005.28.24 Ark. Code R. 041

Current through Register Vol. 49, No. 12, December, 2024
Rule 005.28.24-041 - DESE Rule Governing Consolidation and Annexation of School Districts
CHAPTER 1:AUTHORITY AND DEFINITIONS
1.00PURPOSE
1.01 The purpose of these rules is to establish the requirements and procedures concerning the consolidation and annexation of school districts; the administrative consolidation and annexation of school districts; the distribution of consolidation/annexation incentive funding; and petitions to the State Board of Education for a change in a district boundary.
2.00AUTHORITY
2.01 The State Board of Education (State Board) enacts these rules pursuant to the authority granted by Ark. Code Ann. §§ 6-13-1401 et seq. and 6-131601 et seq.
3.00DEFINITIONS
3.01 "Administrative annexation" means the joining of an affected school district or a part of the school district in which the affected district as a whole has fewer than three hundred fifty (350) students with one or more receiving school districts through a voluntary process set out in Ark. Code Ann. § 6-13-1601 et seq.;
3.02 "Administrative consolidation" means the joining of two (2) or more school districts, one of which has fewer than three hundred fifty (350) students, to create a new single school district with one (1) administrative unit and one (1) board of directors that is not required to close school facilities through a voluntary process set out in Ark. Code Ann. §6-131601 et seq;
3.03 "Affected district" means a school district that:
3.03.1 Loses territory or students as a result of annexation or administrative annexation; or
3.03.2 Is involved in a consolidation or administrative consolidation.
3.04 "Aggrieved district" means the lawfully constituted and existing board of directors of a school district that gains or loses territory or students as a result of an annexation, administrative annexation, consolidation, or administrative consolidation;
3.05 "Annexation" means the joining of an affected school district or part thereof with a receiving district;
3.06 "Average daily membership (ADM)" has the same meaning as defined by the Arkansas General Assembly in Ark. Code Ann. § 6-20-2303.
3.07 "Boundary change" means the process by which the territory of two or more adjoining school districts is modified based on the petition of a single school district to the State Board of Education seeking modification to its geographic territory under Ark. Code Ann. § 6-13-1414.
3.08 "Consolidation" means the joining of two (2) or more affected school districts or parts thereof to create a new single school district;
3.09 "Debt" means a legal liability, encumbrance or contract, including employment contracts, to be paid out of future revenues or current reserves of the school district.
3.10 "Receiving district" means a school district or districts that receive territory or students, or both, from an affected district as a result of annexation or administrative annexation;
3.11 "Resulting district" means the new school district created from affected districts as a result of consolidation or administrative consolidation.
3.12 "School district with fewer than three hundred fifty (350) students" means a school district with an average daily membership of fewer than three hundred fifty (350) students in the school year immediately preceding the current school year.
3.13 "Voluntary transfer" means a student has transferred to a district other than the student's resident district through a school choice transfer under Arkansas Code §§ 6-18-1901 et seq. or § 6-18-227, or a student transfer under Arkansas Code § 6-18-316.
4.00CONSOLIDATION AND ANNEXATION AUTHORITY OF THE STATE BOARD
4.01 There shall not be any consolidation or annexation of any public school district with any other school district in the state without the prior consent and approval of the State Board.
CHAPTER 2:CONSOLIDATION AND ANNEXATION OF SCHOOL DISTRICTS
5.00CONDITIONS UNDER WHICH THE STATE BOARD OF EDUCATION MAY ANNEX SCHOOL DISTRICTS
5.01 The State Board shall consider the annexation of an affected school district or districts to a receiving district or districts under any of the following conditions:
5.01.1 The State Board, after providing thirty (30) days' written notice to the affected school districts, determines that annexation is in the best interest of the affected district or districts and the receiving district based upon failure to meet standards for accreditation, failure to meet fiscal distress requirements, or failure to meet the requirements to exit Level 5 -- Intensive support pursuant to The Quality Education Act of 2003, Ark. Code Ann. § 6-15-201 et seq., the Arkansas Educational Support and Accountability Act, Ark. Code Ann. § 6-15-2901 et seq., the Arkansas Fiscal Assessment and Accountability Program, Ark. Code Ann. § 6-20-1901 et seq., and the Arkansas Public School Academic Facilities Program Act, Ark. Code Ann. § 6-21-801 et seq.;
5.01.2 The affected district or districts file a petition with the State Board requesting annexation to a particular receiving district or districts, and a copy of the petition is filed with the county clerk's office of each county where the affected district or districts are located;
5.01.2.1 The county clerk's office of each county where the affected district or districts are located certifies in writing that the petition has been signed by a majority of the qualified electors of the affected district or districts; and
5.01.2.2 The receiving district or districts provide to the State Board written proof of consent to receive the affected district or districts by annexation as evidenced by either a vote to approve annexation by resolution by a majority of the members of the local receiving board of education or by a vote to approve annexation by a majority of the qualified electors of the receiving district as provided for in Ark. Code Ann. § 6-14-122;
5.01.3 A majority of the qualified electors in the affected district or districts vote to approve the annexation of an affected school district or districts to a receiving district or districts as provided for in Ark. Code Ann. § 6-14-122; and
5.01.3.1 The receiving district or districts provide to the State Board written proof of consent to receive the affected district or districts by annexation as evidenced by either a vote to approve annexation by resolution by a majority of the members of the local receiving board of education or by a vote to approve annexation by a majority of the qualified electors of the receiving district as provided in Ark. Code Ann. § 6-14-122; or
5.01.4 The local board of education of the affected district or districts votes to approve by resolution the annexation of the affected district or districts to a receiving district or districts by a majority of the members of the local board of education of the affected district or districts; and
5.01.4.1 The receiving district or districts provide to the State Board written proof of consent to receive the affected district or districts by annexation as evidenced by either a vote to approve annexation by resolution by a majority of the members of the local receiving board of education or by a vote to approve annexation by a majority of the qualified electors of the receiving districts as provided for in Ark. Code Ann. § 6-14-122.
5.02 The State Board may vote to approve, by a majority of a quorum present of the members of the State Board, the annexation of the affected districts into a receiving district:
5.02.1 The State Board, after providing thirty (30) days written notice to the affected districts, may on its own motion based on a school district's failure to meet standards for accreditation, failure to meet fiscal distress requirements, or failure to meet the requirements to exit Level 5 -- Intensive support pursuant to The Quality Education Act of 2003, Ark. Code Ann. § 6-15-201 et seq., the Arkansas Educational Support and Accountability Act, Ark. Code Ann. § 615-2901 et seq., the Arkansas Fiscal Assessment and Accountability Program, Ark. Code Ann. § 6-20-1901 et seq., and the Arkansas Public School Academic Facilities Program Act, Ark. Code Ann. § 6-21-801 et seq.; or
5.02.2 Upon receipt of a valid petition for annexation and after receiving proof from the petitioning party of at least one (1) of the required conditions set forth in Ark. Code Ann. § 6-13-1403(a) and Section 5.01 of these rules, and upon receipt of proof of the issuance of public notice of the intent to annex affected districts into a receiving district or districts in the local newspapers of general circulation in the affected districts for a time period of no less than one (1) time a week for two (2) consecutive weeks immediately prior to the time the petition is filed with the State Board.
5.03 In order for the petition for annexation to be valid, it shall be filed with the State Board at least thirty (30) days prior to the next regularly scheduled State Board meeting, at which time the petition will be presented for hearing before the State Board. However, no petition is required for the State Board to annex a school district or districts upon a motion of the State Board as allowed in Ark. Code Ann. § 6-13-1403(b) and Section 5.02 of these rules.
5.04 Upon determination by the State Board to annex a school district or approval of a petition requesting annexation, the State Board shall issue an order dissolving the affected district or districts and establishing the receiving district or districts.
5.04.1 The State Board shall issue an order establishing the boundary lines of the receiving district or districts.
5.04.2 It is the duty of the Arkansas Geographic Information Systems Office to make changes in the maps of the school districts to properly show the boundary lines of the receiving district or districts.
5.05 The State Board shall:
5.05.1 Issue an order establishing the changed boundaries; and
5.05.2 File the order with the:
5.05.2.1 County clerk of each county that contains school district territory of each affected or receiving district;
5.05.2.2 Assessor of each county that contains school district territory of each affected or receiving district;
5.05.2.3 Secretary of State; and
5.05.2.4 Arkansas Geographic Information Systems Office.
5.05.3 The county clerk shall make a permanent record of the order.
5.05.4 A consolidation or annexation order filed with the Secretary of State and the Arkansas Geographic Information Systems Office shall include a digital map showing the boundaries of the resulting district or receiving district in a format prescribed by the Arkansas Geographic Information Systems Office.
5.05.5 The boundaries established by the State Board pursuant to Ark. Code Ann. § 6-13-1403(e) and Section 5.05 of these rules shall be the boundaries of the receiving district or districts until changes are made according to the provisions of law.
5.06 The State Board shall not annex affected districts into a receiving district or districts that are not geographically contiguous unless the following limited conditions are determined to be valid reasons for annexation:
5.06.1 The annexation will result in the overall improvement in the educational benefit to students in all the school districts involved; or
5.06.2 The annexation will provide a significant advantage in transportation costs or service to all the school districts involved.
6.00CONDITIONS UNDER WHICH THE STATE BOARD OF EDUCATION MAY CONSOLIDATE SCHOOL DISTRICTS
6.01 The State Board shall consider the consolidation of affected districts into a new resulting district or districts under the following conditions:
6.01.1 The State Board, after providing thirty (30) days' written notice to the affected school districts, determines consolidation is in the best interest of the affected districts based upon failure to meet standards for accreditation, failure to meet fiscal distress requirements, or failure to meet the requirements to exit Level 5 -Intensive support pursuant to The Quality Education Act of 2003, Ark. Code Ann. § 6-15-201 et seq., the Arkansas Educational Support and Accountability Act, Ark. Code Ann. § 6-15-2901 et seq., the Arkansas Fiscal Assessment and Accountability Program, Ark. Code Ann. § 6-20-1901 et seq., and the Arkansas Public School Academic Facilities Program Act, Ark. Code Ann. § 6-21801 et seq.; or
6.01.2 The affected districts file a petition with the State Board requesting that the affected districts be consolidated into a resulting district or districts;
6.01.2.1 A copy of the petition has been filed with the county clerk's office of each county where the affected districts are located;
6.01.2.2 The county clerk's office certifies in writing to the State Board that the petition has been signed by a majority of the qualified electors of the affected districts;
6.01.2.3 A majority of the qualified electors in the affected districts votes to approve consolidation of the affected districts into a resulting district or districts pursuant to a valid election as provided in Ark. Code Ann. § 6-14-122; and
6.01.2.4 The local board of directors votes to approve by resolution of a majority of the members of each local board of education the consolidation of the affected districts into a resulting district or districts.
6.02 The State Board:
6.02.1 After providing thirty (30) days written notice to the affected districts, may consolidate school districts upon its own motion based upon a school district's failure to meet standards for accreditation, failure to meet fiscal distress requirements, or failure to meet the requirements to exit Level 5 -- Intensive support pursuant to The Quality Education Act of 2003, Ark. Code Ann. § 6-15-201 et seq., the Arkansas Educational Support and Accountability Act, Ark. Code Ann. § 6-15-2901 et seq., the Arkansas Fiscal Assessment and Accountability Program, Ark. Code Ann. § 6-20-1901 et seq., and the Arkansas Public School Academic Facilities Program Act, Ark. Code Ann. § 6-21-801 et seq.; or
6.02.2 May vote to approve by a majority of a quorum present of the members of the State Board the consolidation of the affected districts into a resulting district or districts upon receipt of a valid petition for consolidation after receiving proof from the petitioning party of at least one (1) of the required conditions set forth in Ark. Code Ann. § 6-13-1404(a) and Section 6.01 of these rules, and upon receipt of proof of the issuance of public notice of the intent to consolidate affected districts into a resulting district or districts in the local newspapers of general circulation in the affected districts for a time period of no less than one (1) time a week for two (2) consecutive weeks immediately prior to the time the petition is filed with the State Board.
6.03 In order for the petition for consolidation to be valid, it shall be filed with the State Board at least thirty (30) days prior to the next regularly scheduled State Board meeting, at which time the petition will be presented for hearing before the State Board. However, no petition is required for the State Board to consolidate a school district or districts on a motion of the State Board as allowed under Ark. Code Ann. § 6-13-1404(b) and Section 6.02 of these rules.
6.04 Upon consolidation of a school district by the State Board or approval of a petition requesting consolidation, the State Board shall issue an order dissolving the affected districts and establishing the resulting district or districts.
6.04.1 The State Board shall issue an order establishing the boundary lines of the resulting district or districts.
6.04.2 It is the duty of the Arkansas Geographic Information Systems Office to make changes in the maps of the school districts to properly show the boundary lines of the resulting district or districts.
6.05 The State Board shall:
6.05.1 Issue an order establishing the changed boundaries; and
6.05.2 File the order with the:
6.05.2.1 County clerk of each county that contains school district territory of each affected or resulting district;
6.05.2.2 Assessor of each county that contains school district territory of each affected or resulting district;
6.05.2.3 Secretary of State; and
6.05.2.4 Arkansas Geographic Information Systems Office.
6.05.3 The county clerk shall make a permanent record of the order.
6.05.4 A consolidation or annexation order filed with the Secretary of State and the Arkansas Geographic Information Systems Office shall include a digital map showing the boundaries of the resulting district or receiving district in a format prescribed by the Arkansas Geographic Information Systems Office.
6.05.5 The boundaries established under this subsection shall be the boundaries of the resulting district or districts until changes are made according to the provisions of law.
6.06 The State Board shall not consolidate affected districts that are not geographically contiguous unless the following limited conditions are determined to be valid reasons for consolidation:
6.06.1 The consolidation will result in the overall improvement in the educational benefit to students in all the school districts involved;

or

6.06.2 The consolidation will provide a significant advantage in transportation costs or service to all the school districts involved.
7.00RESULTING DISTRICT SUCCESSOR IN INTEREST - WHEN PART OF DISTRICT TAKEN
7.01 Any receiving or resulting district created under Ark. Code Ann. § 6-131407 and Section 7.00 of these rules shall become the successor in interest to the property of the school district dissolved, shall become liable for the contracts and debts of such a school district, and may sue and be sued therefor.
7.02 When territory less than the entire school district is annexed or consolidated to a school district, the receiving or resulting district shall take the property of the school district from which the territory was taken, as the State Board shall deem proper, and shall be liable for that part of all indebtedness of the school district from which the territory was taken as shall be assigned to it by the State Board unless otherwise approved by a majority vote of the affected school district's or districts' board or boards of directors.
8.00ANNEXATION OR CONSOLIDATION NOT TO NEGATIVELY IMPACT STATE-ASSISTED DESEGREGATION
8.01 The State Board shall not order any annexation, consolidation, or boundary change pursuant to Title 6, Chapter 13, Subchapter 14, or any other act or any combination of acts which hampers, delays, or in any manner negatively affects the desegregation efforts of a school district or districts in this state.
8.02 Prior to the entry of any order under Title 6, Chapter 13, Subchapter 14, the State Board shall seek an advisory opinion from the Attorney General concerning the impact of the proposed annexation, consolidation, or boundary change on the effort of the state to assist a school district or districts in desegregation of the public schools of this state.
8.03 Any order of annexation, consolidation, or boundary change or combination thereof that violates the provisions of Ark. Code Ann. § 6-131408 and Section 8.00 of these rules shall be null and void.
9.00OTHER STATE BOARD OF EDUCATION DUTIES
9.01 The State Board shall have the following duties regarding consolidations and annexations:
9.01.1 To form local school districts, change boundary lines of school districts, dissolve school districts and annex the territory of those school districts to another school district, create new school districts, and perform all other functions regarding changes in school districts in accordance with the law;
9.01.2 To transfer funds and attach territory that is in no school district to other school districts as may seem best for the educational welfare of the children; and
9.01.3 To enact rules and regulations regarding the consolidation and annexation of school districts pursuant to Title 6 of the Arkansas Code.
9.02 The millage rate of the electors of an affected district shall remain the same until an election may be held to change the rate of taxation for the resulting or receiving district or districts.
10.00APPEAL AND ELECTION
10.01 Notwithstanding any other provision of law or rule of the State Board, the decision of the State Board regarding an administrative consolidation, consolidation, administrative annexation, or annexation shall be final with no further right of appeal except that only an aggrieved district may appeal to Pulaski County Circuit Court pursuant to the Arkansas Administrative Procedure Act, Ark. Code Ann. § 25-15-201 et seq.
11.00USE OF FUND BALANCES
11.01 Unless otherwise approved by a unanimous vote of the board of directors of the resulting district, the fund balances of any school district that is consolidated, annexed, or otherwise reorganized shall be used by the resulting district solely for the construction of facilities or the operation, maintenance, or support of the schools that were located in the affected school district from which the fund balance was derived if any of the facilities of the affected district from which the fund balance was derived remain open.
11.02 The provisions of Ark. Code Ann. § 6-13-1411 and Section 11.00 of these rules shall not apply if the consolidation or annexation is because of the school district's failure to meet standards for accreditation, failure to meet fiscal distress requirements, or failure to meet the requirements to exit Level 5 -- Intensive support pursuant to The Quality Education Act of 2003, Ark. Code Ann. § 6-15-201 et seq., the Arkansas Educational Support and Accountability Act, Ark. Code Ann. § 6-15-2901 et seq., the Arkansas Fiscal Assessment and Accountability Program, Ark. Code Ann. § 6-20-1901 et seq., or the Arkansas Public School Academic Facilities Program Act, Ark. Code Ann. § 6-21-801 et seq.
12.00INVOLUNTARY ANNEXATION OR CONSOLIDATION - EFFECTIVE DATE - INTERIM BOARD OF DIRECTORS
12.01 Ark. Code Ann. § 6-13-1415 and Section 12.00 of these rules apply to the involuntary consolidation or involuntary annexation of a school district made by a motion of the State Board.
12.02 The effective date of an involuntary consolidation or involuntary annexation of a school district shall be the July 1 after the State Board action unless determined otherwise by the State Board.
12.03 The State Board shall establish the terms and conditions of the involuntary consolidation or involuntary annexation that shall govern the affected districts, resulting districts, and receiving districts.
12.04 If the State Board determines that a new permanent board of directors is necessary, the State Board shall prescribe:
12.04.1 The number of members for the new permanent board of directors of the resulting district or receiving district;
12.04.2 The manner of formation of the new permanent board of directors of the resulting district or receiving district under Ark. Code Ann. § 6-13-1417 and Section 14.00 of these rules; and
12.04.3 Whether the new permanent board of directors will be elected at the first or second school election after the effective date of consolidation or annexation. The election for the new permanent school board of directors may take place during the second school election after the effective date of consolidation or annexation only if the State Board determines that additional time is required to implement single-member zoned elections.
12.05 If the State Board determines that an interim board of directors is necessary, the State Board shall prescribe:
12.05.1 The number of members for the interim board of directors of the resulting district or receiving district;
12.05.2 The terms of the members of the interim board of directors of the resulting district or receiving district; and
12.05.3 The manner of formation of the interim board of directors of the resulting district or receiving district. The State Board may:
12.05.3.1 Allow the affected districts and receiving districts thirty (30) days to establish an interim board of directors to govern the resulting district or receiving district that consists of either five (5) or seven (7) members selected from the boards of directors from the affected districts and receiving districts based on the proportion of the student population of each of the affected districts and receiving districts before consolidation or annexation;
12.05.3.2 Appoint an interim board of directors to govern the resulting or receiving district that consists of either five (5) or seven (7) members selected from the boards of directors from the affected districts and receiving districts based on the proportion of the student population of each of the affected districts and receiving districts before consolidation or annexation; or
12.05.3.3 Designate the existing board of directors of one (1) affected district in a consolidation or the existing board of directors of the receiving district in an annexation as the interim board to govern the resulting district or receiving district.
12.06 The State Board may determine that an interim board of directors is not necessary and may order the existing board of directors of one (1) affected district in a consolidation or the existing board of directors of the receiving district in an annexation to remain as the permanent school board of directors.
12.07 An interim board of directors shall serve until the first school election after the effective date of consolidation or annexation unless:
12.07.1 Any members of the permanent board of directors of the resulting district or receiving district are elected from single-member zones, then the interim board of directors may serve until the second school election after the effective date of consolidation or annexation under Ark. Code Ann. § 6-13-1415(d)(1)(C) and Section 12.04.3 of these rules; or
12.07.2 All the members of the permanent board of directors of the resulting district or receiving district are elected at-large, then the State Board may stagger the terms of the interim board of directors, which shall be determined by lot so that no more than two (2) members' terms expire during any one (1) year.
12.08 If the State Board allows the local school districts time to establish an interim board of directors, the board of directors of each affected district before the consolidation or each affected district and receiving district before the annexation may determine independently how to select members of the existing board of directors to serve on the interim board of directors, subject to approval by the State Board, by:
12.08.1 The voluntary resignation of one (1) or more members of the existing board of directors;
12.08.2 Selecting one (1) or more members of the existing board of directors by a majority vote of the school board; or
12.08.3 Selecting one (1) or more members of the existing board of directors by a random lot drawing.
12.09 An interim board of directors shall be established by May 31 of the year preceding the effective date of administrative consolidation or administrative annexation under Ark. Code Ann. § 6-13-1603 if the State Board determines that an interim board of directors is necessary.
12.10 A consolidation or annexation order adopted by the State Board shall be filed with the:
12.10.1 County clerk of each county that contains school district territory of each affected district, receiving district, or resulting district;
12.10.2 Assessor of each county that contains school district territory of each affected district, receiving district, or resulting district;
12.10.3 Secretary of State; and
12.10.4 Arkansas Geographic Information Systems Office.
12.11 A consolidation or annexation order shall include a map of the boundaries of the resulting district or receiving district.
12.12 A consolidation or annexation order filed with the Secretary of State and the Arkansas Geographic Information Systems Office shall include a digital map showing the boundaries of the resulting district or receiving district in a format prescribed by the Arkansas Geographic Information Systems Office.
13.00VOLUNTARY CONSOLIDATION OR ANNEXATION - EFFECTIVE DATE - INTERIM BOARD OF DIRECTORS
13.01 Ark. Code Ann. § 6-13-1416 and Section 13.00 of these rules apply to any petition for consolidation or annexation of a school district submitted to the State Board by a school district.
13.02 The effective date of a petition for consolidation or annexation of a school district shall be the July 1 after the State Board approves the consolidation or annexation petition unless the State Board approves an alternative effective date or determines otherwise.
13.03 Each board of directors of an affected district and receiving district shall enter into a written agreement approved by the quorum of the members of each board of directors present and executed by the president and secretary of each school district's board of directors.
13.03.1 The written agreement may prescribe the effective date of the annexation of the affected district to the receiving district or the effective date of the formation of the resulting district from consolidation of affected districts, subject to approval by the state board.
13.03.2 The written agreement may prescribe the number of members of the permanent board of directors of the resulting district or receiving district and the manner of formation of the permanent board of directors of the resulting district or receiving district under Ark. Code Ann. § 6-13-1417 or as allowed by law.
13.03.2.1 If the written agreement prescribes the formation of a new permanent board of directors, the written agreement shall specify whether the new permanent board of directors will be elected at the first or second school election after the effective date of consolidation or annexation.
13.03.2.2 The election of a new permanent board of directors may take place during the second school election after the effective date of consolidation or annexation only if additional time is necessary to implement single-member zoned elections.
13.04 The written agreement may prescribe for the formation of an interim board of directors, including the number of members, the length of member terms, and the manner of formation as follows:
13.04.1 Establish an interim board of directors to govern the resulting district or receiving district that consists of either five (5) or seven (7) members selected from the boards of directors from the affected districts and receiving districts based on the proportion of the student population of each of the affected districts and receiving districts before consolidation or annexation;
13.04.2 Designate the existing board of directors of one (1) affected district in a consolidation or the existing board of directors of the receiving district in an annexation as the interim board of directors; or
13.04.3 Determine that an interim board of directors is not necessary and may designate the existing board of directors of one (1) affected district in a consolidation or the existing board of directors of the receiving district in an annexation to remain as the permanent school board of directors.
13.05 If the written agreement prescribes the formation of an interim board of directors, the interim board of directors shall serve until the first school election after the effective date of consolidation or annexation unless:
13.05.1 Any members of the permanent board of directors of the resulting district or receiving district are elected from single-member zones, then the interim board of directors may serve until the second school election after the effective date of consolidation or annexation under Ark. Code Ann. § 6-13-1416(c)(3)(B) and Sections 13.03.2.1 and 13.03.2.2 of these rules; or
13.05.2 All the members of the permanent board of directors of the resulting district or receiving district are elected at-large, then the written agreement may stagger the terms of the interim board of directors, which shall be determined by lot so that no more than two (2) members' terms expire during any one (1) year.
13.06 If the written agreement prescribes formation of an interim board of directors, the board of directors of the affected district before the consolidation or the affected district and receiving district before annexation may determine independently how to select members of the existing board of directors to serve on the interim board of directors by:
13.06.1 The voluntary resignation of one (1) or more members of the existing board of directors;
13.06.2 Selecting one (1) or more members of the existing board of directors by a majority vote of the school board; or
13.06.3 Selecting one (1) or more members of the existing board of directors by a random lot drawing.
13.07 If the written agreement in an administrative consolidation or an administrative annexation under Ark. Code Ann. § 6-13-1603 requires the formation of an interim board of directors, the interim board of directors shall be established by May 31 preceding the effective date of the administrative consolidation or administrative annexation.
13.08 An executed copy of the written agreement shall be attached to the petition for consolidation or annexation submitted to the State Board.
13.08.1 If the written agreement is approved by the State Board, the terms of the written agreement shall be binding upon the affected districts, receiving districts, and resulting districts, including the interim and permanent school boards of directors.
13.08.2 A written agreement under Ark. Code Ann. § 6-13-1416 and Section 13.00 of these rules shall not be effective without approval from the State Board.
13.09 A consolidation or annexation petition approved by the State Board along with an executed copy of the written agreement shall be filed with the:
13.09.1 County clerk of each county that contains school district territory of each affected district, receiving district, or resulting district;
13.09.2 Assessor of each county that contains school district territory of each affected district, receiving district, or resulting district;
13.09.3 Secretary of State; and
13.09.4 Arkansas Geographic Information Systems Office.
13.10 An approved consolidation or annexation petition shall include a map of the boundaries of the resulting district or receiving district.
13.11 An approved consolidation or annexation petition filed with the Secretary of State and the Arkansas Geographic Information Systems Office shall include a digital map showing the boundaries of the resulting district or receiving district in a format prescribed by the Arkansas Geographic Information Systems Office.
13.12 A receiving district that received an affected district as a result of a voluntary administrative annexation under § 6-13-1601et seq. shall notify all contiguous public school districts of its intent to close a public school campus that is part of an affected district a minimum of (1) year before the closure of the public school campus.
13.12.1 An affected district under Section 13.12 of these rules shall have been the result of a voluntary administrative annexation under § 6-13-1601et seq. that occurred no more than twenty (20) years ago.
13.13 Upon receiving notice from the receiving district under Section 13.12 of these rules, a contiguous public school district may:
13.13.1 Notify the receiving district of its interest in accepting the affected district for purposes of keeping the public school campus open, and;
13.13.2 Petition the State Board of Education to reverse the previous voluntary administrative annexation under § 6-131601 et seq. and consolidate the affected district into the contiguous public school district.
13.13.3 A petition under Section 13.13.2 of these rules shall include the following without limitation:
13.13.3.1 How the contiguous public school district intends to serve the students of the affected district;
13.13.3.2 Evidence that the consolidation will not cause fiscal hardship on the contiguous public school district; and
13.13.3.3 Evidence that the consolidation will not cause fiscal hardship on the affected district.
14.00FORMATION OF A PERMANENT BOARD OF DIRECTORS
14.01 A permanent board of directors shall have either five (5) or seven (7) members unless the school district is allowed to have nine (9) members under Ark. Code Ann. § 6-13-634.
14.02 The length of the terms of the board of directors may be for the time period prescribed by law and:
14.02.1 Prescribed in the written agreement under Ark. Code Ann. § 6-13-1416 and Section 13.00 of these rules; or
14.02.2 Determined by the permanent board of directors.
14.03 At the first meeting of the permanent board of directors, the members shall determine the terms of the board of directors by lot so that not more than two (2) members' terms expire during any one (1) year.
14.04 A vacancy on the board of directors shall be filled as prescribed by law.
14.05 If single-member election zones are not necessary to comply with the Voting Rights Act of 1965 or with any other federal or state law, any or all of the members of the permanent board of directors may be elected at large.
14.06 A minimum of five (5) members of a permanent board of directors shall be elected from single-member election zones if one (1) or more of the following applies:
14.06.1 Single-member election zones are required to comply with the Voting Rights Act of 1965 or other federal law; or
14.06.2 The boards of directors of the affected districts before consolidation or the boards of directors of the affected districts and receiving districts before annexation agree that the permanent board of directors shall be elected from single-member election zones.
14.07 If single-member election zones are necessary to comply with the Voting Rights Act of 1965, other federal law, or state law, the resulting district or receiving district shall:
14.07.1 Review the demographic makeup and boundaries of the zones based on the latest decennial census data of the resulting district or receiving district after consolidation or annexation and rezone the resulting district or receiving district as necessary to comply with the Voting Rights Act of 1965, other federal law, or state law;
14.07.2 Complete the election rezoning no later than one hundred twenty (120) calendar days before the second school election following the effective date of the consolidation or annexation; and
14.07.3 No later than one hundred twenty (120) calendar days before the second school election following the effective date of the consolidation or annexation, file a digital map, in a format prescribed by the Arkansas Geographic Information Systems Office, detailing the election zone boundaries of the resulting district or receiving district with the:
14.07.3.1 Secretary of State;
14.07.3.2 Arkansas Geographic Information Systems Office; and
14.07.3.3 County clerk of each county that contains school district territory of each affected district, receiving district, or resulting district.
CHAPTER 3:VOLUNTARY CONSOLIDATIONS AND ANNEXATIONS INVOLVING SMALL DISTRICTS
15.00DEPARTMENT RECORDS REGARDING SMALL DISTRICTS
15.01 The Division of Elementary and Secondary Education shall maintain records of all school districts with fewer than three hundred fifty (350) students according to the school district average daily membership in the school year immediately preceding the current school year.
16.00ADMINISTRATIVE REORGANIZATION
16.01 Any school district with fewer than three hundred fifty (350) students may voluntarily agree to administratively consolidate with or be annexed to another school district or districts in accordance with the requirements and limitations of Ark. Code Ann. § 6-13-1603 and Section 16.00 of these rules.
16.02 Any school district with fewer than three hundred fifty (350) students choosing to voluntarily administratively consolidate or annex shall submit a petition for approval to the State Board by March 1 and shall set forth the terms of the administrative consolidation or annexation agreement in the petition. If the petition is approved by the State Board, the administrative consolidation or annexation shall be completed by May 1, to be effective July 1.
16.03 The State Board shall promptly consider petitions submitted pursuant to this Rule to administratively consolidate a school district with fewer than three hundred fifty (350) students in order to enable the affected school districts to reasonably accomplish any resulting administrative consolidation or annexation by July 1.
16.04 The State Board shall not deny the petition for voluntary administrative consolidation or annexation of any two (2) or more school districts unless:
16.04.1 The provisions contained in the articles of administrative consolidation or annexation would violate state or federal law; or
16.04.2 The voluntary consolidation or annexation would not contribute to the betterment of the education of students in the school district.
16.05 All administrative consolidations or annexations under Ark. Code Ann. § 6-13-1603 and Section 16.00 of these rules shall be accomplished so as not to create a school district that hampers, delays, or in any manner negatively affects the desegregation of another school district in this state.
16.06 In the administratively consolidated or annexed school districts created under Title 6, Chapter 13, Subchapter 16 and Section 16.00 of these rules, the ad valorem tax rate shall be determined as set forth under Ark. Code Ann. § 6-13-1409 and Section 9.00 of these rules.
16.07 Nothing in Ark. Code Ann. § 6-13-1603 or Section 16.00 of these rules shall be construed to require the closing of any school or school facility.
16.08 No administratively consolidated or annexed resulting or receiving school district shall have more than one (1) superintendent.
16.09 Any school district not designated as being in academic or fiscal distress for the current school year and previous two (2) school years that administratively receives by consolidation or annexation a school district designated by the State Board as being in academic or fiscal distress at the time of consolidation or annexation shall not be subject to academic or fiscal distress sanctions for a period of three (3) years from the effective date of consolidation unless:
16.09.1 The school district fails to meet minimum teacher salary requirements; or
16.09.2 The school district fails to comply with the Standards for Accreditation of Arkansas Public Schools and School Districts issued by the Division of Elementary and Secondary Education.
16.10 Noncontiguous school districts may voluntarily consolidate if the facilities and physical plant of each school district:
16.10.1 Are within the same county, and the State Board approves the administrative consolidation; or
16.10.2 Are not within the same county, and the State Board approves the administrative consolidation or administrative annexation and finds that:
16.10.2.1 The administrative consolidation or administrative annexation will result in the overall improvement in the educational benefit to students in all of the school districts involved; or
16.10.2.2 The administrative consolidation or administrative annexation will provide a significant advantage in transportation costs or service to all of the school districts involved.
16.11 Contiguous school districts may administratively consolidate even if they are not in the same county.
16.12 The provisions of Ark. Code Ann. §§ 6-13-1415 through 6-13-1417, and Sections 12.00 through 14.00 of these rules, shall govern the board of directors of each resulting district or receiving district created under Title 6, Chapter 13, Subchapter 16 and Section 16.00 of these rules.
17.00RETENTION OF HISTORICAL RECORDS AND DOCUMENTS
17.01 Following the annexations or consolidations under Ark. Code Ann. § 613-1601 et seq. effective prior to December 1, 2004, and prior to any consolidation, annexation, detachment, approval of a conversion charter, or any other type of reclassification or reorganization of a school district after December 31, 2004, a receiving or resulting school district shall obtain and retain all student and historical records and documents from the affected school district, specifically including, but not limited to:
17.01.1 Student transcripts;
17.01.2 Graduation records;
17.01.3 Minutes and other legal documents of the local board of directors;
17.01.4 Maps or boundary documents;
17.01.5 Sports records, trophies, and awards;
17.01.6 Employee records; and
17.01.7 Financial records.
18.00AUDIT REQUIRED
18.01 The Arkansas Legislative Audit shall conduct a comprehensive financial review of all the school district's financial matters for any school that is involved in administrative consolidation or administrative annexation or is otherwise reorganized by the State Board.
18.02 The comprehensive financial review shall begin no less than ten (10) days after the earliest of:
18.02.1 The filing of a petition for voluntary administrative consolidation or administrative annexation; or
18.02.2 The adoption of a motion by the State Board to consolidate, annex, or otherwise reorganize a school district designated as being in academic or fiscal distress.
18.03 By January 1 of each year, the Division of Elementary and Secondary Education shall have authority to oversee all fiscal and accounting-related matters of all school districts with fewer than three hundred fifty (350) students and shall require those school districts to have accurate records necessary to close all books within sixty (60) days after the end of the fiscal year.
18.03.1 No contract or other debt obligation incurred by a school district for which the Division has oversight authority under Ark. Code Ann. § 6-13-1608 and Section 18.00 of these rules shall be valid or enforceable against a resulting school district unless the contract or other debt obligation is preapproved in writing by the Commissioner of Elementary and Secondary Education or his or her designee.
18.04 Any school that is involved in an administrative consolidation or administrative annexation shall have an audit started within thirty (30) days of the completion of the closing of the books by the school district.
18.05 The Division of Elementary and Secondary Education and the Arkansas Legislative Audit shall jointly develop the scope and details of the comprehensive fiscal review consistent with the requirements of Ark. Code Ann. § 6-13-1608 and Section 18.00 of these rules.
18.06 A school district may not incur debt without the prior written approval of the Division of Elementary and Secondary Education if the school district is identified by the Division of Elementary and Secondary Education as having fewer than three hundred fifty (350) students according to the school district average daily membership in the school year immediately preceding the current school year.
19.00PRESERVATION OF HISTORICAL SCHOOL ARTIFACTS
19.01 Following the administrative consolidations or administrative annexations under Ark. Code Ann. §§ 6-13-1601 - 6-13-1603, 6-13-1604 [repealed], and 6-13-1605 [repealed] effective before December 1, 2004, and before any consolidation, annexation, detachment, approval of a conversion charter, or any other type of reclassification or reorganization of a school district after December 31, 2004, a receiving district or resulting district shall obtain, retain, preserve, and, as appropriate, display historical artifacts of the affected district in the same manner as if the historical artifacts were those of the receiving district or resulting district.
20.00FINANCIAL RELIEF FOR DEBTS ACQUIRED AS A RESULT OF INVOLUNTARY CONSOLIDATIONS
20.01 As used in Section 20.00 of these rules:
20.01.1 "Accounts payable" means a debt owed by a school district on June 30 immediately prior to administrative consolidation, excluding bonded indebtedness or other long-term debt;
20.01.2 "Available funding" means funds that are available to a school district for paying accounts payable or are reasonably expected to be collected and available for payment of accounts payable;
20.01.3 "Excess accounts payable" means accounts payable of an Act 60 school district that exceed available funding; and
20.01.4 "Improper expenditure exceptions" means an erroneous expenditure of federal or state funds that is noted as an audit exception and has been determined by the Division of Elementary and Secondary Education to require an expenditure of funds by the resulting school district to be correct.
20.02 The amount of the supplemental funding provided under Ark. Code Ann. § 6-13-1610(b) and Section 20.02 of these rules shall be equal to the amount of the excess accounts payable and improper expenditure exceptions assumed by the resulting school district.
20.02.1 The amount of accounts payable, excess accounts payable, improper expenditure exceptions, and available funding shall be determined by the Division of Elementary and Secondary Education based on information provided in a final audit and other verifiable fiscal information available to the Division of Elementary and Secondary Education.
20.02.2 The audit of an Act 60 school district required under Ark. Code Ann. § 6-13-1610 and Section 20.00 of these rules shall be completed within the time under Ark. Code Ann. § 6-20-1801(d) for school districts in fiscal distress.
20.02.3 No supplemental funding shall be paid under this section until after completion of a final audit by the Arkansas Legislative Audit or a private certified public accountant that may conduct school district audits under Ark. Code Ann. § 6-20-1801.
20.03 Beginning on January 1, the Division of Elementary and Secondary Education shall have authority to oversee all fiscal and accounting-related matters of all school districts with fewer than three hundred fifty (350) students and shall require these school districts to have accurate records necessary to close all books within sixty (60) days of the end of the fiscal year.
20.03.1 No contract or other debt obligation incurred by a school district for which the Division of Elementary and Secondary Education has oversight authority under Ark. Code Ann. § 6-13-1610 and Section 20.00 of these rules shall be valid or enforceable against a resulting district unless the contract or other debt obligation is preapproved in writing by the Commissioner of Elementary and Secondary Education or his or her designee.
21.00ANNUAL REPORTS
21.01 By October 1 of each year, the resulting district or receiving district of any school district that was administratively consolidated or administratively annexed under Ark. Code Ann. §§ 6-13-1601 - 6-13-1603, 6-13-1604 [repealed], and 6-13-1605 [repealed] shall file a written report with the House Interim Committee on Education, the Senate Interim Committee on Education, and the Division of Elementary and Secondary Education indicating:
21.01.1 What efforts were made and the results of those efforts for inclusion of parents from the affected district in the receiving district's or the resulting district's activities, including without limitation:
21.01.1.1 Parent-teacher associations;
21.01.1.2 Booster clubs; and
21.01.1.3 Parent involvement committees;
21.01.2 The number and percentage of students from the affected districts participating in an extracurricular activity, itemized by each extracurricular activity offered by the school district and, for each activity, which school district the student attended before reorganization; and
21.01.3 The employment status of each administrator by name, gender, and race before the administrative annexation or administrative consolidation, which school employed the administrator before administrative consolidation, and his or her employment status in the receiving district or the resulting district.
21.02 The Division of Elementary and Secondary Education shall develop or approve a survey to be used by the resulting or receiving districts to capture perceptual data from parents and students regarding their opinions on:
21.02.1 Opportunities for inclusion or participation in the resulting or receiving district; and
21.02.2 The efforts, if any, that were made to include parents from the affected district in the receiving or resulting district's activities, including, but not limited to, parent-teacher associations, booster clubs, and parent involvement committees.
22.00ACADEMIC SUPPORT CENTERS
22.01 The purpose of Ark. Code Ann. § 6-13-1612 and Section 22.00 of these rules is to:
22.01.1 Prevent students who attend administratively consolidated or administratively annexed schools from returning home to communities with little or no opportunities for supplemental academic support;
22.01.2 Increase opportunities for access to library materials, academic resource materials, and educational technology for these students within their local communities; and
22.01.3 Help advance academic performance for these students by providing opportunities for homework and tutorial assistance based on the Arkansas academic standards.
22.02 An academic support center may be established in communities whose schools have been closed by administrative consolidation or administrative annexation under Title 6, Chapter 13, Subchapter 16 of the Arkansas Code to fulfill the objectives identified in Ark. Code Ann. § 6-13-1612(a) and Section 22.00 of these rules.
22.03 The Division of Elementary and Secondary Education shall report annually to the House Interim Committee on Education and the Senate Interim Committee on Education regarding the establishment of academic support centers and their effectiveness.
CHAPTER 4:CONSOLIDATION AND ANNEXATION INCENTIVE FUNDING
23.00DEFINITIONS APPLICABLE TO CONSOLIDATION AND ANNEXATION INCENTIVE FUNDING

For the purposes of Sections 23.00 through 25.00 of these rules, the following definitions apply:

23.01 "Annexation" includes both Annexation and Administrative Annexation as defined in Section 3.00 of these Rules.
23.02 "Consolidation" includes both Consolidation and Administrative Consolidation as defined in Section 3.00 of these Rules.
23.03 "Foundation Funding" means an amount of money specified by the General Assembly for each school year to be expended by school districts for the provision of an adequate education for each student.
23.04 "Per Student Foundation Funding Amount" means a dollar amount established by the General Assembly to be multiplied by the ADM of the previous school year for the district foundation funding.
23.05 "Funding Factor" means a factor established by the Division of Elementary and Secondary Education (Division) to ensure that the calculated funding does not exceed the funds available for consolidation/annexation incentive funding.
24.00GUIDELINES FOR THE DISTRIBUTION OF CONSOLIDATION AND ANNEXATION INCENTIVE FUNDING
24.01 The distribution of consolidation and annexation incentive funding is dependent upon appropriation and funding by the Arkansas General Assembly.
24.02 Consolidation/annexation incentive funding shall be determined as follows:
24.02.1 One hundred percent (100%) of the incentive allowance computed as provided in these rules shall be in addition to the school district's aid the first year of consolidation/annexation. The second year of consolidation/annexation the district shall receive fifty percent (50%) of the consolidation/annexation incentive funding received by the district in the previous year in addition to other state aid. Beginning in the third year and each year thereafter no consolidation/annexation incentive funding shall be provided. The consolidation/annexation incentive is intended to supplement the customary state aid the districts would have received had the consolidation/annexation not occurred.
24.02.2 For those school districts not required to be consolidated/annexed in the current school year, if two (2) districts consolidate or one (1) district is annexed to another school district, multiply the prior year ADM of the smaller district by the per student foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable is three hundred (300).
24.02.3 For those school districts required to be consolidated/annexed in the current school year, if two (2) districts consolidate or one (1) district is annexed to another school district, multiply the prior year ADM of the smaller district by the per student foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable is three hundred (300).
24.02.4 For those school districts not required to be consolidated/annexed in the current school year, if three (3) districts consolidate or two (2) districts are annexed to a third school district, multiply the total prior year ADM of the two (2) smaller districts by the per student foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable is four hundred (400).
24.02.5 For those school districts required to be consolidated/annexed in the current school year, if three (3) districts consolidate or two (2) smaller districts are annexed to another school district, multiply the prior year ADM of the smaller district by the per student foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable three hundred (300).
24.02.6 For those school districts not required to be consolidated/annexed in the current school year, if four (4) or more districts consolidate or three (3) or more districts are annexed to another school district, multiply the total prior year ADM of all except the largest district by the per student foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable is five hundred (500).
24.02.7 For those school districts required to be consolidated/annexed in the current school year, if four (4) or more districts consolidate or three (3) or more districts are annexed to another school district, multiply the prior year ADM of the smaller district by per student the foundation funding amount, then by the funding factor, where the minimum ADM applicable is one hundred (100) and the maximum ADM applicable is three hundred (300).
24.02.8 If a district is annexed by multiple school districts, the incentive funding shall be computed as in Sections 24.02.1 through 24.02.7 above. The incentive funding shall then be prorated among the receiving districts based upon the percentage of the annexed district's ADM received by each receiving district.
25.00GENERAL REQUIREMENTS
25.01 Consolidation/annexation incentive funding shall be distributed to either the resulting district(s) established after consolidation or the receiving district(s) after annexation.
25.02 Any district that has received consolidation/annexation incentive funds and subsequently dissolves shall be liable to the Division of Elementary and Secondary Education for the full or apportioned amount of incentive funding received if any of the following conditions result due to the dissolution:
25.02.1 Districts are formed with substantially the same boundaries as the former districts prior to consolidation or annexation;
25.02.2 The ability of any district to desegregate or remain desegregated is inhibited;
25.02.3 The ability of the State to ensure that students are provided a quality education in an efficient manner is inhibited.
25.03 Any repayment due, as required in Section 25.02 above, shall be paid from the assets of the district prior to dissolution of the district. The Division of Elementary and Secondary Education may withhold, from any state funding due the district, the amount of repayment funds or a portion thereof.
25.04 In the event full repayment is not made as required under Section 25.02 above, the Division of Elementary and Secondary Education shall withhold from those districts that are formed as a result of the dissolution, future state funding in the amount of the repayment owed. The repayment shall be apportioned among the districts on a per ADM basis unless the Division determines that such apportionment would be inequitable. In such case, the State Board shall apportion the repayment among the districts upon an equitable basis.
26.00STATE BOARD HEARING PROCEDURES - VOLUNTARY CONSOLIDATIONS AND ANNEXATIONS
26.01 All persons wishing to testify before the State Board shall first be placed under oath by the Chairperson of the State Board.
26.02 The spokesperson(s) for the petitioning school districts shall have a total of fifteen (15) minutes to present the school districts' remarks. The State Board may allow more than fifteen (15) minutes if necessary.
26.03 The spokesperson(s) for any individual or group of citizens that opposes the petition shall have a total of fifteen (15) minutes to present the remarks of the individual or group of citizens. The State Board may allow more than fifteen (15) minutes if necessary.
26.04 The spokesperson(s) for the petitioning school districts shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
26.05 The spokesperson(s) for any individual or group of citizens that opposes the petition shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
26.06 The State Board shall then discuss, deliberate and vote upon the matter of approving or denying the school districts' petition.
26.07 If it deems necessary, the State Board may take the matter under advisement and announce its decision at a later date, provided that all discussions, deliberations and votes upon the matter take place in a public hearing.
26.08 The State Board shall issue a written order concerning the matter.
27.00STATE BOARD HEARING PROCEDURES - INVOLUNTARY CONSOLIDATIONS AND ANNEXATIONS
27.01 All persons wishing to testify before the State Board shall first be placed under oath by the Chairperson of the State Board.
27.02 The spokesperson(s) for the Division of Elementary and Secondary Education shall have a total of fifteen (15) minutes to present the Division's remarks. The State Board may allow more than fifteen (15) minutes if necessary.
27.03 The spokesperson(s) for any individual or group of citizens that opposes the annexation or consolidation shall have a total of fifteen (15) minutes to present the remarks of the individual or group of citizens. The State Board may allow more than fifteen (15) minutes if necessary.
27.04 The spokesperson(s) for the Division shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
27.05 The spokesperson(s) for any individual or group of citizens that opposes the annexation or consolidation shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
27.06 The State Board shall then discuss, deliberate and vote upon the matter of approving or denying the school districts' petition.
27.07 If it deems necessary, the State Board may take the matter under advisement and announce its decision at a later date, provided that all discussions, deliberations and votes upon the matter take place in a public hearing.
27.08 The State Board shall issue a written order concerning the matter.
CHAPTER 5:WAIVERS
28.00MINIMUM SCHOOL DISTRICT SIZE WAIVER
28.01 A school district with fewer than three hundred fifty (350) students may annually request a waiver from the average daily membership requirement of three hundred fifty (350) students from the State Board of Education.
28.02 A school district shall submit a petition for a waiver to the State Board no later than February 1st prior to the school year in which the waver will take effect. The petition for waiver shall include:
28.02.1 The average daily membership of the school district in the current school year;
28.02.2 A statement that the school district is not in probationary status for any violation of the Standards for Accreditation of Arkansas Public Schools and School Districts;
28.02.3 A copy of the school district's current year budget and any fiscal audit conducted within the previous two years; and
28.02.4 A statement of assurance that the school district is not currently classified in academic distress, fiscal distress, or facilities distress.
28.03 The State Board shall render a decision to either grant or reject a petition for waiver that is received by a school district within forty-five (45) days of receipt.
28.04 The State Board shall grant a petition for a waiver if it is demonstrated by the school district that:
28.04.1 The school district is not currently classified in academic distress, fiscal distress, or facilities distress;
28.04.2 The school district is not in probationary status for a violation of the Standards for Accreditation of Arkansas Public Schools and School Districts;
28.04.3 The academic facilities owned and operated by the school district are adequate as evidenced by the school district's facilities master plan; and
28.04.4 It is in the best interest of the students in the school district to keep the school district open due to the length of potential time spent on the bus by a student traveling to and from school should the school district be administratively reorganized, as assured by the school board of directors of the school district requesting the waiver.
28.05 The State Board may revoke a waiver that has been granted to a school district at anytime if it is found that the conditions under § 6-13-1613(b)(2)(A) and Section 28.04 of these rules change. A hearing shall be conducted using the following procedures:
28.05.1 All persons wishing to testify before the State Board shall first be placed under oath by the Chairperson of the State Board.
28.05.2 The spokesperson(s) for the Division of Elementary and Secondary Education shall have a total of fifteen (15) minutes to present the Division's remarks. The State Board may allow more than fifteen (15) minutes if necessary.
28.05.3 The spokesperson(s) for the district shall have a total of fifteen (15) minutes to present the district's remarks. The State Board may allow more than fifteen (15) minutes if necessary.
28.05.4 The spokesperson(s) for the Division shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
28.05.5 The spokesperson(s) for the district shall have a total of ten (10) minutes to present closing remarks to the State Board. The State Board may allow more than ten (10) minutes if necessary.
28.05.6 The State Board shall then discuss, deliberate and vote upon the matter of revoking the school districts' waiver.
28.05.7 If it deems necessary, the State Board may take the matter under advisement and announce its decision at a later date, provided that all discussions, deliberations and votes upon the matter take place in a public hearing.
28.05.8 The State Board shall issue a written order concerning the matter.
CHAPTER 6:BOUNDARY CHANGE PETITIONS TO THE STATE BOARD OF EDUCATION
29.00General Provisions
29.01 A school district may request the State Board modify the boundary between two school districts under the boundary change process established in Ark. Code Ann. § 6-13-1414 by filing a petition with the State Board.
29.01.1 The boundary change process does not allow territory of a district to be added to the territory of another districts if that territory includes real property on which a school facility in active use is located.
29.02 Prior to filing a boundary change petition; the local school district seeking a boundary change shall:
29.02.1 Notify the district or districts which would be affected by the proposed boundary change;
29.02.2 Satisfy the boundary negotiation requirements of Section 30.00; and
29.02.3 Publish notice in the local newspapers of general circulation in each affected district no less than one (1) time a week for two (2) consecutive weeks.
29.02.3.1 The notice shall contain the following information:
29.02.3.1.a The name of the school district asking the State Board for the boundary change;
29.02.3.1.b The name of all other school districts affected by the proposed boundary change;
29.02.3.1.c A map reflecting the proposed boundary change which clearly shows which district will lose territory and which district will gain that territory;
29.02.3.1.d The amount of tax revenue that was collected from the properties affected by the proposed boundary change expressed in dollars;
29.02.3.1.e An estimate of the number of students whose district assignment would be modified by the proposed boundary change;
29.02.3.1.f A statement describing why the proposed boundary change is being requested; and
29.02.3.1.g A venue to submit written public comments regarding the proposed boundary change.
29.03 A petition for a boundary change shall:
29.03.1 Be in writing;
29.03.2 Be adopted by a majority vote of the petitioning board of directors; and
29.03.3 Utilize the form provided by the Division of Elementary and Secondary Education.
29.04 Prior to the meeting in which the petition is considered, each district shall submit the following information to the State Board:
29.04.1 The number of students who currently attend that district and who would no longer attend the district if the boundary change requested by the petition was currently in effect;
29.04.2 The total student population of the district;
29.04.3 The amount of tax revenue derived in the prior tax year from property located within the district's territory that would fall outside the district's territory if the petition is granted;
29.04.4 The total property tax revenue received by the district in the prior tax year; and
29.04.5 The text of all written public comments submitted to the district regarding the proposal.
30.00BOUNDARY NEGOTIATION REQUIREMENTS
30.01 A school district which seeks a boundary change shall be required to meet with all adjoining school districts affected by the proposed boundary change.
30.02 In the meeting required by Section 30.01, the district representatives shall:
30.02.1 Consider the basis of the boundary change petition as presented by the petitioning district;
30.02.2 Discuss the merits of modification to the existing boundaries based on the factors set out in Section 32.03.
30.02.3 Determine whether a mutually agreed boundary can be established which would address the concerns of all affected districts.
30.02.3.1 If an agreement to modify the district boundary is reached, that agreement must be ratified through the adoption of a resolution by the board of directors of each district affected by the boundary change in order to constitute an agreement pursuant to Ark. Code Ann. § 6-13-1414(c) and Section 32.02.
31.00Procedure for Consideration of a Boundary Change Petition
31.01 A school district shall file its petition with the State Board only upon completion of the requirements provided in Section 29.02.
31.02 If a petition is filed at least thirty (30) days prior to the next regularly scheduled State Board meeting, the petition shall be placed on the agenda for that meeting.
31.02.1 If the petition is filed less than thirty (30) days prior to the next regularly scheduled State Board meeting, the petition shall be considered at the following State Board meeting.
31.03 When a boundary change petition is received, the Department shall give notice to each district affected of the date, time, and location of the State Board meeting in which the petition will be considered and a copy of the petition.
31.04 Prior to considering a boundary change petition, the Department shall seek an advisory opinion from the Attorney General concerning the impact of the proposed boundary change on the effort of the state to assist a school district or districts in desegregation of the public schools of this state.
31.05 All persons wishing to testify before the State Board shall first be placed under oath by the Chairperson of the State Board.
31.06 The spokesperson for the petitioning school districts shall have a total of fifteen (15) minutes to present the school districts' argument in favor of a boundary change. The State Board may allow more than fifteen (15) minutes if necessary.
31.07 The spokesperson for each additional school district affected by the boundary change proposal shall have a total of fifteen (15) minutes to present the school districts' position on the proposal. The State Board may allow more than fifteen (15) minutes if necessary.
31.08 The spokesperson(s) for the petitioning school districts shall have a total of five (5) minutes to present closing remarks to the State Board. The State Board may allow more than five (5) minutes if necessary.
31.09 The State Board may allow public comment by other interested parties at its discretion and for a time period to be determined by the State Board.
31.10 The State Board shall then discuss, deliberate, and vote upon the matter of proposed boundary change.
31.11 When resolving a boundary change petition, the state board may:
31.11.1 Grant the petition in its entirety;
31.11.2 Deny the petition in its entirety;
31.11.3 Grant the petition to modify the districts boundary creating a new boundary other than the boundary proposed in the petition;
31.11.4 Dismiss the petition for failure to satisfy the procedural requirements in Sections 29.00 and 30.00; and
31.11.5 Take the matter under advisement and announce its decision at a later date, provided that all discussions, deliberations and votes upon the matter take place in a public hearing.
31.12 The State Board shall issue a written order concerning the matter.
32.00Standard of Review for a Boundary Change Petition
32.01 The resolution of a boundary change petition shall be decided by a majority of the members of the quorum present.
32.02 When the petitioner's boundary change proposal is supported by a resolution adopted by a vote of each affected school district board of directors, the State Board shall approve the boundary change proposal unless the State Board determines:
32.02.1 The proposed boundary change will have a substantial adverse effect on the education of students in the affected districts;
32.02.2 The proposed boundary change will significantly increase the time students spend on district provided transportation; or
32.02.3 The proposed boundary change may cause an affected district to enter fiscal destress.
32.03 When the petitioner's boundary change proposal is opposed by one or more affected school district, the State Board shall consider the following factors when exercising its best judgment regarding whether the petition should be granted:
32.03.1 The impact on the education of students affected by the proposed boundary change.
32.03.2 The number of voluntary transfer students who reside in the territory subject to the proposed boundary change that would become residents of the district if the petition is granted.
33.02.1.1 If more than sixty-seven (67) percent of the students who reside in the territory subject to the proposed boundary change have voluntarily transferred to the district that would become the student's resident district if the petition were granted, there shall be a rebuttable presumption that the petition should be granted.
32.02.3 The effect the petition would have on the distance students must travel in order to access public education provided by the State.
32.02.4 The capacity of the district gaining territory to absorb the increased student population.
32.02.5 The extent to which the change will increase the cohesiveness of municipalities or community groups.
32.02.6 The financial impact of the change on the affected district.
32.04 In all cases, any boundary change proposal that hampers, delays, or in any manner negatively affects the desegregations efforts of any district affected by the petition shall be denied.
33.00Implementation of a Boundary Change
33.01 When the State Board issues an order altering the boundary of two (2) or more school districts under Section 31.12, the order shall be submitted to the petitioner and each district which was subject to the petition.
33.02 If the order makes a change to an existing school district boundary, the Department shall:
33.02.1 File the order with the Arkansas Geographic Information System Office who shall produce maps reflecting the order of the State Board;
33.02.2 File the order and the maps produced by the Arkansas Geographic Information System Office with:
33.02.2.1 The county clerk of each county in which a school district that had its boundary changed has territory;
33.02.2.2 The assessor of each county in which a school district that had its boundary changed has territory; and
33.02.2.3 The Secretary of State.
CHAPTER 7:FORMS
34.00FORMS REQUIRED UNDER THIS RULE
34.01 The Division Elementary and Secondary Education shall develop forms required under this rule for non-administrative consolidation or annexations including but are not limited to the following:
34.01.1 Petition for Annexation
34.01.2 Petition for Consolidation
34.01.3 Resolution of the Local School Board of Directors
34.01.4 Affidavit Concerning Desegregation Orders
34.02 The Division Elementary and Secondary Education shall develop forms required under this rule for administrative consolidation or annexations including but are not limited to the following:
34.02.1 Petition for Voluntary Administrative Annexation
34.02.2 Petition for Voluntary Administrative Consolidation
34.02.3 Resolution of the Local School Board of Directors
34.02.4 Affidavit of Average Daily Enrolment
34.02.5 Affidavit of Isolated School Status
34.02.6 Affidavit Concerning Desegregation Orders
34.03 The Division Elementary and Secondary Education shall develop forms required under this rule for a boundary change petition including but are not limited to the following:
34.03.1 Petition for a School District Boundary Change
34.03.2 Resolution of the Local School Board of Directors
34.03.3 Affidavit Concerning Desegregation Orders
34.04 Forms submitted to the State Board pursuant to this rule shall be those forms published on the website of the Division Elementary and Secondary Education.

005.28.24 Ark. Code R. 041

Adopted by Arkansas Register Volume 49, Number 12, Effective 12/6/2024