Local Education Agencies - As enacted, authorizes an LEA to 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. - Amends TCA Title 49.

HB 759 allows Tennessee school districts (Local Education Agencies) to implement merit-based pay systems for educators, enabling them to award extra compensation to high-performing teachers to encourage meeting or exceeding performance standards. The bill specifies that merit pay can only increase an educator’s compensation - through one-time bonuses or permanent salary adjustments - and must align with state funding levels. School districts are not required to use local funds to maintain merit pay from prior years and may choose not to offer it in any year without sufficient additional state funding compared to the previous year. This policy takes effect for the 2025-2026 school year and beyond.