(a) The authorizer may approve or deny an application based on:

1. (1) Criteria provided by law;
2. (2) Criteria provided by rule adopted by the authorizer under 6 CAR § 31-401(c);

3. (3) Findings of the authorizer relating to:

   1. (A) Improving student performance; and
   2. (B) Encouraging innovative programs; and
4. (4) Written findings or statements received by the authorizer from any public school district likely to be affected by the open-enrollment public charter school.

(b) The authorizer shall give preference in approving an application for an open-enrollment public charter school to be located in any public school district:

1. (1) When the percentage of students who qualify for free or reduced-price lunches is above the average for the state;
2. (2) When the district has been classified by the State Board of Education as in need of Level 5 — Intensive support under the Arkansas Educational Support and Accountability Act, Arkansas Code § 6-15-2901 et seq.; or
3. (3) When the district has been classified by the Division of Elementary and Secondary Education as in some phase of fiscal distress under the Arkansas Fiscal Assessment and Accountability Program, Arkansas Code § 6-20-1901 et seq., if the fiscal distress status is a result of administrative fiscal mismanagement, as determined by the state board.

(c)

1. (1) The division, state board, or a combination of the division and the state board may grant no more than a total of twenty-four (24) charters for open-enrollment public charter schools except as provided under subdivision (c)(2) of this section.
2. (2) If the cap on the number of charters available for open-enrollment public charter schools is within two (2) charters of meeting any existing limitation or cap on available open-enrollment charters, the number of available charters shall automatically increase by five (5) slots more than the most recent existing limitation or cap on open-enrollment charters.

3. (3) By March 1 each year, the division shall issue a commissioner’s memo stating the:

   1. (A) Existing limitation on the number of charters available for open-enrollment public charter schools; and
   2. (B) Number of charters available for open-enrollment public charter schools during the next application cycle.