The rules and regulations of public finance in the state of Texas is governed by the Texas Public Finance Authority (TPFA). The Texas Public Finance Authority was incorporated in 1984 and it was created by passing an act of the Texas legislature.
The TPFA is a public authority. The objective of Texas Public Finance Authority is generation of funds for building or accomplishment of facilities for State agencies. Currently, this agency has an FTE (flow-through entity) cap of 15 FTEs, and the projects are budgeted at approximately $800,000 per year.
A board of directors comprising seven members regulates the Texas Public Finance Authority. The appointment of the board of directors is done by the Governor of Texas and it is confirmed by the Senate.
An executive director is employed by the Authority and given the charge to manage the affairs of the TPFA, and he works under the authority board's direction.
The state legislature of Texas has every right to evaluate and give permission for the particular project for which the issue of bonds is to be done and the maximum amount of bonded indebtedness that might be received by the issue of bonds or approximated cost of the project. After this is done, the TPFA can issue bonds for the building or accomplishment of a State agency building, barring higher educational institutions.
The TPFA issues various types of bonds besides issuing bonds for the construction projects. Before the issuance of those bonds, the issue may be authorized by the legislature and the legislature has the right to declare the Authority as the exclusive issuer of that specific bond.
Under the amendment made to the Texas Parks and Wildlife Code in 1999, the TPFA has issued revenue bonds on the Texas Parks and Wildlife Department's behalf for betterment of the state parks and park facilities. Revenue bonds were also issued by the TPFA for the Texas Workforce Commission for generating funds for the Unemployment Compensation Fund under the amendments made to the Texas Labor Code enacted in 2003. Additionally, for financing facilities for charter schools, a non-profit corporation for issuance of bonds has been set up by the Authority, and this was done as per the Texas Education Code, Ch. 53.
The Texas Public Finance Authority has issued various revenue and general obligation bonds for the following state agencies:
- The Department of Agriculture
- Stephen F. Austin University
- The School for the Blind and Visually Impaired
- The Building and Procurement Commission
- The Department of Criminal Justice
- Health and Human Services Commission
- The State Department of Health Services
- The Department of Aging and Disability Services
- The Historical Commission
- The Juvenile Probation Commission
- The Military Facilities Commission
- The Texas National Research Laboratory Commission
- The Texas Parks and Wildlife Department
- The State Preservation Board
- The Texas State Technical College System
- The Texas Department of Transportation
- The Texas Workers’ Compensation Fund
- The Texas Workforce Commission
- The Texas Youth Commission
- Midwestern State University
- Texas Southern University
At present, the Authority manages three commercial paper programs:
- The Master Lease Purchase Program
- General Obligation Commercial Paper Program (Series 2002A)
- The General Obligation Commercial Paper Program (Series 2002B)
A fourth commercial paper program for financing loans to defense persons has been founded by the Authority in conformance to Chapter 436 of the Government Code.
Contact Details
Texas Public Finance Authority, P.O. Box 12906, Austin, TX 78711
Key person: Kimberly K. Edwards, Executive Director
Phone: (512) 463-5544
www.tpfa.state.tx.us