SB 1894

relating to a transparency review and report on attendance credit
under the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 49, Education Code, is
amended by adding Section 49.159 to read as follows:
Sec. 49.159.  ATTENDANCE CREDIT TRANSPARENCY REVIEW AND
REPORT.  (a) The agency, in collaboration with the state auditor,
shall conduct a comprehensive review of attendance credit purchased
under this subchapter. The review must include an explanation of:
(1)  the calculation method used to determine the cost
(2)  the agency's process for collecting purchased
(3)  how the receipts of each school district's
attendance credit are distributed and the purposes for which the
receipts are used, including identifying which school districts are
receiving the receipts and in what amounts.
(a-1)  Not later than December 1, 2026, the agency, in
collaboration with the state auditor, shall prepare and submit an
initial report summarizing the findings of the review conducted
(3)  the speaker of the house of representatives; and
(4)  the chair of each standing legislative committee
with primary jurisdiction over primary and secondary education.
(a-2)  Subsection (a-1) and this subsection expire September
(b)  Not later than December 1 of each even-numbered year,
the agency shall prepare and submit to the governor, the lieutenant
governor, the speaker of the house of representatives, and the
chair of each standing legislative committee with primary
jurisdiction over primary and secondary education a report on
attendance credit under this subchapter during the preceding two
state fiscal years. The report must include:
(1)  an explanation of any material changes to the
calculation method or process described by Subsection (a)(1) or
(2)  an explanation of how the receipts of each school
district's attendance credit are distributed and the purposes for
which the receipts are used, including any change in the school
districts receiving the receipts and the amounts received; and
(3)  a summary of any other developments the agency
considers relevant to maintaining the transparency of the process
for collecting and distributing attendance credit under this
(c)  A report required by this section must:
(1)  be presented in a format that is easily
understandable by school districts, policymakers, and members of
(2)  provide sufficient information for each school
district to verify the district's attendance credit is correctly
calculated and appropriately allocated in accordance with Section
(3)  be published on the agency's Internet website.
SECTION 2.  Not later than December 1, 2028, the Texas
Education Agency shall submit its initial report required by
Section 49.159(b), Education Code, as added by this Act.
SECTION 3.  This Act takes effect September 1, 2025.