Texas 2025 - 89th Regular

Texas House Bill HB5035 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9895 AMF-D
2	2	By: Harrison H.B. No. 5035
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a prohibition on the guarantee of public school bonds.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. GUARANTEE OF PUBLIC SCHOOL BONDS PROHIBITED
12	12	SECTION 1.001. The heading to Subchapter C, Chapter 45,
13	13	Education Code, is amended to read as follows:
14	14	SUBCHAPTER C. GUARANTEE OF [GUARANTEED] BONDS PROHIBITED
15	15	SECTION 1.002. Section 45.052, Education Code, is amended
16	16	to read as follows:
17	17	Sec. 45.052. GUARANTEE OF BONDS PROHIBITED. (a) Bonds [On
18	18	approval by the commissioner, bonds] issued under Subchapter A by a
19	19	school district or Chapter 53 for a charter district, including
20	20	refunding and refinanced bonds, may not be [are] guaranteed or
21	21	otherwise underwritten by the corpus and income of the permanent
22	22	school fund.
23	23	(b) A [Notwithstanding any amendment of this subchapter or
24	24	other law, the] guarantee of or credit enhancement provided for a
25	25	[under this subchapter of] school district or charter district bond
26	26	approved before September 1, 2025, [bonds] remains in effect until
27	27	the date those bonds mature or are defeased in accordance with state
28	28	law.
29	29	ARTICLE 2. CONFORMING CHANGES
30	30	SECTION 2.001. Section 12.141(c), Education Code, is
31	31	amended to read as follows:
32	32	(c) The agency shall annually review the amount of funds in
33	33	the charter school liquidation fund and transfer any funds
34	34	exceeding $2 million[:
35	35	[(1)] for use in funding a grant program established
36	36	by the agency to:
37	37	(1) [(A)] encourage high school students to enter the
38	38	teaching profession; and
39	39	(2) [(B)] assist current paraprofessionals and
40	40	instructional aides in pursuing the necessary credentials to become
41	41	full-time teachers[; or
42	42	[(2) to the comptroller to deposit in the charter
43	43	district bond guarantee reserve fund under Section 45.0571].
44	44	SECTION 2.002. Section 43.052(a), Education Code, is
45	45	amended to read as follows:
46	46	(a) The State Board of Education may incorporate the Texas
47	47	Permanent School Fund Corporation and delegate to the corporation
48	48	the board's authority to manage and invest[:
49	49	[(1)] the permanent school fund under Section 43.003[;
50	50	and
51	51	[(2) the charter district bond guarantee reserve fund
52	52	under Section 45.0571].
53	53	SECTION 2.003. Section 45.051(1-a), Education Code, is
54	54	amended to read as follows:
55	55	(1-a) "Charter district" means an open-enrollment
56	56	charter school designated as a charter district under Section
57	57	12.135 as that section existed immediately before September 1,
58	58	2025.
59	59	SECTION 2.004. Section 53.02(10), Education Code, is
60	60	amended to read as follows:
61	61	(10) "Authorized charter school" means an
62	62	open-enrollment charter school that holds a charter granted under
63	63	Subchapter D, Chapter 12[, and includes an open-enrollment charter
64	64	school designated as a charter district as provided by Section
65	65	12.135].
66	66	SECTION 2.005. Section 1201.0245(i), Government Code, is
67	67	amended to read as follows:
68	68	(i) A political subdivision may extend the maturity date of
69	69	an issued capital appreciation bond only if:
70	70	(1) the extension of the maturity date will decrease
71	71	the total amount of projected principal and interest to maturity;
72	72	or
73	73	(2) the political subdivision is a school district and
74	74	[:
75	75	[(A)] the maximum legally allowable tax rate for
76	76	indebtedness has been adopted[; and
77	77	[(B) the Texas Education Agency certifies in
78	78	writing that the solvency of the permanent school fund's bond
79	79	guarantee program would be threatened without the extension].
80	80	SECTION 2.006. The following provisions of the Education
81	81	Code are repealed:
82	82	(1) Section 7.055(b)(38);
83	83	(2) Section 7.102(c)(33);
84	84	(3) Section 12.135;
85	85	(4) Section 43.067;
86	86	(5) Sections 45.051(1) and (2);
87	87	(6) Sections 45.053, 45.0531, 45.0532, 45.0533,
88	88	45.054, 45.0541, 45.055, 45.056, 45.057, 45.0571, 45.058, 45.059,
89	89	45.0591, 45.060, 45.061, 45.062, and 45.063;
90	90	(7) Subchapter I, Chapter 45;
91	91	(8) Section 48.273(g); and
92	92	(9) Section 53.351(f-1).
93	93	ARTICLE 3. TRANSITION; EFFECTIVE DATE
94	94	SECTION 3.001. The change in law made by this Act applies
95	95	only to a guarantee of or credit enhancement provided for a school
96	96	district or charter district bond approved on or after the
97	97	effective date of this Act. A guarantee of or credit enhancement
98	98	provided for a school district or charter district bond approved
99	99	before the effective date of this Act remains in effect until the
100	100	date those bonds mature or are defeased in accordance with state
101	101	law, and the former law is continued for that purpose.
102	102	SECTION 3.002. This Act takes effect September 1, 2025.