H.B. No. 87 introduces a new provision to the Education Code that prohibits school districts from issuing certain bonds if their existing bond obligations exceed a specified threshold. Specifically, the bill adds 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 either the amount needed to cover the principal and interest on existing bonds exceeds 18 percent of the district's most recently adopted or amended annual budget, or if the total amount required for existing and proposed bonds exceeds that same percentage of the budget.

The bill clarifies that this change in law will only apply to elections ordered after its effective date, which is set for the 91st day following the last day of the legislative session. Elections ordered prior to this date will continue to be governed by the previous law, ensuring that existing obligations are not retroactively affected by the new restrictions.

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