Emergency Sections An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing, for no more than 120 days. The emergency action is renewable once for no more than 60 days. Symbology in amended emergency sections. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 7. BANKING AND SECURITIES Part III. State Banking Board Chapter 31. Miscellaneous 7 TAC sec.31.5 The State Banking Board adopts on an emergency basis an amendment to sec.31.5, concerning substitute members of the State Banking Board. The amendment to the rule names the deputy treasurer as the individual authorized to attend an official meeting of the board in the absence of the State Treasurer. The amendment is adopted on an emergency basis in order to ensure that a quorum always may be present at emergency meetings of the board in situations where a bank has been closed and a meeting of the board is required to grant a new charter immediately. Accordingly, emergency adoption of the amendment to the rule is required in order to provide for the general welfare of the State of Texas and is not adopted for purposes of administrative ease. The amendment is adopted on an emergency basis in accordance with Texas Civil Statutes, Article 342-115, which provide that the board shall prescribe the deputy by name and title who is authorized to attend an official meeting of the board in the absence of the State Treasurer. sec.31.5. Members of the Board. When either the state treasurer or commissioner is unable to personally attend an official meeting of the board, the respective first deputy of such member may appear and vote. The present first deputy to the treasurer is John A. Bell
    , [Paul J. Williams] deputy treasurer, and the present deputy to the commissioner is Randall S. James
      , [Stephen Y. Scurlock] deputy banking commissioner. Two such deputies may not sit as substitute members of the board at the same time. Issued in Austin, Texas, on June 12, 1992. TRD-9208271 Ann Graham General Counsel Texas Department of Banking Effective date: June 16, 1992 Expiration date: October 14, 1992 For further information, please call: (512) 475-1300 TITLE 34. PUBLIC FINANCE Part X. Texas Public Finance Authority Chapter 223. Master Equipment Lease Purchase Program 34 TAC sec.sec.223.1, 223.3, 223.5, 223.7 The Texas Public Finance Authority adopts new sec.sec.223.1, 223.3, 223.5 and 223.7, concerning the master equipment lease purchase program and recovery of costs associated with that program. This chapter is adopted on an emergency basis to ensure a continuous and timely financing for equipment purchased by state agencies so as to enable state agencies to operate without disruption of service to the public. The new sections are proposed under Texas Civil Statutes, Article 601d, which authorize the Texas Public Finance Authority to finance the purchase of equipment by one or more state agencies. sec.223.1. Purpose of the Rules. The Texas Public Finance Authority proposes these new rules, as Chapter 223, concerning the administration of the State of Texas Master Equipment Lease Purchase Program authorized by Texas Civil Statutes, Article 601d, sec.9A. This chapter defines certain terms pertaining to the operation of the Texas Master Equipment Lease Purchase Program, identifies the responsibilities of various parties in administering the Texas Master Equipment Lease Purchase Program, and establishes basic procedures under which equipment users may participate in the Texas Master Equipment Lease Purchase Program. sec.223.3. Definitions. Notwithstanding the definitions set forth in sec.221.3 of this title (relating to Notice of Request for Bond Issue), the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-The Texas Public Finance Authority Act, Texas Civil Statutes, Article 601d, as amended. Administrative costs -The reasonable costs incurred by the Authority in developing, administering, and monitoring the program, which costs include, but are not limited to, fees for the paying agent, the dealer, the servicing agent, and the Authority's operational charges. Amortization schedule -A detailed schedule of principal and interest payments and administrative costs due for each lease payment as required under the master lease agreement and contained in each lease supplement. The principal amount will include the purchase price of the eligible equipment and the costs of issuance, which will be separately itemized. Authority-The Texas Public Finance Authority, or any successors or assignees to its duties and functions. Authorized representative -That person(s) duly authorized by a client agency and the authority to execute and deliver a master lease agreement and lease supplement(s) and such other documents as are deemed necessary or appropriate to implement the Program. Board-The board of directors of the Authority. Bond Review Board-The board created by Texas Civil Statutes, Article 717k-7, or any successors or assignees to its duties and functions. Bundled purchases -Those purchases of multiple pieces of eligible equipment individually valued at a minimum of $500 for and on behalf of one or more client agencies, which are aggregated into one vendor contract for acquisition. Client agency-Any state agency which has the authority, pursuant to applicable law, to acquire eligible equipment to be financed or refinanced through the program. Comptroller-The Comptroller of Public Accounts of the State of Texas, or any successors or assignees to its duties and functions. Comptroller's intercept -The provision contained in the master lease agreement and in the lease supplements authorizing the comptroller to move client agency funds sufficient to make lease payments for the eligible equipment to be financed under the program into a restricted cost center. Thereafter, the client agency will no longer be able to access these monies. For eligible equipment financed and subject to the General Appropriations Act, Article V, sec.144, 72nd Legislature, the comptroller's intercept will mean transfer of the entire general revenue fund appropriated amount or other source of funds sufficient to purchase the eligible equipment and make other payments shown on the lease supplement upon the receipt of a lease supplement executed by the client agency. Costs of issuance -All costs associated with the interim financing and the issuance of lease revenue bonds, including, but not limited to, printing costs, costs of preparation of documents, and fees to rating agencies, financial advisor, credit and liquidity providers, bond counsel and underwriters. Debit memo-The notice provided to each client agency within 30 days after each lease payment. The debit memo will include the name of the client agency, each lease supplement by identifying number, the eligible equipment, the total amount paid reflected as principal and interest payments, administrative costs, the payment date, credit, if any, and the remaining principal balance. DIR-The Department of Information Resources of the State of Texas, or any successors or assignees to its duties and functions. Eligible equipment -All tangible personal property with a useful life of a minimum of three years and having a value of at least $10,000, valued either individually or as a bundled purchase. However, no individual item may have a purchase price and value of less than $500. The term "eligible equipment" shall also include such other equipment that, when affixed to realty, becomes a fixture. All determinations regarding the eligibility of equipment will be made in the sole discretion of the Authority. Fees-The amount assessed each client agency for participating in the program. Fees include the costs of issuance and administrative costs. GSC-The General Services Commission of the State of Texas, or any successors or assignees to its duties and functions. Interim financing -The initial financing source by which eligible equipment may be financed if it is deemed advisable by the Authority. Interim financing will occur when the Authority issues its Master Equipment Lease Purchase Program tax-exempt commercial paper notes (the notes) in various amounts, not to exceed $50 million outstanding at any one time. LBB-The Legislative Budget Board of the State of Texas, or any successors or assignees to its duties and functions. Lease payments -Those amounts specified in the lease supplements and made pursuant to the comptroller's intercept payable semi-annually on the first day of February and the first day of August. The term "lease payments" also includes all payments made while the eligible equipment is in the interim financing and to lease revenue bond holders. Lease revenue bonds-The long-term bonds issued by the Authority either to refinance eligible equipment that has been initially financed through interim financing, or to fund the purchase of eligible equipment. Lease supplement -A form promulgated by the Authority to be executed by each client agency which incorporates the terms of the master lease agreement and other agreements under the program. The lease supplement shall specifically identify the eligible equipment to be financed, including the serial number or other state identification number, the exact amount to be paid, the payee, and any updates or corrections to the request for financing. Master lease agreement-The master lease agreement is the contract executed between the authorized representative of each client agency and the Authority, containing such terms and provisions necessary to authorize the client agency to participate in the program and the Authority to make payments on behalf of the client agency for the purchase of eligible equipment as specifically set forth in each lease supplement. Program-The State of Texas Master Equipment Lease Purchase Program described in these rules to be carried out by the Authority for the purpose of financing or refinancing the acquisition of eligible equipment. Progress payments -Periodic payments for eligible equipment to be made during installation of and prior to acceptance of such eligible equipment by the client agency which payments are set out in an agreement with the vendor. The agreement must provide for specific payments corresponding to completion of definitive components sufficient to create identifiable collateral. Request for financing-A written request from a client agency to the Authority to finance the acquisition of eligible equipment through the program. Such request for financing shall include an itemized listing of eligible equipment prepared by the client agency including the estimated cost of acquisition, the estimated useful life of the equipment, the proposed date(s) of delivery and acceptance of the eligible equipment, the proposed use of the eligible equipment, and the source of funds to be used by the client agency to make the payments for the eligible equipment, and any one of the following documents: (A) a copy of the purchase order for eligible equipment, issued by GSC which, when received by GSC, should be immediately forwarded by GSC to the Authority; (B) a copy of the contract prepared and awarded by DIR for eligible equipment, or for bundled purchases, which when executed by DIR should be immediately forwarded by DIR to the Authority; or (C) any awarded contract for eligible equipment, or for bundled purchases, a copy of which is sent to and received by the Authority and which may be generated by any client agency. State agency-A board, commission, department, office, agency, institution of higher education, or other governmental entity in the executive, judicial, or legislative branch of state government. State lease fund-The fund by that name created by the Act, and the General Appropriations Act, 72nd Legislature. Statement of acceptance-A statement contained in the lease supplement, executed by the client agency, which states that the eligible equipment has been received, inspected and found to be in fully acceptable condition by the client agency, that all approvals, if any, have been obtained and that all other requirements of law have been satisfied and authorizing the Authority to provide payment to the vendor. Treasurer-The State Treasurer of the State of Texas, or any successors or assignees to its duties and functions. sec.223.5. Procedures for Financing Equipment. (a) Upon receipt of a Request for Financing the Authority (Authority) will review such request for completeness and compliance with program rules.If the request for financing is found to be complete and in compliance, the Authority will accept the request for financing. (b) Upon acceptance of the request for financing, if the client agency has not previously participated in the program, the Authority will forward to the client agency a copy of the master lease agreement to be executed by an authorized representative. The master lease agreement is not subject to revision by the client agency and, when executed by the client agency's authorized representative and the Authority, will serve as the basis for all future purchases of eligible equipment under the Program. (c) After acceptance of the request for financing by the Authority and execution of the master lease agreement, the client agency will proceed to procure the eligible equipment in compliance with all applicable laws and rules governing such procurement, including obtaining the approval, if any is required, of the bond review board, DIR, GSC, or other state agency. (d) After the client agency has taken delivery and acceptance of the eligible equipment and determined that it meets all requirements for payment in full to the vendor, the client agency will prepare the payment voucher together with all documents required by the comptroller and will execute four copies of the lease supplement which also contains the statement of acceptance of the eligible equipment and will forward all copies along with the payment voucher and all other documents to the Authority. The Authority will immediately execute all four copies of the lease supplement, return one copy to the client agency and forward one copy to the comptroller. (e) The Authority will make a determination to initially fund the eligible equipment through the interim financing or through the issuance of lease revenue bonds. Such determination will be within the sole discretion of the Authority. (f) The Authority will effect the payment in full to the vendor, or partial payment if the eligible equipment has been designated for progress payments. (g) Upon receipt of the lease supplement, the comptroller will effect the comptroller'sIntercept to provide for the lease payments. (h) No later than on or before 48 hours prior to a lease payment, the Authority will submit a voucher directing the comptroller to transfer sufficient monies from each client agency into the state lease fund the Authority will provide a voucher to the comptroller to effect debt service payment..The treasurer will then transfer monies out of the state lease fund and make lease payments. (i) Within 30 days following each lease payment, the Authority will provide a debit memo to each client agency. (j) The Authority will issue lease revenue bonds The final maturity of lease revenue bonds shall not exceed the latest maturity of the lease supplements being financed, to refinance the lease supplements initially funded through the interim financing upon the occurrence of any of the following events: (1) any date on which the aggregate volume of lease supplements then being financed through the interim financing reaches $50 Million; or (2) 30 days prior to the end of any state biennial appropriation period which is currently August 31 of odd-numbered years. (k) The Authority may adjust the lease payments under a lease supplement as a result of a change in interest rates, or a refinancing, or a change in administrative costs. When such adjustment in lease payments is effected, the Authority will, concurrent with establishing the new interest rate, provide an amended amortization schedule reflecting the adjusted lease payments to the comptroller and to each client agency. (l) At least once during each fiscal year of the state the authority will forward to the LBB a schedule, by client agency, of all lease payments. The Authority will use its best efforts to ensure that the Staff of the LBB will include in its budget recommendation sufficient appropriations to make all lease payments required under the program. (m) All books and records of the Authority will be available to the LBB, the comptroller, the state auditor's office, client agencies, and other interested parties which may, from time to time, request access to information regarding the program. (n) All issuances of lease revenue bonds under the program will comply with all approvals required for the public issuance of debt by a state agency, including review and approval by the bond review board and the attorney general. sec.223.7. Recovery of Costs. (a) The Texas Public Finance Authority authority may recover its administrative costs by assessing each client agency on a pro rata basis for reimbursement of administrative costs. This pro rata reimbursement shall be calculated on a semi-annual basis to cover the ongoing costs of the program. The exact amount assessed each client agency shall be separately disclosed on the debit Memo. In no event shall administrative costs assessed each client agency exceed 1.0% perannum of their pro rata participation in the program. (b) The costs of issuance shall be calculated on a pro rata basis for each client agency and included as an addition to principal along with the purchase price of eligible equipment. Issued in Austin, Texas, on June 16, 1992. TRD-9208376 Glenn Hartman Executive Director Texas Public Finance Authority Effective date: June 17, 1992 Expiration date: October 15, 1992 For further information, please call: (512) 463-5544