By Romo H.B. No. 3109
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state agency reports to the bond review board on bond
1-3 transactions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 1078, Acts of the 70th Legislature,
1-6 Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
1-7 Statutes), is amended by adding Section 7C to read as follows:
1-8 Sec. 7C. BOND TRANSACTION REPORT. (a) Each entity,
1-9 including the Texas Public Finance Authority, that issues state
1-10 bonds shall report to the board its bond transactions.
1-11 (b) The entity shall report under this section in accordance
1-12 with board rules.
1-13 (c) The report must be itemized and must state in dollar
1-14 amounts the information required by Subsections (d)-(h) paid to
1-15 businesses, classifying the businesses based on the race,
1-16 ethnicity, and gender of the controlling ownership of each business
1-17 and as to whether the business is domestic or foreign.
1-18 (d) The report must state for all transactions the issuance
1-19 costs, including the costs of:
1-20 (1) bond counsel;
1-21 (2) financial advisor;
1-22 (3) rating agencies;
1-23 (4) official statement preparation;
2-1 (5) official statement printing;
2-2 (6) bond printing;
2-3 (7) paying agent/registrar;
2-4 (8) escrow agent;
2-5 (9) escrow verification agent;
2-6 (10) trustee;
2-7 (11) attorney general;
2-8 (12) dealer fee;
2-9 (13) remarketing fee;
2-10 (14) credit enhancement; and
2-11 (15) any other cost not listed in Subdivisions
2-12 (1)-(14).
2-13 (e) The report must state for bonds sold competitively:
2-14 (1) the components of the gross spread, including:
2-15 (A) gross takedown;
2-16 (B) expenses; and
2-17 (C) syndicate profit and loss;
2-18 (2) a summary of bond orders and allotments by
2-19 maturity, firm, and order type; and
2-20 (3) a breakdown of the syndicate firms' gross takedown
2-21 and share of syndicate profit and loss.
2-22 (f) The report must state for bonds sold through
2-23 negotiation:
2-24 (1) the components of the spread, including:
2-25 (A) management fee;
3-1 (B) structuring fee;
3-2 (C) underwriting risk;
3-3 (D) takedown; and
3-4 (E) spread expenses;
3-5 (2) each firm's share of underwriting risk;
3-6 (3) the name of the underwriter's counsel;
3-7 (4) a summary of bond orders and allotments by
3-8 maturity, firm, and order type; and
3-9 (5) a breakdown of the syndicate firms' share of
3-10 management fee, structuring fee, underwriting risk fee, and
3-11 takedown.
3-12 (g) The report must state for bonds sold through private
3-13 placement the:
3-14 (1) components of the private placement fee, including
3-15 the:
3-16 (A) management fee;
3-17 (B) placement agent fee; and
3-18 (C) expenses; and
3-19 (2) placement agent's counsel's fee.
3-20 (h) The report must state for refundings and escrow-related
3-21 transactions the spread paid on the purchase or sale of escrow
3-22 securities.
3-23 (i) On May 15 of each year, the board shall send a report
3-24 based on the information received under this section for the
3-25 preceding six-month period ending March 1 to the joint committee
4-1 charged with monitoring the implementation of the historically
4-2 underutilized business goals.
4-3 (j) On November 15 of each year, the board shall send a
4-4 report based on the information received under this section for the
4-5 fiscal year ending the preceding August 31 to the presiding officer
4-6 of each house of the legislature, the members of the legislature,
4-7 and the joint committee.
4-8 SECTION 2. This Act takes effect September 1, 1995.
4-9 SECTION 3. The importance of this legislation and the
4-10 crowded condition of the calendars in both houses create an
4-11 emergency and an imperative public necessity that the
4-12 constitutional rule requiring bills to be read on three several
4-13 days in each house be suspended, and this rule is hereby suspended.