1.  If the Department designates a school as a turnaround school pursuant to this section:

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(a) The board of trustees of the school district in which the school is located may review the performance of the principal at the school to determine whether to retain or replace the principal. If the board of trustees decides to replace the principal, the board of trustees must:

(1) Immediately commence the process of selecting a new principal for the school to make a selection with the approval of the Department so that the new principal may begin before the start of the next school year; and

(2) Reassign the replaced principal to another public school within the school district.

(b) The principal of the school may:

(1) Review the performance of each employee of the school to determine whether to retain the employee based on the needs of the school. The board of trustees of the school district in which the school is located shall reassign any employee who is not retained pursuant to this subparagraph to another public school within the school district; and

(2) Make all determinations for the school concerning hiring and the school’s curriculum, schedule and instructional design.

(c) The board of trustees of the school district in which the school is located shall create financial and other incentives to be offered to teachers, administrators and paraprofessionals who work in classrooms or provide tutoring to pupils at the school that are intended to motivate such persons to apply for positions with the school and continue employment with the school. Such incentives may include, without limitation:

(1) Salary increases and bonuses;

(2) Flexible schedules that allow teachers to pursue other assignments or education;

(3) Opportunities to receive training and to participate in programs for professional development; and

(4) Opportunities for promotion and career development.

2.  If a teacher of a school is reassigned to another public school within the school district pursuant to subparagraph (1) of paragraph (b) of subsection 1, the board of trustees of the school district shall ensure that the teacher receives assistance to help the teacher meet the standards for effective teaching, which may include, without limitation, peer assistance and review, participation in programs of professional development and other appropriate training.

3.  If a determination made by the principal of a school pursuant to paragraph (b) of subsection 1 will:

(a) Increase the cost of operating the school, the principal must seek to obtain any available grant from the Department and request any necessary additional amount of money from the board of trustees of the school district.

(b) Decrease the cost of operating the school, the board of trustees of the school district must not reduce the amount of money allocated to the school as a result of the savings.

4.  The State Board shall, in consultation with the board of trustees of each school district, establish, by regulation, the criteria for designating an underperforming school as a turnaround school for the purposes of this section. Such criteria must use current data from multiple sources.