(1) Pursuant to the "State Administrative Procedure Act", article 4 of title 24, C.R.S., the facility schools board shall promulgate rules for the creation and maintenance as provided in this section of a list of facility schools that are approved to receive reimbursement for providing educational services to students placed in the facility. In addition to the rules specified in this section, the facility schools board shall adopt such additional rules as may be necessary for the implementation of the list pursuant to this section.

(2) (a) The facility schools board by rule shall specify:

(I) The procedures by which a facility school may apply to the unit for placement on the list of approved facility schools;

(II) The information that each facility school shall provide in the application;

(III) The reporting requirements for approved facility schools; and

(IV) The criteria that a facility school shall meet to be placed on the list of approved facility schools.

(b) The unit shall review the applications received pursuant to paragraph (a) of this subsection (2) and shall place on the list of approved facility schools those applicants that meet the criteria specified by rule of the facility schools board. The unit shall notify each applicant regarding placement on the list of approved facility schools. If the unit denies an applicant placement on the list, the unit shall explain the basis for the denial. An applicant that is denied may reapply for placement on the list following correction of the cause for denial.

(3) An approved facility school shall comply with the following requirements in order to remain on the list of approved facility schools:

(a) Adopt and implement the curriculum and graduation requirements specified by the facility schools board pursuant to section 22-2-406 (1)(a) and (3);

(b) Demonstrate compliance with the accountability measures adopted by the facility schools board pursuant to section 22-2-406 (1)(b);

(c) Comply with the reporting and records tracking requirements specified by the unit pursuant to section 22-2-405 (1)(d) and (2); and

(d) Comply with any other requirements specified by rule of the facility schools board.

(4) The unit shall periodically, as provided by rule of the facility schools board, review each approved facility school to determine whether the approved facility school is in compliance with the requirements specified in subsection (3) of this section. If the unit determines that an approved facility school is out of compliance, the unit shall give the approved facility school notice of the lack of compliance. If the approved facility school does not come into compliance within thirty days after receiving the notice, the unit shall remove the facility school from the list of approved facility schools. A facility school that is removed from the list of approved facility schools may reapply for placement on the list as provided in subsection (2) of this section.