Highlights
- MSRB Rule D-15 Defining the Term Sophisticated Municipal Market Professional: SIFMA Comment Letter
- Regulators Keeping an Eye on Post-Pricing Bond Trade Ups.
- Tax-Free Energy Bonds Draw Billions From Yield-Hungry Investors.
- GASB 103 Implementation: What You Need to Know – GFOA eLearning Course
- NFMA Annual Conference Registration is Open!
- Safer Human Medicine Inc. v. Decatur-County-Bainbridge Industrial Development Authority – In appeal of judicially-approved bond validation, District Court approves State’s petition to intervene by Permission (but not by Right), holding that the state claimed an interest relating to the underlying property that would be impaired or impeded by disposition of the action and that no existing party could adequately represent that interest.
- And Finally, Insult To Injury – Nuclear Edition is brought to us by A Better Richland v. Chilton, in which the bar is set very low, as it’s impossible to envision a Worser Richland. Richland is one of the Tri-Cities (aka, the Dry Shitties) in Eastern Washington State. Richland is where the plutonium used on the Nagasaki bomb was produced/enriched. Richland’s football team is, infamously, The Bombers. They sport a mushroom cloud on their helmets. Their chant is, Nuke ‘Em! We are not making this up. It has been suggested that this is in truly poor taste, but remains true to this day. Nagasaki has suggested a change to The Mass-Murdering Shitheads. Negotiations currently at an impasse. Suppose they could keep the chant, regardless.
- GASB Statement No. 105, Subsequent Events: What State and Local Government Financial Leaders Need to Know
- Consulting Firm Settles SEC Charges for Unregistered Municipal Advisory Activity: Norton Rose Fulbright
- MSRB Advances Rule Modernization and Market Transparency Initiatives and Discusses Strategic Plan at Quarterly Board Meeting.
- Climate Change Risk Index and Municipal Bond Disclosures of United States Drinking Water Utilities.
- Map Reveals America’s Most Vulnerable Drinking Water Utilities.
- ACA Subsidy Rollback: A Broader Credit Story for Public Finance – Kroll
- Longer Dated Muni Bonds See Uptick in Demand on Elevated Yields.
- Kestrel Launches Blue Bond Methodology for the U.S. Municipal Bond Market.
- And Finally, Clear and Present Pre-Existing Condition is brought to us this week by Arias v. County of Bergen, in which “On April 24, 2021, plaintiff Andris Arias fell into a pothole on a paved pedestrian path while rollerblading in Van Saun Park. Arias asserts that her fall caused a permanent and debilitating neurological condition (complex regional pain syndrome), as well as spinal injuries requiring surgery.” Uh, are we sure about the causation here, as it has always been our understanding that rollerblading in public occurs only when on has previously experienced a, “permanent and debilitating neurological condition” and is a sure sign of such. While public rollerblading in now is likely out of the question, let’s hope she soon recovers, so that she can pursue her other avocation as a public mime.
- MSRB Seeks Comment on Draft Amendments to MSRB Rule G-27 on Dealer Supervision.
- IRS Rules on Tax-Exempt Status of Alaska Railroad Bonds.
- KPMG: Alaska Railroad Corporation Bonds for LNG Project Exempt from Private Activity Bond Requirements.
- Government Accounting Intensive Series: GFOA eLearning Course
- Muni Bonds Start Year Strong as ‘January Effect‘ Emerges
- Led by Texas, New Hampshire, U.S. States Race to Prove They Can Put Bitcoin on Public Balance Sheet.
- Texas Becomes First State to Purchase Bitcoin, Allocating $5 Million to Strategic Reserve
- And Finally, John D. Rockefeller Gets Some Sun is brought to us this week by Cherry Grove Beach Gear, LLC v. City of North Myrtle Beach, in which the Fourth District Court of Appeals issued its opinion in what is certainly the most important antitrust case of since AT&T. We refer, of course, to the above-entitled action. Steel? Oil? Railroads? Been done. We refer, of course, to beach umbrellas, and the distribution thereof. Lina!
- S&P U.S. Public Finance 2026 Outlook: A Mix Of Stability And Rising Vulnerabilities
- Nature: Physical Climate Risk Creates Challenges and Opportunities in US Municipal Finance
- Fitch Ratings Publishes Exposure Draft on Climate Vulnerability Signals for USPF Criteria.
- Strained US Public Schools Sell Most Muni Bonds in Over a Decade.
- Appeals Court Shoots Down California Water Managers’ Plan to Finance Delta Tunnel.
- UMB Bank, N.A. v. Monson, et al. – Following an event of default, District Court holds that Guarantors of revenue bonds had stated a valid affirmative defense that Trustee had breached the duty of good faith in the Guaranty Agreement by, inter alia, failing to transfer the remaining balance of the Project Fund into the Redemption Account, creating the deficit in the Debt Service Reserve Fund that triggered Trustee’s guaranty claim against Guarantors.
- And Finally, That’s the Way the Cookie Bounces is brought to us this week by Platt v. Mansfield, in which a parent testifying at a school board meeting had this to say, “…this School System continues to play Russian roulette daily with our children with their heads buried in the sand bowing down to the ever-mighty policies and procedures of a heartless, soulless administrative system machine. How many ticking time bombs are there…” While not technically mixed-metaphors, we can all agree that they’re certainly Vitamixed metaphors.
- The Quicker Picker Upper – Private Business Use Absorbed by Qualified Equity: Squire Patton Boggs
- S&P U.S. Local Governments 2026 Outlook: Local Governments Show Resilience, K-12 School Districts Are On Shaky Ground
- SIFMA US Economic Survey.
- How ‘Super Roofs’ Reward Insurers, Cat Bond Investors and Homeowners.
- Registration Open for GFOA’s 120th Annual Conference.
- GFOA 2025 Annual Governmental GAAP Update December Encore.
- And Finally, I Saw A Guy Off In The Distance Once And I Did Not Like It is brought to us this week by Erda Community Association, Inc. v. Baugh, in which a group of citizens petitioned to form their own town in order to, “stop the onslaught of high-density development projects.” Uh, we’ve spent a considerable amount of time in Utah. Not a lot of onslaughts to be seen. High-density development projects (literally) thin on the ground. In addition, if the neighboring municipality is attempting to annex 5,900 of your acres, you might just have a few to spare. Utah currently has a population density of 40 people/acre. Most of which are highly concentrated in the SLC area. Tokyo = 14,00 per sq. kilometer. There’s a legitimate onslaught As Woody sang, “This land is my land.” Or something to that effect.
- And as for Griswold v. City of Homer, we fully support litigiousness from anyone named, Griswold. Who will speak for Walrus reproductive rights? Who?
- IRS Releases Complete Revision of IRM 3.12.26, Tax Exempt Bond Error Resolution Procedures
- FINRA Sanctions Firm for Custody and Transaction Confirmation Deficiencies: Norton Rose Fulbright
- Vianello v. City of Prairie Village, Kansas – US District Court holds that individual lacked standing to challenge city’s issuance of general obligation bonds, noting that Federal court is not an appropriate forum for municipal taxpayers to challenge whether their municipality properly followed state law.
- Delaware’s Supreme Court Affirms Decision Denying New Castle County Property Owners’ Challenge to Split-Rate 2025-26 Residential and Non-Residential Property Taxes: Richards, Layton & Finger
- And Finally, Double Trouble is brought to us this week by Philip v. Pollock, in which the court weighed evidence regarding a dog’s known, “vicious propensity” (Can we make this the name of the world’s first Public Finance Punk Band? Please?) following an attack. Didn’t help that the dog’s owner had advertised it – Double Cross – in a social media post as, “weaponized.” When asked at his deposition whether American Bullies like Double Cross will chase and pull on objects, the owner testified that, “That’s what a dog do. They … bite. That’s the only form of … stuff they do. They bite. They bite at anything.” Well spoken, sir. You are clearly the type of gentleman who has carefully thought through all of the hilariously ironic possibilities entailed in owning a very bitey dog called, Double Cross.
- MSRB Request for Comment Rule D-15 Defining the Term Sophisticated Municipal Market Professional.
- Amid Data Center Boom, Public Utilities Push for More Flexibility with IRS Bond Rules.
- NFMA Advanced Seminar on High Yield Bonds.
- Liquidity Impact of Municipal Bond ETFs on Municipal Securities Market: An Updated MSRB Analysis
- Fitch: Federal Spending Cuts Push More Fiscal Risk to State, Local Governments
- GFOA Annual Conference.
- And Finally, Can’t Be Too Vigilant With One’s Porous Items is brought to us this week by Hadley v. City of South Bend, Indiana, in which police arrived at a residential house to execute a search warrant. Despite credible protests from the owner and her 15-yo son that they’d never heard of the guy, the officers were undeterred. Did the officers simply open the unlocked door and request that the fugitive step outside for a chat? They did not. “They broke windows and launched thirty cannisters of tear gas into the home. The gas destroyed all ‘porous’ items in the house, like clothing and beds (Hadley had to sleep in her car for days until toxic fumes from the gas dissipated). Police also wrecked internal security cameras, punched holes in the walls, ransacked furniture and a closet, and tore down a panel on a wall and a fan in a bathroom.” Guy wasn’t there. Never had been. But what are you gonna do? Not at all surprising that the owner sued. What is surprising, nay shocking, is the dollar amount she demanded. $16k. Sixteen thousand dollars. We’re not even seeing a request for attorneys’ fees. Suppose those are just coming off the top. Plenty to go around. Let’s go ahead and – arguendo – agree that the entirety of this home’s interior is worth $16k. THEN WHY THE INTERIOR SECURITY CAMERAS?
- NFMA Introduction to Municipal Bond Credit Analysis. [With updated agenda and registration info.]
- 2026 National Association of Counties Legislative Conference.
- MSRB to Seek Further Comment On Rule Defining Sophisticated Municipal Market Professionals.
- Tricky Times Ahead for Governments’ Cash Managers.
- Drought Is Quietly Pushing American Cities Toward A Fiscal Cliff.
- Cummings v. Kelly – Supreme Court of Montana holds that city residents who sought to void library mill levy election were not entitled to hearing pursuant to statute related to challenges to local government bond elections, since statute was irrelevant because tax levies, such as library mill levy, were not issued or sold like bonds, and local governments did not collect taxes for payment of levied mills.
- And Finally, Great Moments In Topical Creams is brought to us this week by Montanez v. Price, in which the Supreme Court of Pennsylvania was called upon to determine if an inmate’s ailments amounted to, “serious medical needs.” Must be a close call if it’s gone all the way to the top, right? What seems to be the problem, Mr. Montanez? Spinal cord stenosis, spinal cord edema, herniated disc, paralysis, and sudden incontinence. Medical needs? Likelier than not. Serious? Maybe. Let’s get a second opinion. Paging Drs. Jekyll, Mengele, and Kevorkian.
- NFMA Introduction to Municipal Bond Credit Analysis.
- Coming Up: NFMA Advanced Seminar on High Yield Bonds
- S&P Sustainability Insights: The Credit Materiality Of Physical Climate Risks Is Uneven Across Asset Classes
- S&P U.S. Mortgage Revenue Bond Program Medians: Credit Stability Reinforced By Strong Management During Program Expansion
- MSRB Board of Directors Holds First Quarterly Meeting of FY 2026.
- Report Ranks Every State’s Debt, from California’s $497 billion to South Dakota’s $2 billion.
- And Finally, Ye Olde Taxable Munis is brought to us this week by Colonial Williamsburg Foundation Enters Taxable Muni Market, in which we learn that the dreaded destination of every middle-school field trip in the Mid-Atlantic region has, for the first time, entered the muni market. Given the commitment to period authenticity, why not join the fun? Set up shop next to the blacksmith and get to work. Entire deal team in colonial garb, including those silly triceratops hats. Parchment. Ink wells. Quills. (Maybe a witch burning, just for fun?) And forget about EMMA (Unless, that is, you’re referring to Emma the blacksmith’s daughter.) Town Crier. Hear ye! Hear ye! By order of His Majesty Allen Greenspan…
- S&P Credit FAQ: How Global Ratings Assigns The Loss Coverage Score For U.S. Long-Term Municipal Pools
- Municipal Bankruptcy: Avoiding and Using Chapter 9 in Times of Fiscal Stress – Orrick
- Cyber Attack Ensnares $4.3 Trillion Muni Market’s Key Site.
- Barclays Sees Muni ‘Space Bonds’ Becoming $25 Billion Market.
- Alliance San Diego v. California Taxpayers Action Network – Court of Appeal holds that special fund doctrine applied to exempt city’s bond resolutions related to voters’ ballot measure for hotel tax increase to fund expansion of city’s convention center, address homelessness, and repair streets from requirement under State Constitution and city charter of assent of two-thirds of voters for general obligation bonds; bonds related to measure would not be “general obligation bonds,” since resolutions did not obligate city to make payments on bonds out of its general funds or any funds other than the special tax funds established by measure.
- And Finally, Lawyers Make For Terrible Songwriters is brought to us this week by Reno Real Estate Development, LLC v. Scenic Nevada, Inc., in which the reference to Reno conjured up for Your Editor memories of the Johnny Cash classic, Folsom Prison Blues. In the song, Mr. Cash was imprisoned for the crime of shooting a man in Reno, NV. The motive provided by Mr. Cash was, ‘Just to watch him die.’ Bit callous, that. Not a good look at sentencing. So why is he serving time in Folsom Prison, which is located in California? Perhaps the verses dealing with the jurisdictional issues were inadvertently omitted from the final version of the song. In related news, We regret to inform you that we are presently unable to procure the contractually-stipulated quantities of satisfaction using reasonable commercial efforts.
- MSRB Issuer and Investor Notification: Posting and Accessing Preliminary Official Statements on EMMA
- States and Localities Count Dollars, Eye Options as Shutdown Continues.
- ‘This Shutdown Feels Different.’ States Might Not Get Repaid When Government Reopens.
- Reminder and Early Registration Discount Deadline for GFOA’s Annual Governmental GAAP Update Encore.
- Bunch of Novogradac tax credit seminars and such in the Events section.
- National Hockey League Players Association v. City of Pittsburgh – Supreme Court of Pennsylvania holds that city facility tax, which imposed a 3% tax on income derived by nonresidents’ use of city’s publicly funded stadiums and arenas, while imposing 1% tax on income derived by residents’ use of such facilities, violated the Uniformity Clause, even if total tax burden on residents, who were subject to 2% school district tax, and nonresidents, who were not subject to the school district tax was equal.
- Campus Crest at Tuscaloosa LLC v. City of Tuscaloosa – Supreme Court of Alabama holds that complaint by taxpayers, who alleged that they were out-of-state owners, operators, or lessees of multifamily housing developments that city had designated as student-oriented housing developments (SOHDs), contained sufficient factual averments that, if developed, could show that city had no rational basis for city ordinance that imposed enhanced business-license fees on SOHDs with more than 200 bedrooms, and thus taxpayers stated a claim for a judgment declaring that ordinance violated equal protection.
- And Finally, Light (We Hope) Blasphemy Alert is brought to us this week by Department of Transportation v. 5.85 Acres of Land and Certain Easements Rights, in which the Georgia DOT respectfully (we hope) offered John Sauls $37k in exchange for 5.85 acres of his property. Mr. Sauls respectfully (we hope) declined this offer. So the DOT condemned him to death. That’s not how eminent domain actions work, you say? Oh. Ok. Condemned the land. Went to trial and the jury came back with an award of $1.5 million. We ran the numbers and $1.5 million is more. Math checks out. This all makes sense once we were informed that the property was used for (inter alia) “church Easter egg hunts.” In which case, the jury acted with very understandable prudence. You feeling up for being condemned by BOTH our newly risen Lord and Savior AND the Easter Bunny? (emphasis addeed) A formidable pair if ever there was one.
- SEC Approves Amendments to MSRB Rule G-14 on Reporting of Transaction Prices.
- Pimco Debt Move in Texas Recycler Brings Credit Fights to Munis.
- GFOA’S 7th Annual MiniMuni Conference.
- Olympic and Georgia Partners, LLC v. County of Los Angeles – Supreme Court of California holds that nightly “occupancy tax” city agreed to assign to original hotel developer as incentive to construct hotel represented revenue from use of hotel itself and, thus, tax payments were properly included when determining hotel’s assessed value for tax purposes; one-time “key money” payment that hotel’s management company paid to original hotel developer in exchange for right to manage hotel and brand it as a company-related property for a 50-year period represented revenue from use of hotel itself and, thus, tax payments were properly included in income stream analysis when determining hotel’s assessed value for tax purposes.
- California Supreme Court Issues Significant Opinion Concerning the Assessment of Intangible Assets in Property Taxation: Greenberg Traurig
- And Finally, For Stormie Is An Angry God is brought to us this week by Bray v. Watkins, in which, “County Sheriff’s Lieutenant Stormie Watkins was the supervisor on duty in the county’s emergency 911 operations center.” Stormie Watkins. We are not making that up. (But foreshadowing alert!) “At approximately 1:02 a. m., the National Weather Service issued a tornado storm warning for Bartow County, but [Stormie] Watkins did not activate the tornado warning system.” Exactly what part of “1:02 a.m.” qualifies as “approximate” and exactly what part of “tornado storm” is not a redundant redundancy? Anyhoo. “Several minutes later, a tornado caused a tree to fall on a bedroom of a rental house.” Dad dies. Mom and daughter are injured. Mom sues Stormie. Given the facts presented, may we suggest instead focusing on: 1) Identifying the deities you have grievously offended; and b) Appeasing those same deities? Leave poor Stormie out of it; she can’t help you now. Candles/Incense/Alter/RIP Rooster to start. Should you subsequently be stricken by plague/boils, time to deploy the goat.
- SEC’s Sanchez: Unregistered Muni Advisor Activity by Lawyers is a Concern
- American Public Power Association Legal & Regulatory Conference, 2025
- Modernizing Delivery Requirements Under the Federal Securities Laws: SIFMA Comment Letter
- Municipal Bond Fund Collapse Exposes Dangers of Junk Debt.
- Miami-Dade’s Crypto-Driven Debt Strategy: Can $FUSD Deliver Stability and Growth?
- OBBBA Makes OZ Incentive Permanent, With Some Significant Changes: Novogradac
- And Finally, The Nuclear Apocalypse Destroyed All Life on Earth; Plus It Left a Sticky Film on Our Kitchen Counters is brought to us this week by Penncrest School District v. Cagle, in which a visitor to a local public school posted photos on Facebook and opined as follows: “This is on display at Maplewood High School. Besides the point of being totally evil, this is not what we need to be teaching kids.” We’re a bit vague as to the subject matter of this objectionable display. Pineapple on pizza? The issue here is that once you’ve deployed “totally evil,” there’s really no point in following up with your particularized objections. Anti-climax and all that. Other than that, Mrs. Lincoln, how was the play? (Yes, we’re aware that we deploy this little joke on a regular basis. We care not, as is never gets old. Did we ever see actual reviews of Our American Cousin, or had more pressing concerns suddenly arisen? Can’t recall.)
- MSRB: Major Trends in the Municipal Securities Primary Market
- Tax-Exempt Munis vs. Taxable Bonds: Which Has Higher Returns? – WSJ
- Fitch Affirms Muni Ratings Tied to U.S. Sovereign Ratings at ‘AA+’; Outlook Stable
- Municipal Litigation Lottery.
- 2025 Affordable Housing Tax Changes: Understanding LIHTC, Bonds, OZ and 45L Deadlines
- Best Practices in Debt Issuance and Management: GFOA eLearning Course
- GFOA: GAAP Update Early Discounts Available
- And Finally, Nothing To See Here Folks, Move Along is brought to us this week by State ex rel. Seeman v. Lower Republican Natural Resources District, which we intended to utilize before realizing that this title contains zero comedic potential. Zero! So on to Rogers v. Cedar Bluff Volunteer Fire Department, in which an off-duty fire department medic responded to a car crash. Upon arrival, the citizen performing CPR on the victim asked the medic if he’d take over, only to be told to stop all resuscitative efforts, as the victim was clearly deceased. When the county EMS paramedics arrived a bit later, “They examined [victim] and found that she was warm to the touch, had a pulse, and had responsive pupils.” They then proceeded to diagnose the victim with a syndrome referred to in technical medical jargon as, “Not dead.” She was then re-resuscitated but died a couple days later due to anoxic encephalopathy resulting from the cessation of the cardio and pulmonary elements of the acronym. Coincidentally, Your Editor’s online dating profile indicates that he’s looking for someone who is warm to the touch and has a pulse. Responsive pupils a plus.
- Ed. Note: Due to a tech glitch, last week’s newsletter picked up articles from 2020 & 2021. It took us a few days to identify and correct the issue. Our sincere apologies.
- FINRA Fines Wells Fargo Clearing Services $137.5k for Alleged Violations Related to Unregistered Advisor Activity.
- S&P Sustainable Finance FAQ: Sustainable Bond Impact And Transparency In Post-Issuance Reporting
- Treasury Department Sets Limits on Remaining Wind and Solar Tax Credits.
- AMT: One Big Beautiful Opportunity in the Municipal Bond Market
- Disclosure Update: GFOA Webinar
- Public Utility Accounting: APPA Webinar
- Vianello v. City of Prairie Village, Kansas – In citizen objector’s challenge to city’s issuance of GO bonds, US District Court denies city’s motion for expedited briefing and ruling, holding that city’s assertions of the cost associated with delay were speculative at best and that city’s assertion that the lawsuit operated as an injunction preventing it from issuing bonds that it was legally entitled to issue called for a decision on the merits.
- And Finally, And That’s Why You Always Incorporate A Little Powdered Hospitality is brought to us this week by Liquid Hospitality, LLC v. Board of City Commissioners of City of Fargo, in which a bar patron was just a wee bit overserved. “The report included a description of the patron’s behavior throughout the evening which included the patron arriving at the Windbreak at 10:47 p.m. without appearing intoxicated; at around 12:12 a.m., approximately five drinks later, the patron was observed dancing in an exaggerated and slower manner followed by resting her head on the stage…” She was eventually escorted out to her car, which she immediately crashed. A BAC 0.291, accrued in about an hour, is kinda impressive, but for the whole motorized transport thing. Much more importantly, what the Fosse is a dance that is both exaggerated and slower? And how do you rest your head on a stage? Can someone please get some otherwise useless Junior Associates to start workshopping this? We’d genuinely appreciate it.
- Ed. Note: What the heck is going on with all the breathless reporting on the new spaceport bonds? What municipality on God’s Green Earth is suddenly going to build a spaceport now that tax-free bond financing is on the menu? We checked in with our friends in Oxbow, North Dakota and they reported back that they currently have no plans to construct a spaceport. Well, at least not until their particle accelerator is operational.
- GFOA: Tracking the 2025 One Big Beautiful Bill Act
- After Muni Bond Fund Blows Up, Broker-Dealers Osaic and Stifel Nicolaus Face Questions.
- Can PILOT Programs Plug Holes in Municipal Budgets?
- Fitch Ratings Publishes U.S. Public Finance Charter School Rating Criteria Exposure Draft.
- McGuireWoods: DOT Increases Maximum TIFIA Loan Financing for Transportation Infrastructure Projects
- NFMA Introduction to Municipal Bond Credit Analysis.
- NFMA Advanced Seminar on Housing.
- And Finally, Kicking People When They’re Down: It’s Good To Have a Hobby is brought to us this week by Nguyen v. State, in which, “a rookie Baltimore Police Officer responded to a report of two men fighting inside a gold Lincoln sedan.” Any day you find yourself fighting in a gold Lincoln sedan is a good day. Upon arrival, one of the men was bloodied and lying unconscious on the ground. The rookie officer observed the ambulatory combatant walk up and kick the unconscious guy in the head. Hardly sporting, that. What really got the officer in trouble was his statement to the perpetrator that, “You did what you got to do to get your property back,” and then asked him if he had ever considered being a professional fighter. Have you ever considered being a professional cop?
- Registration for NFMA Advanced Seminar on Housing is Open. We’re having some trouble with the NFMA’s website, but will send out registration instructions as soon as we can get this cleared up with them. In the meantime, pencil in October 16 & 17 in Huntington Beach, CA.
- Growing Cybersecurity Risks in the Municipal Bond Market: Frost Brown Todd
- Fitch: U.S. Tax and Spending Bill Poses Long-Term Challenges to State Budgets
- Brookings: Measuring the Impact of Climate Change on State and Local Governments’ Fiscal Health
- Financial Imbalance: U.S. Cities Grappling with Imminent Fiscal Danger.
- And Finally, Great Moments in Corporate Eugenics is brought to us this week by Trustees of Walters Art Gallery, Inc. v. Walters Workers United, in which the Supreme Court of Maryland informed us that the art institution in question was directed, in 1933, to set up a “self-perpetuating board.” Can this mean what it appears to mean? The board must keep perpetuating itself? By, like, some kind of board member breeding program designed to create new little board members? This feels highly unorthodox. And, as this directive went out in 1933, that’s several generations of corporate inbreeding at this point. We would love to be a fly on the wall and all, ‘cept the current board members keep eating them. Shouldn’t there be a better way?
- Muni Investors Brace for Hospital-Bond Pain From Medicaid Cuts.
- One Big Act: Tax-Exempt Bonds Avoid Annihilation – Squire Patton Boggs
- WSJ: A Mystery in the High-Yield Muni Market: What Are the Riskiest Bonds Worth?
- US Airports Rush to Bond Market With $10 Billion of New Sales.
- Megawatts to Megabytes: Orrick’s 2025 Guide to Developing, Financing & Powering Data Centers
- GFOA: Taking the Pulse of Local Government Finance
- Ohio Enacts Law Regulating Ransomware Payments and Cybersecurity: Thompson Hine LLP
- Fort Worth Bitcoin Mining Pilot: A Path for Municipal Crypto Adoption
- And Finally, Department of Redundancy Department – The State of the Great State of Maine Edition is brought to us this week by Rinaldi v. Maine Correctional Center, in which the titular (hee, hee) state sorely tests our patience. Let’s start with the court handing down the decision: The Supreme Judicial Court of Maine. Oh, the Judicial court! Without that qualifier we would have assumed that it was the Diana Ross and the Supremes Court of Maine. Then there’s the opinion itself, in which Ms. Ross informs us that, “The Maine Correctional Center complex is fully surrounded by a locked, gated fence.” Ah. There are those who might suggest that this would go without saying. The Supreme Judicial Court of Maine is clearly not one of those. The one bright spot is that Your Editor misread, “the road was not adapted to realty” as “the road was not adapted to reality.” Which is much, much funnier. You know how Hemingway stated that he drank to make other people interesting? I resort to weapons-grade hallucinogens to make the Supreme Judicial Court of Maine tolerable.
- Ed. Note: Our friends at Norton Rose Fulbright were understandably irked when they discovered that last week’s newsletter included an article of theirs. From 2022. Turns out that the information contained therein was relevant in – hang on, let me check the calendar – uh, 2022. We sincerely apologize.
- GFOA’s 2025 GAAP Update.
- NFMA Comment Letter to GASB.
- Proposed Rule Changes to Amend FINRA Rule 6730 (Transaction Reporting) and Rule G-14 RTRS Procedures Under MSRB Rule G-1: SIFMA Comment Letter
- Final Reconciliation Bill Permanently Expands LIHTC, NMTC and OZ Incentive; but Does Not Include HTC Provisions.
- Taxing the Crisis: Can Municipal Tax Hikes Mitigate Bondholder Risks in Stressed Districts?
- Fitch: OBBBA Poses Long-Term Challenges for U.S. Not-for-Profit Hospitals
- California development finance case here.
- And Finally, Originalism Sin is brought to us this week by Guy v. Housing Authority of City of Augusta, in which the Supreme Court of Georgia remanded to the Court of Appeals, instructing it to conduct an analysis of this sovereign immunity case, “by examining the common law of England as of May 14, 1776.” When George III was the sovereign. (Do you feel sovereign? Well do you, punk?) That sound you hear is Georgia Court of Appeals clerks shoveling coal into the furnace, preparing to fire up their steam-powered laptops. Are female clerks and clerks of color even allowed to participate in this analysis? Feels like they’d have a rather solid argument for sitting this one out. Huzzah!
- Ed. Note: We appear to have compiled – very, very inadvertently – an actually useful edition this week. We apologize for any convenience and can assure you that we’ll strive to avoid any recurrence going forward.
- NFMA’s RBP in Disclosure for Public Power Electric Utilities & Joint Action Agencies Released.
- The One Big Beautiful Bill Act: A Comprehensive Holland & Knight Analysis
- Mintz Reconciliation Update: Latest Developments for Tax-Exempt Bonds & Public Finance and What to Expect Next
- Final Tax Bill Preserves Tax-Exempt Bonds and Expands Affordable Housing and Public Finance Provisions: Taft Stettinius & Hollister
- S&P: Changing Demographic Trends Could Affect U.S. Public Finance Issuers’ Creditworthiness In Varying Ways
- US School Districts Rush to Sell Bonds After Draining Covid Cash.
- WSJ: Trump’s $7 Billion Education Funding Freeze Blindsides Schools
- Space Bonds!!
- Mayor Eric Adams Unveils Bitcoin-Backed Municipal Bonds to Transform NYC into a Crypto Hub.
- Important article for Texas practitioners from our friends at Orrick here.
- And Finally, Very, Very Foreseeable Consequences is brought to us this week by Ex parte McGuire, in which a police officer spotted Faya Rose Toure, “removing a campaign sign from property adjacent to Tabernacle Baptist Church.” Officer McGuire, “pulled his patrol vehicle alongside Toure’s vehicle, and asked her to return the campaign sign she had removed. Toure told McGuire to ‘go to hell’ and drove off, running a red light in the process.” Predictably, Ms. Toure made a bit of a fuss upon her arrest. Not only was she aggrieved regarding her treatment, she was furious when someone mysteriously released her mug shot to the press, which ran it on the front page of the Selma Times Journal. When asked, the chief of police stated that he, “could not recall who had released Toure’s mug shot.” Dang memory loss. In hindsight, perhaps prudent to simply return the campaign sign? Discretion, valor, and all that jazz?
- Ed. Note: We’ll be off next week in celebration of our robust, thriving democracy. Double Dose O’ Drivel 7/8!
- Shifting the Burden: States Face Rising Pressure to Fund Disasters Alone – Baker Donelson
- Senate Finance Releases Tax Reform Legislation: Kutak Rock
- New GFOA Research: Rethinking Materiality in Government Accounting
- Too Essential to Fail: Lessons from County Fiscal Crises.
- Tax Compliance for Debt Issuers: GFOA Webinar
- This Is the Best-Run City In the U.S., a New Analysis Says. See Where Your City Ranks.
- Stefanik Asks SEC to Investigate Harvard Bond Offering.
- And Finally, Careful What You Wish For, Lantana! is brought to us this week by Martinez v. City of Lantana, in which a single-mum local homeowner was notified that she had been steadily accruing small daily fines for a number of small daily offenses like a cracked driveway and improper parking within that driveway. While each individual fine was not per se inordinate, it’s the daily accrual part that’ll sneak up on ‘ya. The grand total? So glad you asked. $160,000.00. 4x her annual salary and .5x the value of the home. We were intrigued and thus took a closer look. Lady got massively screwed. Fortunately, there exists precisely no Venn overlap between tyrannical martinet code compliance officers and sexual sadist serial killers. I mean, if you don’t count that Dennis Rader fella. Aka the BTK Killer. For reals all around. Best of luck, Lantana!
- The Good, The Bad, and the Super Slow: Examining the Timeliness of Municipal Bond Audits for Audit Year 2023
- Forbes: Colleges Big And Small Issue Bonds Amid Political Chaos And Trump’s Higher Ed Assault.
- Big Waves and High Tides Can Be Just as Insidious as Hurricanes.
- Chicken Fat-to-Fuel Project Is the Latest Green Muni Bond to Default.
- Israel’s War Is Florida’s New Investment.
- Can They Do That? Ohio Senators Propose Novel, if Questionable, Browns Stadium Funding Plan.
- And Finally, Thanks, But Just Sign Me Up For Dr. Gaye’s Seminar (And Finally, a video capturing our current FDA’s understanding of the practice of medicine.) is brought to us this week by High Watch Recovery Center, Inc. v. Planning and Zoning Commission of Town of Kent, in which we were introduced to the concept of “Horticultural Therapy” when a substance abuse treatment facility sued the Town of Kent over a greenhouse permit. Having engaged in no shortage of Horticultural Therapy ourselves, we were firmly onboard until informed that the plan involved the cultivation of some kind of plants we had not previously associated with psychoactive benefits. How the hell do you smoke a tomato?
- MSRB Rescinds One-Minute Trade Reporting Standard, Responding to Industry Feedback and Concerns.
- Proposed Rule Change to Amend MSRB Rule G-14 RTRS Procedures.
- Orrick: Increasing Frequency of Incorrect IRS Notices to Tax-Exempt Bond Issuers Raises Concerns
- Tourism and Tax Revenues: An Overlooked Link to Municipal Bonds.
- Failed Muni Bond Draws FBI and Sparks ‘Ponzi-Like Fraud’ Claims.
- Examining Concentrations and Constraints for GASB 102: GFOA Webinar
- And Finally, Daniel Olvera: Skinny, White High School Legend is brought to us this week by Village of Lincolnshire v. Olvera, in which, “On May 6, 2021, Daniel Olvera was a 16-year-old sophomore at Stevenson High School in Lincolnshire, Illinois. Defendant’s seventh-period class that day was driver’s education. Defendant went for a practice drive with driving instructor Scott Peckler and a female student, who rode in the back of the vehicle.” Ok. Probably something like this. “At the conclusion of the driving lesson, Peckler spoke with the director of the driver’s education program, telling her ‘there’s something going on here, I think you should check this out.'” After a search, school officials, “found a skinny, white, rolled cigarette in the folds of Olvera’s wallet.” While clearly contraindicated as a performance-enhancing driving aid, we can only presume that Daniel was quite well-behaved throughout the previous six periods, if perhaps a bit unfocused.
- House-Passed Reconciliation Bill Provides Largest Housing Credit Expansion in Quarter Century.
- Private Credit Eyes Gap in US Infrastructure as Federal Funding Dips.
- Pristine Taxable Munis Seen Gaining After Moody’s US Rating Cut.
- Important notice for Indiana practitioners from our friends at Barnes & Thornburg here.
- In re Jackson Hospital & Clinic, Inc. – Bankruptcy Court holds that it did not have have the authority – under the Bankruptcy Code – to extend the employment agreements of the law firms and consultants retained in connection with hospital debtor’s bankruptcy to also represent an affiliated medical clinic in connection with a proposed restructuring; medical clinic was neither a debtor, nor a debtor in possession and, as such, the medical clinic board was not a party that the law firms and consultants could be employed to represent.
- And Finally, Guns Don’t Kill People; Rhode Island Zoning Laws Kill People is brought to us this week by Koziol Firearms, Inc. v. Marchand, in which the Koziol brothers petitioned the city to allow it to expand its legal noncomforming auto repair shop to accommodate a firearms manufacturing business. Apparently, the plan was that, when the automotive transmission and repair business would close for the day, the firearms business would be open for “an hour or two a day, five days a week.” The Supreme Court of Rhode Island stated, rather drily, that the “Operation of a business that would bring firearms to the neighborhood is counter to the establishment of a residential zone, for the purpose of promoting the public health, safety and general welfare.” Regardless, please sign us up for the wielding of firearms manufactured part-time in an automotive transmission and repair shop. What could possibly go wrong? Fingers grow back, right? Right?
- S&P Tender Option Bond Update Q1 2025: What Tariffs Mean For Muni Securitization
- BondingTime Podcast with Bond Dealers of America and CDFA.
- CDFA // BNY Development Finance Webcast Series: Risk Management and the Bond Credit Rating Evolution
- GFOA Utility Finance Forum Quarterly Webinar: Enhancing Utility Performance through Effective Benchmarking and Storytelling
- Chicago Starts Search for New Municipal Bond Underwriters.
- LA Utility Returns to Muni Market for First Time Since Wildfires.
- And Finally, “… Nested Inside A Larger Fissure That Was Around Seven Feet Long” is brought to us this week by Maharaj v. City of New York, a case in which a New York resident was injured when he tripped on a fissure (unpleasant word, that) on a derelict tennis court whilst playing cricket. The majority opinion of the Court of Appeals held that that, “the risk of tripping and falling while playing on irregular surface was inherent in the game of cricket.” This is a genuinely bizarre ruling, in that cricket is traditionally and inherently played on manicured cricket fields, which contain no irregular surfaces. Particularly no fissures. But don’t take my word for it, Justice Rivera positively lost his mind in his dissent. He provided a massively unnecessary history of the game, beginning in 1844, and cited some very odd sources, such as Carlos Osorio’s masterful Car–Park Cricket in Canada. We cannot recommend it more highly (the dissent, maybe less the Car-Park Cricket tome.)
- FINRA Fines Firm and Its CCO for Supervisory and Reporting Failures: Reed Smith
- Sports Park Promoters Charged With $280 Million Bond Fraud.
- S&P U.S. Brief: Energy As A Service Is Off-Balance-Sheet, But On-Credit For Not-For-Profit Health Care Providers
- ARPA SLFRF Reporting Language: What to Know – NLC
- NASBO: Governors Recommend a Wide Variety of Tax Changes for Fiscal 2026
- GFOA SGF Professional Development Webinar: Why Worry About GASB 101?
- GFOA 2025 Closing Event Announced – NIGHT RANGER!!! We had little/no interest in this event until the GFOA informed us that the entertainment for its conference will be provided by Night Ranger. Nothing better than closing out an event for government finance officers with an ’80s one-hit wonder! See you there! Don’t forget your lighters.
- And Finally, We Joined The Masons Strictly For Its, Uh, Masonry? is brought to us this week by Matter of Recall of Suggs, in which citizen filed recall petitions against mayor and three city council members. The reason? So glad you asked. Turns out that the city had joined an organization called the, International Council for Local Environmental Initiatives (ICLEI). “ICLEI is a global network of local and regional governments focused on improving global sustainability through cumulative local actions.” The issue amounted to much more that citizen’s disapproval of the organizations purpose. Rather, he alleged that, “When Port Angeles joined the ICLEI network, the mayor and council members were no longer qualified to hold office because they had voluntarily relinquished U.S. citizenship.” Seems a wee bit draconian. Please note that BCB hereby officially rescinds its membership in OPEC. We’ll miss the freedom to kill and dismember our critics, but would prefer to maintain our US citizenship (such as it currently is).
- MSRB: A Comparison of Transaction Costs for Municipal Securities and Other Fixed-Income Securities
- NewEdge to Pay $1 Million For Misleading Bond Purchases, Off-Channel Comms: Finra
- S&P: U.S. Public K-12 Schools Credit Quality Is Not Currently At Risk From Proposed Changes To Department Of Education
- Fitch: Recent Cyberattacks Highlight Credit Risk to Vulnerable NFP Hospitals
- Oklahoma Agency to Issue $1.15 Billion Muni Bonds for Tire Factory.
- Muni Risk Threshold Tested by $1 Billion Deal for Tire Factory.
- Best Practices in Debt Issuance and Management: GFOA In-Person Training
- And Finally, That’s Why They Call ‘Em Massholes! is brought to us this week by Theisz v. Massachusetts Bay Transportation Authority, in which the Supreme Judicial Court of Massachusetts opined as follows: “In December 2010, the MBTA hired Derek Smith as a part-time bus operator. During his three-year term on a part-time basis, the driver sometimes engaged in unsafe driving and, on occasion, interacted with the public and his supervisors in a hostile or insubordinate manner.” That hardly seems positive. Suppose you can always fire him. Nope? “In March 2013, the MBTA promoted the bus driver to a full-time bus operator.” What could possible go wrong? “Approximately seven months later, in October 2013, the bus driver was involved in a violent altercation with an MBTA customer. While on the route, the driver noticed a passenger whom he considered to be behaving in an unruly manner; in response, he left the driver’s seat of the moving bus and physically assaulted the passenger.” Uh, oh. “Meanwhile, the bus, which the driver had left unattended as he attacked the passenger, struck three parked cars, endangering the lives of all the passengers onboard as well as any persons and property in the bus’s uncontrolled path.” Certainly there will be consequences, no? No. “The MBTA suspended the bus driver for one day after which he resumed his regular activities as a bus operator. No other disciplinary action was taken; and the bus driver was not required to attend any training directed at assisting him to better manage customers or his anger.” This happened yet again. Resulting in the bus driver’s arrest this time. Really. Just, just, just gloriously stupefying.
- Squire Patton Boggs: IRS Releases Latest Management Contract Private Letter Ruling
- Trump Clawbacks of FEMA Aid Present Risk to Muni Bonds, MMA Says.
- The Availability and Impact of Public and Private Funding Following a Natural Disaster: Chicago Federal Reserve
- Risk Management and the Bond Credit Rating Evolution: CDFA Webinar
- S&P: Credit Risks Associated With Wildfires Are Increasing For California Public Finance Entities
- And Finally, Can I Get A Side Of Malaise With That? is brought to us this week by Bray v. Idaho Department of Juvenile Corrections, in which Colby James Bray experienced certain symptoms while in Juvie that Your Editor finds particularly alarming. Prior to mysteriously dropping dead, Mr. Bray’s only symptoms were, “nausea and a sense of lethargy.” Had Mr. Bray’s symptoms included something like bleeding out of his eyeballs or something, all would be well here at BCB World HQ. However, as “nausea and a sense of lethargy” are my personal pre-existing, existing, and post-existing steady state conditions of being, I could clearly be heading off to meet the Great Underwriter in the Sky any time now. The publication will then be assumed by Stockholm the cat. Expect certain changes.
- Update From GFOA’s Federal Liaison Center On The Federal Funds Freeze.
- What Drives Trading Volume in the Municipal Securities Market? An MSRB Study of Likely Factors.
- DOGE Effect Stings Muni Bonds Backed by Federal Lease Payments.
- Research Universities Face Credit Risk from NIH Funding Cut.
- Summary of Tax Proposals in Leaked Document Detailing Policy Proposals: Proskauer Rose
- US Lawmakers Seek to Revive Early Refinancing for State, Local Governments.
- And Finally, Well That Would Explain The Short-Staffing is brought to us this week by Val Verde Hospital District v. Salazar, in which a young woman checked in to the ER, “because she was experiencing symptoms of shortness of breath, chest palpitations, and chest pain.” A technician then set up an EKG, which we have just learned requires attaching twelve separate electrodes to the chest. The patient subsequently sued the hospital, alleging that she had been inappropriately touched during the procedure. We love the fact that the Texas Court of Appeals felt it necessary to stipulate that the EKG and the associated electrodes themselves did nothing wrong. Noted. More importantly, the patient/plaintiff did provide us with a god-tier insult when she stated that the technician, “did not have the appropriate demeanor, personality, and/or character to perform an EKG.” Gonna have that one cue’d up on my next visit to Jiffy Lube.
- Request for Information on the MSRB’s Rate Card Process: SIFMA Comment Letter
- MSRB Discusses Market Regulation, Structure and Transparency Initiatives.
- Cyber Threats in Public Finance: Protecting Transactions from Wire Fraud – Orrick
- NFMA Draft Best Practices for Public Power – Comments Due February 15
- Quincy CFO Talks BlackRock Purchase of Blockchain-Powered Municipal Bond.
- Market and Credit Rating Outlook: GFOA Webinar
- And Finally, There Goes Your Security Deposit is brought to us this week by Bakos v. Roach, in which the Court of Appeal informed us that, “Matthew Bakos ran a pheasant hunting club in Lincoln, providing pheasants for hunting and hunting dogs for rent.” Perhaps unsurprisingly, Your Editor initially read this sentence to mean that Mr. Bakos would rent you both the pheasants and the dogs. As renting presupposes the safe(ish) return of the object being rented, we were happy for the dogs, but profoundly unclear on the role of the pheasants in this exchange. Don’t know about you, but each time I’ve attempted to return an item (e.g. Little Sister; Dick Cheney) embedded with fresh buckshot, the process has been marked by considerable explanations and recriminations.
- LA Fires Test Bond Market Used to Shaking Off Disasters.
- Regulator Explores the Collection of Pre-Trade Muni-Bond Prices.
- Municipal Securities Disclosure (Exchange Act Rule 15c2–12): SIFMA Comment Letter
- Orrick: First Airport Financing Under the Bipartisan Infrastructure Law’s Expanded TIFIA Authorization Goes to Sacramento Airport
- A Discussion with Treasury’s Office of Capital Assets (formerly Recovery Programs): Free GFOA Webinar
- And Finally, Texas, That’s A Mess is brought to us this week by Keenan v. Robin, in which the Supreme Court of Texas set the scene in the first sentence of its opinion, which reads, “This case arises from a dispute between neighboring property owners in an unusual subdivision, most of which is now used as a cattle ranch.” That is indeed an unusual subdivision. Surprising no one, the dispute concerns the “most of which” part of that sentence, as the other-than-most part is the Keenan household, the only actual dwelling on what is now a 34-acre cattle ranch/subdivision. The court also provided us with this glorious, only-in-Texas, statement, “The Keenans never noticed cattle or manure on their lot prior to the Ranch’s purchase, and they did not consent to cattle being run on their lot.” Us non-Texans might have assumed that both of those things should go without saying, but apparently not. So Mr. Keenan busts down a gate preventing him with leaving the ‘hood and is charged with “criminal mischief of a livestock fence.” Seems like an oddly specific crime, but what’s a little mischief between neighbors? Turns out that this type o’ mischief is A STATE JAIL FELONY. We’d call bullshit, but is that even a pejorative in this context?
- Final Reissuance Regulations Released (Finally): Squire Patton Boggs
- S&P U.S. Local Governments 2025 Outlook: A Stable Start To The Year While Prospects Look Precarious
- S&P: As Los Angeles Wildfires Burn, Credit Implications For U.S. Public Finance Issuers Are Unclear
- Wall Street Banks Cleared by Texas AG After Leaving NZBA.
- 2025 May Be a Major Year for Generative AI Adoption Across Government.
- First Eagle Targets Higher Yields in Muni Fund That Limits Exits.
- American Trucking Associations, Inc. v. Rhode Island Turnpike and Bridge Authority – US Court of Appeals holds that provisions of Rhode Island Bridge Replacement, Reconstruction, and Maintenance Fund Act establishing caps on tolls paid by tractor-trailers to use bridges along major interstate and state highway corridors provided disproportionate competitive advantage to in-state tractor-trailers as compared to those from out-of-state and, thus, provisions were discriminatory in violation of dormant Commerce Clause; discriminatory provisions severable from the rest of the Act.
- And Finally, Let’s Go Brandon! is brought to us this week by City of Austin v. Powell, in which, “Officer Brandon Bender was responding to a check-welfare call when he heard “six or seven” gunshots ring out in the neighborhood. Four additional shots followed within about fifteen minutes, and they “sounded even closer than the first shots.” We have questions. What in the name of Randy Travis was Officer Bullock doing in the fifteen minute interval between the first six/seven shots and the subsequent four? There’s no indication given that he was in the process of investigating the first six/seven. And are we alone in detecting a certain indifference/bemusement in the “sounded even closer” remark? “Just me, or is the gunfire a little light tonight, Brandon?” Is it time that someone should finally look into actually Messing With Texas? The Ghost of Santa Ana? Walker, Texas Ranger? Ain’t gonna be me.
- A Suspenseful New Year in Public Finance.
- S&P U.S. States 2025 Outlook: Eyes On Washington, Focus On Budgets
- UMB Bank NA v. Harvest Gold Silica Incorporated – District Court holds that industrial operation that had defaulted on $22 million in revenue bonds had not carried their burden to justify a stay in connection with their litigation and bankruptcy actions, granting sanctions.
- State of New Jersey ex rel. Edelweiss Fund LLC, v. JPMorgan Chase, et. al. – Appellate Court dismissed the claims brought by state concerning the robo-setting of VRDOs on the grounds (inter alia) that the information relied upon by plaintiffs to establish their robo-setting claims was at all times publicly-accessible and available to plaintiffs. Blast from the past here, but an excellent opinion in the (unlikely) event that you encounter this scenario.
- Modernizing California Municipal Reporting Conference.
- And Finally, Rebirth Of The Utah Empire Of Gaul is brought to us this week by Mariani v. Utah Department of Public Safety-Driver License Division, in which, “Randi Mariani crashed her motor scooter and sustained a serious injury during a driving skills test, which she was taking to obtain a motorcycle endorsement to her driver license.” Rather than (literally/figuratively) limp off in shame, Randi instead opted to sue the Utah Department of Public Safety-Driver License Division, demanding that it issue her the endorsement regardless. In Brooklyn, this is known as “chutzpah,” were they most certainly know the correct pronunciation of this Yiddish term. The mind boggles in horror upon contemplating the Utah pronunciation and they should just (literally/figuratively) limp off in shame. Yahweh forbid they attempt “challah.” Much less “tchotchke.” Oy Veh indeed
- BCB Year In Review: Bit less sucky than last year.
- How Big Banks See 2025 Muni Outlook: Bloomberg Masters of the Muniverse
- BlackRock ETF Buys First Muni Bonds Issued Through Blockchain.
- A Long Winter’s Nap? SEC Off-Channel Communications Enforcement May Draw to a Close: Holland & Knight
- Press Release: SEC Charges Silver Point Capital with Policy Failures Regarding Receipt of Material Nonpublic Information About Bonds Issued by Puerto Rico.
- Hedge Fund Silver Point ‘Refused to Settle’ SEC Puerto Rico Suit.
- Strengthening Municipal Cybersecurity: Nixon Peabody
- Cottonwood Development Corporation v. Preston Hollow Capital, LLC – Court of Appeals holds that Lender did not materially breach the terms of the agreement for the loan of $35 million to borrower, a local-government corporation, by only tendering approximately $12.5 million of a promised $15 million advance and by failing to release from escrow the remaining funds, in action in which lender asserted cross-claims against borrower for breach of contract and declaratory judgment that it lawfully owned the escrowed funds, that it was legally entitled to foreclose on mortgaged property, and that the loan agreement and all other loan documents were valid and enforceable; lender disbursed the full $15 million into escrow for borrower’s benefit at closing, consistent with the agreement, and city and corporation’s representatives agreed that approximately $2.5 million could remain in escrow.
- And Finally, You’re Either Part of the Problem, Part of the Solution, or Part of the Asphalt is brought to us this year by Klumpp v. Ochsner Clinic Foundation, in which visitors to a medical clinic continued to trip and fall over a handicapped parking sign in the parking lot. It is our conjecture that the sign was simply confused as to its role, believing its prime directive was not to direct visitors to the appropriate parking spaces, but rather to welcome them to the ranks of the (newly) handicapped. As of yet, Stephen King has not been burning up our phone lines. Yet.
- SEC to Charter Schools: Use Registered Municipal Advisors – Orrick
- Resource Explores Local Government AI Use, Offers Advice.
- Report Details How States Can Implement Reliable, Effective Generative AI.
- GFOA 2025 is Open!
- Validation of Up to $27,600,000 Trust Certificates Evidencing Proportional Interests in a Lease by Simpson County School District – Supreme Court of Mississippi holds, as was relevant to validation of trust certificates, that notice published by school board as to its “Capital Lease Resolution of Intent” for a lease/leaseback transaction met the statutory requirements of the Emergency School Leasing Authority Act (ESLA); despite argument that notice did not provide details on the financing or the specifics of the project, notice stated that a need existed for up to 10 school facilities, that the district could not provide the necessary funds to meet the present needs, and that the district would sell, lease, lend, grant, or otherwise convey facilities, and that title to any real property transferred by district would revert to district at expiration of term that would not exceed twenty years, and notice further informed reader of how to challenge board’s resolution.
- In re Financial Oversight and Management Board for Puerto Rico – U.S. Court of Appeals holds that holders of revenue bonds issued by the Puerto Rico Electric Power Authority (PREPA) – before it entered reorganization proceedings under PROMESA – have a non-recourse claim on PREPA’s estate for the principal amount of the bonds, plus matured interest; this claim is secured by PREPA’s Net Revenues (as that term is defined by the underlying bond agreement) and by liens on certain funds created by that bond agreement.
- And Finally, Eatin’ Good In The Municipality is brought to us this week by The Misfiring Synapses In Your Editor’s Brain. While perusing public finance cases this week, he somehow misread “Appellees” as “Applebee’s.” Not wanting to waste an opportunity as manifestly misguided as this, BCB is now sponsored by Applebee’s International, Inc. “Come for the serviceable public finance law! Stay for a serviceable meal!” Or something like that.
- SEC Informational Bulletin: What Charter Schools Should Know About Municipal Advisor Regulation
- Munis Tumble After Trump Victory Ignites Deficit Concerns.
- NFMA Advanced Seminar on Critical Infrastructure for Water/Sewer & Public Power Issuers.
- Hansard v. Zamora – In citizen’s suit brought against School Board following his challenge to bond election and validation, District Court holds that § 1983 claim against the School Board members did not pass muster because a § 1983 plaintiff who alleges mistreatment at the hands of a group must describe with particularity the actions taken by each of them individually.
- And Finally, We’ll Probably Need To Loop In The Fire Marshall is brought to us this week by the National Federation of Municipal Analysts’ notice of its Advanced Seminar on Critical Infrastructure for Water/Sewer & Public Power Issuers. While scrolling through the standard-issue list of keynotes, round tables, and task forces, we encountered the following bullet point: “Fireside Chat with Jefferson County, Alabama.” Ok. We have questions. And concerns. With a county-wide population of 662,895, are we absolutely sure about the “chat” format? Allocating approximately 3 minutes per comment, will the 331,000 hour comment period include bathroom breaks? Will there be valet parking? And then there’s the “fireside” part of the proceedings. We’ll have to get back to you on that one.
- MSRB Seeks Input on Rate Card Fee-Setting Framework.
- Muni Disclosure: Time to Bring In SEC?
- S&P Sustainability Insights: Rising Insurance Costs And Mounting Affordability Challenges Could Weigh On Some U.S. Governments’ Creditworthiness [Risk Factor candidate. Is there some other kind of candidate thingy going down today?]
- CDFA Advanced Tax Increment Finance Course. [Nov 13!]
- Bond Financing for Manufacturers & Non-Profits: CDFA // BNY Development Finance Webcast Series
- Exploring Common Bond Reserve Funds: CDFA // BNY Development Finance Webcast Series
- Arizona Town Ditches Illegal Attempt to Dump $70 Million Debt on Residents.
- State v. Decatur County-Bainbridge Industrial Development Authority – Georgia Court of Appeals holds that state had no basis to appeal trial court’s order granting state’s petition to validate taxable revenue bonds to fund construction and development of primate breeding facility, and thus, dismissal of state’s appeal of order was warranted, where state was party who sought order (based upon alleged newly-discovered defects in the validation petition).
- And Finally, A Truly Warranted Sick Day is brought to us this week by Morales v. City of Georgetown, in which Sheriff’s Deputy Jaime Morales had a particularly, uh, challenging day on the job. When the court’s opinion in your case includes phrases such as, – “threat matrix assessment” “at the Cracker Barrel” “The actual events that transpired that night however, did not unfold according to the purported plan” (Ouch. Yeah, I did add that emphasis. What you gonna do about it?) “When the SRT members saw that Reynolds was brandishing a gun, they fired their own weapons, killing Reynolds.” “Amid this chaos, however, Morales was also shot in the spine.” “The bullet that injured Morales is still lodged in his spine, and therefore unable to be subjected to ballistics testing.” (“You can’t really dust for vomit.“) “made t-shirt to raise money for his recovery” – there’s a reasonable likelihood that it has truly been a crap day. Up to and including the shot in the spine business, what truly breaks my heart is the Cracker Barrel part. And maybe also the t-shirt part.
- MSRB Analysis of Primary vs. Recently Issued and Competitive vs. Negotiated Municipal Securities Markets.
- Faster US Settlement Hit Harder Than Expected, Citi Survey Says.
- GFOA MiniMuni Sessions Announced.
- Texas Officials Sued Over Anti-ESG Law Targeting Wall Street.
- Alabama Hospital Defaults on Municipal Debt as Expenses Soar.
- Why Miami Struggled to Sell its First Forever Bonds.
- Bonta v. Superior Court of Sacramento County – Court of Appeal holds that ballot label that described proposition as allowing approval of local infrastructure and housing bonds for low- and middle-income Californians with 55% vote complied with statutory requirements of a concise and accurate description in terms that were not misleading, despite argument that label should have stated that existing law required a 2/3 vote to approve such bonds.
- And Finally, Tis But A Scratch is brought to us this week by City of Atlanta v. Perkins, in which the jury awarded $2,361,700 in damages and $944,680 in attorney fees. $944,680. Laissez les bons temps rouler, mes amis. Imagine the elation. Imaging the deflation as the trial judge JNOVed that fee award because pedestrian, “did not plead such fees in his complaint or amended complaint.” How do you miss this? How do you not through take 90 seconds to drop in some boilerplate requesting attorney fees? From a million to nada. How? But we’re quite sure that everyone had a good chuckle back at the firm. No?
- Ed. Note: We’ll be off next week. You’re welcome.
- Hawkins: The Regulatory Impact of Jarkesy, Loper Bright, and Corner Post
- Profiting From Financings for Charter Schools: SEC Sues Unregistered, Fee-Splitting Municipal Advisor – Norris McLaughlin
- Proposed Rule Change Consisting of Amendments to MSRB Rule G-14 and to Amend FINRA Rule 6730: SIFMA Comment Letter
- Institutional Investors Pay Half Price of Retail Buyers in Muni Trades.
- Texas Drought Forces Small Town to Default on Water System Debt.
- Buffalo’s Home County to Issue ‘Bills Bonds’ for NFL Stadium.
- River Creek Development Corporation and City of Hutto, Texas v. Preston Hollow Capital, LLC – Court of Appeals upholds validity of conduit bonds issued by city and local government corporation formed to assist with the financing of a newly-created public improvement district, finding that the parties had lawfully entered into an interlocal agreement, including its provisions requiring the city to make payments from its levied assessments to the local government corporation to secure its issuance of indebtedness to finance the improvements.
- And Finally, When We Remember We Are All Mad, The Mysteries Disappear And Life Stands Explained – Mark Twain is brought to us this week by Ryan v. State, in which Ray Ryan was remanded to solitary confinement (only those of us who’ve had the pleasure are allowed to refer to is as “The Hole”). Upon his return to the general population (of the prison, not the State of Nebraska) he discovered that the property left behind in his cell had been stolen. He then sued the Nebraska Department of Corrections to recover the value of said property. In the amount of $496.05. Four Hundred. Ninety Six. And Five Cents. Your Editor’s life (such as it is) has come to a screeching halt. The (imaginary) girlfriend has left. The cat has died. All because he can think of nothing else but the galactically gob-smacking mystery of how Mr. Ryan arrived at the five cents. Fortunately, we still have 5 to 10 to get to the bottom of this. Or less, with good behavior.
- S&P: What The Loper Decision May Mean For U.S. Public Finance
- GASB Chair: SEC’s Financial Data Transparency Rule Aligns with Expectations, but Raises Industry Concerns
- Shelved Muni Sales Return to Market After Volatility Eases.
- Citi, UBS Leave Behind $50 Billion Muni Opportunity for Rivals.
- America Has a Hot Steel Problem. [Risk Factor material]
- Exploring New IIJA Bond Categories: CDFA Webcast
- Novogradac 2024 Housing Tax Credit and Bonds Conference.
- BofA Snubbed by Louisiana’s GOP Treasurer in ESG Culture Wars.
- And Finally, Double Secret Probation is brought to us this week by Johnson v. City of Bozeman, in which we are informed that, “Plaintiffs had been under the impression that new Greek housing was not permitted.” I mean, I’m no fan of the Greeks either (frankly, who is?), but I at least have the discretion to keep that more or less to myself. Swarthy little people with their tzatzikis and souvlakis and bouzoukis who’ve contributed nothing to the world, other than a few commemorative trinkets like philosophy, democracy, theater, and the Olympic games. Hirsute ingrates. Wait. We’re confused. Apparently Greek college students live together in houses with very sticky carpet? Maybe if we let them build new housing they could just burn the old stuff to the ground. Like the Trojans did.
- What Cyberattacks Do To Municipal Issuers’ Borrowing Costs: Brookings
- Cyberattacks Still Ravage Schools, Defying White House Efforts Launched Last Year.
- Competitive Underwriters Face Mounting Pressure, Competition.
- GFOA On-Demand Accounting Courses.
- Orrick: FINRA Fines Firm for Bond Markups and Failure to Comply with Fair Pricing Regulations
- And Finally, You Say It Like It’s A Bad Thing is brought to us this week by Jacobs v. City of Columbia Heights, in which a city council member – Kay Jacobs – found herself facing a recall after she, “used a fake name and made derogatory comments about the heritage and family background of a person running for city council during a telephone call with that person.” This rocket surgeon called the candidate from her own mobile, which displayed the name “Jacobs Kay” on the candidate’s phone. After careful sleuthing, it was suggested that – just possibly – “Jacobs Kay” was in fact Kay Jacobs. We know, tenuous at best. Kay’s improvised alibi was that, “the call was likely made by her husband’s niece, a woman she described as having ‘low-level mental health issues.'” How’s that for getting tossed under the monorail? I’m not sure that Kay understands that, for many of us, “low-level mental health issues” is not a criticism, but rather an aspiration
- The Costs and Benefits to Municipal Bond Issuers of Close Ties to Banks.
- CUSIP Returns Fire Over Plan to Use FIGI as Identifier.
- Long Fiscal COVID: The Lingering Governmental Disease
- City of Hardeeville v. Jasper County – Court of Appeals upholds the validity of development agreement entered into between adjoining counties for the development of a multi-county business park (MCBP) – funded by special source revenue bonds secured by FILOT payments – in challenge brought by city that had annexed a part of the MCBP property, holding that: 1) city’s consent to the agreement was not required; 2) city was required to make FILOT payments to service the bonds; and 3) city could not levy its own taxes on the annexed property.
- Entergy Arkansas, LLC v. Federal Energy Regulatory Commission – U.S. Court of Appeals affirms FERC’s approval of tariff changes proposed by electrical grid operator to, inter alia, switch from annual to seasonal capacity market, including new accreditation methodology.
- And Finally, The Road Less Graveled is brought to us this week by American Warrior, Inc. v. Board of County Commissioners of Finney County, Kansas, in which we automatically got a little patriotic in our pants at the mere mention of American Warriors. Those brave men and women who have, throughout our proud history, courageously defended this divinely-appointed bastion of freedom, liberty (and pumpkin-spice Slurpees). And God help any Board of County Commissioners that dares stand against them. Traitors all. We stand, salute, and thank them for their service as, as, as, uh, operators of a sand and gravel quarry? When did we collectively decide that our coffee must be tactical? Who decided that lithium-iron batteries must be battle born? But we can clearly all agree that our sand and gravel needs must be met by warriors. American Warriors.
- BLX/Orrick 2024 Post-Issuance Compliance Workshop.
- S&P Criteria | Governments | U.S. Public Finance: U.S. Public Finance Long-Term Municipal Pools: Methodology And Assumptions
- S&P: Criteria Released To Clarify Method For Determining Ratings-Based Inputs
- Would a 10% Cash Buffer on Open-End Bond Funds Reduce Fire Sales?
- The Devil Is In the (Financial Reporting) Details.
- Governments, Get Your Refundable Tax Credits Here.
- In re Puerto Rico Public Finance Corporation – Court of Appeals holds that under New York and Puerto Rico law, respectively, bond indenture and master transfer agreement, as the final transaction documents governing Debt Recovery Authority’s issuance of bonds, only limited the maximum amount of bond issuance and included no valid claim requirement, and although preliminary documents did contain such requirement, those documents made clear that they were provisional, and the final documents stated that they replaced any earlier agreements.
- And Finally, Putting The Yelp In Yelp is brought to us this week by State ex rel. Black v. East Cleveland, in which Arnold Black was arrested during a traffic stop by East Cleveland police officers, “even though the officers admitted that they had no legitimate reason for stopping and detaining Black since Black had not committed a crime.” Just an honest mistake. Everyone had a good laugh and went about their respective days. Except no. “During the stop, Detective Randy Hicks began questioning Black about who sells drugs in East Cleveland. When Black replied that he did not know, Detective Hicks became violent and repeatedly struck Black’s face and head without provocation or justification. Hicks called another officer to transport Black to the East Cleveland jail where Black was placed in a storage room that the police officers referred to as a holding cell. The room was infested with cockroaches and contained a wooden bench, some storage lockers, and cleaning supplies, with no bed or toilet. Black was kept in the storage room for four days.” And it only cost ’em $25 million! Which they then forgot to pay. I hear East Cleveland is lovely this time of year, but I must admit that this tale gave me pause. Does Yelp offer minus stars?
- SEC, MSRB, FINRA to Hold Hybrid Compliance Outreach Program.
- SIFMA: Life in the (Fixed Income) Fast Lane
- Munis Present $1.6 Billion Opportunity for E-Trading, BofA Says.
- Forbes Special Report: Economic Drivers Of AI And The Municipal Bond Market
- How IRA Elective Pay is Helping Cities Meet Climate Action Plans
- And Finally, I’ll See Your Blonde Girl And Raise You A Blonde Boy is brought to us this week by Cajune v. Independent School District 194, in which a group of parents petitioned the school district for permission to hang Black Lives Matter posters in the school, while a very different group of parents welcomed the move with equanimity, grace, and dignity… Ha! (As a side note, has there ever been a better time to be a high school principal? Wait, we meant to say Taco Bell Assistant Manager.) The one thing we can all agree on is that the nation is calling out for the opinion of an uninformed middle-age white man, so here I go… Ha! The opinion did include a gloriously bewildering sentence, “In one final poster, the District revised a draft version to replace a blonde girl with a blonde boy.” Well there’s something we can all agree on?
- Ed. Note: Now hear this. We will be off next week, returning with ye olde double dose o’ drivel July 9. That is all.
- Markup or Markdown: National Underwriters’ Exit and the Changing Landscape of Municipal Finance
- Citigroup, UBS Exit Munis After Market’s Profits Plummet by 50%.
- Reminder: 13th Annual Brookings Municipal Finance Conference
- And Finally, Have Fun Storming The Castle! is brought to us this week by Hayes v. Penkoski, in which the Supreme Court of Oklahoma gifted us with this immortal, absurdist sentence: “Penkoski allegedly stood on the street corner and yelled into a bullhorn for several hours, shouting slurs across the street toward the children’s bouncy house.” Firstly, I’m not sure that the “allegedly” is strictly necessary under these circumstances. You yell at a bouncy house via bullhorn, yelling slurs for several hours, or you don’t. Not a terribly nuanced display to which (un)reasonable minds might disagree. Secondly, there’s no such thing as a split-level bouncy house. It’s a castle, dummkopfs.
- Credit Rating and Geography: Examining the Timeliness of Municipal Bond Audits
- SIFMA State Disclosure Review Highlights.
- Lies and Half-Truths and Omissions, Oh My! Considering Rule 10b-5(b) after Macquarie Infrastructure Corp. v. Moab Partners L.P. from a Public Finance Perspective – Bowditch
- From Harvard to Wisconsin, Muni Issuers Jump on Buyback Wave.
- Kutak Rock Attorneys to Present Tax Credits and Direct Pay for Clean Energy Webinar. [This Thursday!]
- Trial Over Austin’s Project Connect Financing Model Halted by Appeal from Texas AG.
- WSJ: Puerto Rico Bondholders Win Back Rights to Electricity Revenues
- In re Financial Oversight and Management Board for Puerto Rico – Court of Appeal holds that, under Puerto Rico law, preamble to trust agreement under which Puerto Rico Electric Power Authority (PREPA) issued revenue bonds was not merely a non-binding prefatory clause but, instead, was an operative lien-granting clause and that trust agreement granted bondholders a lien on PREPA’s net revenues. [There’s quite a bit going on here, so you bankruptcy sickos should take a closer look. You know who you are.]
- And Finally, Come For The Sanitation, Stay For The Sinkholes! is brought to us this week by Garcia v. City of Omaha, in which Salvador Garcia was driving his garbage truck in. the ordinary course of sanitation when, “the road collapsed beneath Garcia’s truck, the truck fell into a sinkhole.” Perhaps not the greatest look for the City of Omaha and the structural integrity of its infrastructure. But what if Salvador offended the Almighty, who rose up and smote (smited? smoted?) him. “As soon as he finished saying all this, the ground under them split apart, and the earth opened its mouth and swallowed them, with their households and all Korah’s men and all their possessions.” Numbers 16:31. Or maybe he just offended the God of Waste Management, who also knows that whole earth-splitting/swallowing trick.
- MSRB to Retire Selective Interpretive Guidance Regarding Inter-Dealer Confirmation Disclosures.
- AI And The Municipal Bond Market: Oceans Of Data
- A $180 Billion Program to Spur Government Spending Is Backfiring.
- NY’s MTA Mulls Replacing Build America Bonds With Lower-Cost Debt.
- Water Works and Sewer Board of City of Prichard v. Synovus Bank – Supreme Court of Alabama holds that, when granting motion by trustee under bond indenture of city water works and sewer board to have a receiver appointed pursuant to the indenture and Alabama law due to events of default, trial court properly exercised its discretion in vesting the receiver with all powers necessary to administer and operate the system, despite argument that receiver’s powers should have been limited to the enforcement of ministerial duties of the board and trustee’s should not have had control of the receiver’s decisions; trial court balanced the competing interests of the parties by considering their respective equities and obligations, all for the benefit of creating a viable system to provide water and sewer services that would enable the bondholders to not lose their investments.
- And Finally, Well That Could Have Gone Better is brought to us this week by City of Houston v. Sauls, in which no less than the Texas Supreme Court was brought in to untangle a series of extraordinarily unfortunate events. Officers Hewitt and Curtis of the Houston Police Department were on a routine patrol when they were directed to respond to, “a suicide in progress with a female patient that was irate, destroying property, and had a knife.” (In other words, the average BCB employee.). En route, things went just a wee bit sideways when their patrol car hit – and killed – a cyclist. No word yet on whether the cyclist was himself suicidal. Seems doubtful. Officers Hewitt and Curtis were sentenced to a stupefying amount of paperwork. Maybe time to call in a shaman and sacrifice a rooster or something? Maybe a goat?
- SEC Instituting Proceedings on FINRA and the MRSB’s Proposals to Shorten Trade Reporting Timelines in Fixed-Income Markets: SIFMA Comment Letter
- The City Using Blockchain to Bring Munis to Investors.
- Bill Would Restore Advance Refunding, Create New Direct-Pay Bond.
- New Legislation Would Expand the Use of Municipal Bonds: Mintz
- Convention Centers Bounce Back as Cities Borrow for Makeovers.
- Interesting telecom for California practitioners here.
- Florida PACE Funding Agency v. Pinellas County – District Court of Appeal holds that sword-wielder doctrine as exception to home-venue privilege did not apply based on county’s allegations that bond validation judgment, which permitted Florida Property Assessed Clean Energy (PACE) Funding Agency (FPFA) to finance residential improvements statewide without regard to county ordinance, violated county’s constitutional “home rule” powers, in action against FPFA.
- And Finally, Never Mind About The De Part Of De-escalation is brought to us week by Heeter v. Bowers, in which police officers responded to a call (Wife: “Please don’t shoot him.”) involving a suicidal individual and almost immediately pumped 5 rounds from an M16 into his chest, which, uh, kinda rendered the whole suicide thing pretty definitely moot. Just prior to the shooing, one officer’s body cam recorded him saying the gloriously absurdist line: “Where’s the gun? I see the cat.” Sadly, Mr. Bill G. Heeter came up 8 lives short.
- MSRB Amends Rule G-27 to Harmonize with FINRA and Adopt the Residential Supervisory Location Classification.
- GFOA: GASB 102 and More Disclosure for You
- Proposed Rule Change To Amend MSRB Rule G-47, on Time of Trade Disclosure, To Codify and Retire Certain Existing Interpretive Guidance and New Time of Trade Disclosure Scenarios: SIFMA Comment Letter
- Flood of Property Assessment Appeals Could Wallop U.S. Cities. – [Ed. Note: Potential Risk Factor.]
- What the Hazardous Substance Designation of PFAS Chemicals Means for Local Governments. – [Ed. Note: Potential Risk Factor.]
- Coming Up: NFMA Advanced Seminar on Higher Education
- Securities and Exchange Commission v. City of Rochester, New York – In fee-splitting case, U.S. District Court holds – as matters of apparent first impression, that: a) MSRB rule required advisor to disclose all contingency fee arrangements based on size or closing of a transaction; and b) negligence standard governed statutory and regulatory claims of a municipal advisor’s breach of fiduciary duty to a municipal client.
- City of San José v. Howard Jarvis Taxpayers Association – Court of Appeal holds that unfunded liabilities incurred by city’s employee retirement funds qualified as “other evidence of indebtedness” under statutory definition of “revenue bonds,” for purposes of statute authorizing city to issue bonds for the purpose of refunding any of city’s revenue bonds, and thus city had authority under the statute to issue pension obligation bonds as refunding bonds to refund the unfunded liability as “revenue bonds.”
- And Finally, We Put The Ordnance In Municipal Ordinance! is brought to us this week by Barris v. Stroud Township, in which, “The question we face in this appeal is this: Does the discharge ordinance, when considered alongside the zoning ordinances limiting shooting ranges to two non-residential districts in the township, violate the Second Amendment on its face?” Oh! Guns. In Your Editors experience, the word “discharge” has always been accompanied by the word “penicillin.” We were genuinely concerned about the prospect of adding “ordinance” to that list.
- Forbes: AI And The Municipal Bond Market.
- GFOA Utility Finance Forum Virtual Networking Event.
- Reminder: 118th GFOA Annual Conference
- WSJ: Texas Ban on ‘Woke’ Banks Opens Door for Smaller Firms.
- Bonds for Florida High-Speed Rail Pop in Market ‘Starved’ for High-Yield Munis.
- Muni Bond Sales Soar as Issuer Needs Exceed Worry on Fed.
- And Finally, Home Sweet Home is brought to us this week by T&C Construction Services, LLC v. City of St. Albans, in which “The City of St. Albans first inspected the premises after a tenant contacted the Fire Marshal to inform him about a fire. Inspection revealed a number of fire hazards including exposed wires, exposed electric panels, storage of combustible materials under the stairs, no fire extinguishers, combustible fuel sources and combustible carpet directly in front of the heating source, inadequate alarm systems, a portable space heater built into the steps, abandoned wiring, permanent use of extension cords throughout, and combustible fuel engine equipment in the building.” Other than that, nice place to raise a family. We’re thinking that “slum lord” fails to capture the majestic flaunting of the laws of god and man, so we’re gonna move these folks up the peerage. Slum Viscount? Slum Duke? Either way, it’s Relocation, Relocation, Relocation. for the tenants of this lovely locale.
- Muni Regulator Flags Risks of Buying Build America Bonds,
- A Range of Emerging Fiscal Risks Could Disrupt State Budgets.
- EPA Issues PFAS Enforcement Discretion Policy Addressing Environmental Cleanup Liability: Spencer Fane
- Tax Code Constraints Limit Tribal Tax-Exempt Bonding.
- Final Municipal Tax Credit Regulations Present Opportunities for Clean Energy Projects.
- GFOA’s Best Practices Forum.
- Oklahoma Republicans Weigh Rolling Back Anti-ESG Law They Passed.
- Supreme Court Texas eminent domain case here.
- And Finally, I Don’t Know What To Believe Anymore! is brought to us this week by Ex parte City of Montgomery, in which decedent’s attorneys vigorously challenged the veracity of two police officers based upon their wildly divergent accounts of the events in question. While Officer Favor testified that he heard “a ‘clicking noise’ before he heard the vehicle’s engine engage, Officer Davis stated that he heard a ‘clunk.'” Which was it?!! A click or a clunk? Similarly, “Davis stated in his affidavit that he lost sight of Favor and fired his weapon because, ‘Favor was subject to being seriously wounded or killed if the vehicle were placed in drive.’ However, in his prior deposition, Davis testified that he had lost sight of Favor and fired his weapon because ‘it appeared that Favor was being run over by the vehicle.'” Who can keep track of all the lies?!! Fortunately, the third party on scene didn’t get the chance to further muddy up the waters ‘cuz, uh, the two officers, uh, kinda shot her.
- Get Involved with GFOA’s Utility Finance Forum.
- Citi’s Muni Exit Creates Liquidity Test If Downturn Hits Market.
- New Federal Program Provides Grants for Eligible P3 Transportation Projects: Holland & Knight
- Information for Florida practitioners from our friends at Holland & Knight here.
- Information for Wisconsin practitioners from our friends at Foley & Lardner here.
- Sheetz v. County of El Dorado, California – Supreme Court of the United States holds that the Nollan/Dolan test for determining whether a fee imposed as a condition for a land use permit constitutes an unconstitutional taking under the Fifth Amendment applies to both legislative and administrative permit conditions; abrogating precedent.
- Florida PACE Funding Agency v. Pinellas County – Although merely a decision regarding choice of venue at this point, substantive question to be decided is whether the court’s opinion in a bond validation for $5 billion of Florida PACE Funding Agency (FPFA) bonds will allow the FPFA to operate statewide, without regard to municipal or county PACE ordinances.
- And Finally, AND Vegetables?!! is brought to us this week by Colyear v. Rolling Hills Community Association of Rancho Palos Verdes, in which we learn that Rancho Palos Verdes began development in the 1930s, featuring, “large lots which offered the ideal outdoor life, seclusion, privacy, recreation, horseback riding, cultivation of fruits and vegetables, and the enjoyment of a country atmosphere, all protected by good restrictions.” Well that sounds lovely! Just to clarify, those “good restrictions” of which you speak were there to protect the rights of people of all colors, class, and creed to cultivate fruits and vegetables together in perfect harmony, right? Right? Just like Washington dreamed!
- BLX/Orrick 2024 Post-Issuance Compliance Webinar.
- Inflation Reduction Act Elective Pay: Best Practices – GFOA Webinar
- Economist at Top Muni Bank Pitches End of Local Bond Tax Break.
- Fitch Publishes US State Governments and Territories Criteria to Replace US Tax-Supported Criteria.
- Greenwich Investment Management Incorporated v. Aegis Capital Corporation – In suit brought by investment advisor against underwriter following insolvency-related bond losses, District Court holds that investment advisor had not established the minimum requirement for an injury-in-fact – that the plaintiff have legal title to, or a proprietary interest in, the claim, rather than merely acting as the attorney-in-fact for its clients with discretionary authority to make investments on their behalf. Court notes that jurisdictional issue can be cured via a supplemental pleading (even if characterized as a motion to amend) establishing that investment advisor has received assignments from its bond-buying clients.
- And Finally, Great Moments In Understatement – Possibly Demented Department is brought to us this week by Olsen v. State, in which a dispatcher received a “911 call reporting a suspicious person, potentially demented, at an apartment complex.” This would be one Anthony Hill. The caller stated that Hill, “wearing shorts but no shirt or shoes, was seen lying face down on the concrete, crawling along the ground, and hanging from balcony railings” before finally “removing all his clothing.” (Like you do.) The stunning conclusion reached by the manager of the apartment complex – and seconded by the assistant manager – was that Hill, “was not acting normal.” Jeez. Talk about jumping to conclusions…
- Ed. Note: The BCB giveth and the BCB giveth away; blessed be the name of the BCB. All of which is simply a mildly blasphemous way of saying that almost nothing happened this week. Please go to Yeah, Right.com to request a 1/50 refund of your subscription price.
- First Issue of GFOA’s Public Finance Journal Released.
- Unpacking the American Rescue Plan’s ‘Revenue Loss’ Provision for Local Governments.
- S&P Default, Transition, and Recovery: 2023 Annual U.S. Public Finance Default And Rating Transition Study
- Prices Are Stable on Maryland Bridge and Tunnel Bonds: WSJ
- Disney Ends Long-Running Feud With DeSantis Over Board Power.
- And Finally, Profiles in Narcissism – Wyoming Edition is brought to us this week by Carson v. Albany County School District #1 Board of Trustees and Williams v. Lundvall, both of which originated in Wyoming. In the first case, the Carson’s sued their local(ish) school district after it refused to construct a school on their ranch, which is 40 miles from the nearest paved road. Not forty miles from the nearest school, mind you, but 40 miles from the nearest paved road. (Ok, ok; we’ll stop adding emphasisises.). Not only is there a great country song in there somewhere, one wonders about the receptiveness to subjects such as biology and geology from those living 40 miles from the nearest paved road. (Sorry, sorry.). In the second case, Mr. Williams sued the city of Gillette after it limited him to only one annual atheist invocation at city council meetings and denied his request to erect an atheist monument in the town square. What the hell is an atheist invocation? And what the hell is an atheist monument? The mind boggles.
- How To Protect Against Harmful SLGS This Spring: Squire Patton Boggs
- FINRA Facts and Trends: March 2024 – Bracewell (See the two “Municipal Securities” entries under “Notable Enforcement Matters and Disciplinary Actions.” (Whatever happened to that Giuliani fellow?))
- Investors Hire Counsel to Challenge $1 Billion University Bond.
- Investors Push Back on Washington State’s $1.1 Billion Muni Bond Deal.
- Purdue University Muni Deal Threatens Over 20% Loss for Holders.
- Texas AG Paxton Asks Judge to Reject Austin’s Bond Validation to Finance Project Connect Improvements.
- Siger v. City of Chester – In a matter of first impression, Supreme Court of Pennsylvania holds that receiver’s proposed modification to financially distressed city’s recovery plan so as to suspend administrative duties of officials who served as heads of city’s various departments, pursuant to provision of Municipalities Financial Recovery Act stating that confirmation of a recovery plan modification had effect of “suspending the authority of the elected and appointed officials” to the extent such authority conflicted with plan’s goals, did not violate Act provision stating legislature generally intended to leave principal responsibility for city’s affairs to elected officials, even though officials at issue were also elected city council members; receiver contended officials refused to cooperate with plan, and legislature intended to prioritize plan over local officials’ prerogatives.
- And Finally, Opinions Vary: A Tale Of Two Toxicologists is brought to us this week by Federinko v. Forrest County, in which Alison Dawkins was found hanging from an extension cord in her home. During the ensuing investigation, her blood was sent out for testing and, “The toxicology report from STL Forensic Toxicology showed no presence of drugs in Dawkins’s blood.” So that’s settled. Ms. Dawkins was later exhumed and, “The toxicology report from Axis Forensic Toxicology indicated that the following drugs were found in Dawkins’s liver: amphetamines, cannabinoids, THC-COOH, analgesics, buprenorphine, norbuprenorphine, anticonvulsants, gabepentin, and multiple stimulants including caffeine, nicotine, and cotinine.” Agree to disagree? Arguments quickly arose regarding whether she would have had, “the cognitive and physical ability to hang herself.” Regardless, we stand in awe of the cognitive and physical ability required to ingest such a pharmacological bounty. RIP, Alison, RIP.
- Ed. Note: We appear to have finally created an issue of actual utility. We apologize for the convenience and can assure you that it won’t happen again.
- Issuers On Notice For Climate Risks.
- Cybersecurity Disclosure Considerations for Municipal Issuers: Bracewell
- A Refresher on Selective Disclosure and Anti-Fraud Rules: Frost Brown Todd
- S&P: U.S. Local Governments Are Turning To Cyber Risk Pools For Savings And Security Benefits
- Puerto Rico Power Authority’s Planned ‘Turbo’ Bonds Seen as Blueprint for Utilities.
- Muni Bond Games and the IRS’ Lurking Arbitrage Vampires.
- IRS Expands Favorable Tax Treatment to Utility Securitizations That Use a State or Political Subdivision as Issuer: Hunton Andrews Kurth
- The Good, the Bad and the Extraordinary – Issuers May Be Able to Call Their Direct Pay Build America Bonds: Greenberg Traurig
- Arbitrage Rebate: Navigating Compliance and Maximizing Retained Earnings – Orrick Webinar Replay
- And Finally, Big Hitter, The Lama is brought to us this week by Temple of 1001 Buddhas v. City of Fremont. 1001, you say? Seems oddly specific, no? You counted, right? But, then again, we are talking about Fremont, CA, which the Court of Appeal described as, “located in a very high fire hazard area and an earthquake-induced landslide zone.” So maybe it’s just straight-up prudent to have 1001 deities of your choosing on standby. But it does feel like 1001 Zeuseses could be one too many.
- SIFMA Comments on Request for Information on Impacts of MSRB Rules on Small Firms.
- Solicitor Municipal Advisors On Watch With New MSRB Rule G-46 In Place.
- MSRB Publishes 2023 Fact Book of Municipal Securities Data.
- Amid Rising Costs, States Scramble to Budget for Natural Disasters.
- Initiative 1935: Sweeping Measure to Limit Ability of State and Local Governments in California to Raise Revenues – Orrick
- Ursinus College v. Prevailing Wage Appeals Board – Supreme Court of Pennsylvania holds that construction project undertaken by private, non-profit college and financed by bonds issued by public authority was not paid for in whole or in part with public funds, and so was not a “public work” covered by Prevailing Wage Act (PWA); in providing conduit financing for project, a private endeavor, authority assigned loan agreement to trustee and then sold bonds to private underwriter, which paid purchase price with private monies directly to trustee, which deposited monies into project fund and then disbursed monies to college or others designated by it for project costs, college alone repaid bond debt from its own revenue, again directly to trustee, which deposited funds into bond fund from which bondholders were paid, at no time did relevant monies flow through authority’s coffers, and neither authority nor taxpayers bore any risk or liability relative to the bonds. [Ed. Note: The opinion also analyzes other financial structures (e.g. TIF) w/r/t this question.]
- And Finally, Menage A’ Tragicomedy is brought to us this week by Jackson County Emergency Medical Service District v. Kirkland, in which all involved were having a genuinely Terrible, Horrible, No Good, Very Bad Day. Scene: 2:45 am, Newcastle, Oklahoma. Party A: Ambulance driver. Party B: Ambulance passenger. Party 3: Tollbooth operator. Stir violently, and voila! Voila what? We’re not sure. Anyway, here’s the footage. Enjoy.
- When does 10% PBU really mean 5% PBU? – Squire Patton Boggs
- Attention BAB Issuers: Extraordinary Optional Redemption is Available – Orrick
- Issuers Expected to Call $20B to $30B of BABs This Year.
- SEC Answers Questions on New Tailored Shareholder Report Requirements: Proskauer Rose [Ed. Note: See the bolded section of “The Staff’s FAQ” for treatment of municipal securities.]
- State Farm Mutual Automobile Insurance Company v. Florida Department of Revenue – District Court of Appeal holds that calculation of property and casualty insurance companies’ adjusted federal income, for purposes of determining companies’ state corporate income tax, required addition of all interest earned from state and local bonds that was “excluded from taxable income” through subtraction from gross income for federal income tax purposes, even if a portion of that interest was also subtracted from companies’ “losses incurred”, which losses were then deducted from gross income to calculate federal taxable income.
- And Finally, Wait, It’s Not The Blessed Virgin Steve? is brought to us this week by Sisters of the Presentation of the Blessed Virgin Mary v. Van Wagenen, in which, in which, in which… Let’s step back, take a deep breath, and just bask in the glory of “Sisters of the Presentation of the Blessed Virgin Mary.” (Don’t at all like the odds on that Van Wagenen guy.) We honestly have no idea where to begin here. Presentation? Like, her overall appearance? An appealingly displayed charcuterie platter? A Holy Roman Apostolic ceremony of which we had previously been unaware? Forgive us, dear Catholic BCB readers, for we (clearly) know not what we do.
- Existing MSRB Dealer and Municipal Advisor Fees Maintained Upon Withdrawal of 2024 Annual Rate Card.
- Average Underwriting Spreads Stagnant in 2023, but Negotiated, Refunding Spreads Rise.
- Proposed Rule Change to Amend MSRB Rule G–14 and FINRA Rule 6730: SIFMA Comment Letter
- GASB Issues Guidance on Disclosure of Certain Risks.
- Remote Work Tax Debate Settled By Ohio Supreme Court Decision.
- Schaad v. Alder – Supreme Court of Ohio holds that income tax statute providing that, for limited time during COVID-19 pandemic, Ohio workers would be taxed by municipality that was their principal place of work rather than by municipality where they actually performed their work did not violate federal due-process limits on taxation power of the State.
- Planning and Conservation League v. Department of Water Resources – Court of Appeal upholds Department of Water Resources’s approval of amendments to long-term contracts with local government agencies that receive water through the State Water Project, including expanding the facilities listed as eligible for revenue bond financing.
- And Finally, When Promenades Attack is brought to us this week by Mayor of Baltimore v. Wallace, in which, “Jamie Wallace, was riding her bicycle through the Waterfront Promenade on her way home from work. While she was cycling, the wheel of her bicycle became stuck in a gap between the granite bulkhead and brick pavers. She was ejected from her bicycle and fell into the Harbor.” But her death was not in vain. Ok, she didn’t actually die, just sustained the usual harbor-related fractures, contusions, and ejections for our amusement (if not hers). As Mel Brooks said, “Tragedy is when I cut my finger. Comedy is when you fall into an open sewer [or harbor] and die.”
- Build America Bond Update: U.S. Supreme Court Declines to Review Federal Circuit Sequestration Ruling – Kutak Rock
- The above-referenced case is here.
- Government-wide Financial Statements, Conversions and Consolidations: GFOA Webinar
- SEC Expands Dealer Definition to Capture Large Traders Regularly Providing Liquidity to the Markets: Goodwin
- Who Will Fill the Void Left by Citi’s Exit From the Muni Bond Business?
- An Overlooked Hospital Performance Metric: Bond Ratings
- Siger v. City of Chester – Supreme Court of Pennsylvania holds – as a matter of first impression – that the section of the Municipalities Financial Recovery Act providing that a receiver’s recovery plan has the effect of “suspending the authority of the elected and appointed officials of the distressed municipality…to exercise power on behalf of the distressed municipality” to the extent the officials’ authority “would interfere with the powers granted to the receiver or the goals of the recovery plan” is not limited to situations where the local officials’ actions contradict some specific and already extant provision of the recovery plan; rather, the officials’ authority may be suspended where its exercise conflicts with, among other things, the goals of the recovery plan.
- And Finally, Gone Phishin’ is brought to us this week by Siger v. City of Chester, in which the Supreme Court of Pennsylvania informed us that, “The City of Chester’s fiscal difficulties are not of recent vintage. The City has been designated as a financially distressed municipality since 1995. For twenty-five years, attempts to improve the financial condition of the City under various recovery plans proved less than sufficient.” Hilariously, “Perhaps the most glaring incident was Councilman Morgan’s involvement in a phishing scam that cost the City approximately $400,000.” And yet. And yet. And yet. The city fought desperately against the receiver’s efforts to fix the damn mess. We need something a bit stronger than chutzpah. Gall? Temerity? Audacity? Huevos grande?
- Registration for NFMA 2024 Annual Conference in Philadelphia.
- Government-Wide Financial Statements, Conversions and Consolidations: GFOA Webinar
- SEC Releases New Guidance on Tailored Shareholder Reports: Troutman Pepper
- Barclays Banned From Texas Municipal-Bond Market Over ESG Dispute.
- UMB Bank, N.A. v. New Port Community Development Authority – After bond default, District Court holds City and Development Authority breached their obligations under the Master Indenture Trust and Special Assessment Agreement, resulting from the failure to enforce collection of delinquent assessments and distribute proceeds from the tax sale auction of delinquent property to the Trustee for purposes of paying debt service on the bonds, notwithstanding defendants’ assertion that it had fulfilled its obligations under the Special Assessment Agreement as it had timely billed and attempted to collect and enforce the collection of Special Assessments.
- And Finally, When Quotation Marks Attack is brought to us this week by Visalia Unified School District v. Public Employment Relations Board, in which the Court of Appeal informed us that, “When students complete work, teachers credit students with full attendance on an “assignment sheet.” Because “accuracy is important,” “school policy” requires a “buddy” to double-check attendance.” Is there some kinda “quotation mark” “advocacy group” of which we are “unaware?” Did “Costco” have some kind of “bulk discount” on “punctuation?” And still they “double down,” informing us that, “The superintendent investigated “deeper” into Ramirez’s errors.” “Deeper?” “”What” “the” “hell” “is” “going” “on” “here?””
- OCC Advises Banks on How to Prepare for Shortening the Standard Securities Settlement Cycle: Troutman Pepper
- Proposed Rule Change To Amend MSRB Rule G–12 To Promote the Completion of Allocations, Confirmations, and Affirmations by the End of Trade Date: SIFMA Comment Letter
- What All Municipal Bond Issuers Should Know About Cybersecurity Risk Disclosure in 2024.
- A Muni Giant Exits the Field. What It Means for the $4 Trillion Market.
- A Senate Committee Is Pondering Climate Risks to Towns’ Credit.
- UIRC-GSA Holdings, LLC v. William Blair & Company, L.L.C. – Court of Appeals holds that facts, fragmented phrases, and language dictated solely by functional considerations that were added by issuer of revenue bonds to copied indenture of trust lacked creative expression required for copyright protection, for purpose of infringement claim against investment bank.
- And Finally, Great Moments In Creatively Elevated Indentures is brought to us by UIRC-GSA Holdings, LLC v. William Blair & Company, L.L.C., in which we learned that, “Without any elevating creativity, the indenture documents consist of little more than an uncopyrightable ‘method of operation’ or “process.” Quoi? Say what, now? Dancing about architecture? We of course all know that indentures are inherently creative, but “elevated creativity” is certainly a much bigger ask. We hereby beseech you to call a junior associate into your office and instruct her to creatively elevate your docs. Double dog dare. The United States Court of Appeals also gifted us the gloriously absurdist phrase, “the creativity in a taxonomy of dental procedures.”
- GASB Proposes Guidance on Disclosure of Certain Risks.
- MSRB Files to Shorten Timeframe for Trade Reporting to One Minute.
- Correctly Calculating Net Investment in Capital Assets: GFOA Webinar
- Senior Care Living VI, LLC v. Preston Hollow Capital, LLC – Court of Appeals holds – inter alia – that trustee’s notice of intent to accelerate debt incurred under bond agreements to finance construction of assisted-living facility, including parenthetical “(subject to further election and notice to you),” was not clear and unequivocal, and thus, subsequent notice of acceleration of debt was ineffective.
- Planning and Conservation League v. Department of Water Resources – Court of Appeal approves Department of Water Resources’ action to validate amendments to long-term contracts with local government contractors receiving water through State Water Project, extending contract terms, expanding facilities listed as eligible for revenue bond financing, and making other changes to contracts’ financial provisions.
- And Finally, Leave No Meth Behind! is brought to us this week by Unruh v. City of Wichita, in which, “Wichita police forcefully apprehended Jason Unruh after he led them on a nighttime car chase down city streets in a pouring rain. The pursuit ended when his vehicle spun out of control, hopped a curb, and came to rest over a sidewalk. He pulled himself out through the driver’s side window holding a bag of methamphetamine and tumbled to the ground. He ignored commands to stop, and officers subdued him as he scooped up drugs that spilled onto the wet pavement.” Please welcome BCB’s new Director of Special Activities, Mr. Jason Unruh. (Well, once he’s released.)
- Megadeals, Lower Rates Set the Stage for Brisk Muni Borrowing in January.
- Wall Street Thrived, Small Towns Lost as Anti-ESG Campaign Raged in 2023.
- Dealers Want Subsection of Rule G-12 Eliminated.
- Proposed Rule Change to Establish the 2024 Rate Card Fees for Dealers and Municipal Advisors Pursuant to MSRB Rules A–11 and A–13: SIFMA Comment Letter
- Regions Bank v. Crawford Health Facilities Development Corporation – District Court approves Indenture Trustee/Receiver’s private sale of substantially all the Assets of the Receivership Estate, primarily health care facilities funded by revenue bonds. [Ed. Note: Nothing particularly interesting about this case, but the opinion is a fantastic bankruptcy checklist.]
- In re Jasper Pellets, LLC – In bankruptcy of industrial facility financed by revenue bonds, Bankruptcy Court holds that proposed global settlement agreement of $655,000 paid to trustee was fair, equitable, and in best interest of estate, and therefore would be approved by Bankruptcy Court in Chapter 7 case converted from one under Chapter 11, in adversary proceeding brought by successful bidder on debtor’s assets at auction asserting claims against debtor for, inter alia, breach of contract, violation of South Carolina Unfair Trade Practices Act, fraud, unjust enrichment, and declaratory judgment.
- And Finally, The Honorable Justice Hemingway Presiding is brought to us this week by Penny v. City of Winterset, in which the Supreme Court of Iowa kindly sets the scene for the drama that ensues. There will be chases, crashes, mayhem – both general and particularized, and a good old-fashioned traumatic brain injury. But to get us all in the mood, the court began its opinion thusly: “Christian Dekker, a police officer for the City of Winterset, was home on his dinner break when he received a call indicating there was an unresponsive female in the parking lot of a local motel.” If this whole law thing doesn’t work out, Justice Christensen (or her clerk) might just have a bright future in literature.
- Ed. Note: We will be off next week – 12/26 – returning with ye olde Double Dose O’ Drivel on 1/2/24.
- S&P U.S. Public Finance 2023 Year In Review: Better Than Expected
- S&P: Pending Federal Regulation Could Significantly Affect Thousands Of U.S Water Utilities
- Best Practices in Debt Issuance and Management: GFOA In-Person Training
- Citigroup’s Muni-Market Exit Sows Fears of a Wall Street Retreat.
- Citi’s Exit Carries Costs for Issuers, Market Liquidity, But Industry Expected to Weather It.
- Fitch: California Retains Ample Tools to Address Deep Revenue Shortfall
- And Finally, Next Up, Drunk Uncle Dan’s Astute Political Musings is brought to us this week by Dundon v. Kirchmeier, in which police officers experienced some serious blowback from their actions. In the intelligence community, “blowback” is the unintended consequences and unwanted side-effects of a covert operation. In this case, the blowback was, uh, perhaps a tad more literal, as “the officers fired tear gas canisters into the crowd. The gas proved ineffective: the wind blew the gas back at the officers…” May your holiday season be free from noxious gases, whether tear gas or those emanating from the various blow-holes of the family members gathered ’round your table.
- The Reach Too Far: SEC Sues Over Botched School Audit – Norris McLaughlin
- GFOA 2023 GAAP Update Encore.
- Hospitals’ Appetite for Borrowing Returns After Pandemic Years.
- Puerto Rico Sales-Tax Boon Means $400 Million Windfall for Bondholders.
- London Witte Group, LLC v. City of Marion – Court of Appeals holds that verdict awarding damages of over $3 million, representing 95% of fault, against advisor which provided financial advice to city regarding city’s financing of a redevelopment project was not excessive, in case in which city asserted negligence and breach of fiduciary duty by advisor, alleging that advisor improperly failed to tell city that developer lacked the money to complete the project, despite advisor’s assertion that it had limited role in outcome given city also alleged wrongdoing by mayor and others with regard to project, including mayor’s receipt of financial benefits from developer.
- And Finally, Max Grin, LLC? Get It? Get It? is brought to us this week by Berrian v. Max Grin, LLC, in which we learned for the first time that Georgia has a Roller Skating Safety Act. Moreover, the Act provides a definitive analysis of what qualifies as a “roller skating center” and who qualifies as a “roller skater.” WERE YOU AWARE OF THIS? HOW IS THIS NOT COVERED IN LAW SCHOOL? WHY IS THIS NOT THE ONLY THING COVERED IN LAW SCHOOL? We thought that we had learned all we needed to know about roller skating from Boogie Nights, BUT APPARENTLY NOT. BCB will be on an indefinite hiatus as we conduct a Talmudic exegesis of this sacred text.
- SEC Approves Amended MSRB Rule G-3 Creating an Exemption for Municipal Advisor Representatives from Requalification by Examination and Related Amendments to MSRB Rule G-8.
- NFMA Introduction to Municipal Bond Credit Analysis
- Tax Compliance for Debt Issuers: GFOA Webinar [Tomorrow! We’ve included this as it purports to prepare issuers for “the types of conversations they should have with bond counsel about these matters.”]
- Process Equipment & Service Company, Inc. v. New Mexico Taxation Revenue Department – Court of Appeals holds – as matter of first impression – that “cost accounting method” within meaning of the Technology Jobs and Research and Development Tax Credit Act’s definition of “qualified expense” is a method for capturing a company’s total cost of production by assessing the variable costs at each step in production.
- And Finally, Great Moments In Nautical Nomenclature is brought to us this week by Carr v. City of Newport Beach, in which we learned that, “After drinking a few beers while kayaking in Newport Bay with a friend, plaintiff returned to a bay-side beach area frequented by families with young children, sometimes referred to as “Baby Beach.” Well this sounds ominous. No one wants to dwell on what happened next, but the ensuing litigation alleged that, “the City failed to take measures to protect against the dangerous conditions, such as removing the groin.” Removing the groin? We had not been aware that this was an option, but it could certainly save considerable bother. Ok, ok. Turns out that a “groin” is a particular type of seawall the dude dived off of, snapping his neck. So all’s well that ends well, you landlubbing sickos.
- Three Takeaways for Municipal Bond Issuers From the New SEC Cybersecurity Disclosure Rules: McGuireWoods
- As Cyberattacks Grow, Cyber Insurance is Increasingly Out of Reach for Many Municipalities.
- ESG Activity in the House Financial Services Committee (HFSC): K&L Gates [See Title X of H.R. 4767, the Protecting Americans’ Retirement Savings From Politics Act]
- Public Debt and the Art of the Float.
- How De Minimis Fears Drive Illiquidity.
- Long v. Town of Caroga – Appeals court holds that citizen-initiated referendum petitions satisfied statutory requirements for permissive referendum on three town resolutions authorizing the issuance of serial general obligation bonds, and thus town was required to fulfill its statutory duty to hold elections on referendums.
- And Finally, Dear Lord Baby Satan is brought to us this week by Satanic Temple, Inc. v. City of Boston, in which the above-captioned, uh, house…of…worship? (we’re unclear on this one) sued the City of Boston, as it “did not invite organization or allow its request to give the invocation [desecration?!] before the start of its weekly meeting.” How would this work? (Presumably, spectacularly.) Hail Satan, full of disgrace? Our Prince of Darkness, who aren’t in heaven? The Dark Lord ain’t my shepherd? God bless you, Church of Satan.
- BLX/Orrick 2023 Post-Issuance Compliance Workshop.
- Get Key Municipal Insights at GFOA’s MiniMuni.
- Financing Essential Infrastructure: NLC 2023 Municipal Bond Market Update
- GFOA: Audits and ARPA – You’re Not Alone!
- P3 State Legislation Update and Opportunities for the Private Sector: Squire Patton Boggs
- IRS Targets Port Arthur, Texas, Bond Issuance for Hedge Bond Violation – Is Your Bond Issue at Risk? – McNeese
- Top (Bottom?) Ten of Tax Headaches (Challenges) for Municipal Bond Issuers: Cozen O’Conner
- And Finally, I Knew Favorable Light. Favorable Light Was A Friend Of Mine. You, Sir, Are No Favorable Light is brought to us this week by White v. Flathead County, in which the court began its opinion by stating that, “The following facts are undisputed, and viewed in the light most favorable to White.” White had been arrested and cuffed by sheriff’s deputies. “While White was on the ground in handcuffs and being restrained by the deputies, deputy Cox kicked him in the head.” So far, so good. The court then notes that, “no officers present gave any indication that the kick was unusual or out of the ordinary.” We are once again gonna climb out on ye olde limb and suggest that none of this – viewed in any light imaginable – seems at all favorable to White.
- Ed. Note: We will be off next week due to court-mandated (in)sensitivity training. Double Dose O’ Drivel 9/5!
- Issuers Urge Supreme Court to Review BABs Subsidies Case.
- Additional ESG Disclosure Requirements Coming for Public Debt Issuers?
- Wall Street’s Most Hated 3 Letters Prove Too Risky to Ignore.
- In Re City of Amarillo, Texas – After city’s voters defeated a proposition for issuance of $275 million in general obligation bonds payable from ad valorem taxes to fund improvement and expansion of the city’s civic center complex, the city council approved a plan in which city would fund the project via the issuance of tax anticipation notes and the future issuance of refunding bonds to refinance the debt, all of which was struck down by the Court of Appeals due to city’s failure to adequately explain the details of this plan in the corresponding agenda item for the meeting at which this plan was approved.
- And Finally, Zombie Apocalypse! is brought to us this week by Linden v. City of Southfield, Michigan, in which, “Emergency medical personnel in Southfield, Michigan, pronounced Timesha Beauchamp dead when she was still alive. Beauchamp was placed in a body bag and transported to a funeral home, where an embalmer discovered that she was not dead.” (Unlike most of our content, we are not making this up.) And spare a moment for the most-certainly-savagely-traumatized embalmer, who is never even mentioned thereafter! The mind reels. Anyhoo, that’s all. Sleep well.
- Municipal Securities Regulation and Enforcement: 2023 Mid-Year Review – Ballard Spahr
- NFMA Advanced Seminar on Transportation.
- Lawmakers Probe Nonprofit Hospitals, Challenge Tax-Exempt Status.
- Wall Street’s Projected Tab on Muni Price-Fixing Suits Expected to Plunge.
- Analysis Suggests Municipal Bond Market Prices Race But Not Climate Risk.
- And Finally, I Know You Are But What Am I? is brought to us this week by Brandy v. City of St. Louis, Missouri, in which we learned that open and constructive dialogue can help bridge the gap between parties with divergent interests and viewpoints, creating the conditions for the understanding and forgiveness necessary to heal this fractured nation of ours. Specifically, a potentially violent civil rights protest was defused when a protestor noted Officer Olsten’s “pepper spray fogger” and declaimed, “If you put that s*** in my face, I’ll f*** you up.” After which, Officer Olsten, “stepped toward protestor and [decorously] responded, “Come f*** me up then.” Perhaps not the soaring oratory of the Lincoln/Douglas debates, but the message was indeed succinctly conveyed. This of course calmed the crowd and led to the peaceful… Ha! The protestors were summarily treated to the wafting aroma of weapons-grade capsaicin. Can’t we all get along?
- US Downgrade Hits Muni Market as Fitch Cuts Billions of Debt.
- Fitch: U.S. Downgrade Has Limited Effect on Public Finance Ratings
- Muni Bank Loans Top $200 Billion to Near Record.
- Illinois Feared Losing to Wall Street Banks Over Muni Price-Fixing Case.
- New GFOA Video: Legacy Lease Accounting
- BDA Forms Fixed Income Technology Clearinghouse to Facilitate Information Sharing, Tech Intel, and Deliverables for US-Focused Bond Dealers.
- Interesting tax case out of New Mexico here.
- Matter of Oklahoma Turnpike Authority – Supreme Court of Oklahoma holds that Oklahoma Turnpike Authority was authorized by statute to issue additional bonds for the construction of two connections to finalize outer loop around city; while statute restricted bonds for construction of any of four proposed turnpikes to one issue under one bond indenture, that provision only applied to initial bond issue to begin construction of the four proposed turnpikes, and Authority had statutory authorization to pay “all or any part of the cost of any one or more turnpike projects,” which allowed authority to later issue bonds for the two connectors. Ed. Note: To truly understand this case, don’t miss the dissent filed by three of the Justices.
- And Finally, Oh. Crap. is brought to us this week by Sunrise Resort Association, Inc. v. Cheboygan County Road Commission, in which the Supreme Court of Michigan informed us that the state has a “sewage-disposal-system-event exception to governmental immunity.” We don’t know about you (and, frankly, have no interest in doing so), but could there possibly be a more glorious phrase than “sewage-disposal-system-event?” We were planning to clue you in on the dirty little secret that we will henceforth be blaming sewage-disposal-system-events for any/all BCB disruptions in service. But it quickly occurred to us that we should not be crying wolf on this one, given the near certainty that the BCB workplace will soon be experiencing an all-too-real one. Crap.
- Orrick: IRS Issues Direct Pay and Transferability Proposed Regulations
- Replacement of London Interbank Offered Rate – GASB Update
- MSRB Proposes One-Time Exemption for Municipal Advisors to Requalify for Certification.
- U.S. Public Finance Long-Term Municipal Pools: Key Information And Characteristics – S&P
- Quantifying Climate Change Risks to the Cost of Municipal Borrowing.
- In a Bad State: Responding to State and Local Budget Crises
- XBRL US Hosts GovFin 2023: Empowering Governments, Modernizing Reporting
- California public utilities case here.
- And Finally, The Gaul! Wait, The Gall! is brought to us this week by Sosa v. City of Woonsocket, in which a police officer admitted to multiple felonies, including breaking into his ex-girlfriend’s house with a gun and assaulting her and other family members. [Hilariously, the Supreme Court of Rhode Island felt compelled to specify that he was, “off duty at the time of these offenses.” Oh, well in that case…] Rather than simply slink off, this particular bozo takes his case all the way to the top, complaining that he couldn’t be terminated yet ‘cuz his admission to the court was not an official guilty plea. All publicity is good publicity? We can happily inform you that the fat lady has indeed sung and Officer Sosa has been thoroughly and properly sacked.
- Ed. Note: We will be off next week – Tuesday, July, 4 – no doubt incapacitated by a severe hotdog/patriotism coma.
- Getting Started: New Elective Pay Option for Local Clean Energy Projects. Note IRS Stakeholder Briefing on Thursday, June 29.
- Upcoming Changes to EMMA User Accounts.
- Very interesting Federal eminent domain case (for you sickos into that kind of thing) here.
- Crossfirst Bank v. Vieste SPE LLC – In motion for class certification brought by plaintiff holders of IDBs alleging fraud against bank, District Court holds that plaintiffs were unable to prove by a preponderance of the evidence that the putative class met the Rule 23 numerosity requirement.
- The National Cybersecurity Strategy: A Guide for Critical Infrastructure Owners and Operators
- Bank of America Seeks Texas Muni Revival After Two-Year Halt.
- And Finally, Dora’s Terrible, Horrible, No Good, Very Bad Day is brought to us this week by Leon v. County of Riverside, in which Dora Leon’s husband, Ken, was shot and killed in his driveway. When police showed up, they heard additional shots and dragged Ken behind a car. ” The movement had caused José’s pants to slide down to his ankles, exposing his naked body. His body remained in that uncovered state for approximately eight hours.” Dora was grievously aggrieved by this injury/insult combo platter and sued, “alleging that county sheriff’s deputies did not promptly cover victim’s body whose genitals were exposed or remove the body from the scene while deputies investigated the shooting and searched for the shooter.” We can only imagine the gloriously awkward eulogy. RIP, Ken. RIP. [Dora, we highly recommend a course of weapons-grade pharmaceuticals.]
- How the A’s Stadium Revenue ‘Waterfall’ Will Repay Public Funds.
- In re Credit Default Swaps Auctions Litigation – In putative class action brought by plaintiffs (quasi-state funds that manage state and state-employee asset funds and retirement accounts) asserting that defendant investment banks impermissibly colluded and conspired to manipulate — or “fix” or “rig” — Credit Default Swap auctions in an anticompetitive manner, District Court denies defendants’ motions to dismiss, finding the plaintiffs adequately pled their claims (e.g. antitrust conspiracy, unjust enrichment, etc.). Ed Note: The first half of this opinion is an excellent primer on the world of CDS.
- In re Gaskill – In action brought by voters dissatisfied with the results of an election approving a school board Independent Schoo. Board’s authority to issue $228MM in school bonds, who filed a writ of mandamus almost six months after the election seeking to compel the Magnolia Independent School District’s Board President to “take such actions as necessary to conduct” a recount, Court of Appeals holds that waiting 171 day after the election to challenge the result, the election became final and the school board president’s duty to duty to order a recount had expired. Ed. Note: This one is interesting in that the plaintiffs were primarily seeking to examine the voting machines used in the bond election, rather than necessarily challenging the bond election itself.
- And Finally, Ya’ Don’t Say – Law Enforcement Division is brought to us this week by Martin v. Tovar, in which it required no less an authority than the frickin’ Supreme Court of Iowa to arrive at the complex, controversial conclusion that a police offer’s sexual assault of an intoxicated woman in his care was outside the scope of of his employment. In what conceivable world would this behavior lie within the scope of his employment? In what conceivable world does it require a state supreme court to arrive at this conclusion? This one belongs on Judge Dredd’s docket.
- NABL Seeks Clarification From IRS.
- Understanding Government Compensation and Payroll: GFOA Webinar
- Hirschfeld v. Oklahoma Turnpike Authority – Supreme Court of Oklahoma holds that agenda items in Oklahoma Turnpike Authority’s (OTA) notice of regular board meeting, stating that the board was to consider various design, right of way, and utility management contracts for the bond and capital program for turnpike construction and improvement program, complied with Open Meeting Act (OMA) section governing notice of public meetings.
- And finally, Careful What You Wish For – Eminent Domain Division is brought to us this week by Kudzu Capital, LLC v. City of Decatur, in which a special master awarded landowner $2.18MM as just compensation for his property. Aggrieved by this manifest injustice, the landowner demanded a jury trial. He was given a jury trial. The jury then awarded him the princely sum of $1.4MM. We’ve run the numbers in our heads and – quite preliminarily – have our suspicions that the second number is in fact less than the first.
- MSRB Adopts Amendments to Rules G-12 and G-15, Shortening Regular-Way Settlement for Municipal Securities Transactions to T+1.
- Burned by BABs, Issuers Look for a Way Out: Orrick
- Attend GFOA Accounting Training in Chicago in July.
- Upcoming NFMA Webinar on ETF Essentials for Muni Analysts.
- Pike Off OTA, Inc. v. Oklahoma Turnpike Authority – Supreme Court of Oklahoma holds that the Oklahoma Constitution permitted the Legislature to enact statute conferring exclusive original jurisdiction upon the Supreme Court to hear and determine an application for bond validation to construct and operate turnpikes, and thus, the statute was constitutional, notwithstanding provision of the Constitution that gave all district courts unlimited original jurisdiction, since the district courts’ jurisdiction was limited where otherwise provided in the Constitution, and the Constitution expressly empowered the Supreme Court to exercise jurisdiction conferred by statute, including the jurisdiction conferred upon it in the turnpike statute.
- And finally, Elderly Man At World’s Worst Nursing Home Or Your Editor’s Monday Night? is brought to us this week by Mercy Housing Georgia III, L.P. v. Kaapa, in which a guy was found “lying face down on the floor covered in urine and feces.” Check. He “was able to grunt in response to questions and could move his left leg.” Sounds about right. “By the time he arrived at the hospital in an ambulance, he was agitated and was attempting to pull IVs from his arm with his left hand.” Yup, and who pulls an IV out with his right hand? “He died two days later.” We’ll have to keep you posted on that one.
- UBS: Regional Banking Crisis Fails to Rattle Munis
- Republican States Move to Block Giant Asset Manager’s ESG Push for Utility Companies.
- JPMorgan Targeted by Republican States Over Accusations of Religious Bias.
- Paxton and Normangee ISD Announce Settlement with UBS to Compensate School District Over State Pro-Energy Law.
- SEC Sets Comment Deadline for MSRB Extension of Remote Office Inspection Relief.
- And finally, There But For The Grace Of God. Oh. Wait. Never Mind. is brought to us this week by Mattson v. Idaho Department of Health and Welfare, in which we noted a series of startling parallels between the plaintiff and the BCB workforce. “Woke up, took a firearm from her gun cabinet, went to the liquor store, bought a bottle of vodka, drank the entire bottle.” Check. “Not entirely candid.” Sounds about right. “Currently had ‘sleep loss, trouble focusing on tasks, and overwhelming stress about everyone and everything.'” If HR is to be believed, yup. We’d view this as a wakeup call, but I’m afraid we’re sleeping one off. Shhh.
- GFOA Accounting for Capital Assets: A Guide for State and Local Governments (2nd Edition)
- MSRB Amendment to Rules G-12 and G-15 on Regular-Way Settlement: SIFMA Comment Letter
- State ex rel. Edelweiss Fund, LLC v. JPMorgan Chase & Company – Court of Appeal holds that qui tam relator stated a claim against State remarketing agents that managed variable rate demand obligations (VRDO), for conspiracy to violate California False Claims Act (CFCA), arising from collusion to inflate VRDO interest rates. Ed. Note: FWIW, the court held that interest rate reset information published on EMMA did not constitute a “report” of the state, nor a public disclosure in “news media,” as required for California False Claims Act’s (CFCA) public disclosure bar to apply.
- Joint Development Authority of Jasper County v. McKenzie – Court of Appeals issues order validating taxable revenue bonds and other aspects of complex project to develop and construct electric vehicle manufacturing facility pursuant to agreements between manufacturer, State, and multi-county joint development authority. Yet Another Ed. Note: This one is essential for those of you poor souls structuring joint development projects, particularly the tax treatment thereof.
- And finally, Dunno. Japanese Citrus Fruit? is brought to us this week by the above-referenced Joint Development Authority of Jasper County v. McKenzie, in which the Court of Appeals held that a “usufruct” had been established. What in the name of god is a usufruct? Is this covered in (accredited) law school? An inside joke among those damn elitists who pass the bar? (We wouldn’t know. Still working on it. Fingers crossed.) Wrigley’s first shot at naming a gum? Regardless, we’re nominating it for bewildering all-purpose insult. You, usufruct.
- SEC Office of Municipal Securities Issues FAQs for Registration of Municipal Advisors.
- Finra: Firm Short Positions and Fails-to-Receive in Municipal Securities
- Substantive Puerto Rico bankruptcy case here, for those of you sickos into that kind of thing.
- Interesting case concerning the elements necessary to survive summary judgement in plan administrator’s motion to dismiss allegations of churning and mismanagement of fixed-income securities brought by pension plan trustees against plan administrators and financial advisors here.
- And Finally, The Barney Fife School Of Lovably Incompetent Jailers is brought to us this week by Fernando v. City of Chickasaw, in which the Supreme Court of Alabama gave Arelia Taylor the adorable nickname “Jailer Taylor.” Cynthia Robinson Burt’s “Jailer Burt” isn’t nearly as cute, but still not bad. Perhaps less cute is the fact that the two killed a guy in their custody? We’ve been led to believe that Officer Fife (yes, we’re old) never killed a prisoner in his custody, but maybe he had a dark side we were never shown? And apparently Mr. Ed was a stone cold racist.
- When Overburdening isn’t a Burden: Squire Patton Boggs
- Cities’ Credit Ratings Are at Risk Because There Aren’t Enough Accountants
- State Laws Shield Many Municipal Natural Gas Utilities From Energy Transition-Related Demand Erosion: S&P
- Reagan v. Commissioner of Revenue – Supreme Judicial Court of Massachusetts holds that tax exemption for urban redevelopment projects extends to capital gain realized from sale of such projects as causally related to projects in connection with acquisition, construction, operation, and maintenance efforts.
- In re Atrium of Racine, Inc. – In bond default and receivership of retirement center, Supreme Court of Wisconsin holds that the bondholders’ mortgage lien had priority over the residents’ entrance fee claims.
- And Finally, Trouble With A Capital T is brought to us this week by Malanga v. Township of West Orange, a dispute concerning whether or not the local library should be designated as a redevelopment project. A consultant opined that the library desperately needed (inter alia), “a larger more inviting space for teens.” A large, inviting space. Yep, that’s all that’s needed to protect those potential juvenile delinquents from their pool halls and comic books and entice them back to the library. Maybe throw in the occasional Sock Hop?
- Proposed Rule Change Consisting of Amendments to MSRB Rule G-40, on Advertising by Municipal Advisors, and MSRB Rule G-8, on Books and Records: SIFMA Comment Letter.
- Proposed Rule Change to Create New MSRB Rule G-46, on Duties of Solicitor Municipal Advisors, and to Amend MSRB Rule G-8, on Books and Records: SIFMA Comment Letter.
- MSRB: Negative Yield Municipal Bonds
- Abusive Arbitrage Devices – It’s Time to Get Reacquainted (Episode 3 – What Happens to the Arbitrage Sinners and the Arbitrage Saints?) – Squire Patton Boggs
- Orrick Post-Issuance Compliance Webinar: 2023 Updates
- And Finally, My Wife Called Me Immature So I Told Her To Get Out Of My Fort is brought to us this week by Spencer v. City of Palos Verdes Estates, in which a group of non-local surfers sued the City of Palos Verdes in connection with its tacit support for a territorial group of local surfers (the Lunada Boys) who had built a beachside structure known as Rock Fort, from which they violently protected their surf/turf. For a depiction of what passes for a fort in California, click here. For a depiction of a real fort, click here. For architectural reviews of couch forts, click here.
- Request for Comment on Draft Amendment to MSRB Rule G-32 to Streamline the Deadlines for Submitting the Information on Form G-32: SIFMA Comment Letter
- SIFMA Urges MSRB to Extend Filing Deadlines in Proposal to Streamline Primary Offering Form Submissions.
- MSRB Proposes Regulation of Solicitor Municipal Advisors.
- MSRB Proposes Rule Amendments to Allow Testimonials in Muni Advisor Advertisements.
- How Public Cash Managers Should Gird for Federal Debt Follies.
- Taxes Done Right: New Analytics for Municipal Securities Wonk it up!
- UMB Bank, NA v. Parkview School, Inc – Court of Appeals holds that – in proceedings initiated by trustee for loan made to nonprofit organization operating charter schools – Minnesota court exercised jurisdiction over action by ruling on trustee’s petition, which sought declaration that bondholder directive for trustee to enter forbearance agreement was ineffective and instruction not to enter forbearance agreement, before Arizona court exercised jurisdiction by ruling on trustee’s motion for appointment of receiver, and thus, under prior exclusive jurisdiction doctrine, Arizona court properly deferred to Minnesota court’s ruling in finding that forbearance agreement did not bar appointment of receiver.
- And finally, How You Gonna Keep ‘Em Down On The Racetrack When They’ve Seen Mario Kart is brought to us this week by Campbell County Board of Commissioners v. Wyoming Horse Racing, LLC, in which County sought to revoke a previously-granted horse-racing license due to grantee’s sad, poignant failure to revive a dying pastime. Positively elegiac. Fortunately, per Homer, life goes on.
- I Know It When I See It – What is a Capital Expenditure? – Squire Patton Boggs
- Municipal Securities Regulation and Enforcement: 2022 Year in Review and Look Ahead: Ballard Spahr
- Hawkins Advisory: The Federal Reserve’s Regulation ZZ Implementing the Adjustable Interest Rate (LIBOR) Act
- The Debt Ceiling Battle Hits Home.
- State & Municipal Treasurers Publish Letter Encouraging McCarthy to Make Deal on Federal Debt Ceiling.
- Governmental Accounting for Non-Accountants: GFOA Webinar
- And finally, Warren City, Michigan – Where Shame Goes To Die! is brought to us this week by Warren City Council v. Fouts, in which Mayor James Fouts submitted a budget to the city council, “which, included a line item of $615,000 for the City of Warren Downtown Development Authority (DDA) for “Contractual Services” and a line item of $75,000 for DDA for “Community Promotions.” The city council, “met to consider the recommended budget and decided it would revise the budget to allocate $0 for DDA “Contractual Services” and $10,000 for DDA “Community Promotions.” Oh, did we forget to mention that the mayor is also the chairperson of the DDA and that the $75k “Community Promotions” budget was for an ad campaign featuring – you guessed it! – Mayor Fouts himself? Don’t worry, Mayor Fouts went ahead and directed the city finance department to go ahead and fund his original allocations anyway. Can’t let that whole separation of powers nonsense get in the way of those sweet, sweet Contractual Services.
- BDA Submits Letter on MSRB Rule G-32 Changes.
- SEC Looks to Finalize Proposed Cyber Rules, Issue New NPRM.
- The Securities and Exchange Commission New Year’s Resolution? Market Restructuring for All! – Baker Mckenzie
- Proposed Regulation Best Execution: SEC Considers Market Structure Shakeup: Morgan, Lewis
- More and Better Uses Ahead for Governments’ Financial Data.
- Are Local Governments Leaving Billions on the Table?
- Texas AG Says Citi ‘Discriminates’ Against Gun Industry, Halting Muni Business.
- Oklahoma Turnpike Authority v. Olsen – In bond validation proceedings, dissenting Justices of the Oklahoma Supreme Court argue that the court’s exclusive jurisdiction over bond validations should have encompassed objector’s action alleging violation of the state’s Open Meetings Act brought by objectors in the District Court.
- And finally, Sternly Worded Letter To The Editor? is brought to us this week by R.O.A. General Inc. v. Salt Lake City Corporation, in which one can positively feel the the scorn, resignation, and disgust emanating from the court in the otherwise deadpan first sentence of its opinion, which reads, “This appeal is the latest skirmish in a long-running dispute over a billboard.” This long-running dispute began almost A DECADE AGO [emphasis added] and shows no sign of concluding within our lifetimes. Perhaps the fight is so bitter because the stakes are so low. If only there was some way to communicate to the litigants that it’s time to CUT THIS SHIT OUT [emphasis added]]. Perhaps some type of large, public display? Any ideas? We got nothin’.
- Ed. Note: We’ll be off 12/27. Double Dose O’ Drivel 1/3/23!
- GASB Proposes Guidance To Assist Stakeholders With Application Of Its Pronouncements.
- New GFOA Federal Funds Training Scheduled for January.
- MSRB Amends Rule A-12, on Registration, and Provides Accompanying Form A-12 Changes.
- MSRB Proposes Extending Filing Deadlines.
- New State and Local Government Financial Reporting Requirements Headed to Biden’s Desk.
- S&P: As Threats Rise, U.S. Public Finance Entities Take On Mounting Challenges To Secure The Digital Front Line
- Startup Uses Blockchain for Muni-Bond Deals in an Industry First.
- How a Trick 62% Coupon Helped Sell a Wisconsin School Bond Deal.
- Jackson v. Mayor of Detroit – Court of Appeals holds that the preclusive doctrine prevented citizens from challenging bond issuances after the fact.
- And finally, Further Adventures In Pro Se Plaintifness is brought to us this week by the above-referenced Jackson v. Detroit, in which some dude and his buddies challenged Detroit’s issuance of some, uh, long-ago-issued, uh, issuances. As per pro se standards, there were indeed some hiccups. As the three-judge panel noted – through clearly gritted en banc teeth – “Plaintiffs challenge the ‘2020 Prop N bond,’ which was supposedly issued in February 2021. But plaintiffs did not identify this bond in their complaint, nor is there any evidence showing that such bond existed.” The ever-elusive phantom bond issuance strikes again.
- GASB Proposes Guidance to Assist Stakeholders with Application of its Pronouncements.
- MSRB Extends Regulatory Relief for Remote Inspections and Files Amendments to Remove Expired Professional Qualifications Relief.
- Proposed Rule Change to Amend Rule G-3, on Professional Qualification Requirements, to Delete References to Certain Temporary Regulatory Relief Implemented During the Height of the Coronavirus Disease.
- Proposed Rule Change to Amend MSRB Rule G-27, on Supervision, to Further Extend the Current Regulatory Relief for Remote Office Inspections through June 30, 2023.
- S&P Pension Brief: A Closer Look At A New Actuarial Liability Measure And What It Means For U.S. Public Finance Issuers
- Borrowing to Backfill Public Pensions Makes a Comeback.
- And finally, Well Thank God We Got That All Cleared Up is brought to us this week by Sons of Confederate Veterans v. Henry County Board of Commissioners, in which the Supreme Court of Georgia informed us that, “This case is about a highly controversial subject: whether local communities must continue displaying (and maintaining at public expense) monuments that celebrate the Confederacy and its long-dead supporters.” Long-dead supporters, you say? Hmm… Reports of their demise are perhaps highly exaggerated, said everyone with, uh, eyeballs and/or earholes. We know some tiki torches that beg to differ.
- Private Lending Takes Root in Muni Market.
- Orrick Public Finance Webinar: Public Finance Bank Lending and Direct Purchases
- Small Muni Issuers See A Potential 620% Windfall For Their Taxpayers.
- Primary Offerings of Municipal Securities: Impact of COVID-19 Crisis on Competitive and Negotiated Offerings – MSRB Report
- Best Practices and Strategies for Public Investing: GFOA Webinar
- S&P Cyber Risk In A New Era: U.S. Transportation Infrastructure Providers Remain Vigilant On The Road To Cyber Preparedness
- Items concerning fees, permitting, and taxing of streaming services here, here, here, and here.
- And Finally, These Hot Pockets Aren’t Gonna Turn Themselves Into Little Gold Burritos is brought to us this week by Schneider v. Hanasab, in which executrix (not sure what that is, but we want one SO bad) was awarded $150k for “loss of services” during the four days in which the plaintiff languished following a scooter accident before ultimately perishing. The court noted that, “Since damages for wrongful death are limited to pecuniary loss, damages for loss of society, affection, conjugal fellowship and consortium are not recoverable.” So let’s get this straight: Every four days the dead dude performed services around the house worth a literal $150k in cash money. What could these services possibly be? We’ve reviewed all of our back issues of Good Housekeeping and are coming up empty. More importantly, why is the executrix being comped for only the four days in which the decedent couldn’t turn baking soda into cocaine? Barring some sorta zombie resurrection scenario, that train has sailed.
- SEC Municipal Advisor Examination Observations: Mayer Brown
- Cities and States Bristle Over Proposal to Change How They Report on Finances.
- BDA is Happy to Release the Fall Issue of Our Quarterly Magazine, Fixed Income Insights. Relevant sections concerning ESG here and market conditions here.
- Fitch: Recession Expected 2Q23, Strength of U.S. Consumer Will Mitigate Severity
- And Finally, Duck, Duck, Felon! is brought to us this week by Scatchell v. Board of Fire and Police Commisioners for Village of Melrose Park, in which a police officer on sick leave for an injured back/shoulder was canned when he was caught duck hunting with “Vito Scavo, the former Melrose Park police chief and a convicted felon.” When asked whether he had observed Vito firing a shotgun while the two men were on a small boat, replied that he “could not say whether he did or not.” We can’t begin to count the times we’ve failed to notice a shotgun being fired three feet away from our earholes. With regard to the potential exacerbating effects of firing a shotgun while ostensibly suffering from a back/shoulder injury, the city’s firearms expert informed us, “generally that a shotgun has recoil.” You, sir, have a firm grasp of the obvious.
- FINRA Proposes Expanding the Application of FINRA Rules to Government Securities.
- S&P Methodology For Rating U.S. Public Finance Mortgage Revenue Bond Programs.
- Fitch: Inflation To Pressure U.S. Public Finance Before Long
- City Finances Are Stronger, but Uncertainty Lies Ahead.
- Texas School Asks UBS for Refund After Energy Boycotter Label.
- U.S. Securities & Exchange Commission v. Murphy – Court of Appeals holds that investor’s knowing provision of false zip codes to municipal bond underwriters to obtain highest retail priority for purchase of municipal bonds were “material misrepresentations” in violation of § 10(b) and Rule 10b-5, though investor asserted that underwriters had actual knowledge of her real zip code provided on her account registration forms and that there was no evidence underwriters submitted false zip codes to issuers.
And finally, New York Court of Appeals – Department of Family & Marriage Therapy is brought to us this week by West 49th Street, LLC v. O’Neill, in which the court inadvertently provided us all with the template for a successful relationship when it detailed that the couple in question – who had happily been together for 25 years – had, “never comingled their finances or jointly owned real or personal property, held themselves out as a family unit, executed documents formalizing legal obligations, jointly celebrated most major holidays, or attended important events with each other’s families.” We ran the numbers and that checks out.
- A Teachable Moment: Latest SEC Enforcement Actions Remind Underwriters of Limited Offering Exemption’s “Reasonable Belief” Requirements – Orrick
- Ponsa-Rabell v. Santander Securities LLC – Court of Appeals holds that brokerage firm selling municipal bonds to its customers was under no duty to repeat information already known or readily accessible to the investors – in this case the deteriorating market conditions for Puerto Rico bonds and the brokerage firm’s own efforts to rid itself of its own inventory of Puerto Rico bonds – to avoid later claim for securities fraud based on the omission.
- Bates v. Poway Unified School District – Court of Appeal holds that school district’s use of post-construction state reimbursement funds were limited to uses permitted by the local bond or to completely retire the local bonds funding the project.
- Florida Cities Crushed by Ian Face Highest Borrowing Costs in Decade.
- California, Flush With Cash, Snubs Muni-Bond Sales for Projects.
- And finally, And Meaningful Interaction Was His Name-O is brought to us this week by State v. Epic Tech, LLC, in which we learned that a legitimate game of bingo “is played on physical cards (typically made of cardboard or paper) and that requires meaningful interaction between those who are playing and someone responsible for calling out the randomly drawn designations corresponding to designations on the players’ cards.” Who knew there was so much sharing and caring to be found at the local VFW? The opinion also contains a positively Shakespearean account of our brief sojourn on this mortal bingo card: “The screen would roll like a traditional slot machine with the wheel spinning and, then, it made some noise, some flashing lights, and, then, it stopped and you either won or didn’t win.” Bingo.
- SEC Brings First Charges Against Muni Market Underwriters Alleging Failure to Meet Requirements for Limited Offering Disclosure Exemption: Ballard Spahr
- MSRB Votes to Amend Municipal Advisor Advertising and Registration Rules.
- Financial Services Professionals: Check Your Political Contributions for Compliance to Avoid Pay-To-Play Fines – Nossaman
- Stuck With The Bill: Local Governments Deluged With Rising Climate Damage Costs
- The Financial Data Transparency Act: What GFOA Members Need to Know – Podcast
- Our more depraved readers may be interested in two S&P Second Party Opinions issued in connection with NYC social bonds here and here.
- Vandercar, LLC v. Port of Greater Cincinnati Development Authority – Court of Appeals holds that Port Authority’s issuance of revenue bonds constituted both Property Acquisition Bonds and Redevelopment Bonds pursuant to the Agreement Regarding Assignment entered into between the Port and property developer in connection with hotel redevelopment.
- And finally, New Frontiers In Consent: No Means OH MY GOD I’M GONNA DIE is brought to us this week by Flores v. City of San Diego, in which William Flores participated in a high-speed police pursuit on his motorcycle featuring 100+ mph speeds, blown red lights, reckless maneuvers, surface streets, freeways, and the accompaniment of most of the San Diego PD. Pretty standard local tv fodder, but for one little detail: his girlfriend was on the back of the bike. Fortunately, it all ended well. Nah, he crashed and died. She was just seriously injured. And you thought your date nights were spicy. Maybe stick to Applebee’s? We hear that the Four Cheese Mac + Cheese with Honey Pepper Chicken Tenders are lovely this time of year.
- Municipal Bond Market Impact of the SEC’s Mutual Fund ESG Proposals: Ballard Spahr
- BDA Monitoring Legislation Mandating Specific Technologies for Issuer Financial Reporting.
- SEC Charges Four Underwriters in First Actions Enforcing Municipal Bond Disclosure Law.
- NFMA Introduction to Municipal Bond Credit Analysis.
- Citigroup Snubbed on Muni Deal Over Gun Law, Costing Texas City $277,334.
- Rawls v. Woodville ISD – Court of Appeals holds that – in failing to name the presiding officer of the authority that ordered the contested election or the presiding officer of the final canvassing authority for the contested election – citizen contestee failed to comply with the statutory prerequisite to filing an election contest suit.
- And finally, Secrete Santa – Department of Corrections Edition is brought to us this week by Clayton v. Commonwealth, in which we learned that , “It shall be unlawful for a prisoner in a state, local or community correctional facility or in the custody of an employee thereof to procure, sell, secrete or have in his possession any chemical compound which he has not lawfully received.” Ok. Wait. Wait, wait, wait. What? Secrete? So many questions we’re afraid to ask. Well, I suppose it would be more accurate to state that we’re terrified of the answers. Secrete? Seriously? Are inmates now licking each other like those psychoactive Amazonian toads? And you thought crime didn’t pay.
- SEC Municipal Advisor Examination Observations: Mayer Brown
- SEC Approves MSRB Amendments to CUSIP Application Process.
- Regulation Implementing the Adjustable Interest Rate LIBOR Act: SIFMA Comment Letter
- Will One PFAS Consequence Be Cities and Towns Getting Out of the Water Business? – Mintz
- Red State Republicans’ War on ESG Will Have Losses on Both Sides.
- Fundamentals of Local Government Budgeting: GFOA eLearning Course
- Town of Indian River Shores v. City of Vero Beach – District Court holds that town plausibly alleged existence of a “horizontal market allocation” in violation of the Sherman Act related to a service territory agreement between city and county that allegedly foreclosed town from obtaining essential water services from county in the future.
- And Finally, I Dunno, Coast Guard? is brought to us this week by Bohanon v. City of Indianapolis, in which a bar fight got just a wee bit out of hand. Two individuals engaged another in the bar, “put him in a chokehold” and “punched him several times in the head.” The chokehold caused [the individual] to lose consciousness. The two [assailants] then dragged him by his feet, face down, out of the pub and into the parking lot. Once outside, the [assailants] kicked the still-unconscious [individual] in the back and stepped on his head, grinding his face into the pavement. [The individual] briefly regained consciousness but was stomped back into the ground and knocked unconscious again.” “When he regained consciousness, he was covered in blood and the cash from his wallet was gone.” Well that hardly seems sporting. Someone should have called the cops. They were there, you say? In what capacity? They participated? In breaking up the fight? No? No? So you’re saying… Oh. Crap. Oh crap, indeed.
- In the Muni Market, Financial Disclosures DO Matter to Investors.
- S&P Mid-Year Review: Tender Option Bond Activity Reaches New Highs As Interest Rates Rise
- BDA National Fixed Income Conference.
- Florida Becomes Latest State to Propose Anti-ESG Legislation: Saul Ewing
- Pennsylvania Commonwealth Court Issues Decision in Ursinus College v. Prevailing Wage Appeals Board: Saul Ewing
- Ursinus College v. Prevailing Wage Appeals Board – Commonwealth Court holds that construction project undertaken by private, non-profit college and financed by bonds issued by public authority was not “public work” under Pennsylvania Prevailing Wage Act, although authority issued bonds and loaned funds to college under loan agreement.
- Thompson v. St. Anthony Leased Housing Associates II, LP – Supreme Court of Minnesota holds that residential tenant’s allegations that landlord charged her rent in excess of limits established by Minnesota Bond Allocation Act were sufficient to plead injury-in-fact, as necessary for standing to bring claim against landlord for breach of contract, even though Act did not provide tenant with private right of action to enforce its rent limits.
- And finally, Florence’s Only Fully Nude David is brought to us this week by Club Madonna Inc. v. City of Miami Beach, in which the City of Miami Beach enacted regulations concerning its “only fully nude strip club.” What we find delightfully bewildering is the thought process behind the naming of the establishment in question. Is this a reference to the beloved pop icon? If so, fine, but we’ll see your pop icon and raise you a millennium of – you know – actual iconography. Can someone PLEASE explain to us what exactly it is about a painting of a beatific mom and her bizarrely unrealistic new-born that puts one in the mood to visit Miami’s only fully nude strip club? On second thought, if that connection IS somehow immediately apparent to you, you are clearly a person from whom we definitely do not want to hear. But thanks for playing.
- Cyber Insurance Price Hike Hits Local Governments Hard.
- Galloway Education, LLC v. Township of Galloway – After taxpayer – the named landlord of property leased to charter school – sought an exemption from property taxes as a not-for-profit entity, the Tax Court denied the exemption due to the fact that the Bondholder Representative was the de facto landlord of the property purchased via the bond issuance and exercised significant control over the property and the operations of the school.
- In re Financial Oversight and Management Board – Court of Appeals holds, as a matter of first impression, that Fifth Amendment precluded impairment or discharge of prepetition claims for just compensation in bankruptcy under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA)
- Substantive land use case from the Michigan Supreme Court here.
- Summary of Texas Government Code Chapter 809: Baker McKenzie
- West Virginia Penalizes Banks Including JPMorgan, Goldman for Coal ‘Boycotts’
- And finally, Oh, The Irony – Midwest Hellhole Edition is brought to us this week by City of Gary v. Nicholson, in which the standard-issue xenophobes crawled out of their holes to object to a symbolic city ordinance welcoming immigrants. We were about to launch into our standard-issue outrage at this (very, very unisolated) incidence of intolerance until we took a closer look. Gary? Gary, Indiana? The Most Miserable City in America Gary? We’re gonna go ahead and second the motion that absolutely no one – immigrant or otherwise – should be welcomed to Gary. And finally, finally, we’ll be leaving you – purposefully shorn of context – with this glorious quote from this week’s Vess v. City of Dallas, “resident was seized when employee kicked him in the head.” Cheers.
- Ed. Note: We’ll be introducing a new password in the near future. This will affect only those accessing the website directly. You should not experience any affects upon clicking a link in the newsletter. We apologize for any inconvenience.
- Orrick: Lessons From Recent SEC Municipal Enforcement Actions
- US Cities Plan to Use Infrastructure Aid on Roads and Bridges.
- NASBO FY2023 Enacted Budget Summaries.
- Goodman v. UBS Financial Services, Inc. – After bondholder alleged that bank incorrectly reported the amount of amortized bond premiums on his 1099 Tax Form, causing him to significantly overpay his federal taxes, District Court holds that bondholder plausibly alleged claims of breach of contract and negligence.
- And finally, Your Mileage May Vary – Khe Sanh Edition is brought to us this week by Torres v. City of St. Louis, in which grandpa was awakened in his own home by the dulcet tones of a battering ram and a flash bang grenade. Followed immediately by a gunfight in which the SWAT team fired 93 rounds, hitting his grandson 23 times. The officers claimed that the grandson had fired at them with an AK-47, to which grandpa responded that, “he did not hear an AK-47 fire during the incident and would have noticed the sound because he had heard it ‘thousands’ of times during his military service in Vietnam.” Sweet Christmas. Our most vivid memories of gramps is scratchy sweaters, risque ditties, and the increasingly anachronistic butterscotch hard candy. PTSD a bit thin on the ground on the mean streets of Santa Barbara, CA.
- Municipal-Bond Issuers Fall Behind on Disclosures.
- S&P U.S. Public Finance Mid-Year Outlook: The Heat Is On
- Texas Fought Against ESG. Here’s What It Cost.
- Muni Bond Market Is Left Behind in Move to Electronic Trading.
- BLX/Orrick 2022 Post-Issuance Compliance Workshop – Hybrid Event (NEW!)
- The Health System’s New Imperative: Market Demands for Climate Risk and Emissions Management – BLX/Orrick Webinar
- And finally, Sorry, But Minnesota Has Dibs On That Whole Land Of A Thousand Thing is brought to us this week by Champine v. Department of Transportation, in which the Supreme Court of Michigan informed us that, “Mr. Champine sustained severe injuries, including fractures to his face, jaw, and orbital bones, loss of teeth, severe contusions to his face and right eye, and lacerations that were readily explained by the bloodied chunk of concrete recovered from his vehicle.” The court further noted that, “the precise location of the defect could not be determined with any more specificity because of the extremely poor condition of this stretch of highway, which plaintiff stated contained more than one thousand potholes.” Two suggestions here: 1) perhaps avoid I-696; and 2) consider adding “bloodied chunk of concrete” to your rotation of beloved insults/endearments.
- GASB Issues Enhanced Concepts for Notes to Financial Statements.
- GASB Requests Input on Proposal to Require Disclosures About Certain Governmental Risks.
- MSRB Notice 2022-03 – Amendments to Certain Fees for Dealers and Municipal Advisors and Proposing an Annual Rate Card Process: SIFMA Comment Letter
- Climate Change, Hurricanes, and Their Toll on Municipal Credit.
- High-Tech Weathermen Forecast Climate Risks for Bond Investors.
- U.S. Supreme Court Decision in Carson v. Makin Reconfirms Availability of Municipal Bond Financing for Religious Organizations: Orrick
- Single Family Mortgage Prepayment Recycling – A Rising Bond Rate Alternative: Kutak Rock
- And finally, Ah, Crap is brought to us this week by Wittman v. City of Billings, in which “calamity struck when a grease clog in the City’s sewer main caused 1,000 gallons of raw sewage to back up into the Wittmans’ basement, an event known in official vernacular as a Sanitary Sewer Overflow (SSO).” We consider it a virtual certainty that the Wittmans’ reflexively resorted to the official vernacular upon encountering this particular calamity. The opinion does reassure that the odds of a Billings resident experiencing a similar event is 0.04687%. This is, a) an oddly specific number, and b) doubtless a source of great consolation for the Wittmans. This does, however, present an opportunity for the Billings Chamber of Commerce to update its motto to: “Billings! Come for the mountain air, stay for the 0.04687% chance of a calamitous sewage backup!”
- Ed. Note: We will be off next week to honor our robust, thriving democracy. Double Dose O’ Drivel 7/12.
- GFOA Government Finance Review June Edition Now Available.
- 2022 Update for Investment Advisers: Important Annual Requirements, Recent Proposed Rulemaking, and Recent SEC Enforcement Initiatives: Sidley Austin
- Fitch: Inflation, Rate Rises, Stagflation Undermine Sector Outlooks
- Biden Strengthens Cyber Coordination Between Feds and State, Local Government.
- Alabama Taps Local Banks for Controversial Prison-Bond Muni Deal.
- Alabama’s Prison Bonds Hit Snag Amid Weak Demand, Litigation.
- And finally, And What Might Have Piqued Your Interest? is brought to us this week by, Ex parte City of Warrior, in which the Supreme Court of Alabama began its opinion as follows: “At around 10:00 p.m. on the night of September 7, 2016, Officer James Henderson, a police officer employed by Warrior, witnessed a vehicle being operated by Donald H. Wright II “run” through a red traffic light. As Wright’s vehicle passed, Officer Henderson also observed, through an open passenger window, something dangling from one of Wright’s arms. Officer Henderson decided to follow Wright.” That’s one hell of a Spidey Sense, Officer Henderson.
- The SEC’s Proposed New Climate-Related Disclosure Requirements for Public Companies: What Do They Mean for Municipal Issuers and Borrowers? – Orrick
- GASB Posts Paper on Intersection of ESG Matters with Governmental Accounting Standards.
- Explore GFOA’s Latest Research on Cyber Insurance.
- Brookings 11th Annual Municipal Finance Conference.
- Jefferson County Foundation, Inc. v. West Virginia Economic Development Authority – Supreme Court of West Virginia holds that sale-leaseback arrangement involving West Virginia Economic Development Authority (WVEDA) and insulation manufacturer to finance construction of manufacturing plant was not a de facto tax exemption, and thus the West Virginia Economic Development Authority Act, as source of WVEDA’s powers, did not need to be strictly construed in action seeking declaration WVEDA lacked statutory power for its actions and that the sale-leaseback violated state constitutional guarantee of equal and uniform taxation, where sale-leaseback was a series of transactions resulting in two, distinct interests of a fee interest and a leasehold, and WVEDA’s resolution to enter into sale-leaseback did not declare that the leasehold interest produced by sale-leaseback would be exempt from taxation.
- And finally, For God, For Country, For Yale Anticlimax Alert is brought to us this week by City of Fort Worth v. Pridgen, in which a mother, “called the police to report that her neighbor choked her seven-year-old son because he left trash in the neighbor’s yard.” The responding officer proceeded to tase and violently handcuff not only the mother, but also her two teenage daughters. The officer was subsequently charges with: 1) excessive force (Natch.); 2) unlawful arrest (Makes sense to us.); and 3) discourtesy (Excuse me? Surely you’re making that up. We are not making that up.). We sit here striving to envision a courteous tasing (Unlikely, but also hilarious.). Perhaps the choking was courteous?
- Fitch: ESG in Credit – Exposure to Social Impacts Report
- ‘Woke’ ESG Scores From Credit Raters Draw GOP Ire to Muni Market.
- Texas Republicans Roil Muni Market Again With Energy Law.
- Fitch: Operational Technology Cyberattacks Are a Credit Risk for Utilities
- Save The Date: NABL Arbitrage and Rebate Live Webinar!
- Ponsa-Rabell v. Santander Securities LLC – Court of Appeals holds that there was no evidence of a special relationship between brokerage firm and customers who purchased municipal bonds from the firm, as would impose duty on the firm, under securities law, to disclose to customers that, at time of sale, it was actively trying to rid itself of its inventory of municipal bonds because of its concern of risk exposure, given the direction of the market.
- And finally, Think Of The (Alcoholic) Children is brought to us this week by In re Revocation of an Alcoholic Beverage Permit for Riteway Liquor Store, in which the Court of Appeal affirmed the closure of a liquor store. Sure, “the liquor store was one of the most dangerous places in city, two people had been murdered outside of liquor store in recent years, numerous residents of community wanted permit revoked, frequent complaints were made of loitering, fights, and drug use on premises.” Ok, maybe a smidge problematic. But let’s consider the balance of harms, shall we? To paraphrase, what profiteth a man if he avoids the occasional stabbing, BUT LOSETH HIS OWN LIQUOR STORE? Pretty sure that’s how that goes…
- The SEC’s Proposed New Cybersecurity Disclosure Requirements for Public Companies: What Do They Mean for Municipal Issuers and Borrowers? – Orrick
- GFOA Updates Economic Indicator Dashboards.
- New Online Hub to Help Cities Apply for Federal Infrastructure Funding.
- ‘Woke Bond Rating’? The Muni Finance Fight Over ESG Scores.
- America’s Political Right Has a New Enemy No. 1: ESG Investors
- Ducking the Culture Wars Isn’t an Option for Companies Anymore. Fighting Back Is.
- In re Financial Oversight and Management Board for Puerto Rico – Court of Appeals holds that lack of specific legislation permitting the plan to modify Commonwealth’s pension obligations to public school teachers did not bar confirmation of plan. Ed. Note: This one is instructive in that the Court of Appeals laid out the omissions to the Plan of Adjustment that would have obviated this particular litigation.
- And finally, Mel Brooks, Driving Instructor is brought to us this week by Battaglia v. Lombardi, in which the Supreme Court of Rhode Island provided us with a comprehensive description of an exotic, heretofore unknown, vehicular maneuver, stating that, “plaintiff positioned his vehicle in the spot, shifted the vehicle into park, and shut the vehicle off.” It is our understanding that this is also known as, “parking.” Fortunately, it has a happy ending. As the plaintiff explained, “I lifted up the pallet to push it against the chain link fence, and my whole body just went right down this open manhole that I had no idea was there.” It is our understanding that this is also known as, “hilarity.”
- Ed. Note: We wish to inform you that this week’s newsletter is in fact, uh, intentionally lame in order to allow you to catch your breath after last week’s monster issue. And we’re sticking to that story.
- Fitch: Where ESG Matters for U.S. Public Finance
- S&P Hits U.S. States With Politicized Credit Scores: WSJ Opinion
- Why Wall Street Can’t Escape the Culture Wars.
- Land Value Capture and Municipal Financing for Sea Level Rise Adaptation Infrastructure and Health Outcomes; RFP
- And finally, Rated R, For The Brutal Dismemberment Of Narrative Logic is brought to this week by Robinson v. Village of Sauk Village, in which a police chase of a stolen vehicle driven by Mark Coffey came to an initial (foreshadowing!) stop in a gas station parking lot in the standard-issue, cinematic fashion. Boxed-in bad guy, five squad cars, guns drawn – “including an AR-15 assault rifle and a shotgun” and the associated screaming about hands and such. And what happens next? So glad you asked. Does he surrender? Go down in a hail of gunfire? (I know, I know, the suspense is killing me too.) So here’s the opening sentence of the next paragraph of the Supreme Court’s opinion: “A little over one minute after [officer] arrived in the parking lot, Coffey drove away.” He drove away. “Nice to see you fellas, gotta be going.” Spoiler Alert: Coffey’s later shot and killed, so it all works out in the end.
- MSRB Proposes to Extend SEC’s Regulation Best Interest to Bank Dealers.
- Special Districts Are Kingdoms of Unaccountable Power.
- DeSantis’s Rush to Battle Disney Puts $1 Billion of Muni Debt in Question.
- Snodgrass v. City of Wichita – In claim brought by residents following city’s refunding of bonds issued for infrastructure improvements, Court of Appeals holds that residents were not entitled to a refund based upon city’s savings resulting from the refunding. Ed. Note: Worth keeping an eye on, as it was anything but a slam-dunk. The claim was denied based upon: 1) statutes of limitations, which can vary based upon the causes of action that are successfully plead; and 2) an unjust-enrichment-like claim that failed based upon the $300 owing to the individual claimants, as opposed to the $60 million saved by the city, which could be remedied via a class action.
- In re Jack County Hospital District – Bankruptcy Court enters Findings of Fact, Conclusions of Law, and Order Confirming the Second Amended Plan of Adjustment in Chapter 9 proceeding brought by hospital district. Ed. Note: Although there were no contentious issues adjudicated in this case, the Opinion and attached Plan of Adjustment are a treasure trove of resources for similar scenarios.
- And finally, Adam & Eve’s Apple Farm is brought to us this week by State ex rel. Nudo Holdings, LLC v. Board of Review for City of Kenosha, in which developers attempted to construe a vacant development lot as an agricultural enterprise based upon the existence of a few conifers characterized as Christmas trees and a few walnut trees characterized as, uh, walnut trees. The land was intensively farmed, as explained by the developer when he testified that, “he and his wife walked the trails to harvest walnuts, which he gave to his mother, who distributed some to her clients and ‘made some stuff’ with the rest.” And made some stuff with the rest. The court disagreed, with the gloriously gnomic, “This is a piece of land that has some things growing on it.” A life-time subscription to BCB (a $o.47 value!) to the first of you to rename your estate, “A Piece Of Land With Some Things Growing On It.”
- State v. Arizona Board of Regents – Supreme Court of Arizona holds that Attorney General had authority to bring quo warranto action against Arizona Board of Regents (ABOR) alleging that portion of agreement between ABOR and operator of hotels to build and operate hotel and conference center on ABOR’s property that allowed operator to lease the hotel and conference center property from ABOR for 60 years, and to purchase property from ABOR at end of lease term for a nominal fee, was not for benefit of state, as required by statute governing ABOR’s authority, but rather for the benefit and use of operator, and that lease violated non-delegation doctrine, where claim was based on allegation that ABOR unlawfully exercised its franchise.
- In re Flint Water Cases – In case brought against bond underwriters in connection with the Flint water crisis, District Court dismisses plaintiffs’ claims for conspiracy and negligence, finding no relationship between underwriters and citizens sufficient to create a duty of care.
- And finally, Not In My Boneyard is brought to us this week by McLoughlin v. Planning and Zoning Commission of Town of Bethel, in which Mono-Crete – a producer of precast concrete burial vaults – proposed to augment its existing facilities with a crematory. (Just so we’re all on the same page here, a “creamery” is a faux old-timey place to purchase archaic dairy treats, while a crematory is, uh, something else entirely…) Should you ever wish to witness a hot time in the old Zoning & Planning Department, we highly recommend adding immolation to the agenda. Favorite comment: “he does not want his business near any emotion or psychological feelings ….” Favorite publication cited: Directional Heterogeneity of Environmental Disamenities: The Impact of Crematory Operations on Adjacent Residential Values. Perhaps Mono-Crete should consider the manufacture of coffee-themed urns? It is the most modestly-priced receptacle.
- Hybrid Work Poses Credit Risk to Cities Looking to Issue Debt.
- Fearful Muni Investors Increasingly Embrace Bond Insurance.
- St. Tammany Parish Hospital Service District No. 2 v. Zurich American Insurance Company – In action brought by hospital service district against insurer for coverage of Covid-related losses, District Court holds that district is a political subdivision that is not an arm of the state and therefore a citizen of the State of Louisiana; complete diversity existed and, accordingly, the Court concluded it has federal subject matter jurisdiction.
- Matter of Oklahoma Capitol Improvement Authority – Supreme Court of Oklahoma holds that approval of application by Oklahoma Capitol Improvement Authority (OCIA) to enter into federal loans, secured with Transportation Infrastructure Finance and Innovation Act (TIFIA) notes, for rural highway improvement projects was warranted, where legislature authorized proposed TIFIA loans as an essential governmental function, OCIA gave valid notice of its application, and OCIA’s application was uncontested.
- And finally, Peppermint? Chamomile? is brought to us this week by Cleveland v. Taft Union High School District, in which the opinion noted that, “Bryan was involved in a fight with several classmates during a physical education (P.E.) class. After the fight, Bryan told assistant principal Rona Angelo that he had been ‘T-bagged’ during the incident. Bryan’s mother met with Angelo to discuss the incident, but Angelo did not tell her that Bryan had reported being ‘T-bagged.'” We have absolutely no idea if the Honorable Donald R. Franson, Jr. has any idea what any of this means. Frankly, we find it absolutely hilarious either way, although the court’s spelling of the term leads one to believe that it might be utterly clueless. For the definitive explication of the concept, we refer you to that ancient oracle Urban Dictionary, which defines “teabagging” here. It is not suitable for work. It is not suitable for those with heart conditions. It is not suitable for anyone. Consider yourself warned.
- Hawkins Advisory: March 31, 2022 Sunset for Telephonic Tefra Relief
- University of Michigan Sells Record-Sized College 100-Year Bond.
- MSRB RFI on ESG Practices in the Municipal Securities Market: SIFMA Comment Letter
- Market Response to MSRB ESG Survey Shows Frustration.
- LIBOR Act Protects US Legacy Contracts; New SOFR Use Growing – Fitch
- And finally, I Hate To Be A Bother And I Apologize If This Is An Inconvenient Time is brought to us this week by Williams v. City of Tybee Island, in which a concerned citizen observed a group of teens in a desperate battle for their lives as they fought a rip tide pulling them out to sea. Leaping into action the citizen immediately called 911…. ‘Cept she didn’t. In fact, she “called the non-emergency line for the City.” Of course, you’re thinking, “Why not just call 911, lady?!!” Fair point, but we think the bigger question is, “HOW THE BLEEP DID SHE KNOW THE NON-EMERGENCY NUMBER?!!” Knowing it off the top of her head – in an emergency – would be baffling. More baffling is the scenario in which she thinks to herself, “Oh, hey. Teenagers drowning. Seems like an emergency. Suppose I could dial the three digits I’ve been conditioned from birth to turn to in this scenario. Or maybe I should pull up the city directory on my phone and pursue this through the proper channels before rushing to any hasty conclusions.” The Court of Appeals did provide us with this zinger, “It is well established under Georgia law that the danger of drowning in water is a palpable and manifest peril.” Indeed. At least they had the decency not to follow that up with, “Just ask those dead kids.”
- Firm Short Positions and Fails-to-Receive in Municipal Securities: 2022 Report on FINRA’s Examination and Risk Monitoring Program
- New and Familiar Compliance Challenges for FINRA Members in 2021 and What That Means for 2022: Katten Muchin Rosenman
- Headlines for Alternative Lenders on LIBOR Replacement: McGuireWoods
- Hawkins Advisory: New Private Activity Bond Provisions for Qualified Carbon Dioxide Capture Facilities
- S&P Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors
- Muni Investors Seek Proof From Governments Selling ESG Debt.
- California Warns Investors of Labor Market and Supply Chain Issues.
- Preston Hollow Capital, L.L.C. v. Cottonwood Development Corporation – Court of Appeals holds that lender’s pre-existing title to its own money did not allow lender to bring takings claim, as opposed to breach of contract claim, against city based on city’s failure to return funds lent to city by lender pursuant to parties’ loan agreement.
- And finally, Setting The Bar Low is brought to us this week by Srouy v. San Diego Unified School District, in which some issues arose concerning service of process, as defendant’s “mother is a refugee from Cambodia who ‘speaks and reads limited English’ and, due to her experiences under the Pol Pot regime, is ‘cautious’ when speaking to ‘anyone in authority.’ [Turns out that your editor also speaks and reads limited English and is cautious when speaking to anyone in authority. Just seems prudent.] True, we’ve had some well-publicized issues with law enforcement as of late but, come on, Pol Pot? [Shocking that no one’s attempted to market Pol Pot Pie. Sorry, sorry.] But therein lies a public relations opportunity: “Your San Diego Police Department – Genocide-Free Since 2003!”
- Post-Issuance Tax Compliance and Continuing Disclosure Responsibilities for Issuers and Borrowers of Tax-Exempt Bonds (Second Edition) – Orrick
- Rising Rates Hit Munis.
- Launius v. Flores – Court of Appeals holds, as a matter of first impression, that challenges to bond elections are required to be considered to be accelerated under the appellate rules of procedure, and thus a notice of appeal is due within twenty days after the date the judgment or order was signed.
- And finally, At Least It Wasn’t A Penguin is brought to us this week by Cornella v. City of Lander, in which ingrate citizen discovered a bat in her house and called the Animal Control Division of the Lander Police department, which was able to remove the bat. [You ever tried this? Tres tranquilo.]. Citizen later sued the police department when the bat escaped before it could be tested for rabies. But spare a thought for the bat. Was it a dark, brooding, billionaire playboy bat? Could his escape have been motivated by the trauma sustained as a bat pup when his bat parents were gunned down before his eyes? Most importantly, do the members of the Animal Control Division realize that Taco Bell is currently paying $15/hour? One is so rarely sued over a botched Flamin’ Hot Cool Ranch Doritos Locos Tacos Extreme. [Actual menu item. Get yours today.]
- Tax-Exempt Lending to Governments and Nonprofits; Bank Loans and Direct Purchases of Municipal Securities: Orrick
- The Fed Is ‘Normalizing.’ Here’s What Public Financiers Need to Know.
- Kansas GOP Takes Up Gun Bill Targeting Banks’ Muni Business.
- New Jersey Turnpike’s Swaps Mean a Windfall, Sort of.
- S&P Global Ratings To Enhance Transparency In U.S. Public Finance Credit Analysis With ESG Credit Indicators.
- Most Investors Don’t Need to Worry About the Alternative Minimum Tax Hitting Their Muni Bond Holdings These Days. Here’s Why.
- And finally, Let’s Go With Ladybug Farm is brought to us this week by Township of Fraser v. Haney, in which the Supreme Court of Michigan was forced to conclude that plaintiff’s neighbor, “had a history of illegal animal operations on the property, including a deer farm that had been ordered closed by a circuit court and Russian boar production that had been banned by the Michigan Department of Natural Resources.” Both of which existed prior to the present kerfuffle concerning the hog facility currently being run on the property. As the court noted, “The presence of the hogs on the property constitutes the wrong, and that wrong, along with the attendant harms it causes, is being committed as long as the piggery operates.” Piggery? That’s a new to us (although we did learn the term “animal husbandry” the hard way). Then again, fisheries are a thing. In that vein, what would one call an operation dedicated to raising bugs?
- Even When it Comes to the Mundane Forms 8038, the One Constant is Change: Squire Patton Boggs
- Municipal Securities Regulation and Enforcement: The Year in Review and a Look Ahead – Ballard Spahr
- In the Muni-Bond Bazaar, Quotes Are Invitation to Negotiate.
- From Stanford to Oberlin, Schools Rush to Tap the ESG Bond Market.
- How Sea Level Rise Exposure Is Priced into Municipal Bonds.
- And finally, Can’t Imagine Where Good Ol’ Ken Was On January 6 is brought to us this week by State v. Grant, in which Kenneth Grant was convicted of disturbing the peace after spending several consecutive days screaming obscenities at two women painting a house across the street. Per a neighbor, “this ain’t nothing new. He’d always sit on the porch and holler racial slurs, all the time, towards me, towards the neighbors, even towards people walking down the street.” Mr. Grant later complained to the Supreme Court of Nebraska that his 10-day sentence had been an abuse of discretion because, “the county court ignored his request for only a fine or probation.” Perhaps if he’d just yelled the request a little louder…?
- Draft Companion Compliance Resources for Dealers and Municipal Advisors.
- SEC Taking a Closer Look at Issuer Disclosure.
- Treasury’s Letter to Arizona May Impact Muni Issuance Disclosures.
- MSRB Launches Emma Labs as the Regtech Innovation Sandbox for the Future Of Municipal Bond Market Transparency.
- Registration is Open for GFOA’s 116th Annual Conference!
- Preston Hollow Capital, L.L.C. v. Cottonwood Development Corporation – Court of Appeals holds that lender’s pre-existing title to its own money did not allow lender to bring takings claim, as opposed to breach of contract claim, against city based on city’s failure to return funds lent to city by lender pursuant to the parties’ loan agreement.
- And finally, At Least It Wasn’t Grand Theft Auto? is brought to us this week by Lozano v. City of Los Angeles, in which LAPD officers Mitchell and Lozano declined the invitation of their supervisor to join him in responding to a robbery in progress. The reason for their blatant dereliction of duty? So glad you asked. The officers were engaged in a game of Pokemon Go and “Snorlax just popped up at 46th and Leimert.” Glorious. Just glorious. Shortly thereafter, Mitchell informed Lozano that “a Togetic just popped up, noting it was on Crenshaw, just South of 50th.” “Petitioners admitted leaving their foot beat area in search of Snorlax, but they insisted they did so ‘both’ as part of an ‘extra patrol’ and to ‘chase this mythical creature.'” As this entry is our mythical creature, “We will diminish, and go into the West, and remain Galadriel.” Been fun, folks.
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