In South Florida, the state requires that the evaluation be administered in all classes, every semester, at all state universities. A professor's annual "raise" (usually about 2% max) is based on the record of service (on the administrative committees that run the schools), research (publication & conference papers), and teaching (based on the numeric scores from the teaching evals). So a professor may not receive one-third of that raise -- and that money basically goes to the others who are not penalized. There was a complicated "point system" used in our department used to figure the allocation of moneys to each individual faculty member.

In addition, a new process is being started to review tenured professors periodically -- every 5 years, I think. If the professor has a difficulty in some area, s/he must come up with the 5-year plan to remedy it. However, bec. these folks have tenure, they will not lose their jobs.

And the political reality is -- if someone in the sciences is bringing in big grant money from the government or private corporations, that professor's teaching skills (or lack of) will be ignored.