TITLE 34.PUBLIC FINANCE

Part 9. TEXAS BOND REVIEW BOARD

Chapter 181. BOND REVIEW BOARD

Subchapter A. BOND REVIEW RULES

34 TAC §§181.2 - 181.4, 181.9, 181.12

The Texas Bond Review Board proposes amendments to §§181.2-181.4, 181.9, and 181.12, concerning policies and procedures. Section 181.2 and §181.3 contain proposed changes to due dates for notices of intent to issue bonds and content of applications. Proposed changes to §181.4 relate to dates for regular meetings of the board. Section 181.9 contains proposed changes relating to bonds which may be specifically exempted from approval by the board and authorization of the Executive Director for approval of limited issues. The proposed change in §181.12 corrects the agency name of the Texas Building and Procurement Commission.

James T. Buie, Executive Director, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Buie has also determined that during the five-year period there will be no probable economic cost to persons required to comply with the revised rule and the public benefit will be realized by more clearly defined purpose/use of commercial paper proceeds; more efficient coordination of issuance scheduling and travel due to fewer board meetings; and exemptions from approval of certain types of bond issues. There will be no effect on small or micro businesses

Comments may be submitted in writing to: James T. Buie, Executive Director, Texas Bond Review Board, PO Box 13292, Austin, Texas 78711-3292; or via email to: buie@brb.state.tx.us with a copy to acctng@brb.state.tx.us

The amendments are proposed under Chapter 1231, Government Code, which gives the Texas Bond Review Board the authority to adopt rules governing application for review, the review process, and reporting requirements involved in the issuance of state bonds.

Chapter 1231, Government Code is affected by these proposed amendments.

§181.2.Notice of Intention to Issue.

(a) An issuer intending to issue state securities shall submit a written or electronic notice to the bond finance office no later than the last Wednesday of the month [ three weeks ] prior to the date requested for board consideration. The director of the bond finance shall forward one copy of the notice to each member of the board. Prospective issuers are encouraged to file the notice of intention as early in the issuance planning stage as possible. The notice is for information purposes only, to facilitate the scheduling of board review activities.

(b)-(d) (No change.)

§181.3.Application for Board Approval of State Bond Issuance.

(a)-(c) (No change.)

(d) An application for all state securities other than lease-purchase agreements must include:

(1)-(18) (No change.)

(19) Applications for the approval of proceedings authorizing the issuance of state securities in the form of commercial paper notes shall contain the information required by paragraphs (1) - (18) of this subsection to the extent it is available or capable of being determined. An application for commercial paper or other similar short-term state securities must contain a description of any project or projects that will be permanently financed with tuition revenue bonds or state securities secured with general revenues of the state. Such commercial paper or short term securities may not be issued unless the issuance for the project or projects is specifically approved by the board.

(e)-(f) (No change.)

§181.4.Meetings.

(a) The regular meeting of the board shall be held the Thursday following the third Tuesday of alternate months beginning in January [ each month, with the exception of the months of January, July and September. No meetings will be held in those months unless called by the Chair ].

(b) (No change.)

(c) A planning session will be held regarding applications pending before the board on or before the second Tuesday of alternate months beginning in January [ each month, with the exception of the months of January, July and September ]. Planning sessions regarding applications to be heard at additional meetings of the board will be held as far in advance of the additional board meeting as is practicable. At a planning session, board members, their designated representatives, or their staff representatives may discuss pending applications. Applicants may be required to attend a planning session and may be asked to make a presentation and answer questions regarding their application. Applicants may be asked to submit written answers to questions regarding their application in lieu of, or in addition to, their attendance at a planning session.

(d)-(h) (No change.)

§181.9. State Exemptions.

The board may exempt certain securities [ bonds ] from [ review and ] approval by the board. The board may from time to time publish in the Texas Register a list of state securities [ bonds ] that are exempt.

(1) Specific exemptions include the following:

(A) Texas Department of Housing and Community Affairs multifamily conduit housing transactions that are non-Community Housing Development Organization (CHDO) related and have no general revenue impact to the state.

(B) Texas State Affordable Housing Corporation multifamily conduit housing transactions that are non-Community Housing Development Organization (CHDO) related and have no general revenue impact to the state.

(C) Self-supporting general obligation bonds issued by the Veterans Land Board and the Texas Water Development Board. Exemptions provided under this section do not preclude an issuer from the application review process or reporting requirements, specifically as they relate to §181.2 and §181.5 (without attachments) of the Bond Review Board rules. At the request of two or more members, an issuer may be required to follow the formal approval process regardless of this section.

(2) The board may authorize the Executive Director to: approve refunding or refinancing transactions that have a net present value savings of at least three (3) percent, or that are removing restrictive bond covenant requirements; or approve self-supporting revenue bond issues that have no general revenue impact to the state.

§181.12.Charges for Public Records.

The charge to any person requesting copies of any public records of the Texas Bond Review Board will be the charge established by the Texas Building and Procurement Commission [ General Services Commission ]; however, the Texas Bond Review Board will charge the following amounts necessary to recoup the costs of items as follows:

(1)-(8) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 30, 2003.

TRD-200303336

James T. Buie

Executive Director

Texas Bond Review Board

Earliest possible date of adoption: July 13, 2003

For further information, please call: (512) 463-9890