BILL ANALYSIS Senate Research Center S.B. 2395 89R15973 AMF-D By: Creighton Education K-16 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Taxpayers place trust in school districts to use bond funds precisely for the projects presented during bond elections. However, current law permits districts, under certain conditions, to redirect unspent bond proceeds toward projects voters never approved. This practice undermines transparency and erodes public confidence. S.B. 2395 ensures accountability by restricting the use of bond proceeds strictly to the specific projects approved by voters or to retire the bonds. As proposed, S.B. 2395 amends current law relating to general obligation bonds issued by school districts. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 45.1105(a), Education Code, as follows: (a) Deletes existing text authorizing a school district to use the unspent proceeds of issued general obligation bonds for a purpose other than the specific purposes for which the bonds were authorized if the specific purposes are accomplished or abandoned, and the board of trustees at a public meeting held only for the purpose of considering the use of the unspent bond proceeds approves in separate votes the use of the proceeds for a purpose other than to retire the bonds and the purpose specified at the time the vote is taken. Makes nonsubstantive changes. SECTION 2. Repealer: Sections 45.1105(b) (relating to requiring that notice of a public meeting held include a statement that the board of trustees will consider the use of unspent bond proceeds for certain purposes) and (c) (relating to requiring that a public meeting held provide the public an opportunity to address the board of trustees on the question of using the unspent bond proceeds for certain purposes), Education Code. SECTION 3. Makes application of this Act prospective. SECTION 4. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2395
89R15973 AMF-D By: Creighton
Education K-16
4/4/2025
As Filed
Senate Research Center
S.B. 2395
89R15973 AMF-D
By: Creighton
Education K-16
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Taxpayers place trust in school districts to use bond funds precisely for the projects presented during bond elections. However, current law permits districts, under certain conditions, to redirect unspent bond proceeds toward projects voters never approved. This practice undermines transparency and erodes public confidence.
S.B. 2395 ensures accountability by restricting the use of bond proceeds strictly to the specific projects approved by voters or to retire the bonds.
As proposed, S.B. 2395 amends current law relating to general obligation bonds issued by school districts.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 45.1105(a), Education Code, as follows:
(a) Deletes existing text authorizing a school district to use the unspent proceeds of issued general obligation bonds for a purpose other than the specific purposes for which the bonds were authorized if the specific purposes are accomplished or abandoned, and the board of trustees at a public meeting held only for the purpose of considering the use of the unspent bond proceeds approves in separate votes the use of the proceeds for a purpose other than to retire the bonds and the purpose specified at the time the vote is taken. Makes nonsubstantive changes.
SECTION 2. Repealer: Sections 45.1105(b) (relating to requiring that notice of a public meeting held include a statement that the board of trustees will consider the use of unspent bond proceeds for certain purposes) and (c) (relating to requiring that a public meeting held provide the public an opportunity to address the board of trustees on the question of using the unspent bond proceeds for certain purposes), Education Code.
SECTION 3. Makes application of this Act prospective.
SECTION 4. Effective date: September 1, 2025.