H.B. No. 5140 introduces a new provision to the Texas Education Code that allows school districts to receive a 10 percent reduction in the total amount required for purchasing attendance credit if they prepay by February 15 of the relevant school year. This reduction applies specifically to districts that choose to pay for credit in accordance with the specified method outlined in Section 49.154(a)(2). The bill also clarifies that this reduction will be applied after any other reductions the district may be entitled to under Section 49.157 or other relevant provisions.

The new section, designated as Section 49.1541, aims to incentivize timely payments by school districts, potentially improving cash flow and financial planning within the public school finance system. The bill is set to take effect on September 1, 2025, allowing districts time to adjust to the new provisions.

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