PLO $50 - simple hand checkup - reraised pot with marginal hand

[YKMM]

BB is ultra-loose passive and has AAxx most of the time here. Comments?

PokerStars Pot-Limit Omaha High, $0.50 BB (8 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

BB ($60.50)
UTG ($9.75)
UTG+1 ($34.95)
MP1 ($66.25)
MP2 ($51.15)
Hero ($49.25)
Button ($9.75)
SB ($36.50)

Preflop: Hero is CO with 7[img]/images/graemlins/heart.gif[/img], 9[img]/images/graemlins/diamond.gif[/img], J[img]/images/graemlins/diamond.gif[/img], Q[img]/images/graemlins/heart.gif[/img].
<font color="#666666">1 fold</font>, UTG+1 calls $0.50, MP1 calls $0.50, <font color="#666666">1 fold</font>, <font color="#CC3333">Hero raises to $2.75</font>, <font color="#666666">2 folds</font>, <font color="#CC3333">BB raises to $9.5</font>, UTG+1 folds, MP1 calls $9, Hero calls $6.75.

Flop: ($29.25) 3[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/diamond.gif[/img], 7[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">BB bets $27.8</font>, MP1 folds, <font color="#CC3333">Hero raises to $39.75</font>, BB calls $11.95.