ALABAMA DEMOCRATIC PARTY
FOR IMMEDIATE RELEASE
Friday, October 22, 2010

CONTACT:
Libby Jongeward
Communications Director
334.549.3956
libby@aladems.org

TREASURER CANDIDATE DEBUTS NEW CAMPAIGN AD AND WEBSITE

BankruptBoozer.com Reveals GOP Nominee’s Abysmal Corporate Track Record

MONTGOMERY, AL – Charley Grimsley, the Democratic nominee for State Treasurer, today launched “Bankrupt Boozer,” a new campaign ad and website (www.BankruptBoozer.com) documenting Republican nominee Young Boozer’s lackluster financial track record and history of professional bankruptcy.

Boozer is an affluent Montgomery financial consultant whose resume includes two professional bankruptcies in which he was a key player.  During Boozer’s stint as Senior Vice President for Coral Petroleum, Inc. of Houston Texas, the company was found guilty of violating federal crude oil pricing regulations and was ordered to pay over $10 million in fines.  Three years later, Coral Petroleum filed for bankruptcy. Among debts owed was $16.9 million to communist Venezuela's state-owned oil company.

Boozer also had a hand in the failure of Colonial Bank -- the largest bank failure in Alabama state history and the 6th largest bank failure in U.S. history.  Boozer was Vice President of Risk Management and General Auditor of Colonial Bancgroup, whose failure cost the taxpayers $3.8 billion in a government funded bailout.  This bank failure also cost hundreds of people their jobs, shareholder equity and retirees their retirement funds. The FDIC attributes Colonial’s failure in part to a “failure to implement adequate risk management practices.”

“The facts speak for themselves,” said Grimsley, the Democratic nominee.  “We deserve a Treasurer with the knowledge and experience to handle our finances responsibly in these tough times.  My opponent’s track record proves he is unable to effectively and ethically manage funds as large as our state budget.” Grimsley continued, “How can we trust billions of dollars to a man who has helped to bankrupt not one, but two major corporations?”

Charley Grimsley has the strong financial background Alabama needs to oversee an office that is in charge of billions of dollars in state funds.  A third-generation retired community banker, Grimsley's bank was highly rated among its peers in safety and soundness.  Grimsley is deeply involved in community service and has served as a member of the Fayette County Board of Education and as the Commissioner of the Alabama Dept. of Conservation and Natural Resources.

The “Bankrupt Boozer” ad is one of the most memorable ads of the political cycle and is currently showing in Montgomery markets and will air statewide beginning Monday, October 25th.  For more information regarding the Alabama State Treasurer’s race, please visit www.BankruptBoozer.com.

Q&A: Treasurer candidates cite education, banking skills

Montgomery Advertiser

October 7, 2010

The Advertiser posed the following questions to the candidates for state treasurer in the Nov. 2 general election. The candidates are Republican Young Boozer and Democrat Charley Grimsley.

What makes you the better candidate for this office? Please be specific.

Boozer: My education in finance, my private sector experience and the many leadership roles I've held make me the better candidate. I earned a BA in economics from Stanford University and a master's degree in finance from the Wharton School of Business at the University of Pennsylvania.

I have more than three decades of private sector experience in cash, bond and investment management. I'm also the founder of the SAFE Program (Security for Alabama Funds Enhancement), which the state treasurer administers. SAFE insures from loss all funds of cities, counties and the state held in qualified public depositories. And it has never lost a single penny.

Simply put, the office of Alabama state treasurer is a job, not a political stepping stone. When you hire someone to perform a job, you want to be sure they are the most qualified candidate for the position.

There is a greater need now than ever before to elect a treasurer with real-world experience, someone who is able to help our state navigate the most troubled financial waters in recent memory. I am that candidate.

I want to use my education in finance, private sector experience and leadership to give back to my state.

If Alabama citizens honor me with their vote, I pledge that I will manage and invest their tax dollars wisely.

Grimsley: I am the best candidate for state treasurer because I know how to manage money and my opponent does not. My opponent was executive vice president for risk management at Colonial Bank, which became the sixth biggest banking failure in U.S. history. My bank, First Bank of Fayette, was highly ranked nationally because I know how to manage money.

Poor risk management by my opponent bankrupted Colonial Bank, and poor risk management by Treasurer Kay Ivey almost bankrupted the PACT program. Ivey put 70 percent of the PACT fund in the stock market and lost $400 million. She paid investment consultants millions to lose millions, and we must stop paying people to lose money.

I am the only candidate for state treasurer who fought to make the state of Alabama keep the word it gave to 44,000 PACT kids. I will continue that battle until the youngest PACT holder graduates from college.

I am convinced that BP will not make our state whole unless we make them. I will sue them myself if necessary to make them pay for their unprecedented damage to our people, our environment and our revenues.

Because my opponent was once an executive for a Texas oil company that also went bankrupt, I believe you should not hire an oil man to fight an oil company. You should hire someone like me who fought for average Alabamians and saved Gulf State Park for all of the people.

What do you see as the biggest issue facing the office that you are seeking, and how would you specifically address it if elected?

Boozer: One of the many issues facing the office of treasurer is the proper investment of the state's money. In these difficult financial times, it is essential that our funds are invested and managed to improve our interest, dividend and capital gain returns.

The treasurer is responsible for managing several very different investment portfolios. The Treasurer's Office collects tax receipts and invests these funds on a short-term basis. The Treasurer's Office oversees the college savings programs and must provide investment guidance on a long-term basis
for the plans.

It also provides operational support for the Alabama Trust Fund, which includes a seat on the board that governs its investments. Those investments should be made with future generations in mind.

Finally, the treasurer serves on approximately 25 boards, many of which have investment needs.

If elected, I will conduct a review of each investment portfolio. The review will begin with a determination of the fund's objectives. Many times an objective is either outdated or simply wrong.

The next step will be to evaluate the specific investment policy for each portfolio and make any changes that are required for the objective or by the market. Finally, procedures will be established to ensure the objectives and policies are achieved.

The result of this work will be to provide structure, discipline and accountability to the investment process. The payoff will be to better manage the state's monies, giving us the opportunity to reduce risks and increase our income.

Grimsley: We must restore the people's faith in the Treasurer's Office by replacing poor risk management with sound risk management.

My opponent's poor risk management at Colonial Bank bankrupted them. It doesn't make sense to hire someone who helped bankrupt a bank and an oil company to be state treasurer.

Kay Ivey put 70 percent of PACT in the stock market and lost $400 million. She paid investment advisors millions to lose millions. That is ridiculous and I will stop it.

To me, the Alabama State Treasury is the people's bank, and I will run it professionally and treat the taxpayers for what they are: valued customers of the people's bank.

Today, people wanting information from the treasurer's office must fill out written requests and wait ... and wait. I will make customer service a top priority and increase transparency. State government belongs to the people, and when people ask for information or assistance, they should get it promptly from people who understand they are paid by the people to serve the people.

In order to recover from the recession, small businesses must have access to credit. I support using state deposits to stimulate small business lending in Alabama. Small businesses provide the majority of jobs in America, and their access to credit is essential for our economic recovery.

When the people elect me state treasurer, they will get more than just a good money manager. They will get someone who fights for the underdog ... and wins.

Advertiser editorial: Boozer, Grimsley better choices

Montgomery Advertiser

May 29, 2010

Voters in both parties will select their nominees for state treasurer in Tuesday's primaries. The office is being vacated by Republican Kay Ivey, who is ending her second term and is ineligible to seek a third.

The Republican primary pits a man with one of the state's most unusual names against a man with the state's most famous political name. Young Boozer -- as he declares in his advertising, that is his real name -- faces George Wallace Jr., the son of former Govs. George Wallace and Lurleen Wallace.

On the basis of his strong financial credentials, the Advertiser recommends the nomination of Boozer.  He spent much of his career in banking and his grasp of money management and sensible financial structure is sound. Although much of what the treasurer's offices does is prescribed by law, there still is much to be said for having a competent financial professional in the job. Boozer certainly fits that bill.

Wallace served two terms as state treasurer, leaving that office 16 years ago. He later served on the Public Service Commission. He has been an honorable public servant and the Advertiser has endorsed him in races in the past. However, GOP voters have an opportunity to nominate an unusually well qualified individual in Boozer and we urge them to do so.

In the Democratic primary, Charley Grimsley faces Jeremy Scherer in a race that pits a candidate with a strikingly bipartisan background against a significantly younger opponent.

The Advertiser recommends the nomination of Grimsley by Democratic voters on the strength of that broader background. Grimsley, a retired community banker, was state conservation commissioner in Democratic Gov. Jim Folsom Jr.'s administration and later was chief of staff for Republican Lt. Gov. Steve Windom.

Grimsley's banking career gives him a decided edge in experience over Scherer, who is an attorney and who lost a bid for a seat in the state House of Representatives in 2006.

Grimsley is the better candidate in this race.

Endorsement: Wallace, Grimsley best for treasurer

Opelika-Auburn News

Editorial
Published: May 26, 2010

Alabama can be proud it has a strong field of candidates seeking Kay Ivey’s job as state treasurer on both sides of the political ticket.

Arguably the most competitive race is the Republican one with George Wallace Jr., who has enjoyed past political success in the Public Service Commission, and Young Boozer, who has served as Deputy Finance Director for Gov. Bob Riley. Republican voters truly cannot go wrong with either choice.

Wallace has a long history with what has become the beleaguered PACT program. Though the program has taken some hits of late, there is no reason why it cannot survive for the long haul. Wallace is a very capable public servant, though he may not be the politician his late father was. Then again, that might be a good thing.

The Opelika-Auburn News endorses Wallace, but reminds voters they cannot go wrong with Boozer as well.

On the Democratic side, the Opelika-Auburn News endorses veteran banker and former Lt. Gov. Steve Windom Chief of Staff Charley Grimsley, of Northport, over Birmingham attorney Jeremy Sherer. Why? Grimsley is a third-generation banker who has previous experience in Montgomery politics. This fits the definition of Alabama Treasurer better than his opponent, who we believe has a good chance to have a successful political run in the future.

OUR VIEW: Charley Grimsley is best Democratic choice for state treasurer; Young Boozer is our pick on the Republican side.

By Birmingham News editorial board

May 25, 2010, 5:49AM

The state treasurer is an important position, but elections for this job aren't usually the sexiest contests on the ballot. Keeping track of state money, paying the state's bills and managing the state's financial investments are crucial tasks, but they often don't make for exhilarating campaigns.

Except when something goes wrong, as it did with the near collapse of Alabama's Prepaid Affordable College Tuition plan, which the treasurer's office oversees. Although the Legislature salvaged the program, the prospect of PACT failing to deliver promised tuition payments for 44,000 contract holders created a vocal interest group and has given shape to this year's race for treasurer.

The PACT issue offers a timely reminder of why the treasurer's race matters.

On the Democratic side, Charley Grimsley is the best choice. Grimsley was a third-generation community banker in Fayette and has in retirement amassed state government experience.

He served as the state's conservation commissioner under former Gov. Jim Folsom Jr., then served as chief of staff for Republican Lt. Gov. Steve Windom and later for Democratic Senate President Pro Tem Hinton Mitchem. His knowledge of banking and state government will be a plus in the treasurer's office, and he has the confidence of some of the leaders in the group leading the charge to save PACT. He has the makings of a good state treasurer.

For Republicans, the choice is between former state Treasurer George Wallace Jr. and Young Boozer, a retired banker who most recently worked as a deputy finance director for Gov. Bob Riley.

Both candidates have something to offer. Wallace has a solid track record as a public official, and in fact, he started the PACT program when he was treasurer before. He said he wants to be state treasurer again to make sure the PACT program lives up to its obligations.

But Boozer's background may be more suitable for the task. He has the education and extensive banking experience, the longest stretch of it with the now-defunct Colonial Bank, to successfully manage the PACT crisis. His experience with state government is a plus, but the fact he has financial experience away from government sets him apart from Wallace.

We believe Young Boozer is the better choice for Republicans.

Grimsley, Boozer get nod

Florence TimesDaily

Published: Tuesday, May 25, 2010 at 3:30 a.m.

THE ISSUE The TimesDaily recommends Democrat Charley Grimsley and Republican Young Boozer for state treasurer in the June 1 primaries.

In an ordinary election year, no one pays much attention to the state treasurer's race in Alabama.

But with a state-sponsored college tuition plan foundering and two unforgettable names in the contest, 2010 is different.

The TimesDaily recommends Democrat Charley Grimsley and Republican Young Boozer in the June 1 primaries.

Grimsley has the kind of financial background needed to oversee an office that is in charge of various state funds. He and his family operated banks in Fayette, Walker and Chilton counties. He has served on the Fayette County Board of Education, the Alabama Department of Conservation and Natural Resources, chief of staff for former Lt. Gov. Steve Windom and chief of staff for state Sen. Hinton Mitchem.

In the Democratic primary, Grimsley faces Jeremy Sherer.

Boozer likes to joke that his name is as memorable as that of his competition in the Republican primary, former State Treasurer George Wallace Jr.

Wallace, the son of a famous Alabama governor, established the Prepaid Affordable College Tuition program that is being bailed out by taxpayers.

Boozer has a solid history of work in banking and finance, and brings the kind of monetary expertise needed to operate as state treasurer.

Most recently, he served as deputy finance director of the state of Alabama and continues his role as president of the Young Boozer Family Foundation in Montgomery.

Decatur Daily

Editorial

Young Boozer, Charley Grimsley for state treasurer

Candidates usually have a difficult time raising legitimate issues in their quest to become state treasurer. The treasurer’s office is the taxpayers’ bank and banks are not sexy topics until someone embezzles a wad of money.

This year, however, the Prepaid Affordable College Tuition plan gives candidates an issue the public under- stands. It overshadows the management of the $100 millions of tax revenue that flow through the office daily.

The PACT issue at least for now was resolved with a legislative appropriation of $548 million over a period of years. The failure of the program does, however, illustrate the need for expertise in the treasurer’s office.

George Wallace Jr., a two-time treasurer, was co-sponsor of PACT and seeks the office again after a period of time out of political life.

His Republican opponent is Young Boozer, a retired Colonial Bank executive who also spent time working in finance for Gov. Bob Riley.

Boozer has the ability to add value to the office that Wallace doesn’t. He’s running because he said he wants to give back to his state through his financial expertise. He says PACT was doomed from the beginning and blames Wallace.

Wallace has the most recognizable name in Alabama politics. Yet, he’s made a career of living off public jobs and this run appears to be another job hunt.

Democrats also have a retired banker in Charley Grimsley, who is best known for helping the Save Alabama PACT group overcome legislative roadblocks and put the tuition fund back on its feet. He, too, says PACT’s structure doomed the program.

His slogan is: “I fight for the underdog — and I win.” His record backs up the claims. His should be the philosophy of every elected officeholder.

The Daily recommends Democrat Charley Grimsley and Republican Young Boozer for state treasurer.

UAW endorses Charley Grimsley for State Treasurer

Grimsley:  "They are the salt of the earth and the backbone of our nation."

HUNTSVILLE, AL – On behalf of the 12,000 active and retired members of the United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) who reside in the state of Alabama, the Alabama UAW Cap Council is proud to announce its endorsement of Charley Grimsley for Alabama State Treasurer in the upcoming 2010 Democratic Primary.

The UAW Cap Statewide Screening Committee, which consists of delegates from all UAW local unions in the state, met on Thursday, April 22, 2010 and voted to endorse Grimsley.

"I am deeply humbled and honored to earn the UAW endorsement," said Grimsley.  "The theme of my campaign is fighting for the underdog and winning, and I am proud to be fighting for these hardworking Alabamians who too often are underdogs."

Grimsley said the working people of Alabama are the key to the state's economy recovery and future.  "Wall Street greed got America into a recession, but the hardworking men and women of this country will get us out," said Grimsley.  "The UAW is helping America rebuild our country and restore our economic leadership in the world."

"Thank God for the working men and women of America," said Grimsley.  "They are the salt of the earth and the backbone of our nation."

Grimsley receives ADC endorsement

Grimsley: "We fight for the underdog.  And we win."

MONTGOMERY, AL – Charley Grimsley, Democratic candidate for State Treasurer, has been endorsed by the Alabama Democratic Conference, the oldest major African-American political group in Alabama.  The announcement came on Saturday, May 15 at the conclusion of the ADC's 50th Anniversary Conference in Montgomery.

"I am honored and humbled to have the ADC endorsement," said Grimsley.  "For 50 years, Dr. Joe Reed and the thousands of ADC members have been fighting for the underdog and winning.  This is what I do, and I am proud we have now teamed up to continue our fight for the underdog," Grimsley added. 

While working in the lieutenant governor's office, Grimsley formed a bipartisan coalition that passed a law forcing Medicaid to cover breast reconstruction after radical mastectomy.  "A brave woman named Vanessa said the state told her they didn't have the money to fix her, and she would just have to live with it," said Grimsley.  "So we took her case to the legislature and made Medicaid do the right thing."  The law was named Vanessa's Law in honor of the courageous woman who dared to challenge the status quo.

"The ADC and Charley Grimsley: We fight for the underdog.  And we win."

Save Alabama PACT leaders endorse

Charley Grimsley for state treasurer

MONTGOMERY, AL --  The state leaders of Save Alabama PACT, a grassroots organization representing parents and beneficiaries of Alabama's beleaguered prepaid tuition program, have endorsed Charley Grimsley for State Treasurer in recognition of his efforts in helping to save the PACT program.

On April 23, Gov. Bob Riley signed into law SB 162, which will provide $547.6 million over 13 years to Alabama's ailing prepaid tuition program.  The program's actuaries say the bill will save the program, which has been plagued by massive investment losses that placed into question the program's original promise as state guaranteed.

"We could not have passed the PACT rescue bill without Charley Grimsley," said Dr. Richard Huckaby, a Lanett veterinarian who co-founded Save Alabama PACT.  "Charley was our field general who crafted our legislative battle plan, and with his leadership we executed this plan and rescued PACT," said Huckaby.  "I am endorsing Charley Grimsley for state treasurer because in order to maintain this victory we have won for PACT, there is no better choice than the man who helped us win that victory."

Grimsley was also endorsed by Patti Lambert, a Decatur Realtor who joined Huckaby in co-founding Save Alabama PACT.  "Not only did Charley provide us his legislative skills, but he gave his heart and his passion to make the dream of a college education come true for 44,000 Alabama children," said Lambert.  "Charley fights for the underdog.  And he wins."

Lambert pointed out that if the bill had not passed, increased liquidations and litigation would have doomed the program.  "If we had not been successful, the state would have been flooded with lawsuits, and millions that will now go to educating our children would have gone into paying attorneys."

Grimsley has also been endorsed by Rep. Craig Ford (D-Gadsden), House sponsor of the PACT rescue bill.

Rebecca Thrasher, secretary-treasurer of Save Alabama PACT, joined in endorsing Grimsley.  "Charley's support for our crusade was unwavering," said Thrasher.  "When times were the toughest, he never gave up. We could not have won this victory without Charley Grimsley."

Democratic Party certifies Grimsley to run for state treasurer

Challenge rejected: Grimsley declared a Democrat in good standing

On Friday, the Executive Board of the Alabama Democratic Party declared Charley Grimsley a Democrat in good standing and certified him as a candidate for state treasurer in the Democratic primary on June 1.

In a unanimous decision with one abstention, the Executive Board rejected a challenge to Grimsley's candidacy filed by Pamela Miles, a supporter of Jeremy Sherer, Grimsley's opponent.

Grimsley said the frivolous challenge represents the kind of politics the people of Alabama are sick of.  "It is no coincidence that the attorney who prepared Ms. Miles' challenge was a law partner of my opponent.  They even stooped so low as to try to dig up dirt on me by going through my divorce records," Grimsley said.  "This is desperation politics by a desperate candidate."

Besides the personal attacks in her complaint, Miles alleged Grimsley should be disqualified for an alleged violation of the Party's Radney Rule for making contributions to Republicans and by serving as chief of staff to Republican Lt. Gov. Steve Windom, a former Democrat. 

In the hearing, Grimsley produced evidence that Sherer had also made a contribution to a Republican, George Wallace, Jr., and had also worked for a Republican, Rep. Spencer Bachus.  "My opponent tried to throw me off the ballot for doing the same things he has done," said Grimsley.  Grimsley also refuted claims that he had contributed more to Republicans than Democrats.

Under Democratic Party rules, a violation of the Radney Rule does not result in disqualification if the candidate can show he is an asset to the Party and the ticket.  Grimsley recapped his long career in public service as a Democrat, including:

• Grimsley was elected as a Democrat to the Fayette County Board of Education in 1988.

• In 1993, Grimsley was appointed by Democratic Gov. Jim Folsom to serve in his cabinet as Commissioner of Conservation and Natural Resources.  Grimsley donated his salary to launch a crusade that passed the strongest boating safety law in America, including the nation's first boating license.  Death on the water decreased by almost 50 percent the first year following its passage.

• While serving as chief of staff to Windom, Grimsley helped to recruit a bipartisan coalition that passed "Vanessa's Law" requiring Medicaid to cover breast reconstruction after radical mastectomy.

• Using his own money, Grimsley sued Gov. Bob Riley over Riley's no-bid attempt to lease part of Gulf State Park beach to a Georgia hotel developer to build a 4-star luxury hotel and spa that would have priced most Alabamians off Gulf State Park beach forever.  In 2009, the Alabama Supreme Court ruled in Grimsley's favor, saving the beach for all Alabamians.

As a private citizen and PACT parent, Grimsley has been working with legislators and PACT supporters on solving the crisis in Alabama's prepaid tuition program.  "While George Wallace, Jr. is doing nothing to save the program he screwed up and my opponent is sifting through my divorce records trying to dig up political dirt, I am working day and night trying to save the PACT program and send 45,000 kids to college," Grimsley said.

Grimsley told the Democratic leaders that 2010 was going to be a crucial election cycle for Democrats, and he urged them to keep the Party in the political mainstream.  "You cannot add by subtracting, and you cannot multiply by dividing," Grimsley said.  "To win in November, we must Keep the Big Tent Big."

"My ability to reach across the political aisle will be an asset, not a liability," Grimsley said.  "The general election will not be won by either the left-wing or the right-wing bloggers.  Just go to Wal-Mart and talk to people.  People are tired of Ds and Rs.  They are sick of petty partisanship and political mudslinging.  They are looking for public servants, not politicians," Grimsley said. 

"Servantship over partisanship is what I am offering them."

AP: Baxley removed 'guarantee' from Ala. PACT plan

1/24/2010, 11:01 a.m. ET

PHILLIP RAWLS

The Associated Press

(AP) — MONTGOMERY, Ala. - Lucy Baxley said she removed all guarantees from promotional literature and contracts for Alabama's prepaid college tuition plan in 1995 when she was state treasurer because there was no legal obligation in state law.

Six years later, the Legislature changed the law to make that explicit.

"If there is an obligation, it is moral," Baxley said in an interview with The Associated Press.

Alabama's Prepaid Affordable College Tuition plan now does not have enough money to cover all future tuition payments. Some participants have filed lawsuits to make sure they get the tuition they expected, and the Legislature is reviewing five different proposals for shoring up the financially troubled plan.

It was launched two decades ago when Lt. Gov. Jim Folsom Jr. and then-State Treasurer George Wallace Jr. got the Legislature to approve a bill making Alabama one of the earliest states with a prepaid tuition plan.

The Legislature named the program after Wallace and Folsom and gave the state treasurer the duty of implementing the plan in 1990.

The idea was simple: Parents pay a fixed amount in expectation their child will receive four years of tuition at a state university after graduating from high school. A state board invests the parents' payments and uses the earnings to pay tuition.

That worked well until tuition rose faster than expected and investments plunged in value. Now, it could take anywhere for $236 million to $1 billion to meet all obligations, depending on how fast tuition rises and the investments recover.

Wallace's earliest contracts for PACT and his promotional literature used the word "guarantee."

When Baxley succeeded Wallace in 1995, she said she asked the PACT staff if there was a guarantee and the staff told her no.

"I said, 'Why do we have it in the material?' They said, 'We just started off that way.'

"I said, 'I want us to go through every PACT printed material we have and take out the word 'guarantee' because we can't make it 100 percent sure.'"

Wallace is running for state treasurer again as a Republican on a platform of getting the PACT program on sound footing once more. He disagrees with Baxley's interpretation of the law. He said the original law made it clear there was an obligation by the state to cover tuition.

"I believe we have a legal, moral and contractual obligation. It's a matter of honor," he said.

No matter who is right, the Legislature changed the PACT law in 2001 to say the program is not a debt or obligation of the state.

Even with that change, State Treasurer Kay Ivey, who succeeded Baxley in 2003, put out for a time promotional literature saying PACT "will provide a child's undergraduate tuition and mandatory fees up to 135 semester hours at any Alabama public university or community college."

A Democratic candidate for treasurer, Charley Grimsley, said he is among the 45,000 current PACT participants who paid their money in expectation of full tuition for his child. He is threatening to join the litigation if the state doesn't keep paying his daughter's tuition at the University of Alabama.

"If the state does not honor the guarantees Wallace promised but were never there, then history will indeed record the PACT program as a Ponzi scheme. And George Wallace Jr. will be remembered as George C. Madoff," Grimsley said.

Parents in the Save Alabama PACT group are backing bills pending in the Legislature that would make it clear the state will stand behind the contracts and pump $236 million into the program.

Gov. Bob Riley is urging the Legislature to find a solution before wrapping up its session in April.

"I believe this state made a commitment to families who enrolled in our prepaid tuition program," he said.

CHARLEY GRIMSLEY QUALIFIES FOR STATE TREASURER

IN DEMOCRATIC PRIMARY

It's official.  I'm running for State Treasurer, and I humbly ask for your vote and support.

The current PACT debacle should tell us it's high time to elect a treasurer who knows how to manage money.  I am a retired third-generation community banker, and I can straighten out this mess.

My campaign theme is "Protecting Alabama."  Please visit my website, www.charleygrimsley.com, and you will see I have a proven record of fighting for the underdog and protecting Alabama:

• Protecting Lives:  Alabama's Landmark Boating Safety Law

In 1994 as Commissioner of Conservation and Natural Resources under Gov. Jim Folsom, I donated my state salary to launch a crusade to reform Alabama's boating safety laws.  The effort led to passage of the strongest boating safety law in America, including the nation's first boating license.  The law, which has been hailed as a national model, reduced death on the water almost 50 percent the first year after its passage.

• Protecting Women's Health:  Vanessa's Law

A courageous woman named Vanessa told me something I could not believe: Medicaid would pay for a radical mastectomy for breast cancer, but they wouldn't pay one dime for breast reconstruction.  I helped develop a bipartisan legislative coalition that passed a law forcing Medicaid to cover breast reconstruction following radical mastectomy.

• Protecting the Environment:  Saving Gulf State Park Beach

With my own money, I sued Gov. Riley and stopped his plan to give a no-bid contract to a luxury hotel developer to build a 4-star hotel and spa at Gulf State Park beach that would have priced average Alabamians off the beach forever.

• Protecting Children:  The PACT Crisis

I am the only candidate for state treasurer who dares to tell PACT's untold story:  As state treasurer, George Wallace, Jr. advertised and contracted PACT as GUARANTEED, but it never was!  He lured us into the PACT program with false promises!

PACT must be saved.  Go to my website and see why saving PACT makes dollars and sense.

Together we can restore common sense and professional money management

to the state treasurer's office.  I look forward to seeing you!

Charley Grimsley

Charley Grimsley Launches Campaign Website

Site tells untold story about PACT’s false promises

On January 5, Charley Grimsley, Democratic candidate for state treasurer, launched his campaign website, www.charleygrimsley.com.  Grimsley, whose campaign theme is “Protecting Alabama,” has a long and successful record of fighting for the underdog.

Click on “WHAT I STAND FOR” to see videos on the following subjects:

• PROTECTING LIVES: ALABAMA’S LANDMARK BOATING SAFETY LAW

As Commissioner of Conservation under Gov. Jim Folsom, Grimsley donated his state salary to finance an emotional crusade that passed the nation’s strongest boating safety law, including the country’s first boating license.  The law reduced death on the water by almost 50 percent the first year following its passage.  The bill has been hailed as a national model.

• PROTECTING WOMEN’S HEALTH: VANESSA’S LAW

As chief of staff for Lt. Gov. Steve Windom, Grimsley helped develop a bipartisan coalition that led to passage of Vanessa’s Law, which forced Medicaid to cover breast reconstruction following radical mastectomy for breast cancer.

• PROTECTING THE ENVIRONMENT: SAVING GULF STATE PARK BEACH

With his own money, Grimsley sued Governor Bob Riley and stopped his no-bid plan to lease Gulf State Park beach to a luxury hotel developer to build a 4-star hotel and spa that would have priced average Alabamians off the beach forever. 

• PROTECTING CHILDREN: THE PACT CRISIS

Grimsley dares to tell PACT’s untold story: George Wallace, Jr., who created the PACT program as state treasurer, advertised and contracted that it was state guaranteed – BUT IT NEVER WAS!

Under “PRESS ROOM,” Grimsley blasts the PACT board for their plan to begin prorating PACT contracts in the fall of 2010, and for the board’s proposed changes to the PACT law that would give the board immunity from lawsuits by PACT holders.

Once again, Grimsley is poised to put his money where his mouth is by readying himself to sue the PACT board the minute the board goes to court seeking permission to pay anything less than the full tuition and mandatory fees they promised.

January 4, 2010  8:00 AM

STATEMENT BY CHARLEY GRIMSLEY

CONCERNING THE PACT BOARD’S PROPOSED BILL

“What the board is purporting to be a PACT rescue bill is actually a bill

that would give the PACT board absolute power and immunity from lawsuits”

From just a cursory reading of the PACT board’s proposed legislation, I found that what the board is purporting to be a PACT rescue bill is primarily a bill that would give the board absolute power and immunity from lawsuits.  By preventing us from taking them to court, such immunity would amount to a full legislative pardon for everything they have done to our PACT kids. 

Just take a look at just some of the things this bill would do:

 1.  Page 10, Subsection (d) beginning at line 22:

“…any person or investment manager to whom the board delegates any of its investment authority, shall not be held personally liable for losses suffered by the PACT program…”

WHAT THIS MEANS: 

PACT holders could not sue the investment managers who have cumulatively been paid millions for losing hundreds of millions of our children’s PACT fund in the stock market.

NOTE: This provision is in the existing PACT law.  But the language adding liability immunity for PACT board members is new and is described in Item 2 below.

 2.  Page 10, Subsection (d) beginning at line 25:

“No board member shall be held personally liable for any losses, damages, or claims which have arisen or may arise from or are related to any act or omission of the board member taken in his or her service as a member of the board or as a trustee, so long as the board member acted in good faith.”

WHAT THIS MEANS:

It would give blanket legal liability immunity for board members.

 3.  Page 2, Subsection (b) beginning at line 8:

“Any action taken by the Board before the effective date of the act adding this subsection, including, but not limited to, any decision to suspend new enrollment, is ratified and confirmed.”

WHAT THIS MEANS: 

The legislature would be placing its legal seal of approval on every board action since day one.  Legalizing all board actions would prevent any lawsuits against the board.

 4.  Page 11, Subsection (d) beginning at line 9:

“Notwithstanding any other provision contained in this chapter or the PACT contract, the PACT Program shall not be obligated to pay any

amount of Tuition or Mandatory Fees which the board determines to be actuarially unsound.”

WHAT THIS MEANS:

The Board could legally prorate PACT tuition payments by any amount or even suspend them altogether.  It also means the board could ignore the provisions of any contract, including those that bear the word “guarantee” and the state seal.

 5.  Page 7, Item (13) beginning at line 24:

(13) To adjust the terms of existing PACT Contracts to protect the soundness of the PACT Program.

WHAT THIS MEANS:

Because the terms of our contracts could be changed at will by the board, it means our contracts would not be worth the paper they are written on.

 6.  Page 7, Item (14) beginning at line 26:

(…the board shall have, as agents of the State of Alabama, the powers necessary or convenient…)

(14) To dissolve and liquidate the PACT Program, cancel or terminate PACT Contracts, make refunds to Purchasers to the extent that monies are available, or take other action the board deems appropriate, if the board determines that the PACT Trust Fund does not have, or is at risk of not having, sufficient monies to refund the redemption value of all active contracts.”

WHAT THIS MEANS:

Under current law, only the legislature has the power to dissolve the PACT program.  This change would allow the PACT board to dissolve and liquidate the program, as well as cancel or terminate contracts.  The power to “take other action the board deems appropriate” would amount to an unlimited grant of dictatorial powers to do anything they wish without any legal consequences.

 7.  Page 12, Subsection(c) beginning at line 22:

After six years following the original designated beneficiary’s projected college entrance date or the actual entrance date of an accelerated student, and after making reasonable effort to locate the purchaser, the redemption value of the contract, as defined in the PACT contract, shall revert to the PACT Trust Fund.

WHAT THIS MEANS:

A PACT student would have to use contract benefits within 6 years instead of 10 years under current law.  This could hurt students who delay or interrupt their college studies for medical reasons or to serve their country in the military.

 8.  Section 16-33C-9 beginning at line 17:

Changes “In the event of dissolution of the PACT Program by the Alabama Legislature” to “Following dissolution of the PACT Program by the Alabama Legislature or by the board.”

WHAT THIS MEANS:

It would allow the board to dissolve the PACT program without a vote of the legislature.

CONCLUSION:  Do not be misled! 

Fix PACT?  ABSOLUTELY.

Pass the PACT board’s bill as written?  ABSOLUTELY NOT.

Why?  Because it would give the PACT board

ABSOLUTE POWER and IMMUNITY FROM LAWSUITS.

The PACT board’s proposed bill can be found at:

http://www.treasury.state.al.us/PACT/Documents/200912/Leg%2012-28-09%20_2_.pdf

STATEMENT BY CHARLEY GRIMSLEY

CONCERNING THE PACT BOARD’S DECISION TO

BEGIN PRORATING PACT CONTRACTS BEGINNING

IN THE FALL OF 2010

On December 29, 2009 the PACT board voted that beginning in the fall of 2010, they will pay less than the full amount of tuition and fees as contracted with PACT holders.  As both a PACT parent and candidate for state treasurer, I am shocked and outraged by this decision. And I am not going to take it lying down.

In 1990 I purchased a PACT contract for my daughter Abby during the administration of state treasurer George Wallace, Jr., who wrote the PACT legislation.  He advertised the program as guaranteed and even put the word “guarantee” and the state seal on Abby’s contract.

After Lucy Baxley succeeded Wallace as treasurer in 1995, her administration made a shocking discovery: PACT was NEVER guaranteed by the State of Alabama.  Subsequent contracts dropped the state seal and the word “guarantee” was changed to “provide.”  A 2001 revision to the PACT law made clear what has been the case since day one: Though they were initially marketed and contracted as such, PACT contracts do not constitute a debt or obligation of the state.  This misrepresentation by Wallace, acting in his official capacity as an agent of the state, makes PACT ripe for litigation.

We are fighting for the guarantees that Wallace said we had but we didn’t.  And we are fighting to make the state keep the contractual obligations it made to all of the PACT holders.  The legally questionable and morally reprehensible decision by the PACT board to begin prorating PACT contracts has made our tough battle even more challenging.

Though the Board says the “gap” from the first PACT proration would be only $500, allowing any proration by the PACT board would set a precedent that would allow them unlimited PACT proration in the future. They have put us in a situation where we have no choice but to go to court and try to stop them.

At the board’s November meeting, their actuary said that the PACT fund could support full payment of tuition and mandatory fees until 2015.  The action by the Board to begin prorating tuition payments beginning in the fall of 2010 ignores that fact and makes what would have been a future crisis a present one.

Accelerating the PACT crisis is like setting your house on fire in order to see how long it takes the fire department to respond and put the fire out.  That simply doesn’t make sense, especially in the midst of a budget crisis that has made the legislature desperately short of water.

Simply put, on December 29 the PACT board sucker punched our kids while they were already down.  I’m going to court to try to keep them from knocking them out.

Charley Grimsley running for state treasurer; former conservation commissioner won battle over hotel at Gulf State Park

By The Associated Press

September 30, 2009, 12:31PM

MONTGOMERY, Ala. -- Former state Conservation Commissioner Charley Grimsley is entering the race for state treasurer as a Democrat, which means voters will see a contested primary on both sides of the ballot.

Grimsley joins Birmingham attorney Jeremy Sherer in the Democratic primary June 1. Southside businessman Terry Dunn and former State Treasurer George Wallace Jr. are running in the Republican primary the same day.

Grimsley, 54, of Northport, said he became interested in the treasurer's race because the job involves protecting the public's money. "Everything I've ever done involves protecting the people," he said.

The retired banker left the family-owned First Bank of Fayette to serve as state conservation commissioner under Democratic Gov. Jim Folsom Jr. from 1993-1995. As commissioner, he got the Legislature to pass a boating safety law that required a boating license and boater education to drive a boat, and cracked down on boating while drunk. Boating deaths declined after the law's enactment.

Grimsley later served as chief of staff for Republican Lt. Gov. Steve Windom and held the same position for state Sen. Hinton Mitchem, D-Union Grove, when he was president pro tem of the Senate.

In March, Grimsley won a long legal battle with Republican Gov. Bob Riley over a new hotel at Gulf State Park. The Alabama Supreme Court sided with Grimsley and blocked plans by the Riley administration to have a Georgia company build a luxury convention hotel at the state park on the Alabama coast. Grimsley, who oversaw state parks as conservation commissioner, said any hotel at a state park should be affordable for average Alabamians.

Grimsley's primary opponent said Wednesday he has concerns about whether Grimsley is running on the right ticket because he worked for a Republican lieutenant governor and helped former Alabama Chief Justice Roy Moore in his unsuccessful Republican race for governor in 2006.

"There are serious questions whether he's a true Democrat or not," Sherer said.

Grimsley said he has always taken a bipartisan approach to government. "The people of Alabama don't care if you have a D, R or I after your name. They want somebody who can go to Montgomery and solve problems," he said.

The state treasurer administers Alabama's prepaid college tuition plan, which is in financial trouble because its long-term obligations exceed its assets. Grimsley said the program had "a fatal flaw" when designed by Wallace and others in 1990 because there are no controls on tuition increases.

If elected, Grimsley said he will push for universities to get part of Alabama's federal stimulus funds if they agree to cap tuition increases.