H.B. No. 3631 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 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.

The bill also clarifies that this reduction in recapture payments will occur after any other reductions the district is entitled to under existing provisions of the Education Code. The new section, 49.1573, is set to take effect on September 1, 2025, thereby providing financial relief to affected school districts in managing their insurance costs.

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