(a) The commissioner shall adopt a set of indicators of the quality of learning and achievement, including the indicators under Subsection (c). The commissioner periodically shall review the indicators for the consideration of appropriate revisions.
(a-1) The indicators adopted by the commissioner under Subsection (a) must measure and evaluate school districts and campuses with respect to:
(1) improving student preparedness for success in:
(A) subsequent grade levels; and
(B) entering the workforce, the military, or postsecondary education;
(2) reducing, with the goal of eliminating, student academic achievement differentials among students from different racial and ethnic groups and socioeconomic backgrounds; and
(3) informing parents and the community regarding campus and district performance.

(b) Performance on the achievement indicators adopted under Subsection (c) shall be compared to state-established standards. The indicators must be based on information that is disaggregated by race, ethnicity, and socioeconomic status.
(c) School districts and campuses must be evaluated based on three domains of indicators of achievement adopted under this section that include:
(1) in the student achievement domain, indicators of student achievement that must include:
(A) for evaluating the performance of districts and campuses generally:
(i) an indicator that accounts for the results of assessment instruments required under Sections 39.023(a), (c), and (l), as applicable for the district and campus, including the results of assessment instruments required for graduation retaken by a student, aggregated across grade levels by subject area, including:
(a) for the performance standard determined by the commissioner under § 39.0241(a), the percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area; and
(b) for the college readiness performance standard as determined under § 39.0241, the percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area; and
(ii) an indicator that accounts for the results of assessment instruments required under § 39.023(b), as applicable for the district and campus, including the percentage of students who performed satisfactorily on the assessment instruments, as determined by the performance standard adopted by the agency, aggregated across grade levels by subject area; and
(B) for evaluating the performance of high school campuses and districts that include high school campuses, indicators that account for:
(i) students who satisfy the Texas Success Initiative (TSI) college readiness benchmarks prescribed by the Texas Higher Education Coordinating Board under § 51.334 on an assessment instrument in reading or mathematics designated by the coordinating board under that section;
(ii) students who satisfy relevant performance standards on advanced placement tests or similar assessments;
(iii) students who earn dual course credits in the dual credit courses;
(iv) students who enlist in the armed forces of the United States or the Texas National Guard;
(v) students who earn industry certifications;
(vi) students admitted into postsecondary industry certification programs that require as a prerequisite for entrance successful performance at the secondary level;
(vii) students whose successful completion of a course or courses under § 28.014 indicates the student’s preparation to enroll and succeed, without remediation, in an entry-level general education course for a baccalaureate degree or associate degree;
(viii) students who successfully met standards on a composite of indicators that through research indicates the student’s preparation to enroll and succeed, without remediation, in an entry-level general education course for a baccalaureate degree or associate degree;
(ix) high school graduation rates, computed in accordance with standards and definitions adopted in compliance with the Every Student Succeeds Act (20 U.S.C. § 6301 et seq.) subject to the exclusions provided by Subsections (g), (g-1), (g-2), (g-3), and (g-4);
(x) students who successfully completed an OnRamps dual enrollment course;
(xi) students who successfully completed a practicum or internship approved by the State Board of Education;
(xii) students who are awarded an associate degree; and
(xiii) students who successfully completed a program of study in career and technical education;
(2) in the school progress domain, indicators for effectiveness in promoting student learning, which must include:
(A) for assessment instruments, including assessment instruments under Subdivisions (1)(A)(i) and (ii), the percentage of students who met the standard for improvement, as determined by the commissioner; and
(B) for evaluating relative performance, the performance of districts and campuses compared to similar districts or campuses; and
(3) in the closing the gaps domain, the use of disaggregated data to demonstrate the differentials among students from different racial and ethnic groups, socioeconomic backgrounds, and other factors, including:
(A) students formerly receiving special education services;
(B) students continuously enrolled; and
(C) students who are mobile.
(c-1) An indicator adopted under Subsection (c) that would measure improvements in student achievement cannot negatively affect the commissioner’s review of a school district or campus if that district or campus is already achieving at the highest level for that indicator.
(c-2) The commissioner by rule shall determine a method by which a student’s performance may be included in determining the performance rating of a school district or campus under § 39.054 if, before the student graduates, the student:
(1) satisfies the Texas Success Initiative (TSI) college readiness benchmarks prescribed by the Texas Higher Education Coordinating Board under § 51.334 on an assessment instrument designated by the coordinating board under that section; or
(2) performs satisfactorily on an assessment instrument under § 39.023(c), notwithstanding Subsection (d) of this section.
(c-3) Any standard for improvement determined by the commissioner as described by Subsection (c)(2)(A) must allow for appropriately crediting a student for growth if the student performs at the highest achievement standard in the previous and current school year.
(d) For purposes of Subsection (c), the commissioner by rule shall determine the period within which a student must retake an assessment instrument for that assessment instrument to be considered in determining the performance rating of the district under § 39.054.
(d-1) In aggregating results of assessment instruments across grade levels by subject in accordance with Subsection (c)(1)(A)(i), the performance of a student enrolled below the high school level on an assessment instrument required under § 39.023(c) is included with results relating to other students enrolled at the same grade level.
(e) For purposes of Subsection (c)(3)(A), a student formerly receiving special education services means a student whose enrollment information:
(1) for the preceding school year, as reported through the Public Education Information Management System (PEIMS), indicates the student was enrolled at the campus and was participating in a special education program; and
(2) for the current school year, as reported through the Public Education Information Management System (PEIMS) and as reported on assessment instruments administered to the student under § 39.023, indicates the student is enrolled at the campus and is not participating in a special education program.
(f) Annually, the commissioner shall define the state standard for the current school year for each achievement indicator adopted under this section. In consultation with educators, parents, and business and industry representatives, as necessary, the commissioner shall establish and modify standards to continuously improve student performance to achieve the goals of eliminating achievement gaps based on race, ethnicity, and socioeconomic status and to ensure this state is a national leader in preparing students for postsecondary success.
(g) In computing dropout and completion rates such as high school graduation rates under Subsection (c)(1)(B)(ix), the commissioner may not consider as a dropout a student whose failure to attend school results from:
(1) the student’s expulsion under § 37.007; and
(2) as applicable:
(A) adjudication as having engaged in delinquent conduct or conduct indicating a need for supervision, as defined by § 51.03, Family Code; or
(B) conviction of and sentencing for an offense under the Penal Code.
(g-1) In computing dropout and completion rates such as high school graduation rates under Subsection (c)(1)(B)(ix), the commissioner shall exclude:
(1) students who are ordered by a court to attend a high school equivalency certificate program but who have not yet earned a high school equivalency certificate;
(2) students who were previously reported to the state as dropouts, including a student who is reported as a dropout, reenrolls, and drops out again, regardless of the number of times of reenrollment and dropping out;
(3) students in attendance who are not in membership for purposes of average daily attendance;
(4) students whose initial enrollment in a school in the United States in grades 7 through 12 was as an unschooled asylee or refugee as defined by § 39.027(a-1);
(5) students who are detained at a county pre-adjudication or post-adjudication juvenile detention facility and:
(A) in the district exclusively as a function of having been detained at the facility but are otherwise not students of the district in which the facility is located; or
(B) provided services by an open-enrollment charter school exclusively as the result of having been detained at the facility;
(6) students who are incarcerated in state jails and federal penitentiaries as adults and as persons certified to stand trial as adults; and
(7) students who have suffered a condition, injury, or illness that requires substantial medical care and leaves the student:
(A) unable to attend school; and
(B) assigned to a medical or residential treatment facility.
(g-2) In computing completion rates such as high school graduation rates under Subsection (c)(1)(B)(ix), the commissioner shall exclude students who:
(1) are at least 18 years of age as of September 1 of the school year as reported for the fall semester Public Education Information Management System (PEIMS) submission and have satisfied the credit requirements for high school graduation;
(2) have not completed their individualized education program under 19 T.A.C. Section 89.1070(b)(2) and the Individuals with Disabilities Education Act (20 U.S.C. § 1400 et seq.); and
(3) are enrolled and receiving individualized education program services.
(g-3) In the computation of dropout and completion rates such as high school graduation rates under Subsection (c)(1)(B)(ix), a student who is released from a juvenile pre-adjudication secure detention facility or juvenile post-adjudication secure correctional facility and fails to enroll in school or a student who leaves a residential treatment center after receiving treatment for fewer than 85 days and fails to enroll in school may not be considered to have dropped out from the school district or campus serving the facility or center unless that district or campus is the one to which the student is regularly assigned. The agency may not limit an appeal relating to dropout computations under this subsection.
(g-4) For purposes of the computation of dropout and completion rates such as high school graduation rates under Subsection (c)(1)(B)(ix), the commissioner shall exclude a student who was reported as having dropped out of school under § 48.009(b-4), and the student may not be considered to have dropped out from the school district or campus in which the student was last enrolled.
(h) Each school district shall cooperate with the agency in determining whether a student is a dropout for purposes of accreditation and evaluating performance by school districts and campuses under this chapter.
(i) Each school district shall submit the data required for the indicators adopted under this section to the commissioner.