H.B. No. 114 proposes a prohibition on the guarantee of public school bonds in Texas. The bill amends the Education Code to state that bonds issued by school districts or charter districts, including refunding and refinanced bonds, may not be guaranteed or underwritten by the corpus and income of the permanent school fund. It 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 makes several conforming changes to various sections of the Education Code, including the repeal of certain provisions related to bond guarantees.

The bill's amendments include changing the heading of Subchapter C, Chapter 45, to reflect that the guarantee of bonds is prohibited, and it introduces new language to specify that the guarantee of bonds is not allowed. It also repeals multiple sections of the Education Code that pertain to bond guarantees and related provisions. The changes will only apply to guarantees or credit enhancements for bonds approved on or after the effective date of the Act, while existing guarantees for previously approved bonds 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 45, Education Code 12, Government Code 1201, Education Code 53, Education Code 43)