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


Office of House Bill AnalysisH.B. 1879
By: Averitt
Financial Institutions
3/7/1999
Introduced



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 on 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 authorizes the board to deliberate
bond contract negotiations in closed meetings, if necessary, and to keep
information relating to such contracts confidential.  This bill also
exempts a pricing subcommittee of the board from the application of the
open meetings law. 

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)  Subjects the board of directors (board) of the Texas Public Finance
Authority to Chapters 551 (Open Meetings) and 552 (Public Information),
Government Code, except as otherwise provided by this subsection.
Authorizes the board to deliberate negotiated contracts necessary to issue
bonds in closed meetings and keep information relating to such contracts
confidential if the deliberation in an open meeting or disclosure of
information would have a detrimental effect on the position of the board in
negotiations with a third person or give advantage to bidders or
competitors. Exempts from the application of Chapter 551, Government Code,
a board subcommittee appointed by the board pursuant to Article 717q,
Section 3 (Resolution, Order or Ordinance; Contents; Validity of
Signatures), V.T.C.S., acting to price and sell the obligations of the
Texas Public Finance Authority (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 Texas 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 this Act may not exceed $900 million. 

SECTION 4.  Emergency clause.
   Effective date: upon passage.