Citing separation of powers, the state's 3rd District Court of Appeal in Sacramento ruled Wednesday it could not intervene because Gov. Arnold Schwarzenegger had not signed the bill into law.

The lawsuit was filed by the Howard Jarvis Taxpayers Association, with support from most Republican state lawmakers. It argued that the Democratic majority acted illegally when it passed the tax increases because it did so with a simple majority vote.

The state Constitution requires a two-thirds majority for tax increases.

John Coupal, president of the taxpayers association, said the group was considering an appeal to the state Supreme Court and a new lawsuit in federal court because the vote violated the constitutional rights of the Republican minority members.

"We are still looking at this case for potential appeals because we believe this issue needs to be resolved," he said.

Schwarzenegger vetoed the $18 billion proposal, which included a mix of tax increases and spending cuts as a way to start closing California's $42 billion budget deficit. The governor said the package didn't make enough labor and environmental concessions.

With his promise that he'd made no deals to gain the appointment, Burris cleared what he called one of the two hurdles between him and the oath that would make him Illinois' junior senator. Senate Democrats raised both obstacles.

The other hurdle, the signature that Illinois Secretary of State Jesse White has so far declined to provide on paperwork certifying Burris' appointment, is in the hands of the Illinois Supreme Court. White has said the governor shouldn't have appointed someone to fill President-elect Barack Obama's Senate seat, given the corruption charges against him.

"I feel like I've passed this test with flying colors," the 71-year-old Burris told reporters Thursday after testifying for almost 90 minutes before the committee, which later voted to recommend impeaching the governor. "I have nothing to hide."

Now Burris awaits the court's decision. It isn't clear how long that will take.

Blagojevich was arrested Dec. 9 on federal charges that include allegations he schemed to sell or trade Obama's Senate seat.

The two-term Democratic governor has denied any wrongdoing, but Senate Democrats had warned that the corruption allegations would strip credibility from anyone he named to fill the vacancy. Blagojevich ignored them and appointed Burris on Dec. 30, creating a furor.

White pressed the governor not to fill the seat before Burris' appointment, then withheld his signature as a "ceremonial" stand against the move, White spokesman Dave Druker said Thursday. If the court says White has to sign, he will, according to Druker.

"No one should have to worry about getting a death threat because of the way he or she votes," said James Bopp Jr., an attorney representing two groups that supported Proposition 8, Protect Marriage.com and the National Organization for Marriage California. "This lawsuit will protect the right of all people to help support causes they agree with, without having to worry about harassment or threats."

The lawsuit, filed Wednesday in federal court in Sacramento, asks the court to order the secretary of state's office to remove all donations for the proposition from its Web site.

It also asks the court to relieve the two groups and "all similarly situated persons" from having to meet the state's campaign disclosure requirements. That would include having to file a final report on Proposition 8 contributions at the end of January, as well as reports for any future campaigns the groups undertake.

Proposition 8, approved by 52.3 percent of California voters on Nov. 4, reversed a state Supreme Court decision allowing gay marriage. The measure's opponents have asked the Supreme Court to overturn it.

The lawsuit filed Wednesday cites a series of incidents in which those who gave money to support Proposition 8 received threatening phone calls, e-mails and postcards. One woman claims she was told: "If I had a gun, I would have gunned you down along with each and every other supporter."

Another donor reported a broken window, one said a flier calling him a bigot was distributed around his hometown and others received envelopes containing suspicious white power, according to the lawsuit.

Minneapolis attorney Tom Kelly says he concluded that the state Supreme Court would not accept a petition for further review of the case, so it would be a futile exercise. He says that means the legal wrangling in the case is over.

Thursday was the 30-day deadline for Craig to ask the high court to review a Minnesota Court of Appeals decision that went against him.

The Idaho Republican was arrested in 2007 by an undercover police officer who was conducting a sting operation against men cruising for gay sex at the Minneapolis-St. Paul International Airport. The senator quietly pleaded guilty to disorderly conduct and paid a fine, but changed his mind after word of his arrest became public. He insisted he was innocent and that he was not gay. He did not seek re-election.

Charles G. Martin, 43, of Glencoe, Ill., and Malibu, Calif., was arrested Tuesday night in the Los Angeles area, and John E. Walsh, 60, of Lake Forest was picked up Wednesday morning on a criminal complaint charging them with wire fraud.

A court order closed their One World Capital Group LLC in December 2007 and froze its last $636,815 of assets. The two men operated a "Ponzi-like" scheme diverting money out of customer accounts and into their pockets, prosecutors said.

The criminal complaint was filed in U.S. District Court on Tuesday.

One World was formed in 2005 and had offices in Winnetka and New York, prosecutors said. Martin and Walsh misled customers and federal regulators to conceal the fact that they siphoned off money customers thought was being used for currency trades.

Credit card and bank records show Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at hotels and $1 million renting private jets, prosecutors said. He also purchased a fleet of luxury vehicles, donated hundreds of thousands to celebrity charity events and hired bodyguards, they said.

A court in Hangzhou, a prosperous city in eastern Zhejiang province, sentenced Wang Rongqing on Wednesday on charges of subverting state power for organizing the banned China Democracy Party, according to Chinese Human Rights Defenders.

Wang was detained in June, two months before the Olympic Games started, the group said. Wang's brother, Wang Rongyao, confirmed the sentence. The Hangzhou Intermediate People's Court could not be immediately be reached for comment.

Wang has been repeatedly harassed and detained by police during his years of activism, which started in the late 1970s as China's hard-line Maoist era came to a close and some started calling for democracy. He was detained for two months in 1999.

"He was not in good physical condition and he stood in court with the assistance of the police, but he was in good spirits," said Zou Wei, a friend and fellow dissident of Wang who was in court Wednesday.

Founded by dissidents in mid-1998, the China Democracy Party was quashed just six months later by the Communist Party, which allows no challenge to its political monopoly. Dozens of activists were arrested and sentenced to up to 13 years in prison, most on charges of subverting state power.