H.B. No. 3564 aims to enhance the collection and reporting of demographic data regarding race and ethnicity by the Texas Education Agency (TEA). The bill introduces a new section, Section 7.038, to the Education Code, which mandates the TEA to collect and disaggregate data by specific racial and ethnic categories for various educational metrics, including academic achievement and graduation rates. The categories include American Indian or Alaska Native, Asian (with several subcategories), Black or African American, Hispanic or Latino, Middle Eastern or North African, Native Hawaiian or Pacific Islander, and White, each with defined subcategories. Additionally, the TEA is required to allow individuals to select multiple categories and subcategories for race or ethnic origin.

Furthermore, the bill stipulates that the TEA must publicly post the collected data on its website in a disaggregated format that is accessible and understandable, while ensuring compliance with federal and state privacy laws. The TEA is tasked with revising its reporting standards to align with these new requirements by the 2027-2028 school year. The act is set to take effect on September 1, 2025.

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