Bill Summary for S 227 (2019-2020)

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Summary date: 

Jun 12 2019

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View NCGA Bill Details2019-2020 Session
Senate Bill 227 (Public) Filed Tuesday, March 12, 2019
AN ACT TO MAINTAIN ADMINISTRATION FOR CURRENT GRANT RECIPIENTS OF THE EXISTING TRANSFORMING PRINCIPAL PREP PROGRAM AND PHASE IN ADMINISTRATION BY THE NEW PRINCIPAL FELLOWS AND TP3 COMMISSION.
Intro. by Tillman.

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Bill summary

House committee substitute deletes all provisions of the 3rd edition and now provides the following.

Effective June 30, 2019, repeals Section 2(a) through (d) of SL 2018-145, which makes changes to Part 4, Transforming Principal Preparation Grant Program, of Article 23 of GS Chapter 116 to transfer the Program's administration to the NC Principal Fellows Commission. Amends Section 2 of SL 2018-145, effectively prohibiting the award of new grants or provision for grant renewals under the program. Further amends Section 2 of SL 2018-145 concerning the transfer of grant recipient data. Now requires the nonprofit corporation contracting with the State Education Assistance Authority (Authority) to transfer to the NC Principal Fellows and TP3 Commission (Commission, as enacted) all data collected from grantees selected prior to January 1, 2019, through the program with the term of the grant ending prior to July 1, 2020, no later than June 30, 2020, and all data collected from grant recipients with the term of the grant ending prior to July 1, 2021, no later than June 30, 2021. Amends Section 11.9(o) of SL 2015-241, as amended, concerning the allocation of funds appropriated to the program. Limits the required $4.2 million allocation to the Authority each fiscal year to award grants to the 2017-2018, 2018-19, and 2019-20 fiscal years for recipients selected prior to January 1, 2019. Provides that for the 2020-21 fiscal year, $2,515,098 of funds appropriated to the program are to be allocated to the Authority to award grants to recipients selected prior to January 1, 2019.

Makes the following changes to Part 4, Transforming Principal Preparation Grant Program (Grant Program), of Article 23 of GS Chapter 116. Limits the applicability of the Part to the administration of grants for grant recipients selected prior to January 1, 2019. Expands the program to include the provision of forgivable scholarship loans to school leader preparation program participants, administered by the Authority as provided. Adds the defined term public school. Amends GS 116-209.73 concerning grant administration under the Grant Program to make conforming changes to eliminate provisions regarding grant renewal. Enacts GS 116-209.75 to authorize the Authority to use up to $130,000 each year of the 2019-20 and 2020-21 fiscal years from the total funds appropriated to the program for its administrative costs. Enacts GS 116-209.76, setting forth the terms of forgivable scholarship loans under the program. Eligibility includes $20,000 per year for up to four years in the program, with a maximum loan amount of $40,000 per participant. Requires evidence of the loan by promissory note, bearing interest at no more than 10% annually, beginning at the earlier of 90 days after completion of the school leader preparation program or 90 days after termination of the loan. Requires the loan to be disbursed directly to the grantee. Allows termination upon withdrawal from the preparation program or noncompliance with the standards set by the Commission. Provides for forgiveness of the total loan amount and interest accrued if, within seven years after graduation from a school leader preparation program, the recipient serves as a school administrator at an NC public school, excluding authorized deferment for extenuating circumstances. Varies the percentage of the loan forgiven based on whether the recipient serves in a high-need school. Requires the Commission and the grantees to monitor service repayment agreements and compliance. Allows a loan to be forgiven if the Commission finds it is impossible for the recipient to work for four years as a school administrator, within seven years after completion of the program, because of the death or permanent disability of the recipient. Requires the loan to be repaid within 10 years after completion of the program if the recipient is paying with cash payments. Provides for payment of principal and interest to begin no later than 27 months after completion of the program. Makes extension available for extenuating circumstances for cash payments for a period of no more than a total of 12 years. Applies beginning with school leader program participants entering, on or after June 1, 2020, a school leader preparation program supported by a grant awarded under the Program. 

Repeals Part 4 of Article 23 of GS Chapter 116, as amended, and Section 11.9(o) of SL 2015-241, as amended, effective July 1, 2021. Additionally repeals Section 11.9(m) of SL 2015-241, effective July 1, 2021, which allocates $500,000 per fiscal year to the Authority for the Program's administration. 

Makes the following changes to Article 5C, NC Principal Fellows Program, of GS Chapter 116.

Amends GS 116-74.41, renaming the NC Principal Fellows Commission as the NC Principal Fellows and TP3 Commission (Commission). Makes conforming changes throughout the Article. Provides that the Commission is to exercise its powers and duties independently (was, independently of the UNC Board of Governors) in administering the NC Principal Fellows and Transforming Principal Preparation Program, which includes the Principal Fellows Program and the NC Transforming Principal Preparation Program (Program). Requires the Director of the Program to staff the Commission in accordance with GS 116-74.49, as enacted. Adds to the responsibilities of the Authority the award of grants and execution and enforcement of forgivable loan agreements under GS 116-74.46 and GS 116-74.48, as enacted. Increases membership of the Commission from 12 to 15 members, adding one dean of a school appointed by the President of the NC Independent Colleges and Universities, one human resources expert from the private sector appointed by the State Superintendent of Public Instruction, the Executive Director of the NC Principals and Assistant Principals' Association or a designee, the President of the Personnel Administrators of North Carolina or a designee, and the President and CEO of NC Business Leaders for Education or a designee. Modifies membership to now require one rather than two deans of a school appointed by the UNC President, and to no longer require one parent of a public school child. Provides for the initial meeting of the Commission and appointment of the director by the Commission at that meeting.

Enacts GS 116-74.41A, setting forth defined terms for the Article. Makes conforming changes to reflect the chosen terminology throughout the Article.

Enacts GS 116-74.41B, establishing the NC Principal Fellows and TP3 Trust Fund (Trust Fund) as an institutional trust fund, consisting of appropriations and funds received by the Principal Fellows Program for scholarships and other program purposes, the Program for the award of grants, all funds received as repayment of scholarship loans, and all interest earned. Restricts use of the Trust Fund to: scholarship loans granted under the Principal Fellows Program, administrative costs, and operation costs; and the award of grants under the Program, as described. Allows the Authority to use up to 2% of funds appropriated each fiscal year or $160,000 from the Trust Fund, whichever is greater, for its administrative costs. Authorizes the Authority to allocate up to $800,000 to the Commission each fiscal year for the salary and benefits of the director and Program staff; the expenses of the Commission for the Principal Fellows Program; Principal Fellows Program monitoring and evaluation; extracurricular enhancement activities for Program; and the Commission expenses for grant administration pursuant to GS 116-74.44, as enacted. 

Amends GS 116-74.42, eliminating the Principal Fellows Trust Fund. Specifies that the Director of the Program appointed by the Commission is to oversee the Principal Fellows Program. Requires the UNC System Office to provide office space and staff for the Principal Fellows Program pursuant to GS 116-74.49, as enacted. Makes further technical changes to limit the statute's scope to the Principal Fellows Program, as it is under existing law. Similarly modifies GS 116-74.43 to limit the scope of the statute to the Principal Fellows Program.

Enacts GS 116-74.44 through GS 116-74.76, establishing the NC Transforming Principal Preparation Program (TP3) with the same purpose as the program under GS 116-209.70, as amended. Transfers much of the language from Part 4 of Article 23 of GS Chapter 116, as amended. Charges the Authority with TP3 administration in collaboration with the Commission (previously, the program was administered through a cooperative agreement with a private, nonprofit corporation). Provides for program administration and the administration of forgivable scholarship loans. Details grant application requirements and establishes priority for certain eligible entities with a record of preparing principals in five specified areas. Defines eligible entity under the Article to mean a for-profit or nonprofit organization or institution of higher education that has an evidence-based plan for preparing school leaders who implement school leadership practices linked to increased student achievement. Sets forth procedures for the selection of up to eight grant recipients in any fiscal year by the Commission and details required uses of grant funds, including operating a school leader preparation program that provides the opportunity for all candidates to earn a master's degree and subsequent licensure and covering the cost of attendance and completion for program participants for the school leader preparation program. Provides for grants to be at least two years but no more than five years in duration, unless the Commission finds early termination warranted for noncompliance with the grant terms. Allows the Commission to renew a grant based on compliance with the grant terms and performance, including allowing the grantee to scale up or replicate the successful program. Details grant conditions, including requiring the Commission to develop procedures for the early retrieval of funds for noncompliance with the grant terms and the disbursement of forgivable scholarship loans. Sets forth considerations for the Commission to consider in evaluating performance for purposes of grant renewal, with primary consideration given to improvement in student achievement. Establishes reporting requirements for grantees as described and requires grantees to share its practices and materials. Subject to privacy constraints, requires the Commission to work with recipients, local school administrative units, and public schools to collect, analyze, and evaluate specified data relevant to the program.

Enacts GS 116-74.47 to require the Commission to annually submit the data collected from grantees under GS 116-74.46 to the State Board of Education, the Authority, and the specified NCGA committee. 

Enacts GS 116-74.48, setting forth the terms of forgivable scholarship loans under the program, mirroring those enacted in GS 116-209.76. Additionally provides for funds from the forgivable scholarship loan to be disbursed directly to the grantee on behalf of the recipient for participation in the school leader preparation program. 

Enacts GS 116-74.49 to mandate the Commission to appoint a director of the Program (including the Principal Fellow Programs and the TP3). Provides for the director to chair and staff the Commission and administer the extracurricular enhancement activities of the Program. Requires the UNC System Office to provide office space for the Program, and specifically requires that the office space not be located on a campus of a constituent institution. 

Makes further technical and conforming changes.

Makes conforming changes to GS 120-123, prohibiting legislators from serving on the Commission.

Provides for the expiration of the current members serving on the principal Fellows Commission representing two deans of schools and a parent of a public school parent, effective July 1, 2019. Requires initial appointments to the Commission, as amended, to be made by August 1, 2019, and provides two- and four-year terms as specified. Requires the remaining Commission members serving on the Principal Fellows Commission as of July 1, 2019, and appointed under GS 116-74.41 to serve the remainder of their four-year terms as members of the Commission. 

Allows grantees for the 2019-20 or 2020-21 fiscal years awarded under GS 116-209.73 to apply to the Commission for grant renewal  pursuant to GS 116-74.46, as enacted. Subjects any grant term extending on or after July 1, 2021, to the provisions of Article 5C, as amended, for the remainder of the grant term, beginning July 1, 2021. Specifies that eligibility for a forgivable scholarship loan under GS 116-74.48, as enacted, applies beginning with the school leader program participants entering, on or after June 1, 2020, a school leader preparation program that is supported by a grant awarded pursuant to GS 116-74.46, as enacted. 

Directs the Office of State Budget and Management to transfer the unexpended balance of the Principal Fellows Trust Fund to the Trust Fund.

Beginning with the 2019-20 fiscal year, of the funds appropriated from the General Fund to the Principal Fellows Trust Fund each fiscal year, appropriates $3,258,000 in recurring funds to the Trust Fund. 

Beginning with the 2020-21 fiscal year, of the funds appropriated from the General Fund to the UNC Board of Governors for the Transforming Principal Preparation Grant Program of GS 116-209.70, appropriates $1,573,902 in recurring funds to the Trust Fund to be used to award TP3 grants pursuant to GS 116-74.43.

Repeals GS 116-74.42 and GS 116-74.43, concerning administration of the Principal Fellows Program, effective July 1, 2021. Directs the Commission to make final scholarship awards for the Principal Fellows Program for the 2021 spring academic semester. 

Effective July 1, 2021, amends GS 115-204 to add to the duties of the Authority collecting loan repayments for scholarship loans awarded under the former Principal Fellows Program under Article 5C if the loan repayment is outstanding for more than 30 days.

Effective July 1, 2021, enacts GS 116-209.28 to provide for the Authority's administration of scholarships previously awarded by the NC Principal Fellows Commission and subject to repayment under the Principal Fellows Program. Mandates that all funds received by the Authority in this capacity are to be deposited in the Trust Fund.

Effective July 1, 2021, further amends specified statutes of Article 5C of GS Chapter 116 to remove references to the Principal Fellows Program. Amends GS 116-74.44 to rename the NC TP3 as the NC Principal Fellows and Transforming Principal Preparation Program. Charges the Authority with monitoring the implementation of forgivable scholarship loans to school leader preparation program participants executed pursuant to GS 116-209.76 and the administration of all outstanding forgivable scholarship loans previously awarded and subject to repayment under the program administered pursuant to Part 4 of Article 23. Makes further technical and conforming changes. 

Beginning with the 2021-22 fiscal year, of the funds appropriated from the General Fund to the UNC Board of Governors for the Transforming Principal Preparation Grant Program of GS 116-209.70, appropriates $3,006,098 in recurring funds to the Trust Fund.

Makes conforming changes to the act's titles.