Law and legal issues

CHICAGO — As the nonprofit health care world keenly awaits the U.S. Supreme Court's ruling on the new federal health care law, credit analysts warn that a ruling striking down the individual mandate while maintaining the rest of the law would deliver a blow to the already-suffering sector.

A federal judge last week approved the Metropolitan St. Louis Sewer District’s $2.7 billion consent decree with federal authorities, bringing to a close a nearly five-year old lawsuit over clean-water violations.

A circuit court judge last week declared unconstitutional a 2011 Illinois law requiring out-of-state companies to collect online sales taxes.

California lawmakers are considering a new bill that would change the state's four-month old municipal bankruptcy law, reigniting a battle between public employee unions and local governments.

Defense attorneys for three former banking executives accused of rigging municipal bond bids sought a mistrial Monday on the grounds that one government witness did not return to continue cross-examination.

The attorney representing the Harrisburg, Pa., City Council in its bankruptcy appeal filed a counterclaim Monday against the state, mayor and Dauphin County, all which sought damages against him two weeks ago.

Witnesses representing public power providers who testified before the House Committee on Natural Resources Thursday expressed grave concerns that Department of Energy proposals would increase costs and fundamentally alter the public power market.

A Sacramento Superior Court judge ruled on Wednesday that California Controller John Chiang does not have the authority to dock lawmakers pay for late budgets.

A defense attorney in the municipal bond bid-rigging trial in New York on Thursday interrogated a government witness about his memory, and even his drinking.

A federal judge in Birmingham Monday said that a portion of Jefferson County’s sewer system could be removed from the county’s 1996 consent decree for violations of the Clean Water Act.

Mayor Angel Taveras' $638.4 million budget proposal for distressed Providence, R.I., hinges on two large variables: court or union approval of pension overhaul at the local level and greater contributions in lieu of taxes from nonprofit agencies.

Federal Bureau of Investigation agents last week arrested Dixon, Ill., Comptroller Rita Crundwell for allegedly defrauding the city of more than $3.2 million in public funds since last fall and misappropriating $30 million since 2006, federal prosecutors in Chicago announced.

A California state court judge on Thursday appointed a receiver to manage the transfer of three parking garages in Stockton from city control to Wells Fargo NA, the trustee on $30 million of defaulted bonds.

Over the last four years there has been an "embryonic trend" of municipal bankruptcies, in the words of Arent Fox partner David Dubrow. These include Vallejo, Calif., Central Falls, R.I., Harrisburg, Pa., and Jefferson County, Ala.

Municipal bond issuers now may be more open to declaring bankruptcy and defaulting on loan payments, panelists said at the National Federation of Municipal Analysts annual meeting here Thursday.

The tale of the tape continued Wednesday in the municipal bond bid-rigging trial in Manhattan, as prosecutors, interspersing audio tapes and transcripts with bid documents, called to the stand another former employee of brokerage CDR Financial Services, seeking to establish a pattern of fraud by three former executives of General Electric Co. subsidiaries.

U.S. Bank NA on Tuesday notified holders of the Connector 2000 Association Inc.’s 2011 toll revenue term bonds that an exchange of bonds will take place around May 31.

Tampa Bay Water, a regional supplier for three counties on the west coast of Florida, is expected to ask for a new trial after losing a $100 million civil suit last week for what it claimed was a faulty reservoir design, according to published reports.

The federal judge overseeing the Jefferson County, Ala., bankruptcy case has set deadlines for creditors to file proof of claims.

The federal prosecutors in a municipal bond bid-rigging trial that began in New York accused three executives of fraud that cost cities and towns, and the IRS, millions of dollars.