- (a) 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.
(b) The provisions of Arkansas Code § 6-13-1411 and this section 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:
- (1) The Quality Education Act of 2003, Arkansas Code § 6-15-201 et seq.;
- (2) The Arkansas Educational Support and Accountability Act, Arkansas Code § 6-15-2901 et seq.;
- (3) The Arkansas Fiscal Assessment and Accountability Program, Arkansas Code § 6-20-1901 et seq.; or
- (4) The Arkansas Public School Academic Facilities Program Act, Arkansas Code § 6-21-801 et seq.