(a) A school transformation contract that is entered into under this part shall:

1. (1)

   1. (A) Provide that any student residing in the public school zone as it existed before the operation of the public school zone under the contract shall be admitted for enrollment at the public school transformation campus.
   2. (B) For purposes of this part, “any student” includes:

(c) (c) Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.;

1. (ii) An eligible student under the National School Lunch Program;

   1. (iii) A student identified as homeless under the McKinney-Vento Homeless Assistance Act, 42 U.S.C. § 11431 et seq.; or

      1. (iv) A public school student with protections under any other Arkansas or federal law;

2. (2) Establish the following enrollment preference order for students who do not reside in the public school zone:

   1. (A) Other students who reside in the public school district in which the public school transformation campus is located; and
   2. (B) Students who reside outside the public school district in which the public school transformation campus is located;

3. (3) Ensure comprehensive management of the transformation campus by the transformation campus operator, including:

   1. (A) Administrative operation and management of the transformation campus;
   2. (B) Student and school accountability;
   3. (C) School safety;
   4. (D) Maintenance of facilities;
   5. (E) Safe, effective, and efficient transportation;
   6. (F) Food service programs;
   7. (G) Special education and related services;
   8. (H) Extracurricular activities, programs, and services;
   9. (I) Fiscal management and accountability services;
   10. (J) Professional development programs and services;
   11. (K) Curriculum development and support;
   12. (L) Academic assessment and support services;
   13. (M) Parent and student engagement programs and support;
   14. (N) Student counseling support programs and services;
   15. (O) Career and technical educational programs;
   16. (P) Gifted and talented and other enrichment programs; and

   17. (Q) Other services and programs necessary to comply with:

       1. (i) The Rules Governing Standards for Accreditation of Arkansas Public Schools and School Districts, 6 CAR pt. 61;
       2. (ii) Arkansas law; and
       3. (iii) Division of Elementary and Secondary Education rules;

4. (4) Make clear that the:

   1. (A) Transformation campus operator acts as the executive of the transformation campus; and
   2. (B) Public school district board of directors retains its powers and responsibilities with respect to oversight and governance of the transformation campus;

5. (5)

   1. (A) Identify annual goals, milestones, and performance targets that the transformation campus operator intends to achieve that will enable the transformation campus to return to management as a traditional public school or school district.

   2. (B) Goals, milestones, and performance targets shall reflect without limitation:

      1. (i) Improved academic outcomes for students;
      2. (ii) Student academic growth and performance as measured by state assessments; and
      3. (iii) Increased fiscal sustainability.
   3. (C) The specific objectives under subdivision (a)(6) of this section may be amended in the contract by agreement of the parties;
6. (6) Include a provision by which a public school district or the State Board of Education may terminate the school transformation contract early if the goals identified in the school transformation contract are not met;
7. (7) Include a provision by which a public school district and transformation campus operator can terminate the school transformation contract if the continued performance under the contract would lead to less desirable outcomes for students than the public school or public school district’s previous performance prior to the transformation contract; and

8. (8) Include clear recordkeeping requirements for:

   1. (A) Budgeting;
   2. (B) Invoicing; and
   3. (C) Expenditure and expense management.

(b)

1. (1) This part does not prohibit a contract between a transformation campus operator and another entity for the provision of services for a transformation campus.

2. (2)

   1. (A) However, a contract between a transformation campus operator and another entity for the provision of services for a transformation campus shall be for the benefit of the public school or public school district for which the transformation campus operator is operating the transformation campus.

   2. (B) Any financial benefit resulting from a contract between a transformation campus operator and another entity for the provision of services for a transformation campus shall be passed on to the public school district for which the transformation campus operator is operating the transformation campus.

      1. (c)
3. (1) A transformation campus operator shall provide quarterly reports to the division for the initial two (2) years of the transformation contract, during which the school is receiving an alternate letter grade under 6 CAR § 243-105(b).

4. (2) Reports under subdivision (c)(1) of this section shall include information sufficient to enable the division to monitor the academic performance and educational efficiency of the transformation campus, including without limitation:

   1. (A) Enrollment data;
   2. (B) Academic growth;
   3. (C) Disciplinary incidents and actions; and
   4. (D) Attendance rate.

5. (3) The division may require:

   1. (A) Any party to the transformation contract to provide any additional information the division determines is necessary to evaluate performance; and

   2. (B) Quarterly reports beyond the initial two-year period.

      1. (d)
6. (1) A transformation contract for a school within a school district under state authority shall not extend beyond the time the district is under state authority.
7. (2) The division shall annually review the quarterly reports submitted by the school and any additional information requested by the division to determine whether progress has been made during the transformation period.

8. (3) If the division determines that sufficient growth has not been made, the Commissioner of Elementary and Secondary Education shall:

   1. (A) Request that the state board terminate the transformation contract immediately; and
   2. (B) Consider other options available to the state board for a school district under state authority.

(f)

1. (1) A transformation campus operator is not prohibited from fundraising in its own name in accordance with Arkansas and federal law.
2. (2) However, any and all grants, donations, or funds received by the transformation campus operator for the benefit of the public school district for which the transformation campus operator is operating the transformation campus shall be the public school district’s property and used in accordance with the purpose for which the grants, donations, or funds were given, subject to Arkansas and federal law.

(g)

1. (1) All facilities, buildings, and land that belonged to the public school district prior to the execution of a school transformation contract shall remain the property of the public school district.
2. (2) The parties may contract for use of the public school district’s facilities, buildings, and land, subject to the requirements of Arkansas and federal law.

(h) All facilities, buildings, and land that belonged to the transformation campus operator prior to the execution of a school transformation contract shall remain the property of the transformation campus operator.

1. (i)
2. (1) A transformation campus under this part is a public school and subject to all requirements for public schools under Department of Education rules and Arkansas law.

3. (2)

   1. (A) A transformation campus under this part shall keep all waivers that were granted by the charter authorizer to the transformation campus operator, or waivers that were granted by the state board to the public school district, at the time of execution of the school transformation contract.
   2. (B) However, a transformation campus operator may apply for additional waivers in accordance with the division’s Rules Governing Act 1240 Waivers, 6 CAR pt. 230.