74R9698 RJA-F By Romo H.B. No. 3109 Substitute the following for H.B. No. 3109: By Marchant C.S.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.