Texas Public Building Authority

In 1983, the 68th Texas Legislature (Senate Bill 1355, Regular Session) created the Texas Public Building Authority to issue revenue bonds to finance the construction, renovation, or repair of buildings and other structures for use by state agencies in Travis County.

In 1987, the agency was renamed the Texas Public Finance Authority (Senate Bill 64, 70th Texas Legislature, 2nd Called Session). Its mission was broadened to include the issuance of State of Texas general obligation bonds to finance the construction, purchase, renovation, or repair of correctional and mental health facilities operated by the Texas Department of Mental Health and Mental Retardation throughout the state and to include the issuance of revenue bonds to finance the purchase of buildings and other facilities if the General Services Commission determined that purchase was economically feasible.

Before the Authority may issue bonds for the acquisition or construction of a building, the Legislature must have authorized the acquisition and construction of the building for which the bonds are to be issued and the estimated cost of the acquisition or construction of the building, or the maximum amount of bonded indebtedness, that may be incurred by the issuance of bonds. The Texas Supreme Court, in Texas Public Building Authority v. Mattox, 686 S.W.2d 924 (1985), ruled that revenue bonds issued by the Authority do not constitute debt of the State within the meaning of the Texas Constitution.

The Texas Public Building Authority was originally composed of three members (Senate Bill 1355, 68th Texas Legislature, Regular Session). Members were appointed by the governor, with advice and consent of the senate, for overlapping six-year terms.

As of February 7, 1990, the Public Finance Authority had issued over $447 million in revenue bonds, and over $474 million in State of Texas general obligation bonds. By 1990, the Authority had 5 full time equivalent employees.

(Sources include: Guide to Texas State Agencies, 6th edition (1990); the agency web site (http://www.tpfa.state.tx.us/about.aspx), accessed September 2006; and the enabling legislation, 1983, 1987.)