By Averitt                                            H.B. No. 1879
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the pricing and sale of bonds by the Texas Public
 1-3     Finance Authority, the use of bond proceeds, and the maximum amount
 1-4     of outstanding bonds.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 6, Texas Public Finance Authority Act
 1-7     (Article 601d, Vernon's Texas Civil Statutes), is amended by adding
 1-8     new subsection (d) to read as follows:
 1-9           (d)  Except as otherwise provided by this subsection, the
1-10     Board is subject to Chapters 551 and 552 of the Texas Government
1-11     Code.  The Board may hold closed meetings to deliberate a
1-12     negotiated contract that is required for the issuance of bonds or
1-13     other obligations and refuse to release information relating to
1-14     such contract if deliberation in an open meeting or disclosure of
1-15     information would have a detrimental effect on the position of the
1-16     Board in negotiations with a third person or give advantage to
1-17     bidders or competitors.  A subcommittee of the Board, appointed by
1-18     the Board pursuant to Texas Civil Statutes Article 717q, section 3,
1-19     is not subject to Chapter 551 of the Government Code when it is
1-20     acting to price and sell the obligations of the Authority in
1-21     accordance with parameters for the issuance established by the
 2-1     Board.
 2-2           SECTION 2.  Section 23(b), Texas Public Finance Authority Act
 2-3     (Article 601d, Vernon's Texas Civil Statutes), is amended to read
 2-4     as follows:
 2-5           (b)  The process of acquiring or constructing a building or
 2-6     purchasing or leasing equipment may begin after:
 2-7                 (1)  the authority has certified that bonds or
 2-8     obligations in an amount sufficient to pay the construction or
 2-9     purchase price of the project have been authorized for issuance by
2-10     the authority and approved by the Texas Bond Review Board [under an
2-11     interim construction finance agreement established by the authority
2-12     in accordance with Chapter 656, Acts of the 68th Legislature,
2-13     Regular Session, 1983 (Article 717q, Vernon's Texas Civil
2-14     Statutes), and its subsequent amendments]; or
2-15                 (2)  the proceeds have been deposited into the state
2-16     treasury, the comptroller of public accounts has certified that the
2-17     proceeds are available, the reserve funds and capitalized interest,
2-18     as certified by the authority as reasonably required, have been
2-19     paid, and the costs of issuing the bonds or obligations have been
2-20     paid after receiving a certificate from the authority specifying
2-21     those costs.
2-22           SECTION 3.  Section 6, Article 601d-1, Texas Civil Statutes
2-23     is repealed.
2-24           (For information only, the section now reads as follows:
2-25     "Sec. 6.  At any one time, the combined amount of outstanding
 3-1     revenue bonds and outstanding general obligation bonds issued under
 3-2     this Act may not exceed $900 million.")
 3-3           SECTION 4.  The importance of this legislation and the
 3-4     crowded condition of the calendars in both houses create an
 3-5     emergency and an imperative public necessity that the
 3-6     constitutional rule requiring bills to be read on three several
 3-7     days in each house be suspended, and this rule is hereby suspended,
 3-8     and that this Act take effect and be in force from and after its
 3-9     passage and it is so enacted.