By Nelson S.B. No. 1463 77R3302 BDH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the establishment of a pilot program for grants for 1-3 innovative public school teacher compensation. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter I, Chapter 21, Education Code, is 1-6 amended by adding Section 21.411 to read as follows: 1-7 Sec. 21.411. PILOT PROGRAM FOR GRANTS FOR INNOVATIVE TEACHER 1-8 COMPENSATION PLANS. (a) In this section, "charter school" means a 1-9 school authorized under Chapter 12. 1-10 (b) The commissioner shall establish a pilot program for 1-11 teacher compensation to encourage school districts and charter 1-12 schools to implement innovative teacher compensation plans designed 1-13 to attract and retain quality teachers and improve student 1-14 performance. 1-15 (c) From funds appropriated or donated for the purpose, the 1-16 commissioner shall award grants to school districts and charter 1-17 schools under this section based on criteria adopted by the 1-18 commissioner. 1-19 (d) To be eligible to receive a grant under this section, a 1-20 school district or charter school must: 1-21 (1) apply within the period and in the manner required 1-22 by the commissioner; 1-23 (2) propose an innovative teacher compensation plan 1-24 that includes a merit-based or performance-based component; 2-1 (3) agree to match with local funds the amount 2-2 received in the grant, except that the commissioner may waive the 2-3 requirement of matching funds if the commissioner determines that 2-4 the district or school is unable to provide sufficient funds for a 2-5 pilot program; and 2-6 (4) agree to use the grant only to implement the 2-7 proposed teacher compensation plan. 2-8 (e) In awarding grants under this section, the commissioner 2-9 shall give preference to school districts and charter schools with 2-10 a high number of educationally disadvantaged students. 2-11 (f) The commissioner shall determine the amount of a grant 2-12 awarded under this section. In making that determination, the 2-13 commissioner shall ensure that the grant amount is large enough to: 2-14 (1) encourage school districts and charter schools to 2-15 apply for grants; and 2-16 (2) provide significant performance incentives for 2-17 teachers. 2-18 (g) The commissioner shall actively seek private 2-19 contributions to increase the amount of state money available to 2-20 fund grants under this section. 2-21 (h) A school district or charter school may solicit private 2-22 contributions to apply towards any local matching funds required 2-23 under this section. 2-24 (i) Section 21.402 does not apply to a teacher subject to a 2-25 teacher compensation plan funded by a grant awarded under this 2-26 section. 2-27 (j) The commissioner shall conduct an annual review of 3-1 teacher compensation plans funded with grants awarded under this 3-2 section to identify plans that are most effective in: 3-3 (1) attracting quality teachers; 3-4 (2) retaining quality teachers; and 3-5 (3) improving student performance. 3-6 (k) Not later than December 1 of each even-numbered year, 3-7 the commissioner shall report to the legislature the commissioner's 3-8 findings under Subsection (j). 3-9 SECTION 2. The commissioner of education shall adopt rules 3-10 necessary to administer a grant program under Section 21.411, 3-11 Education Code, as added by this Act, not later than January 1, 3-12 2002. 3-13 SECTION 3. This Act takes effect immediately if it receives 3-14 a vote of two-thirds of all the members elected to each house, as 3-15 provided by Section 39, Article III, Texas Constitution. If this 3-16 Act does not receive the vote necessary for immediate effect, this 3-17 Act takes effect September 1, 2001.