161.1120.  School recognition and reward program established, purpose — fund created, use of moneys — grants awarded. — 1.  For purposes of this section, the term "eligible school" means a school in need of intervention that:

  (1)  Meets predetermined exit criteria within four school years after the day on which the school is designated a school in need of intervention; or

  (2)  If granted an extension under section 161.1115, meets predetermined exit criteria within the extension period.

  2.  Subject to appropriation, the department shall establish a statewide program to be known as the "School Recognition and Reward Program" to provide incentives to schools and teachers to improve schools in need of intervention.

  3.  There is hereby created in the state treasury the "School Recognition and Reward Fund".  The fund shall consist of all moneys that may be appropriated to it by the general assembly and any gifts, contributions, grants, or bequests received from federal, private, or other sources for the purpose of distributing grants to local educational agencies as described in this section.  The state treasurer shall be custodian of the fund.  In accordance with sections 30.170 and 30.180, the state treasurer may approve disbursements of public moneys in accordance with distribution requirements and procedures developed by the department of elementary and secondary education.  The fund shall be a dedicated fund and, upon appropriation, moneys in the fund shall be used solely for the administration of grants to local educational agencies as described in this section.  Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund.  The state treasurer shall invest moneys in the fund in the same manner as other funds are invested.  Any interest and moneys earned on such investments shall be credited to the fund.

  4.  The department shall award grants from the school recognition and reward fund to local educational agencies with eligible schools.  The department shall require, as a condition of awarding a grant, that the local educational agency use the grant moneys to reward eligible schools, teachers employed by eligible schools, or both the eligible schools and the teachers.