reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 12 - DISTRICT BONDS (§§ 6-20-1201 — 6-20-1229) › Section 6-20-1226 - Advancements for bond payments by county treasurer before settlement date

In all school districts of the State of Arkansas that have voted a bond issue that calls for the payment of interest and principal before the date of settlement by the county treasurer with the school district of funds collected under a levy made by the school district for the purpose of retiring principal and interest of bond issue, the county treasurer is authorized to advance to the school district before the date of settlement and on the date payment is due a sum sufficient for the payment of principal and interest accruing under the bond issue out of the moneys held by him or her for the school district.
Acts 1951, No. 388, § 1; A.S.A. 1947, § 80-1130.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 12 - DISTRICT BONDS (§§ 6-20-1201 — 6-20-1229) › Section 6-20-1227 - [Repealed]

Repealed by Act 2015, No. 846,§ 24, eff. 7/22/2015.
Acts 1968 (1st Ex. Sess.), No. 67, § 5; A.S.A. 1947, § 80-1132.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 12 - DISTRICT BONDS (§§ 6-20-1201 — 6-20-1229) › Section 6-20-1228 - Issuance of bonds - Refunding of bonded indebtedness - Maintenance and operation of schools

(a)
(1)
Any school district of this state is authorized to sell bonds in an amount not to exceed an amount equal to the principal amount of the bonds refunded as originally issued for the purposes of refunding all or any part of its bonded indebtedness outstanding at the time of passage of this act, and of providing funds for maintaining and operating schools in the school district.
(2)
Such bonds may be sold with the privilege of conversion as provided in this subchapter.
(b)
Issuance of the bonds shall be subject to the approval of the State Board of Education and to the approval by the electors of the school district of a continuing annual tax for retirement of the bonds.
Acts 1991, No. 689, § 1; 1993, No. 481, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 12 - DISTRICT BONDS (§§ 6-20-1201 — 6-20-1229) › Section 6-20-1229 - Issuance of second-lien commercial bonds - Definitions

(a)
As used in this section:
(1)
"Issue", "issuance", or some variety thereof means the date upon which a second-lien bond is actually sold; and
(2)
"Second-lien bond" means a commercial bond issued under the authority set forth in §
26-80-106
.
(b)
All second-lien bonds issued by school districts shall have semiannual interest payments.
Amended by Act 2017, No. 935,§ 2, eff. 8/1/2017.
Acts 2001, No. 1220, § 18; 2005, No. 2121, § 15.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 14 - STATE AID FOR CONSTRUCTION (§§ 6-20-1401 — 6-20-1408) › Section 6-20-1401 - Rules

The Commission for Arkansas Public School Academic Facilities and Transportation may make rules consistent with this subchapter that the commission determines are necessary to accomplish the purposes of this subchapter.
Acts 1949, No. 230, § 8; A.S.A. 1947, § 80-3508; Acts 2009, No. 1473, § 8.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1501 - Title

This subchapter shall be known as the "Public Elementary and Secondary School Insurance Act".
Acts 1973, No. 380, § 1; A.S.A. 1947, § 80-3509; Acts 2003 (2nd Ex. Sess.), No. 78, § 2.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1502 - Establishment of insurance system

The purpose of this subchapter is to establish and maintain a system of insurance for the public elementary and secondary schools, education service cooperatives, and open-enrollment public charter schools of Arkansas.
Acts 1973, No. 380, § 5; A.S.A. 1947, § 80-3513; Acts 2003 (2nd Ex. Sess.), No. 78, § 3.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1503 - State Insurance Department - Powers and duties regarding insurance for public elementary and secondary schools

It shall be the power and duty of the State Insurance Department to:
(1)
Adopt such rules as may be necessary to provide for the insuring of public elementary and secondary school, education service cooperative, and open-enrollment public charter school property within the State of Arkansas;
(2)
Administer the Public School Insurance Trust Fund;
(3)
Delegate responsibilities in connection with the administration of this subchapter to the Director of the Risk Management Division and the staff of the department;
(4)
(A)
Establish and administer a program of insurance to cover buildings and contents of public school districts, education service cooperatives, and open-enrollment public charter schools of this state that have elected to participate in a multischool insurance program.
(B)
The programs shall be in accordance with recognized and established insurance practices;
(5)
Establish, and from time to time modify, the premium rates to be charged for the various risks;
(6)
Specify the form for insurance policies and other forms required for the purposes of this subchapter;
(7)
(A)
Purchase insurance in compliance with all state purchasing laws from insurance companies authorized to do business in this state in keeping with recognized principles of good risk management.
(B)
The director shall prescribe, from time to time, rules for placing and handling the insurance;
(8)
Employ necessary adjusters, engineers, appraisers, and other personnel required in the administration of this subchapter;
(9)
Engage in a program of prevention loss control to assist the various public schools in improving and minimizing potential insurance losses;
(10)
Perform all additional powers and duties necessary to maintain sound insurance underwriting practices recognized by good risk management;
(11)
Periodically review the status of the fund and the adequacy of insurance premium rates and compare these rates with rates for comparable risks for private insurance companies;
(12)
Confer with superintendents and boards of directors of school districts, the governing boards of education service cooperatives, and open-enrollment public charter schools concerning insurance practices of the various school districts, education service cooperatives, and open-enrollment public charter schools;
(13)
Promulgate rules for the administration of the state public school insurance program; and
(14)
Perform other duties that will expedite the operation of the Public Elementary and Secondary School Insurance Program.
Amended by Act 2019, No. 315,§ 289, eff. 7/24/2019.
Acts 1973, No. 380, §§ 3, 5, 6; A.S.A. 1947, §§ 80-3511, 80-3513, 80-3514; Acts 2003 (2nd Ex. Sess.), No. 78, § 4; 2007, No. 617, § 15; 2007, No. 738, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1505 - Information to be furnished

(a)
The Director of the Risk Management Division of the State Insurance Department, with the approval of the Insurance Commissioner, shall require school district superintendents, county school supervisors, clerks, or governing boards of the education service cooperatives or open-enrollment public charter schools to furnish the State Insurance Department a complete list showing the location of every school building sixty (60) days before entering the program and upon written request by the department.
(b)
The department shall have authority to require each school district, education service cooperative, or open-enrollment public charter school to furnish a complete report of its insurance program, including the expiration dates of its contracts, a history of losses, or any additional information required by the insurer.
Acts 1973, No. 380, § 7; A.S.A. 1947, § 80-3515; Acts 2003 (2nd Ex. Sess.), No. 78, § 6; 2007, No. 617, § 16.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1506 - Finding of uninsurability - Effect

(a)
(1)
The State Insurance Department is authorized to maintain an inspection and engineering service and a training program designed to reduce the hazards in public school buildings insured under this program.
(2)
The department shall have authority to cancel or not renew insurance on any school property if the property is deemed no longer insurable.
(3)
The department may refuse to insure property when it determines that the property does not meet program guidelines.
(b)
In carrying out its duties pursuant to this section, the department may request and the affected school district shall provide any information requested for a determination concerning the reasons for the denial, nonrenewal, or cancellation of insurance coverage.
Acts 1973, No. 380, § 8; A.S.A. 1947, § 80-3516; Acts 2003 (2nd Ex. Sess.), No. 78, § 7.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1507 - Premium rate and payment

(a)
The premium rate shall be actuarially sound.
(b)
School districts, education service cooperatives, or open-enrollment public charter schools shall make payment of premium when demand is made as scheduled in the contract.
(c)
(1)
Any school district, education service cooperative, or open-enrollment public charter school which does not pay the premium when due shall be charged a rate of interest at five percent (5%) per annum on all payments due and unpaid on the policy issued.
(2)
The State Insurance Department may cancel insurance coverage for school districts, education service cooperatives, or open-enrollment public charter schools that fail to pay the premium due within thirty (30) days.
(3)
The department shall give thirty (30) days' notice before any cancellation for nonpayment.
(d)
Rules of the department shall include such items as payment of premiums and other pertinent items with reference to the premium rate, but the rules shall not be more stringent than practices of commercial companies writing similar insurance in Arkansas.
(e)
Premiums collected by the Public Elementary and Secondary School Insurance Program shall continue to be subject to any premium tax now or hereafter levied for the support of the firemen's pension and relief fund.
Amended by Act 2019, No. 315,§ 290, eff. 7/24/2019.
Acts 1973, No. 380, § 9; A.S.A. 1947, § 80-3517; Acts 2003 (2nd Ex. Sess.), No. 78, § 8; 2007, No. 617, § 17.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1508 - Appraisal and payment of losses

(a)
In the event of loss of school district, education service cooperative, or open-enrollment public charter school property under the Public Elementary and Secondary School Insurance Program, the Public School Insurance Trust Fund shall pay the loss as specified in the contract.
(b)
When an agreement as to the extent of loss or damage cannot be reached between the State Insurance Department and officials having charge of the property, the amount of the loss or damage shall be determined by three (3) appraisers, one (1) to be named by the department, one (1) by the school district, education service cooperative, or open-enrollment public charter school governing board, and a third to be selected by the two (2) appointed appraisers, all of whom shall be disinterested persons and qualified from experience to appraise and value such property.
(c)
If a third appraiser is not agreed upon within thirty (30) days, the Insurance Commissioner shall have authority to appoint a third appraiser.
(d)
It shall be the duty of the department to coordinate, facilitate, and expedite details in connection with responsibilities outlined in this section.
(e)
The department is granted authority to contract for services with licensed real estate brokers in order to expedite and facilitate the proper operation of the program.
Acts 1973, No. 380, § 10; A.S.A. 1947, § 80-3518; Acts 2003 (2nd Ex. Sess.), No. 78, § 9; 2007, No. 617, § 18; 2007, No. 738, § 2.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1509 - Effect of federal assistance

Any school district, education service cooperative, or open-enrollment public charter school that may receive financial assistance from the United States Government as a result of federal legislation pertaining to disasters shall not be adversely affected as a result of any moneys due from the Public School Insurance Trust Fund because of coverage by the Public Elementary and Secondary School Insurance Program.
Acts 1973, No. 380, § 12; A.S.A. 1947, § 80-3520; Acts 2003 (2nd Ex. Sess.), No. 78, § 10; 2007, No. 617, § 19; 2007, No. 738, § 3.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1511 - Permanent Insurance Reserve Fund

The General Assembly shall provide a Permanent Insurance Reserve Fund of not less than two million dollars ($2,000,000) on a loan basis for the purpose of initiating the Public Elementary and Secondary School Insurance Program.
Acts 1973, No. 380, § 13; A.S.A. 1947, § 80-3521.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1512 - Disposition of funds

All funds received by the State Insurance Department as premiums, adjustments, earnings, and the like, as provided in this subchapter, shall be deposited into the Public School Insurance Trust Fund and used for the following purposes, listed in a descending order of priority:
(1)
To defray administrative costs;
(2)
To pay claims; and
(3)
To maintain the Public School Insurance Trust Fund.
Acts 1973, No. 380, § 13; A.S.A. 1947, § 80-3521; Acts 2003 (2nd Ex. Sess.), No. 78, § 11; 2007, No. 738, § 13.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1513 - Bond obligations

(a)
The State Insurance Department is authorized and directed to meet legal requirements with reference to coverage on buildings as a result of school district, education service cooperative, or open-enrollment public charter school bond obligations.
(b)
The specific intent of this section is to ensure that policies issued by the Public Elementary and Secondary School Insurance Program include provisions required by existing school district bond contracts.
Acts 1973, No. 380, § 14; A.S.A. 1947, § 80-3522; Acts 2003 (2nd Ex. Sess.), No. 78, § 12; 2007, No. 617, § 20.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1514 - Investments

(a)
The State Insurance Department is authorized to invest funds of the Public Elementary and Secondary School Insurance Program.
(b)
Funds of the program may be invested and reinvested as the Insurance Commissioner may determine.
(c)
Moneys invested and interest earned thereon shall be administered as program funds.
(d)
Moneys deposited to the program shall not be subject to any deduction, tax, levy, or any other type of assessment.
Acts 1973, No. 380, § 15; A.S.A. 1947, § 80-3523; Acts 2003 (2nd Ex. Sess.), No. 78, § 13.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 15 - INSURANCE ACT (§§ 6-20-1501 — 6-20-1515) › Section 6-20-1515 - Annual reports

The State Insurance Department shall report annually to the Governor and the General Assembly on the status of the Public Elementary and Secondary School Insurance Program. The report shall include a detailed statement of investments and earnings.
Acts 1973, No. 380, § 11; A.S.A. 1947, § 80-3519; Acts 2003 (2nd Ex. Sess.), No. 78, § 14.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1801 - Filing of audit reports

(a)
(1)
Unless a shorter period is prescribed by law or rule, all school districts' annual audits not conducted by Arkansas Legislative Audit shall be completed and filed with the Division of Elementary and Secondary Education and Arkansas Legislative Audit within nine (9) months following the end of each fiscal year.
(2)
At the request of the school district, the division may grant an extension of up to ninety (90) days on the deadline under this subsection.
(b)
(1)
All school district contracts for audit services with private certified public accountants shall contain a provision requiring completion of the audit and filing of the audit reports by the auditor with the division and Arkansas Legislative Audit within nine (9) months following the end of each fiscal year.
(2)
At the request of the school district, the division may grant an extension of up to ninety (90) days on the deadline under this subsection.
(c)
Arkansas Legislative Audit shall annually provide the division a list of school districts audited by Arkansas Legislative Audit and update the division on any changes throughout the year.
(d)
(1)
If the division has identified a school as being in fiscal distress by June 30 of any year, the annual audit of that school district shall be completed and filed with the division and the Legislative Joint Auditing Committee within six (6) months following the end of each fiscal year.
(2)
If the Legislative Joint Auditing Committee determines that circumstances warrant, the Legislative Joint Auditing Committee may extend the time to file the audit report of a fiscally distressed school district up to an additional ninety (90) days.
Amended by Act 2019, No. 315,§ 291, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1623, eff. 7/1/2019.
Acts 1999, No. 1563, § 1; 2003 (2nd Ex. Sess.), No. 40, § 1; Acts 2003 (2nd Ex. Sess.), No. 63, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1802 - Fiscal distress for failure to file

(a)
Any school district failing to file an audit report required by §
6-20-1801
within the nine-month time period or within the time period under any extension granted by the Division of Elementary and Secondary Education shall automatically be considered by the division to be in fiscal distress.
(b)
By January 31 of each year, the division, by certified mail, shall notify any school district failing to file the required audit report that the school district is considered in fiscal distress.
Amended by Act 2019, No. 910,§ 1624, eff. 7/1/2019.
Acts 1999, No. 1563, § 2; Acts 2003 (2nd Ex. Sess.), No. 63, § 2.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1803 - Questionable audit reports

(a)
If the Division of Elementary and Secondary Education or the Legislative Joint Auditing Committee is concerned that a particular audit may be substandard or seriously questionable with respect to applicable professional auditing standards, the division or the Legislative Joint Auditing Committee may file a complaint on the audit report to the Arkansas State Board of Public Accountancy.
(b)
The board shall review all audit reports and working papers filed with the board under this subchapter. The board shall determine whether the report is in general conformity with applicable professional standards and state laws and rules and shall take appropriate action.
Amended by Act 2019, No. 315,§ 292, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1625, eff. 7/1/2019.
Acts 1999, No. 1563, § 3.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1804 - List of ineligible accountants

(a)
The Division of Elementary and Secondary Education shall maintain a list of accountants or accounting firms ineligible to conduct school district audits. Accountants or accounting firms placed on the ineligibility list by the division shall be ineligible to conduct school audits for a period determined by the division but which shall not exceed a five-year period from the end of the fiscal year for which the audit report was contracted to be prepared.
(b)
Before entering into contracts for audit services, school districts shall inquire with the division which accountants are ineligible to conduct public school audits.
(c)
The division may place accountants or accounting firms on the ineligibility list for any of the following reasons:
(1)
If, in the opinion of the division or the Legislative Joint Auditing Committee, a school district audit report is not filed within the nine-month time period or within the time period under any extension granted by the division with the division and Arkansas Legislative Audit as required by §
6-20-1801
because of neglect or fault of the certified public accountant or accounting firm;
(2)
If the Quality Review Committee of the Arkansas State Board of Public Accountancy reports to the division and the Legislative Joint Auditing Committee that a school district audit report shows evidence of lack of general conformity with applicable professional standards or state laws and rules or evidence that the report is substandard or seriously questionable; or
(3)
Any other compelling reason that the division believes justifies placing the accountant or accounting firm on the ineligibility list.
Amended by Act 2019, No. 315,§ 293, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1626, eff. 7/1/2019.
Acts 1999, No. 1563, § 4; Acts 2003 (2nd Ex. Sess.), No. 63, § 3.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1805 - Training requirements for bookkeepers

(a)
The State Board of Education shall establish by rules appropriate training and continuing education requirements for individuals whose job responsibilities include preparing a budget or classifying, recording, or reporting receipts or expenditures of a school or school district.
(b)
The state board shall establish rules to assure the proficiency of school employees or other individuals to properly classify, record, and report the fiscal transactions of schools or school districts.
(c)
If the state board determines that a school or school district is not properly recording or reporting the fiscal transactions or budget of the school district, the superintendent and school district board of directors may be required to appear before the state board to explain why the school or school district has not complied with the fiscal recording and reporting requirements.
Amended by Act 2019, No. 315,§ 294, eff. 7/24/2019.
Acts 2003 (2nd Ex. Sess.), No. 40, § 2.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 18 - AUDITS (§§ 6-20-1801 — 6-20-1806) › Section 6-20-1806 - Services outside the scope of practice of auditors - Prohibited activities

A licensed certified public accountant or a licensed accountant in public practice shall not provide the following nonaudit services to a school district, education service cooperative, or open-enrollment public charter school if the licensed certified public accountant or the licensed accountant or his or her firm is also the auditor of the school district, education service cooperative, or open-enrollment public charter school:
(1)
Accounting and bookkeeping services;
(2)
Financial information systems design and implementation;
(3)
Appraisal, valuation, and actuarial services;
(4)
Internal audit outsourcing services;
(5)
Management or human resources functions;
(6)
Broker or dealer, investment advisor, or investment banking services; and
(7)
Legal and expert services unrelated to the audit.
Acts 2005, No. 1244, § 1; 2007, No. 617, § 21.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1901 - Title

This subchapter shall be known as and may be cited as the "Arkansas Fiscal Assessment and Accountability Program".
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1902 - Purpose

The purpose of this subchapter shall be to improve Arkansas public school districts' financial practices and use of resources by establishing a:
(1)
System by which the Division of Elementary and Secondary Education shall review the financial management practices of public school districts, including without limitation identifying best financial management practices;
(2)
Program by which the division shall identify, assess, and address public school districts in any phase of fiscal distress that includes without limitation identification of early indicators of fiscal distress and early intervention in public school districts that experience early indicators of fiscal distress; and
(3)
System for providing continuous fiscal support and monitoring to public school districts that have been returned to local control after being identified as in fiscal distress.
Amended by Act 2019, No. 929,§ 1, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1627, eff. 7/1/2019.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1903 - Definitions

As used in this subchapter:
(1)
"Annexation" means the joining of an affected school district or part of the school district with a receiving district pursuant to §
6-13-1401
;
(2)
"Consolidation" means the joining of two (2) or more school districts or parts of the districts to create a new single school district pursuant to §
6-13-1401
;
(3)
"Fiscal distress status" means a public school district determined by the Division of Elementary and Secondary Education and classified by the State Board of Education as being placed in fiscal distress status pursuant to this subchapter;
(4)
"Fiscal integrity" means to comply with financial management, accounting, auditing, and reporting procedures and facilities management procedures as required by state laws and rules and federal laws and regulations in a forthright and timely manner;
(5)
"Reconstitution" means the reorganization of the administrative unit or the governing school district board of directors of a school district, including, but not limited to, the replacement or removal of a current superintendent or the removal or replacement of a current school district board of directors, or both;
(6)
"School district" means a public school district created or established pursuant to this title; and
(7)
"State board" means the State Board of Education.
Amended by Act 2019, No. 315,§ 295, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1629, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1628, eff. 7/1/2019.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1905 - Notification and appeal

(a)
(1)
(A)
The Division of Elementary and Secondary Education shall provide written notice, via certified mail, return receipt requested, to the president of the board of directors and the superintendent of each public school district identified as being in fiscal distress.
(B)
The division shall provide the notice required under this subdivision (a)(1) on or before June 30 of each year.
(2)
(A)
At any time after June 30, the division may identify a public school district as being in fiscal distress if the division discovers that a fiscal condition of a public school district negatively impacts the continuation of educational services by the public school district.
(B)
The division immediately shall provide the same notice required under subdivision (a)(1)(A) of this section to the public school district identified under this subdivision (a)(2).
(b)
Any school district identified in fiscal distress status may appeal to the State Board of Education by filing a written appeal with the office of the Commissioner of Elementary and Secondary Education by certified mail, return receipt requested, within thirty (30) days of receipt of notice of identified fiscal distress status from the division.
(c)
The state board shall hear the appeal within sixty (60) days of receipt of the written notice of appeal from the school district.
(d)
The written appeal shall state in clear terms the reason why the school district should not be classified as in fiscal distress.
(e)
Notwithstanding any appeal rights in this subchapter, no appeal shall stay the division's authority to take action to protect the fiscal integrity of any school district identified as in fiscal distress.
(f)
The decision of the state board shall be a final order, and there is no further right of appeal except that the school district may appeal to Pulaski County Circuit Court pursuant to the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
Amended by Act 2019, No. 929,§ 4, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1633, eff. 7/1/2019.
Acts 2003, No. 1467, § 18; 2007, No. 741, § 2; 2009, No. 1469, § 11.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1906 - Classification of fiscal distress status

(a)
Those school districts identified by the Division of Elementary and Secondary Education as being in fiscal distress shall be classified as school districts in fiscal distress upon final determination by the State Board of Education.
(b)
Any school district classified as in fiscal distress shall be required to publish at least one (1) time for two (2) consecutive weeks in a newspaper of general circulation in the school district the school district's classification as a school district in fiscal distress and the reasons why the school district was classified as being in fiscal distress.
(c)
The provisions of subsections (a) and (b) of this section are effective after the school district's appeal rights have been exhausted.
Amended by Act 2019, No. 910,§ 1634, eff. 7/1/2019.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1907 - Debt issuance

No school district identified in fiscal distress may incur any debt without the prior written approval of the Division of Elementary and Secondary Education.
Amended by Act 2019, No. 910,§ 1635, eff. 7/1/2019.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1910 - State board actions

(a)
After a public hearing, the State Board of Education shall consolidate, annex, or reconstitute the school district in fiscal distress to another school district or school districts upon a majority vote of a quorum of the members of the state board as permitted or required by this subchapter.
(b)
The state board has exclusive jurisdiction to determine the boundary lines of the receiving or resulting school district and to allocate assets and liabilities of the school district.
(c)
The decision of the state board shall be final with no further right of appeal except that a school district may appeal to Pulaski County Circuit Court pursuant to the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
(d)
(1)
If, by the end of the fifth school year following the school district's classification of fiscal distress status, the school district in fiscal distress has not corrected all issues that caused the classification of fiscal distress, the state board, after a public hearing, shall consolidate, annex, or reconstitute the school district under this section.
(2)
The state board may grant additional time for a public school or school district to remove itself from fiscal 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 fiscal distress during the relevant time period due to impossibility caused by external forces beyond the control of the public school or school district.
(e)
Nothing in this section shall be construed to prevent the Division of Elementary and Secondary Education or the state board from taking any of the actions listed in §
6-20-1909
or this section at any time to address a school district in fiscal distress.
Amended by Act 2019, No. 929,§ 7, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1644, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1643, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1642, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1641, eff. 7/1/2019.
Amended by Act 2017, No. 745,§ 30, eff. 8/1/2017.
Amended by Act 2013, No. 600,§ 16, eff. 4/4/2013.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1911 - Rules

(a)
The Division of Elementary and Secondary Education shall promulgate rules as necessary to identify, evaluate, assist, and address school districts in fiscal distress.
(b)
The division may promulgate rules as necessary to administer this subchapter.
Amended by Act 2019, No. 315,§ 296, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1645, eff. 7/1/2019.
Acts 2003, No. 1467, § 18.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1912 - Fiscal support and monitoring

(a)
When a public school district is returned to local control or removed from fiscal distress status, the Division of Elementary and Secondary Education:
(1)
Shall monitor the fiscal operations and accounts of the public school district for a period of three (3) years;
(2)
Shall provide support to the public school district regarding maintaining fiscal integrity and best financial management practices; and
(3)
May impose various reporting requirements on the public school district.
(b)
A public school district that is returned to local control shall:
(1)
Comply with all monitoring and reporting requirements established by the division and the State Board of Education, including without limitation review of the public school district's budget and approval for staffing;
(2)
Not incur any debt without prior written approval of the division; and
(3)
Use Arkansas Legislative Audit to conduct an annual audit.
Added by Act 2019, No. 929,§ 8, eff. 7/24/2019.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1913 - General business manager - Definition

(a)
As used in this subchapter, "general business manager" means a chief financial officer or business manager, however the position is titled, who:
(1)
Is an employee of a public school district or has contracted to perform financial services;
(2)
Is responsible for the fiscal operations of a public school district; and
(3)
Performs duties under the direction of a superintendent of a public school district.
(b)
(1)
A general business manager for a public school district shall meet the minimum qualifications established by Division of Elementary and Secondary Education rules.
(2)
These division rules shall ensure minimum qualifications that support the implementation of best financial management practices for public school districts.
(c)
A general business manager who was hired before July 31, 2007, is exempt from subsection (b) of this section.
Amended by Act 2021, No. 774,§ 6, eff. 7/28/2021.
Added by Act 2019, No. 929,§ 8, eff. 7/24/2019.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 19 - ARKANSAS FISCAL ASSESSMENT AND ACCOUNTABILITY PROGRAM (§§ 6-20-1901 — 6-20-1914) › Section 6-20-1914 - Review of financial management practices

(a)
The Division of Elementary and Secondary Education shall implement a system for reviewing the financial management practices of public school districts to determine the support that is needed by public school districts.
(b)
The system established under subsection (a) of this section shall address without limitation a public school district's:
(1)
Use of resources;
(2)
Financial accountability; and
(3)
Personnel systems and benefits management.
Added by Act 2019, No. 929,§ 8, eff. 7/24/2019.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 20 - TRACKING AND ACCOUNTING OF INTERSCHOOL ATHLETIC PROGRAM FUNDS (§§ 6-20-2001 — 6-20-2004) › Section 6-20-2001 - Purpose

The purpose of this subchapter is to track and account for the amount of state funds that is used to support interschool athletic programs in public schools.
Acts 2003 (2nd Ex. Sess.), No. 52, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 20 - TRACKING AND ACCOUNTING OF INTERSCHOOL ATHLETIC PROGRAM FUNDS (§§ 6-20-2001 — 6-20-2004) › Section 6-20-2002 - Definitions

As used in this subchapter:
(1)
"Athletic expenditures" means all direct expenses related to interschool athletic programs, including without limitation:
(A)
The proportion of salaries or supplemental pay for staff for or related to interschool athletic programs or organized physical activity courses as provided under §
6-16-137
, or both;
(B)
All fringe benefits, including without limitation medical and dental insurance, workers' compensation, pension plans, and any other costs associated with employment of staff for interschool athletic programs;
(C)
Travel, including bus-related operation and maintenance, to and from any interschool athletic program event for students, faculty, spirit groups, band, or patrons of the school district;
(D)
Equipment;
(E)
Meals;
(F)
Supplies; and
(G)
Medical expenses;
(2)
"Classroom teacher" means an individual who is required to hold a teaching license from the Division of Elementary and Secondary Education and who is engaged directly in instruction with students in a classroom setting for more than seventy percent (70%) of the individual's contracted time;
(3)
"Interschool athletic program" means:
(A)
Any athletic program that is organized primarily for the purpose of competing with other schools, public or private; or
(B)
Any athletic program that is subject to regulation by the Arkansas Activities Association; and
(4)
"State funds" means all money derived from state revenues, specifically including, but not limited to, distributions from the Division of Elementary and Secondary Education Public School Fund Account and ad valorem property taxes distributed to a public school or school district.
Amended by Act 2019, No. 910,§ 1647, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1646, eff. 7/1/2019.
Amended by Act 2013, No. 1358,§ 1, eff. 8/16/2013.
Acts 2003 (2nd Ex. Sess.), No. 52, § 1; 2005, No. 2151, § 19; 2005, No. 2256, § 1; 2007, No. 255, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 20 - TRACKING AND ACCOUNTING OF INTERSCHOOL ATHLETIC PROGRAM FUNDS (§§ 6-20-2001 — 6-20-2004) › Section 6-20-2003 - Reporting by local school districts

(a)
During the appropriate Arkansas Public School Computer Network reporting cycle each year, a school district shall submit appropriate data to the Division of Elementary and Secondary Education documenting the school district's total athletic expenditures paid from state funds.
(b)
Annually, each school district shall submit as part of the budget of expenditures and receipts required under §
6-20-2202
a budget for the total athletic expenditures to be paid from state funds for the budgeted year.
Amended by Act 2019, No. 910,§ 1648, eff. 7/1/2019.
Amended by Act 2013, No. 1358,§ 2, eff. 8/16/2013.
Acts 2003 (2nd Ex. Sess.), No. 52, § 1; 2007, No. 255, § 2.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 20 - TRACKING AND ACCOUNTING OF INTERSCHOOL ATHLETIC PROGRAM FUNDS (§§ 6-20-2001 — 6-20-2004) › Section 6-20-2004 - Rules

The State Board of Education may promulgate any rules necessary for the implementation of this subchapter.
Amended by Act 2013, No. 1358,§ 3, eff. 8/16/2013.
Acts 2003 (2nd Ex. Sess.), No. 52, § 1.
Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 20 - FINANCES (§§ 6-20-101 — 6-20-2704) › Subchapter 21 - TRACKING AND ACCOUNTING OF INTERSCHOOL SCHOLASTIC ACTIVITY FUNDS (§§ 6-20-2101 — 6-20-2104) › Section 6-20-2101 - Purpose

The purpose of this subchapter is to track and account for the amount of state funds that is used to support interschool scholastic activities in public schools.
Acts 2003 (2nd Ex. Sess.), No. 52, § 2.