Law and legal issues

CHICAGO — The Indiana Senate could vote as early as Tuesday on a bill that would allow fiscally distressed cities and towns to file for bankruptcy.

WASHINGTON — The Municipal Securities Rulemaking Board is exploring state public pension laws to see if there are common types of disclosures they could encourage issuers to submit to its Electronic Municipal Market Access site, MSRB officials told reporters Monday.

BRADENTON, Fla. — Flush with cash, Florida’s Citizens Property Insurance Corp. has increased the number of outside managers it uses to invest bond proceeds and other funds.

SAN FRANCISCO — Union workers are poised to fight a bankruptcy-exit proposal from Vallejo that has the California city paying them as little as 10 cents on the dollar.

CHICAGO — Allowing a lower court ruling invalidating Illinois’ $31 billion capital budget to take effect would “wreak havoc” on state operations and finances, the attorney general’s office warned Friday in its request that the state Supreme Court stay the decision.

SAN FRANCISCO — Victorville is in the hot seat.The city in Southern California’s high desert is facing a Securities and Exchange Commission probe into bond sales, a grand jury investigation into its finances, and inquiries from neighboring communities about its curious bond-financing practices.

CHICAGO — Chicago has backed off from its plan to sell $1.1 billion of O’Hare International Airport bonds next week as it fights a lawsuit filed by the airport’s two largest carriers challenging its authority to finish work on an $8 billion expansion plan without airline consent.

WASHINGTON — At least two House panels plan to hold hearings on states’ fiscal problems and potential solutions, including whether states should be allowed to file for bankruptcy protection.

CHICAGO — Three weeks after the Federal Trade Commission sued Promedica Health System, arguing it violated antitrust rules, the Ohio-based hospital chain is keeping a $249 million new-money deal on hold.

Richmond won an important legal battle related to a municipality’s right to fire union workers.

SAN FRANCISCO — Vallejo, Calif., has reached a tentative agreement with Union Bank that pays the bankrupt city’s largest creditor roughly 60 cents on the dollar.

West Virginia Gov. Earl Ray Tomblin issued a proclamation last week setting a date for the next governor’s election to be on Oct. 4, fulfilling a requirement by the state Supreme Court of Appeals.

CHICAGO — In a move prompted by the Securities and Exchange Commission’s heightened scrutiny of pension-disclosure practices, Illinois unveiled overhauled reporting standards in its latest bond offering statement that also announced a rise in unfunded pension liabilities to $75.7 billion and revealed a pending SEC inquiry.

ALAMEDA, Calif. — The primary lobbying group for municipal underwriters in California is under investigation by the Financial Industry Regulatory Authority.

The Dodd-Frank Wall Street Reform and Consumer Protection Act faces a “serious threat” and “potential undoing” ­under Republican-proposed spending cuts, House Democrats warned Tuesday.

Chicago mayoral hopeful Rahm Emanuel received word Tuesday from the Illinois Supreme Court that it will hear his appeal of a state appellate panel decision removing him from the Feb. 22 ballot because he failed residency requirements.

WASHINGTON — California Treasurer Bill Lockyer on Monday warned that discussions about states going bankrupt are misguided and lead to higher interest rates on state debt that hurts both issuers and investors.

CHICAGO — Attorneys for Chicago and O’Hare International Airport’s two largest carriers will return to court next month as a standoff over the final phase of an $8 billion expansion plan continues.

The Securities and Exchange Commission reportedly is seeking documents from the Massachusetts’ Treasury Department in reference to its relationship with Goldman, Sachs & Co.

SAN FRANCISCO — Pension liabilities have tripled from a year ago due to investment losses, siphoning scarce funds from San Francisco at a time when elected officials are already facing a $360 million budget shortfall.