Tuesday, 12 January 2010 15:45

BOSTON (Legal Newsline) - An advertisement for Massachusetts Attorney General Martha Coakley's senatorial campaign misspelled the name of the state Monday night.

After a three-person debate Monday night, an attack ad on Republican state Sen. Scott Brown paid for by the state's Democratic Party spelled it "Massachusettes."

The ad was "authorized by Martha Coakley for Senate and approved by Martha Coakley."

"The punchlines write themselves: Before you represent a state in the Senate, shouldn't you learn how to spell its name?" Jim Geraghty wrote for National Review Online.

"This isn't the sort of thing that sways votes, but it does suggest a certain haphazard hastiness surrounding the Coakley campaign; they probably never thought they would have to run attack ads against a little-known state legislator in this state."

Recent polls have shown Brown with anything from a 1-percent lead to a 15-percent deficit.

The Boston Herald live-blogged the debate and included a poll on who was winning. By the end of the debate, Brown was receiving 86 percent of the votes, Coakley 9 and Independent candidate Joseph Kennedy 5.

The three are vying to succeed the late Ted Kennedy. A special election is being held Jan. 19.

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Tuesday, 12 January 2010 14:48

HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General Richard Blumenthal has reached a preliminary agreement with a bankrupt company to honor at least 50 percent of the value of unused gift cards.

Ski Market Ltd., after filing for Chapter 11 bankruptcy in December, had originally refused to honor the unused gift cards.

"Ski Market has agreed to give loyal consumers a lift - heeding our call and recognizing that consumer trust is imperative to Ski Market's future success," Blumenthal said.

"This preliminary agreement is a partial victory, and my office plans to continue working to assist consumers seeking additional reimbursements."

Blumenthal filed a motion last week with the U.S. Bankruptcy Court seeking to compel Ski Market to honor approximately $200,000 worth or more of the remaining unused gift cards sold to consumers.

Ski Market, in initial public statements following its announcement of filing Chapter 11 bankruptcy, had rejected the cards entirely, saying that its main secured creditor did not authorize the use of the cards.

"This action is a positive first step, but not the last in our battle on behalf of consumers with unused Ski Market gift cards," Blumenthal said. "We urge that consumers take advantage of it as soon as possible, assuming the bankruptcy court approves it."

The bankruptcy court must still approve this new deal, which would allow consumers to use their cards for up to 50 percent of their value at any Ski Market store from Saturday-Jan. 24.

"I am pleased that Ski Market has agreed that its financial avalanche should not bury its promises to consumers," Blumenthal said.

"We urgently warned Ski Market that it would doom itself by denying gift cards - destroying consumer confidence and deterring new buyers for the company assets. Ski Market is rightfully realizing its responsibilities to consumers. My office will continue to monitor this bankruptcy proceeding and fight for further consumer protections."

Tuesday, 12 January 2010 13:16

HARTFORD, Conn. (Legal Newsline) - Republican lawmakers in Connecticut want state Attorney General Richard Blumenthal to be ready to fight against the proposed national health care reform package if it is passed.

Just like in other states, GOP members are railing against an apparent deal that benefitted Nebraska in exchange for one of its senators' vote. However, in Connecticut, the attorney general may be a U.S. Senator this time next year.

Blumenthal, a Democrat who has served as attorney general since 1991, is seeking the seat that will be vacated by U.S. Sen. Chris Dodd.

A provision in the Senate-approved health care plan exempts Nebraska from having to pay Medicaid expense increases. The language was inserted into the bill to gain the support of Sen. Ben Nelson, a Democrat from Nebraska, who offered the 60th and final vote late last month needed to pass the plan aimed at expanding access to health care.

A group of 13 Republican attorneys general led by South Carolina's Henry McMaster has been vocal in its intent to challenge the provision.

Also, Sen. Mary Landrieu received $300 million in federal funds for Louisiana.

Seven GOP state senators sent Blumenthal a letter Thursday.

"A group of attorneys general across the nation are discussing the possibility of filing a lawsuit challenging the constitutionality of the national health care bill," the letter says.

"We urge you, as has Gov. (Jodi) Rell, to join your colleagues in demanding this proposed legislation pass constitutional muster and equalize the burden of funding new federal government programs should it become law."

The state senators who signed the letter are Michael McLachlan, John Kissel, Toni Boucher, Dan Debicella, Tony Guglielmo, L. Scott Frantz and Rob Kane.

"Connecticut citizens deserve to know that their elected state officials are not just helplessly standing by while decisions are being made on a federal level that could seriously hurt them," Boucher said in a statement.

"We have rights, and we have to be prepared to fight to protect them. That is what we are urging the Attorney General to be ready to do."

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Tuesday, 12 January 2010 02:00

SACRAMENTO, Calif. (Legal Newsline)—A proposal by a Democratic candidate for California attorney general that would raise money for California college classrooms by taxing energy producers on Monday cleared its first legislative hurdle.

The $1.3 billion plan by state Assembly Majority Leader Alberto Torrico seeks to enact a 12.5 percent severance tax on the gross value of the oil and natural gas that producers take from the Golden State's lands and sea beds.

The severance tax, the Fremont Democrat said, is similar to what is levied by other oil-producing states, including Texas and Louisiana.

"The other states seem to recognize that the oil is a natural resource that belongs to the state and the people of that state, and shouldn't be given away for free. So, this bill says to oil companies no more free ride," Torrico said Monday.

A candidate for state attorney general, Torrico wants the revenue to go to classroom instruction at the state's colleges and universities, as a way to overcome recent budget cuts and tuition increases.

The Fair Share for Fair Tuition bill is outlined in Assembly Bill 656. The proposal was approved on a party-line vote by the Democratic-led Assembly Committee on Revenue and Taxation, chaired by state Assemblyman Ron Calderon, D-Montebello.

A competing bill, by fellow Democratic AG candidate Assemblyman Pedro Nava of Santa Barbara, would impose a 10 percent oil extraction tax that would flow into the state's general fund.

In 2006, California voters handily rejected the idea of an oil severance tax. Proposition 87 was opposed by nearly 55 percent of statewide voters.

Under Torrico's proposal, as currently written, government entities would be exempt from the severance tax.

Also exempt from the severance tax would be oil or gas produced by a stripper well that is incapable of producing an average of more than 10 barrels of oil per day during the entire taxable month.

Companies subject to the 12.5 percent severance tax would be prohibited from passing on the tax increase to consumers – or risk investigation by the state attorney general's office.

Torrico has pointed to profits that major oil companies have made in recent years, saying the tax would not hurt their bottom lines, but the wider economic effects of an oil severance tax could be widespread, according to a study by Law and Economics Consulting Group, a respected global consulting firm based in Emeryville, Calif.

The LECG report, released a year ago, estimated that the oil producers' tax could, among other things, cause steep declines in the state's oil and natural gas production and the loss of nearly 9,900 jobs.

"California's oil production is already among the most heavily taxed in the country. This new oil tax would make California's combined taxes on petroleum the highest in the nation by far," the LECG report said.

To pass, the bill will require a two-thirds vote in both houses, meaning that some Republican support would be needed in the Assembly and state Senate, where Democrats have hefty majorities. Passage could be difficult since most Republican legislators have taken strong stands against raising taxes and fees to help raise revenue.

In an earlier interview, the chief executive officer of the California Independent Petroleum Association, Rock Zierman, said oil companies are paying their fair share for the nearly 216 million barrels of crude they extract from California.

Energy producers essentially already pay a pre-severance tax on the oil while it is in the ground, plus the industry pays a high corporate income tax rate a high sales tax rate on its equipment, he said.

"We pay as much, if not more, than other oil-producing states," he said, disputing a claim that California is letting revenues slip away while other states collect a severance tax.

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