Office of House Bill AnalysisH.B. 2153
By: Averitt
Financial Institutions


The Texas Public Finance Authority (TPFA) was created in 1984 to provide
cost-effective financing for capital projects to certain state agencies and
institutions of higher education, as specified by the legislature. In the
past 16 years, changes in state law have created conflicting provisions and
rendered other TPFA provisions obsolete.  The Texas Constitution was
amended in 1999 to require boards created by the legislature to be composed
of an odd number of three or more members.  Prior to the 77th Legislature,
there were six members on the board that governs TPFA.  In addition, state
law stated that TPFA's purpose was to finance the acquisition and
construction of state office buildings in Travis County alone. However, in
recent years the scope of TPFA's work has been expanded beyond Travis
County, under specific authorization of the legislature.  State law also
contained conflicting provisions regarding TPFA's exclusive authority to
issue bonds on behalf of certain institutions of higher education.
Legislation enacted in 1999 to require all state agencies to make a good
faith effort to utilize historically underutilized businesses rendered a
similar provision for TPFA unnecessary and obsolete.  House Bill 2153
increases from six to seven the number of TPFA board members to comply with
the aforementioned amendment to the Texas Constitution, and updates TPFA
provisions to reflect changes in its purpose, authority, and duties. 


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. 


House Bill 2153 amends the Government Code to increase from six to seven
members the size of the board of directors of the Texas Public Finance
Authority (TPFA).  The bill expands TPFA's authority to issue and sell
bonds in the name of TPFA to include financing for the acquisition or
construction of buildings throughout Texas, rather than buildings in Travis
County alone. 

The bill updates references to the purpose, duties, and authority of TPFA.


September 1, 2001.