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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on the guarantee of public school bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. GUARANTEE OF PUBLIC SCHOOL BONDS PROHIBITED |
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SECTION 1.001. The heading to Subchapter C, Chapter 45, |
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Education Code, is amended to read as follows: |
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SUBCHAPTER C. GUARANTEE OF [GUARANTEED] BONDS PROHIBITED |
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SECTION 1.002. Section 45.052, Education Code, is amended |
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to read as follows: |
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Sec. 45.052. GUARANTEE OF BONDS PROHIBITED. (a) Bonds [On |
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approval by the commissioner, bonds] issued under Subchapter A by a |
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school district or Chapter 53 for a charter district, including |
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refunding and refinanced bonds, may not be [are] guaranteed or |
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otherwise underwritten by the corpus and income of the permanent |
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school fund. |
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(b) A [Notwithstanding any amendment of this subchapter or |
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other law, the] guarantee of or credit enhancement provided for a |
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[under this subchapter of] school district or charter district bond |
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approved before September 1, 2025, [bonds] remains in effect until |
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the date those bonds mature or are defeased in accordance with state |
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law. |
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ARTICLE 2. CONFORMING CHANGES |
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SECTION 2.001. Section 12.141(c), Education Code, is |
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amended to read as follows: |
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(c) The agency shall annually review the amount of funds in |
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the charter school liquidation fund and transfer any funds |
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exceeding $2 million[: |
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[(1)] for use in funding a grant program established |
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by the agency to: |
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(1) [(A)] encourage high school students to enter the |
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teaching profession; and |
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(2) [(B)] assist current paraprofessionals and |
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instructional aides in pursuing the necessary credentials to become |
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full-time teachers[; or |
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[(2) to the comptroller to deposit in the charter |
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district bond guarantee reserve fund under Section 45.0571]. |
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SECTION 2.002. Section 43.052(a), Education Code, is |
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amended to read as follows: |
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(a) The State Board of Education may incorporate the Texas |
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Permanent School Fund Corporation and delegate to the corporation |
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the board's authority to manage and invest[: |
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[(1)] the permanent school fund under Section 43.003[; |
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and |
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[(2) the charter district bond guarantee reserve fund |
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under Section 45.0571]. |
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SECTION 2.003. Section 45.051(1-a), Education Code, is |
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amended to read as follows: |
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(1-a) "Charter district" means an open-enrollment |
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charter school designated as a charter district under Section |
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12.135 as that section existed immediately before September 1, |
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2025. |
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SECTION 2.004. Section 53.02(10), Education Code, is |
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amended to read as follows: |
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(10) "Authorized charter school" means an |
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open-enrollment charter school that holds a charter granted under |
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Subchapter D, Chapter 12[, and includes an open-enrollment charter |
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school designated as a charter district as provided by Section |
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12.135]. |
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SECTION 2.005. Section 1201.0245(i), Government Code, is |
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amended to read as follows: |
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(i) A political subdivision may extend the maturity date of |
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an issued capital appreciation bond only if: |
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(1) the extension of the maturity date will decrease |
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the total amount of projected principal and interest to maturity; |
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or |
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(2) the political subdivision is a school district and |
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[: |
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[(A)] the maximum legally allowable tax rate for |
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indebtedness has been adopted[; and |
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[(B) the Texas Education Agency certifies in |
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writing that the solvency of the permanent school fund's bond |
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guarantee program would be threatened without the extension]. |
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SECTION 2.006. The following provisions of the Education |
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Code are repealed: |
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(1) Section 7.055(b)(38); |
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(2) Section 7.102(c)(33); |
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(3) Section 12.135; |
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(4) Section 43.067; |
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(5) Sections 45.051(1) and (2); |
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(6) Sections 45.053, 45.0531, 45.0532, 45.0533, |
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45.054, 45.0541, 45.055, 45.056, 45.057, 45.0571, 45.058, 45.059, |
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45.0591, 45.060, 45.061, 45.062, and 45.063; |
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(7) Subchapter I, Chapter 45; |
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(8) Section 48.273(g); and |
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(9) Section 53.351(f-1). |
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ARTICLE 3. TRANSITION; EFFECTIVE DATE |
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SECTION 3.001. The change in law made by this Act applies |
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only to a guarantee of or credit enhancement provided for a school |
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district or charter district bond approved on or after the |
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effective date of this Act. A guarantee of or credit enhancement |
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provided for a school district or charter district bond approved |
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before the effective date of this Act remains in effect until the |
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date those bonds mature or are defeased in accordance with state |
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law, and the former law is continued for that purpose. |
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SECTION 3.002. This Act takes effect September 1, 2025. |