TITLE 19. EDUCATION

PART 2. TEXAS EDUCATION AGENCY

CHAPTER 150. COMMISSIONER'S RULES CONCERNING EDUCATOR APPRAISAL

The Texas Education Agency (TEA) adopts the repeal of §§150.1012 - 150.1014, and new §§150.1041 - 150.1043, concerning educator appraisal. The repeal of §§150.1012 - 150.1014 and new §150.1042 and §150.1043 are adopted without changes to the proposed text as published in the December 12, 2025 issue of the Texas Register (50 TexReg 7970) and will not be republished. New §150.1041 is adopted with changes to the proposed text as published in the December 12, 2025 issue of the Texas Register (50 TexReg 7970) and will be republished. The adopted repeals and new rules implement House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025, and establish requirements for enhanced teacher incentive allotment systems, modify teacher designation policies to account for new designation levels, and update teacher designation performance standards.

REASONED JUSTIFICATION: Texas Education Code (TEC), §21.3521, establishes a local optional teacher designation system and enhanced teacher incentive allotment designation, and TEC, §48.112, establishes a teacher incentive allotment. Section 150.1012 implements the statutes by establishing the requirements for school districts and charter schools to implement local teacher designation systems. Section 150.1013 implements the statutes by establishing designation requirements for National Board Certified teachers. Section 150.1014 implements the statutes by specifying performance standards for teacher designations.

New Chapter 150, Subchapter DD, establishes the commissioner of education's rules concerning educator appraisal and teacher designation systems under the Teacher Incentive Allotment (TIA). The adopted new rules expand the framework to support enhanced teacher incentive allotment designation systems, clarify eligibility and funding provisions, and align performance standards with statutory requirements under TEC, §21.3521 and §48.112.

Enhanced teacher incentive allotment systems will require an administrator evaluation component, which exceeds the scope of teacher appraisal. The adoption removes existing rules in Subchapter AA, Teacher Appraisal, and adds new Subchapter DD, Teacher Incentive Allotment, to reflect the evolution of the TIA program and consolidate provisions related to teacher designation systems. Specifically, the adoption repeals §§150.1012, 150.1013, and 150.1014 and creates new §§150.1041, 150.1042, and 150.1043.

Adopted new §150.1041 expands the definitions applicable to local optional teacher designation systems to include "core content areas," "Enhanced Teacher Incentive Allotment System," "school leaders," and "strategic compensation." These additions are necessary to implement the enhanced designation framework and support strategic staffing and compensation planning.

Adopted new §150.1041 expands the definition of designated teachers to include "acknowledged" and "nationally board certified" teachers in alignment with amendments to TEC, §21.3521.

Adopted new §150.1041(a)(2) revises the fee structure for system renewal to differentiate between school districts based on enrollment size and rural status, thereby aligning renewal costs with district capacity and geographic context. Non-rural school districts with enrollment under 1,000 students will pay the same reduced system renewal fee as rural districts.

Adopted new §150.1041(b) clarifies teacher designation eligibility requirements to account for the new designation level "acknowledged" and adds a redesignation provision for teachers whose designation is set to expire within one year. These changes are intended to ensure continuity of recognition for high-performing educators.

Adopted new §150.1041(b)(1)(A) and §150.1042(b)(1)(A) and (5) update the data element term "role ID" to "staff classification" and data element term "class role" to "classroom position." This aligns the rule with updates to Texas Student Data Standards (TSDS) descriptor tables.

As a result of public comment, at adoption new §150.1041(b)(1)(C) has been modified to provide a fourth-year redesignation pathway for acknowledged, recognized, and exemplary teachers; subparagraph (D) has been removed; and the following subparagraph has been relettered.

Adopted new §150.1041(c)(3) establishes criteria for school districts seeking an enhanced teacher incentive allotment designation, including implementation of strategic compensation systems, administrator appraisal components, and performance-based salary schedules. These provisions are designed to support districts in aligning compensation with educator effectiveness and student need. At adoption, the term "substantially" was added to §150.1041(c)(3)(A)(i) to add flexibility for unforeseen circumstances, and grammar and a citation were corrected in subsection (c)(3)(B)(i).

Adopted new §150.1041(d)(1)(K) requires districts to seek approval for modifications to enhanced teacher incentive allotment designation application components, ensuring that changes to strategic compensation plans are reviewed by TEA prior to implementation.

Adopted new §150.1041(f)(1) streamlines the system renewal criteria for local optional teacher designation systems by removing requirements for prior system approval or provisional approval. This simplifies the system renewal timeline for districts to align with the original application submission year.

Adopted new §150.1041(f)(2) incorporates clarifying language to delineate statutory spending requirements applicable to funds received for individual teacher designations versus those received for enhanced teacher incentive allotment systems.

Adopted new §150.1042(b)(2) sunsets the recognized designation for National Board Certified teachers effective August 1, 2026, and redesignates such teachers as nationally board certified to align with the updated designation level in TEC, §21.3521.

Adopted new §150.1042(b)(6) clarifies that school districts may not receive duplicate funding for teachers designated under both National Board and local designation systems, which aligns with prior policies for teachers with a current recognized designation.

Adopted new §150.1043(b)(1) establishes teacher observation and student growth performance standards for the new acknowledged level designation. The subsection also removes the teacher observation minimum proficiency score requirement for designation eligibility and expands access to teacher designations.

The adopted repeal and new rules are necessary to implement statutory changes, improve clarity and consistency in rule language, and support the continued development of high-quality teacher designation systems across Texas school districts.

SUMMARY OF COMMENTS AND AGENCY RESPONSES: The public comment period on the proposal began December 12, 2025, and ended January 12, 2026. Following is a summary of the public comments received and agency responses.

Comment: A Texas teacher commented that there is no policy requiring students of a teacher within a district to be given equitable exams, specifically the same format across eligible teacher groups, and expressed concern with potential favoritism in teacher performance data used to determine designations.

Response: The agency provides the following clarification. Local Optional Teacher Designation Systems must use valid, reliable, and comparable measures of student growth and are subject to data validation and TEA system approval. The agency will review whether additional guidance or monitoring related to comparability and conflicts of interest is needed. Allegations of misconduct should be directed to the appropriate reporting channels.

Comment: The Commit Partnership, Texas Public Charter Schools Association (TPCSA), and Educate Texas supported the proposed renewal fee structure to align non-rural, small districts with rural districts, removing barriers for small charters.

Response: The agency agrees. The agency will monitor impacts and consider future adjustments if warranted.

Comment: Educate Texas and Philanthropy Associates shared concern regarding removal of the minimum proficiency criteria from teacher observation performance standards. The commenters recommended reinstating a baseline (such as a minimum dimension score) or establishing guardrails (for example, no 1s; limited 2s) and encouraging local minimums in Local Optional Teacher Designation System plans.

Response: The agency disagrees. The proposal aims to broaden access to designations while maintaining rigor through overall performance standards and annual data validation. The agency has determined this rule change will empower appraisers to provide accurate reflections on teacher performance. For districts using an appraisal rubric other than the Texas Teacher Evaluation and Support System, numeric ratings below an identified proficiency marker may vary. This variation makes additional statewide baselines unfeasible. The agency will issue guidance and technical assistance to support establishing local minimum thresholds within Local Optional Teacher Designation System plans.

Comment: TPCSA and four school system administrators reported cash-flow strain because districts must pay Teacher Incentive Allotment stipends by August, while reimbursements from the Foundation School Program (FSP) occur in September. The commenters requested earlier Legislative Planning Estimate updates; early payments for significantly impacted districts; and a grace period beyond August 31 for expending funds. The commenters also asked that 2026-2027 estimates reflect House Bill 2 changes to avoid underfunding.

Response: The agency agrees that the timing of TIA payments could place a strain on some school districts and provides the following clarification. Under TEC, Chapter 48, allotment distribution and settle-up timing is governed by FSP processes. The agency will evaluate, considering existing legal authority, the feasibility of limited early payments or extended expenditure deadlines for smaller or significantly impacted districts.

Comment: The Commit Partnership, Educate Texas, Philanthropy Associates, and Rev Partnership supported a fourth-year redesignation pathway for master teachers and requested consistency for all designation levels to avoid lapses in designation and compensation. The commenters requested explicit timelines and district communication guidance.

Response: The agency agrees, and §150.1041(b)(1)(C) has been modified at adoption to provide a fourth-year redesignation pathway for acknowledged, recognized, and exemplary teachers. The agency will publish guidance to support district understanding of designation timelines and pathways to maintain designation status.

SUBCHAPTER AA. TEACHER APPRAISAL

19 TAC §§150.1012 - 150.1014

STATUTORY AUTHORITY. The repeals are adopted under TEC, §21.3521, as amended by HB 2, 89th Texas Legislature, Regular Session, 2025, which specifies that the commissioner of education shall ensure that local optional teacher designation systems meet the statutory requirements for the system; shall prioritize high needs campuses; shall enter into a memorandum of understanding with Texas Tech University regarding the assessment of local iterations of the local optional teacher designation system; shall periodically conduct evaluations of the effectiveness of the local optional teacher designation system; may adopt fees, which are exempted from the requirements of Texas Government Code, §2001.0045 and §2001.0221, to implement the local optional teacher designation system; may adopt rules to implement the local optional teacher designation system; and shall, using criteria developed by the commissioner, designate as enhanced teacher incentive allotment systems public schools school districts and open-enrollment charter schools that implement comprehensive school evaluation systems; and TEC, §48.112, as amended by HB 2, 89th Texas Legislature, Regular Session, 2025, which requires the commissioner to designate rural campuses and annually make available to the public a list of campuses with projected allotment amounts per teacher designation at each campus; and assign an average point value to a student enrolled in the Texas School for the Deaf and the Texas School for the Blind and Visually Impaired.

CROSS REFERENCE TO STATUTE. The repeals implement TEC, §21.3521 and §48.112, as amended by House Bill 2, 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 March 30, 2026.

TRD-202601397

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Effective date: April 19, 2026

Proposal publication date: December 12, 2025

For further information, please call: (512) 475-1497

SUBCHAPTER DD. TEACHER INCENTIVE ALLOTMENT

19 TAC §§150.1041 - 150.1043

STATUTORY AUTHORITY. The new sections are adopted under TEC, §21.3521, as amended by HB 2, 89th Texas Legislature, Regular Session, 2025, which specifies that the commissioner of education shall ensure that local optional teacher designation systems meet the statutory requirements for the system; shall prioritize high needs campuses; shall enter into a memorandum of understanding with Texas Tech University regarding the assessment of local iterations of the local optional teacher designation system; shall periodically conduct evaluations of the effectiveness of the local optional teacher designation system; may adopt fees, which are exempted from the requirements of Texas Government Code, §2001.0045 and §2001.0221, to implement the local optional teacher designation system; may adopt rules to implement the local optional teacher designation system; and shall, using criteria developed by the commissioner, designate as enhanced teacher incentive allotment systems public schools school districts and open-enrollment charter schools that implement comprehensive school evaluation systems; and TEC, §48.112, as amended by HB 2, 89th Texas Legislature, Regular Session, 2025, which requires the commissioner to designate rural campuses and annually make available to the public a list of campuses with projected allotment amounts per teacher designation at each campus; and assign an average point value to a student enrolled in the Texas School for the Deaf and the Texas School for the Blind and Visually Impaired.

CROSS REFERENCE TO STATUTE. The new sections implement Texas Education Code, §21.3521 and §48.112, as amended by House Bill 2, 89th Texas Legislature, Regular Session, 2025.

§150.1041. Local Optional Teacher Designation System.

(a) General provisions.

(1) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.

(A) Beginning of course--The first nine weeks of a year-long course or the first six weeks of a semester course.

(B) Charter school--A Texas public school that meets one of the following criteria:

(i) is operated by a charter holder under an open-enrollment charter granted either by the State Board of Education or commissioner of education pursuant to Texas Education Code (TEC), §12.101, identified with its own county-district number;

(ii) has a charter granted under TEC, Chapter 12, Subchapter C, and is eligible for benefits under TEC, §11.174 and §48.252;

(iii) has a charter granted under TEC, §29.259, and Human Resources Code, §221.002; or

(iv) has a charter granted under TEC, §11.157(b).

(C) Classroom teacher--An educator, as defined by TEC, §5.001, who is employed by a school district and who, not less than an average of four hours each day, teaches in an academic instructional setting or a career and technical instructional setting. This term does not include an educational aide or a full-time administrator.

(D) Core content areas--Language arts, mathematics, social studies, and science courses.

(E) Data capture year--The school year in which the teacher observation and student growth measure data is collected based on the accepted local teacher designation system.

(F) Designated teacher--An acknowledged, exemplary, master, nationally board certified, or recognized teacher.

(G) Eligible teaching assignment--An assignment based on campus, subject taught, or grade taught.

(H) End of course--The last 12 weeks of a year-long course or the last six weeks of a semester course.

(I) Enhanced Teacher Incentive Allotment System--A designation awarded to a school district implementing an approved strategic compensation system that provides for increased Teacher Incentive Allotment funding.

(J) National Board certification--Certification issued by the National Board for Professional Teaching Standards.

(K) Provisional approval--Conditional approval of a school district local optional teacher designation system or enhanced teacher incentive allotment system that would require resubmission of system review, data validation, additional required documentation, video submission, and/or other technical assistance for further data submission.

(L) Reliability--The degree to which an instrument used to measure teacher performance and student growth produces stable and consistent results.

(M) Rural--A campus within a school district with fewer than 5,000 enrolled students that is categorized as one of the following:

(i) rural, non-metropolitan: stable, or non-metropolitan: fast-growing district type by the Texas Education Agency (TEA);

(ii) a campus within a school district with fewer than 5,000 enrolled students categorized as rural by the National Center for Education Statistics; or

(iii) a campus defined in TEC, §48.112(a)(1).

(N) School district--The definition of a school district includes charter schools as defined in subparagraph (B) of this paragraph.

(O) School leaders--Campus administrators, including principals and assistant principals.

(P) Strategic compensation--A performance-based human resources strategy that entails the design and implementation of a compensation plan that is aligned with the objectives and culture of a school district.

(Q) Student growth--Student academic progress achieved in response to the pedagogical practices of teachers, as measured at the individual teacher level by one or more measures of student growth aligned to the standards of the course.

(R) Teacher category--One or more eligible teaching assignments evaluated with the same teacher observation rubric, student growth measure, and optional components and weighting as defined in a district's local designation system.

(S) Teacher observation--One or more observations of a teacher instructing students for a minimum of 45 minutes or multiple observations that aggregate to at least 45 minutes.

(T) Texas Student Data System (TSDS)--Data collected annually during the Class Roster Winter Submission.

(U) Validity--The degree to which an instrument used to measure teacher performance and student growth measures what it is intended to measure.

(2) Fees for teacher incentive allotment teacher designation and system renewal. A school district requesting approval of a teacher designation system or renewal of such a system shall pay the applicable fees listed in subparagraphs (A) and (B) of this paragraph. The following fees must be paid by the district and cannot be paid by the teachers submitted for designation:

(A) a $500 fee for each teacher submitted for designation to TEA; and

(B) a $2,500 system renewal fee for districts with enrollment of less than 1,000 students in the prior school year, or districts where all campuses meet the definition of rural pursuant to paragraph (1)(M) of this subsection the year prior to renewal application submission or a $10,000 system renewal fee for districts where not all campuses meet the definition of rural pursuant to paragraph (1)(M) of this subsection.

(b) Teacher eligibility.

(1) Teachers eligible to earn or receive designations under an approved local optional teacher designation system must meet the following requirements:

(A) the teacher is employed by the recommending school district or charter partner pursuant to subsection (a)(1)(B)(ii) or (iv) of this section in a staff classification coded as 087 (Teacher) and corresponding classroom position of 01, 02, or 03, if applicable, in TSDS for 90 days at 100% of the day (equivalent to four and one-half months or a full semester) or 180 days at 50-99% of the day and compensated for that employment. A charter partner operating under subsection (a)(1)(B)(ii) or (iv) of this section is required to report teacher-level data in TSDS or provide teacher-level data to its partner school district for reporting by the district in TSDS;

(B) the teacher was employed by the recommending school district or charter partner pursuant to subsection (a)(1)(B)(ii) or (iv) of this section during the year the teacher's effectiveness was collected in alignment with the recommended designation;

(C) the teacher is not currently designated, unless the teacher is being recommended for a higher designation or the current designation, which is not subject to reclassification at a lower designation level, is scheduled to expire within one year; and

(D) the teacher does not have a suspension, revocation, permanent surrender, or surrender of a certificate issued by the State Board for Educator Certification (SBEC) and is not found on the registry of persons not eligible for employment in public schools under TEC, §22.092, and Chapter 153, Subchapter EE, of this title (relating to Commissioner's Rules Concerning Registry of Persons Not Eligible for Employment in Public Schools).

(2) School districts are eligible to receive funding for each designated teacher if the teacher meets the requirements in paragraph (1)(A) of this subsection for each district. TEA may exercise administrative discretion to determine the eligibility of a teacher if a district disputes TSDS data. Disputes must be received by TEA by the second Friday in May each year; however, TEA may exercise administrative discretion to allow disputes to be considered outside of this timeline.

(1) The following provisions apply to applications submitted under this section.

(A) If TEA determines that an application or resubmission is incomplete, TEA may provide the applicant with notice of the deficiency and an opportunity to submit missing required information. If the missing required information is not submitted within seven business days after the original submission deadline, the application will be denied.

(B) If TEA determines that a system application does not meet the standards established under TEC, §21.3521, and this section, TEA shall permit the applicant to resubmit the application by June 30. If no resubmission is made by the deadline, the application will be denied.

(C) Applicants that are determined to meet the standards established under TEC, §21.3521 and §48.112, and the requirements of the statutorily based framework provided in the figure in this subparagraph shall be approved.

Figure: 19 TAC §150.1041(c)(1)(C) (.pdf)

(D) Applications that are determined to meet the standards established under TEC, §21.3521 and §48.112, and this section shall be approved for an initial term of five years. Applications that are determined to need ongoing support may result in provisional approval.

(2) The application shall include the following for each eligible teaching assignment:

(A) components of a local system for issuing designations, including:

(i) a teacher observation component that contains:

(I) a plan for calibration, using the rubric approved under subclause (II) of this clause, that includes congruence among appraisers, a review of teacher observation data and the correlation between teacher observation and student growth data, and implementation of next steps; and

(II) an approved teacher observation rubric including the Texas Teacher Evaluation and Support System or a pilot thereof, Marzano's Teacher Evaluation Model and rubric created by the National Institute for Excellence in Teaching and The Danielson Group, or another rubric that is based on observable, job-related behaviors that are described with progressive descriptors for each dimension, including alignment to §149.1001 of this title (relating to Teacher Standards) and a clear proficiency indicator. A school district may be required to provide teacher observation videos if the ratings cannot be verified from the data submitted; and

(ii) a specified student growth component by measure and/or assessment that:

(I) if using a student learning objective, is aligned to the Texas Student Learning Objectives (SLO) process described on the TEA website for SLOs at https://texasslo.org;

(II) if using a portfolio method, demonstrates that student work is aligned to the standards of the course, demonstrates mastery of standards, utilizes a skills proficiency rubric, and includes criteria for scoring various artifacts;

(III) if using school district- or teacher-created assessments, is aligned to the standards of the course and conforms to a district rubric for district- or teacher-created assessments. A school district must approve district- or teacher-created assessments for the purpose of determining student growth by using a district process and rubric for approval of such assessments. Assessments must measure beginning of course to end of course or from end of course from the previous course to end of current course;

(IV) if using a school district- or teacher-created assessment in conjunction with a third-party assessment, is aligned to the standards of the course and conforms to a district rubric for district- or teacher-created assessments. A school district must approve district- or teacher-created assessments for the purpose of determining student growth by using a district process and rubric for approval of such assessments. Assessments must measure beginning of course to end of course or from end of course from the previous course to end of current course;

(V) if using third-party assessments with third-party accompanying growth targets, is aligned to the standards for the course and contains questions that cover a range of student skill levels. Assessments must measure beginning of course to end of course or from end of course from the previous course to end of current course; or

(VI) if using third-party assessments with district-created growth targets, is aligned to the standards of the course and contains questions that cover a range of student skill levels. Assessments must measure beginning of course to end of course or from end of course from the previous course to end of current course. Mid-year data may be used in instances where the student was not present for the beginning of course administration;

(B) test administration processes for all student growth that will lead to validity and reliability of results, including:

(i) test security protocols;

(ii) testing windows;

(iii) testing accommodations; and

(iv) annual training for test administrators; and

(C) data for all teachers in eligible teaching assignments, including student growth, and observation data for all teachers in eligible teaching assignments for the data capture year in alignment with TEC, §21.351 or §21.352. Multi-year data shall include student growth and observation data from the same year and teacher category. Single-year data shall include student growth and observation data from the same teacher category. TEA may exercise administrative discretion regarding the requirements of this subparagraph in situations in which data is difficult to provide due to circumstances beyond a district's control and the district would otherwise be unable to provide sufficient data for application consideration.

(3) The application for enhanced teacher incentive allotment designation shall include:

(A) teacher evaluation components:

(i) an approved local designation system that includes substantially all teaching assignments; and

(ii) local evaluation components in addition to those required under paragraph (2) of this subsection;

(B) campus administrator evaluation components:

(i) an approved administrator appraisal system including the Texas Principal Evaluation and Support System or a pilot thereof, or another rubric that is based on observable, job-related behaviors that are described with progressive descriptors for each dimension, including alignment to §149.2001 of this title (relating to Principal Standards) and a clear proficiency indicator;

(ii) student growth in alignment with the district or campuses local designation system with prioritization of core content areas; and

(iii) districts may include optional components that provide evidence of campus administrator effectiveness;

(C) strategic staffing plan demonstrating an approach to teacher assignment based on student need, including strategic scheduling for early grades and high-needs campuses and students;

(D) a compensation plan for teachers and campus administrators that is based on performance and includes, at minimum:

(i) methods for determining and defining teacher and campus administrator effectiveness as it relates to performance-based compensation decisions;

(ii) placement guidance for newly hired teachers, with performance as a consideration based on teacher incentive allotment eligibility or a preparation pathway;

(iii) performance-based salary schedule and criteria for salary increases for all teachers and campus administrators; and

(iv) district attestation and school board approval to limit across-the-board salary increases for classroom teachers, except for periodic changes due to significant inflation; and

(E) evidence of implementing a strategic compensation system, including, but not limited to:

(i) a board-approved compensation plan;

(ii) a district strategic compensation plan; and

(iii) a salary schedule by employee and effectiveness levels.

(d) System expansion, spending modifications, and changes.

(1) School districts must apply for approval through the system application process the year prior to implementation if:

(A) adding new eligible teaching assignments or campuses (if started with less than all campuses in the district);

(B) adding a new teacher observation rubric;

(D) adding new student growth measures;

(E) changing the student growth measure used by an eligible teaching assignment;

(F) adding or changing the third-party assessment used in a student growth measure;

(G) adding or changing the type of assessment used in a student growth measure;

(H) removing a student growth measure used by an eligible teaching assignment;

(I) removing an eligible teaching assignment;

(J) modifying a district's spending plan. TEA may exercise administrative discretion to allow spending modifications outside of the approval timeline outlined in this subsection; or

(K) modifying a district's application for enhanced teacher incentive allotment designation under subsection (c)(3) of this section.

(2) TEA may exercise administrative discretion to allow system changes outlined in this subsection outside of the approval timeline outlined in this subsection in situations in which TEA determines that the application timeline is unfeasible due to circumstances beyond a district's control, causing the district to be unable to implement its current system with fidelity.

(e) Monitoring and annual program submission of approved local designation systems and the basis for enhanced teacher incentive allotment system designation.

(1) For the program submission, approved school districts shall submit the following information regarding a local teacher designation system and associated spending:

(A) the distribution of allotment funds from the previous school year in accordance with the funding provisions of subsection (g) of this section;

(B) a response and implementation plan to annual surveys developed by TEA administered to teachers, campus principals, and human resources personnel gauging the perception of a school district's local designation system; and

(C) teacher observations and student growth measure data for all teachers in eligible teaching assignments if school districts are submitting new teacher designations collected in alignment with §150.1003(b)(5) and (l)(3) of this title (relating to Appraisals, Data Sources, and Conferences). TEA reserves the right to request data for the purposes of performance evaluation and investigation based on data review outcomes. TEA may exercise administrative discretion in circumstances where data is difficult to provide and a district would otherwise be unable to provide sufficient data for application consideration.

(2) Outcomes of the annual program submission may lead to a review, pursuant to TEC, §48.272(e), and subject to the period of review limitation in TEC, §48.272(f), of the local optional designation system that may be conducted at any time at the discretion of TEA staff.

(f) Continuing approval and renewal.

(1) Local optional teacher designation systems are subject to review at least once every five years. However, a review may be conducted at any time at the discretion of TEA. The renewal application is required in a district's fourth year after the system application is accepted and will follow the process and requirements outlined in subsection (c) of this section. Charter management organizations that operate approved systems with multiple campus district numbers shall submit an application for each system at the time of required renewal.

(2) Approval of local optional designation systems and enhanced teacher incentive allotment systems is voidable by TEA for one or more of the following reasons:

(A) failure to fulfill all local optional designation system requirements as defined in this section;

(B) failure to comply with annual program submission requirements;

(D) failure to implement the local optional teacher designation system or strategic compensation plan as approved by TEA;

(E) failure to remove school district employees from the designation determination process who have a conflict of interest and acted in bad faith to influence designations; or

(F) at the discretion of the commissioner.

(3) Approval of individual teacher designations are voidable by TEA for one or more of the following reasons:

(A) a teacher has not fulfilled all designation requirements;

(B) the school district at which the designation was earned has had its local optional designation system voided;

(C) the National Board for Professional Teaching Standards revokes a National Board certification that provided the basis for a teacher's designation;

(D) the suspension, revocation, permanent surrender, or surrender of a certificate issued by the SBEC to a designated teacher;

(E) the addition of the designated teacher to the registry of persons not eligible for employment in public schools under TEC, §22.092, and Chapter 153, Subchapter EE, of this title;

(F) the district issued a designation in bad faith by not removing a district employee from the designation determination process who had a conflict of interest; or

(G) at the discretion of the commissioner.

(g) Funding.

(1) State funding.

(A) School districts will receive teacher incentive allotment funds based on prior-year estimates. The final amount will be based on data from the current school year as provided in subparagraph (D) of this paragraph. Any difference from the estimated amount will be addressed as part of the Foundation School Program settle-up process according to the provisions in TEC, §48.272.

(B) A school district is eligible to earn the base allotment for each designated teacher assigned to a zero-enrollment campus, a campus with fewer than 20 students, a juvenile justice alternative education program, a disciplinary alternative education program, a residential facility, or central administration if the designated teacher meets the requirements in subsection (b)(2) of this section, plus the multiplier based on the school district's average student point value and rural status, if applicable.

(C) Funding for teachers who work at multiple campuses shall be calculated and split equally among the campuses where the employee is working in a role coded as 087 (Teacher) in TSDS at each campus.

(D) Designated teacher campus and district of employment shall be determined annually by data collected in TSDS.

(E) School districts shall annually verify and confirm teacher designations and corresponding allotments.

(F) TEA may exercise administrative discretion to redirect or recalculate funds to the district where the designated teacher works if a district disputes TSDS data. Disputes must be received by the second Friday in May each year; however, TEA may exercise administrative discretion to allow disputes to be considered outside of this timeline.

(G) The average point value and rural status for the Texas School for the Deaf and the Texas School for the Blind and Visually Impaired will be calculated by utilizing the home districts of the schools' students.

(2) Status and use of state funds. A school district that receives teacher incentive allotment funding must comply with the requirements of TEC, §48.112, including the requirement that at least 90% of each teacher-generated allotment must be used for compensation of teachers employed at the campus at which the teacher for whom the district received the allotment is employed. School districts that receive funding for designated teachers employed by the charter partner for charter partnerships pursuant to subsection (a)(1)(B)(ii) or (iv) of this section shall pass along at least 90% of the teacher incentive allotment funding and 100% of fees pursuant to subsection (a)(2) of this section paid by the charter partner to the charter partner. Charter partners and districts shall work together to ensure that the spending requirements of TEC, §48.112, are met.