House Bill 3 (HB 3) Implementation: Teacher Incentive Allotment

Date:  October 3, 2019
Subject: House Bill 3 (HB 3) Implementation: Teacher Incentive Allotment 
Category: Teacher Compensation
Next Steps:  Action Required of LEA:  Share with appropriate staff 


House Bill (HB) 3 was passed by the 86th Texas Legislature, 2019, and signed into law by Governor Abbott on June 11, 2019. The following areas within HB 3 specifically relate to the Teacher Incentive Allotment (TIA): 

  • Local Optional Teacher Designation System (TEC Sec. 21.3521)
  • Teacher Incentive Allotment (TEC Sec. 48.112)

Today, the agency released a HB 3 in 30 Teacher Incentive Allotment webinar focusing on these sections of the bill, which you can view at

Overview of the Teacher Incentive Allotment

  • Local Education Agencies (LEAs), if they choose, can designate high performing teachers as Master, Exemplary, or Recognized based on statewide performance descriptors for these designations. 
  • LEAs will receive $3,000 - $32,000 per year for every designated teacher they employ. 
  • LEAs receive greater funding for designated teachers who work on rural and/or high-needs campuses. 
  • At least 90% of the Teacher Incentive Allotment funds must be used on teacher compensation on the campus where the designated teacher works. The remaining funds could be used for costs associated with implementing the local designation system or to support teachers in obtaining designations.
  • National Board Certified Teachers will automatically earn a Recognized designation.
  • There will be fees associated with the designation system (and there are fees currently for teachers to obtain National Board Certification).  All fees are now reimbursed out of the Foundation School Program. 

The LEA funding per designation is listed below. The exact dollar amount an LEA would receive for a designated teacher depends on the level of designation, whether the school at which the teacher works is rural, and the level of socio-economic need at the school. The webinar referenced above provides step-by-step examples of how to calculate an allotment. 

  • Recognized: $3,000 - $9,000 
  • Exemplary: $6,000 - $18,000 
  • Master: $12,000 - $32,000 

Local Optional Designation System 

  • An LEA’s teacher designation system must include teacher observation and the performance of a teacher’s students. 
  • TEA and Texas Tech University will review the quality, validity, and reliability of the observation tools and student performance measures as part of the LEA designation system approval process. 
  • LEAs may choose to include other components in their designation system, such as evidence of teacher leadership or student surveys. 

District Supports Available 

  • TEA will provide technical assistance on teacher appraisal and student growth measures, the change management process, and human capital strategies. 
  • A Teacher Incentive Allotment website will include manuals, guidance documents, and over time, exemplars from other Texas districts. This website will also provide a searchable map of all Texas public schools and the possible yearly allotment amounts available for each designation level.
  • Districts can use up to 10% of their funds for costs associated with implementing and maintaining their designation system. This could include, among other things, funding for external partnerships. 

Local Role 
Interested LEAs will need to, among other things:

  • Identify or develop a designation system to use with robust input from stakeholders.
  • Identify which teacher observation and student performance measures they will use. 
  • Determine whether to add components to their designation system beyond observation and student performance, such as student surveys, family surveys, teacher leadership, teacher mentorship, etc. 
  • Determine how to use TIA funding, ensuring that at least 90% of the funds are used on teacher compensation on the campuses where the designated teacher works. 

State Role 
The state will: 

  • Set performance and validity standards for teacher designations and ensure a mathematical possibility that all teachers could earn a designation.
  • Approve district designation systems based on their validity and relative accuracy.
  • Monitor the quality and fairness of the local optional teacher designation systems across Texas.
  • Provide technical assistance to districts developing and implementing designation systems.


  • This winter, TEA will post a Teacher Incentive Allotment letter of intent to apply, which LEAs will use to indicate interest in submitting a TIA application in spring 2020. 
  • In spring 2020, LEAs that submitted a letter of intent can submit an application for the Teacher Incentive Allotment. Please note, to be eligible to apply for TIA funds in spring 2020, districts must have paid teachers during the 2019-2020 school year based on their performance in the 2018-2019 school year. 
  • LEAs with approved teacher designation systems in place will receive Teacher Incentive Allotment funding in fall 2020. 
  • Once finalized, TEA will publish information on how LEAs may apply. 
  • Once finalized, TEA will publish information on timelines for applications in future years. 

Teacher Appraisal Survey 

On October 3, 2019, TEA also issued a TAA regarding a Teacher Appraisal Survey that is going out to all LEAs. The agency will use the information reported to plan for the implementation of the Teacher Incentive Allotment and the Local Optional Teacher Designation System.


If you have any questions related to the TAA or the Teacher Incentive Allotment under HB 3, please contact the Division of Instructional Support at or  

Allision Friedlander
Program Manager, Teacher Leadership & Strategic Compensation
Division of Instructional Support