Lawmakers in talks with AIG employees

Hartford (WTNH) - Connecticut lawmakers are in talks with insurance giant AIG to make sure more than a dozen executives, including the CEO, comply with a legislative subpoena demanding they appear at the state Capitol on Thursday.

 It's still not known how many of the 13 subpoenaed executives will show up for Thursday's hearing.

"An outright refusal to appear, simply defiance of the subpoenas, would lead us to go to court and seek a contempt of court order," said Attorney General Richard Blumenthal.

AIG lawyers are said to be posing questions about safety for the executives.

"We want to be mindful about the potential threat to security and safety, as well as privacy of these individuals and the disruptive effects on the company at this very sensitive economic time," Blumenthal said.

Meanwhile, a panel of experts put together by the Connecticut chapter of the American Constitution Society made it clear today that Connecticut state government can tax the AIG bonuses at any rate it pleases.

"The state has the power to tax and there are no specific limits put on Connecticut's power to tax," said Professor William Dunlap, Quinnipiac University School of Law.

An attorney who specializes in Connecticut employment law says AIG's argument that it had to pay the bonuses because of the Connecticut Wage Act is bogus because the statute means compensation for services rendered based on performance.

"Surely a group of folks who take a company down and put it in a situation where, but for the American taxpayer it would be bankrupt, weren't performing their jobs adequately," said Attorney Bernard Jacques.

That's just one of the issues that legislators on the Banks Committee want to ask the AIG executives.