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.