(a) The commissioner may terminate a district’s designation as a district of innovation if the district receives for two consecutive school years:
(1) an unacceptable academic performance rating under Section 39.054;
(2) an unacceptable financial accountability rating under Section 39.082; or
(3) an unacceptable academic performance rating under Section 39.054 for one of the school years and an unacceptable financial accountability rating under Section 39.082 for the other school year.
(b) Instead of terminating a district’s designation as authorized by Subsection (a), the commissioner may permit the district to amend the district’s local innovation plan to address concerns specified by the commissioner.

(b-1) The commissioner may terminate a district’s designation as a district of innovation if the district fails to comply with the duty to discharge or refuse to hire certain employees or applicants for employment under Section 12.1059, applicable to the district under Section 12A.004(a)(1), or Section 22.085 or 22.092.
(c) The commissioner shall terminate a district’s designation as a district of innovation if the district receives for three consecutive school years:
(1) an unacceptable academic performance rating under Section 39.054;
(2) an unacceptable financial accountability rating under Section 39.082; or
(3) any combination of one or more unacceptable ratings under Subdivision (1) and one or more unacceptable ratings under Subdivision (2).
(d) A decision by the commissioner under this section is final and may not be appealed.