Texas Bond Review Board Strategic Plan: Fiscal Years 2013-2017 Page: 17
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issuers evaluate the potential risks and impact on the issuer's and the state's finances of interest rate
management (swap) agreements.
The Board's impact on issuance costs is limited by the fact that its oversight is exercised as a final
step before the issuer's debt is sold. Because specific statutes reserve the issuer's right to make
decisions regarding hiring of consultants, determination of method of sale, fees, minority
participation and the like, the Board is prevented from directly influencing the actual structuring of
state debt issues.
The agency has enhanced the application process by providing electronic copies of application
forms for state debt issuers and for agencies that file applications for lease-purchase transactions.
Issuers now submit Notices of Intent using the agency's online form.
During fiscal 2003, the Board adopted rules that allow for the exemption from formal approval for
bond transactions meeting certain criteria. Specifically, exempt bond issues include those that do not
draw on the general revenues of the state, such as conduit transactions by the Texas Department of
Housing and Community Affairs and general revenue-backed debt that does not have a history of
requiring general revenue draws, such as bonds issued by the Texas Veterans' Land Board. Issuers of
these bonds are required to file a Notice of Intent with the BFO. Upon receipt of this notice the
BFO prepares a financial analysis of the transaction and forwards it to the Board after which the
Board has six days to determine if the issuers should be "called in" for full review, i.e., required to
follow the formal approval process. If the Board chooses not to call the transaction in within that
time period, the issuer may proceed to issue the debt.
During fiscal 2010, the Board adopted rules that increased the amount of information that it receives
from issuers who have entered into swap transactions.
The agency is always receptive to suggestions that would facilitate the review process for Board
representatives. Agency staff will continue to identify potential financing techniques or program
initiatives that could result in more cost-effective transactions for the state.
The 82nd Legislature 1St Called Special Session enacted Senate Bill (SB) 5 that exempts from BRB
approval debt issued by higher education institutions with a bond rating of AA- or higher. This
change results in less oversight of debt for higher education institutions.
Local Government Services
Reporting of local debt statistics is required by statute (Texas Government Code, Chapter 1231.062).
By providing downloadable files which are accessible on the agency website, the BRB has met its
goal to ensure that public officials have access to current information regarding local government
debt issuance, finance and debt management. Before the files were made available on the website,
the agency published the Texas State and Local Government Debt Report which was costly to
produce and deliver.
Chapter 1202.008 requires the Office of the Attorney General, Public Finance Division to provide
certain issuance information to the Board at the time bonds for local entities are approved. Through
this process the Board meets the requirements of Chapter 1231.062.17
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Texas Bond Review Board. Texas Bond Review Board Strategic Plan: Fiscal Years 2013-2017, book, July 2, 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth531984/m1/20/?q=%22%22~1&rotate=180: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.