Bill > HB51

This bill prohibits the guarantee of public school bonds by the Texas Permanent School Fund, effectively ending the existing bond guarantee program for school districts and charter districts. Specifically, the bill prevents the corpus and income of the permanent school fund from guaranteeing or underwriting bonds issued by school districts or charter districts. Existing bond guarantees for bonds approved before September 1, 2025, will remain in effect until those bonds mature or are defeased. The legislation removes multiple sections of the Education Code related to the bond guarantee program, including provisions about charter districts and bond guarantee funds. Additionally, the bill makes conforming changes to various sections of the Education Code, such as removing references to charter district bond guarantee programs and modifying definitions. The bill will take effect immediately if it receives a two-thirds vote in the Texas Legislature, or otherwise on the 91st day after the legislative session ends. The changes apply only to bond guarantees approved on or after the effective date, ensuring that existing bonds maintain their current guarantee status.