HBA-NLM C.S.H.B. 1879 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1879 By: Averitt Financial Institutions 3/17/1999 Committee Report (Substituted) 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. C.S.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 among 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, 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 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. 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. Prohibits such negotiations from being considered a meeting or deliberation. SECTION 5. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1879 modifies the original in SECTION 1 by removing from Subsection (d) a provision subjecting the board to Chapters 551 (Open Meetings) and 552 (Public Information), Government Code, except when deliberating negotiated contracts necessary to issue bonds in closed meetings. C.S.H.B. 1879 modifies the original in SECTION 4 by amending Section 21, Texas Public Finance Authority Act, Article 601d, to authorize the board to delegate authority to negotiate contracts. This bill redesignates the original SECTION 4 to new SECTION 5.