(1) As used in this section: (a) "Center" means the Center for the School of the Future at Utah State University established in Section 53H-3-304. (b) "Eligible teacher" means a teacher who is a top-performing teacher that the center determines using an LEA's assessment methods, including: (i) student growth or achievement measures; (ii) professional evaluations; (iii) parent or student surveys; and (iv) other data-driven criteria the LEA establishes and the center verifies for validity. (c) "Eligible teacher" includes an individual whom an LEA participating in the program employs and who holds: (i) a license the state board issues; and (ii) a position that includes a current classroom teaching assignment. (d) "High poverty school" means the same as that term is defined in Section 53F-2-513. (e) "LEA" means: (i) a school district; (ii) a charter school; (iii) the Utah Schools for the Deaf and the Blind; and (iv) a regional education service agency. (f) "Program" means the Excellence in Education and Leadership Supplement created in Subsection (2). (g) "Tier performance level" means the following levels of performance for a teacher in comparison to all teachers the center determines in accordance with Subsection (7): (i) the top 5% of teachers; (ii) the next 6%-10% of teachers; and (iii) the next 11%-25% of teachers. (h) "Top-performing" means the top 25% of teachers in comparison to all teachers the center determines using the methods described in Subsection (1)(b). (2) Beginning July 1, 2024, there is created a five-year pilot program known as the Excellence in Education and Leadership Supplement to provide a performance-based award to an eligible teacher in recognition for outstanding instructional talent. (3) (a) No later than December 31, 2024, an LEA shall declare the LEA's intent to participate in the program to the center. (b) If an LEA declares an intent to participate in the program, the LEA shall: (i) develop a process for a school principal or the principal's designee to assess a teacher's performance consistent with this section to determine if a teacher is an eligible teacher, including the corresponding tier performance level; and (ii) create an appeals process for an employee who is not nominated to be an eligible teacher. (4) No later than July 1, 2025, an LEA shall: (a) attend a training that the center creates regarding the guidelines for developing a process described in Subsection (3); and (b) develop and submit for approval the LEA's process described in Subsection (3) to the center. (5) (a) The center shall review the LEA's process described in Subsection (3) and approve the process or request that the LEA make changes to the submitted process. (b) If the center requests changes to the LEA's submitted process, the LEA shall work with the center to make necessary changes to receive final approval from the center. (c) No later than August 15, 2025, the center shall provide final approval or denial of an LEA's process. (6) Before August 31, 2025, an LEA with an approved process as described in Subsection (5) shall: (a) ensure each school principal or the principal's designee attends a training that the center creates regarding: (i) how to effectively use the LEA's approved process to select and submit to the center nominations for eligible teachers, including the corresponding tier performance level; and (ii) how to protect student and educator data privacy when submitting nominations and applications, as described in Subsection (9)(b)(ii); (b) provide information to teachers within the LEA regarding the program and how the school's principal or principal's designee will use the approved LEA process to make nominations of eligible teachers; and (c) ensure each school principal or the principal's designee is able to use the LEA's approved process to evaluate and select which teachers within the school to nominate as eligible teachers, including the corresponding tier performance level. (7) In assessing if a nominated teacher is an eligible teacher, the center shall create an assessment process that: (a) uses the methods described in Subsection (1)(b); (b) calibrates the submissions an LEA submits to determine, for all nominated teachers statewide, which teachers are eligible teachers, including the corresponding tier performance level; (c) may use additional criteria as determined by the center in consultation with participating LEAs; and (d) establishes a scoring rubric including the scores required for a designation in each tier performance level. (8) (a) The center shall collaborate with LEAs to create: (i) selection and submission guidelines for: (A) the approval of the LEA's process as described in Subsection (5); and (B) the list of nominated eligible teachers described in Subsection (6); (ii) methods to determine student growth and achievement measures for subject areas that do not have standardized assessment data; (iii) the weightings for each element of the assessment process described in Subsection (7); and (iv) the trainings described in this section. (b) In addition to the requirements in Subsection (8)(a), an LEA may include the following if the LEA collaborates with the center to do so: (i) methods to determine student growth and achievement measures for subject areas that have standardized assessment data; and (ii) methods for combining measures described in Subsections (8)(a)(ii) and (8)(b)(i) as appropriate to assure compatibility across all subject areas. (c) The center may provide program related technical assistance to an LEA. (9) (a) An LEA shall: (i) apply to the center on behalf of the nominated eligible teachers within the LEA through a process and format that the center determines; and (ii) ensure a school principal or the principal's designee reevaluates an eligible teacher's designation under this section every three years. (b) The center shall: (i) create an application process for an LEA to submit the list of nominated eligible teachers described in Subsection (9)(a), including a deadline for submission of the list of nominated teachers to the center; (ii) coordinate with the state board in the creation of the application process described in Subsection (9)(b)(i) to ensure that any sharing of student and educator data during the application process: (A) complies with the Family Educational Rights and Privacy Act, 34 C.F.R. Part 99; (B) complies with Title 53E, Chapter 9, Student Privacy and Data Protection; and (C) uses disclosure avoidance techniques, including aggregating and otherwise de-identifying data; (iii) no later than October 1, 2026, determine if a nominated teacher is an eligible teacher through the process described in Subsection (7); (iv) verify: (A) the validity of the LEA's process and assessment of an eligible teacher as described in Subsections (4) and (5); and (B) the nominations described in Subsection (7) with the LEA and school administrators; (v) certify a list of eligible teachers, including the total amount of funding the LEA receives for the LEA's eligible teachers; and (vi) provide the list described in Subsection (9)(b)(v) to the state board. (10) (a) Subject to legislative appropriations, the state board shall: (i) within 45 days of receiving the list described in Subsection (9)(b)(v) from the center, disburse funding to an LEA in the amount the center verifies that an LEA qualifies to receive for performance-based awards under this section; (ii) allocate up to 4.25% of the funds appropriated under this section to the center; and (iii) develop a method to compensate an LEA for program administration that: (A) does not exceed 4% of the total funds appropriated under this section; (B) first compensates an LEA for fixed efforts associated with development and management of the LEA's teacher performance-based award program; and (C) allocates any remaining balance to compensate an LEA for variable efforts associated with ongoing program administration and management. (b) The annual performance-based award for an eligible teacher is: (i) $10,000 for a teacher in the top 5% of teachers; (ii) $5,000 for a teacher in the next 6%-10% of teachers; and (iii) $2,000 for a teacher in the next 11%-25% of teachers. (c) If the eligible teacher is employed at a high poverty school, the eligible teacher shall receive an additional performance-based award that is equal in amount to the eligible teacher's performance-based award described in Subsection (10)(b). (11) (a) An LEA shall: (i) within 45 days of receiving the LEA's funds from the state board for all eligible teachers, use the program funds to provide a performance-based award equal to the amount specified in Subsection (10) for each eligible teacher in each tier performance level; and (ii) provide the performance-based award in an eligible teacher's regularly occurring compensation in equal amounts through the contracted school years related to the performance-based award. (b) An LEA: (i) may use money appropriated to the LEA for the performance-based award for employer-paid benefits; (ii) may not include a performance-based award received under this section: (A) in a retirement calculation; or (B) as part of retirement contributions; and (iii) may not reduce an eligible teacher's award to ensure the LEA maintains the funds described in Subsection (10)(a)(iii). (c) The performance-based award is not part of an eligible teacher's base pay, and is subject to the eligible teacher's designation as an eligible teacher. (12) Except as provided for in Subsection (11), if the appropriation for the program is insufficient to cover the costs associated with performance-based awards, an LEA may distribute the funds to each eligible teacher of the same tier of performance level on a pro rata basis. (13) (a) (i) In accordance with state and federal privacy laws, the state board shall provide the following data to the center: (A) relevant student achievement data; (B) relevant teacher data; and (C) any other relevant data as the center determines. (ii) If the center needs data from a non-participating LEA for purposes of the program, the state board: (A) shall provide the data; and (B) may provide the data in a de-identified manner, including providing an individual teacher's or student's data with a unique identifier that is not associated with the teacher's or student's name or school provided identification number. (b) The state board shall: (i) consult with the center; and (ii) contract with a third party to obtain and house a secure web-based portal for authorized LEA and state board users to: (A) allow a teacher to track the teacher's students' academic achievement and growth and assess within the teacher's LEA the teacher's individual progress toward becoming an eligible teacher nominee; (B) report results of the chosen model or models at the district, school, and subject or grade levels; (C) provide diagnostic data showing the growth and achievement trends for different groups of students associated with a teacher, school, charter system, or district; and (D) provide resources for teachers to interpret the model results, training modules, and receive or request technical support. (c) The state board shall use up to 2.5% of the total funds appropriated under this section for the web-based access portal described in Subsection (13)(b). (14) (a) An eligible teacher that receives a performance-based award under the program has no vested property right in the performance-based award or the designation as an eligible teacher. (b) An eligible teacher's performance-based award and designation under this section are void if the school principal or principal's designee, LEA, or the center made or certified the designation improperly. (15) (a) Subject to prioritization of the Audit Subcommittee, unless the state board contracts a private auditor in accordance with Subsection (15)(b), the Office of the Legislative Auditor General established under Section 36-12-15 shall, in any fiscal year: (i) conduct an audit of the program including: (A) an evaluation of the implementation of the program; and (B) the efficacy of the program, including program outcomes; and (ii) prepare and submit a written report for an audit described in this section in accordance with Subsection 36-12-15(6)(b). (b) Subject to legislative appropriations, the state board may contract with an external auditor to perform the audit described in this Subsection (15). (16) (a) The center shall report to the Education Interim Committee no later than the 2024 October meeting the following: (i) the methodology and process the center develops to achieve the requirements of Subsection (7); (ii) relevant data and updates resulting from the collaborations described in Subsection (8); (iii) any recommendations for future legislation; and (iv) data regarding performance-based award programs, including: (A) different approaches used to reward teacher performance, including different evaluation methods; (B) research outlining the effectiveness and impact of different performance-based award amounts on teacher retention; and (C) other considerations for impactful performance-based award programs in relation to teacher retention. (b) Beginning November 1, 2026, the center shall provide an annual report to the Education Interim Committee regarding: (i) the statewide metrics used in accordance with Subsection (7); (ii) de-identified and aggregated data showing the number of: (A) performance-based awards per school, including total number of eligible teachers in each school; (B) eligible teachers in high poverty schools; (C) eligible teachers in each tier performance level; (D) eligible teachers in subject areas that do not have standardized assessments; and (E) performance-based award denials per school, including the reasons for a denial; (iii) proportion of eligible teachers in: (A) school districts; and (B) charter schools; and (iv) teacher retention data for a school where an eligible teacher is employed.
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