Sec. 17. (a) The DUAB shall place the school corporation on a watch list if:
(1) the DUAB determines that the school corporation is not in compliance with the school corporation's corrective action plan;
(2) the DUAB notifies the superintendent and governing body of the school corporation that:
(A) the school corporation is not in compliance with the school corporation's corrective action plan; and
(B) the school corporation must achieve compliance with the school corporation's corrective action plan within a period specified by the DUAB; and
(3) the DUAB determines that the school corporation has not achieved compliance with the school corporation's corrective action plan within the period specified in subdivision (2).
(b) The DUAB shall place a school corporation on the watch list if required by section 12(c) of this chapter.
(c) If the DUAB places a school corporation on the watch list under this section, the DUAB shall notify:
(1) the superintendent and governing body of the school corporation; and
(2) the budget director.
(d) The state budget committee shall review the school corporation's placement on the watch list.