SB843

Regular Session

Relating to a Texas Education Agency database of school district and open-enrollment charter school bonds, taxes, and bond-related projects.

ModeratePlan for compliance

Medium Cost

Effective:2025-09-01

Enforcing Agencies

Texas Education Agency

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025.
Compliance Deadline: Contingent upon legislative appropriation. If funded, anticipate the first mandatory data call in Q3 or Q4 2026 to allow for system development.
Agency Rulemaking: The Commissioner of Education is authorized to adopt rules under Sec. 45.114(f). Expect a "regulatory gray zone" between September 2025 and Spring 2026 where definitions for "current information" and "project size" are debated.

Immediate Action Plan

Audit Internal Controls: Immediately review your ability to link a specific vendor invoice to a specific bond series and ballot proposition. If this is currently manual, digitize it.
Monitor Appropriations: Confirm by June 2025 if the Legislature appropriated the ~$3M required to fund this system. If not, the requirement is dormant (Sec. 2).
Update Vendor Agreements: Add "Right to Audit" and data formatting requirements to all active and future construction contracts.
Prepare Data Dictionary: Create a standardized list of project definitions and descriptions to ensure consistency across all reporting years.

Operational Changes Required

Contracts

Construction & Architecture MSAs: You must amend Master Service Agreements immediately. Insert clauses requiring vendors to submit payment applications and project updates (square footage, budget-to-actuals) in a format compatible with TEA reporting fields.
Financial Advisory Services: Expand the scope of work for your Bond Counsel or Financial Advisors to include the transmission of tax rate and ballot data to the TEA database on your behalf.

Hiring/Training

Silo Integration: Finance departments (tax rates/bond issuance) and Facilities departments (construction progress/invoices) must be cross-trained. They can no longer operate independently; the database requires linking specific bond dollars to specific physical project outcomes.
Designated Compliance Officer: Assign a specific officer to monitor the database for accuracy. Under Sec. 45.114(b)(6), you must actively propose corrections to TEA if data is inaccurate to mitigate reputational liability.

Reporting & Record-Keeping

Chain of Custody: You must maintain a direct data link between the Ballot Proposition Language and the Final Project List. Any deviation between what was promised to voters and what is being built must be documented and explained.
Granular Metrics: Prepare to report specific metrics for every project: square footage, total cost, budget status, and funding source (bond proceeds vs. other funds).
Tax Rate Reconciliation: You must report the "Projected I&S Tax Rate" (from the election) alongside the "Actual Tax Rate."

Fees & Costs

Administrative Burden: While there are no new filing fees, the internal cost of compliance is Medium. Expect increased billable hours from legal and financial consultants to ensure initial data integrity.
System Upgrades: You may need to invest in project management software that integrates with financial ledgers to automate this reporting.

Strategic Ambiguities & Considerations

Definition of "Project": The statute does not define a *de minimis* threshold. It is unclear if minor capital expenditures (e.g., HVAC repair, bus purchases) require the same detailed reporting as new campus construction. Watch for TEA rulemaking to set a monetary floor.
Reporting Frequency: The term "current information" is undefined. TEA could interpret this as real-time, monthly, or annual. You must advocate for an annual or semi-annual cycle during the comment period.
Retroactivity: The law does not explicitly exempt bonds issued prior to September 1, 2025. If you are currently spending proceeds from a 2022 or 2023 bond, assume this data must be retroactively entered.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--primary & Secondary Education--primary & Secondary--finance Education--primary & Secondary--general Electronic Information Systems Bonds Education Agency, Texas Education, Commissioner of Taxation Taxation--school District

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 843
89R3496 AMF-D	By: Kolkhorst
	Education K-16
	4/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In Texas, school district bonds and taxes play a crucial role in funding educational facilities, capital projects, and ongoing maintenance needs. However, despite the significance of these financial decisions, there is currently no centralized system for tracking and providing public access to detailed information regarding school district bonds, taxes, and the projects funded by these resources. This lack of transparency limits the ability of taxpayers, parents, and policymakers to fully understand the impact of bond-related decisions and to ensure that funds are used effectively.

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S.B. 843 seeks to address this gap by requiring the Texas Education Agency (TEA) to establish and maintain a comprehensive database of school district bonds, taxes, and related projects. The proposed database will centralize critical financial data, making it more accessible to the public and allowing for greater transparency and accountability in school district financial management. By improving oversight, this initiative will enable stakeholders, including taxpayers and policymakers, to better track how bond funds are utilized and how bond issuances impact tax rates.

As proposed, S.B. 843 amends current law relating to a Texas Education Agency database of school district bonds, taxes, and bond-related projects.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of education in SECTION 1 (Section 45.114, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter E, Chapter 45, Education Code, by adding Section 45.114, as follows:

Sec. 45.114. BOND, TAX, AND PROJECT DATABASE. (a) Defines "bond," "database," and "maintenance tax."

(b) Requires the Texas Education Agency (TEA) to develop and maintain a database that includes current information regarding school district bonds, taxes, and bond-related projects, including:

(1) certain information for each bond issued or proposed by a school district;

(2) certain information for maintenance taxes that have been levied or proposed by a school district;

(3) the results of any election held under Section 26.08 (Automatic Election to Approve Tax Rate of School District), Tax Code, including the ad valorem tax rate proposed by the school district for purposes of the election;

(4) a report generation function to allow TEA to generate reports of the information described by Subdivisions (1) and (2) for each school district, disaggregated by geographic areas; and

(5) a function that allows for the proposal of updates or corrections to the information included in the database.

(c) Requires a school district to provide TEA with the information described by Subsections (b)(1) through (3) and any other information requested by TEA for the purpose of maintaining the database established under this section.

(d) Authorizes TEA to contract with a third party as necessary for the development or maintenance of the database under this section.

(e) Authorizes the commissioner of education to adopt rules as necessary to implement this section.

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author

Coauthors (10)

House Sponsor

Rep. Brad BuckleyRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 843

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to a Texas Education Agency database of school district
	and open-enrollment charter school bonds, taxes, and bond-related
	projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter E, Chapter 45, Education Code, is
	amended by adding Section 45.114 to read as follows:
	Sec. 45.114. BOND, TAX, AND PROJECT DATABASE. (a) In this
	section:
	(1) "Bond" means a bond described by Section 45.001.
	(2) "Charter district" means an open-enrollment
	charter school designated as a charter district under Section
	12.135.
	(3) "Database" means the database established under
	this section.
	(4) "Maintenance tax" means a tax described by Section
	45.002.
	(b) The agency shall develop and maintain a database that
	includes current information regarding school district or
	open-enrollment charter school, including charter district, bonds,
	taxes, and bond-related projects, including:
	(1) for each bond planned, proposed, or issued by a
	school district:
	(A) the language of the ballot proposition under
	Section 45.003(b);
	(B) the projected interest and sinking fund tax
	rate associated with a proposed bond;
	(C) the result of an election held for the
	purpose of issuing a proposed bond;
	(D) a list of the projects to be funded using the
	bond;
	(E) an accounting of the use of the proceeds of
	any issued bond, including descriptions of any projects paid for
	with the proceeds;
	(F) other data related to capital projects, such
	as new or renovated facilities, funded wholly or partly using the
	bond, including data regarding funding sources for the projects,
	project costs, project budget, and project size; and
	(G) any increase in the interest and sinking fund
	tax rate resulting from issued bonds;
	(2) for each bond issued for an open-enrollment
	charter school, including a charter district:
	(A) a list of the projects to be funded using the
	bond; and
	(B) an accounting of the use of the proceeds of
	any issued bond, including descriptions of any projects paid for
	with the proceeds;
	(3) for maintenance taxes that have been levied or
	proposed by a school district:
	(A) each school district's proposed or approved
	tax rate; and
	(B) the language of the ballot proposition under
	Section 45.003(d);
	(4) the results of any election held under Section
	26.08, Tax Code, including the ad valorem tax rate proposed by the
	school district for purposes of the election;
	(5) a report generation function to allow the agency
	to generate reports of the information described by Subdivisions
	(1), (2), and (3), as applicable, for each school district and
	open-enrollment charter school, including a charter district,
	disaggregated by geographic area; and
	(6) a function that allows for the proposal of updates
	or corrections to the information included in the database.
	(c) A school district or open-enrollment charter school,
	including a charter district, shall provide the agency with the
	information described by Subsections (b)(1) through (4) and any
	other information requested by the agency for the purpose of
	maintaining the database established under this section.
	(d) The agency may contract with a third party as necessary
	for the development or maintenance of the database under this
	section.
	(e) The agency shall transmit the information described
	above to the Bond Review Board to satisfy the local government
	reporting requirements under Section 1231.025 of the Government
	Code.
	(f) The commissioner may adopt rules as necessary to
	implement this section.
	SECTION 2. The Texas Education Agency is required to
	implement a provision of this Act only if the legislature
	appropriates money specifically for that purpose. If the
	legislature does not appropriate money specifically for that
	purpose, the agency may, but is not required to, implement a
	provision of this Act using other money available for that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 7, 2025

TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB843 by Kolkhorst (Relating to a Texas Education Agency database of school district bonds, taxes, and bond-related projects.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB843, As Introduced: a negative impact of ($3,000,000) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($1,500,000)
2027	($1,500,000)
2028	($1,500,000)
2029	($1,500,000)
2030	($1,500,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2026	($1,500,000)
2027	($1,500,000)
2028	($1,500,000)
2029	($1,500,000)
2030	($1,500,000)

Fiscal Analysis

The bill would require the Texas Education Agency (TEA) to develop and maintain a database that includes current information regarding school district bonds, taxes, and bond-related projects. TEA could contract with a third party to develop and maintain the database.

Methodology

TEA assumes that it would be more cost-effective to contract with a third party to develop and maintain the database required under the bill. The agency assumes the fiscal impact of the third party contract would be $1.5 million each year.

Local Government Impact

School districts would be required to provide information related to bonds, taxes, and tax rate election results, as well as any other information requested by the agency for the purpose of maintaining the database.

Source Agencies:

701 Texas Education Agency

LBB Staff:

JMc, JPE, ASA, MJe

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Frequently Asked Questions

Common questions about SB843

What does Texas SB843 do?

SB843 mandates that Independent School Districts and Open-Enrollment Charter Schools report granular, project-level data on bond proceeds and construction status to a new public-facing TEA database. This legislation transforms bond compliance from a periodic financial summary into a continuous project management audit, requiring you to publicly reconcile ballot proposition language with actual construction invoices and tax rates. Implementation Timeline Effective Date: September 1, 2025.

Who authored SB843?

SB843 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

When was SB843 signed into law?

SB843 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB843?

SB843 is enforced by Texas Education Agency.

How urgent is compliance with SB843?

The compliance urgency for SB843 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB843?

The cost impact of SB843 is estimated as "medium". This may vary based on industry and implementation requirements.

What topics does SB843 address?

SB843 addresses topics including education, education--primary & secondary, education--primary & secondary--finance, education--primary & secondary--general and electronic information systems.

Legislative data provided by LegiScanLast updated: November 25, 2025

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