Washington

Marijuana legalization has failed to live up to the hype in terms of its impact on state economies, according to the three major rating agencies.

Many municipal market professionals are concerned that the Municipal Securities Rulemaking Board's proposed best execution rule would not be functionally different from the fair pricing obligations that the MSRB and Financial Industry Regulatory Authority already impose on dealers.

The Municipal Securities Rulemaking Board announced Tuesday that it will rebate $3.6 million to broker-dealers because it has collected more money in technology fees than the board needs to maintain its systems.

Susan Collet, who until recently worked at the Bond Dealers of America, is launching her own government-relations advisory firm focused on municipal securities, tax policy and not-for-profit electric utilities.

President Obama signed a 10-month, $11 billion bailout of Highway Trust Fund that ensures federal reimbursements continue to state transportation projects.

Transportation Secretary Anthony Foxx is urging voters to press lawmakers for a long-term solution to federal highway funding before the end of 2014, but industry experts don't expect Congress to take action until spring 2015 at the earliest.

Kym Arnone, managing director at Barclays Capital, will become the Municipal Securities Rulemaking Board's new chair beginning Oct. 1.

The National Association of Water Companies wants the Treasury Department to clarify tax rules so that state and local governments can ensure the tax-exempt bonds they used to finance their water and wastewater facilities will not become taxable if they enter into public-private partnerships.

The Securities and Exchange Commission has approved the Municipal Securities Rulemaking Board's proposal to simplify its rules on professional designations by limiting the activities of some dealer representatives and eliminating one of its professional designations.

Short-term patch of the Highway Trust Fund is credit positive for $12 billion of state highway Garvee bonds, Moody's says. But neither it nor other major rating agencies are planning to change Garvee ratings or outlooks.

A slew of bond-related bills was introduced in the House and Senate in the last few days before members of Congress left town to begin their five-week recess.

The Washington State Housing Finance Commission, which helps fund affordable housing in the state by issuing tax-exempt bonds and offering tax credits, announced that it will help victims of recent wildfires to access emergency housing.

The Securities and Exchange Commission's changes to its disclosure violation self-reporting program are somewhat helpful to issuers but may create further problems in their relationships with underwriters, market participants said.

An unfavorable federal ruling on high quality liquid asset status for municipal bonds would sharply curb bank appetite for munis, said economist George Friedlander.

The Senate keeps transportation dollars flowing with for at least 10 months with last-minute approval of the House's $11 billion highway fund bailout.

Pedro Pierluisi, Puerto Rico's sole non-voting member of Congress, has introduced legislation that would allow the commonwealth's government to authorize certain government-owned corporations to enter Chapter 9 municipal bankruptcy.

As banks make more loans to lower-rated municipalities, they may have to follow Interagency Guidance on Leveraged Lending that was developed with private and corporate borrowers in mind.

The Senate adopted legislation that would provide a five-month, $8 billion bailout of the Highway Trust Fund that extends the fund's solvency through mid-December.

The Securities and Exchange Commission's Office of Municipal Securities is hiring two new attorney advisers in the latest expansion of the team tasked with providing muni market expertise to federal regulators.

Lower than anticipated tax revenues from marijuana won't impact Washington State's credit rating, according to a report from Moody's Investors Service.