Accountability and transparency in the American Recovery and Reinvestment Act.(Federal Focus)

Issuers are encouraged to visit the EMMA Web site at www.emma, msrb.org to become familiar with the system. The MSRB has also announced that it will implement a pilot program to help issuers learn the system before its use is mandated on July 1.

WHAT ISSUERS NEED TO KNOW

The SEC's action to create a single filing location replaces the need for governments to file disclosure documents at all four NRMSIRs. Beginning July 1, an issuer will meet its continuing disclosure responsibilities, as dictated by their continuing disclosure agreements, for previously issued and newly issued bonds by filing at EMMA. Issuers are encouraged to consult with either their bond or disclosure counsel about their specific continuing disclosure agreements and ensure that all new agreements clearly state that continuing disclosure filings will be made with EMMA.

Issuers will register with the system and identify and upload documents that will then be available to the public and investors. Continuing disclosure documents are submitted to EMMA is as a PDF file, and there are no costs associated with making EMMA filings. Additionally, issuers and other parties will be able to submit past annual financial filings and material event notices to EMMA, as well as voluntary filings.

INFORMATION AVAILABLE TO THE PUBLIC

In addition to creating a single filing location, the SEC also acted to ensure free public access to continuing disclosure documents issuers file through EMMA. The EMMA Web site currently houses official statements submitted by underwriters, advance refunding documents, and real-time and historic trade data for municipal bonds. Beginning July 1, continuing disclosure documents submitted to EMMA will be matched to the official statements that were prepared at the time that the bonds were sold. EMMA will provide investors with a single source of consolidated disclosure and bond trading information.

EMMA will make all continuing disclosure documents submitted to the system available to the public within 15 minutes of submission. Neither the EMMA system nor the MSRB will change or adjust submissions; the documents will be posted on the EMMA Web site exactly as sent by the issuer or another party However, issuers and obligors will have the opportunity to review submitted documents and resubmit documents to EMMA to correct any errors.

Users of EMMA can search, view, and download all documents related to a particular issue or security. All information submitted by issuers will be displayed chronologically on EMMA for each security

Note

(1.) For the specific state and local government reporting requirements, see Title XV of the American Recovery and Reinvestment Act, available at http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=111_cong_bills&docid=f:hlenr.pdf.

SUSAN GAFFNEY is director of the GFOA's Federal Liaison Center in Washington, D.C. BARRIE TABIN BERGER is the assistant director of the GFOA'S Federal Liaison Center.

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