(a) To address the identified areas of fiscal distress of an education service cooperative, the Department of Education shall:

(1)

(A) Conduct an on-site evaluation and make recommendations regarding the staffing and fiscal practices of the education service cooperative.

(B) The recommendations of the department are binding on the education service cooperative;

(2) Every six (6) months during which the education service cooperative is classified as being in fiscal distress, submit to the state board a written evaluation on the fiscal status of the education service cooperative;

(3) Monitor the fiscal operations and accounts of the education service cooperative; and

(4) Require the education service cooperative administrative staff and employees to obtain instruction or training in areas of fiscal concern for the education service cooperative.

(b) The department also may take one (1) or more of the following actions:

(1) Reorganize the administrative unit of the education service cooperative by:

(A)

(i) Removing and replacing the director of the education service cooperative employed under § 6-13-1010.

(ii) An individual appointed to replace the director shall administratively operate the education service cooperative under the supervision and approval of the Commissioner of Education.

(iii) The department may compensate nondepartment agents operating the education service cooperative from the education service cooperative's funding; and

(B) Removing, replacing, or reassigning other administrative staff of the education service cooperative; or

(2) Impose reporting requirements on the education service cooperative.

(c) Within two (2) consecutive school years of the State Board of Education's final classification of fiscal distress, the department shall determine whether to recommend that the education service cooperative be removed from fiscal distress status.