North Carolina 2025-2026 Regular Session

North Carolina House Bill H566 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 566
	3	+	H D
	4	+	HOUSE BILL DRH40289-MT-56A
	5	+
5	6
6	7
7	8		Short Title: Principal Fellows Changes. (Public)
8		-	Sponsors: Representatives Cotham, Blackwell, Biggs, and Willis (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Education - K-12, if favorable, State and Local Government, if favorable, Rules,
11		-	Calendar, and Operations of the House
12		-	March 31, 2025
13		-	H566 -v-1
	9	+	Sponsors: Representative Cotham.
	10	+	Referred to:
	11	+
	12	+	DRH40289 -MT-56A
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO MAKE VARIOUS CHANGES TO THE PRINCIPAL FELLOWS PROGRAM . 2
16	15		The General Assembly of North Carolina enacts: 3
17	16		4
18	17		PART I. ESTABLISH DEVELOPMENT GRANTS FOR PRINCIPAL FELLOWS 5
19	18		PROGRAM 6
20	19		SECTION 1. Article 5C of Chapter 116 of the General Statutes reads as rewritten: 7
21	20		"Article 5C. 8
22	21		"North Carolina Principal Fellows Program. 9
23	22		… 10
24	23		"§ 116-74.44. North Carolina Principal Fellows Program established; administration. 11
25	24		(a) Established. – There is established the North Carolina Principal Fellows Program as 12
26	25		a competitive grant program for eligible entities for the purpose of elevating educators in North 13
27	26		Carolina public schools by transforming the preparation of principals across the State and 14
28	27		providing for (i) forgivable scholarship loans to the participants of those school leader 15
29	28		preparation programs. programs and (ii) grants to school leader preparation programs to develop 16
30	29		innovative ways of training principals. The Authority shall administer the North Carolina 17
31	30		Principal Fellows Program in collaboration with the Commission as set forth in this Article to 18
32	31		provide funds for the preparation and support of highly effective future school principals in North 19
33	32		Carolina. 20
34	33		… 21
35	34		(c) Administration of Forgivable Scholarship Loans. – Upon the grant recipients' 22
36	35		selection selection by grant recipients for forgivable scholarship loans of the program participants 23
37	36		for the school leader preparation programs, the Commission shall transfer the names of all 24
38	37		program participants to the Authority. The Authority shall perform all of the administrative 25
39	38		functions necessary to implement the forgivable scholarship loans to the school leader 26
40	39		preparation program participants, which functions shall include rule making, disseminating 27
41	40		information, acting as a liaison with participating eligible entities, implementing forgivable loan 28
42	41		agreements in the form of promissory notes, monitoring loan repayment through service and 29
43	42		cash, and performing all other functions necessary for the execution, payment, and enforcement 30
44	43		of promissory notes required under this Article. 31
45	44		… 32
46		-	"§ 116-74.45. Grant applications; priority. 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 566-First Edition
48		-	(a) Application Requirements. – Subject to the availability of funds for this purpose, the 1
49		-	Commission shall issue a request for proposal with guidelines and criteria for applying for a 2
50		-	grant. grants to provide forgivable scholarship loans and develop innovative ways of training 3
51		-	principals. An eligible entity that seeks a grant shall submit to the Commission an application at 4
52		-	such time, in such manner, and accompanied by such information as the Commission may 5
53		-	require. Eligible entities may create partnerships to develop and establish school leader 6
54		-	preparation programs and apply jointly to be a grant recipient. An applicant shall include at least 7
55		-	the following information in its application for consideration by the Commission: 8
56		-	… 9
57		-	"§ 116-74.46. Recipient selection; use of grant funds; duration and conditions of grants; 10
58		-	reporting requirements. 11
59		-	(a) Selection. – After evaluation of grant applications pursuant to G.S. 116-74.45, the 12
60		-	Commission shall notify the Authority of its selection of the recipients of grants for each fiscal 13
61		-	year. The Commission shall select up to eight grant recipients to be operating operate a school 14
62		-	leader preparation program with grant funds for forgivable scholarship loans in any fiscal 15
63		-	year.year and up to two recipients for a grant of up to two hundred fifty thousand dollars 16
64		-	($250,000) per recipient per fiscal year to develop innovative ways of training principals. 17
65		-	(b) Use of Funds. Grant Funds for Forgivable Scholarship Loans. – Each eligible entity 18
66		-	that receives grant funds for forgivable scholarship loans shall use those funds to carry out the 19
67		-	following: 20
68		-	… 21
69		-	(c) Duration and Conditions of Grants. – The Commission shall also notify the Authority 22
70		-	of its decisions on the duration and renewal of grants to eligible entities made in accordance with 23
71		-	the following: 24
72		-	(1) The duration of grants for forgivable scholarship loans shall be as follows: 25
73		-	a. Grants shall be no more than six years and no fewer than two years in 26
74		-	duration, unless the Commission finds early termination of a grant is 27
75		-	necessary due to noncompliance with grant terms. 28
76		-	b. The Commission may renew a grant based on compliance with the 29
77		-	grant terms and performance, including allowing the grantee to scale 30
78		-	up or replicate the successful program as provided in subdivision (3) 31
79		-	of this subsection. 32
80		-	(1a) The duration of grants for training development shall be for one year. The 33
81		-	Commission may renew a grant for training development, in its discretion, on 34
82		-	an annual basis. 35
83		-	… 36
84		-	(3) In evaluating performance for purposes of grant renewal and making its 37
85		-	renewal decisions to provide to the Authority, Authority pursuant to 38
86		-	subdivision (1) of this subsection, the Commission shall consider at least the 39
87		-	following: 40
88		-	… 41
89		-	(d) Reporting Requirements for Grant Recipients. – Recipients of grants shall participate 42
90		-	in all evaluation activities required by the Commission and submit an annual report to the 43
91		-	Commission with any information requested by the Commission. The recipients shall comply 44
92		-	with additional report requests made by the Commission. Whenever practicable and within a 45
93		-	reasonable amount of time, grant recipients shall also make all materials developed as part of the 46
94		-	program and with grant funds publicly available to contribute to the broader sharing of promising 47
95		-	practices. Materials shall not include personally identifiable information regarding individuals 48
96		-	involved or associated with the program, including, without limitation, applicants, participants, 49
97		-	supervisors, evaluators, faculty, and staff, without their prior written consent. The Commission 50
98		-	shall work with recipients, local school administrative units, and public schools, as needed, to 51 General Assembly Of North Carolina Session 2025
99		-	House Bill 566-First Edition Page 3
100		-	enable the collection, analysis, and evaluation of at least the following relevant data, data related 1
101		-	to grants for forgivable scholarship loans, within necessary privacy constraints: 2
102		-	(1) Student achievement in eligible schools. 3
103		-	(2) The percentage of program completers who are placed as school leaders 4
104		-	within three years in the State. 5
105		-	(3) The percentage of program completers who are placed as school leaders 6
106		-	within three years in high-need schools in the State. 7
107		-	(4) The percentage of program completers rated proficient or above on school 8
108		-	leader evaluation and support systems. 9
109		-	(5) The percentage of program completers that are school leaders who have 10
110		-	remained employed in a North Carolina public school for two or more years 11
111		-	of initial placement. 12
112		-	…." 13
113		-	14
114		-	PART II. PRINCIPAL FELLOWS PROGRAM MAY USE ADMINISTRATIVE FUNDS 15
115		-	FOR STATEWIDE PROGRA MMING 16
116		-	SECTION 2. G.S. 116-74.41B reads as rewritten: 17
117		-	"§ 116-74.41B. The North Carolina Principal Fellows Trust Fund. 18
118		-	… 19
119		-	(b) Use of Monies in the Trust Fund. – The monies in the Trust Fund may be used only 20
120		-	for the purposes set forth in this subsection, including the award of grants pursuant to 21
121		-	G.S. 116-74.44, administrative costs, and costs associated with Program operations in 22
122		-	accordance with this Article. The Authority may use up to two percent (2%) of the funds 23
123		-	appropriated for the Program or one hundred sixty thousand dollars ($160,000) from the Trust 24
124		-	Fund, whichever is greater, each fiscal year for administrative costs, including recovery of funds 25
125		-	advanced under the Program, and may allocate to the Commission up to eight hundred thousand 26
126		-	dollars ($800,000) from the Trust Fund each fiscal year for the following: 27
127		-	(1) The salary and benefits of the director and staff of the Program. 28
128		-	(2) The expenses of the Commission to administer the Program. 29
129		-	(3) Program monitoring and evaluation. 30
130		-	(4) Extracurricular enhancement activities for the Program. 31
131		-	(5) Repealed by Session Laws 2019-60, s. 1(y), effective July 1, 2021. 32
132		-	(6) Programming on research-based school leadership practices to be shared with 33
133		-	eligible entities in order to improve principal preparation throughout the State. 34
134		-	(c) Remaining Funds. – If at the end of each fiscal year there are funds remaining in the 35
135		-	Trust Fund that are not obligated or otherwise encumbered for another purpose, upon the request 36
136		-	of the Commission, the Authority shall allocate the funds to the Commission for any of the 37
137		-	purposes identified in subdivisions (3) through (6) of subsection (b) of this section." 38
138		-	39
139		-	PART III. EFFECTIVE DATE 40
140		-	SECTION 3. This act becomes effective July 1, 2025. 41
	45	+	"§ 116-74.45. Grant applications; priority. 33
	46	+	(a) Application Requirements. – Subject to the availability of funds for this purpose, the 34
	47	+	Commission shall issue a request for proposal with guidelines and criteria for applying for a 35
	48	+	grant. grants to provide forgivable scholarship loans and develop innovative ways of training 36
	49	+	H.B. 566
	50	+	Mar 27, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH40289-MT-56A
	53	+	principals. An eligible entity that seeks a grant shall submit to the Commission an application at 1
	54	+	such time, in such manner, and accompanied by such information as the Commission may 2
	55	+	require. Eligible entities may create partnerships to develop and establish school leader 3
	56	+	preparation programs and apply jointly to be a grant recipient. An applicant shall include at least 4
	57	+	the following information in its application for consideration by the Commission: 5
	58	+	… 6
	59	+	"§ 116-74.46. Recipient selection; use of grant funds; duration and conditions of grants; 7
	60	+	reporting requirements. 8
	61	+	(a) Selection. – After evaluation of grant applications pursuant to G.S. 116-74.45, the 9
	62	+	Commission shall notify the Authority of its selection of the recipients of grants for each fiscal 10
	63	+	year. The Commission shall select up to eight grant recipients to be operating operate a school 11
	64	+	leader preparation program with grant funds for forgivable scholarship loans in any fiscal 12
	65	+	year.year and up to two recipients for a grant of up to two hundred fifty thousand dollars 13
	66	+	($250,000) per recipient per fiscal year to develop innovative ways of training principals. 14
	67	+	(b) Use of Funds. Grant Funds for Forgivable Scholarship Loans. – Each eligible entity 15
	68	+	that receives grant funds for forgivable scholarship loans shall use those funds to carry out the 16
	69	+	following: 17
	70	+	… 18
	71	+	(c) Duration and Conditions of Grants. – The Commission shall also notify the Authority 19
	72	+	of its decisions on the duration and renewal of grants to eligible entities made in accordance with 20
	73	+	the following: 21
	74	+	(1) The duration of grants for forgivable scholarship loans shall be as follows: 22
	75	+	a. Grants shall be no more than six years and no fewer than two years in 23
	76	+	duration, unless the Commission finds early termination of a grant is 24
	77	+	necessary due to noncompliance with grant terms. 25
	78	+	b. The Commission may renew a grant based on compliance with the 26
	79	+	grant terms and performance, including allowing the grantee to scale 27
	80	+	up or replicate the successful program as provided in subdivision (3) 28
	81	+	of this subsection. 29
	82	+	(1a) The duration of grants for training development shall be for one year. The 30
	83	+	Commission may renew a grant for training development, in its discretion, on 31
	84	+	an annual basis. 32
	85	+	… 33
	86	+	(3) In evaluating performance for purposes of grant renewal and making its 34
	87	+	renewal decisions to provide to the Authority, Authority pursuant to 35
	88	+	subdivision (1) of this subsection, the Commission shall consider at least the 36
	89	+	following: 37
	90	+	… 38
	91	+	(d) Reporting Requirements for Grant Recipients. – Recipients of grants shall participate 39
	92	+	in all evaluation activities required by the Commission and submit an annual report to the 40
	93	+	Commission with any information requested by the Commission. The recipients shall comply 41
	94	+	with additional report requests made by the Commission. Whenever practicable and within a 42
	95	+	reasonable amount of time, grant recipients shall also make all materials developed as part of the 43
	96	+	program and with grant funds publicly available to contribute to the broader sharing of promising 44
	97	+	practices. Materials shall not include personally identifiable information regarding individuals 45
	98	+	involved or associated with the program, including, without limitation, applicants, participants, 46
	99	+	supervisors, evaluators, faculty, and staff, without their prior written consent. The Commission 47
	100	+	shall work with recipients, local school administrative units, and public schools, as needed, to 48
	101	+	enable the collection, analysis, and evaluation of at least the following relevant data, data related 49
	102	+	to grants for forgivable scholarship loans, within necessary privacy constraints: 50
	103	+	(1) Student achievement in eligible schools. 51 General Assembly Of North Carolina Session 2025
	104	+	DRH40289-MT-56A Page 3
	105	+	(2) The percentage of program completers who are placed as school leaders 1
	106	+	within three years in the State. 2
	107	+	(3) The percentage of program completers who are placed as school leaders 3
	108	+	within three years in high-need schools in the State. 4
	109	+	(4) The percentage of program completers rated proficient or above on school 5
	110	+	leader evaluation and support systems. 6
	111	+	(5) The percentage of program completers that are school leaders who have 7
	112	+	remained employed in a North Carolina public school for two or more years 8
	113	+	of initial placement. 9
	114	+	…." 10
	115	+	11
	116	+	PART II. PRINCIPAL FELLOWS PROGRAM MAY USE ADMINISTRATIVE FUNDS 12
	117	+	FOR STATEWIDE PROGRAMMING 13
	118	+	SECTION 2. G.S. 116-74.41B reads as rewritten: 14
	119	+	"§ 116-74.41B. The North Carolina Principal Fellows Trust Fund. 15
	120	+	… 16
	121	+	(b) Use of Monies in the Trust Fund. – The monies in the Trust Fund may be used only 17
	122	+	for the purposes set forth in this subsection, including the award of grants pursuant to 18
	123	+	G.S. 116-74.44, administrative costs, and costs associated with Program operations in 19
	124	+	accordance with this Article. The Authority may use up to two percent (2%) of the funds 20
	125	+	appropriated for the Program or one hundred sixty thousand dollars ($160,000) from the Trust 21
	126	+	Fund, whichever is greater, each fiscal year for administrative costs, including recovery of funds 22
	127	+	advanced under the Program, and may allocate to the Commission up to eight hundred thousand 23
	128	+	dollars ($800,000) from the Trust Fund each fiscal year for the following: 24
	129	+	(1) The salary and benefits of the director and staff of the Program. 25
	130	+	(2) The expenses of the Commission to administer the Program. 26
	131	+	(3) Program monitoring and evaluation. 27
	132	+	(4) Extracurricular enhancement activities for the Program. 28
	133	+	(5) Repealed by Session Laws 2019-60, s. 1(y), effective July 1, 2021. 29
	134	+	(6) Programming on research-based school leadership practices to be shared with 30
	135	+	eligible entities in order to improve principal preparation throughout the State. 31
	136	+	(c) Remaining Funds. – If at the end of each fiscal year there are funds remaining in the 32
	137	+	Trust Fund that are not obligated or otherwise encumbered for another purpose, upon the request 33
	138	+	of the Commission, the Authority shall allocate the funds to the Commission for any of the 34
	139	+	purposes identified in subdivisions (3) through (6) of subsection (b) of this section." 35
	140	+	36
	141	+	PART III. EFFECTIVE DATE 37
	142	+	SECTION 3. This act becomes effective July 1, 2025. 38