The Texas Bond Review Board will consider highway mobility bonds, a taxable general obligation refunding and three commercial paper programs — including one that supports cancer research grants — during its meeting on July 28 in Austin.
The board will meet at 10 a.m. in Room 402 of the Clements Building, 300 W. 15th St., with public participation available by Zoom videoconference under Texas Government Code Section 551.127. The agenda includes six state debt items, one exempt issuance, an executive director’s report and public comment.
Although it meets only periodically, the Bond Review Board plays a required role in state borrowing. With limited exceptions, Texas agencies cannot issue debt exceeding $250,000 or with a maturity longer than five years without the board’s approval. The four-member board consists of the governor, lieutenant governor, House speaker and comptroller of public accounts, though those officials are typically represented by designated alternates.
The largest borrowing item before the board is the Texas Transportation Commission’s request to issue State of Texas General Obligation Mobility Fund and Refunding Bonds in one or more series. The Texas Mobility Fund, approved by voters and established in the Texas Constitution, finances highway construction through bond proceeds. The refunding portion would refinance existing debt, typically to reduce borrowing costs.
The remaining approval items come from the Texas Public Finance Authority, the state’s central bond issuing agency.
The authority is seeking approval for a taxable general obligation refunding bond issue designated as Series 2026. It also requests authorization for fiscal year 2027 commercial paper programs covering three separate financing vehicles:
- Cancer Prevention and Research Institute of Texas project notes.
- Texas Facilities Commission revenue commercial paper program established in 2016.
- Texas Facilities Commission taxable revenue commercial paper program established in 2019.
Commercial paper provides short-term financing that can be issued and renewed as needed. The annual authorization establishes the maximum amount available under each program, allowing agencies such as CPRIT to continue financing research grants and the Texas Facilities Commission to fund construction projects.
The agenda also includes an exempt issuance for the Texas State Affordable Housing Corporation’s Series 2026A homeownership mortgage revenue bonds, which are not subject to the alternative minimum tax, and Series 2026B taxable mortgage revenue bonds. Under Chapter 181.9 of the Texas Administrative Code, exempt issuances receive a staff review rather than formal board approval.
Tuesday’s meeting will also be the board’s final action before a change in its membership.
Acting Comptroller Kelly Hancock announced July 1 that he will resign effective July 31 after losing the March Republican primary. Gov. Greg Abbott has appointed Don Huffines to succeed him beginning Aug. 1. Because board members frequently designate alternates to attend meetings, the officials present for Tuesday’s votes may differ from the elected officeholders.
The meeting concludes with Executive Director Rob Latsha’s report, which is scheduled to cover state and local debt processing, legislation affecting the agency, the private activity bond program and state security applications.