(a) Merit Teacher Incentive Fund Program — Creation.

1. (1) The Merit Teacher Incentive Fund Program is hereby created to recognize and reward excellent teachers across the State of Arkansas.
2. (2) A teacher deemed eligible under the program may be awarded with annual bonuses of no more than ten thousand dollars ($10,000), if funds are available.
3. (3) In order to be eligible for funds, a teacher must have an annual rating of effective or highly effective on a state-approved evaluation system.

4. (4)

   1. (A) All applicants must demonstrate a positive impact on student growth to be eligible to receive an award.
   2. (B) Other eligibility requirements are considered in addition to growth.

(b) To be eligible for an award from the Merit Teacher Incentive Fund Program, an applicant must be:

1. (1) A teacher who holds a valid Arkansas educator’s license; or
2. (2) An aspiring teacher participating in a yearlong residency; and

3. (3) Provide evidence that the applicant:

   1. (A) Demonstrates outstanding growth in student performance as determined by the state’s value-added measure system;
   2. (B) Serves as a mentor to aspiring teachers who are participating in a yearlong residency;
   3. (C) Teaches in a subject area identified as experiencing a critical shortage of teachers; or
   4. (D) Teaches in a geographical area identified as experiencing a critical shortage of teachers.

(c) Distribution of funds.

1. (1) Individuals qualifying under subsection (a) of this section shall receive funds by June 30 of each year.

2. (2) The following factors may be considered when determining distribution:

   1. (A) A teacher’s value-added growth score from the previous year;
   2. (B) The poverty level of the school; or
   3. (C) The designated performance rating of the school under the school rating system per Arkansas Code § 6-15-2101 et seq. (3) A teacher who, in the previous school year, is in intensive support status per 6 CAR § 181-203(e) is ineligible for receipt of funds under the program for the subsequent school year.
3. (4) Funds awarded as part of the Merit Teacher Incentive Fund Program shall be provided to a recipient’s employing school district and include fringe benefits for the award recipient.

(d) Reporting.

1. (1) The Division of Elementary and Secondary Education shall annually conduct and publish a report on data regarding Arkansas’s educator workforce.

2. (2) The report required under this part shall include, without limitation, an analysis of:

   1. (A) Teacher shortage areas by geographic region, subject area, district, school, and student demographic groups, including consideration for teacher certification status; and
   2. (B) The teacher pipeline and retention, including consideration of available teacher training pathways.