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.