This bill establishes a framework for public school districts and charter schools in Oklahoma to designate certified classroom teachers with specific designations—master, exemplary, or recognized—based on student academic growth over a five-year period. The State Board of Education is tasked with setting performance and validity standards for these designations, which will be based on the percentage of students meeting or exceeding expected growth targets. The bill also outlines the responsibilities of the State Department of Education in providing technical assistance, conducting evaluations, and ensuring compliance with the new designation systems.

Additionally, the bill creates the Distinguished Educator Allotments Revolving Fund, which will provide financial incentives for teachers who receive these designations. The allotments will vary based on the designation level, with specific amounts allocated for each category, and will be linked to student performance metrics. The bill mandates that a significant portion of the funds received must be used for increasing teacher compensation, while also ensuring that these funds are not considered part of a teacher's salary for retirement calculations or subject to certain taxes. An appropriation of $50 million is made to support the implementation of these provisions, with the act set to take effect on July 1, 2025.