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 18 percent of their most recently adopted or amended annual budget. Specifically, the bill 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 either the existing bond obligations or the total of existing and proposed bond obligations surpass this threshold.

The bill clarifies that 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 end of the legislative session. Elections ordered prior to this date will continue to be governed by the previous law, ensuring that any existing obligations are not retroactively affected by the new restrictions.

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