Law and legal issues

WASHINGTON - An advocacy group in Virginia is suing federal and state transportation officials over the Dulles Toll Road, arguing that drivers are being illegally charged tolls used to back bonds issued for a Dulles Metrorail project.

WASHINGTON - City finance officers are more pessimistic than they have been for at least 20 years about whether they can meet their cities' financial needs, according to a National League of Cities annual survey that will be released today.

SAN FRANCISCO - California Insurance Commissioner Steve Poizner said last week that he plans to go to court to block the state's plans to sell $1 billion of the State Compensation Insurance Fund's assets.

The Municipal Securities Rulemaking Board has issued a technical notice reminding dealers of the different types of yields they must disclose on trade confirmations for Build America Bonds with structures designed to attract investors in corporate securities.

BRADENTON, Fla. - Debt-laden, cash-strapped Jefferson County, Ala., may immediately have to spend more than $50 million because of Tuesday's ruling by the Alabama Supreme Court, which struck down the county's occupational tax.

SAN FRANCISCO - Vallejo, Calif.'s firefighters this week agreed to let the bankrupt San Francisco Bay Area city rip up their labor contract.

CHICAGO - Illinois' long-awaited $31 billion capital budget, signed into law by Gov. Pat Quinn last month, is built on illegal funding mechanisms, including an expansion of gaming that allegedly violates federal law and an unfair liquor tax increase that is higher on spirits than beer, according to a legal challenge filed this week.

BRADENTON, Fla. - JPMorgan has filed a counterclaim for $122 million plus expenses and legal fees in the federal case brought by the Alabama Public School and College Authority, which is seeking to void a swap option it entered with the investment banking firm.

WASHINGTON - Connecticut Attorney General Richard Blumenthal is waging a court battle to get Financial Securities Assurance Inc. and its holding company to turn over 600 hours of audio recordings already released to the Securities and Exchange Commission and Justice Department that he claims contain "a rich source of evidence of potential violations" of state antitrust laws.

WASHINGTON - Securities and Exchange Commission chairman Mary Schapiro's current annual salary of $162,900 pales in comparison to her previous one as well as the salaries of the top officials of the self-regulatory organizations and industry trade groups whose members are regulated by the SEC.

BRADENTON, Fla. — The Alabama Supreme Court yesterday upheld a local judge’s ruling that struck down Jefferson County’s occupational tax.

The American Public Power Association is urging the Senate Finance Committee to either remove or significantly increase the $800 million cap on clean renewable energy bonds and ease other tax law restrictions in any tax legislation that accompanies climate and energy bills.

BRADENTON, Fla. - Moody's Investors Service on Friday continued its negative outlook on Jefferson County, Ala.'s Caa1 general obligation rating despite a recently passed bill essentially curing legal deficiencies surrounding the county's occupational tax.

CHICAGO - Moody's Investors Service this week hit Detroit with its second downgrade so far this year, pushing the beleaguered city's debt deeper into junk-bond territory and warning of further fiscal and economic challenges on the horizon.

The Municipal Securities Rulemaking Board implemented several enhancements that will make it easier for market participants to submit continuing disclosure documents to its EMMA system.

States and local governments are lodging strong opposition to a Municipal Securities Rulemaking Board proposal that would specially designate issuers that voluntarily agree to file annual financial information to the board's EMMA system within 120 days of the end of their fiscal years.

WASHINGTON - The Securities Industry and Financial Markets Association is concerned that an interpretive release the Municipal Securities Rulemaking Board filed with the Securities and Exchange Commission last month may prove unreasonably burdensome for dealers and make them less willing to enter into trades with retail customers.

BRADENTON, Fla. — The alleged pay-to-play scheme in connection with Jefferson County, Ala.'s sewer bonds and swaps unraveled further yesterday when Montgomery-based bond dealer William Blount pleaded guilty in a plea agreement to one count each of bribery and conspiracy.

Legislation pending in Congress would allow state and local governments to use tax-exempt private-activity bonds to finance building or refurbishing grocery stores and other fresh produce businesses in 20 cities with "food deserts."

A senior citizen housing facility in Orange County, N.Y., has defaulted on principal and interest payments, according to a material event notice.