(a) Definition. “Restructuring” means a major reorganization of a school's governance arrangement by an LEA that—
(1) Makes fundamental reforms to improve student academic achievement in the school;
(2) Has substantial promise of enabling the school to make AYP as defined under §§ 200.13 through 200.20;
(3) Is consistent with State law;
(4) Is significantly more rigorous and comprehensive than the corrective action that the LEA implemented in the school under § 200.42, unless the school has begun to implement one of the options in paragraph (b)(3) of this section as a corrective action; and
(5) Addresses the reasons why the school was identified for restructuring in order to enable the school to exit restructuring as soon as possible.
(b) Requirements. If the LEA identifies a school for restructuring in accordance with § 200.34, the LEA must do the following:
(1) Continue to provide all students enrolled in the school with the option to transfer to another public school in accordance with § 200.44.
(2) Make available supplemental educational services in accordance with § 200.45.
(3) Prepare a plan to carry out one of the following alternative governance arrangements:
(i) Reopen the school as a public charter school.
(ii) Replace all or most of the school staff (which may include, but may not be limited to, replacing the principal) who are relevant to the school's failure to make AYP.
(iii) Enter into a contract with an entity, such as a private management company, with a demonstrated record of effectiveness, to operate the school as a public school.
(iv) Turn the operation of the school over to the SEA, if permitted under State law and agreed to by the State.
(v) Any other major restructuring of a school's governance arrangement that makes fundamental reforms, such as significant changes in the school's staffing and governance, in order to improve student academic achievement in the school and that has substantial promise of enabling the school to make AYP. The major restructuring of a school's governance may include replacing the principal so long as this change is part of a broader reform effort.
(4) Provide to parents and teachers—
(i) Prompt notice that the LEA has identified the school for restructuring; and
(ii) An opportunity for parents and teachers to—
(A) Comment before the LEA takes any action under a restructuring plan; and
(B) Participate in the development of any restructuring plan.