The bill, S.B. No. 1635, introduces a new provision in the Texas Education Code that provides a credit against required recapture payments for certain school districts that incur costs for windstorm and hail insurance. Specifically, this credit applies to school districts located in first tier or second tier coastal counties, as defined by the Insurance Code. The bill adds Section 49.1573, which stipulates that the total amount a qualifying school district is required to pay for attendance credit will be reduced by the amount spent on windstorm and hail insurance in the preceding school year.

Additionally, the bill clarifies that any reduction in recapture payments due to the insurance costs will occur after any other reductions the district is entitled to under existing provisions of the Education Code. This legislation aims to alleviate some financial burdens on coastal school districts by recognizing the costs associated with necessary insurance coverage. The bill is set to take effect on September 1, 2025.

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