February 22, 2011
My agency, along with many other quasi-public agencies, co-signed the attached letter submitted by Connecticut State Treasurer Denise L. Nappier on this matter. Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act should be modified to clearly exempt appointed board members of quasi-public agency and other governmental agencies.
Appointed board members actions are governed by state statute and the policies and procedures of each quasi-public agency. These individuals are appointed based on their specific area of expertise as required by state statute. These appointed members serve on a voluntary basis and receive no compensation other than mileage.
These individuals are asked to review a prospective borrower's credit worthiness prior to a vote to allow the issuance of the tax-exempt. They are not asked to give what might be considered as financial advice to either the prospective borrower or the other board members. These individuals are usually provided with financial advice by the professionals assigned to a bond issue.
Their primary role is to review each request coming before the quasi-public agency and make a determination of the borrower's eligibility for tax-exempt financing based on the agencie's approved underwriting criteria and qualification for tax-exempt financing.
(Attached File #1: s74510-436-1.pdf)