§ 6-21-811 - Academic Facilities Distress Program.
               	 		
6-21-811.    Academic Facilities Distress Program.
    (a)  The  Commission for Arkansas Public School Academic Facilities and  Transportation shall identify a public school or school district as  being in academic facilities distress if the Division of Public School  Academic Facilities and Transportation recommends and the commission  concurs that the public school or school district has engaged in actions  or inactions that result in any of the following:
      (1)  Any  act or violation determined by the division to jeopardize any academic  facility used by a public school or school district, including, but not  limited to:
            (A)  Material  failure to properly maintain academic facilities in accordance with this  subchapter and rules adopted by the commission;
            (B)  Material violation of local, state, or federal fire, health, or safety code provisions or laws;
            (C)  Material violation of applicable building code provisions or law;
            (D)  Material failure to provide timely and accurate facilities master plans to the division;
            (E)  Material  failure to comply with state law governing purchasing, bid  requirements, or school-construction-related laws or rules in relation  to academic facilities projects;
            (F)  Material default on any school district debt obligation; or
            (G)  Material  failure to plan and progress satisfactorily toward accomplishing the  priorities established by the division and the approved school  district's facilities master plan; and
      (2)  Any  other condition of an academic facility or facilities in a public  school or school district that is determined by the division to have a  detrimental impact on educational services provided by that public  school or school district.
(b)  The  division shall provide written notice, via certified mail, return  receipt requested, to the president of the school board of directors and  the superintendent of the public school or school district identified  as being in facilities distress.
(c)    (1)  By  August 31 of each year, the division shall notify the superintendent of  a school district if the division is aware the school district has  experienced two (2) or more indicators of facilities distress in one (1)  school year that the division deems to be nonmaterial but that without  intervention could place the district in facilities distress.
      (2)  The  superintendent of a school district shall report to the division if the  superintendent is aware the school district has experienced two (2) or  more indicators of facilities distress in one (1) school year that the  superintendent deems to be nonmaterial but that without intervention  could place the district in facilities distress.
      (3)    (A)  The division and the superintendent shall review all data related to the nonmaterial indicators of facilities distress.
            (B)    (i)  Within  thirty (30) days of the division's determination that the school  district may be experiencing facilities distress at a nonmaterial level,  the division shall provide a notice to the school district's  superintendent and board of directors that:
                        (a)  Describes  the nonmaterial indicators of facilities distress that could have a  detrimental impact on educational services provided by the affected  public school or the school district if not addressed; and
                        (b)  Identifies the support available from the division to address each nonmaterial indicator of facilities distress.
                  (ii)  The  board of directors shall place on the agenda for the next regularly  scheduled meeting of the board of directors a discussion of the notice  of nonmaterial indicators of facilities distress.
      (4)    (A)  If  any condition of an academic facility raises a significant health or  safety issue, the superintendent of the school district where the  academic facility is located or the person responsible for the  management of the academic facility shall immediately notify the  division and the board of directors of the school district.
            (B)  The  board of directors shall place on the agenda for the next regularly  scheduled meeting of the board of directors a discussion of the notice  of the significant health or safety issue.
(d)    (1)  A  public school or school district identified as being in facilities  distress shall develop a facilities improvement plan within thirty (30)  days from the date of receipt of the notice and promptly submit the  facilities improvement plan to the division for review and approval.
      (2)  A  public school or school district shall review and revise its facilities  improvement plan on a periodic basis as determined by the division and  submit the updated facilities improvement plan to the division in order  for the division to determine whether the public school or school  district is correcting its deficient areas of practice regarding  academic facilities.
      (3)  A school district shall use facilities improvement plans as necessary to supplement and update its facilities master plan.
(e)    (1)  Every  two (2) years beginning February 1, 2009, the division shall determine  whether the progress of each school district complies with the school  district's facilities master plan and shall notify the school district  of any noncompliance.
      (2)  Beginning  on February 1, 2008, and each biennium thereafter, the division shall  review the applications made for the Academic Facilities Partnership  Program established under    6-20-2507, to identify any school district  that did not apply for state funding for necessary facilities to meet  adequacy requirements and shall notify the school district of any  deficiencies.
      (3)  Within thirty  (30) days of receiving the notice provided under subdivision (e)(1) or  (e)(2) of this section, the school district shall submit a facilities  improvement plan to the division for its review and approval that states  how the school district will address the noncompliance issues contained  in the notice.
      (4)  If the  division does not approve the facilities improvement plan submitted by  the school district, it shall identify the school district as being in  facilities distress.
      (5)  A school  district may appeal the decision of the division under this subsection  (e) to the commission pursuant to the procedures established by the  commission;
(f)    (1)    (A)  Within  ten (10) days of a school district's failure to pass a millage required  to fulfill its obligations under the school district's facilities  master plan, the division shall provide written notice to the school  district of the date, time, and place for a conference with the school  district at which the division will:
                  (i)  Determine whether as a result of the failed millage there are facilities issues relating to:
                        (a)  Immediate repairs under    6-20-2504(b)(4);
                        (b)  The presence and number of suitability needs of public school academic facilities, which shall be defined by rule; or
                        (c)  Immediate need for academic facilities to meet student growth; and
                  (ii)  Thoroughly  discuss and explain the sanctions and requirements that are available  to the commission if the school district is identified as being in  facilities distress under this section and    6-21-812.
            (B)  The  written notice shall be provided via certified mail to the president of  the school board of directors and the superintendent of the school  district.
            (C)  The commission shall establish rules for the implementation of this subdivision (f)(1).
      (2)    (A)  If  the commission determines that there are immediate repairs, growth, or  suitability issues that require expedited attention, the commission may  direct the school district to conduct a special election to vote on a  millage increase.
            (B)    (i)  The division and the school district shall agree upon the issues to be submitted for a vote in the special election.
                  (ii)  The special election may not include any issues other than the issues that are mutually agreed upon.
            (C)  The special election shall be held on a date that is:
                  (i)  Mutually agreed upon by the division and the school district; and
                  (ii)  Not  later than seven (7) months from the date of the election at which the  millage failed unless it is necessary to extend the date beyond seven  (7) months because of restrictions on the number of elections that may  be held within a calendar year.
            (D)  If  within ninety (90) days from the notice provided to the school district  under subdivision (f)(1)(A) of this section the school district has not  set an election date, the division shall identify the school district  as being in facilities distress.
            (E)    (i)  If  the school district is able to finance the immediate repairs, growth,  and suitability improvements without the necessity of a special election  on increasing its millage, the school district may enter into an  agreement with the division to fund its improvements separately, which  shall include an implementation timeframe.
                  (ii)  The  division shall identify the school district as being in facilities  distress for failure to implement the agreed upon plan for immediate  repairs, growth, and suitability improvements within the timeframe  specified in the agreement.
(g)  When  a school district is identified by the commission to be in facilities  distress, the division may with the approval of the commission:
      (1)    (A)  Provide  on-site technical evaluation and assistance and make recommendations to  the school district superintendent regarding the care and maintenance  of any academic facility in the school district.
            (B)  Any  school district identified as being in facilities distress status shall  accept on-site technical evaluation and assistance from the division.
            (C)  The recommendations of the division are binding on the school district, the superintendent, and the school board of directors;
      (2)  Require the superintendent to relinquish all administrative authority with respect to the school district;
      (3)    (A)  Appoint  an individual in place of the superintendent to administratively  operate the school district under the supervision and approval of the  Commissioner of Education, or his or her designee.
            (B)  The  division may direct the school district to compensate from school  district funds the individual appointed to operate the school district;
      (4)  Suspend  or remove any or all members of the current board of directors and call  for the election of a new school board of directors for the school  district, in which case the school district shall reimburse the county  board of election commissioners for election costs as otherwise required  by law;
      (5)  Require the school  district to operate without a local school board of directors under the  supervision of the local superintendent;
      (6)  Require  the school district to operate without a local school board of  directors under the supervision of an individual or panel appointed by  the Commissioner of Education;
      (7)  Return  the administration of the school district to the former board of  directors or place the administration of the school district in a newly  elected school board of directors;
      (8)  Require school district staff and employees to attend training in areas of concern for the public school or school district;
      (9)    (A)  Require  a school district to cease all expenditures related to activities not  described as part of an adequate education in    6-20-2302 and place  money that would have been spent on the activities into an academic  facilities escrow account to be released only upon approval by the  division for use in conjunction with a local academic facilities  project.
            (B)  School districts  shall include a clause addressing this contingency in all contracts with  personnel who are involved with activities not described as part of an  adequate education;
      (10)  Notify  the public school or school district in writing that the deficiencies  regarding academic facilities shall be corrected within a time period  designated by the division;
      (11)    (A)  Petition  the State Board of Education at any time for the consolidation,  annexation, or reconstitution of a school district in facilities  distress or take other appropriate action as allowed by this subchapter  in order to secure and protect the best interest of the educational  resources of the state or to provide for the best interest of students  in the school district.
            (B)  The state board may approve the petition or take other appropriate action as allowed by this subchapter.
            (C)  The  state board shall consolidate, annex, or reconstitute any school  district that fails to remove itself from the classification of a school  district in facilities distress within two (2) consecutive school years  of receipt of notice of identification of facilities distress status by  the division;
      (12)  Correct the  failure of a school district to complete its agreed plan or to pass the  millage in the special election under subdivision (f)(2) of this section  by contracting for and completing the necessary improvements under the  agreed plan;
      (13)    (A)  If  the division recommends and the commission concurs that the academic  facilities in the public school district in facilities distress are  inadequate to provide an adequate education, the state board may  dissolve the school district and transfer students to public schools in  other public school districts.
            (B)  The state board shall assign the public school district's territory, property, and debt; and
      (14)  Take  any other action allowed by law that is deemed necessary to assist a  public school or school district in removing criteria of facilities  distress.
(h)  No school district  identified by the division as being in facilities distress may incur any  debt without the prior written approval of the commission.
(i)  A  public school or school district in facilities distress may petition  the commission for removal from facilities distress status only after  the division has certified in writing that the public school or school  district has corrected all criteria for being classified as in  facilities distress and has complied with all division recommendations  and requirements for removal from facilities distress status.
(j)  The  division shall submit a written evaluation on the status of each school  district in facilities distress to the commission and the state board  at least one (1) time every six (6) months.
(k)    (1)    (A)  If  a school district is identified as being in facilities distress and has  immediate repairs, growth, or suitability improvement issues, the  division, in addition to any other remedy under this section and     6-21-812, may provide a loan to the school district to be repaid from  any funds available that are not required to provide an adequate  education.
            (B)    (i)  Funds available that are not required to provide an adequate education include:
                        (a)  Fund  balances and any cash on hand that are not part of foundation funding  or categorical funding under    6-20-2305 and are not otherwise required  to provide an adequate education for students in the public school  district; and
                        (b)  Revenues that are not obligated on bonds.
                  (ii)  Funds  remaining after the annual payment on a bond obligation are included in  funds that are not required to provide an adequate education.
      (2)  The public school district shall repay the loan on the schedule determined by the division.
(l)  The commission in conjunction with the Academic Facilities Oversight Committee shall:
      (1)  Reexamine the role and function of the State Facility Assessment of 2004;
      (2)  Assess  the progress made by the state in the mandates of the Arkansas Supreme  Court in Lake View School District No. 25 v. Huckabee, No. 01-836; and
      (3)  Make needed changes in the implementation of the academic facilities program by modifying the commission's rules.