1. A. On or before September 1, 1990, the State Board of Education shall develop not fewer than five (5) different model incentive pay plans and shall distribute information about each plan to every school district board of education. No plan developed by the Board or implemented by the local school board shall permit payment in any one (1) year of incentives to any one teacher amounting to more than twenty percent (20%) of said teacher's regular salary, exclusive of fringe benefits or extra duty pay. Any incentive pay award shall be an annual award and shall not be a part of a teacher's continuing contract. Any incentive pay awards received shall be excluded from such teacher's compensation for purposes of calculating retirement pursuant to the Teachers' Retirement System of Oklahoma, established in Section 17-102 of Title 70 of the Oklahoma Statutes and shall not be subject to taxes levied by the Federal Insurance Contributions Act (F.I.C.A.), to the extent such exemption is provided by federal law.
2. B. Beginning with the 1991-92 school year, each school district board of education may adopt an academically based, district incentive pay plan for the district's classroom teachers. The district may adopt any incentive pay plan consistent with the requirements of this section, which may include any incentive pay plan developed by the State Board of Education pursuant to this section. The local school board shall appoint an advisory committee consisting of teachers, parents, business persons or farmers and other local citizens to advise the board in formulating an incentive pay plan. Prior to the adoption of such plan, the board of education shall place such plan on the school board agenda for public comment and shall submit the plan to the State Board of Education for final approval on or before March 1. The board of education shall comply with the provisions of this subsection for any year a plan is to be modified.
3. C. Beginning with the 1991-92 school year, a school district shall be required to adopt and implement an academically based, district incentive pay plan for any school year following the receipt by the school district board of education, of a petition signed by twenty percent (20%) of the classroom teachers employed in the district which calls for the adoption of an incentive pay plan for the district.
4. D. Pupil test scores shall not be the sole criterion for allocation of incentive pay under any plan developed or approved by the Board.
5. E. For the purposes of this section only, "classroom teacher" shall mean any employee who holds certification and assignment outside the classification of administrator.
6. F. The State Board of Education shall promulgate rules and regulations necessary for the effective implementation and administration of this section.
7. G. Each local board of education shall provide for a local evaluation committee which shall advise the board on which teachers are to receive incentive pay awards and the amount of each incentive pay award according to the plan.
8. H. Nothing herein shall preclude a school district from supplementing to any monies appropriated to such district for the purposes of the district's incentive pay plan, monies from the district's general fund.

Added by Laws 1989, 1st Extr.Sess., HB 1017, c. 2, § 50, emerg. eff. April 25, 1990.