HBA-MPM, NLM H.B. 1879 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1879
By: Averitt
Financial Institutions
9/15/1999
Enrolled


BACKGROUND AND PURPOSE 

The purpose of the Texas Public Finance Authority Act (TPFA) is to provide
a method of financing for the acquisition or construction of buildings for
certain counties and for the purchase or lease of equipment by state
agencies in the executive or judicial branch of state government. There is
concern relating to the requirements and the application of  the open
meetings law, Chapter 551, Government Code, to final negotiations for the
sale of bonds.  Discussion of such matters in open session may
detrimentally  affect TPFA's negotiations with third parties and give an
advantage to other bidders or competitors.  Currently, governmental bodies
may meet in executive session to discuss personnel matters, real estate
transactions, and litigations. H.B. 1879 exempts a pricing subcommittee of
the board from the application of the open meetings law. This bill also
authorizes the board of the Texas Public Finance Authority to delegate
authority to negotiate contracts and provides that such negotiations do not
constitute a meeting or deliberation.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional  rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 6, Article 601d, V.T.C.S. (Texas Public Finance
Authority Act), by adding Subsection (d), as follows: 

(d) Provides that a subcommittee of the board of directors (board) of the
Texas Public Finance Authority (authority), appointed by the board pursuant
to Section 3 (Resolution, Order or Ordinance; Contents; Validity of
Signatures), Article 717q, V.T.C.S., is not subject to Chapter 551 (Open
Meetings), Government Code, when acting to price and sell the obligations
of the authority in accordance with parameters for the issuance established
by the board.  

SECTION 2.  Amends Section 23(b), Article 601d, V.T.C.S. (Texas Public
Finance Authority Act), to provide that the process of acquiring or
constructing a building or purchasing or leasing equipment may begin after
the authority has certified that bonds or obligations, rather than
obligations only, in the amount described by this subsection, have been
approved by the Bond Review Board in addition to having been authorized for
issuance by the authority. Deletes existing text regarding an interim
construction finance agreement. 

SECTION 3.  Repealer:  Section 6 (Amount of Outstanding Bonds), Article
601d-1, V.T.C.S., which states that at any one time, the combined amount of
outstanding revenue bonds and outstanding general obligation bonds issued
under Article 601d-1 may not exceed $900 million. 

SECTION 4.  Amends Section 21, Article 601d, V.T.C.S. (Texas Public Finance
Authority Act),  
to authorize the board, among other powers, to delegate authority to
negotiate contracts for issuance of obligations to one or more of its
employees or members.  Prohibits such negotiations from being considered as
a meeting or deliberation.  

SECTION 5.  Emergency clause.
  Effective date: upon passage.