1. (a) The Board may exempt certain state securities from formal approval by the Board. The Board may from time to time publish in the Texas Register a list of state securities that are exempt.

2. (b) Specific exemptions include the following:

   1. (1) Effective January 1, 2004, Texas Department of Housing and Community Affairs multifamily conduit housing transactions are exempt unless seeking an ad valorem tax reduction or exemption.
   2. (2) Effective January 1, 2004, Texas State Affordable Housing Corporation multifamily conduit housing transactions are exempt unless seeking an ad valorem tax reduction or exemption.
   3. (3) State securities secured by the general revenues of the state issued by the Veterans Land Board, the Texas Water Development Board or the Higher Education Coordinating Board determined by the Executive Director to be self-supporting and state securities issued by the Texas Water Development Board pursuant to the clean water state revolving fund program under Subchapter J, Chapter 15, Water Code and Subchapter I, Chapter 17, Water Code.
   4. (4) Self-supporting revenue state securities issued by an institution of higher education, having an un-enhanced rating of at least AA long-term rating or its equivalent, and that are not secured by the general revenue of the state; provided, however, that an issue of state securities to be issued to finance the cost of a tuition revenue project shall not be exempt unless each tuition revenue bond project has been approved for financing by the Board. Any state securities issued to finance a tuition revenue bond project or projects approved by the Board must be issued by the end of the fiscal year in which such project or projects were approved by the Board. State securities may not be issued for any project not financed in the fiscal year in which the Board approved such project until the Board re-approves such project.
3. (c) An issuer of state securities exempted pursuant to this section must still comply with §181.2 and §181.5 of this title (relating to Notice of Intention to Issue and Submission of Final Report).
4. (d) At the written request of one or more members of the Board given to an issuer within four business days of submission of a notice pursuant to §181.2(e) of this title, an issuer is required to follow the formal approval process regardless of this section.
5. (e) In lieu of action by the Board, the Executive Director is authorized to: approve refunding or refinancing transactions that have a net present value savings of at least 3%, or that are removing restrictive bond covenant requirements; and to approve self-supporting revenue bond issues that have no general revenue impact to the state. The Executive Director shall notify in writing approval, if approved, of the issuance of such state securities within ten business days or receipt by the bond finance office of an application submitted by the issuer pursuant to §181.3 of this title (relating to Application for Board Approval of State Bond Issuance).

Source Note:The provisions of this §181.9 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective September 18, 2003, 28 TexReg 8133.