TITLE 19. EDUCATION
PART 2. TEXAS EDUCATION AGENCY
CHAPTER 61. SCHOOL DISTRICTS
SUBCHAPTER
A.
The State Board of Education (SBOE) adopts new §61.4, concerning school district boards of trustees. The new section is adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1231) and will not be republished. The new section reflects changes made by Senate Bill (SB) 204, 89th Texas Legislature, 2025, to the SBOE's duty to provide training courses for independent school district trustees.
REASONED JUSTIFICATION: Texas Education Code (TEC), §11.159, Member Training and Orientation, requires the SBOE to provide a training course for school board trustees. Chapter 61, School Districts, Subchapter A, Board of Trustees Relationship, most recently amended effective August 25, 2025, addresses this statutory requirement. School board trustee training under current SBOE rule includes a local school district orientation session; a basic orientation to the TEC; an annual team-building session with the local school board and the superintendent; additional hours of continuing education based on identified needs; training on evaluating student academic performance; training on identifying and reporting potential victims of sexual abuse, human trafficking, and other maltreatment of children; and training on school safety.
In November 2025, the committee discussed both an outline of the parental rights training curriculum and the new rule regarding the training. The committee also held a public hearing regarding the training curriculum.
The adopted new rule establishes the purpose of the training, specifies the timeline and number of hours required for training based on a board member's length of service, and requires that school districts maintain verification of training completion for each school board member.
The SBOE approved the new section for first reading and filing authorization at its January 30, 2026 meeting and for second reading and final adoption at its April 10, 2026 meeting.
In accordance with TEC, §7.102(f), the SBOE approved the new section for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2026-2027 school year. The earlier effective date will ensure that school districts and charter schools can adopt the revisions as soon as possible. The effective date is 20 days after filing as adopted with the Texas Register.
SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. The SBOE also provided an opportunity for registered oral and written comments at its April 2026 meeting in accordance with the SBOE board operating policies and procedures. Following is a summary of public comments received and corresponding responses.
Comment. A school board trustee commented on Texas Education Agency (TEA)-approved training providers teaching districts how to circumvent state law and expressed concern that this training would be used to teach how to circumvent parental rights, with an outcome of fewer parental rights. The commenter also requested less required training for trustees.
Response. The SBOE disagrees that this training, created by the SBOE with the assistance of TEA, will circumvent parental rights. Rather, this training is designed to support and ensure parental rights are maintained by school board members. Training organizations will not deliver this training; it will be administered through the TEA Learn platform.
Comment. A Texas community member argued that parents are divinely granted primary authority and responsibility for their children's success, while schools should focus on teaching content and allow students to face consequences earned through their own behavior. The commenter criticized public education policies for blurring responsibility, limiting parental accountability in discipline and engagement, and enabling disruptive behaviors that harm learning. The commenter also contended that school boards overstep their role by interfering with parental rights, failing to uphold constitutional principles, and reducing transparency and accountability to citizens and taxpayers.
Response. The SBOE agrees that parents are the primary authority for their children. The SBOE disagrees that the parental rights training for school board trustees blurs the lines of responsibility; rather, the training is designed with the intention to educate school board trustees to support parental rights.
Comment. A citizen stated that requiring five hours of training for new board members is excessive compared to other mandated trainings, which only require three hours. For consistency across requirements, the commenter concluded that three hours of training would be sufficient.
Response. The SBOE disagrees, as the scope of the material determines the amount of time required to adequately cover the training content. While the initial training will require more hours to ensure a comprehensive understanding of parental rights, the number of required hours will be reduced in subsequent years.
Comment. A school board trustee commented that school board trustees already face extensive training requirements, among the highest for elected officials in the state. The commenter argued that an additional three to five hours of training on parental rights is excessive given trustees' oversight role, existing legal compliance mechanisms, and current training on the TEC. The commenter recommended reducing the requirement, integrating it into existing training, or allowing experienced trustees to test out of repeated coursework.
Response. The SBOE disagrees, as the scope of the material determines the amount of time required to adequately cover the training content. While the initial training will require more hours to ensure a comprehensive understanding of parental rights, the number of required hours will be reduced in subsequent years.
STATUTORY AUTHORITY. The new section is adopted under Texas Education Code, §11.159(b-2), as added by Senate Bill 204, 89th Texas Legislature, Regular Session, 2025, which obligates the State Board of Education (SBOE) to require trustees to complete training on parental rights. The statute also requires the SBOE, with assistance from the Texas Education Agency, to develop the curriculum and materials for the training by April 1, 2026.
CROSS REFERENCE TO STATUTE. The new section implements Texas Education Code, §11.159(b-2), as added by Senate Bill 204, 89th Texas Legislature, Regular Session, 2025.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 22, 2026.
TRD-202602159
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 11, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
CHAPTER 74. CURRICULUM REQUIREMENTS
SUBCHAPTER
A.
The State Board of Education (SBOE) adopts the repeal of §74.4, concerning English Language Proficiency Standards (ELPS). The repeal is adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1233) and will not be republished. The adopted repeal removes the ELPS for Kindergarten-Grade 12 in §74.4 that will be superseded by 19 TAC §120.20, English Language Proficiency Standards, Kindergarten-Grade 3, Adopted 2024, and §120.21, English Language Proficiency Standards, Grades 4-12, Adopted 2024, beginning with the 2026-2027 school year.
REASONED JUSTIFICATION: In 1998, standards for English as a second language (ESL) for students in Kindergarten-Grade 12 were adopted as part of 19 TAC Chapter 128, Texas Essential Knowledge and Skills for Spanish Language Arts and Reading and English as a Second Language. In a subsequent Title III monitoring visit, the U.S. Department of Education (USDE) indicated that there was insufficient evidence demonstrating that the ESL standards outlined in 19 TAC Chapter 128 were aligned to state academic content and achievement standards in mathematics, as required by the No Child Left Behind Act (NCLB), §2113(b)(2). In November 2007, the SBOE adopted the ELPS as part of 19 TAC Chapter 74, Curriculum Requirements, to comply with NCLB requirements. The adopted ELPS in §74.4 clarified that state standards in English language acquisition must be implemented as an integral part of the instruction in each foundation and enrichment subject. Additionally, English language proficiency levels of beginning, intermediate, advanced, and advanced high in the domains of listening, speaking, reading, and writing were established as part of the ELPS, as required by NCLB. The superseded second language acquisition standards in 19 TAC Chapter 128 were also repealed in September 2008 during the process of revising the Texas Essential Knowledge and Skills (TEKS) in 19 TAC Chapters 110 and 128.
The SBOE began review and revision of the ELPS in 2019, in accordance with the SBOE's approved TEKS and instructional materials review schedule. Applications to serve on ELPS review work groups were posted on the Texas Education Agency (TEA) website in December 2018, and TEA distributed a survey to collect information from educators regarding the current ELPS. Work groups were convened in March, May, August, September, and October 2019. In September 2019, the USDE indicated that Texas only partially met the requirements of the Elementary and Secondary Education Act of 1965, as amended by the Every Student Succeeds Act, and requested additional evidence that the ELPS are aligned to the state's academic content standards and contain language proficiency expectations needed for emergent bilingual students to demonstrate achievement of the state academic standards appropriate to each grade level/grade band in at least reading language arts, mathematics, and science.
In response to feedback from work group members and the USDE, TEA staff convened a panel of experts in second language acquisition from Texas institutions of higher education to complete an analysis of the work group recommendations and current research on English language acquisition. Based on the panel's findings and direction from the SBOE, TEA executed personal services contracts with the panel members and a representative of an education service center to prepare a draft of revisions to the ELPS. Text of the draft ELPS completed by the expert panel was presented to the SBOE at the June 2023 SBOE meeting.
Applications to serve on the 2023-2024 ELPS review work groups were collected by TEA from June 2023 through January 2024. TEA staff provided SBOE members with applications for approval to serve on ELPS work groups in July, September, and December 2023 and January 2024. ELPS review work groups were convened in August, September, and November 2023 and March 2024 with the charge of reviewing and revising the expert panel's draft. In April 2024, the SBOE held a discussion item on the proposed new ELPS, and in May and June 2024, TEA convened a final work group to complete the recommendations for the new ELPS.
In September 2024, the SBOE adopted new ELPS for implementation in the 2026-2027 school year to ensure the standards are current and comply with federal requirements. The adopted repeal removes the ELPS in §74.4 that will be superseded by the new ELPS in 19 TAC §120.20 and §120.21 beginning with the 2026-2027 school year.
The SBOE approved the repeal for first reading and filing authorization at its January 30, 2026 meeting and for second reading and final adoption at its April 10, 2026 meeting contingent upon approval by the Committee on Instruction within 60 days. The Committee on Instruction held a special-called meeting on April 21, 2026, and approved the repeal.
In accordance with Texas Education Code, §7.102(f), the SBOE approved the repeal for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2026-2027 school year. The earlier effective date will remove the ELPS and related implementation language that will be superseded by 19 TAC §120.20 and §120.21 beginning with the 2026-2027 school year to avoid confusion. The effective date is August 1, 2026.
SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. The SBOE also provided an opportunity for registered oral and written comments at its April 2026 meeting in accordance with the SBOE board operating policies and procedures. No public comments were received.
STATUTORY AUTHORITY. The repeal is adopted under Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education to establish curriculum and graduation requirements; TEC, §28.002(a), which identifies the subjects of the required curriculum; and TEC, §29.051, which establishes bilingual education and special language programs in public schools and provides supplemental financial assistance to help school districts meet the extra costs of the programs.
CROSS REFERENCE TO STATUTE. The repeal implements Texas Education Code, §§7.102(c)(4), 28.002(a), and 29.051.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 22, 2026.
TRD-202602160
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: August 1, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
SUBCHAPTER
B.
The State Board of Education (SBOE) adopts an amendment to §74.14, concerning performance acknowledgments. The amendment is adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1241) and will not be republished. The adopted amendment updates the minimum score required for a performance acknowledgement on the SAT, aligns language related to ACT with language related to SAT, and adds the Classic Learning Test® and Preliminary SAT (PSAT) 10 to appropriate performance acknowledgments.
REASONED JUSTIFICATION: The SBOE adopted rules in 19 TAC Chapter 74, Subchapter B, to implement the Foundation High School Program effective July 8, 2014. In April 2018, the SBOE adopted an amendment to update the number of subject tests on the ACT Aspire™ examination that are required to earn a performance acknowledgement and to update the qualifying score on the SAT exam to a single composite score of 1350. The committee was recently made aware that the amended language that was adopted in 2018 for SAT and ACT is inconsistent.
At the January 2026 meeting, the College Board presented public testimony to the Committee on Instruction with information from concordance tables developed and approved by the College Board and ACT. The ACT-SAT concordance tables indicate that an SAT score of 1340 should be used as the equivalent to an ACT score of 29 when a single SAT score is needed. It was also brought to the committee's attention that the PSAT™ 10 has more flexible testing windows but is otherwise the same exam as the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT)®.
The adoption corrects the inconsistency in references to SAT and ACT, updates the minimum score required for a performance acknowledgement on the SAT from 1350 to 1340, and adds the Classic Learning Test® and PSAT 10 to appropriate performance acknowledgments.
The SBOE approved the amendment for first reading and filing authorization at its January 30, 2026 meeting and for second reading and final adoption at its April 10, 2026 meeting contingent upon approval by the Committee on Instruction within 60 days. The Committee on Instruction held a special-called meeting on April 21, 2026, and approved the amendment.
In accordance with Texas Education Code, §7.102(f), the SBOE approved the amendment for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2026-2027 school year. The earlier effective date will allow districts of innovation that begin school prior to the statutorily required start date to implement the proposed rulemaking when they begin their school year. The effective date is August 1, 2026.
SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. The SBOE also provided an opportunity for registered oral and written comments at its April 2026 meeting in accordance with the SBOE board operating policies and procedures. Following is a summary of public comments received and corresponding responses.
Comment. One counselor and one out-of-state individual expressed support for adding PSAT 10 as an eligible assessment for a performance acknowledgment.
Response. The SBOE agrees and took action to approve the amendment to add PSAT 10 to the eligible assessments for a performance acknowledgment as proposed.
Comment. One out-of-state individual expressed support for updating the qualifying SAT score from 1350 to 1340 to ensure fairness and consistency across assessments in alignment with the ACT-SAT concordance tables.
Response. The SBOE agrees and took action to approve the amendment to update the qualifying SAT score to 1340 as proposed.
STATUTORY AUTHORITY. The amendment is adopted under Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; and TEC, §28.025(c-5), which requires the SBOE to adopt rules permitting a student to earn a performance acknowledgment on the student's transcript for outstanding performance in a dual credit course; in bilingualism and biliteracy; on a college advanced placement test or international baccalaureate examination; on an established, valid, reliable, and nationally norm-referenced preliminary college preparation assessment instrument used to measure a student's progress toward readiness for college and the workplace; on an established, valid, reliable, and nationally norm-referenced assessment instrument used by colleges and universities as part of their undergraduate admissions process; or for earning a state recognized or nationally or internationally recognized business or industry certification or license.
CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §7.102(c)(4) and §28.025(c-5).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 22, 2026.
TRD-202602161
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: August 1, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
CHAPTER 89. ADAPTATIONS FOR SPECIAL POPULATIONS
SUBCHAPTER
AA.
DIVISION 7. DISPUTE RESOLUTION
19 TAC §§89.1150, 89.1175, 89.1195, 89.1197The Texas Education Agency (TEA) adopts amendments to §§89.1150, 89.1175, 89.1195, and 89.1197, concerning special education services. The amendments to §§89.1150, 89.1175, and 89.1195 are adopted without changes to the proposed text as published in the January 23, 2026 issue of the Texas Register (51 TexReg 375) and will not be republished. The amendment to §89.1197 is adopted with changes to the proposed text as published in the January 23, 2026 issue of the Texas Register (51 TexReg 375) and will be republished. The adopted amendments clarify program practices and requirements relating to dispute resolution in accordance with House Bill (HB) 2 and Senate Bill (SB) 568, 89th Texas Legislature, Regular Session, 2025.
REASONED JUSTIFICATION: Section 89.1150 establishes general provisions for special education dispute resolution. The adopted amendment adds new subsection (b) to inform parents and school districts that TEA may share student-level information with an outside entity in accordance with the Family Educational Rights and Privacy Act for the purposes of facilitating local resolution of disputes related to special education.
Section 89.1175 establishes representation in special education due process hearings. The adopted amendment adds new subsection (d)(2) to establish a requirement for the non-attorney representative to have knowledge of all special education dispute resolution options available to parents to align with HB 2 and SB 568, 89th Texas Legislature, Regular Session, 2025. An adopted amendment to the figure in subsection (c) reflects the new requirement for alignment.
Section 89.1195 establishes provisions for special education complaint resolution. After careful consideration and a targeted focus on assisting school systems and families with preventing and resolving disagreements at the earliest stage possible, TEA is adopting the repeal of language that authorized a party to request a reconsideration process if the party felt that the agency made an error that was material to its decision or was incorrect in its determination. A reconsideration process is not required under federal or state law. Given the narrow scope of the reconsideration process and the absence of a legal requirement, the agency has determined that students' best interests are better served by prioritizing timely, consistent resolution of complaints through comprehensive, thorough, and accurate investigations and investigative reports.
The adopted amendment to §89.1197 updates the section title to align with HB 2 and SB 568. Further adopted changes to subsections (c) and (f)(2) allow statewide individualized education program (IEP) facilitation to be used prior to a potential dispute and when a dispute has arisen related to the provision of free and appropriate public education (FAPE). These changes align the rule with HB 2 and SB 568. Adopted updates to subsection (f) and (f)(3) provide clarity to school districts and parents regarding the process and timeline for when a request for a state-appointed facilitator must be filed. The timeline in subsection (f)(3) has been revised at adoption from ten calendar days to ten school days based on public comment.
SUMMARY OF COMMENTS AND AGENCY RESPONSES: The public comment period on the proposal began January 23, 2026, and ended February 23, 2026, and included public hearings on February 12 and 13, 2026. Following is a summary of public comments received and agency responses.
§89.1150, General Provisions
Comment: The Texas Association of School Boards (TASB) requested clarification regarding whether the agency intends to provide additional notice when student-level information may be shared under proposed new §89.1150(b) in accordance with the Family Educational Rights and Privacy Act (FERPA).
Response: The agency provides the following clarification. Proposed new §89.1150(b) is intended to inform parties that the agency may share student-level information in accordance and in compliance with FERPA for purposes of facilitating local resolution of disputes. The agency does not intend to establish additional notice requirements beyond those provided in the rule text and applicable federal law.
Comment: The Texas School Alliance (TSA) commented in support of proposed new subsection (b), stating that transparent notice regarding information sharing promotes efficient dispute resolution.
Response: The agency agrees.
§89.1175, Representation in Special Education Due Process Hearings
Comment: TASB requested clarification on how the requirement that non-attorney representatives have knowledge of all special education dispute resolutions would be operationalized and enforced, including whether compliance would need to be required beyond the form adopted in subsection (c). TASB also requested clarification regarding the authority and role of hearing officers in assessing or enforcing this requirement.
Response: The agency clarifies that the requirement is met through the documentation referenced in §89.1175(c) and does not expand hearing officers' authority beyond their existing jurisdiction under current law.
Comment: TSA commented in support of the proposed requirement in §89.1175(d)(2), stating that ensuring non-attorney representatives are knowledgeable about dispute resolution options would enhance the effectiveness and professionalism of the due process resolution system.
Response: The agency agrees.
Comment: The Texas Council of Administrators of Special Education (TCASE) commented in support of the proposed addition of §89.1175(d)(2), stating it would improve informed parent representation and promote earlier collaboration between parents and districts to resolve disputes.
Response: The agency agrees.
§89.1195, Special Education Complaint Resolution
Comment: TCASE recommended amending §89.1195(b) to require that complaints involving a specific student be forwarded to the student's parent, guardian, or court-appointed special education advocate.
Response: The agency disagrees. The recommended amendment would place an additional requirement for filing a special education complaint that would be inconsistent with 34 CFR, §§300.151-300.153.
Comment: TCASE commented that §89.1195(e) does not provide districts with a meaningful opportunity to respond early in the complaint process and recommended clarifying that districts may communicate TEA earlier, propose resolutions, and receive recognition for voluntary correction.
Response: The agency disagrees. During the investigation timeline, parties may pursue early or local resolution options described in the complaint notices, and if a local education agency (LEA) corrects any noncompliance and submits documentation before issuance of the investigative report, the agency may choose not to issue a finding.
Comment: Seventeen individuals, Austin Independent School District (ISD), Richardson ISD, Lovejoy ISD, Caddo Mills ISD, Lubbock-Cooper ISD, Denton ISD, Plano ISD, Frisco ISD, Arlington ISD, Northwest ISD, Orenda Charter Schools, Disability Rights Texas (DRTx), TCASE, TASB, TSA, and legal counsel at Walsh Gallegos Kyle Robinson & De Los Santos, P.C. disagreed with the proposed deletion of §89.1195(f) and (j). Each commenter raised at least one concern that the reconsideration process serves as an important procedural safeguard, allows correction of factual or legal errors, supports accurate determinations, promotes fairness and public confidence, or that eliminating the reconsideration process could result in inaccurate findings, unnecessary corrective actions, or increased escalation to other dispute resolution processes.
Response: The agency disagrees. A separate reconsideration process is not required by state or federal law, and eliminating reconsideration supports timely and consistent resolution of complaints. Parties may submit information during the investigation, and parents and public education agencies retain access to other procedural safeguards, including mediation and due process.
Comment: Three individuals, Austin ISD, Richardson ISD, Lovejoy ISD, Caddo Mills ISD, Denton ISD, Frisco ISD, Arlington ISD, Orenda Charter Schools, TASB, and legal counsel at Walsh Gallegos Kyle Robinson & De Los Santos, P.C. raised at least one concern that special education complaint investigations rely heavily on investigator-requested documentation and may overlook relevant records not specifically requested, increasing the risk of inaccurate findings, and identified the reconsideration process as one mechanism for submitting additional documentation or clarifying evidence to correct factual or legal errors before findings become final.
Response: The agency disagrees. Investigative reports are considered final, and parties are not limited in terms of what documentation they may submit for consideration during an investigation. While the agency requests documentation for an investigation based on the allegations raised in the complaint, LEAs and complainants may submit any documentation they want the agency to review. Complaint notices inform parties of their opportunity to submit additional information, orally or in writing, and LEAs are informed that they may provide a written response and any documentation that may assist the investigation.
Comment: Two individuals, Arlington ISD, Richardson ISD, Austin ISD, and Denton ISD disagreed with the removal of the reconsideration process for complaint determinations, stating that incorrect findings may result in resource-intensive corrective action plans and the implementation of unnecessary or inconsistent actions that divert time and resources away from affected students.
Response: The agency disagrees that a reconsideration process is necessary. Parties may submit any information during the investigation, and corrective actions are limited to addressing identified noncompliance. The agency monitors corrective action to ensure consistency with state and federal law while supporting timely resolution of complaints.
Comment: One individual, Richardson ISD, Caddo Mills ISD, Denton ISD, Frisco ISD, Northwest ISD, and legal counsel at Walsh Gallegos Kyle Robinson & De Los Santos, P.C. commented that eliminating the reconsideration process would remove an efficient, low-cost administrative process for correcting error and could increase escalation to more formal dispute resolution processes, increasing costs and resource demands.
Response: The agency disagrees. A separate reconsideration process is not required by state or federal law. Eliminating reconsideration supports timely and consistent resolution of special education complaints and allows the agency to focus resources on conducting comprehensive, thorough, and accurate investigations. Parents and public education agencies retain access to other procedural safeguards, including mediation, TEA-assisted resolution, and due process, consistent with state and federal law.
Comment: Two individuals and Arlington ISD disagreed with the proposed deletion of §89.1195(j), arguing that eliminating the appeal mechanism would allow incorrect findings and legally erroneous corrective actions to stand. The commenters cited recent reversals involving independent educational evaluation rights and evaluation timelines as evidence that oversight is necessary to prevent unlawful, systemwide policy changes and inconsistent guidance.
Response: The agency disagrees and clarifies that removing §89.1195(j) will not result in incorrect findings or unlawful corrective actions, as the agency maintains processes to ensure consistency and compliance with state and federal law.
Comment: Four individuals, Caddo Mills ISD, and Denton ISD questioned whether eliminating the reconsideration process is required to align with SB 568 or HB 2, noting that removal is not mandated by statute and reflects a policy choice.
Response: The agency provides the following clarification. Eliminating reconsideration is a policy determination within the agency's authority, as reconsideration is not required by state or federal law. The agency supports timely and final complaint resolution while maintaining required procedural safeguards.
Comment: TCASE requested clarification on whether Education Freedom Account IEP requirements in Texas Education Code (TEC), §29.3615(c) and (d), are subject to the state special education complaint process and recommended that TEC, Chapter 29, Subchapter J, be addressed separately from existing special education regulations.
Response: This comment is outside the scope of the proposed rulemaking.
Comment: One individual, Denton ISD, TCASE, and TASB opposed eliminating reconsideration and recommended retaining the process with limitations or clarifications, such as restricting requests to significant errors or establishing procedural parameters. DRTx similarly commented recommending improving understanding of the grounds for reconsideration rather than eliminating the process.
Response: The agency disagrees. A separate reconsideration process or separate administrative review process is not required by state or federal law, and eliminating reconsideration supports timely and consistent complaint resolution while preserving existing procedural safeguards.
§89.1197, State Individualized Education Program Facilitation
Comment: Three individuals, Arlington ISD, DRTx, TCASE, and TSA commented in support of expanding the TEA IEP Facilitation Program under §89.1197(c) and (f), stating that earlier access to TEA-facilitated admission, review, and dismissal (ARD) meetings may help resolve disputes related to FAPE and prevent escalation. TSA further supported a statewide IEP facilitation framework with clear procedures and timelines.
Response: The agency agrees.
Comment: Three individuals and Arlington ISD recommended revising §89.1197(f)(3) to change the timeline for requesting ARD facilitation from 10 calendar days to ten school days, stating that aligning the timeline with the 10-school-day period for scheduling a disagreement ARD under §89.1055(p)(1) would promote consistency, improve scheduling feasibility, and prevent timelines from tolling during school breaks when ARD committee meetings are not held.
Response: The agency agrees and has updated §89.1197(f)(3) at adoption to specify a timeline of 10 school days to request IEP facilitation.
STATUTORY AUTHORITY. The amendments are adopted under Texas Education Code (TEC), §29.001, which requires the agency to develop and modify as necessary a statewide plan for the delivery of services to children with disabilities that ensures the availability of a free appropriate public education to children between the ages of 3-21; TEC, §29.010, which establishes criteria for general supervision and compliance; TEC, §29.019, which establishes criteria for individualized education program (IEP) facilitation; TEC, §29.020, as amended by House Bill (HB) 2 and Senate Bill (SB) 568, 89th Texas Legislature, Regular Session, 2025, which establishes criteria for state-administered IEP facilitation; TEC, §29.0162, as amended by HB 2 and SB 568, 89th Texas Legislature, Regular Session, 2025, which establishes criteria for representation in a special education due process hearing; 34 Code of Federal Regulations (CFR), §300.149, which establishes the state educational agency responsibility for general supervision; 34 CFR, §300.151, which establishes the criteria for the adoption of state complaint procedures; 34 CFR, §300.152, which establishes the criteria for minimum state complaint procedures; 34 CFR, §300.153, which establishes the criteria for filing a complaint; 34 CFR, §300.504, which establishes the criteria for procedural safeguards notice; 34 CFR, §300.512, which establishes hearing rights; and 34 CFR, §300.600, which establishes criteria for state monitoring and enforcement.
CROSS REFERENCE TO STATUTE. The amendments implement Texas Education Code, §§29.001, 29.010, and 29.019; §29.020 and §29.0162, as amended by House Bill 2 and Senate Bill 568, 89th Texas Legislature, Regular Session, 2025; and §29.0162; and 34 Code of Federal Regulations, §§300.149, 300.151, 300.152, 300.153, 300.504, 300.512, and 300.600.
§89.1197.
(a) In accordance with Texas Education Code, §29.020, the Texas Education Agency (TEA) will establish a program that provides independent individualized education program (IEP) facilitators.
(b) For purposes of this section, where TEA is referenced in subsections (c)-(p) of this section and where not otherwise prohibited by law, TEA may delegate duties and responsibilities to an education service center (ESC) when it is determined to be the most efficient way to implement the program.
(c) For the purpose of this section, IEP facilitation has the same general meaning as described in §89.1196(a) of this title (relating to Individualized Education Program Facilitation), except that state IEP facilitation may be utilized by a school district and a parent of a student with a disability to avoid a potential dispute relating to the provision of a free and appropriate public education (FAPE) or when the admission, review, and dismissal (ARD) committee meeting has ended in disagreement about decisions relating to the provision of FAPE to a student with a disability and the facilitator is an independent facilitator provided by TEA.
(d) A request for IEP facilitation under this section must be filed by completing a form developed by TEA that is available upon request from TEA and on the TEA website. The form must be filed with TEA by one of the parties by electronic mail, mail, hand-delivery, or facsimile.
(e) IEP facilitation under this section must be voluntary on the part of the parties and provided at no cost to the parties.
(f) In order for TEA to provide an independent facilitator, the request must be submitted jointly by a school district and a parent of a student with a disability, and the following conditions must be met.
(1) The required form must be completed and signed by both parties.
(2) The parties believe that a state-appointed IEP facilitator may assist in avoiding a potential dispute relating to the provision of FAPE or an ARD committee meeting has ended in disagreement regarding the provision of FAPE and the committee has agreed to recess and reconvene the meeting in accordance with §89.1055(o) of this title (relating to Individualized Education Program).
(3) The request for IEP facilitation must be received by TEA at least 10 school days prior to the ARD committee meeting for which a facilitator is being requested or within 10 school days of the ARD committee meeting that ended in disagreement. A state-appointed facilitator must be available on the date set for the meeting.
(4) The same parties must not have participated in IEP facilitation concerning the same student under this section within the same school year of the filing of the current request for IEP facilitation.
(g) Within five business days of receipt of a request for an IEP facilitation under this section, TEA will determine whether the conditions in subsections (d)-(f) of this section have been met and will notify the parties of its determination and the assignment of the independent facilitator, if applicable.
(h) Notwithstanding subsections (c)-(f) of this section, if a special education due process hearing or complaint decision requires a public education agency to provide an independent facilitator to assist with an ARD committee meeting, the public education agency may request that TEA assign an independent facilitator. Within five business days of receipt of a written request for IEP facilitation under this subsection, TEA will notify the parties of its decision to assign or not assign an independent facilitator. If TEA declines the request to assign an independent facilitator, the public education agency must provide an independent facilitator at its own expense.
(i) TEA's decision not to provide an independent facilitator is final and not subject to review or appeal.
(j) The independent facilitator assignment may be made based on a combination of factors, including, but not limited to, geographic location and availability. Once assigned, the independent facilitator must promptly contact the parties to clarify the issues, gather necessary information, and explain the IEP facilitation process.
(k) TEA will use a competitive solicitation method to seek independent facilitation services, and the contracts with independent facilitators will be developed and managed in accordance with TEA's contracting practices and procedures.
(l) At a minimum, an individual who serves as an independent facilitator under this section:
(1) must have demonstrated knowledge of federal and state requirements relating to the provision of special education and related services to students with disabilities;
(2) must have demonstrated knowledge of and experience with the ARD committee meeting process;
(3) must have completed 18 hours or more of training in IEP facilitation, consensus building, and/or conflict resolution as specified in TEA's competitive solicitation;
(4) must complete continuing education as determined by TEA;
(5) may not be an employee of TEA or the public education agency that the student attends; and
(6) may not have a personal or professional interest that conflicts with his or her impartiality.
(m) An individual is not an employee of TEA solely because the individual is paid by TEA to serve as an independent facilitator.
(n) An independent facilitator must not be a member of the student's ARD committee, must not have any decision-making authority, and must remain impartial to the topics under discussion. The independent facilitator must assist with the overall organization and conduct of the ARD committee meeting by:
(1) assisting the committee in establishing an agenda and setting the time allotted for the meeting;
(2) assisting the committee in establishing a set of guidelines for the meeting;
(3) guiding the discussion and keeping the focus on developing a mutually agreed upon IEP for the student;
(4) ensuring that each committee member has an opportunity to participate;
(5) helping to resolve disagreements that arise; and
(6) helping to keep the ARD committee on task so that the meeting purposes can be accomplished within the time allotted for the meeting.
(o) An independent facilitator must protect the confidentiality of personally identifiable information about the student and comply with the requirements in the Family Educational Rights and Privacy Act regulations, 34 CFR, Part 99, relating to the disclosure and redisclosure of personally identifiable information from a student's education record.
(p) TEA will develop surveys to evaluate the IEP facilitation program and the independent facilitators and will request that parties who participate in the program complete the surveys.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 29, 2026.
TRD-202602244
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 18, 2026
Proposal publication date: January 23, 2026
For further information, please call: (512) 475-1497
CHAPTER 109. BUDGETING, ACCOUNTING, AND AUDITING
The State Board of Education (SBOE) adopts the repeal of §109.25 and amendments to §109.51 and §109.52, concerning budgeting, accounting, and auditing. The repeal and amendments are adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1246) and will not be republished. The adopted revisions repeal §109.25, whose statutory authority, Texas Education Code (TEC), §48.104(j-1), (k), (l), (m), (n), and (o), was removed by House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025. The revisions also align language in Subchapter D with TEC, §45.208, which no longer requires depository contracts to be submitted to the Texas Education Agency (TEA).
REASONED JUSTIFICATION: Section 109.25 requires each school district and charter school to report financial information relating to the expenditure of the state compensatory education allotment under the Foundation School Program to TEA. HB 2, 89th Texas Legislature, Regular Session, 2025, repealed the SBOE's authority to direct how the state compensatory education allotment funds are spent and how the funds are reported to TEA. Therefore, the repeal of §109.25 is necessary to implement HB 2.
Section 109.52 establishes the requirement that each school district select at least one bank as a depository and enter into a depository contract with the bank, providing the completed contract to TEA. Section 109.52 also establishes the requirement that a district provide a completed surety bond form to TEA if the depository bank uses a surety bond to secure district deposits. The section includes the depository contract form and surety bond form with the content prescribed by the SBOE. Senate Bill 1376, 86th Texas Legislature, 2019, repealed the requirement for districts to submit certain depository information to TEA. Therefore, §109.52 has been amended to remove filing requirements.
Section 109.51 has been amended to make non-substantive changes to align with language in §109.52.
The SBOE approved the revisions for first reading and filing authorization at its January 30, 2026 meeting and for second reading and final adoption at its April 10, 2026 meeting.
In accordance with TEC, §7.102(f), the SBOE approved the revisions for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2026-2027 school year. The earlier effective date will ensure that school districts and charter schools can adopt the revisions as soon as possible. The effective date is 20 days after filing as adopted with the Texas Register.
SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. The SBOE also provided an opportunity for registered oral and written comments at its April 2026 meeting in accordance with the SBOE board operating policies and procedures. No public comments were received.
SUBCHAPTER
B.
STATUTORY AUTHORITY. The repeal is adopted under House Bill 2, Section 7.24, 89th Texas Legislature, Regular Session, 2025, which amended Texas Education Code, §48.104, to repeal the authority of the State Board of Education to direct how the state compensatory education allotments funds are spent and how the expenditures are reported to the Texas Education Agency.
CROSS REFERENCE TO STATUTE. The repeal implements House Bill 2, Section 7.24, 89th Texas Legislature, Regular Session, 2025.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 22, 2026.
TRD-202602162
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 11, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
SUBCHAPTER
D.
STATUTORY AUTHORITY. The amendments are adopted under Texas Education Code, §45.208, which requires that a school district use the depository contract prescribed by the State Board of Education and that the depository bank secure the highest daily amount of cash in the bank using a bond or other surety agreements.
CROSS REFERENCE TO STATUTE. The amendments implement Texas Education Code, §45.208.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 22, 2026.
TRD-202602163
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 11, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
SUBCHAPTER
C.
The State Board of Education (SBOE) adopts an amendment to §109.41, concerning financial accounting guidelines. The amendment is adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1248) and will not be republished. The amendment adopts by reference the updated Financial Accountability System Resource Guide (FASRG), which includes annual updates and removes information related to the compensatory education allotment to align with House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025. Although no changes were made to §109.41 since published as proposed, the FASRG adopted by reference does include changes to Module 1, Module 1 Appendices, and Modules 3 and 5 at adoption.
REASONED JUSTIFICATION: The FASRG describes the rules of financial accounting for school districts, charter schools, and education service centers and is adopted by reference under §109.41. In addition, revisions to the FASRG align the content with current governmental accounting and auditing standards, remove obsolete requirements, and remove descriptions and discussions of best practices and other non-mandatory elements.
Requirements for financial accounting and reporting are derived from generally accepted accounting principles (GAAP). School districts and charter schools are required to adhere to GAAP. Legal and contractual considerations typical of the government environment are reflected in the fund structure basis of accounting.
An important function of governmental accounting systems is to enable administrators to assure and report on compliance with finance-related legal provisions. This assurance and reporting means that the accounting system and its terminology, fund structure, and procedures must be adapted to satisfy finance-related legal requirements. However, the basic financial statements of school districts and charter schools should be prepared in conformity with GAAP.
School district and governmental charter school accounting systems shall use the accounting code structure presented in the Account Code Structure section of Module 1 of the FASRG and nonprofit charter school accounting systems shall use the accounting code structure presented in the Accounting Code Structure section of Module 2 of the FASRG. Funds shall be classified and identified on required financial statements by the same code number and terminology provided in the Account Code section of Module 1 FAR Appendices for school districts and governmental charter schools and Module 3 of the FASRG for nonprofit charter schools.
State law provides authority for both the SBOE and the commissioner of education to adopt rules on financial accounting. To accomplish this, the SBOE and the commissioner each adopt the FASRG by reference under separate rules. The SBOE adopts the FASRG by reference under 19 TAC §109.41, and the commissioner adopts the FASRG by reference under new §109.5001.
The following changes have been made to FASRG Modules 1 through 6.
Module 1, Financial Accounting and Reporting (FAR) and FAR Appendices
Module 1 aligns with current governmental accounting standards. Module 1 includes the following changes. Updates have been made to accounting codes and accounting guidance, including the removal of several program intent codes related to state compensatory education, and previous guidance has been clarified, including additional information on shared services arrangements. School districts and charter schools are required to maintain proper budgeting and financial accounting and reporting systems. In addition, school districts are required to establish principles and policies to ensure uniformity in accounting in conformity with GAAP established by the Governmental Accounting Standards Board (GASB).
Module 1 and Module 1 FAR Appendices were modified at adoption to clarify accounting and tracking of state funds and to align guidance with GASB Statement No. 103, including replacing terminology, accounting, and reporting for special and extraordinary items with unusual and infrequent items.
Module 2, Special Supplement - Charter Schools
Module 2 aligns with current financial accounting reporting standards. Proposed Module 2 includes the following changes. Updates have been made to accounting codes and accounting guidance, and previous guidance has been clarified. The module establishes financial and accounting requirements for Texas public charter schools to ensure uniformity in accounting in conformity with GAAP. The module also includes current guidance that complements the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States Government Accountability Office (GAO). These requirements facilitate preparation of financial statements that conform to GAAP established by the Financial Accounting Standards Board (FASB).
Module 3, Special Supplement - Non-profit Charter Schools Chart of Accounts
Module 3 aligns with current financial accounting standards. Module 3 includes the following changes. Updates have been made to accounting codes and accounting guidance, including the removal of several program intent codes related to state compensatory education, and previous guidance has been clarified. Charter schools are required to maintain proper budgeting and financial accounting and reporting systems that are in conformity with Texas Education Data Standards in the Texas Student Data Systems (TSDS) PEIMS. In addition, charter schools are required to establish principles and policies to ensure uniformity in accounting in conformity with GAAP established by the FASB. The module also includes current auditing guidance that complements the AICPA Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States GAO. These requirements facilitate preparation of financial statements that conform to GAAP established by the FASB.
Module 3 was modified at adoption to clarify accounting and tracking of state funds and to replace terminology, accounting, and reporting for special and extraordinary items with unusual and infrequent items to align guidance with FASB Accounting Standards Update No. 2015-01.
Module 4, Auditing
Module 4 aligns with current auditing standards. Module 4 includes the following changes. Updates have been made to accounting codes and accounting guidance, and previous guidance has been clarified. The module establishes auditing requirements for Texas public school districts and charter schools and includes current requirements from Texas Education Code (TEC), §44.008, as well as Code of Federal Regulations, Title 2, Part 200, Subpart F, Audit Requirements, that implement the federal Single Audit Act. The module also includes current auditing guidance that complements the AICPA Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States GAO. These requirements facilitate preparation of financial statements that conform to GAAP established by the GASB.
Module 5, Purchasing
Module 5 aligns with current purchasing laws and standards. Module 5 includes the following changes. Updates have been made to purchasing guidance that has changed from previous legislation, including an increase in the purchasing threshold from $50,000 to $100,000 for procurement requirements. Purchasing rules that needed additional explanation have been clarified. School districts and charter schools are required to establish procurement policies and procedures that align with their unique operating environment and ensure compliance with relevant statutes and policies.
Module 5 was modified at adoption to further align the threshold for purchasing contracts requirements with TEC, §44.031.
Module 6, Compensatory Education, Guidelines, Financial Treatment, and an Auditing and Reporting System
Module 6, which provides information to assist school districts and charter schools with using the state compensatory education allotment, was deleted because HB 2, 89th Texas Legislature, Regular Session, 2025, repealed TEC, §48.104(j-1) and (k)-(o), which set requirements for using the allotment.
The FASRG is posted on the Texas Education Agency website at https://tea.texas.gov/finance-and-grants/financial-accountability/financial-accountability-system-resource-guide.
The SBOE approved the amendment for first reading and filing authorization at its January 30, 2026 meeting and for second reading and final adoption at its April 10, 2026 meeting.
In accordance with TEC, §7.102(f), the SBOE approved the amendment for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2026-2027 school year. The earlier effective date will ensure the provisions of the FASRG align with current governmental accounting and auditing standards for school districts and charter schools as soon as possible. The effective date is 20 days after filing as adopted with the Texas Register.
SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. The SBOE also provided an opportunity for registered oral and written comments at its April 2026 meeting in accordance with the SBOE board operating policies and procedures. No public comments were received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Education Code (TEC), §7.102(c)(32), which requires the State Board of Education (SBOE) to adopt rules concerning school district budgets and audits of school district fiscal accounts as required under TEC, Chapter 44, Subchapter A; TEC, §44.001(a), which requires the commissioner to establish advisory guidelines relating to the fiscal management of a school district; TEC, §44.001(b), which requires the commissioner to report annually to the SBOE the status of school district fiscal management as reflected by the advisory guidelines and by statutory requirements; TEC, §44.007(a), which requires the board of trustees of each school district to adopt and install a standard school fiscal accounting system that conforms with generally accepted accounting principles; TEC, §44.007(b), which requires the accounting system to meet at least the minimum requirements prescribed by the commissioner, subject to review and comment by the state auditor; TEC, §44.007(c), which requires a record to be kept of all revenues realized and of all expenditures made during the fiscal year for which a budget is adopted. A report of the revenues and expenditures for the preceding fiscal year is required to be filed with the agency on or before the date set by the SBOE; TEC, §44.007(d), which requires each district, as part of the report required by TEC, §44.007, to include management, cost accounting, and financial information in a format prescribed by the SBOE in a manner sufficient to enable the board to monitor the funding process and determine educational system costs by district, campus, and program; and TEC, §44.008(b), which requires the independent audit to meet at least the minimum requirements and be in the format prescribed by the SBOE, subject to review and comment by the state auditor. The audit must include an audit of the accuracy of the fiscal information provided by the district through the Public Education Information Management System.
CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§7.102(c)(32); 44.001(a) and (b); 44.007(a)-(d); and 44.008(b).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 1, 2026.
TRD-202602252
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 21, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497
SUBCHAPTER
EE.
The Texas Education Agency (TEA) adopts an amendment to §109.5001, concerning financial accounting guidelines. The amendment is adopted without changes to the proposed text as published in the February 27, 2026 issue of the Texas Register (51 TexReg 1250) and will not be republished. The amendment adopts by reference the Financial Accountability System Resource Guide (FASRG), Version 20, which includes annual updates and removes information related to the compensatory education allotment to align with House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025. The FASRG provides accounting rules for school districts, open-enrollment charter schools, and education service centers. Although no changes were made to §109.5001 since published as proposed, the FASRG adopted by reference does include changes to Module 1, Module 1 Appendices, and Modules 3 and 5 at adoption.
REASONED JUSTIFICATION: The FASRG describes the rules of financial accounting for school districts, charter schools, and education service centers and is adopted by reference under §109.5001. Revisions to the FASRG align the content with current governmental accounting and auditing standards, remove obsolete requirements, and remove descriptions and discussions of best practices and other non-mandatory elements.
Requirements for financial accounting and reporting are derived from generally accepted accounting principles (GAAP). School districts and charter schools are required to adhere to GAAP. Legal and contractual considerations typical of the government environment are reflected in the fund structure basis of accounting.
An important function of governmental accounting systems is to enable administrators to assure and report on compliance with finance-related legal provisions. This assurance and reporting process means that the accounting system and its terminology, fund structure, and procedures must be adapted to satisfy finance-related legal requirements. However, the basic financial statements of school districts and charter schools should be prepared in conformity with GAAP.
School district and governmental charter school accounting systems shall use the accounting code structure presented in the Account Code Structure section of Module 1 of the FASRG, and nonprofit charter school accounting systems shall use the accounting code structure presented in the Accounting Code Structure section of Module 2 of the FASRG. Funds shall be classified and identified on required financial statements by the same code number and terminology provided in the Account Code section of Module 1 FAR Appendices for school districts and governmental charter schools and Module 3 of the FASRG for nonprofit charter schools.
The FASRG, Version 20, contains six modules on the following topics: Module 1, Financial Accounting and Reporting (FAR) and FAR Appendices; Module 2, Special Supplement - Charter Schools; Module 3, Special Supplement - Non-profit Charter Schools Chart of Accounts; Module 4, Auditing; Module 5, Purchasing; and Module 6, Compensatory Education, Guidelines, Financial Treatment, and an Auditing and Reporting System. The FASRG is posted on the TEA website at https://tea.texas.gov/finance-and-grants/financial-accountability/financial-accountability-system-resource-guide.
State law provides authority for both the State Board of Education (SBOE) and the commissioner of education to adopt rules on financial accounting. To accomplish this, the SBOE and the commissioner each adopt the FASRG by reference under separate rules. The SBOE adopts the FASRG by reference under 19 TAC §109.41, and the commissioner adopts the FASRG by reference under §109.5001.
During the April 2026 SBOE meeting, the SBOE approved §109.41 for second reading and final adoption. At that time, the SBOE approved technical corrections to the FASRG Module 1, Module 1 Appendices, Module 3, and Module 5 since published as proposed. These technical corrections impact the FASRG adopted by reference in §109.5001.
Module 1, Financial Accounting and Reporting (FAR) and FAR Appendices
Module 1 aligns with current governmental accounting standards. Adopted Module 1 includes the following changes. Updates are made to accounting codes and accounting guidance, including the removal of several program intent codes related to state compensatory education, and previous guidance is clarified, including additional information on shared services arrangements. School districts and charter schools are required to maintain proper budgeting and financial accounting and reporting systems. In addition, school districts are required to establish principles and policies to ensure uniformity in accounting in conformity with GAAP established by the Governmental Accounting Standards Board (GASB).
Module 1 and Module 1 FAR Appendices are modified at adoption to clarify accounting and tracking of state funds and to align guidance with GASB Statement No. 103, including replacing terminology, accounting, and reporting for special and extraordinary items with unusual and infrequent items.
Module 2, Special Supplement - Charter Schools
Module 2 aligns with current financial accounting reporting standards. Adopted Module 2 includes the following changes. Updates are made to accounting codes and accounting guidance, and previous guidance is clarified. The adopted module establishes financial and accounting requirements for Texas public charter schools to ensure uniformity in accounting in conformity with GAAP. The adopted module also includes current guidance that complements the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States Government Accountability Office (GAO). These requirements facilitate preparation of financial statements that conform to GAAP established by the Financial Accounting Standards Board (FASB).
Module 3, Special Supplement - Non-profit Charter Schools Chart of Accounts
Module 3 aligns with current financial accounting standards. Adopted Module 3 includes the following changes. Updates are made to accounting codes and accounting guidance, including the removal of several program intent codes related to state compensatory education, and previous guidance is clarified. Charter schools are required to maintain proper budgeting and financial accounting and reporting systems that are in conformity with Texas Education Data Standards (TEDS) in the Texas Student Data Systems (TSDS) Public Education Information Management System (PEIMS). In addition, charter schools are required to establish principles and policies to ensure uniformity in accounting in conformity with GAAP established by the FASB. The adopted module also includes current auditing guidance that complements the AICPA Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States GAO. These requirements facilitate preparation of financial statements that conform to GAAP established by the FASB.
Module 3 is modified at adoption to clarify accounting and tracking of state funds and to replace terminology, accounting, and reporting for special and extraordinary items with unusual and infrequent items to align guidance with FASB Accounting Standards Update No. 2015-01.
Module 4, Auditing
Module 4 aligns with current auditing standards. Adopted Module 4 includes the following changes. Updates are made to accounting codes and accounting guidance, and previous guidance is clarified. The adopted module establishes auditing requirements for Texas public school districts and charter schools and includes current requirements from TEC, §44.008, as well as Code of Federal Regulations, Title 2, Part 200, Subpart F, Audit Requirements, that implement the federal Single Audit Act. The adopted module also includes current auditing guidance that complements the AICPA Audit and Accounting Guide, State and Local Governments and supplements the Government Auditing Standards of the United States GAO. These requirements facilitate preparation of financial statements that conform to GAAP established by the GASB.
Module 5, Purchasing
Module 5 aligns with current purchasing laws and standards. Adopted Module 5 includes the following changes. Updates are made to purchasing guidance that has changed from previous legislation, including an increase in the purchasing threshold from $50,000 to $100,000 for procurement requirements. Purchasing rules that needed additional explanation are clarified. School districts and charter schools are required to establish procurement policies and procedures that align with their unique operating environment and ensure compliance with relevant statutes and policies.
Module 5 is modified at adoption to further align the threshold for purchasing contracts requirements with TEC, §44.031.
Module 6, Compensatory Education, Guidelines, Financial Treatment, and an Auditing and Reporting System
Module 6, which provides information to assist school districts and charter schools with using the state compensatory education allotment, is deleted because HB 2, 89th Texas Legislature, Regular Session, 2025, repealed TEC, §48.104(j-1) and (k)-(o), which set requirements for using the allotment.
SUMMARY OF COMMENTS AND AGENCY RESPONSES: The public comment period on the proposal began February 27, 2026, and ended March 20, 2026. No public comments were received.
STATUTORY AUTHORITY. The amendment is adopted under TEC, §7.055(b)(32), which requires the commissioner of education to perform duties in connection with the public school accountability system as prescribed by TEC, Chapters 39 and 39A; TEC, §44.001(a), which requires the commissioner to establish advisory guidelines relating to the fiscal management of a school district; TEC, §44.001(b), which requires the commissioner to report annually to the SBOE the status of school district fiscal management as reflected by the advisory guidelines and by statutory requirements; TEC, §44.007(a), which requires the board of trustees of each school district to adopt and install a standard school fiscal accounting system that conforms with generally accepted accounting principles; TEC, §44.007(b), which requires the accounting system to meet at least the minimum requirements prescribed by the commissioner, subject to review and comment by the state auditor; TEC, §44.007(c), which requires a record to be kept of all revenues realized and of all expenditures made during the fiscal year for which a budget is adopted. A report of the revenues and expenditures for the preceding fiscal year is required to be filed with the agency on or before the date set by the SBOE; TEC, §44.007(d), which requires each district, as part of the report required by TEC, §44.007, to include management, cost accounting, and financial information in a format prescribed by the SBOE in a manner sufficient to enable the board to monitor the funding process and determine educational system costs by district, campus, and program; and TEC, §44.008(b), which requires the independent audit to meet at least the minimum requirements and be in the format prescribed by the SBOE, subject to review and comment by the state auditor. The audit must include an audit of the accuracy of the fiscal information provided by the district through the Texas Student Data System Public Education Information Management System.
CROSS REFERENCE TO STATUTE. The amendment implements TEC, §§7.055(b)(32); 44.001(a) and (b); 44.007(a)-(d); and 44.008(b).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 1, 2026.
TRD-202602253
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Effective date: June 21, 2026
Proposal publication date: February 27, 2026
For further information, please call: (512) 475-1497