H.B. No. 87 introduces a new provision to the Education Code that prohibits school districts from issuing certain bonds. Specifically, it 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 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. Additionally, the proposed bond's principal and interest combined with the existing bonds must also not exceed this 18 percent threshold.

The bill clarifies that this change in law will only apply to elections ordered on or after its effective date, which is set for the 91st day following the last day of the legislative session. Elections ordered before this date will continue to be governed by the previous law, ensuring a smooth transition for school districts regarding bond issuance.

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