Law and legal issues

Senate Finance Committee chair Orrin Hatch, R-Utah, on Thursday called for Democrats and the administration to be more transparent and realistic, after proposing “unworkable” solutions to Puerto Rico’s crisis as Congress continues to work toward bipartisan legislation for the commonwealth.

A Financial Industry Regulatory Authority arbitration panel this week approved the removal of a complaint about Puerto Rico bonds from a financial advisor’s record after concluding the advisor kept the investor adequately informed of the risks posed by the bonds throughout their seven-year relationship.

Republican lawmakers from both the Senate and House introduced legislation on Thursday that would make the courts, rather than federal agencies, responsible for interpreting and determining the reasonableness of federal rules.

Detroit Public Schools got some positive news on Wednesday by way of nearly $50 million of emergency funding that cleared a House committee Wednesday.

Ferguson and the U.S. Justice Department will soon seek court approval on a consent agreement that outlines municipal court and policing reforms.

In a financial mess that spans the Atlantic, Louisiana affiliates of a German wood pellet processing firm filed for Chapter 11 bankruptcy, potentially leaving bond investors on the hook for a project poised to receive millions in state incentives.

The collapse of the Port St. Lucie, Fla.-based Vaccine and Gene Therapy Institute prompted Moody's Investors Service to review the city’s bond ratings for possible downgrade.

Senate Democrats on Tuesday introduced another bill that would give Puerto Rico broad debt restructuring capabilities.

Presidential candidate Sen. Bernie Sanders released a plan for Puerto Rico on Monday that proposes extending Chapter 9 bankruptcy protections to the commonwealth’s municipalities and contains several healthcare and environmental initiatives.

Jefferson County, Ala., said in a notice Monday it paid $5.37 million earlier this month to the Internal Revenue Service for investing some of its 2004 school warrants at interest rates higher than allowed by federal tax laws.

Sen. Bob Menendez, D-N.J., and several other Senate Democrats introduced two bills on Monday to give Puerto Rico broad restructuring powers as well as better federal tax and healthcare treatment, but the legislative package is likely to face stiff resistance in Congress where many Republicans have opposed territory-wide debt adjustments.

The Lamar Consolidated Independent School District near Houston has filed a disclosure notice about the case for investors in the district’s bonds.

A settlement over back pay for the city’s police and fire unions is a major step to financial recovery in Scranton, Pa., says Mayor Bill Courtright.

The U.S. Supreme Court’s Feb. 29 decision to not hear an appeal by New Jersey labor groups challenging Gov. Chris Christie’s authority to cut pension payments is a credit positive for the Garden State since it retains an ability to annually determine contribution levels, according to Moody’s Investors Service.

A bill to give New Jersey increased power over Atlantic City finances advanced in the State Senate.

Detroit Public Schools may run out of funds to meet payroll after April 8, the district’s new transition leader told state lawmakers who are being asked to approve $50 million in emergency aid.

A bribery investigation of bond-funded projects in the Lamar Consolidated Independent School District has led to indictments of a construction manager, a school board member and a commissioner for the city of Richmond, Texas.

In a case that could prove pivotal to New Jersey’s future credit rating, the state’s Supreme Court will hear oral arguments on March 14 to determine if annual cost of living adjustments to retirees' pension benefits need to be restored.

Pennsylvania’s budget impasse may force the Red Lion Area School District into bankruptcy, its superintendent said.

Rhode Island Commerce Corp., whose predecessor agency the SEC charged with defrauding investors in the 38 Studios bond fiasco, says the filing parallels its own clawback attempts.