HB 4190

relating to an annual audit of attendance credit purchased by a
school district and the refund of attendance credit used for a
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 49.154(b), Education Code, is amended to
(b)  Receipts shall be deposited in the state treasury and
may be used only for the purpose of providing aid to school
districts not required to reduce the district's local revenue level
under Section 48.257 [foundation school program purposes].
SECTION 2.  Subchapter D, Chapter 49, Education Code, is
amended by adding Section 49.1541 to read as follows:
Sec. 49.1541.  AUDIT; REFUND.  (a)  The agency shall conduct
an annual audit of receipts from attendance credit under Section
49.154 to determine whether any receipts were used for a purpose not
described by Section 49.154(b).
(b)  If the agency in conducting the audit under Subsection
(a) determines that any receipts were used for a purpose not
described by Section 49.154(b), the agency shall refund those
receipts proportionately to each school district that purchased
attendance credit under this chapter for the year in which the
(c)  A school district that receives a refund under
Subsection (b) may use the refund to pay for teacher salaries,
district infrastructure, or academic programs.
SECTION 3.  This Act takes effect September 1, 2025.