# TEFRA hearing

## Tax Equity and Fiscal Responsibility Act (TEFRA) hearing

A TEFRA hearing is a bond issuer’s public notice, public hearing and approval by elected officials of a bond issuance.

It is a public inquiry required by the Internal Revenue Service of non-profit borrowers that intend to issue tax-exempt debt. The TEFRA hearing provides the public an opportunity to comment on the use of tax-exempt bond proceeds by the specific borrowing institution to finance their capital needs. Following the public hearing, the Treasurer executes an approval certificate for the financing under the TEFRA rules.

‍ [_Source: Office of the State Treasurer, California_](https://www.treasurer.ca.gov/csfa/TEFRA/tefra.asp)