1. A. As used in this section:

   1. 1. “Eligible teacher” means a full-time certified teacher in grades four through eight teaching English language arts and mathematics;
   2. 2. “Participating school” means a public or charter elementary or middle school serving students in grades four through eight;
   3. 3. “Recognized teacher” means an eligible teacher whose students demonstrate student growth at or above an established growth threshold; and
   4. 4. “Student academic growth” means annual student progress as measured by the Oklahoma School Testing Program.
2. B. There is hereby established the Growth-Based Teacher Compensation Program to be administered by the State Board of Education. Beginning with the 2026-2027 school year, the pilot program shall operate for a minimum of three (3) consecutive school years.
3. C. To be eligible to participate in the program, a teacher shall be a full-time certified teacher in grades four through eight teaching English language arts and mathematics at a participating school. The pilot program shall consist of one thousand five hundred teachers representing approximately fifteen percent (15%) of the highest-performing teachers serving grades four through eight in eligible schools in this state. The State Board of Education shall establish criteria for the selection of recognized teachers to participate in the pilot program.

4. D. Recognized teachers participating in the pilot program shall receive annual performance-based compensation under the program as follows:

   1. 1. Compensation shall be based solely on measurable student academic growth. Such growth shall be calculated using a value-added model based on a rolling two-year period of statewide assessment data; provided, however, during the first year of program implementation, compensation shall be calculated using the previous and current years of academic growth data;
   2. 2. The State Department of Education shall place participating recognized teachers into three performance tiers based on their statewide student growth percentiles as determined by student growth on Oklahoma School Testing Program assessment data;
   3. 3. The percentile distribution shall be adjusted as necessary to ensure that total annual expenditures do not exceed available funding for the program;
   4. 4. Participating recognized teachers shall be identified using equivalent performance tiers which may include Tier 1 for the ninety-fifth percentile and above, Tier 2 for the ninetieth through ninety-fourth percentiles, and Tier 3 for the eighty-fifth through eighty-ninth percentiles; and
   5. 5. Awards shall be paid from the Teacher Empowerment Revolving Fund created in Section 6-190.2 of Title 70 of the Oklahoma Statutes by the State Department of Education as supplemental compensation. The performance-based compensation shall not be included in the calculation of the teacher’s salary for purposes of meeting the district or statutory minimum salary schedule or for purposes of compensating Teachers’ Retirement System of Oklahoma contributions or benefits. No participating school shall be liable for payment of the performance-based compensation pursuant to this section.
5. E. The State Board of Education shall promulgate rules to implement the Growth-Based Teacher Compensation Program in accordance with this section.

Laws 2026, HB 4268, c. 336, § 2, emerg. eff. July 1, 2026 (editorally renumbered from 70 O.S. 6-213 to 70 O.S. 6-214 to prevent a duplication in numbering).