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.  Currently, there are six
members on the board that governs TPFA.  In addition, current law states
that TPFA's purpose is 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.  Current law also contains 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.