As we have discussed, the Senate Finance Committee has a task force on infrastructure which is developing recommendations for tax reform, including tax exempt bonds. I have mentioned  that it is likely that we will see this year some document or bill which proposes to take significant action on  private activity bonds, including  nonprofit financings. Indeed, it has been verified that one of the options the Senate Finance task force is considering is either abolishing all private activity bonds or possibly hospital bonds. There may or may not be proposed substitutes such as direct pay or tax credit bonds.  
 
It is not a foregone conclusion that this will occur and we and our allies at AHA and NACUBO are continuing our advocacy and educational efforts (to show you the  low level of understanding of our sector, we were told by a senior aide that she understood that for-profit hospitals benefited from tax-exempt bonds.) Several of our authority members and some of their borrowers also are active. Nonetheless, I don't want these announcements about private activity bonds in the form of a white paper or  a bill to come as a surprise.
 
The good news is that it is still unlikely that these proposals will go anywhere. There seems virtually no chance of comprehensive tax reform, not a huge level of interest or time to even do corporate tax reform and our main threat would that be that restrictions on private activity bonds/hospital bonds or some such would be used to pay for other things like the Highway Trust Fund or filling in the gap if Obamacare is struck down by the Supreme Court.
 
We will continue to be vigilant and stay in touch with you all and individually as required. But, if you have questions or comments please contact me.
​

Linked below is the SEC publication for comment  of the MSRB’s G-42 Rule. Comments are due May 29,2015.
 
NAHEFFA filed several comments with MSRB but  we did not see a reason to file on its most recent revision of the Rule. It also is unlikely SEC would make significant changes in the Rule. But, if you believe that there are  issues on which we should comment, please let me know asap so we can consider internally.
 
The Municipal Securities Rulemaking Board’s (MSRB) request for approval from the Securities and Exchange Commission (SEC) of a proposal to establish the core standards of conduct and duties of municipal advisors has been published in the Federal Register. Proposed Rule G–42, on duties of non-solicitor municipal advisors, is accompanied by associated proposed amendments to Rule G–8, on books and records. Read the rule filing.
Read the notice of publication in the Federal Register. The deadline for submitting comments to the SEC is May 29, 2015.