JeffCo Transparency Bill
On Thursday, a bill I sponsored to provide more transparency for Jefferson County financial transactions passed the Alabama House of Representatives. I am hopeful that this bill will both deter and prevent the type of criminal activity and fraud that has occurred in past bond deals in Jefferson County. Financial transactions for Jefferson County will be more transparent and county officials will be more accountable to the taxpayers if this bill is enacted into law.
And here's the text of a Birmingham Business Journal article on the bill:
JeffCo-focused fiscal transparency bill passes state House
Birmingham Business Journal - by Jimmy DeButts Staff
A bill requiring greater transparency for future Jefferson County financial deals exited a state House committee on Wednesday.
In response to the county's lingering $3.2 billion sewer bond debt crisis, Rep. Paul DeMarco, R-Homewood, introduced a bill that would require:
· a public hearing on any proposal to issue debt in an amount of $5 million or more;
· a public hearing before Jefferson County bond and swap deals are initiated. Swaps would have to be priced pursuant to a competitive bidding process;
· the disclosure of the identity of each person who receives payment for services provided in connection with county financing deals.
DeMarco's bill now heads to the Alabama House of Representatives for further debate and consideration. The bill was introduced in response to years of sewer bond fraud by Jefferson County officials. The fraudulent bonds ballooned to $3.9 billion in debt for the county.
The proposed legislation requires a majority of the Jefferson County Commission to attend the public hearings and to answer questions asked by citizens.
"I'm pleased to see the entire Jefferson County House delegation get behind this effort to bring greater transparency and accountability to our county," DeMarco said. "I know it's something that taxpayers want to see happen."
Jefferson County's debt problems stem from bond swap deals that switched fixed interest debt into variable interest debt earlier this decade. The county's financial troubles began in 2002 when the county alleges two former JP Morgan employees solicited the municipality for a $1.4 billion sewer bond deal.
Jefferson County's financial floor collapsed in February 2008 when Standard & Poor's lowered its rating on $3.2 billion of outstanding sewer bond debt three levels.
Kudos to Rep. DeMarco for attempting to clean up the mess that is Jefferson County.