FOR AN ACT ENTITLED, An Act to  establish a master teacher incentive fund to reward certain teachers and to create an appropriation therefor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  There is hereby established under the Department of Education and Cultural Affairs a master teacher incentive fund. The master teacher incentive fund shall be used to reward qualified teachers in qualified school districts by means of a yearly bonus of not more than six thousand dollars each year.
     Section  2.  A portion of the fund shall be allocated to each qualified school district according to its relative portion of the total average daily membership as defined in §  13-13-10.1. Any qualified school district may access a portion of the master teacher incentive fund if the school district implements a plan to reward teachers who demonstrate excellence and mastery in their profession.
     Section  3.  If a qualified school district has identified any teacher who has demonstrated excellence and mastery, the qualified school district shall provide a written recommendation and substantiation, along with the specific amount of the bonus to be paid, to the Department of

Education and Cultural Affairs after March first and before April fifteenth.
     Section  4.  For purposes of this Act, a qualified teacher is one who meets the following criteria:

             (1)    Holds a valid teaching certificate;

             (2)    Has taught at least two years in the qualifying school district; and

             (3)    Exhibits excellence and mastery in both a subject area and teaching methods or exhibits excellence and mastery in mentoring.
     Section  5.  For purposes of this Act, a qualified school district is one that meets the following criteria:

             (1)    Has a general fund balance of not more than thirty-five percent of total general fund expenditures for the previous school year;

             (2)    Has implemented a teacher mentoring program in accordance with the guidelines established by the Department of Education and Cultural Affairs;

             (3)    Rewards not more than twenty-five percent of its teachers, in any calendar year, with money from the master teacher incentive fund; and

             (4)    Awards money to master teachers without a reduction or offset in their regular salary.
     Section  6.  There is hereby appropriated from the general fund the sum of three million dollars ($3,000,000), or so much thereof as may be necessary, to the master teacher incentive fund.
     Section  7.  The secretary of the Department of Education and Cultural Affairs shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.
     Section  8.  Any amounts appropriated in this Act not lawfully expended or obligated by June 30, 2003, shall revert in accordance with §  4-8-21.