(A) The department shall notify the sponsor within a reasonable time under the circumstances that it intends to seek a finding by the state board of education that the sponsor is non-compliant pursuant to the criteria in section 3314.015 of the Revised Code, other criteria for sponsorship contained in Chapter 3314. of the Revised Code, the sponsorship agreement, or criteria in the Administrative Code. The notice shall give the sponsor ten business days to submit a corrective action plan to the department. The department shall determine whether the corrective action plan demonstrates a satisfactory remedy for the deficiencies. If the corrective action plan is not satisfactory, the department may elect to seek a finding of non-compliance from the state board of education.

(B) Notwithstanding paragraph (A) of this rule, the state board may make a finding any time the state board finds that a sponsor is not in compliance with, or is no longer willing to comply with, any of the following:

(1) Any section of the Revised Code or any rule of the Administrative Code that is applicable to sponsors or community schools;

(2) The sponsorship agreement to which it is a party; or

(3) Any community school contract to which it is a party.

(C) The state board shall notify the sponsor and all of the community schools that it sponsors within ten business days of its finding. If the state board of education makes a finding pursuant to paragraph (B) of this rule, it shall notify the sponsor of its decision in accordance with Chapter 119. of the Revised Code.

(D) If the request for a hearing is received within ten business days, the state board or its designee shall conduct a hearing on that matter in accordance with Chapter 119. of the Revised Code.

(E) Upon conclusion of the hearing, if conducted by the state board, or upon consideration of a designated hearing officer's report and recommendation, the state board may confirm, modify, or reverse its finding. If the finding is confirmed, the department may revoke the sponsor's authority to sponsor community schools. If the department decides to revoke the sponsor's authority, it shall issue a notice to the sponsor of its right to appeal in accordance with Chapter 119. of the Revised Code.

(F) In accordance with section 3314.015 of the Revised Code, the department may assume the sponsorship of any community school(s) with which the sponsor has contracted until the earlier of the expiration of two school years or until a new sponsor as described in division (C)(1) of section 3314.02 of the Revised Code is secured by the community school's governing authority.

(G) The resolution of the state board confirming the revocation of the sponsor's authority to sponsor community schools may be appealed by the sponsor in accordance with section 119.12 of the Revised Code. The department's decision to revoke a sponsor's authority to sponsor community schools may be appealed by the sponsor in accordance with section 119.12 of the Revised Code. In the event the department or the office of school sponsorship or its successor assumes the sponsorship of any community school(s) with which the sponsor holds current community school contracts, the department will have the authority, rights and responsibilities of a sponsor pursuant to Chapter 3314. of the Revised Code including, but not limited to, providing monitoring and technical assistance and, as needed, the authority to place said community school(s) on probation, suspend, or terminate a contract pursuant to Chapter 3314. of the Revised Code.