(1) Subject to subsection (2), to receive funding under section 22b, a district or public school academy that is assigned by the superintendent of public instruction as a partnership district must have a signed 3-year partnership district agreement with the department that includes all of the following:

    (a) Measurable benchmarks that the district or public school academy will achieve for each school operated by the district or public school academy that is subject to the partnership district agreement after 18 months and after 36 months from the date the agreement was originally signed. Measurable benchmarks under this subdivision must include all of the following:

    (i) Pupils on track to meet or exceed grade level proficiency, with consideration for district or public school academy needs identified as required under section 21h.

    (ii) Either of the following, as applicable:

    (A) At least 1 proficiency or growth benchmark based on state assessments described in section 104b or 104c.

    (B) At least 1 proficiency or growth benchmark based on a benchmark assessment described in section 104h.

    (iii) Improved high school graduation rates, as applicable.

    (iv) Attendance rates.

    (b) Accountability measures to be imposed if the district or public school academy does not achieve the measurable benchmarks described in subdivision (a) or section 21h(2)(b) for each school operated by the district or public school academy that is subject to the partnership district agreement. For a district assigned as a partnership district as described in this subsection, accountability measures under this subdivision must include the reconstitution of the school. For a public school academy assigned as a partnership district as described in this subsection, accountability measures under this subdivision may include the reconstitution of the school.

    (c) For a public school academy assigned as a partnership district as described in this subsection, a requirement that, if reconstitution is imposed on a school that is operated by the public school academy and that is subject to the partnership district agreement, the school must be reconstituted as described in section 507, 528, or 561, as applicable, of the revised school code, MCL 380.507, 380.528, and 380.561.

    (d) For a district assigned as a partnership district as described in this subsection, a provision that, if reconstitution is imposed on a school that is operated by the district and that is subject to the partnership district agreement, reconstitution may require closure of the school building, but, if the school building remains open, reconstitution must include, but is not limited to, all of the following:

    (i) The district shall make significant changes to the instructional and noninstructional programming of the school based on the needs identified through a comprehensive review of data in compliance with section 21h.

    (ii) The district shall review whether the current principal of the school should remain as principal or be replaced.

    (iii) The reconstitution plan for the school must require the adoption of goals similar to the measurable benchmarks included in the partnership district agreement, with a limit of 3 years to achieve the goals. If the goals are not achieved within 3 years, the superintendent of public instruction shall impose a second reconstitution plan.

    (2) If a district or public school academy is assigned as a partnership district as described in subsection (1) during the current fiscal year, it shall ensure that it has a signed partnership district agreement as described in subsection (1) in place by not later than 90 days after the date that it is assigned as a partnership district. If a district or public school academy described in this subsection does not comply with this subsection, the department shall withhold funding under section 22b for that district or public school academy until the district or public school academy has a signed partnership district agreement as described in subsection (1) in place.