A TEFRA hearing is a 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