1. (a) The State Board of Education shall be authorized to dissolve any education service cooperative upon the request of a majority of its school district boards of directors or upon the recommendation of the evaluation committee provided for in:

   1. (1) Arkansas Code §§ 6-13-1021 – 6-13-1022;
   2. (2) 6 CAR § 1-122; and
   3. (3) This section.
2. (b) A dissolved education service cooperative’s area shall be assigned to one (1) or more adjacent education service cooperatives, the provisions of Arkansas Code § 6-13-1003 and 6 CAR § 1-105 notwithstanding, with the dissolved education service cooperative’s base funding apportioned to all remaining education service cooperatives in the state.
3. (c) After payment of debts, the assets of a dissolved education service cooperative shall be distributed to the school districts in its service area based on each school district’s three-quarter average daily membership for the immediately preceding school year.

4. (d)

   1. (1) Any active grant funds held by the dissolved education service cooperative shall be distributed to the Commissioner of Elementary and Secondary Education in accordance with:

      1. (A) The grant requirements;
      2. (B) State and federal law; and
      3. (C) The best interests of the school districts within the boundaries of the dissolved cooperative.
   2. (2) To the extent allowed by the grant requirement or by law, active grant funds may be transferred to one (1) or more public school districts or education service cooperatives or to the Department of Education for future administration of the grant funds.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained the following at the end of the section: "Source: Ark. Code Ann. § 6-13-1022".