Liberals go after Texas AG for paperwork irregularity, ignore Jerry Brown stealing $331 million of federal money.

[Democrats Say Law Does Not Apply To Them]

Special prosecutors will ask a Texas grand jury as early as this
month to indict the state's attorney general on first-degree
felony charges for suspected securities laws violations, one of
the prosecutors said on Thursday.

A spokesman for Attorney General Ken Paxton, a Republican who
came to office earlier this year with strong Tea Party support,
was not immediately available for comment.

"There is evidence that needs to be presented to the grand jury
about a couple of different violations. One of which that they
will have to determine is if securities fraud was present," said
attorney Kent Schaffer, appointed to investigate the suspected
violations.

Paxton drew national attention recently when he said county
clerks in Texas who object to gay marriage on religious grounds
can refuse to issue marriage licenses to same-sex couples
despite last week's landmark U.S. Supreme Court ruling requiring
states to allow same-sex marriage.

When Paxton was in the legislature, he was hired to seek clients
by an investment firm called Mowery Capital Management, which is
facing allegations from the State Securities Board of defrauding
investors.

The Texas State Securities Board in May 2014 found that Paxton
was not properly registered as an investment advisor in his work
with the firm. It reprimanded him and fined him $1,000.

http://www.reuters.com/article/2015/06/16/us-california-
mortgagefunds-idUSKBN0OW01420150616

A California judge has ruled the state is obligated to pay $331
million in mortgage relief funds it used to bolster its
finances, but stopped short of ordering that the money be turned
over to homeowners hard hit by the mortgage and foreclosure
crisis.

Instead, Judge Timothy Frawley of Sacramento County Superior
Court in his ruling on Friday said it is up to Governor Jerry
Brown and lawmakers to come up with a plan to return $331
million that was part of the $25 billion National Mortgage
Settlement of 2012 when the state has money available to do so.

Robert Gnaizda, general counsel for the three groups that
brought the lawsuit, said now that California's budget has swung
to a surplus and Brown and lawmakers are debating what to do
with it, the state is in position to begin making payments.

"We would be happy to work with the governor on a distribution
schedule," Gnaizda said, adding that Frawley's ruling could spur
other states that also held on to their proceeds from the
settlement to release the money.

Gnaizda said groups that sued California over the funds are
seeking meetings with Brown and top Democrats and Republicans in
the state Senate and Assembly on how to move forward with
payments.

It is not clear if that would be swept up into budget talks that
are under way between Brown and lawmakers, Gnaizda said.

Brown's fellow Democrats control the Senate and Assembly but
have been at odds with the governor over how much the state sets
aside for spending in its budget for its next fiscal year. With
the state's revenue exceeding expectations, they want to spend
more than the governor does.

H.D. Palmer, spokesman for California's Department of Finance,
said Brown's administration has not decided whether it will
appeal Frawley's decision.

"Our legal team is still reviewing it to determine the legal
implications, the fiscal implications and what the next steps
are going to be," Palmer said.

The case is National Asian American Coalition et al v. Edmund
Gerald "Jerry" Brown Jr, Governor, et al, Case No. 34-2014-
80001784, in Superior Court of California, County of Sacramento