The bill, H.B. No. 1939, introduces a new provision in the Texas Education Code that allows school districts to receive a four percent credit on the total amount required for purchasing attendance credit if they prepay by February 15 of the relevant school year. This credit is contingent upon the district opting to pay for the credit in a specified manner outlined in existing law. Additionally, the bill stipulates that this reduction will be applied after any other reductions the district may be entitled to under current law.

The new section, 49.1541, is added to Subchapter D of Chapter 49, which governs public school finance. The bill is set to take effect on September 1, 2025, providing school districts with an incentive to manage their finances proactively by prepaying for attendance credit.

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