1-1 By: Romo (Senate Sponsor - Lucio) H.B. No. 3109
1-2 (In the Senate - Received from the House May 1, 1995;
1-3 May 3, 1995, read first time and referred to Committee on Finance;
1-4 May 16, 1995, reported favorably by the following vote: Yeas 11,
1-5 Nays 0; May 16, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to state agency reports to the bond review board on bond
1-9 transactions.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Chapter 1078, Acts of the 70th Legislature,
1-12 Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
1-13 Statutes), is amended by adding Section 7C to read as follows:
1-14 Sec. 7C. BOND TRANSACTION REPORT. (a) Each entity,
1-15 including the Texas Public Finance Authority, that issues state
1-16 bonds shall report to the board its bond transactions.
1-17 (b) The entity shall report under this section in accordance
1-18 with board rules.
1-19 (c) The report must be itemized and must state in dollar
1-20 amounts the information required by Subsections (d)-(h) paid to
1-21 businesses, classifying the businesses based on the race,
1-22 ethnicity, and gender of the controlling ownership of each business
1-23 and as to whether the business is domestic or foreign.
1-24 (d) The report must state for all transactions the issuance
1-25 costs, including the costs of:
1-26 (1) bond counsel;
1-27 (2) financial advisor;
1-28 (3) rating agencies;
1-29 (4) official statement preparation;
1-30 (5) official statement printing;
1-31 (6) bond printing;
1-32 (7) paying agent/registrar;
1-33 (8) escrow agent;
1-34 (9) escrow verification agent;
1-35 (10) trustee;
1-36 (11) attorney general;
1-37 (12) dealer fee;
1-38 (13) remarketing fee;
1-39 (14) credit enhancement; and
1-40 (15) any other cost not listed in Subdivisions
1-41 (1)-(14).
1-42 (e) The report must state for bonds sold competitively:
1-43 (1) the components of the gross spread, including:
1-44 (A) gross takedown;
1-45 (B) expenses; and
1-46 (C) syndicate profit and loss;
1-47 (2) a summary of bond orders and allotments by
1-48 maturity, firm, and order type; and
1-49 (3) a breakdown of the syndicate firms' gross takedown
1-50 and share of syndicate profit and loss.
1-51 (f) The report must state for bonds sold through
1-52 negotiation:
1-53 (1) the components of the spread, including:
1-54 (A) management fee;
1-55 (B) structuring fee;
1-56 (C) underwriting risk;
1-57 (D) takedown; and
1-58 (E) spread expenses;
1-59 (2) each firm's share of underwriting risk;
1-60 (3) the name of the underwriter's counsel;
1-61 (4) a summary of bond orders and allotments by
1-62 maturity, firm, and order type; and
1-63 (5) a breakdown of the syndicate firms' share of
1-64 management fee, structuring fee, underwriting risk fee, and
1-65 takedown.
1-66 (g) The report must state for bonds sold through private
1-67 placement the:
1-68 (1) components of the private placement fee, including
2-1 the:
2-2 (A) management fee;
2-3 (B) placement agent fee; and
2-4 (C) expenses; and
2-5 (2) placement agent's counsel's fee.
2-6 (h) The report must state for refundings and escrow-related
2-7 transactions the spread paid on the purchase or sale of escrow
2-8 securities.
2-9 (i) On May 15 of each year, the board shall send a report
2-10 based on the information received under this section for the
2-11 preceding six-month period ending March 1 to the joint committee
2-12 charged with monitoring the implementation of the historically
2-13 underutilized business goals.
2-14 (j) On November 15 of each year, the board shall send a
2-15 report based on the information received under this section for the
2-16 fiscal year ending the preceding August 31 to the presiding officer
2-17 of each house of the legislature, the members of the legislature,
2-18 and the joint committee.
2-19 SECTION 2. This Act takes effect September 1, 1995.
2-20 SECTION 3. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.
2-25 * * * * *