(a) The provisions of Texas Education Code (TEC), Chapters 39 and 39A, and this subchapter shall be construed and applied to achieve the purposes of accreditation sanctions, which are specified in §97.1053 of this title (relating to Purpose).
(b) If the commissioner of education finds that a district or campus does not satisfy the accreditation criteria under TEC, §39.051 and §39.052, the academic performance standards under TEC, §39.054, or any financial accountability standard as determined by the commissioner, the commissioner may lower the district's accreditation status, academic accountability rating, or financial accountability rating, as applicable, and take appropriate action under this subchapter.
(c) Regardless of whether the commissioner lowers a district's status or rating under subsection (b) of this section, the commissioner may take action under TEC, Chapters 39 and 39A, or this section if the commissioner determines that the action is necessary to improve any area of performance by the district or campus.
(d) Regardless of whether a district has satisfied the accreditation criteria, if for two consecutive school years, including the current school year, a district has had a conservator or management team assigned, the commissioner may appoint a board of managers, a majority of whom must be residents of the district, to exercise the powers and duties of the board of trustees. For purposes of this subsection, a school year begins on the first day of instruction and includes any portion of the school year.
(e) Subject to subsections (h)-(k) of this section, once the commissioner takes action under this subchapter, the commissioner may impose on the district or campus any other sanction under TEC, Chapter 39 or 39A, or this subchapter, singly or in combination, to the extent the commissioner determines is reasonably required to achieve the purposes specified in §97.1053 of this title.
(f) In determining whether to impose a particular sanction under TEC, Chapters 39 and 39A, or this subchapter, the commissioner may consider the costs and logistical concerns of the district but shall give primary consideration to the best interest of the district's students. The sanction selected shall be reasonably calculated to address the district's or campus' deficiencies immediately or within a reasonable time, in the best interest of its present and future students. The following shall be considered as being contrary to the best interests of the district's students:
  (1) inefficient or ineffectual use of district funds or property;
  (2) failure to adequately account for funds;
  (3) receipt of a substantial over-allocation of funds for which the district has failed to plan prudently in light of its obligation to repay the funds under TEC, §42.258; and
  (4) inability to implement effective change to improve the performance of students in the district or at the campus.
(g) In determining whether to impose a particular sanction under TEC, Chapters 39 and 39A, or this subchapter based on resource allocation practices as authorized by TEC, §39.003(a)(12) and (d) and §39.0821, the commissioner shall consider the factors specified in §97.1053 of this title.
(h) The commissioner shall notify the school district or open-enrollment charter school in writing of a sanction imposed under this subchapter or §100.1023 of this title (relating to Intervention Based on Charter Violations). The notice must state the basis for finding that the district or open-enrollment charter school does not satisfy the applicable criteria as indicated in this subchapter or §100.1023 of this title. The finding(s) may be made in the notice or in a final investigative report or based on a final investigative report.
(i) If a finding is made for the first time in the notice required by subsection (h) of this section, the Texas Education Agency shall comply with Chapter 157, Subchapter EE, Division 1, of this title (relating to Informal Review) with respect to the new finding.
(j) A determination under this section must be made in writing and may be included in a written notice under subsection (h) of this section. The determination may be made in the notice or in a final investigative report or based on a final investigative report. A determination under this section may be based on a report on the progress of a prior action under this subchapter.
(k) The commissioner shall annually review a sanction imposed under subsection (h) of this section and shall increase the sanction, as required by TEC, §39A.901. The commissioner shall quarterly review the need for a conservator or a management team imposed under this subchapter, as required by TEC, §39A.003. If reviews are required under both TEC, §39A.901 and §39A.003, a quarterly review under TEC, §39A.003, may satisfy the annual review under TEC, §39A.901. An annual or quarterly review is not subject to the requirements of this section.

Source Note: The provisions of this §97.1057 adopted to be effective January 6, 2008, 33 TexReg 150; amended to be effective July 28, 2010, 35 TexReg 6523; amended to be effective February 5, 2015, 40 TexReg 437; amended to be effective January 28, 2018, 43 TexReg 452; amended to be effective January 11, 2022, 47 TexReg 26