(a) Each education service cooperative shall be evaluated during the 2012-2013 school year, and at least once within each five-year period, on a schedule established by the Commissioner of Education, all active education service cooperatives must be visited by an evaluation committee of not more than nine (9) persons.

(b) (1) (A) Each evaluation shall include, but not be limited to, an investigation of user satisfaction, service adequacy, extent of local financial support, staff qualifications, and performance and administration effectiveness.

(B) The final evaluation, including any self-evaluation, shall be included in the annual report to the Department of Education, § 6-13-1020, and made available on the website of the education service cooperative.

(2)

(A) The evaluation criteria shall be developed collaboratively between the department and the director of each education service cooperative.

(B) The evaluation criteria shall be fully implemented by September 1, 2012.

(c)

(1) The report of this committee shall be filed with the education service cooperative visited, with its constituent school districts, and with the State Board of Education.

(2) The state board shall acknowledge receipt of the report and comment on any deficiencies identified in the report that should be corrected for the education service cooperative to remain eligible for base funding.

(3) The report shall identify each education service cooperative as being in one (1) of the following category levels, based on the evaluation:

(A) "Level 5", education service cooperative of excellence;

(B) "Level 4", education service cooperative exceeding standards;

(C) "Level 3", education service cooperative meeting standards;

(D) "Level 2", education service cooperative on alert; or

(E) "Level 1", education service cooperative in need of immediate improvement.

(d)

(1) The intent of this evaluation procedure is to provide a means for school districts to express their concerns about the operation of their education service cooperative and to ensure that each education service cooperative remains alert and responsive to the needs of the local schools it serves.

(2) An education service cooperative that receives a performance category level of level 1 shall be reevaluated during the evaluation cycle the following year.

(3) For all education service cooperatives that receive a performance category level of level 1 for two (2) consecutive years, the department shall:

(A) Withhold base funding to the education service cooperative; or

(B) Take over administration of the education service cooperative.

(e) The department shall promulgate rules necessary for implementing this section.

(f)

(1) For each evaluation, the commissioner shall appoint the committee and designate its chairperson.

(2) The committee shall include the following from outside the boundary of the education service cooperative being evaluated:

(A) A Department of Education staff member;

(B) A teacher;

(C) An administrator;

(D) A college staff member; and

(E) A present or former staff member of an area education service agency.

(3) In addition, the committee shall include from within the education service cooperative's area:

(A) A member of the school district board of directors;

(B) A representative of business and industry; and

(C) A school parent from each of two (2) school districts.

(4) Each education service cooperative shall pay the reasonable costs of its evaluation.