(a) The standards and thresholds established by the commissioner of education under Texas Education Code (TEC), §48.110(b)(1)-(3); (c); (f)(1)(A) and (B), (2)(A) and (B), and (3)(A) and (B); and (g), shall be used to calculate annual college, career, or military readiness outcomes bonuses for school districts and open-enrollment charter schools.
(b) The threshold percentages of annual graduates who demonstrate college, career, or military readiness as provided in subsection (c) of this section for each of the following cohorts are as follows:
  (1) 11% of annual graduates who are educationally disadvantaged;
  (2) 24% of annual graduates who are not educationally disadvantaged; and
  (3) 0% of annual graduates who are enrolled in a special education program under TEC, Chapter 29, Subchapter A, regardless of whether the annual graduates are educationally disadvantaged.
(c) An annual graduate demonstrates:
  (1) college readiness if the annual graduate:
    (A) both:
      (i) achieves college readiness standards used for accountability purposes under TEC, Chapter 39, on the ACT, the SAT, or an assessment instrument designated by the Texas Higher Education Coordinating Board (THECB) under TEC, §51.334; and
      (ii) enrolls at a postsecondary educational institution by the tenth instructional day of the fall semester immediately following high school graduation; or
    (B) earns an associate degree by August 31 immediately following high school graduation;
  (2) career readiness if the annual graduate:
    (A) achieves college readiness standards used for accountability purposes under TEC, Chapter 39, on the ACT, the SAT, or an assessment instrument designated by THECB under TEC, §51.334; and
    (B) earns an industry-based certification or a level I or level II certificate by August 31 immediately following high school graduation; and
  (3) military readiness if the annual graduate enlists in the armed forces of the United States or the Texas National Guard by December 31 immediately following high school graduation.
(d) Each year, the commissioner shall determine for each school district and open-enrollment charter school the minimum number of annual graduates in each cohort described by subsection (b) of this section who would have to demonstrate college, career, or military readiness as described by subsection (c) of this section in order for the district or charter school to achieve a percentage of college, career, or military readiness for that cohort equal to the threshold percentage established for that cohort under subsection (b) of this section. Each year, the number of annual graduates in excess of the threshold percentage for each cohort provided in subsection (b)(1)-(3) of this section will be used to calculate college, career, or military readiness outcomes bonus funding for the applicable fiscal year.
(e) Each June, beginning in June 2021, the Texas Education Agency (TEA) shall supply school districts and open-enrollment charter schools with a preliminary College, Career, or Military Readiness Outcomes Bonus Student Listing that provides the data used by TEA to calculate preliminary funding for the upcoming school year.
  (1) Upon release of the preliminary listing, school districts and open-enrollment charter schools have 30 days to file an appeal of student-level data. School districts and open-enrollment charter schools must file an appeal and submit all supporting documentation within 30 days of the release of the preliminary listing.
  (2) An appeal must be filed by following the instructions provided with the release of the student listing. The basis for appeals should be a data or calculation error attributable to TEA or a testing contractor.
  (3) The appeals process is not a permissible method to correct data that were inaccurately reported to TEA by the school district or open-enrollment charter school. A school district or open-enrollment charter school that submits inaccurate data must follow the procedures and timelines for resubmitting data as specified in the Texas Education Data Standards. Appeals from school districts and open-enrollment charter schools that missed data resubmission window opportunities will be denied.
  (4) Decisions regarding appeals are final and not subject to further appeal.
  (5) Due to the delay in data availability for enrollment in institutions of higher education (IHEs), preliminary College, Career, or Military Readiness Outcomes Bonus Student Listings will not include IHE enrollment. For 2019 annual graduates, TEA will use a two-year IHE enrollment average for each school district. Beginning with 2020 annual graduates, TEA will use a three-year IHE enrollment average for each school district.
  (6) Each year, upon receipt of IHE enrollment data, TEA will reconcile College, Career, or Military Readiness Outcomes Bonus Student Listings with actual enrollment data for the applicable graduating class. Upon reconciliation, the college, career, or military readiness outcomes bonus funding will be updated for the applicable fiscal year.
(f) Due to discrepancies between annual enlistment counts for Texas military enlistees aged 17-19 released by the United States Department of Defense and Texas Student Data System Public Education Information Management System military enlistment data for 2017 and 2018 annual graduates, TEA will exclude military enlistment data from College, Career, or Military Readiness Outcomes Bonus Student Listings as provided in subsection (e) of this section until such data can be obtained directly from the United States Armed Forces. Upon receipt of such data, previously released final College, Career, or Military Readiness Outcomes Bonus Student Listings will be updated to include military enlistment data. When the final College, Career, or Military Readiness Outcomes Bonus Student Listings are updated, as provided in this subsection, the number of annual graduates in excess of the threshold percentage for each cohort provided in subsection (b)(1)-(3) of this section will be updated and used to recalculate college, career, or military readiness outcomes bonus funding for the 2019-2020 fiscal year and applicable future fiscal years.

Source Note: The provisions of this §74.1007 adopted to be effective March 23, 2021, 46 TexReg 1735; amended to be effective January 25, 2022, 47 TexReg 151