(a)

(1) The state board of education, in consultation with the commissioner of education, shall establish appropriate performance goals and measures for schools and local education agencies (LEAs). The performance goals and measures shall include, at a minimum, student achievement, student growth, and other appropriate indicators of performance.

(2) Each year, the department of education shall recommend and the state board shall approve performance designations for LEAs based on the established performance goals and measures. If an LEA receives the highest performance determination in the accountability model as approved by the state board, it shall:

(A) Be identified by the department on a public list of LEAs earning the highest accountability determination; and

(B) When permissible by law, rule or regulation, be granted increased latitude in funding flexibility by the department.

(3) If an LEA receives the lowest performance determination in the accountability model as approved by the state board, the LEA shall be subject to the following:

(A) Placement on a public list of LEAs earning the lowest accountability determination; and

(B) Creation of an aggressive plan for corrective action that includes a detailed analysis of its student achievement results, and submission of such plan to the commissioner for approval.

(4) Notwithstanding any provision of this part to the contrary, student performance and student growth data from the TNReady assessments administered in the 2017-2018 school year shall not be used to identify a school as a priority school or to assign a school to the achievement school district.

(b)

(1) By September 1, 2012, and at a minimum every three (3) years thereafter, based on an evaluation of all schools' performance data, the commissioner of education shall recommend for approval to the state board a listing of all schools to be placed in priority, focus or reward status pursuant to the rules, regulations and performance standards of the state board. Once approved by the state board, priority, focus and reward schools shall be publicly identified by the commissioner.

(2) Schools identified as priority schools shall include the bottom five percent (5%) of schools in performance, all public high schools failing to graduate one-third (⅓) or more of their students, and schools with chronically low-performing subgroups that have not improved after receiving additional targeted support, pursuant to applicable laws, rules, and regulations. Priority schools shall be subject to one (1) of the following interventions as determined by the commissioner:

(A) Turnaround through an LEA-led intervention or other school improvement process, subject to approval by the commissioner;

(B) School turnaround under the governance of an LEA innovation zone pursuant to subsection (c); or

(C) Placement in the achievement school district as defined in § 49-1-614; provided, however, that no school identified as a priority school shall be placed in the achievement school district if, after the school is identified as a priority school, but before the commissioner determines that the school should be assigned to the achievement school district, the school demonstrates student achievement growth at a level of “above expectations” or greater, as represented by the Tennessee Value-Added Assessment System (TVAAS) developed pursuant to this part.

(3) By October 1 of the year prior to the public identification of priority schools pursuant to subdivision (b)(1), the commissioner shall notify any school and its respective LEA if the school is among the bottom ten percent (10%) of schools in overall achievement as determined by the performance standards and other criteria set by the state board.

(4) An LEA with a school or schools identified as focus schools shall submit a plan to the commissioner, subject to the commissioner's approval, outlining how the LEA shall address the factors leading the school or schools to be placed in focus status.

(5) Reward schools shall be recognized by the department for outstanding achievement or progress and provided opportunities to serve as strategic partners with the department to raise student achievement levels throughout the state by analyzing and sharing best practices.

(6) Upon receiving notice that a school has been identified as a priority school, the LEA or authorizing entity shall, for each school identified, develop and implement a comprehensive support and improvement plan for the school to improve student outcomes. The comprehensive support and improvement plan shall at a minimum:

(A) Be based on a school-level needs assessment;

(B) Include evidence-based interventions;

(C) Include a plan for notifying the parents of each student enrolled in the school of its priority status and a plan for stakeholder engagement;

(D) Include a review of LEA and school-level resources;

(E) Be developed by the school and LEA and approved by the commissioner; and

(F) Be monitored and evaluated annually by the department.

(c) An LEA may develop a plan for the creation of an LEA innovation zone for the purpose of monitoring, overseeing and improving schools within the LEA that are designated as priority schools pursuant to subsection (b) and approved for inclusion in the innovation zone by the commissioner. Upon approval of such plan by the commissioner, an LEA innovation zone may be established. Notwithstanding any other provision to the contrary, an LEA creating an LEA innovation zone shall:

(1) Establish an innovation zone office; appoint a leader for such office; and provide such leader with sufficient management authority to appoint and dismiss staff for the office as well as appoint a leader for each school placed in the innovation zone; and

(2) Allow schools under the governance of the innovation zone office to have maximum autonomy over financial, programmatic and staffing decisions.

(d) The department of education, when publishing the list of priority schools, shall:

(1) List all schools in the state in order by success rate from the highest to the lowest; and

(2) List all schools in each county and each LEA in order by success rate from the highest to the lowest.