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Teamsters Object to Proposed IRS Regulations on Public Approval of Bonds

December 5, 2008
New Regulations Threaten to Undermine Public Approval Process; Accountability is Vital

(Washington, D.C.) – Today, the Teamsters Union submitted comments strongly objecting to the Internal Revenue Service’s (IRS) proposed changes to the public approval requirements for tax-exempt private activity bonds.

 

The Teamsters wrote in comments to the IRS that the proposed regulations conflict with the best interests of the public, and would significantly undermine this critical public approval process. Changes to the regulations would include:

  • Decreasing the amount of notice given to the public prior to a hearing, from 14 days to 7 days;
  • Allowing government agencies to cancel hearings if the public does not submit “timely requests” to participate;
  • Allowing public notices to contain only a general description of a project instead of specific project details.

“These changes would diminish transparency and erode public oversight of private development projects,” said Teamsters General Secretary-Treasurer C. Thomas Keegel. “In today’s economic crisis, the public must be given every opportunity to question their elected officials and the private developers seeking tax-exempt bonds.”

Currently, all state and local government entities must follow a public approval process before issuing bonds to private entities. This includes holding public hearings where concerned citizens may speak for or against a proposed project. Public notices of hearings must also provide the public with project details. These existing regulations ensure at least some transparency and accountability on the part of public officials in the area of public-private financing.

The Teamsters strongly believe that the public must have sufficient time to analyze and understand proposals, and to respond to hearing notices. Reducing both notification time and request time would significantly inhibit public participation. And if the public is not provided with sufficient information concerning the details of a project, it cannot form an educated opinion.

The International Brotherhood of Teamsters was founded in 1903 and represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.