Countywide : Moorlach Calls Investment Law Problematic

Treasurer-Tax Collector John M.W. Moorlach warned Tuesday that several members of the Treasury Oversight Committee could be forced to resign if a state law inspired by the county bankruptcy is not changed.

The law, which establishes a variety of safeguards and regulations that county officials across the state must follow when investing public money, contains a clause prohibiting oversight committee members from working in the financial services business for three years after leaving the committee.

Moorlach said the clause can be interpreted to mean that people who work as bond underwriters, bond counsels, securities dealers or securities brokers cannot serve on the committee. If that’s the case, several members of Orange County’s panel, including Tustin Councilman Jeffery M. Thomas, might have to step down before the law takes effect Jan. 1.

“It’s that one sentence that is causing us so much frustration,” Moorlach said.

The county greatly benefits from having people with extensive experience in the financial services business help the county dig itself out of bankruptcy, the treasurer added.

Moorlach is working with the California Assn. of County Treasurer-Tax Collectors in an effort to get the law amended. Members of the county Board of Supervisors on Tuesday expressed support for Moorlach’s efforts.

Also on Tuesday, the board approved a new set of bylaws for the Treasury Oversight Committee. It also heard a status report concerning efforts to privatize parts of the Environmental Management Agency, which handles a variety of functions.

Some residents who attended the meeting complained that county officials are not moving fast enough toward privatization. But EMA officials said they need more time to determine how the recently adopted bankruptcy recovery plan will affect the various privatization ideas. Officials will report back to the board in two months.