Bill > HB5035

This bill prohibits the guarantee or credit enhancement of public school and charter district bonds by the Texas Permanent School Fund (PSF) starting September 1, 2025. Specifically, the bill eliminates the existing mechanism that allows school district and charter district bonds to be guaranteed by the corpus and income of the permanent school fund. Any bond guarantees or credit enhancements approved before September 1, 2025, will remain in effect until those bonds mature or are defeased. The bill makes numerous conforming changes to the Texas Education Code, including repealing multiple sections related to the bond guarantee program, removing references to charter districts being eligible for bond guarantees, and updating definitions. Additionally, the bill removes provisions that previously allowed the State Board of Education to manage a charter district bond guarantee reserve fund and eliminates certain certification requirements related to the PSF's bond guarantee program. These changes effectively end the state's practice of providing financial backing for school and charter district bonds after the specified date.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5035