Excerpt: [The U.S. Court of Appeals for the Second Circuit has ruled that] ERISA does not preempt the application of California's unrelated business taxable income (UBTI) tax to an ERISA pension trust, which is otherwise tax-exempt under both U.S. and California tax law ... [The case is] Hattem v. Schwarzenegger, ___ F. 3d ___, No. 05-3926-cv (2d Cir., May 23, 2006).... Many states have UBTI laws, and the application of those laws to ERISA plan trusts has been an issue for years.