In response to an April executive order, the Department of Justice (DOJ) recently published a list of jurisdictions deemed to have policies, laws or regulations that hamper federal immigration enforcement. As a result, some government issuers are left wondering to what extent a jurisdiction’s inclusion in that DOJ list would create such a level of risk that would require disclosure of material information in municipal bond offerings.
Bracewell’s Ed Fierro, who previously served as senior counsel to the director of the Securities and Exchange Commission’s Office of Municipal Securities, told The Bond Buyer that disclosure regarding a sanctuary jurisdiction designation “depends on the facts and circumstances” of each such jurisdiction.
“The designation of sanctuary jurisdiction does not trigger an event notice under Rule 15c2-12 or automatically disqualify a sanctuary jurisdiction from receiving federal funds,” Fierro said in an email. “The relationship between sanctuary jurisdiction status and federal funding is complex.”
