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6-13-1030. Removal from fiscal distress status.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1030. Removal from fiscal distress status.
(a) The Division of Elementary and Secondary Education shall certify in writing to the education service cooperative that the education service cooperative may be removed from fiscal distress status when the division determines that the education service cooperative has:
(1) Corrected all of the criteria under § 6-13-1027 that led to the classification of fiscal distress; and
(2) Complied with all division recommendations and requirements for removal from fiscal distress status.
(b)(1) Within thirty (30) days of receiving the division's certification under subsection (a) of this section, an education service cooperative may petition the State Board of Education in writing for removal from fiscal distress.
(2) An education service cooperative may not petition the state board for removal from fiscal distress status before the division makes the certification under subsection (a) of this section.
(c) Within sixty (60) days of receiving the petition for removal from fiscal distress, the state board shall deny the petition or remove the education service cooperative from fiscal distress status.
(d) If an education service cooperative fails to meet the division's requirements for removal from fiscal distress status within two (2) consecutive school years of being classified in fiscal distress, the state board shall:
(1) Reorganize the administrative unit of the education service cooperative under § 6-13-1029; or
(2)(A) Issue a written finding supported by a majority vote of the state board explaining in detail that the education service cooperative could not comply with this section due to impossibility caused by external forces beyond the education service cooperative's control.
(B) The state board shall ext
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1030
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:6-13-1030
Source file: gov.ar.code.title.06.odt
Pages: Not recorded – Not recorded
Passage SHA-256: a220ee03c46f8c6df68f0a8b36ae11c820fe2c1c53391289092efa8390c7cc14
Source location: content.xml paragraph 4829
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6-13-1030. Removal from fiscal distress status.
(a) The Division of Elementary and Secondary Education shall certify in writing to the education service cooperative that the education service cooperative may be removed from fiscal distress status when the division determines that the education service cooperative has:
(1) Corrected all of the criteria under § 6-13-1027 that led to the classification of fiscal distress; and
(2) Complied with all division recommendations and requirements for removal from fiscal distress status.
(b)(1) Within thirty (30) days of receiving the division's certification under subsection (a) of this section, an education service cooperative may petition the State Board of Education in writing for removal from fiscal distress.
(2) An education service cooperative may not petition the state board for removal from fiscal distress status before the division makes the certification under subsection (a) of this section.
(c) Within sixty (60) days of receiving the petition for removal from fiscal distress, the state board shall deny the petition or remove the education service cooperative from fiscal distress status.
(d) If an education service cooperative fails to meet the division's requirements for removal from fiscal distress status within two (2) consecutive school years of being classified in fiscal distress, the state board shall:
(1) Reorganize the administrative unit of the education service cooperative under § 6-13-1029; or
(2)(A) Issue a written finding supported by a majority vote of the state board explaining in detail that the education service cooperative could not comply with this section due to impossibility caused by external forces beyond the education service cooperative's control.
(B) The state board shall extend the classification of fiscal distress for one (1) additional year within which time the education service cooperative shall comply with all conditions for removal from fiscal distress status under this section.
(e) Within fifteen (15) days of making a decision under this section, the state board shall notify the education service cooperative of its decision and include with the notice a copy of a written finding issued under subsection (d) of this section.
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Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1027. Fiscal distress — Definitions.
(a) As used in this section:
(1) “Fiscal integrity” means the education service cooperative's ability to comply completely, accurately, and timely with financial management, accounting, auditing, and reporting procedures required by state law and rule or federal law and regulations; and
(2) “Material” means that the act, omission, or violation jeopardizes the fiscal integrity of the education service cooperative.
(b) Any education service cooperative that meets one (1) or more of the following criteria may be identified by the Division of Elementary and Secondary Education as being in fiscal distress upon final approval of the State Board of Education:
(1)(A) A declining balance that jeopardizes the fiscal integrity of the education service cooperative.
(B) The division shall not use capital outlay expenditures from the education service cooperative's balance for facilities to identify the education service cooperative as being in fiscal distress;
(2) A material failure to meet the education service cooperative's obligation to maintain the education service cooperative's facilities;
(3) A material violation of local, state, or federal law, state rule, or federal regulations relating to:
(A) Fire, health, or safety codes;
(B) Construction codes;
(C) Audit requirements; or
(D) Procurement, bidding, and purchasing requirements;
(4) A material failure to provide timely and accurate legally required financial reports to the division, Arkansas Legislative Audit, the General Assembly, or the Internal Revenue Service;
(5) A material failure to maintain sufficient funds to cover payroll, salary, employment benefits, or legal tax obligations;
(6) A material default on any debt obligation;
(7) A material dis
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1027
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1027. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1029. Fiscal distress actions.
(a) To address the identified areas of fiscal distress of an education service cooperative, the Division of Elementary and Secondary Education shall:
(1)(A) Conduct an on-site evaluation and make recommendations regarding the staffing and fiscal practices of the education service cooperative.
(B) The recommendations of the division are binding on the education service cooperative;
(2) Every six (6) months during which the education service cooperative is classified as being in fiscal distress, submit to the State Board of Education a written evaluation on the fiscal status of the education service cooperative;
(3) Monitor the fiscal operations and accounts of the education service cooperative; and
(4) Require the education service cooperative administrative staff and employees to obtain instruction or training in areas of fiscal concern for the education service cooperative.
(b) The division also may take one (1) or more of the following actions:
(1) Reorganize the administrative unit of the education service cooperative by:
(A)(i) Removing and replacing the director of the education service cooperative employed under § 6-13-1010.
(ii) An individual appointed to replace the director shall administratively operate the education service cooperative under the supervision and approval of the Commissioner of Elementary and Secondary Education.
(iii) The division may compensate non-division agents operating the education service cooperative from the education service cooperative's funding; and
(B) Removing, replacing, or reassigning other administrative staff of the education service cooperative; or
(2) Impose reporting requirements on the education service cooperative.
(c) Within two (2) consecutive school years
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1029
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1029. This identifies an authority to review, not proof of applicability.