(a)

1. (1) A public school or school district classified by the Commission for Arkansas Public School Academic Facilities and Transportation as being in facilities distress shall:

   1. (A) Develop a facilities improvement plan within thirty (30) days from the date of classification; and
   2. (B) Promptly submit the plan to the Division of Public School Academic Facilities and Transportation for review and approval.
2. (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. (3) A school district shall use the facilities improvement plan as necessary to supplement and update its facilities master plan.

(b) 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 to the commission and school district that the public school or school district:

1. (1) Has corrected all criteria that caused the classification of facilities distress; and
2. (2) Has complied with all division recommendations and requirements for removal from facilities distress status.

(d) Every two (2) years, the division shall:

1. (1) Determine whether the progress of each school district complies with the school district’s facilities master plan and shall notify a school district of any noncompliance; and
2. (2) Review the applications made for the Academic Facilities Partnership Program 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.

(h)

1. (1) If a school district is classified as being in facilities distress and has immediate repairs, growth, or suitability improvement issues, the division, in addition to any other remedy under this part and Arkansas Code §§ 6-21-811 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.

2. (2) Funds available that are not required to provide an adequate education include:

   1. (A) Fund balances and any cash on hand that are not:

(i) Part of foundation funding or categorical funding under Arkansas Code § 6-20-2305; and

1. (ii) Otherwise required to provide an adequate education for students in the public school district;

   1. (B) Revenues that are not obligated on bonds; and
   2. (C) Funds remaining after the annual payment on a bond obligation are included in funds that are not required to provide an adequate education.
2. (3) The public school district shall repay the loan on the schedule determined by the division.