Re: "Show me" policy illegal?

On 22 Jan 2008, richard <I.dont.care@xxxxxx> wrote:

Missouri has some type of a program for companies
to obtain money from it.
http://ap.google.com/article/ALeqM5h2xOKfJqRFNPFy46GPoCzY_PcIVQD8UARKA00

It is a program to encourage the development by the private sector of
ethanol fuel by providing low-cost financing for such purposes via the
deposit of state funds in local Missouri banks at a reduced rate of
interest on condition that, in turn, the depository local bank then
lends its own funds to eligible project relevant borrowers at rates
lower than would otherwise be available to them -- IOW, in effect, a
substantial state furnished subsidies for such purposes.

However, because the "policy" [ which is not a law?? ]
says certain people connected with state government,
as well as relatives thereof, can not be share holders
of that company seeking the money.

The policy referred to is comprised of regulations promulgated by the
state treasurer pursuant to Missouri statutes that require the
treasurer to do this to implement the law's purposes including with
safeguards against conflict of interest so that state employees and
related state actors may not enrich themselves or appear to be
enriching themselves at public expense -- regulations which, by reason
of their underlying statutory mandate, have the force of law (at least
unless/until a court having jurisdiction or the state treasurer or
legislature invalidates them).

The article did not specify the amount of shares needed
to show a conflict of interest. Or exactly what the
requirements are for conflict of interest other than being
a shareholder.

The regulations provide in part:

"[U]nder her authority to take the steps necessary
to implement both the letter and spirit of the law,
the Treasurer has adopted the following conflict
of interest policy for individuals applying to th[is]
. . . Program:
* * *
" No statewide elected official, or his or her
immediate family, may receive a linked-deposit
loan under th[is] . . . Program.
* * *
"Any individual with an equity ownership in a
corporation, partnership, cooperative, limited
liability company (LLC) or any other entity, that
falls into any of the categories above, shall be
ineligible for a . . . linked deposit [loan under
this Program].
* * *
"This Conflict of Interest policy shall apply to
individual investors of any and all corporations,
partnerships, cooperatives, and limited liability
companies (LLC?s) and to any entity that is an
investor in a corporation, partnership, co-
operative, limited liability company (LLC) or
any other entity that applies for a . . . linked
deposit [covered by this program] . . . . The
State Treasurer or her designee(s) shall be
the sole party responsible for the interpretation
of this policy and its application . . . . "

Isn't this "Restraint of trade"?

No. But even it were, so saying would be vacuous because there are
very few acts and agreements that can be viewed as in some way being
"in restraint of trade" that are _unlawful_. Further (though,
concededly, simplifying), almost all restraints of trade which can
factually and otherwise intelligibly be said to violate some federal
or state anti-trust law prohibition if done by private parties are
made immune from anti-trust liability when, as here, implemented by a
state acting as such (by reason of the in this connection so-called .
.. . guess what? . . . "state action doctrine").

As well as maybe a violation of the "Fair Trade" laws?

Which "Fair Trade" laws applicable in what jurisdictions?

To me, this policy would appear to be illegal in accordance
with FTC laws. Any one know more about this policy?

You have yet to provide the source from which this "would appear" to
you, other than what, without reference to any state or federal
statute or regulation or to any other legal text, you pre-suppose and
imagine"appears"?





.

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