(a) Except as provided by Subsection (a-4), the commissioner shall adopt rules to evaluate school district and campus performance and assign each district and campus an overall performance rating of A, B, C, D, or F. In addition to the overall performance rating, the commissioner shall assign each district and campus a separate domain performance rating of A, B, C, D, or F for each domain under § 39.053(c). An overall or domain performance rating of A reflects exemplary performance. An overall or domain performance rating of B reflects recognized performance. An overall or domain performance rating of C reflects acceptable performance. An overall or domain performance rating of D reflects performance that needs improvement. An overall or domain performance rating of F reflects unacceptable performance. A district may not receive an overall or domain performance rating of A if the district includes any campus with a corresponding overall or domain performance rating of D or F. If a school district has been approved under § 39.0544 to assign campus performance ratings and the commissioner has not assigned a campus an overall performance rating of D or F, the commissioner shall assign the campus an overall performance rating based on the school district assigned performance rating under § 39.0544.
(a-1) For purposes of assigning an overall performance rating for a district or campus under Subsection (a), the commissioner shall:
(1) consider either the district’s or campus’s performance rating under the student achievement domain under § 39.053(c)(1) or the school progress domain under § 39.053(c)(2), whichever performance rating is higher, unless the district or campus received a performance rating of F in either domain, in which case the district or campus may not be assigned a performance rating higher than a B for the composite for the two domains; and
(2) attribute not less than 30 percent of the performance rating to the closing the gaps domain under § 39.053(c)(3).

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Terms Used In Texas Education Code 39.054


(a-2) The commissioner by rule may adopt procedures to ensure that a repeated performance rating of D or F or unacceptable in one domain, particularly performance that is not significantly improving, is reflected in the overall performance rating of a district or campus under this section or a campus under § 39.0544 and is not compensated for by a performance rating of A, B, or C in another domain.
(a-3) Not later than August 15 of each year, the following information shall be made publicly available as provided by rules adopted under this section:
(1) the performance ratings for each school district and campus; and
(2) if applicable, the number of consecutive school years of unacceptable performance ratings for each district and campus.
(a-4) Notwithstanding any other law, the commissioner may assign a school district or campus an overall performance rating of “Not Rated” if the commissioner determines that the assignment of a performance rating of A, B, C, D, or F would be inappropriate because:
(1) the district or campus is located in an area that is subject to a declaration of a state of disaster under Chapter 418, Government Code, and due to the disaster, performance indicators for the district or campus are difficult to measure or evaluate and would not accurately reflect quality of learning and achievement for the district or campus;
(2) the district or campus has experienced breaches or other failures in data integrity to the extent that accurate analysis of data regarding performance indicators is not possible;
(3) the number of students enrolled in the district or campus is insufficient to accurately evaluate the performance of the district or campus; or
(4) for other reasons outside the control of the district or campus, the performance indicators would not accurately reflect quality of learning and achievement for the district or campus.
(a-5) Notwithstanding any other law, an overall performance rating of “Not Rated” is not included in calculating consecutive school years of unacceptable performance ratings and is not considered a break in consecutive school years of unacceptable performance ratings for purposes of any provision of this code.
(b) For purposes of assigning school districts and campuses an overall and a domain performance rating under Subsection (a), the commissioner shall ensure that the method used to evaluate performance is implemented in a manner that provides the mathematical possibility that all districts and campuses receive an A rating.
(b-1) Consideration of the effectiveness of district programs under § 39.052(b)(2)(B) or (C):
(1) must:
(A) be based on data collected through the Public Education Information Management System (PEIMS) for purposes of accountability under this chapter; and
(B) include the results of assessments required under § 39.023; and
(2) may be based on the results of a special investigation conducted under § 39.003.
(c) Repealed by Acts 2017, 85th Leg., R.S., Ch. 807 (H.B. 22), Sec. 19(1), eff. September 1, 2017.
(d) Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094 , Sec. 22, eff. June 19, 2015.
(d-1) Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094 , Sec. 22, eff. June 19, 2015.
(e) Each annual performance review under this section shall include an analysis of the achievement indicators adopted under § 39.053, including Subsection (c) of that section, to determine school district and campus performance in relation to standards established for each indicator.