This paper: (1) describes the recently implemented Texas plan for school reform; (2) delineates a major component of Texas reform, the career ladder. In response to a nationwide call for raised educational standards, Texas passed HB 72, a comprehensive education bill implementing a comprehensive "career ladder" model for the testing, certification, placement, and evaluation of all teachers in the state. The career ladder concept has three components: competency testing, merit pay, and performance appraisal. It is anticipated that teachers will demonstrate a knowledge of basic skills, a knowledge of subject matter, and a knowledge of pedagogy, and so experience a heightened sense of professionalism. According to HB 72, teachers are assigned to a career level based on criteria that require an objective checking system: experience, job-related education, advanced academic training, and job assignment. Performance appraisal is conducted in the classroom by a trained evaluator. The quality of teachers' performance is determined, and each teacher is placed at a career ladder level (level 2, 3, or 4), with financial incentives for each higher level. Mandated and planned changes in the induction and licensure of teachers and administrators in various states are examined. Concluding the paper are 18 references and three tables. (WTH)