I 111th CONGRESS 1st Session H. R. 3683 IN THE HOUSE OF REPRESENTATIVES September 30, 2009 Mr. Price of Georgia (for himself and Mr. Kline of Minnesota) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Elementary and Secondary Education Act of 1965 to establish the Teacher Incentive Fund Program, and for other purposes.

1.

Short title

This Act may be cited as the Teacher Incentive Fund Act.

2.

Teacher incentive fund program

Part C of title II of the Elementary and Secondary Education Act of 1965 is amended by adding at the end the following: 6

Teacher Incentive Fund Program

2371.

Purposes; definitions

(a)

Purposes

The purposes of this subpart are— (1)to assist States, local educational agencies, and nonprofit organizations to develop, implement, or improve comprehensive performance-based compensation systems solely for teachers and principals, especially for teachers and principals in high-need schools, who raise student academic achievement and close the achievement gap; and (2)to study and review performance-based compensation systems for teachers and principals to evaluate their effectiveness, fairness, quality, consistency, and reliability. (b)

Definitions

For purposes of this subpart: (1)

Eligible entity

The term eligible entity means— (A)a local educational agency (including a charter school that is a local educational agency), or a consortium of such agencies; (B)a State educational agency, or other State agency designated by the chief executive of the State to participate under this subpart; or (C)a partnership of— (i)one or more agencies described in subparagraph (A) or (B), or both; and (ii)at least one nonprofit organization. (2)

High-need local educational agency

The term high-need local educational agency has the meaning given the term in section 2102. (3)

High-need school

The term high-need school has the meaning given the term in section 2312. (4)

Performance-based compensation system

The term performance-based compensation system means a system of compensation solely for teachers and principals that— (A)differentiates levels of compensation primarily on the basis of measurable increases in student academic achievement; and (B)may include— (i)differentiated levels of compensation on the basis of high-quality teachers’ and principals’ employment and success in hard-to-staff schools or high-need subject areas; and (ii)recognition of the skills and knowledge of teachers and principals as demonstrated through— (I)successful fulfillment of additional responsibilities or job functions; and (II)evidence of high achievement and mastery of content knowledge and superior teaching skills that shall be gathered through classroom observations or other criteria developed through scientifically valid research (as defined in section 200 of the Higher Education Act of 1965 (20 U.S.C. 1021)).

2372.

Teacher incentive fund grants

(a)

In general

From the amounts appropriated to carry out this subpart, the Secretary is authorized to make grants on a competitive basis to eligible entities to develop, implement, or improve performance-based compensation systems in participating schools. (b)

Priority

In making such a grant, the Secretary shall give priority to an eligible entity that concentrates its proposed activities on teachers and principals serving in high-need schools. (c)

Applications

To be eligible to receive a grant under this subpart, an eligible entity shall submit an application to the Secretary, at such time and in such manner as the Secretary may reasonably require, that includes— (1)a description of the performance-based compensation system that the applicant proposes to develop and implement or improve; (2)a description and demonstration of the support and commitment from teachers and principals in the targeted schools, the community, and local educational agency or agencies for the performance-based compensation system, including demonstration of consultation with teachers and principals on the development and implementation of the performance-based compensation system; (3)a description of how the eligible entity will develop and implement a fair, rigorous, and objective process to evaluate teacher, principal, and student performance, including the baseline performance against which evaluations of improved performance will be made; (4)a description and demonstration of how teacher and principal views were included in the development of the performance-based compensation system; (5)a description of the local educational agency or local educational agencies to be served by the project, including such demographic information about students in the schools to be served by the project as the Secretary may request; (6)information on student academic achievement, the quality of the teachers and principals, and existing compensation, bonuses, and incentive systems for teachers and principals in the schools to be served by the project; (7)a description of how the applicant will use grant funds under this subpart in each year of the grant; (8)a description of the comprehensive, focused professional development that is aligned with student content and achievement standards that the applicant will implement to support the performance-based compensation system; (9)an explanation of how the grantee will continue its performance-based compensation system after the grant ends; (10)a description, if applicable, of how the applicant will define the term high-quality for the purposes of section 2371(b)(4)(B)(i), through the use of measurable indicators; (11)a description of the State, local, or philanthropic funds that will be used to supplement the grant and sustain the activities at the end of the grant period; and (12)A description of how the applicant will evaluate the project annually, including any objective measures that are clearly related to the goals for the project and information on how the evaluation will produce quantitative and qualitative data. (d)

Use of Funds

(1)

In general

A grantee shall use grant funds provided under this subpart only to develop, implement, or improve, in collaboration with teachers, principals, other school administrators, and members of the public, a performance-based compensation system consistent with the requirements of this subpart. (2)

Authorized activities

Authorized activities under this subpart may include the following: (A)Developing appraisal systems that reflect clear and fair measures of student academic achievement. (B)Developing appraisal systems that reflect clear and fair measures of teacher and principal performance based on demonstrated improvements in student academic achievement. (C)Conducting outreach within the local educational agency (or agencies) or the State to gain input on how to construct the appraisal system and to develop support for it. (D)Paying, as part of a comprehensive performance-based compensation system, bonuses and increased salaries to teachers and principals who raise student academic achievement, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant. (E)Paying, as part of a comprehensive performance-based compensation system, additional bonuses to teachers who both raise student academic achievement and either teach in high-need schools or teach subjects that are difficult to staff, or both, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant. (F)Paying, as part of a comprehensive performance-based compensation system, additional bonuses to principals who both raise student academic achievement and serve in high-need schools, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant. (e)

Duration of Grants

(1)

In general

The Secretary may make grants under this section for periods of up to 5 years. (2)

Limitation

An agency described in subparagraph (A) of section 2371(b)(1) may receive (whether individually or as part of a consortium or partnership) a grant under this subpart only once. Such an agency may continue to receive that grant for the period of that grant, but shall not receive (whether individually or as part of a consortium or partnership) any other grant under this subpart. (f)

Equitable distribution

To the extent practicable, the Secretary shall ensure an equitable geographic distribution of grants under this section. (g)

Matching Requirement

(1)Each eligible entity that receives a grant under this section shall provide, from non-Federal sources, an amount (which may be provided in cash or in kind) to carry out the activities supported by the grant equal to— (A)for the first year of the grant, 10 percent of the amount received for that year under the grant; (B)for the second year, 25 percent; (C)for the third year, 40 percent; (D)for the fourth year, 55 percent; and (E)for the fifth year, 70 percent. (2)The Secretary may waive all or part of the matching requirement described in paragraph (1) for any fiscal year for an eligible entity described in section 2371(b)(1)(A) if that eligible entity is a high-need local educational agency, a consortium of high-need local educational agencies, or a charter school that is a high-need local educational agency and the Secretary determines that applying the matching requirement to such eligible entity would result in serious hardship or an inability to carry out the activities described in subsection (d). (h)

Supplement, not supplant

Grant funds provided under this section shall be used to supplement, not supplant, other Federal or State funds. (i)

Rule of Construction

Nothing in this subpart shall be implemented in such a way so as to require a collective bargaining agreement be in place in order to receive funds or participate under this subpart.

2373.

Report and evaluation

(a)

Report

The Secretary shall provide an annual report on the implementation of the program to the Congress. (b)

Evaluation

(1)

In general

The Secretary shall, through grant or contract, carry out an independent evaluation of the program under this subpart. (2)

Content

The evaluation shall measure— (A)the effectiveness of the program in improving student academic achievement; (B)the satisfaction of the participating teachers or principals; and (C)the extent to which the program assisted the eligible entities in recruiting and retaining high-quality teachers and principals, especially in hard-to-staff subject areas.

2374.

Authorization of appropriations

(a)

In general

There are authorized to be appropriated to carry out this subpart such sums as may be necessary for fiscal year 2010 and each of the succeeding 5 fiscal years. (b)

Reservation

The Secretary may reserve not more than 3 percent of the funds appropriated to carry out this subpart for any one fiscal year for the cost of the evaluation under section 2373(b) and for technical assistance and program outreach.

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