HBA-KDB H.B. 2153 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2153 By: Averitt Financial Institutions 8/14/2001 Enrolled BACKGROUND AND PURPOSE 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. 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. ANALYSIS 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. EFFECTIVE DATE September 1, 2001.