensure the derivatives bill will allow state and local governments to enter into over-the-counter derivatives contracts, regardless of their size or sophistication.

The Senate Finance Committee yesterday voted 14 to 9 to approve its version of a health care reform package, which would place increased reporting requirements on bond-financed and other nonprofit 501(c)(3) hospitals.

Members of Congress and an administration official said last week that the empowerment zone program, which offers tax incentives to attract private businesses to distressed communities, should be extended beyond its Dec. 31 deadline. But some business leaders said parts of the program are overly restrictive and could be improved.

The House Financial Services Committee is scheduled today to begin debating the first two pieces of regulatory reform, and its vote will set a critical marker before the chamber’s final negotiations.

SAN FRANCISCO — California Gov. Arnold Schwarzenegger backed off on a blanket threat to veto more than 700 bills if he didn’t get a water infrastructure deal, taking action on all of them Sunday, his deadline to act on bills the Legislature approved in its 2009 regular session.

The Federal Railroad Administration was so swamped with applications for the $8 billion of high-speed rail funding authorized by the American Recovery and Reinvestment Act that it is delaying until the winter its announcement of the grant winners.

SAN FRANCISCO — The Sierra Kings Health District in Reedley, Calif., last week filed for Chapter 9 municipal bankruptcy protection after discovering that the proceeds of bond sales in 2006 and 2007 were misused.

SAN FRANCISCO — San Bernardino County, California’s fifth-most populous county, plans to refund $174.4 million of outstanding variable-rate demand obligations after it lost liquidity support for the debt and Moody’s Investors Service put its ratings on negative watch.

WASHINGTON — State and local governments and development finance agencies that can currently issue bonds to finance clean energy could soon be able to make federally guaranteed loans to finance the projects.

PHILADELPHIA — The Securities and Exchange Commission cannot set up a corporate-style disclosure regime for the municipal market under its rules because it does not have the statutory authority to do so, the SEC’s muni chief told financial advisers here yesterday.