Law and legal issues

A New York State appellate court has reversed a lower court and upheld the constitutionality of the Metropolitan Transportation Authority's payroll mobility tax.

Rhode Island's $8.2 billion budget, including a $2.5 million bond payment for 38 Studios debt, is headed for Gov. Lincoln Chafee's office after Senate approval.

Arkansas ex-treasurer Martha Shoffner pleaded not guilty to federal bribery charges at an arraignment in Little Rock.

Rhode Island's House approved an $8.2 billion state budget, including an initial $2.5 million bond payment related to failed video-game company 38 Studios.

Michigan Gov. Rick Snyder appointed a former human resources director at the city of Pontiac to serve as emergency manager of Hamtramck, which now enters its second state takeover in less than 10 years.

Settlements with most of the creditors holding Jefferson County, Ala.'s $3.1 billion of defaulted sewer debt should help pave the way for a smooth Chapter 9 exit.

After a massive restructuring of Pontiac, Mich., emergency manager Louis "Bud" Schimmel says he's ready to retire after tackling one last obstacle: the city's retiree health care debt.

National Public Finance Guarantee confirmed that Weil, Gotshal & Manges was hired to replace Winston & Strawn as its counsel in the Stockton and San Bernardino bankruptcy proceedings.

An Arkansas legislative panel approved a full review of state investments by former Treasurer Martha Shoffner, facing federal charges of abusing her office.

The sentencing dates of more convicted municipal bond bid-riggers have been pushed back, according to documents filed with the U.S. district Courts for the Southern District of New York and Western District of North Carolina, as prosecutors seek stiffer penalties for price-fixing of investment contracts.

Detroit's restructuring plan illustrates how unfunded pension and health care liabilities threaten bond insurers, Moody's Investors Service said in a comment Monday.

Oklahoma is seeking legal assurance that a state university bond program is constitutional.

A lawsuit delaying Kenner, La.'s plans to issue $47 million of revenue bonds may add $2 million to the city's interest costs.

Texas Gov. Rick Perry's veto of funding for the unit that prosecutes state corruption will not derail an investigation of a case that could involve the governor's office, the lead investigator said.

Jefferson County, Ala., has negotiated another agreement to settle payment on $138 million of defaulted sewer debt held by liquidity banks.

Texas District Judge John Dietz has set a Jan. 6 trial date for reopening the lawsuit challenging the state's school finance system.

The 11th Circuit Court of Appeals has postponed oral arguments on several issues relating to Jefferson County, Ala.'s bankruptcy case until Jan. 15.

Detroit emergency manager Kevyn Orr ordered an inspection of all the city employee benefit programs for possible corruption or mismanagement.

The California Public Employees' Retirement System was successful in its efforts to have Winston & Strawn, the law firm representing National Public Finance Guarantee Corp. disqualified from San Bernardino's bankruptcy case, according to court documents.

Rhode Island's top House Republican Brian Newberry argued in a letter to colleagues that the state should not pay back the 38 Studios bonds, despite Moody's threat of a GO downgrade.