(1) There is created in the department the school transformation grant program to provide funding to:

(a) Assist in the design of turnaround leadership development programs and to provide funding to support training and development of school turnaround leaders for the public schools in the state;

(b) Support school districts, the institute, and charter schools in providing educator professional development and transforming instruction in public schools that are required to adopt priority improvement or turnaround plans for the immediate or preceding school year; and

(c) Assist school districts, the institute, and charter schools that are implementing priority improvement or turnaround plans in planning for and implementing one or more of the following rigorous school redesign strategies:

(I) Converting a district public school to a charter school if it is not already authorized as a charter school;

(II) Granting innovation school status to a district public school pursuant to section 22-32.5-104;

(III) With regard to a district or institute charter school, replacing the school's operator or governing board;

(IV) Contracting with a public or private entity other than the school district to partially or wholly manage a district public school, which entity is accepted by the department and the local school board as using research-based strategies and having a proven record of success working with schools under similar circumstances; or

(V) Closing a public school or revoking the charter for a district or institute charter school.

(2) The state board, in accordance with the "State Administrative Procedure Act", article 4 of title 24, shall promulgate rules to implement and administer the program. At a minimum, the rules must include:

(a) Criteria for identifying approved providers from among those that respond to the request for proposals pursuant to section 22-13-104. At a minimum, the criteria must:

(I) Consider each provider's experience in developing successful, effective leadership in low-performing schools and school districts;

(II) Consider the leadership qualities that each provider's turnaround leadership development program is expected to develop; and

(III) Ensure the availability of turnaround leadership development programs for school turnaround leaders in public schools throughout the state.

(b) and (c) Repealed.

(d) Timelines for the school transformation grant application and approval process;

(e) The requirements for a school transformation grant application, including but not limited to the goals that the applicant expects to achieve through the grant; and

(f) Criteria for selecting school transformation grant recipients. At a minimum, the criteria must take into account for applying school districts the concentration of schools of the school district, or for the institute the concentration of institute charter schools, that must implement priority improvement or turnaround plans. For applying charter schools, the criteria must prioritize schools that are implementing priority improvement or turnaround plans.