Senate committee substitute makes the following changes to the 1st edition.

Amends proposed GS 116-209.62, concerning the North Carolina Teaching Fellows Program (Program). Modifies subsection (b) to establish the North Carolina Teaching Fellows Program Trust Fund (previously, the North Carolina Teaching Fellows Fund). Makes conforming changes. Modifies subsection (c) to permit the State Education Assistance Authority to use up to $600,000 (was, $250,000) from the Trust Fund in each fiscal year for its administrative costs, the salary of the Director of the Program, expenses of the North Carolina Teaching Fellows Commission, and providing the Commission with funds to use for the extracurricular enhancement activities of the Program (previously, separately provided for the Commission to use up to $350,000 each fiscal year for the extracurricular enhancement activities of the Program). Amends subsection (d) to require the Director of the Program to report to the UNC President. Modifies the information relating to selected school outcomes by program that the Commission must annually report to the Joint Legislative Education Oversight Committee, beginning January 1, 2019.

Amends proposed GS 116-209.63, requiring all forgivable loans to be evidenced by notes made payable to the State Education Assistance Authority that bear interest at a rate not to exceed 10% per year as set by the Authority, and beginning on the first day of September (was, beginning 90 days) after completion of the program leading to teacher licensure, or 90 days after termination of the forgivable loan, whichever is earlier. Amends subsection (b) to provide that if the recipient completes a program leading to teacher licensure, payment of principal and interest begins no later than the first day of September (was, no later than 27 months) after the completion of the program. 

Deletes the appropriations provisions. Instead, amends GS 115C-472.16(b) to establish that the General Assembly must only appropriate moneys in the NC Education Endowment Fund for the forgivable loans for the North Carolina Teaching Fellows Program and administration of the North Carolina Teaching Fellows Program under Part 3 of Article 23 of GS Chapter 116 (currently, must only appropriate moneys in the NC Education Endowment Fund for teacher compensation that is related directly to improving student academic outcomes in NC public schools).

Provides that Sections 1 and 2 (which include all provisions of the act except for the proposed changes to GS 116-209.27(a)) of the act become effective only if funds are appropriated in a Current Operations Appropriations Act for the 2017-18 fiscal year to implement the provisions of Sections 1 and 2 of the act.