SENATE BILL 729
By Lowe
HOUSE BILL 759
By Marsh
HB0759
002545
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 49,
relative to compensation for licensed personnel.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-3-306, is amended by adding the
following as a new subsection:
(i) An LEA may adopt and implement a merit-based pay structure for educators
to award additional compensation to high-performing educators and to incentivize
educators to meet and exceed expectations. A merit-based pay structure adopted
pursuant to this subsection (i) may only result in an increase to the compensation of an
educator, whether in the form of a one-time bonus or an increase to the salary payable
to the educator in accordance with the salary schedule approved by the commissioner
for the LEA for the respective school year. An LEA may decline to award merit pay in
any school year for which the LEA does not receive increased or additional state funds,
as compared to a prior year, in an amount sufficient to award merit pay. An LEA is not
required to supplement its local expenditures for salaries and wages in any school year
in order to continue any merit pay an educator received in a prior school year.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to the 2025-2026 school year and each school year thereafter.