Relating to the issuance of public securities.
One of the central features introduced by SB2091 is the requirement that any public securities issued must be rated by a certified, nationally recognized rating agency. Specifically, these securities must fall within the top three categories for short-term debt or the top four for long-term debt instruments. This stipulation is seen as a way to ensure that municipal bonds or other debt securities maintain a certain standard of reliability and trustworthiness, thereby potentially improving market confidence and investor interest in these securities.
SB2091 is a legislative bill aimed at modifying the regulations overseeing the issuance of public securities in the state of Texas. The bill amends current provisions in the Government Code to enhance the authority of issuers when it comes to authorizing new public securities. This includes explicit permissions for the issuers to utilize certain authorities granted by existing financial statutes, thereby streamlining the process of issuing securities for various public projects.
SB2091 stipulates that its changes will only apply to public securities issued after the bill's effective date, which depends on receiving a two-thirds vote from both legislative houses. If such a vote is not achieved, the bill will take effect on September 1, 2021. This conditional enactment underscores the importance of legislative approval in determining the scope and timing of any new regulations that arise from this bill.
The bill also incorporates provisions permitting the signature of documents in both manual and electronic formats. This modernization is aimed at facilitating quicker and more efficient processing of public security issuances but may raise concerns about the adequacy of electronic signatures and their verification. The change towards allowing electronic documentation and signatures is indicative of a broader trend towards digitalization in governmental processes, which may have supporters as well as detractors concerning security and validation.