Patterson: “So in term of what State Law would apply here; there should not be a significant State Law component to this engagement.”
At the November 7, 2017, Beaumont City Council Meeting, acting City Attorney Patterson recited many defenses for the City’s hiring of Out of State Lawyers to fulfill the SEC Cease & Desist Order requiring an Independent Consultant to report back to the SEC on the City’s Compliance to Federal Laws.
One of Patterson’s defenses was that the City was not obligated to comply with State Laws because the SEC is Federal.
Patterson: “So in term of what State Law would apply here; there should not be a significant State Law component to this engagement.”
Incorrect.
Federal SEC Laws specifically order State Laws to be followed if they offer additional consumer protections.
SEC Laws specifically authorize State Regulatory Agencies, such as the California Bar Association and State Auditor, to enforce their State Laws on any transactions also regulated by the SEC.
This not only applies to Out of State Lawyers, but to Webb & Associates, Urban Futures, Stradling Yocca, and everyone else that is associated with Beaumont’s Bonds.
Dodd Frank Section 1041 Subtitle D Preservation of State Law
(a)(2) Greater Protection under State Law. For the purposes of this subsection, a statute, regulation, order, or interpretation in effect in any State is not inconsistent with the provision of this title if the protection that such statue, regulation, order, or interpretation affords to consumers is greater than the protection under this title.
(b) Relation to Other Provisions of Enumerated Consumer Laws that Relate to State Law. No provision of this title shall be construed as modifying, limiting or superseding the operation of any provision of an enumerated consumer law that relates to the application of a law in effect in any State with respect to such Federal law.
Section 1042 12 USC 5552 Preservation of Enforcement Powers of States
(a)(2) A State regulator may bring a civil action or other appropriate proceeding to enforce the provisions of this title or regulations issued under this title with respect to any entity that is State-chartered, incorporated, licensed, or otherwise authorized to do business under State law, and to secure remedies under provisions of this title or remedies otherwise provided under other provisions of law with respect to such an entity.