SB 42 – This act modifies provisions relating to teacher pay. SECTION 163.011: This act modifies the definition and calculation of the state adequacy target for the elementary and secondary education funding formula. It removes from the calculation of the state adequacy target the inclusion of the gaming revenues from the repeal of the loss limits. It also removes the requirement that the state adequacy target be recalculated every year. SECTION 168.106: A teacher may opt out of his or her permanent contract and participate in the Teacher Choice Compensation Package. SECTION 168.745: This act creates the "Teacher Choice Compensation Package" to permit performance-based salary stipends, upon the decision of a teacher, to reward teachers for objectively demonstrated superior performance. It also creates the Teacher Choice Compensation Fund in the State Treasury. SECTION 168.747: A teacher must opt of his or her permanent contract for the duration of his or her employment with the school district to participate in the Teacher Choice Compensation Package. If a teacher chooses to no longer participate in the Compensation Package, he or she may not resume permanent teacher status with the district. If a teacher becomes employed by another school district, he or she may choose to remain in the Compensation Package or resume the process for an indefinite contract in that district. Teachers will qualify annually in October. Stipends will be offered in increments of five thousand dollars, up to fifteen thousand dollars but must not exceed fifty percent of a teacher's base salary as described in the act. The Department of Elementary and Secondary Education will make a payment to the district in the amount of the stipend, which will be delivered as a lump sum in January following the October qualification. If funds are insufficient, the Department may prorate payments. The Compensation Package will be open to every person employed by a school district regardless of certification status, provided the other requirements are satisfied. Stipends will be prorated for part-time employees and will be forfeited for any teacher dismissed for cause. SECTION 168.749 & 168.750: Beginning with the 2010-2011 school year, teachers who opt out of their permanent contract may be eligible based on the following: student scores on a value-added test instrument as described in the act, evaluations by principals or other administrators, evaluations by parents, and evaluations by students. The Department of Elementary and Secondary Education must develop or identify model instruments for use by school districts, which may also use or develop their own instruments. The Department of Elementary and Secondary Education must develop criteria for determining eligibility for stipend increments. Test-scores will be given more weight than evaluations. The level of scores required must take into account classroom demographics. SECTION 313.778: This act provides that monies in the Schools First Elementary and Secondary Education Improvement Fund will be transferred to the Teacher Choice Compensation Fund to be used for purposes of the Teacher Choice Compensation Package. This act is similar to provisions contained in HCS#2/SS/SB 291 (2009) and is similar to HB 214 (2007). MICHAEL RUFF