BILL ANALYSIS

H.B. 3631

By: Hunter

Public Education

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that public school districts located in coastal Texas counties face substantial financial challenges due to the high cost of windstorm and hail insurance that strains district budgets, particularly for those required to make recapture payments under the public school finance system. H.B. 3631 seeks to reduce the financial burden on coastal school districts by allowing them to apply the cost of windstorm and hail insurance as a credit against their required recapture payments.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3631 amends the Education Code to reduce the total amount of attendance credit a public school district that is located in a first tier coastal county or second tier coastal county is required to purchase for any school year by an amount equal to the amount of money spent by the district in the preceding school year to pay for the cost of windstorm and hail insurance. The bill requires such a reduction to be made after making any reduction to which the district is entitled under statutory provisions relating to credit for appraisal costs or another statutory provision relating to options for local revenue levels in excess of entitlement. The bill defines "first tier coastal county" and "second tier coastal county" by reference to the Insurance Code.

EFFECTIVE DATE

September 1, 2025.