SRC-PNG H.B. 1879 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1879
By: Averitt (Sibley)
Finance
5/2/1999
Engrossed


DIGEST 

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 branches of state government.  There
is concern relating to the requirements and the application of the open
meetings law with regard 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 litigation.
This bill would exempt a pricing subcommittee of TPFA from the application
of the open meetings law and would authorize the board of TPFA to delegate
authority to negotiate contracts without invoking the open meetings
regulations. 

PURPOSE

As proposed, H.B. 1879 exempts a pricing subcommittee of TPFA from the
application of the open meetings law and authorizes the board of TPFA to
delegate authority to negotiate contracts without invoking the open
meetings regulations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 6, Article 601d, V.T.C.S., by adding Subsection
(d), to provide that a subcommittee of the board of directors (board) of
the Texas Public Finance Authority (TPFA), appointed by the board pursuant
to Section 3, Article 717q, V.T.C.S., is not subject to Chapter 551,
Government Code, when it is acting to price and sell the obligations of
TPFA in accordance with parameters for the issuance established by the
board. 

SECTION 2. Amends Section 23(b), Article 601d, V.T.C.S., to authorize that
the process of acquiring or constructing a building or purchasing or
leasing equipment to begin after TPFA 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 TPFA.  Deletes existing text
regarding interim construction finance agreements. 

SECTION 3.  Repealer: Section 6, Article 601d-1, V.T.C.S. (Amount of
Outstanding Bonds).   
SECTION 4. Amends Section 21, Article 601d, V.T.C.S., to authorize the
board, among other powers, to delegate authority to negotiate contracts to
its employees or members.  Prohibits such negotiations from being
considered a meeting or deliberation. 

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