(a) Any school district with fewer than three hundred fifty (350) students may voluntarily agree to administratively consolidate with or be annexed to another school district or districts in accordance with the requirements and limitations of:

1. (1) Arkansas Code § 6-13-1603; and
2. (2) This section.

(b)

1. (1) Any school district with fewer than three hundred fifty (350) students choosing to voluntarily administratively consolidate or annex shall:

   1. (A) Submit a petition for approval to the State Board of Education by March 1; and
   2. (B) Set forth the terms of the administrative consolidation or annexation agreement in the petition.
2. (2) If the petition is approved by the state board, the administrative consolidation or annexation shall be completed by May 1, to be effective July 1.

(d) The state board shall not deny the petition for voluntary administrative consolidation or annexation of any two (2) or more school districts unless:

1. (1) The provisions contained in the articles of administrative consolidation or annexation would violate state or federal law; or
2. (2) The voluntary consolidation or annexation would not contribute to the betterment of the education of students in the school district.

(f) In the administratively consolidated or annexed school districts created under Arkansas Code § 6-13-1601 et seq. and this section, the ad valorem tax rate shall be determined as set forth under:

1. (1) Arkansas Code § 6-13-1409; and
2. (2) 6 CAR § 231-205.

(i) Any school district not designated as being in academic or fiscal distress for the current school year and previous two (2) school years that administratively receives by consolidation or annexation a school district designated by the state board as being in academic or fiscal distress at the time of consolidation or annexation shall not be subject to academic or fiscal distress sanctions for a period of three (3) years from the effective date of consolidation unless:

1. (1) The school district fails to meet minimum teacher salary requirements; or
2. (2) The school district fails to comply with the Rules Governing Standards for Accreditation of Arkansas Public Schools and School Districts, 6 CAR pt. 61, issued by the division.

(j) Noncontiguous school districts may voluntarily consolidate if the facilities and physical plant of each school district are:

1. (1) Within the same county, and the state board approves the administrative consolidation; or

2. (2) Not within the same county, and the state board approves the administrative consolidation or administrative annexation and finds that the administrative consolidation or administrative annexation will:

   1. (A) Result in the overall improvement in the educational benefit to students in all of the school districts involved; or
   2. (B) Provide a significant advantage in transportation costs or service to all of the school districts involved.

(l) The provisions of Arkansas Code §§ 6-13-1415 – 6-13-1417 and 6 CAR §§ 231-208 – 231-210 shall govern the board of directors of each resulting district or receiving district created under:

1. (1) Arkansas Code § 6-13-1601 et seq.; and
2. (2) This section.