1. (a) The Department of Education shall certify in writing to the education service cooperative that the education service cooperative may be removed from fiscal distress status when the department determines that the education service cooperative has:

   1. (1) Corrected all of the criteria under Arkansas Code § 6-13-1027 and 6 CAR § 1-127 that led to the classification of fiscal distress; and
   2. (2) Complied with all department recommendations and requirements for removal from fiscal distress status.

2. (b)

   1. (1) Within thirty (30) days of receiving the department’s certification under Arkansas Code § 6-13-1030(a) and subsection (a) of this section, an education service cooperative may petition the State Board of Education in writing for removal from fiscal distress.
   2. (2) An education service cooperative may not petition the state board for removal from fiscal distress status before the department makes the certification under Arkansas Code § 6-13-1030(a) and subsection (a) of this section.
3. (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.

4. (d)

   1. (1) If an education service cooperative fails to meet the department’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. (A) Reorganize the administrative unit of the education service cooperative under Arkansas Code § 6-13-1029 and 6 CAR § 1-129; or
      2. (B) 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 Arkansas Code § 6-13-1030 or this section due to impossibility caused by external forces beyond the education service cooperative’s control.
   2. (2) 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.

5. (e) Within fifteen (15) days of making a decision under Arkansas Code § 6-13-1030 and this section, the state board shall:

   1. (1) Notify the education service cooperative of its decision; and
   2. (2) Include with the notice a copy of a written finding issued under Arkansas Code § 6-13-1030 and subdivision (d)(1)(B) of this section.

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. § 6-13-1030".