It has traditionally been a fairly common practice in the municipal bond arena for issuers to either select or have significant input into the selection of underwriter’s counsel in connection with the issuance of municipal bonds. On July 27, 2017, the Municipal Securities Rulemaking Board (MSRB) issued a strong warning to the industry against continuation of these practices by publication of Notice 2017-14.
Continue Reading MSRB Issues Warning Guidance On Issuer Involvement In Selection of Underwriter’s Counsel

This post was originally featured on the McNees Labor and Employment Blog.

Back in 2015, Pittsburgh enacted a paid sick leave ordinance, following a trend among cities throughout the country. Pittsburgh’s paid sick leave ordinance required employers with fifteen employees or more to provide up to forty hours of paid sick leave per calendar year. Employers with less than fifteen employees were not spared. The ordinance required that those employers provide up to twenty-four hours per calendar year. The impact: 50,000 workers would receive paid sick leave.

But, what authority did Pittsburgh have to impose such a requirement?
Continue Reading A Tale of Two Cities: The Demise of Pittsburgh’s Paid Sick Leave Ordinance and the Durability of Philadelphia’s

On May 18, 2017, House Bill 1405 was introduced into the Pennsylvania General Assembly.  The proposed legislation, which would restrict a municipality’s ability to utilize revenue generated by a municipal electric system, would significantly impact 35 municipalities in PA that purchase wholesale power on behalf of residents and distribute the power through municipal-owned electric distribution system.
Continue Reading Electric Costs in Ellwood City Spur Proposed Legislation to Restrict Use of Electric Revenue to Fund Municipal Operations

Pennsylvania State Senators John Blake, John DiSanto, and Mike Folmer recently introduced a trio of new municipal debt reform bills that follow on the package of reform bills introduced in the Senate in March. The new bills – Senate Bill 694, Senate Bill 695, and Senate Bill 696 – would expand the power of the Office of Attorney General to prosecute political crimes at the municipal level, increase the statute of limitations for such crimes, and require third class cities to put out for competitive bid all contracts for professional services.
Continue Reading Pennsylvania Senators Introduce New Municipal Debt Reform Bills

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

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

A series of municipal debt reform proposals have been reintroduced in the Pennsylvania Senate.

Versions of these proposals have been introduced in every legislative session dating back to the 2013-2014 term, although the proposals have changed somewhat over the years. This session’s bills are number SB 490 through SB 493.

As with bills from past sessions, the current proposals would change the way municipalities obtain approval from the Department of Community and Economic Development (“DCED”) to issue bonds, notes or other public debt, as well as make a number of reforms to those current provisions governing interest rate swaps, performance bonds and municipal authority projects.Continue Reading Municipal Debt Reform Proposals Reintroduced in State Senate

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

At its meeting on March 1, 2017, the United States Securities and Exchange Commission (SEC) voted to formally propose and publish for comment amendments to Rule 15c2-12 to add two additional disclosure events to written continuing disclosure undertakings required to be obtained by underwriters in primary securities offerings.
Continue Reading SEC Proposes Amendments to Rule 15c2-12 to Address Bank Loan Disclosure Concerns