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 includes various conforming changes to related sections of the Education Code, such as the repeal of certain provisions and amendments to definitions.

The bill's changes include the amendment of the heading to Subchapter C of 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. Several sections of the Education Code are repealed, which further aligns with the bill's intent to eliminate the guarantee of public school bonds. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect 91 days after the legislative session concludes.

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 12, Education Code 43, Education Code 53, Education Code 45, Government Code 1201)