Relating to an annual audit of attendance credit purchased by a school district and the refund of attendance credit used for a prohibited purpose.

HB 4190 requires an annual audit of attendance credit purchased by Texas school districts to verify funds were used only for approved purposes (foundation school program aid). If the audit finds funds were misused, the state agency must refund the misused amount proportionally to each affected school district. School districts receiving a refund may use the money for teacher salaries, district infrastructure, or academic programs. The bill applies to all school districts that buy attendance credit under Texas Education Code Chapter 49 and takes effect September 1, 2025.