On June 7, 2017, new IRS regulations that change the way state and local governments issue tax-exempt bonds went into effect. The new rules change the way municipal issuers determine the issue price of tax-exempt bonds they issue, and amend existing IRS regulations under section 148 of the Internal Revenue Code. The new rules have produced immediate changes to many common documents used by municipal issuers and their advisors in municipal bond transactions.
Continue Reading New IRS Regulations Change the Game for Municipal Bond Issuers

On May 17, 2017, the Pennsylvania Environmental Quality Board (“EQB”) greenlighted a proposal that would substantially increase fees for public water suppliers regulated by the Department of Environmental Protection (“PADEP”).  In addition to seeking the fee hike, the proposal would amend other regulations under the Pennsylvania Safe Drinking Water Act (“SDWA”), with some changes being even more stringent than federal standards.  The proposal now will be published in the Pennsylvania Bulletin followed by a public comment period of at least 30 days.

Stakeholders should carefully review the proposal and consider submitting comments, including all community water systems, noncommunity water systems, and bottled, vended, retail, and bulk water suppliers.  Those affected may include municipalities with water supply systems and businesses that supply water to the public or their own employees.Continue Reading Public Water Suppliers Face Proposed Fee Increase and More-Stringent Standards

Following his inauguration on January 20th, President Trump issued several Executive Orders, one of which was issued on January 25, 2017 and titled, “Enhancing Public Safety in the Interior of the United States” (referred to herein as the “Order”). Among other things, this Order punishes so-called “sanctuary jurisdictions” by stripping them of federal grants. As justification for this punitive measure, the Order states that “sanctuary jurisdictions … willfully violate Federal law in an attempt to shield aliens from removal…. These jurisdictions have caused immeasurable harm to the American people and to the very fabric of our Republic.”

In the months since the Order, many state and local entities have parsed the Order to determine whether they would be considered a “sanctuary jurisdiction,” what funding may be in jeopardy, and whether they can modify their policies to limit or eliminate application of the Order. In the midst of these uncertainties, many municipalities also have been faced with the issue of how to address the potential consequences of “sanctuary jurisdiction” status in their public offering documents when they are considering issuing municipal bonds for sale to the investor public.Continue Reading Sanctuary Jurisdictions and Municipal Bond Disclosure

The National Association of Bond Lawyers (NABL) and the Securities Industry and Financial Markets Association (SIFMA) recently released model issue price documents in connection with the soon-to-be effective Treasury Regulations on establishing the issue price of a tax-exempt bond issue. NABL’s model documents can be accessed here; SIFMA’s documents can be accessed here.

In January 2015, the Seventh Circuit, recognizing that it was an outlier among the Circuits in holding that pretrial detainees could not sue under the Fourth Amendment but rather instead sued under the Due Process Clause to challenge his/her detention, stated that a request by a detainee to overturn settled Circuit precedent was “better left for the Supreme Court.” In the Supreme Court’s words, it granted cert “on cue,” and on March 16, 2017, overturned the Seventh Circuit’s precedent by holding that pretrial detainees retained the right to sue under the Fourth Amendment over their detention for unlawful search and seizure. The Court held that the Fourth Amendment governs a claim for unlawful pretrial detention even beyond the start of legal process.
Continue Reading Supreme Court Reins in the Seventh Circuit and Reaffirms Fourth Amendment Protections

As if Counties could forget that Court employees are just a little different, the Commonwealth Court of Pennsylvania sent us another reminder when the Court held that the Pennsylvania Whistleblower Law does not apply to judicial employees.

Gregory Thomas was a Juvenile Probation Officer serving with the Washington County Court of Common Pleas until October 2014, at which time he was allegedly forced to quit. Prior to his resignation, Thomas had been a participant in an investigation regarding the misappropriation of funds by the Juvenile Probation Office. During the investigation, it was revealed that the Chief of the Juvenile Probation Office had directed Thomas to email the County’s purchasing office in July 2014 to state that a mixed martial arts training session had taken place on June 6 and 7 in partial satisfaction of the state’s 40-hour annual training requirement. The email sought, and was granted, funding for the training. No such training actually occurred, and Thomas confirmed to the investigating detectives that he had not attended this training; he alleged that he had been told by the Chief Probation Officer to tell the detectives otherwise.Continue Reading Scope of Pennsylvania’s Whistleblower Law Examined

Blight – or urban decay – reduces property values, has been linked to higher crime rates, and is visible throughout Pennsylvania in the form of deteriorated and abandoned properties.  The Pennsylvania Neighborhood Blight Reclamation and Revitalization Act, 53  Pa.C.S. §6101 et seq. (the “Act”), provides additional tools to combat blight.  Originally passed as Act 90 of 2010 (“Act 90”), the Act subsequently was amended through the passage of Act 171 of 2014 (“Act 171”) and Act 34 of 2015 (“Act 34”).  Through the Act and related laws as well as financing opportunities, municipalities and developers have the tools necessary to reduce blight and make neighborhoods safer and more desirable.
Continue Reading Combating Blight: New Tools for the Ongoing Municipal Battle