A BILL TO BE ENTITLED
AN ACT directing the state board of education to develop a framework for an innovative teacher compensation initiative.
The General Assembly of North Carolina enacts:
SECTION 1.  The State Board of Education shall develop a framework for an innovative teacher compensation initiative that will support selected pilot local school administrative units' efforts to reward their most dynamic, innovative, and effective teachers with additional financial compensation.  The framework shall provide the broad guidelines within which selected pilot units will develop specific plans for awarding supplemental pay and bonuses tied directly to criteria representing the areas of student growth, teacher knowledge and skills, teacher performance, and labor‑market conditions.
The framework shall require pilot units to develop individualized proposals developed through demonstrated collaboration with local stakeholders including, but not limited to, teachers, school‑based administrators, and parents.
The Board shall develop a process through which units may apply to participate in the pilot program, which will be limited to five units in fiscal year 2008‑2009.  The selection process shall take into account such factors as:
(1)	Innovativeness of plan;
(2)	A unit's ability to generate local revenue for appropriation to public schools;
(3)	The degree to which relevant stakeholders have participated in development of plan; and
(4)	Geography.
The Board shall deliver a draft proposed framework to the Joint Legislative Education Oversight Committee by October 15, 2007, and a final proposal to the same committee by December 15, 2007.
It is the intent of the General Assembly that the Board will implement the request for proposals by February 2008 and select pilot units by May 2008.
SECTION 2.  It is the intent of the General Assembly to provide funds to support implementation of the innovative teacher compensation pilots in the 2008‑2009 fiscal year.
SECTION 3.  This act is effective when it becomes law.