A BILL TO BE ENTITLED
AN ACT to authorize The department of public instruction to use funds to enter into a statewide cooperative purchasing agreement for office PRODUCTIVITY software for public schools, TO ESTABLISH THE OFFICE OF PRINCIPAL PREPARATION, to amend the process for Tuition endorsements and reimbursements for scholarships for students with disabilities, AND TO EXEMPT STUDENTS AT THE SCHOOL OF SCIENCE AND MATHEMATICS and the school of the arts FROM PAYING FEES FOR ADVANCED PLACEMENT EXAMS.
The General Assembly of North Carolina enacts:
SECTION 1.  S.L. 2015‑241 is amended by adding a new section to read:
"SECTION 8.49. The Department of Public Instruction may use funds appropriated to the Department for the 2015‑2016 fiscal year and subsequent fiscal years to (i) enter into a statewide cooperative purchasing agreement to provide office productivity software for students, teachers, and other staff of North Carolina public schools, including charter schools, and (ii) provide technical support and professional development on the use of the software."
SECTION 1.5.  Section 11.9 of S.L. 2015‑241 reads as rewritten:
"SECTION 11.9.(a)  Purpose. – The purpose of this section is to establish a competitive grant program for eligible entities to elevate educators in North Carolina public schools by transforming the preparation of principals across the State. The State Education Assistance Authority (Authority) shall administer this grant program through the Office of Principal Preparation established within the Authority pursuant to subsection (d) of this section to provide funds for the preparation and support of highly effective future school principals in North Carolina.
"SECTION 11.9.(b)  Definitions. – For the purposes of this section, the following definitions apply:
(1)	Eligible entity. – A for‑profit or nonprofit organization or an institution of higher education that has an evidence‑based plan for preparing school leaders who implement school leadership practices linked to increased student achievement.
(2)	High‑need school. – A public school, including a charter school, that meets one or more of the following criteria:
a.	Is a school identified under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended.
b.	Is a persistently low‑achieving school, as identified by the Department of Public Instruction for purposes of federal accountability.
c.	A middle school containing any of grades five through eight that feeds into a high school with less than a sixty percent (60%) four‑year cohort graduation rate.
d.	A high school with less than a sixty percent (60%) four‑year cohort graduation rate.
(3)	Principal. – The highest administrative official in a public school building with primary responsibility for the instructional leadership, talent management, and organizational development of the school.
(4)	School leader. – An individual employed in a school leadership role, including principal or assistant principal roles.
(5)	Student achievement. – At the whole school level, after three years of leading a school, consistent and methodologically sound measures of:
a.	Student academic achievement.
b.	Aggregated individual student academic growth.
c.	Additional outcomes, such as high school graduation rates, the percentage of students taking advanced‑level coursework, or the percentage of students who obtain a career‑related credential through a national business certification exam.
"SECTION 11.9.(c)  Program Authorized. – The Authority shall award grants to eligible entities to support programs that develop well‑prepared school leaders in accordance with the provisions of this section. The Authority shall establish any necessary rules to administer the grant program.
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"SECTION 11.9.(d)  Establish Office of Principal Preparation. – There is establishedwithin the State Education Assistance Authority (Authority) an Office of Principal Preparation (Office). The Office shall have the following responsibilities:
(1)	To make recommendations to the Authority for the award of grants, as authorized by this section.
(2)	To develop and oversee the selection criteria, the selection process, selection outreach efforts, renewal, continuation, and reporting criteria.
(3)	To build a portfolio of approved technical assistance providers to grantees.
(4)	To work with the educational community across North Carolina to successfully implement each of the programs outlined in this act.
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"SECTION 11.9.(e)  Office Director and staff. – The Executive Director of the Authority shall appoint a director of the Office and shall employ sufficient Office staff who have demonstrated a capacity for the development and implementation of grant selection criteria and a selection process to promote innovative school leader education programs, including all of the following: (i) focus on school leader talent; (ii) expertise supporting judgments about grant renewal based on achievement of or substantial school leader progress toward measurable results in student achievement; and (iii) expectation of creating positive experiences working with the educational community in North Carolina to establish the foundation for successfully administering the programs set forth in this section.
Notwithstanding any other provision of law, any employee hired as Office staff, including the Director of the Office, who voluntarily relinquishes annual longevity payments, relinquishes any claim to longevity pay, voluntarily relinquishes any claim to career status or eligibility for career status as approved by the Executive Director of the Authority and the Director of the Office of State Human Resources (OSHR) is exempt from all of the following: (i) the classification and compensation rules established by the State Human Resources Commission pursuant to G.S. 126‑4(1) through (4); (ii) G.S. 126‑4(5) only as it applies to hours and days of work, vacation, and sick leave; (iii) G.S. 126‑4(6) only as it applies to promotion and transfer; (iv) G.S. 126‑4(10) only as it applies to the prohibition of the establishment of incentive pay programs; and (v) Article 2 of Chapter 126 of the General Statutes, except for G.S. 126‑7.1.
"SECTION 11.9.(f)  Application Requirements. – The Office shall issue an initial RFP with guidelines and criteria for the grants no later than January 1, 2016. An eligible entity that seeks a grant under the program authorized by this section shall submit to the Office an application at such time, in such manner, and accompanied by such information as the Office may require. An applicant shall include at least the following information in its response to the RFP for consideration by the Office:
(1)	The extent to which the entity has a demonstrated record of preparing school leaders who implement school leadership practices linked to increased student achievement.
(2)	The extent to which the entity has a rigorous school leader preparation program design that includes the following research‑based programmatic elements:
a.	A proactive, aggressive, and intentional recruitment strategy.
b.	Rigorous selection criteria based on competencies that are predictive of success as a school leader, including, but not limited to, evidence of significant positive effect on student learning growth in the classroom, at the school‑level, and the local school administrative unit‑level, professional recommendations, evidence of problem solving and critical thinking skills, achievement drive, and leadership of adults.
c.	Alignment to high‑quality national standards for school leadership development.
d.	Rigorous coursework that effectively links theory with practice through the use of field experiences and problem‑based learning.
e.	Full‑time clinical practice of at least five months in duration in an authentic setting, including substantial leadership responsibilities where candidates are evaluated on leadership skills and effect on student outcomes as part of program completion.
f.	Multiple opportunities for school leader candidates to be observed and coached by program faculty and staff.
g.	Clear expectations for and firm commitment from school leaders who will oversee the clinical practice of candidates.
h.	Evaluation of school leader candidates during and at the end of the clinical practice based on the North Carolina School Executive Evaluation Rubric.
i.	A process for continuous review and program improvement based on feedback from partnering local school administrative units and data from program completers, including student achievement data.
j.	Established relationship and feedback loop with affiliated local school administrative units that is used to inform and improve programmatic elements from year to year based on units' needs.
"SECTION 11.9.(g)  Priorities. – The Office shall evaluate the applicants for grants by giving priority to an eligible entity with a record of preparing principals demonstrating the following:
(1)	Improvement in student achievement.
(2)	Placement as school leaders in eligible schools.
(3)	A proposed focus on and, if applicable, a record of serving high‑need schools, high‑need local school administrative units, or both.
(4)	A detailed plan and commitment to share lessons learned and to improve the capacity of other entities in reaching similar outcomes.
"SECTION 11.9.(h)  Uses of Funds. – By March 1, 2016, the Office shall recommend to the Authority the recipients of grants under the program. Each eligible entity that receives grant funds shall use those funds to carry out the following:
(1)	Recruiting and selecting, based on a rigorous evaluation of the competencies of the school leader candidates participating in the program and their potential and desire to become effective school leaders.
(2)	Operating a school leader preparation program by doing the following:
a.	Utilizing a research‑based content and curriculum, including embedded participant assessments to evaluate candidates before program completion, that prepares candidates to do the following:
1.	Provide instructional leadership, such as developing teachers' instructional practices and analyzing classroom and school‑wide data to support teachers.
2.	Manage talent, such as developing a high‑performing team.
3.	Build a positive school culture, such as building a strong school culture focused on high academic achievement for all students, including gifted and talented students, students with disabilities, and English learners, maintaining active engagement with family and community members, and ensuring student safety.
4.	Develop organizational practices, such as aligning staff, budget, and time to the instructional priorities of the school.
b.	Providing opportunities for sustained and high‑quality job‑embedded practice in an authentic setting where candidates are responsible for moving the practice and performance of a subset of teachers or for school‑wide performance as principal‑in‑planning or interim school leaders.
(3)	Collecting data on program implementation and program completer outcomes for continuous program improvement.
"SECTION 11.9.(i)  Duration of Grants. – The Office shall also recommend to the Authority the duration and renewal of grants to eligible entities according to the following:
(1)	The duration of grants shall be as follows:
a.	Grants shall be no more than five years in duration.
b.	The Office may recommend renewal of a grant based on performance, including allowing the grantee to scale up or replicate the successful program as provided in subdivision (2) of this subsection.
(2)	In evaluating performance for purposes of grant renewal and making recommendations to the Authority, the Office shall consider:
a.	For all grantees, the primary consideration in renewing grants shall be the extent to which program participants improved student achievement in eligible schools.
b.	Other criteria from data received in the annual report in subsection (j) of this section may include the following:
1.	The percentage of program completers who are placed as school leaders in this State within three years of receiving a grant.
2.	The percentage of program completers who are rated proficient or above on the North Carolina School Executive Evaluation Rubric.
"SECTION 11.9.(j)  Reporting Requirements for Grant Recipients. – Recipients of grants under the program shall submit an annual report to the Office beginning in the third year of the grant, with any information requested by the Office. Whenever practicable and within a reasonable amount of time, grant recipients shall also make all materials developed as part of the program and with grant funds publically available to contribute to the broader sharing of promising practices. Materials shall not include personally identifiable information regarding individuals involved or associated with the program, including, without limitation, applicants, participants, supervisors, evaluators, faculty, and staff, without their prior written consent. The Office shall work with recipients and local school administrative units, as needed, to enable the collection, analysis, and evaluation of at least the following relevant data, within necessary privacy constraints:
(1)	Student achievement in eligible schools.
(2)	The percentage of program completers who are placed as school leaders within three years in the State.
(3)	The percentage of program completers rated proficient or above on school leader evaluation and support systems.
"SECTION 11.9.(k)  Licensure Process. – By June 1, 2016, the State Board of Education shall adopt a policy to provide for a specific licensure process applicable to school administrators who provide documentation to the State Board of successful completion of a principal preparation program selected for a competitive grant in accordance with this section.
"SECTION 11.9.(l)  Evaluation and Revision of Program. – The Office shall provide the State Board of Education with the data collected in accordance with subsection (j) of this section on an annual basis. By September 15, 2021, the State Board of Education, in coordination with the Board of Governors of The University of North Carolina, shall revise, as necessary, the licensure requirements for school administrators and the standards for approval of school administrator preparation programs after evaluating the data collected from the grant recipients, including the criteria used in selecting grant recipients and the outcomes of program completers. The State Board of Education shall report to the Joint Legislative Education Oversight Committee by November 15, 2021, on any changes made to the licensure requirements for school administrators and the standards for approval of school administrator preparation programs in accordance with this section.
"SECTION 11.9.(m)  Extension of certain deadlines. – The General Assembly finds that it is important for the competitive grant program established by this act be implemented in a timely manner so that the program will be available as soon as possible for eligible entities which will in turn benefit students who have the potential and desire to become effective school leaders. However, if the Office makes a good faith effort to meet the deadlines established in subsections (f) and (h) of this section and the Authority determines that additional time is required to satisfactorily meet those deadlines, the deadlines under each of those subsections may be extended by an additional 30 days.
"SECTION 11.9.(n)  Of the funds appropriated each fiscal year for this program, the sum of five hundred thousand dollars ($500,000) shall be allocated to the State Education Assistance Authority to be used as follows:
(1)	Four hundred seventy‑five thousand dollars ($475,000) shall be used to hire the Office director and office staff, and for the operating expenses of the Office.
(2)	Twenty‑five thousand dollars ($25,000) shall be used by the State Education Assistance Authority for the Authority's administrative costs regarding the program created by this act.
"SECTION 11.9.(o)  Beginning with the 2016‑2017 fiscal year, of the funds appropriated for this program, the sum of five hundred thousand dollars ($500,000) shall be allocated each fiscal year to the State Education Assistance Authority to award grants to selected recipients."
SECTION 2.  G.S. 115C‑112.6(b1)(1), as enacted by Section 11.11(a) of S.L. 2015‑241, reads as rewritten:
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(1)	Tuition endorsements and reimbursements. – The Authority shall disburse scholarship funds for tuition for eligible students awarded pursuant to this section as provided in this subdivision. The method of disbursement varies based on the criteria satisfied by the school. Scholarship funds shall not be provided for tuition for home‑schooled students. The two methods for the disbursement of scholarship funds follow:
a.	Scholarship endorsement for tuition. – The Authority shall remit, at least two times each school year, scholarship funds awarded to eligible students for endorsement by at least one of the student's parents or guardians for tuition to attend a nonpublic school that meets the requirements of Part 1 or Part 2 of Article 39 of this Chapter as identified by the Department of Administration, Division of Nonpublic Education. The nonpublic school must be deemed eligible by the Division of Nonpublic Education, pursuant to G.S. 115C‑562.4, and the school shall be subject to the requirements of G.S. 115C‑562.5. The parent or guardian shall restrictively endorse the scholarship funds awarded to the eligible student to the school for deposit into the account of the school. The parent or guardian shall not designate any entity or individual associated with the school as the parent's attorney‑in‑fact to endorse the scholarship funds but shall endorse the scholarship funds in person at the site of the school. A parent's or guardian's failure to comply with this section shall result in forfeiture of the scholarship funds. A scholarship forfeited for failure to comply with this section shall be returned to the Authority to be awarded to another student.
b.	Reimbursement for tuition. – The parent or guardian of an eligible student who enrolls in a school that is (i) a North Carolina public school other than the public school to which that student has been assigned as provided in G.S. 115C‑366 or (ii) a nonpublic school that meets the requirements of Part 1 or Part 2 of Article 39 of this Chapter as identified by the Department of Administration, Division of Nonpublic Education, that is deemed eligible by the Division of Nonpublic Education and is not subject to G.S. 115C‑562.5 shall pay the tuition directly to the school. The Authority shall reimburse the parent or guardian no sooner than the mid‑point of each semester. A parent or guardian may receive reimbursement for tuition if the parent or guardian provides documentation that the student was enrolled pursuant to clause (i) or (ii) of this sub‑subdivision. An enrollment of less than 75 days of the semester will be subject to a pro rata reimbursement."
SECTION 2.5.  Article 29 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑235.5.  Advanced courses.
(a)	Students enrolled in the North Carolina School of Science and Mathematics or in high school courses at the North Carolina School of the Arts shall have access to and shall be encouraged to enroll in and successfully complete more rigorous advanced courses to enable success in postsecondary education. For the purposes of this section, an advanced course is an Advanced Placement or International Baccalaureate Diploma Programme course.
(b)	To attain this goal, to the extent funds are made available for this purpose, students shall be exempt from paying any fees for administration of examinations for advanced courses and registration fees for advanced courses in which the student is enrolled regardless of the score the student achieves on an examination.
(c)	If funds are appropriated for advanced courses, the State Board of Education shall reimburse The University of North Carolina for fees for advanced courses for students enrolled in the North Carolina School of Science and Mathematics or in high school courses at the North Carolina School of the Arts as provided in subsection (b) of this section."
SECTION 2.6.  G.S. 116‑69 reads as rewritten:
"§ 116‑69.  Purpose of school program.
The primary purpose of the school shall be the professional training, as distinguished from liberal arts instruction, of talented students in the fields of music, drama, the dance, and allied performing arts, at both the high school and college levels of instruction, with emphasis placed upon performance of the arts, and not upon academic studies of the arts. The said school may also offer high school and college instruction in academic subjects, including advanced courses as provided in G.S. 116‑235.5, and such other programs as are deemed necessary to meet the needs of its students and of the State, consistent with appropriations made and gifts received therefor, and may cooperate, if it chooses, with other schools which provide such courses of instruction. The school, on occasion, may accept elementary grade students of rare talent, and shall arrange for such students, in cooperation with an elementary school, a suitable educational program."
SECTION 3.  This act becomes effective July 1, 2015. Section 2 of this act applies to scholarships awarded for the 2015‑2016 school year and each subsequent school year.