The bill, H.B. No. 302, introduces a new provision to the Education Code that prohibits school districts from issuing certain bonds. Specifically, it adds a new subsection (i) to Section 45.003, stating that a governing body or commissioners court cannot order an election to authorize the issuance of bonds if the amount required to pay the principal and interest on existing bonds exceeds 18 percent of the district's most recently adopted or amended annual budget. Additionally, if the total of existing bonds and the proposed bond exceeds this 18 percent threshold, the election cannot be ordered.

This change in law will only apply to elections ordered after the effective date of the Act, which is set to take effect 91 days after the last day of the legislative session. Elections ordered prior to this date will continue to be governed by the previous law.

Statutes affected:
Introduced: Education Code 45.003 (Education Code 45)