A. As used in this section:

"Fund" means the Strategic Compensation Grant Fund established pursuant to § 22.1-318.1.

"Grant" means a grant issued pursuant to the Strategic Compensation Grant Initiative.

B. The Department shall develop guidelines, consistent with this section, setting forth the general requirements of qualifying for a grant.

C. Local school divisions may submit proposals to the Department to apply for a grant. Grants shall be awarded, on a competitive basis, for the purposes of awarding incentive payments to teachers. All proposals shall designate groups or types of teachers targeted for the incentives. Proposals may include plans to (i) reward teachers who help students make significant academic progress; (ii) incentivize team performance in schools achieving goals set by the school division; (iii) reward teachers assuming additional responsibilities, such as serving as a mentor to other teachers; (iv) pay incentives to effective teachers who have essential expertise and who are willing to transfer to positions at hard-to-staff or low-performing schools; (v) reward effective teachers who are assigned to teach critical shortage areas; or (vi) pay incentives to attract talented teachers with specified expertise in hard-to-staff positions. Any proposal that is designed to offer incentives for improved performance to an entire school team may include school leaders other than teachers.

D. Each proposal shall outline a strategic compensation model used to disburse awarded funds. Stakeholder involvement is required in the development and implementation of the model. No individual shall receive more than $5,000 per year. The compensation model shall include measurable and appropriate achievement goals for student academic progress and plans for the professional development of the designated teachers. The compensation model may include tiers or a range of incentives.

E. Any teacher awarded according to the terms of the proposal by the school division in its proposal shall (i) be licensed by the Board; (ii) be employed by the local school board under a contract; (iii) hold an endorsement in his subject area and grade level; (iv) be "highly qualified," as that term is defined by the federal Elementary and Secondary Education Act, P.L. 89-10, as amended; (v) be evaluated using an effective system, consistent with the evaluations and criteria of the Board, including a weight of 40 percent on student academic progress for the summative rating; and (vi) be rated as "proficient" or better.

2013, cc. 228, 691.