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Settlement Announced to Compensate Normangee ISD Over State’s Pro-Energy Law

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Attorney General Ken Paxton and the 637-student Normangee ISD today announced a settlement with the UBS global financial services firm in the amount of $850,000.

The settlement reportedly resulted from the UBS’s inability to underwrite NISD’s bonds under the terms of a state law known as “SB13,” which stipulates the terms on which certain companies can do business with state governmental entities.

SB13 requires financial companies who contract with Texas governments to certify that they do not boycott energy companies. UBS reportedly certified that it does not boycott energy companies when it entered into a contract to underwrite $18.6 million in bonds to be issued by NISD.  

But, the Texas Comptroller placed UBS and several other financial services firms on a list (press release) of energy “boycotters” in August 2022, and the attorney general’s Public Finance Division concurred in that determination, thus disapproving the underwriting contract with NISD.

Paxton said that through no fault of its own, NISD then had to rebid the contract at a higher interest rate, causing it financial harm. The attorney general then negotiated the settlement with UBS on NISD’s behalf.