Washington

Jury selection began Tuesday in a federal class action lawsuit accusing the former Morgan Keegan & Co. Inc. of securities fraud for its role in underwriting $39 million of defaulted bonds for a failed artificial sweetener plant in Moberly, Mo.

Sen. Dean Heller, R-Nev., has introduced a bill that would make the deduction for state and local sales taxes permanent, while Rep. Bob Goodlatte, R-Va., has introduced a bill that would make the moratorium on taxing Internet access permanent.

The Internal Revenue Service has announced a simplified process for issuers that have loaned proceeds of qualified 501(c)(3) bonds to borrowers that automatically lost their tax-exempt status for failing to file annual returns or notices for three consecutive years, but have subsequently received reinstatement of their tax-exempt status from the IRS.

New IBTTA president Javier Rodriguez seeks more toll options to fund investments in transportation infrastructure.

Municipal Securities Rulemaking Board revenues totaled $32 million in fiscal year 2014, a 19% drop from the previous year, the board's annual report revealed.

Development of a new multiyear highway bill with more funding for state transportation projects is main focus of a key Senate committee.

Michigan Democrat Rep. John Conyers has introduced legislation that would make it much harder for municipalities to restructure their debt through bankruptcy.

Congress needs to preserve the tax exemption of municipal bonds if it's serious about supporting infrastructure, National Governors Association vice president and Utah Gov. Gary Herbert said.

MBTA completes its funding for a $2.3 billion light rail project in Boston with a $996 million federal grant.

The Internal Revenue Service has closed a targeted audit of Philadelphia's series 2010A water and wastewater revenue refunding bonds without making any changes to the bonds' tax-exempt status.

Experts expect a busy enforcement year in the municipal market.

Market participants can expect increased municipal securities enforcement during 2015, a year that may bring resolution of the Securities and Exchange Commission's self-reporting initiative as well as greater emphasis on individual liability and secondary market disclosures.

A lawsuit challenging the Securities and Exchange Commission's investment adviser pay-to-play rule is moving forward in a D.C. federal appeals court, with implications for muni market pay-to-play restrictions hanging in the balance.

Missouri's proposed $2 billion upgrade of I-70 could be funded by tolling the 200-mile link between Kansas City and St. Louis.

Market participants forecast the regulatory agenda

This year will bring more municipal advisor and secondary market transparency regulation, while a newly Republican-controlled Senate could lead Congress to scrutinize and possibly ease existing laws and rules.

Lack of action on federal transportation funding means growth in states' use of public-private partnerships to build, fund, and operate large projects.

The Central Puget Sound Regional Transit Authority in Washington received a negative outlook from Standard & Poor's on its outstanding "parity" lien obligations, but the authority, known as Sound Transit, retained its AAA rating.

States on the whole will see a slight increase in their new capacity to issue private-activity bonds in 2015.

Congress is facing a big challenge in 2015 in reaching agreement on how to pay for transportation infrastructure spending.