Category Archives: Law

Law

The Problem with State Bankruptcy

I certainly like the idea of allowing states like California to declare some form of Bankruptcy.  As Jeb Bush & Newt Gingrich recently noted in a piece, Better off Bankrupt:

[A] new bankruptcy law would allow states in default or in danger of default to reorganize their finances free from their union contractual obligations. In such a reorganization, a state could propose to terminate some, all or none of its government employee union contracts and establish new compensation rates, work rules, etc. The new law could also allow states an opportunity to reform their bloated, broken and underfunded pension systems for current and future workers. The lucrative pay and benefits packages that government employee unions have received from obliging politicians over the years are perhaps the most significant hurdles for many states trying to restore fiscal health.

I certainly am a big fan of dealing with the bloated union contracts and state employee pensions that have ballooned to create an unsustainable state budget.  Don’t think we haven’t created a monster?  Check out this stat:

The figures for next year’s budgets are staggering. California, which faces a $25.4-billion budget shortfall, will pay $100,000+ pensions to more than 12,000 state and municipal retirees this year. A Stanford study puts the state’s unfunded pension obligations at more than half a trillion dollars.

While some form of Bankruptcy makes sense when looking at these numbers, my concern is 2 fold.  First, that states will look at the new Bankruptcy as a crutch to never really change their spending ways.  Bush & Gingrich adrress that:

An additional benefit of a new voluntary bankruptcy law for states is that its mere existence may deter any state from ever availing itself of its provisions. If government employee union bosses know that they could have all their contracts annulled under federal bankruptcy law, either through a plan of reorganization voluntarily entered into by state leaders or by the voters through proposition, they may be far more accommodating with state governments to restructure government employee union workforces, pensions and work rules.

That makes sense, but it is still a concern I have.

 

My second concern is how suck a bankruptcy would effect the state’s bond rating & the overall ability to borrow money.  Again, Bush & Gingrich have a response:

Third, the new law should allow for the restructuring of a state’s debt and other contractual obligations. In a voluntary bankruptcy scenario, states, like municipalities, will have every incentive to file a reorganization plan that protects state bondholder claims and their ultimate recovery. States will evaluate their future access to bond markets and their prospective borrowing rates as they formulate the optimal restructuring plan.

When California refused to bail out Orange County, the county entered bankruptcy and emerged within 18 months. Within three years, the county returned to an investment grade rating, and it repaid 100% of the principal of the vast majority of its investors by 2000 without raising taxes.

The lesson is that voluntary bankruptcy offers taxpayers the option to restructure state finances responsibly to achieve long-term fiscal health — which can only improve California’s bond rating since it is the worst in the nation— instead of simply having to accept the Sacramento solution of another tax increase.

Overall I think the Bankruptcy option may work, but it is something that must be carefully addressed.

These People Pay Their Taxes & Contribute to Society

Unemployed, 5 DUI arrests, 4 anchor babies, 21 years here illegally….Yes the illegal immigrants from Mexico are hard working contributors to our society!! LAUGHABLE!

Read about Miguel Sotelo.

LAUGHABLE!

CA Similarities to AZ Law Penal code 834b vs. SB 1070

Well here is an interesting bit of info

 (a) Every law enforcement agency in California shall fully
cooperate with the United States Immigration and Naturalization
Service regarding any person who is arrested if he or she is
suspected of being present in the United States in violation of
federal immigration laws.

   (b) With respect to any such person who is arrested, and suspected
of being present in the United States in violation of federal
immigration laws, every law enforcement agency shall do the
following:

   (1) Attempt to verify the legal status of such person as a citizen
of the United States, an alien lawfully admitted as a permanent
resident, an alien lawfully admitted for a temporary period of time
or as an alien who is present in the United States in violation of
immigration laws. The verification process may include, but shall not
be limited to, questioning the person regarding his or her date and
place of birth, and entry into the United States, and demanding
documentation to indicate his or her legal status.

   (2) Notify the person of his or her apparent status as an alien
who is present in the United States in violation of federal
immigration laws and inform him or her that, apart from any criminal
justice proceedings, he or she must either obtain legal status or
leave the United States.

   (3) Notify the Attorney General of California and the United
States Immigration and Naturalization Service of the apparent illegal
status and provide any additional information that may be requested
by any other public entity.

   (c) Any legislative, administrative, or other action by a city,
county, or other legally authorized local governmental entity with
jurisdictional boundaries, or by a law enforcement agency, to prevent
or limit the cooperation required by subdivision (a) is expressly
prohibited.

US Constitution: Article 1 Section 7 Passage of Bills

This is what the US Constitution says:

Section 7. All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other Bills.

Every bill which shall have passed the House of Representatives and the Senate, shall, before it become a law, be presented to the President of the United States; if he approve he shall sign it, but if not he shall return it, with his objections to that House in which it shall have originated, who shall enter the objections at large on their journal, and proceed to reconsider it. If after such reconsideration two thirds of that House shall agree to pass the bill, it shall be sent, together with the objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a law. But in all such cases the votes of both Houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each House respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress by their adjournment prevent its return, in which case it shall not be a law.

Every order, resolution, or vote to which the concurrence of the Senate and House of Representatives may be necessary (except on a question of adjournment) shall be presented to the President of the United States; and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill.

So how does this Slaughter Rule work??? I guess I’m confused, those 3 years of law school are confusing me.

Lindsay Lohan is a Self Absorbed Nutcase!!!

Lindsay Lohan is completely crazy & self absorbed.  I love the E-Trade commercial with the milk-a-holic!!!  I NEVER thought of Lindsay Lohan in the context of this commercial until her & her idiotic advisors decided to sue over it.  Now if the called the girl Ego-a-holic Lindsay, I would have thought of Crazy Lohan.

I hope E-Trade stay strong & doesn’t give that nut a penny!  GO E-TRADE BABY!!  This law suit is why people hate lawyers!

May the Milk-a-holic commercial live on!

This is what her idiot lawyer had to say & the ad company’s response as well:

Lohan’s lawyer, Stephanie Ovadia, said the actress has the same single-name recognition as Oprah or Madonna.

“Many celebrities are known by one name only, and E-Trade is using that knowledge to profit,” Ovadia said.

“They used the name Lindsay,” Ovadia said. “They’re using her name as a parody of her life. Why didn’t they use the name Susan? This is a subliminal message. Everybody’s talking about it and saying it’s Lindsay Lohan.”

Ovadia wants an injunction to force the spot off the air, and the Lindsay camp wants every last copy of the commercial.

Chris Brown, a spokesman for Grey Group, which produced the spot, is throwing cold milk on the controversy, saying it “just used a popular baby name that happened to be the name of someone on the account team.”

Ovadia said E-Trade has violated Lohan’s rights under New York state civil-rights law and used her “name and characterization” in business without paying her or getting her approval.

UPDATE: I hope I don’t get sued for this post!

The Nominee

It comes as no surprise that President Obama’s first nominee to the Supreme Court is someone who he sees eye to eye with. I do find her comment about a wise latina woman being more qualified to make decision than a wise white man to be disturbing.