(a) Upon consideration of a Division of Public School Academic Facilities and Transportation petition under 6 CAR § 325-107(14), the State Board of Education may:

1. (1) Approve the petition; or
2. (2) Take other appropriate action as allowed by law.

(b)

1. (1) The state board shall consolidate, annex, or reconstitute any school district that fails to remove itself from the classification of a school district in facilities distress within five (5) consecutive school years of classification of facilities distress status.
2. (2) The state board may grant additional time for a public school or school district to remove itself from facilities distress by issuing a written finding supported by a majority of the state board explaining in detail that the public school or school district could not remove itself from facilities distress during the relevant time period due to impossibility caused by external forces beyond the control of the public school or school district.

(c) If the state board elects to dissolve the school district and transfer students to public schools in other public school districts, the state board shall assign the public school district’s:

1. (1) Territory;
2. (2) Property; and
3. (3) Debt.