BILL ANALYSIS Senate Research Center S.B. 1635 89R15181 MEW-D By: Hinojosa, Adam; Middleton Education K-16 4/14/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Coastal school districts in Texas are increasingly burdened by rising insurance costs, particularly for windstorm and hail coverage. These escalating expenses not only inflate operational costs but also constrain budgets for critical areas such as teacher salaries, building maintenance, and facility renovations. To alleviate this financial strain, S.B. 1635 proposes a mechanism to offset the insurance costs incurred by certain school districts. Specifically, S.B. 1635 aims to provide a credit against required recapture paymentsfunds that property-wealthy districts remit to the state to support property-poor districtsfor the expenses related to windstorm and hail insurance. As proposed, S.B. 1635 amends current law relating to a credit against required recapture payments for certain school districts for the cost of windstorm and hail insurance under the public school finance system. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D, Chapter 49, Education Code, by adding Section 49.1573, as follows: Sec. 49.1573. CREDIT FOR WINDSTORM AND HAIL INSURANCE COSTS. (a) Provides that this section applies only to a school district that is located in a first tier coastal county or second tier coastal county, as those terms are defined by Section 2210.003 (General Definitions), Insurance Code. (b) Provides that the total amount required under Section 49.153 (Cost) for a school district to which this section applies to purchase attendance credit under Subchapter D (Purchase of Attendance Credit) for any school year is reduced 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. (c) Requires that a reduction under Subsection (b) be made after making any reduction to which the district is entitled under Section 49.157 (Credit for Appraisal Costs) or another provision of Chapter 49 (Options for Local Revenue Levels in Excess of Entitlement). SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1635
89R15181 MEW-D By: Hinojosa, Adam; Middleton
Education K-16
4/14/2025
As Filed
Senate Research Center
S.B. 1635
89R15181 MEW-D
By: Hinojosa, Adam; Middleton
Education K-16
4/14/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Coastal school districts in Texas are increasingly burdened by rising insurance costs, particularly for windstorm and hail coverage. These escalating expenses not only inflate operational costs but also constrain budgets for critical areas such as teacher salaries, building maintenance, and facility renovations.
To alleviate this financial strain, S.B. 1635 proposes a mechanism to offset the insurance costs incurred by certain school districts. Specifically, S.B. 1635 aims to provide a credit against required recapture paymentsfunds that property-wealthy districts remit to the state to support property-poor districtsfor the expenses related to windstorm and hail insurance.
As proposed, S.B. 1635 amends current law relating to a credit against required recapture payments for certain school districts for the cost of windstorm and hail insurance under the public school finance system.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter D, Chapter 49, Education Code, by adding Section 49.1573, as follows:
Sec. 49.1573. CREDIT FOR WINDSTORM AND HAIL INSURANCE COSTS. (a) Provides that this section applies only to a school district that is located in a first tier coastal county or second tier coastal county, as those terms are defined by Section 2210.003 (General Definitions), Insurance Code.
(b) Provides that the total amount required under Section 49.153 (Cost) for a school district to which this section applies to purchase attendance credit under Subchapter D (Purchase of Attendance Credit) for any school year is reduced 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.
(c) Requires that a reduction under Subsection (b) be made after making any reduction to which the district is entitled under Section 49.157 (Credit for Appraisal Costs) or another provision of Chapter 49 (Options for Local Revenue Levels in Excess of Entitlement).
SECTION 2. Effective date: September 1, 2025.