The bill, introduced by Harrison as H.B. No. 51, seeks to prohibit the guarantee of public school bonds in Texas. It amends the Education Code to reflect this prohibition, specifically changing the heading of Subchapter C, Chapter 45, to "GUARANTEE OF PROHIBITED BONDS" and revising Section 45.052 to state that bonds issued by school districts or charter districts may not be guaranteed or underwritten by the corpus and income of the permanent school fund. The bill also clarifies that any guarantees or credit enhancements for bonds approved before September 1, 2025, will remain in effect until those bonds mature or are defeased.

Additionally, the bill includes conforming changes to various sections of the Education Code, repealing several provisions related to bond guarantees and credit enhancements. It specifies that the changes apply only to guarantees or credit enhancements for bonds approved on or after the effective date of the Act, while those approved prior will continue under the former law until maturity. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses or on the 91st day after the legislative session if such a vote is not achieved.

Statutes affected:
Introduced: Education Code 45.052, Education Code 12.141, Education Code 43.052, Education Code 53.02, Government Code 1201.0245 (Education Code 12, Education Code 43, Government Code 1201, Education Code 45, Education Code 53)