(a) (1) In this section the following words have the meanings indicated. (2) "Eligible school" means a public school identified for restructuring under the accountability regulations of the State Board. (3) "Employer school system" means the local school system where an applicant to the Program is employed at the time of selection as a fellow. (4) "Fellow" means an individual selected to participate in the Program. (5) "Program" means the Principal Fellowship and Leadership Development Program. (6) "Receiving school" means a public school where a fellow is placed. (7) "Receiving school system" means the local school system in which the public school where a fellow is placed is located. (b) There is a statewide elementary and secondary education Principal Fellowship and Leadership Development Program in the Department. (c) (1) The Department shall develop criteria for the selection of: (i) Fellows; and (ii) Receiving schools. (2) Subject to the approval of the State Board, the State Superintendent may require a school system in corrective action to participate in the Program. (3) A principal in a local school system in the State may not participate in the Program in an eligible school within the same local school system. (4) (i) A county superintendent may nominate a principal or assistant principal from within the local school system to participate in the Program in an eligible school within a different local school system. (ii) A county superintendent may not nominate a principal or assistant principal from within the local school system to participate in the Program in an eligible school within the local school system. (5) The placement of a fellow in an eligible school satisfies the alternative governance requirement of the accountability regulations of the State Board. (d) (1) A fellow shall receive an annual compensation that consists of: (i) A salary at the level and step the fellow would have received according to the salary scale of the employer school system; and (ii) A $20,000 annual stipend. (2) For each year of the fellow's placement in a receiving school, the Department shall issue a grant to the receiving school system in an amount that covers: (i) The annual stipend; and (ii) If the fellow's salary at the level and step on the salary scale of the receiving school system as of July 1 is less than that of the level and step on the salary scale of the employer school system, the amount of the difference. (3) The receiving school system shall reimburse the employer school system for: (i) The salary of the fellow; (ii) The annual stipend; and (iii) The fringe benefit costs associated with the fellow's annual salary including the stipend. (e) (1) Each year the State Superintendent shall select from a list of qualified applicants a maximum of 10 fellows and place them in public schools identified for restructuring in accordance with the selection criteria. (2) Each fellow shall make a commitment to serve for 3 years if selected. (f) (1) Subject to the approval of both the State Superintendent and the county superintendent, the fellow may select, from among qualified employees of the receiving school system, the assistant principals in the receiving school where the fellow is placed. (2) In order to address orderly succession in school leadership, the fellow shall, subject to the approval of both the State Superintendent and the county superintendent of the receiving school system, select a qualified employee of the receiving school system, on or before the start of the third year of the fellow's placement, to serve as the assistant principal in the receiving school who will assume leadership of the school after the fellow's departure. (3) Provided that the assistant principal selected under paragraph (2) of this subsection has demonstrated satisfactory performance, the assistant principal shall become the principal of the school after the departure of the fellow. (g) The Department shall act as a fiscal agent for State funds appropriated under this section.
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