Texas Laws' Impact Felt By Issuers.

Local government officials in Texas are experiencing the consequences of state laws that prohibit big banks from underwriting municipal bonds for boycotting or discriminating against the fossil fuel or firearm industries. The impact of these laws extends beyond bond underwriting to other functions such as the procurement of letters of credit and investment and depository services. The laws have resulted in a decrease in the number of investment banks operating in Texas, while the state has become the top volume state for debt sold. Some officials have expressed concerns about the potential effects on competition and pricing, while others have raised issues regarding property tax cuts and the potential implementation of a private school voucher program. [Extracted from the article]

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