By: Bettencourt, et al.  S.B. No. 1962          (In the Senate - Filed March 5, 2025; March 17, 2025, read   first time and referred to Committee on Education K-16;   April 9, 2025, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 9, Nays 1; April 9, 2025,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1962 By:  Hagenbuch     A BILL TO BE ENTITLED   AN ACT     relating to the assessment of public school students, public school   accountability and actions, and proceedings challenging the   operations of the public school system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 7.056(e), Education Code, is amended to   read as follows:          (e)  Except as provided by Subsection (f), a school campus or   district may not receive an exemption or waiver under this section   from:                (1)  a prohibition on conduct that constitutes a   criminal offense;                (2)  a requirement imposed by federal law or rule,   including a requirement for special education or bilingual   education programs; or                (3)  a requirement, restriction, or prohibition   relating to:                      (A)  essential knowledge or skills under Section   28.002 or high school graduation requirements under Section 28.025;                      (B)  public school accountability as provided by   Subchapters B, C, D, and J, Chapter 39, and Chapter 39A;                      (C)  extracurricular activities under Section   33.081 [or participation in a University Interscholastic League   area, regional, or state competition under Section 33.0812];                      (D)  health and safety under Chapter 38;                      (E)  purchasing under Subchapter B, Chapter 44;                      (F)  elementary school class size limits, except   as provided by Section 25.112;                      (G)  removal of a disruptive student from the   classroom under Subchapter A, Chapter 37;                      (H)  at-risk programs under Subchapter C, Chapter   29;                      (I)  prekindergarten programs under Subchapter E,   Chapter 29;                      (J)  educator rights and benefits under   Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter   A, Chapter 22;                      (K)  special education programs under Subchapter   A, Chapter 29;                      (L)  bilingual education programs under   Subchapter B, Chapter 29; or                      (M)  the requirements for the first day of   instruction under Section 25.0811.          SECTION 2.  Section 7.057(d), Education Code, is amended to   read as follows:          (d)  A person aggrieved by an action of the agency or   decision of the commissioner under this section may appeal to a   district court in Travis County. An appeal must be made by serving   the commissioner with citation issued and served in the manner   provided by law for civil suits. The petition must state the action   or decision from which the appeal is taken. At trial, the court   shall determine all issues of law and fact, except as provided by   Section 33.081(g).          SECTION 3.  Section 11.182(b), Education Code, is amended to   read as follows:          (b)  A board of trustees may determine whether to use the   evaluation tool, except as required by Section 39A.002 [39.102(a)].          SECTION 4.  Section 39.022, Education Code, is amended to   read as follows:          Sec. 39.022.  INSTRUCTIONALLY SUPPORTIVE ASSESSMENT SYSTEM    [PROGRAM].  (a)  The agency [State Board of Education by rule] shall   create and implement a balanced and streamlined statewide   assessment system for assessment instruments administered under   this subchapter [program that is knowledge- and skills-based] to   ensure school accountability for student achievement that:                (1)  is aligned with the essential knowledge and skills   adopted by the State Board of Education under Section 28.002;                (2)  achieves the goals provided under Section 4.002;   and                (3)  prioritizes student learning.          (b)  The agency [After adopting rules under this section, the   State Board of Education] shall consider the importance of   maintaining stability in the statewide assessment system [program]   when modifying the system [adopting any subsequent modification of   the rules].          (c)  [(b)]  It is the policy of this state that the statewide   assessment system [program] be designed to:                (1)  provide assessment instruments that are as short   as practicable; and                (2)  minimize the disruption to the educational   program.          (d)  The assessment system implemented under this section   must include:                (1)  assessment instruments administered under   Sections 39.023(a), (c), and (l);                (2)  beginning-of-year and middle-of-year assessment   instruments described by Section 39.023(o-1); and                (3)  technical assistance and guidance to school   districts and open-enrollment charter schools for implementing the   assessment system, including assistance and guidance on:                      (A)  implementing a comprehensive assessment   strategy that:                            (i)  improves student performance and   promotes mastery of the essential knowledge and skills; and                            (ii)  informs educators regarding   assessment requirements; and                      (B)  reducing the assessment burden on students   and school personnel.          SECTION 5.  Subchapter B, Chapter 39, Education Code, is   amended by adding Section 39.0225 to read as follows:          Sec. 39.0225.  TRANSITION OF ASSESSMENT SYSTEM. (a) The   agency shall transition the system for assessment instruments   administered under this subchapter to incorporate improvements   identified in reports submitted under Section 39.0236(d).          (b)  For purposes of making the transition under Subsection   (a), the agency shall adopt or develop the following assessment   instruments to be administered beginning no later than the   2027-2028 school year:                (1)  an end-of-year assessment instrument for each   subject or course for each grade level subject to assessment under   Section 39.023; and                (2)  optional beginning-of-year and middle-of-year   progress monitoring assessment instruments for each subject and   grade level subject to assessment under Sections 39.023(a)(1)   through (4).          (c)  To the extent practicable, the end-of-year assessment   instruments described by Subsection (b)(1) shall:                (1)  be shorter than the assessment instruments   administered during the 2024-2025 school year under Sections   39.023(a), (c), and (l);                (2)  be scheduled as close to the end of the school year   as practicable;                (3)  allow for results to be provided as quickly as   practicable; and                (4)  for a reading language arts assessment instrument,   include open-ended questions that:                      (A)  are administered separately; and                      (B)  scored using a process that:                            (i)  involves classroom teachers; and                            (ii)  allows for a school district or   open-enrollment charter school to submit student responses for   rescoring.          (d)  To the extent practicable, the progress monitoring   assessment instruments described by Subsection (b)(2) shall:                (1)  provide progress monitoring information related   to essential knowledge and skills for the assessed subject to   support instruction during the school year;                (2)  be designed to be predictive of, without   intervention, a student's performance on the applicable   end-of-year assessment instrument; and                (3)  serve as an optional and free benchmark assessment   tool for school districts and open-enrollment charter schools.          (e)  The agency shall provide technical assistance and   guidance to school districts and open-enrollment charter schools as   described by Section 39.022(d)(3) that, to the extent practicable,   includes strategies for districts and schools to reduce assessment   burdens not later than the beginning of the 2027-2028 school year.          (f)  Students shall continue to be assessed under the   preceding assessment program for assessment instruments   administered under this subchapter until the applicable assessment   instrument for a subject or course and grade level is replaced by an   assessment instrument adopted or developed under this section.          (g)  The agency shall conduct a performance comparison   analysis between the assessment system adopted or developed under   this section and the preceding assessment program for assessment   instruments administered under this subchapter to establish   roughly comparable standards for the issuance of performance   ratings under Section 39.054 for the school year the system adopted   or developed under this section is implemented.          (h)  This section expires September 1, 2028.          SECTION 6.  Section 39.023, Education Code, is amended by   amending Subsections (a-11), (c), (c-3), (c-8), (e), (g), (i), (l),   and (o) and adding Subsection (o-1) to read as follows:          (a-11)  Before an assessment instrument adopted or developed   under Subsection (a) may be administered under that subsection, the   assessment instrument must, on the basis of empirical evidence, be   determined to be valid and reliable by the advisory committees   established under Section 39.02302 or an entity that is, as   determined by the commissioner, independent of the agency and of   any other entity that developed the assessment instrument.          (c)  The agency shall also adopt end-of-course assessment   instruments for secondary-level courses in Algebra I, biology,   English I, English II, and United States history. The Algebra I   end-of-course assessment instrument must be administered with the   aid of technology, but may include one or more parts that prohibit   the use of technology. The English I and English II end-of-course   assessment instruments must each assess essential knowledge and   skills in both reading and writing and must provide a single score.   A school district shall comply with agency [State Board of   Education] rules regarding administration of the assessment   instruments listed in this subsection. If a student is in a special   education program under Subchapter A, Chapter 29, the student's   admission, review, and dismissal committee shall determine whether   any allowable modification is necessary in administering to the   student an assessment instrument required under this subsection.   The agency [State Board of Education] shall administer the   assessment instruments. An end-of-course assessment instrument   may be administered in multiple parts over more than one day. [The   State Board of Education shall adopt a schedule for the   administration of end-of-course assessment instruments that   complies with the requirements of Subsection (c-3).]          (c-3)  The agency shall adopt a schedule for the   administration of assessment instruments under this section for   each school year and, to the extent practicable, provide the   schedule to each school district and open-enrollment charter school   two years before the school year to which the schedule applies.  To   the extent practicable and for the purpose of mitigating local   scheduling conflicts, including University Interscholastic League   athletic competitions, the schedule adopted under this section must   establish testing windows for the administration of each assessment   instrument and allow a district or school to administer an   assessment instrument on any date selected by the district or   school that falls within the testing window for the instrument   [Except as provided by Subsection (c-7) or (c-10) or as otherwise   provided by this subsection, in adopting a schedule for the   administration of assessment instruments under this section, the   State Board of Education shall ensure that assessment instruments   administered under Subsection (a) or (c) are not administered on   the first instructional day of a week. On request by a school   district or open-enrollment charter school, the commissioner may   allow the district or school to administer an assessment instrument   required under Subsection (a) or (c) on the first instructional day   of a week if administering the assessment instrument on another   instructional day would result in a significant administrative   burden due to specific local conditions].          (c-8)  At least 25 [Beginning with the 2022-2023 school year,   not more than 75] percent of the available points on an assessment   instrument developed under Subsection (a) or (c) must [may] be   attributable to questions that are not presented in a multiple   choice format.          (e)  Under rules adopted by the agency [State Board of   Education], every third year, the agency shall release the   questions and answer keys to each assessment instrument   administered under Subsection (a), (b), (c), (d), or (l), excluding   any assessment instrument administered to a student for the purpose   of retaking the assessment instrument, after the last time the   instrument is administered for that school year. To ensure a valid   bank of questions for use each year, the agency is not required to   release a question that is being field-tested and was not used to   compute the student's score on the instrument. The agency shall   also release[, under board rule,] each question that is no longer   being field-tested and that was not used to compute a student's   score. During the 2014-2015 and 2015-2016 school years, the agency   shall release the questions and answer keys to assessment   instruments as described by this subsection each year.          (g)  The agency [State Board of Education] may adopt one   appropriate, nationally recognized, norm-referenced assessment   instrument in reading and mathematics to be administered to a   selected sample of students in the spring. If adopted, a   norm-referenced assessment instrument must be a secured test. The   state may pay the costs of purchasing and scoring the adopted   assessment instrument and of distributing the results of the   adopted instrument to the school districts. A district that   administers the norm-referenced test adopted under this subsection   shall report the results to the agency in a manner prescribed by the   commissioner.          (i)  The provisions of this section, except Subsection (d),   are subject to modification by rules adopted under Section 39.001    [39.022].  Each assessment instrument adopted under those rules and   each assessment instrument required under Subsection (d) must be   reliable and valid and must meet any applicable federal   requirements for measurement of student progress.          (l)  The agency [State Board of Education] shall adopt rules   for the administration of the assessment instruments adopted under   Subsection (a) in Spanish to emergent bilingual students in grades   three through five, as defined by Section 29.052, whose primary   language is Spanish, and who are not otherwise exempt from the   administration of an assessment instrument under Section   39.027(a)(1) or (2). Each emergent bilingual student whose primary   language is Spanish, other than a student to whom Subsection (b)   applies, may be assessed using assessment instruments in Spanish   under this subsection for up to three years or assessment   instruments in English under Subsection (a). The language   proficiency assessment committee established under Section 29.063   shall determine which students are administered assessment   instruments in Spanish under this subsection.          (o)  The agency shall adopt or develop optional interim   assessment instruments for each [subject or] course [for each grade   level] subject to an end-of-course assessment under this section.     A school district or open-enrollment charter school may [not be   required to] administer to students enrolled at the district or   school interim assessment instruments adopted or developed under   this subsection.  An interim assessment instrument:                (1)  must be:                      (A)  when possible, predictive of the   end-of-course assessment instrument for the applicable [subject   or] course [for that grade level] required under this section; and                      (B)  administered electronically; and                (2)  may not be used for accountability purposes.          (o-1)  The agency shall adopt or develop optional   beginning-of-year and middle-of-year progress monitoring   assessment instruments for each subject and grade level subject to   assessment under Sections 39.023(a)(1) through (4).  A school   district or open-enrollment charter school may administer to   students enrolled at the district or school progress monitoring   assessment instruments adopted or developed under this subsection.     A progress monitoring assessment instrument must:                (1)  provide to the district or school administering   the assessment instrument information regarding student   proficiency in the essential knowledge and skills for the assessed   subject to support instruction during the school year; and                (2)  be designed to be predictive of, without   intervention, a student's performance on the applicable   end-of-year assessment instrument.          SECTION 7.  Section 39.0238(b), Education Code, is amended   to read as follows:          (b)  The board of trustees of a school district or the   governing body of an open-enrollment charter school may consider   the dates of religious holy days or periods of observance likely to   be observed by the students enrolled in the district or school   during the period set by the agency [State Board of Education] for   the administration of assessment instruments required under   Section 39.023 in establishing:                (1)  the district's or school's calendar for that   school year; and                (2)  the instructional days within that period on which   district or school students are administered the required   assessment instruments, provided that the board of trustees or   governing body may not exclude more than two instructional days   from that period based solely on the occurrence of a single   religious holy day or period of observance.          SECTION 8.  Section 39.026, Education Code, is amended to   read as follows:          Sec. 39.026.  LOCAL OPTION. In addition to the assessment   instruments adopted and administered by the agency [and   administered by the State Board of Education], a school district   may, subject to Section 39.0263, adopt and administer   criterion-referenced or norm-referenced assessment instruments, or   both, at any grade level. A norm-referenced assessment instrument   adopted under this section must be economical, nationally   recognized, and state-approved.          SECTION 9.  The heading to Section 39.0263, Education Code,   is amended to read as follows:          Sec. 39.0263.  ADMINISTRATION OF DISTRICT-REQUIRED OR   CAMPUS-REQUIRED BENCHMARK ASSESSMENT INSTRUMENTS [TO PREPARE   STUDENTS FOR STATE-ADMINISTERED ASSESSMENT INSTRUMENTS].          SECTION 10.  Section 39.0263, Education Code, is amended by   amending Subsections (a), (b), and (c) and adding Subsection (e) to   read as follows:          (a)  In this section, "benchmark assessment instrument"   means a district-required or campus-required assessment instrument   that is administered to all or most students for a subject or course   in a particular grade level and that is not curriculum-embedded,   including an assessment instrument, such as a practice test or a   nationally norm-referenced assessment instrument, designed to   prepare students for a corresponding state-administered assessment   instrument.          (b)  Except as provided by Subsection (c), a school district   or campus may not administer to any student more than two benchmark   assessment instruments during a school year before the   administration of an end-of-year [to prepare the student for a   corresponding state-administered] assessment instrument.          (c)  The prohibition prescribed by this section does not   apply to:                (1)  the administration of a college preparation   assessment instrument, including the PSAT, the ACT-Plan, the SAT,   or the ACT, an advanced placement test, or an international   baccalaureate examination;                (2) [, or]  an independent classroom examination   designed or adopted and administered by a classroom teacher;                (3)  a diagnostic assessment included in a screening or   testing for dyslexia or a related disorder; or                (4)  an assessment instrument required under state law,   including under Chapter 28 or 29.          (e)  If the agency determines that a school district or   campus is in violation of this section, in addition to any   enforcement actions or remedies available to the agency under other   law, the agency may require the district or campus to receive   technical assistance described by Section 39.022(d)(3).          SECTION 11.  Section 39.027(b), Education Code, is amended   to read as follows:          (b)  The agency [State Board of Education] shall adopt rules   under which a dyslexic student who is not exempt under Subsection   (a) may use procedures including oral examinations if appropriate   or may be allowed additional time or the materials or technology   necessary for the student to demonstrate the student's mastery of   the competencies the assessment instruments are designed to   measure.          SECTION 12.  Section 39.028, Education Code, is amended to   read as follows:          Sec. 39.028.  COMPARISON OF STATE RESULTS TO NATIONAL   RESULTS.  The state assessment system [program] shall obtain   nationally comparative results for the subject areas and grade   levels for which criterion-referenced assessment instruments are   adopted under Section 39.023.          SECTION 13.  Section 39.029, Education Code, is amended to   read as follows:          Sec. 39.029.  MIGRATORY CHILDREN. The agency [State Board   of Education] by rule may provide alternate dates for the   administration of the assessment instruments to a student who is a   migratory child as defined by 20 U.S.C. Section 6399. The alternate   dates may be chosen following a consideration of migrant work   patterns, and the dates selected may afford maximum opportunity for   the students to be present when the assessment instruments are   administered.          SECTION 14.  Section 39.030(a), Education Code, is amended   to read as follows:          (a)  In adopting academic skills assessment instruments   under this subchapter, the agency [State Board of Education] or a   school district shall ensure the security of the instruments and   tests in their preparation, administration, and grading. Meetings   or portions of meetings held by the agency [State Board of   Education] or a school district at which individual assessment   instruments or assessment instrument items are discussed or adopted   are not open to the public under Chapter 551, Government Code, and   the assessment instruments or assessment instrument items are   confidential.          SECTION 15.  Sections 39.032(c-1) and (e), Education Code,   are amended to read as follows:          (c-1)  The standardization norms computed under Subsection   (c) shall be:                (1)  based on a national probability sample that meets   accepted standards for educational and psychological testing; and                (2)  updated at least every eight years using proven   psychometric procedures approved by the agency [State Board of   Education].          (e)  The agency [State Board of Education] shall adopt rules   for the implementation of this section and for the maintenance of   the security of the contents of all assessment instruments.          SECTION 16.  Section 39.054(b-1), Education Code, is   transferred to Section 39.052, Education Code, redesignated as   Section 39.052(b-1), Education Code, and amended to read as   follows:          (b-1)  Consideration of the effectiveness of district   programs under Subsection (b)(2)(B) [Section 39.052(b)(2)(B)] or   (C):                (1)  must:                      (A)  be based on data collected through the Public   Education Information Management System (PEIMS) for purposes of   accountability under this chapter; and                      (B)  include the results of assessments required   under Section 39.023; and                (2)  may be based on the results of a special   investigation conducted under Section 39.003.          SECTION 17.  Section 39.053, Education Code, is amended by   amending Subsections (a), (c), and (f) and adding Subsections   (c-4), (f-1), (f-2), (f-3), and (f-4) to read as follows:          (a)  The commissioner shall adopt a set of indicators of the   quality of learning and achievement, including the indicators under   Subsection (c). The commissioner periodically shall review the   indicators for the consideration of appropriate revisions and may,   if the commissioner determines an indicator otherwise required   under this subchapter is not valid or reliable, exclude the   indicator from the set of indicators adopted under this section.          (c)  School districts and campuses must be evaluated based on   three domains of indicators of achievement adopted under this   section that include:                (1)  in the student achievement domain, indicators of   student achievement that must include:                      (A)  for evaluating the performance of districts   and campuses generally:                            (i)  an indicator that accounts for the   results of assessment instruments required under Sections   39.023(a), (c), and (l), as applicable for the district and campus,   including the results of assessment instruments required for   graduation retaken by a student, aggregated across grade levels by   subject area, including:                                  (a)  for the performance standard   determined by the commissioner under Section 39.0241(a), the   percentage of students who performed satisfactorily on the   assessment instruments, aggregated across grade levels by subject   area; and                                  (b)  for the college readiness   performance standard as determined under Section 39.0241, the   percentage of students who performed satisfactorily on the   assessment instruments, aggregated across grade levels by subject   area; and                            (ii)  an indicator that accounts for the   results of assessment instruments required under Section   39.023(b), as applicable for the district and campus, including the   percentage of students who performed satisfactorily on the   assessment instruments, as determined by the performance standard   adopted by the agency, aggregated across grade levels by subject   area; and                      (B)  for evaluating the performance of high school   campuses and districts that include high school campuses,   indicators that account for:                            (i)  students who satisfy the Texas Success   Initiative (TSI) college readiness benchmarks prescribed by the   Texas Higher Education Coordinating Board under Section 51.334 on   an assessment instrument in reading or mathematics designated by   the coordinating board under that section;                            (ii)  students who satisfy relevant   performance standards on advanced placement tests or similar   assessments;                            (iii)  students who earn dual course credits   in the dual credit courses;                            (iv)  students who demonstrate military   readiness:                                  (a)  through verified enlistment   [enlist] in the armed forces of the United States or the Texas   National Guard; or                                  (b)  by achieving a passing score set   by the commissioner on the Armed Services Vocational Aptitude   Battery Test and successfully completing a Junior Reserve Officer   Training Corps program;                            (v)  students who earn industry   certifications;                            (vi)  students admitted into postsecondary   industry certification programs that require as a prerequisite for   entrance successful performance at the secondary level;                            (vii)  students whose successful completion   of a course or courses under Section 28.014 indicates the student's   preparation to enroll and succeed, without remediation, in an   entry-level general education course for a baccalaureate degree or   associate degree;                            (viii)  students who successfully met   standards on a composite of indicators that through research   indicates the student's preparation to enroll and succeed, without   remediation, in an entry-level general education course for a   baccalaureate degree or associate degree;                            (ix)  high school graduation rates, computed   in accordance with standards and definitions adopted in compliance   with the Every Student Succeeds Act (20 U.S.C. Section 6301 et seq.)   subject to the exclusions provided by Subsections (g), (g-1),   (g-2), (g-3), and (g-4);                            (x)  students who successfully completed an   OnRamps dual enrollment course;                            (xi)  students who successfully completed a   practicum or internship approved by the State Board of Education;                            (xii)  students who are awarded an associate   degree; and                            (xiii)  students who successfully completed   a program of study in career and technical education;                (2)  in the school progress domain, indicators for   effectiveness in promoting student learning, which must include:                      (A)  for assessment instruments, including   assessment instruments under Subdivisions (1)(A)(i) and (ii), the   percentage of students who met the standard for improvement, as   determined by the commissioner; and                      (B)  for evaluating relative performance, the   performance of districts and campuses compared to similar districts   or campuses; and                (3)  in the closing the gaps domain, the use of   disaggregated data to demonstrate the differentials among students   from different racial and ethnic groups, socioeconomic   backgrounds, and other factors, including:                      (A)  students formerly receiving special   education services;                      (B)  students continuously enrolled; and                      (C)  students who are mobile.          (c-4)  The agency shall study the college, career, and   military readiness indicators adopted under Subsection (c) to   determine the correlation of each indicator with postsecondary   success, including the correlation of industry certifications with   wages and available jobs. The value assigned to each indicator must   be:                (1)  based on the strength of the indicator's   correlation with successful outcomes; and                (2)  updated in accordance with Subsection (f-1).          (f)  Annually, the commissioner shall define and may modify   the state standards [standard for the current school year] for each   [achievement] indicator adopted under this subchapter in   [section.  In] consultation with educators, parents, and business   and industry representatives, as necessary. The [, the]   commissioner shall increase the rigor by which the commissioner   determines the overall performance ratings under Section 39.054(a)   [establish and modify standards] to continuously improve student   performance to, not later than the 15th year after the date the   commissioner modifies the performance standards under Subsection   (f-1), achieve the goals of:                (1)  eliminating achievement gaps based on race,   ethnicity, and socioeconomic status; and                (2)  ensuring [to ensure] this state ranks nationally   [is a national leader] in the top five states in preparing students   for postsecondary success and on the National Assessment of   Educational Progress or its successor assessment.          (f-1)  Beginning with the indicators adopted for the   2027-2028 school year and as required to meet the goals under   Subsection (f), the commissioner shall increase the scores needed   to achieve performance standards on indicators adopted under this   subchapter only every fifth school year unless an indicator adopted   under Subsection (c) requires adjustment before that school year to   ensure consistency of performance standards.          (f-2)  To the extent practicable, for each of the two school   years preceding a school year the commissioner increases a score   under Subsection (f-1), the commissioner shall report, in a manner   that can be reviewed by school administrators, the overall   performance of school districts and campuses under that increased   score.          (f-3)  In reporting the performance of school districts and   campuses on indicators adopted under this subchapter for a school   year in which the score needed to achieve performance standards on   one or more of those indicators was increased under Subsection   (f-1), the commissioner shall include in the report an   informational report on the performance of districts and campuses   during the preceding school year under the increased score.          (f-4)  Notwithstanding Subsection (f), the commissioner may   define state standards for an indicator adopted under this   subchapter for multiple school years provided that the commissioner   annually affirms that those standards are applicable to the current   school year.  The commissioner is not required to adopt the   affirmation described by this subsection by rule.          SECTION 18.  Subchapter C, Chapter 39, Education Code, is   amended by adding Section 39.0531 to read as follows:          Sec. 39.0531.  INDUSTRY CERTIFICATION LIST.  (a)  The agency   shall maintain a list of industry certifications that are eligible   for purposes of Section 39.053(c)(1)(B)(v). In developing the   list, the agency shall consider the inventory of   industry-recognized certifications developed under Section   312.003, Labor Code.  The certifications must:                (1)  be aligned to a program of study that, according to   labor market data, prepares students for high-wage, high-skill,   in-demand occupations;                (2)  allow students to demonstrate mastery of the   skills required for occupations within an approved program of   study; and                (3)  be obtained through an assessment of the knowledge   and skills provided by or determined by an independent, third-party   certifying entity using predetermined standards for knowledge,   skills, and competencies.          (b)  The agency shall review the eligibility of industry   certifications under Subsection (a), including whether the   programs of study for those certifications still meet the   requirements under that subsection:                (1)  in consultation with the advisory council   established under Chapter 312, Labor Code; and                (2)  to the extent practicable, concurrently with the   modification of performance standards under Section 39.053(f-1).          (c)  If, after reviewing an industry certification under   Subsection (b), the agency determines the certification is no   longer eligible for purposes of Section 39.053(c)(1)(B)(v) and   should be removed from the list maintained under Subsection (a),   the agency shall, to the extent practicable, post on the agency's   Internet website information regarding the removal of the   certification not later than two years before the date the agency   intends to remove the certification from the list.          (d)  During the three years following an agency's   determination under Subsection (c) that an industry certification   is no longer eligible for purposes of Section 39.053(c)(1)(B)(v), a   school district may receive the benefit of achievement indicators   based on that industry certification for purposes of Section   39.053(c) only for a cohort of students who:                (1)  were participating in the program of study aligned   with that certification during the school year the agency   determines the certification is no longer eligible; and                (2)   earn the certification within the three-year   period.          SECTION 19.  Section 39.054, Education Code, is amended by   amending Subsections (a), (a-3), (a-4), (a-5), and (b) and adding   Subsections (a-6), (a-7), (c), and (d) to read as follows:          (a)  Except as provided by Subsection (a-4), the   commissioner shall adopt rules to evaluate school district and   campus performance and, each school year, assign each district and   campus an overall performance rating of A, B, C, D, or F. In   addition to the overall performance rating, each school year, the   commissioner shall assign each district and campus a separate   domain performance rating of A, B, C, D, or F for each domain under   Section 39.053(c). An overall or domain performance rating of A   reflects exemplary performance. An overall or domain performance   rating of B reflects recognized performance. An overall or domain   performance rating of C reflects acceptable performance. An   overall or domain performance rating of D reflects performance that   needs improvement. An overall or domain performance rating of F   reflects unacceptable performance. A district may not receive an   overall or domain performance rating of A if the district includes   any campus with a corresponding overall or domain performance   rating of D or F. If a school district has been approved under   Section 39.0544 to assign campus performance ratings and the   commissioner has not assigned a campus an overall performance   rating of D or F, the commissioner shall assign the campus an   overall performance rating based on the school district assigned   performance rating under Section 39.0544.          (a-3)  Except as provided by Subsection (c), not [Not] later   than August 15 of each year, the following information shall be made   publicly available as provided by rules adopted under this     section:                (1)  the performance ratings for each school district   and campus; and                (2)  if applicable, the number of consecutive school   years of unacceptable performance ratings for each district and   campus.          (a-4)  Notwithstanding any other law and except as provided   by Subsection (a-6), the commissioner may assign a school district   or campus an overall performance rating of "Not Rated" if the   commissioner determines that the assignment of a performance rating   of A, B, C, D, or F would be inappropriate because:                (1)  the district or campus is located in an area that   is subject to a declaration of a state of disaster under Chapter   418, Government Code, and due to the disaster, performance   indicators for the district or campus are difficult to measure or   evaluate and would not accurately reflect quality of learning and   achievement for the district or campus;                (2)  the district or campus has experienced breaches or   other failures in data integrity to the extent that accurate   analysis of data regarding performance indicators is not possible;                (3)  the number of students enrolled in the district or   campus is insufficient to accurately evaluate the performance of   the district or campus; or                (4)  for other reasons outside the control of the   district or campus, the performance indicators would not accurately   reflect quality of learning and achievement for the district or   campus.          (a-5)  Notwithstanding any other law, an overall performance   rating of "Not Rated" is not included in calculating consecutive   school years of unacceptable performance ratings and is not   considered a break in consecutive school years of unacceptable   performance ratings for purposes of any provision of this code. Any   interventions or sanctions to which a school district or campus is   subject under Chapter 39A shall continue during a period in which   the district or campus is assigned an overall performance rating of   "Not Rated."          (a-6)  The commissioner may not assign an overall   performance rating of "Not Rated" to all school districts or all   campuses on a statewide basis.          (a-7)  If the agency makes changes to the assessment system   under Section 39.022 for assessment instruments administered under   this subchapter that require new standards for issuing performance   ratings under this section, the agency must conduct a performance   comparison analysis between the system as changed and the preceding   system to establish roughly comparable standards for issuing   performance ratings. Failure to conduct a performance comparison   analysis as required under this subsection does not prevent the   assignment of performance ratings under this section and may not be   the basis of a challenge to a performance rating assigned under this   section.          (b)  For purposes of assigning school districts and campuses   an overall and a domain performance rating under Subsection (a),   the commissioner shall, to the extent practicable, ensure that the   method used to evaluate performance is implemented in a manner that   provides the mathematical possibility that all districts and   campuses receive an A rating.          (c)  The commissioner shall make the information under   Subsection (a-3) available as soon as reasonably possible in years   in which the standards are modified or recalibrated or in which a   new assessment instrument is offered.          (d)  Failure to assign a performance rating to a school   district or campus before the deadline provided by Subsection (a-3)   does not invalidate the performance rating assigned to the district   or campus or any resulting intervention or sanction imposed on the   district or campus.          SECTION 20.  Section 39.0541, Education Code, is amended to   read as follows:          Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS.  The   commissioner may adopt indicators and standards under this   subchapter at any time [during a school year] before issuing the   evaluation of a school district or campus.          SECTION 21.  Section 39.0542, Education Code, is amended by   amending Subsection (a) and adding Subsection (d) to read as   follows:          (a)  The [Each school year, the] commissioner shall provide   each school district a document in a simple, accessible format that   explains the accountability performance measures, methods, and   procedures that will be applied [for that school year] in assigning   each school district and campus a performance rating under Section   39.054.          (d)  Failure to provide the document described by Subsection   (a) does not prevent the assignment of performance ratings under   Section 39.054 and may not be the basis of a challenge to a   performance rating assigned under that section.          SECTION 22.  Section 39.151(e), Education Code, is amended   to read as follows:          (e)  A school district or open-enrollment charter school may   not challenge on any basis, including a lack of commissioner or   agency authority, an agency decision relating to an academic or   financial accountability rating under this chapter, including a   decision relating to a determination of consecutive school years of   unacceptable performance ratings, in another proceeding unless    [if] the district or school has exhausted the district's or school's   remedies [had an opportunity to challenge the decision] under this   section.          SECTION 23.  Section 39.201(a), Education Code, is amended   to read as follows:          (a)  The [Not later than August 8 of each year, the]   commissioner shall award distinction designations for outstanding   performance as provided by this subchapter concurrently with the   assignment of performance ratings under Section 39.054. A   distinction designation awarded to a district or campus under this   subchapter shall be referenced directly in connection with the   performance rating assigned to the district or campus and made   publicly available together with the performance ratings as   provided by rules adopted under Section 39.054 [39.054(a)].          SECTION 24.  Subchapter H, Chapter 39, Education Code, is   amended by adding Section 39.231 to read as follows:          Sec. 39.231.  LOCAL ACCOUNTABILITY GRANT PROGRAM. (a) From   money appropriated or otherwise available for the purpose, the   agency shall establish a grant program with capacity to assist at   least one school district per education service center region in   developing a local accountability system that complies with the   requirements of Section 39.0544.          (b)  The commissioner shall adopt rules to implement this   section.          SECTION 25.  Section 39A.001, Education Code, is amended to   read as follows:          Sec. 39A.001.  GROUNDS FOR COMMISSIONER ACTION. The   commissioner shall take any of the actions authorized by this   subchapter to the extent the commissioner determines necessary if:                (1)  a school district does not satisfy:                      (A)  the accreditation criteria under Section   39.052;                      (B)  the academic performance standards under   Section 39.053 or 39.054; or                      (C)  any financial accountability standard as   determined by commissioner rule; [or]                (2)  the commissioner considers the action to be   appropriate on the basis of a special investigation under Section   39.003; or                (3)  a school district initiates or maintains an action   or proceeding against the state or an agency or officer of the   state.          SECTION 26.  Subchapter A, Chapter 39A, Education Code, is   amended by adding Section 39A.008 to read as follows:          Sec. 39A.008.  INTERVENTION RELATED TO SCHOOL DISTRICT OR   OPEN-ENROLLMENT CHARTER SCHOOL ACTION OR PROCEEDING AGAINST STATE.     (a)  This section applies to a school district or open-enrollment   charter school subject to commissioner action under Section   39A.001(3).          (b)  The commissioner shall appoint a conservator to a school   district or open-enrollment charter school to which this section   applies.          (c)  The conservator appointed under Subsection (b) shall   require the school district or open-enrollment charter school to   demonstrate, by a deadline established by the conservator, that the   district or school is in compliance with Sections 45.105(c-1) and   45.1051.  If the conservator determines that the district or school   is not in compliance with those sections, the conservator shall   order the district or school to, as applicable:                (1)  withdraw from the action or proceeding; or                (2)  take the necessary actions to come into compliance   with Section 45.1051.          (d)  If a school district or open-enrollment charter school   fails to comply with an order by the conservator by the deadline   established by the conservator, the commissioner may:                (1)  for a school district, appoint a board of managers   to oversee the operations of the district; or                (2)  for an open-enrollment charter school, order   reconstitution of the school's governing board.          (e)  An action taken or decision made by the commissioner or   a conservator under this section is final and not subject to appeal   under Section 7.057, Chapter 39, or this chapter.          SECTION 27.  Subchapter Z, Chapter 39A, Education Code, is   amended by adding Sections 39A.908 and 39A.909 to read as follows:          Sec. 39A.908.  INTERVENTIONS AND SANCTIONS WHILE ASSIGNMENT   OF PERFORMANCE RATINGS ENJOINED. (a)  Notwithstanding any other   law, during a period in which the agency is enjoined from assigning   performance ratings to a school district, open-enrollment charter   school, or district or school campus, any previously imposed   interventions or sanctions to which the district, school, or campus   is subject shall continue throughout that period.          (b)  As soon as practicable after the dissolution of an   injunction described by Subsection (a), the agency shall:                (1)  assign performance ratings for each school year   and to each school district, open-enrollment charter school, and   district or school campus for which the agency was enjoined from   assigning performance ratings; and                (2)  as applicable, impose any appropriate   interventions or sanctions authorized under this chapter based on   the ratings assigned under Subdivision (1).          (c)  Notwithstanding any other law, if the agency is   permanently enjoined from assigning performance ratings to a school   district, open-enrollment charter school, or district or school   campus for a school year, the agency shall consider the district,   school, or campus to have received a "Not Rated" rating for that   school year for purposes of:                (1)  calculating consecutive years of performance; and                (2)  determining whether to impose an intervention or   sanction authorized under this chapter.          (d)  To ensure the expeditious implementation of   interventions or sanctions under this chapter, the agency may   modify or waive a deadline or time frame required by law or agency   rule applicable to the assignment of performance ratings for a   school year for which the agency was enjoined from assigning   performance ratings.          (e)  Except as provided by Subsection (f) and Section   39A.909, the agency shall impose an intervention or sanction   described by Subsection (b)(2) or (c)(2) as required by law unless   the intervention or sanction, as determined by the commissioner:                (1)  has been superseded by a subsequent intervention   or sanction; or                (2)  may be removed based on the subsequent performance   of a school district, open-enrollment charter school, or district   or school campus.          (f)  The commissioner shall impose an intervention described   by Section 12.115(c), 39A.004, or 39A.111, as applicable, on a   school district, open-enrollment charter school, or district or   school campus if the district, school, or campus would have been   subject to commissioner action under the applicable section based   on the performance rating of the district, school, or campus for a   school year for which the agency was enjoined from assigning   performance ratings, regardless of the performance of the district,   school, or campus in a subsequent school year.          (g)  The commissioner shall revoke a charter holder's   charter for an open-enrollment charter school for which the charter   holder received a charter renewal based on the absence of a   performance rating for a school year for which the agency was   enjoined from assigning a performance rating if, after the   assignment of performance ratings for that year, the charter would   not have been renewed under Section 12.1141(d), regardless of the   performance of the school in a subsequent school year.          Sec. 39A.909.  INTERVENTIONS OR SANCTIONS RELATED TO   2022-2023 OR 2023-2024 SCHOOL YEAR PERFORMANCE RATINGS.  (a)  The   commissioner shall appoint a board of managers to govern a school   district or open-enrollment charter school as provided by Section   39A.202 if the district or school:                (1)  brought or joined an action or proceeding to   prevent the implementation of the public school accountability   system under Chapter 39 for the 2022-2023 or 2023-2024 school year;   and                (2)  includes a campus that, based on the campus's   performance rating for the school year in which the district or   school brought or joined the action or proceeding described by   Subdivision (1), would have been subject to commissioner action   under Section 39A.111.          (b)  Notwithstanding any other law, the commissioner shall   impose an intervention described by Section 39A.107(c) on a school   district or open-enrollment charter school if the district or   school:                (1)  brought or joined an action or proceeding to   prevent the implementation of the public school accountability   system under Chapter 39 for the 2022-2023 and 2023-2024 school   years; and                (2)  includes a campus that, based on the campus's   performance rating for the school year in which the district or   school brought or joined the action or proceeding described by   Subdivision (1), would have constituted the second, third, or   fourth consecutive year of unacceptable performance.          (c)  The commissioner shall impose an intervention described   by Section 12.115(c), 39A.004, or 39A.111, as applicable, on a   school district, open-enrollment charter school, or district or   school campus if the district, school, or campus would have been   subject to commissioner action under the applicable section based   on the performance rating of the district, school, or campus for the   2022-2023 or 2023-2024 school year, regardless of the performance   of the district, school, or campus in a subsequent school year.          (d)  The commissioner shall revoke a charter holder's   charter for an open-enrollment charter school for which the charter   holder received a charter renewal based on the absence of a   performance rating for the 2022-2023 or 2023-2024 school year if,   after the assignment of performance ratings for those years, the   charter would not have been renewed under Section 12.1141(d),   regardless of the performance of the school in a subsequent school   year.          SECTION 28.  Section 45.105(c-1), Education Code, is amended   to read as follows:          (c-1)  Notwithstanding any other law, federal, state, or   local funding, including funding under Chapters 46, 48, and 49,   [Funds described by Subsection (c)] may not be used to initiate or   maintain any action or proceeding against the state or an agency or   officer of the state, including an action or proceeding that   includes a claim of ultra vires conduct [arising out of a decision,   order, or determination that is final and unappealable under a   provision of this code], except that funds may be used for an action   or proceeding that is specifically authorized by a provision of   this code or by Section 2001.038, Government Code [a rule adopted   under this code and that results in a final and unappealable   decision, order, or determination].          SECTION 29.  Subchapter E, Chapter 45, Education Code, is   amended by adding Section 45.1051 to read as follows:          Sec. 45.1051.  LIMITATION ON ATTORNEY PAYMENTS FOR CERTAIN   ACTIONS. (a) If a school district or open-enrollment charter   school brings an action against the agency, the State Board of   Education, or the State Board for Educator Certification or an   agent or officer of those entities that alleges ultra vires conduct   by the entity or an agent or officer of the entity, the district or   school must deposit all payments relating to the action made to the   district's or school's attorney in an escrow account. The district   or school may use money deposited in the escrow account to pay the   district's or school's attorney only:                (1)  after:                      (A)  a final judgment is rendered; and                      (B)  all appeals are fully resolved; and                (2)  if the district or school prevails in the action.          (b)  A school district or open-enrollment charter school   shall provide money deposited in an escrow account under this   section that may not be paid to the district's or school's attorney   under Subsection (a) after the rendering of a final judgment and the   resolution of all appeals to the state for deposit in the foundation   school fund.          (c)  This section may not be interpreted to authorize an   action not otherwise authorized by law.          SECTION 30.  Section 22A.001(a), Government Code, is amended   to read as follows:          (a)  The attorney general may petition the chief justice of   the supreme court to convene a special three-judge district court   in any suit filed in a district court in this state in which this   state or a state officer or agency is a defendant in a claim that:                (1)  challenges the finances or operations of this   state's public school system, including challenges to the   implementation of the public school accountability system under   Chapter 39, Education Code; or                (2)  involves the apportionment of districts for the   house of representatives, the senate, the State Board of Education,   or the United States Congress, or state judicial districts.          SECTION 31.  The heading to Section 312.003, Labor Code, is   amended to read as follows:          Sec. 312.003.  INVENTORY OF CERTIFICATIONS [CREDENTIALS AND   CERTIFICATES].          SECTION 32.  Sections 312.003(a), (b), (c), and (d), Labor   Code, are amended to read as follows:          (a)  The advisory council shall develop an inventory of   industry-recognized certifications [credentials and certificates]   that may be earned by a public high school student through a career   and technology education program and that:                (1)  are aligned to state and regional workforce needs;   [and]                (2)  serve as an entry point to middle- and high-wage   jobs; and                (3)  meet the requirements of Section 39.0531(a),   Education Code.          (b)  The inventory must include for each certification   [credential or certificate]:                (1)  the associated career cluster;                (2)  the awarding entity;                (3)  the level of education required and any additional   requirements for the certification [credential or certificate];                (4)  any fees for obtaining the certification   [credential or certificate]; and                (5)  the average wage or salary for jobs that require or   prefer the certification [credential or certificate].          (c)  In developing the inventory, the advisory council may   consult with local workforce boards, the Texas Workforce Investment   Council, the Texas Economic Development and Tourism Office, the   Texas Education Agency, and the Texas Higher Education Coordinating   Board.          (d)  The advisory council shall establish a process for   developing the inventory, including the criteria for the inclusion   of a certification [credential or certificate] in the inventory.          SECTION 33.  (a)  Section 15, Chapter 925 (S.B. 1566), Acts   of the 85th Legislature, Regular Session, 2017, which amended   Section 39.102(a), Education Code, is repealed.          (b)  The following provisions of the Education Code are   repealed:                (1)  Section 33.0812; and                (2)  Sections 39.023(a-4), (c-7), and (c-10).          SECTION 34.  A rule of the State Board of Education under   Sections 39.022, 39.029, and 39.032(e), Education Code, that is in   effect on the effective date of this Act remains in effect until   changed by the commissioner of education in accordance with those   sections as amended by this Act.          SECTION 35.  The changes in law made by Sections   39.023(a-11), 39.053(a), 39.054, 39.0541, and 39.0542, Education   Code, as amended by this Act, apply to an action or determination   related to public school accountability and accountability ratings   beginning with the 2022-2023 school year, regardless of whether the   action or determination occurred before, on, or after the effective   date of this Act.          SECTION 36.  Section 39.023(o-1), Education Code, as added   by this Act, applies beginning with the 2027-2028 school year.          SECTION 37.  The changes in law made by Section 39.053,   Education Code, as amended by this Act, and Section 39.0531,   Education Code, as added by this Act, apply to accountability   ratings beginning with the 2027-2028 school year.          SECTION 38.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.   If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2025.     * * * * *