Article: San Jose's bid to post POS on-line raises questions over blue sky laws.(San Jose, California)

San Jose officials have run aground in their attempt to test the municipal market's uncharted technological waters, dropping plans to publish a preliminary official statement on the city's Internet site.

City officials last week were set to make the POS available via the World Wide Web for tomorrow's negotiated sale of $76.555 in San Jose-Santa Clara Water Financing Authority sewer revenue bonds, managed by Morgan, Stanley & Co.

However, city attorney Joan Gallo advised against the electronic distribution, citing concerns over "blue sky" laws because there are 13 states where San Jose has not obtained authorization to sell its bonds.

Blue sky laws, ...

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