Monitoring the Session

HB 2866

School Accountability Bill Makes Suing The State A Takeover Trigger

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Terri Leo WilsonRHouse 23
Both charges, and why
Dragnet

THE CAPTION

…“proceedings challenging the operations of the public school system.”

Caption, introduced version (I)

THE TEXT

“a school district initiates or maintains an action”…

Bill text, introduced version (I)

The caption pitches suits challenging school system operations, but the new takeover trigger covers any suit a district brings against the state or any state agency or officer, whatever the subject. A district suing any agency over a matter unrelated to school operations would still qualify for a conservator.

Dragnet
Delayed start

THE TEXT

…“ratings beginning with the 2027-2028 school year.”

Bill text, introduced version (I)

The new indicator rules, rigor increases and industry certification list do not apply until the 2027-2028 ratings, which come after the November 2026 election.

Delayed start

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to public school accountability and actions and other proceedings challenging the operations of the public school system.

Caption from analyzed text · version I.

Summary

Sue any state agency, over anything, and the district qualifies for a conservator.

The bill rewrites the Texas school A-F rating system, lets the commissioner drop indicators judged unreliable, raises rating standards every fifth year starting in 2027-2028, and applies several rule changes back to the 2022-2023 school year. It also targets school districts and charter schools that sue the state: such a suit becomes grounds for state takeover steps, districts that fought the 2022-2023 or 2023-2024 ratings face a board of managers if a campus's rating for the year they sued or joined the suit would have brought commissioner action under Section 39A.111, or another intervention if it would have been the campus's second, third or fourth straight unacceptable year, and public money cannot pay for most suits against the state. Anyone who claims the education agency or its boards acted beyond their power must put attorney payments in escrow until final judgment, and unspent money goes to the state school fund if the claimant loses.

Corrected Oct 26, 2026 · We checked this summary against the bill text and fixed it.

Labels

Labels: DOORSTOP: 5,058 WORDS. The bill as filed runs 5,058 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).NEVER GOT A HEARING. Filed Feb 14, 2025 and referred to the House Public Education committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB2866 · 2025-02-14

SOLD BY

ITEM

relating to public school accountability and actions and other proceedings challenging the operations of the public school system.

WHAT IT DOES

Sue any state agency, over anything, and the district qualifies for a conservator.

The bill rewrites the Texas school A-F rating system, lets the commissioner drop indicators judged unreliable, raises rating standards every fifth year starting in 2027-2028, and applies several rule changes back to the 2022-2023 school year. It also targets school districts and charter schools that sue the state: such a suit becomes grounds for state takeover steps, districts that fought the 2022-2023 or 2023-2024 ratings face a board of managers if a campus's rating for the year they sued or joined the suit would have brought commissioner action under Section 39A.111, or another intervention if it would have been the campus's second, third or fourth straight unacceptable year, and public money cannot pay for most suits against the state. Anyone who claims the education agency or its boards acted beyond their power must put attorney payments in escrow until final judgment, and unspent money goes to the state school fund if the claimant loses.

Corrected Oct 26, 2026 · We checked this summary against the bill text and fixed it.

CHARGES

[x] DRAGNETanalysis confidence 55%

THE CAPTION

…“proceedings challenging the operations of the public school system.”

Caption, introduced version (I)

THE TEXT

“a school district initiates or maintains an action”…

Bill text, introduced version (I)

The caption pitches suits challenging school system operations, but the new takeover trigger covers any suit a district brings against the state or any state agency or officer, whatever the subject. A district suing any agency over a matter unrelated to school operations would still qualify for a conservator.

[x] DELAYED STARTanalysis confidence 50%

THE TEXT

…“ratings beginning with the 2027-2028 school year.”

Bill text, introduced version (I)

The new indicator rules, rigor increases and industry certification list do not apply until the 2027-2028 ratings, which come after the November 2026 election.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Public Education
FILED UNDER

SPEECH AND LAWFARE

THE TEXT

…“action made to the claimant's attorney in an escrow account.”

Bill text, introduced version (I)

The bill makes anyone claiming the education agency or its boards acted beyond their power escrow attorney payments, and it punishes districts that sue the state with conservators, boards of managers and funding limits.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$525,040.28

Texans for Lawsuit Reform PAC

$525,040.28

Cash
$65,000.00
Paid by others
$460,040.28
Total
$525,040.28
advertising $253,649.00mail $170,891.28polling $35,500.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Aug 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100994567, 101011936, 101042004, 101042009, 101070547.

Texas Conservative Majority PAC$50,000.00

Texas Conservative Majority PAC

$50,000.00

Cash
$0.00
Paid by others
$50,000.00
Total
$50,000.00
canvassing $50,000.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101042009.

Dustin Burrows Campaign$45,000.00

Dustin Burrows Campaign

$45,000.00

Cash
$35,000.00
Paid by others
$10,000.00
Total
$45,000.00
polling $10,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Dec 31, 2025 to Feb 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011936, 101028233, 101042004.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$525,040.28

Cash
$65,000.00
Paid by others
$460,040.28
Total
$525,040.28
advertising $253,649.00mail $170,891.28polling $35,500.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Aug 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100994567, 101011936, 101042004, 101042009, 101070547.

×

Texas Conservative Majority PAC

$50,000.00

Cash
$0.00
Paid by others
$50,000.00
Total
$50,000.00
canvassing $50,000.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101042009.

×

Dustin Burrows Campaign

$45,000.00

Cash
$35,000.00
Paid by others
$10,000.00
Total
$45,000.00
polling $10,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Dec 31, 2025 to Feb 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011936, 101028233, 101042004.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 14, 2025

03/19/2025 H Referred to Public Education: Mar 19 2025 12:35PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 11:01 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Public Education · Final status: Died in committee

Subjects

Education--Primary & Secondary--Accountability

Education--Primary & Secondary--Charter Schools

Education--School Districts

State Finances--Management & Control

EDUCATION AGENCY, TEXAS

EDUCATION, COMMISSIONER OF

Text

The text as introduced · 5,058 words

89R5299 AMF-D

By: Leo Wilson
H.B. No. 2866

A BILL TO BE ENTITLED

AN ACT

relating to public school accountability and actions and other

proceedings challenging the operations of the public school system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 7.057, Education Code, is amended by

amending Subsection (d) and adding Subsection (d-1) 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).

(d-1) Notwithstanding Subsection (d), a school district may

make an appeal under that subsection only if the district is

aggrieved by a decision of the commissioner.

SECTION 2. 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 3. Section 39.023(a-11), Education Code, is amended

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 an entity that is , as

determined by the commissioner, independent of the agency and of

any other entity that developed the assessment instrument.

SECTION 4. 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 5. 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 initially 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.

SECTION 6. 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.

SECTION 7. Section 39.054, Education Code, is amended by

amending Subsections (a), (a-3), (a-4), (a-5), and (b) and adding

Subsections (a-6), (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 on a

statewide basis.

(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 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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.

SECTION 15. 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 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 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 16. 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 17. 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 claimant 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 claimant must deposit all payments relating to the

action made to the claimant's attorney in an escrow account. The

claimant may use money deposited in the escrow account to pay the

claimant's attorney only:

(1) after:

(A) a final judgment is rendered; and

(B) all appeals are fully resolved; and

(2) if the claimant prevails in the action.

(b) A claimant shall provide money deposited in an escrow

account under this section that may not be paid to a claimant'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 18. 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 19. The heading to Section 312.003, Labor Code, is

amended to read as follows:

Sec. 312.003. INVENTORY OF CERTIFICATIONS [ CREDENTIALS AND

CERTIFICATES ].

SECTION 20. 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 21. 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.

SECTION 22. 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 23. 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 24. 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.