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Arkansas General Assembly· HB 2002Died in House Committee at Sine Die adjournment.

An act TO AMEND THE EDUCATION SERVICE COOPERATIVE ACT 10 OF 1985, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas           A Bill
2 95th General Assembly

3 Regular Session, 2025                                  HOUSE BILL 2002

4

5 By: Representative Wardlaw

6

7

8                             For An Act To Be Entitled

9   AN ACT TO AMEND THE EDUCATION SERVICE COOPERATIVE ACT

10  OF 1985; TO REMOVE BOUNDARIES ESTABLISHED FOR

11  EDUCATION SERVICE COOPERATIVES; TO REQUIRE AN

12  EDUCATION SERVICE COOPERATIVE BOARD OF DIRECTORS TO

13  ESTABLISH AN EXECUTIVE SUBCOMMITTEE; TO REQUIRE EACH

14  EDUCATION SERVICE COOPERATIVE TO ESTABLISH A

15  STRATEGIC PLAN; TO REPEAL THE REQUIREMENT THAT EACH

16  EDUCATION SERVICE COOPERATIVE ESTABLISH A TEACHER

17  CENTER; TO AUTHORIZE THE STATE BOARD OF EDUCATION TO

18  TAKE ACTION AGAINST AN EDUCATION SERVICE COOPERATIVE

19  DIRECTOR UNDER CERTAIN CONDITIONS; TO REQUIRE THE

20  DIVISION OF ELEMENTARY AND SECONDARY EDUCATION TO

21  DEVELOP A FUNDING FORMULA FOR EDUCATION SERVICE

22  COOPERATIVES; TO AUTHORIZE THE STATE BOARD OF

23  EDUCATION TO TAKE CERTAIN ACTIONS AGAINST AN

24  EDUCATION SERVICE COOPERATIVE THAT RECEIVES AN "F"

25  RATING FOR A CERTAIN NUMBER OF YEARS; TO AMEND THE

26  CONDITIONS UNDER WHICH THE STATE BOARD OF EDUCATION

27  MAY DISSOLVE AN EDUCATION SERVICE COOPERATIVE; AND TO

28  REQUIRE THE ESTABLISHMENT OF AN EDUCATION SERVICE

29  COOPERATIVE RATING SYSTEM.

30

31

32                            Subtitle

33                       TO AMEND THE EDUCATION SERVICE

34                       COOPERATIVE ACT OF 1985.

35

36 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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1

2   SECTION 1. Arkansas Code � 6-13-1002 is amended to read as follows:

3   6-13-1002. Education service cooperatives established -- Functions.

4   (a)(1) The State Board of Education is authorized to may establish a

5 statewide system of not more than fifteen (15) multicounty education service

6 cooperatives of school districts.

7             (2) By the 2026-2027 school year, the Division of Elementary and

8 Secondary Education shall assign each public school district and open-

9 enrollment public charter school to an education service cooperative within a

10 specific region based on regional availability or specialty services provided

11 by the education service cooperative.

12            (2)(3) Such Each education service cooperatives cooperative

13 shall be intermediate:

14            (A) Intermediate service units in the state's elementary

15 and secondary education system; and as such shall be eligible

16            (B) Eligible to receive and expend funds from state and

17 federal governments, public school districts, and other public or private

18 sources.

19  (b) Education service cooperatives established by this subchapter will

20 shall provide support and assistance to public school districts which choose

21 to use them assistance in:

22            (1) Meeting To meet or exceeding exceed accreditation standards

23 and equalizing optimize educational opportunities;

24            (2) Using By using educational resources more effectively

25 through cooperation among school districts; and

26            (3) Promoting In the promotion of coordination between public

27 school districts and the Division of Elementary and Secondary Education

28 division in order to provide services which that are consistent with the

29 needs identified by public school districts and the educational priorities of

30 the state as established by the General Assembly or the state board;

31            (4) By coordinating with the division to provide oversight and

32 monitoring of public school districts and open-enrollment public charter

33 schools to ensure compliance with state education requirements in statute and

34 rule; and

35            (5) In school improvement efforts.

36

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1   SECTION 2. Arkansas Code � 6-13-1003 is repealed.

2   6-13-1003. Boundaries -- Adjustments.

3   (a) The State Board of Education shall establish tentative boundaries

4 for the system of education service cooperatives authorized by this

5 subchapter.

6   (b) These education service cooperatives shall be established so that:

7              (1) They include at least three (3) but no more than nine (9)

8 counties;

9              (2) They include at least ten (10) but no more than thirty-five

10 (35) school districts;

11             (3) They include at least twenty thousand (20,000) pupils in

12 kindergarten through grade twelve (K-12) average daily membership;

13             (4) They include at least one (1) postsecondary education

14 institution; and

15             (5) There is no more than fifty (50) miles distance or

16 approximately one (1) hour driving time to the area's main offices for ninety

17 percent (90%) of the school districts.

18  (c)(1) The state board may make adjustments in the boundaries when

19 criteria such as minimum average daily membership and maximum driving

20 distances conflict.

21             (2) However, no more than four (4) of the areas formed may

22 contain fewer than twenty thousand (20,000) students.

23             (3) In no case shall any education service cooperative be

24 established with fewer than twelve thousand (12,000) pupils.

25

26  SECTION 3. Arkansas Code � 6-13-1004 is repealed.

27  6-13-1004. Requests for establishment of education service cooperative

28 -- Requirements.

29  (a) Education service cooperatives shall be established when seventy-

30 five percent (75%) of the school districts in a proposed education service

31 cooperative area request such action by formal resolutions filed by the

32 school district boards of directors with the Commissioner of Elementary and

33 Secondary Education.

34  (b) Each resolution shall, in addition to requesting establishment of

35 an education service cooperative, indicate by name or position that school

36 district's representative on the board of directors of the proposed education

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1 service cooperative.

2   (c) Requests must be filed by seventy-five percent (75%) of the school

3 district boards of directors by May 1 if an education service cooperative is

4 to be established for the following school year.

5

6   SECTION 4. Arkansas Code � 6-13-1005 is amended to read as follows:

7   6-13-1005. Alteration of boundaries.

8   (a) The State Board of Education, upon the request of one (1) or more

9 school district boards of directors, and consistent with the provisions of �

10 6-13-1003, may alter the boundaries of a proposed or operational education

11 service cooperative when it determines such alteration to be in the best

12 interest of the school districts in the education service cooperatives

13 involved In order to change membership within an education service

14 cooperative, a public school district or an open-enrollment public charter

15 school may petition:

16          (1)(A) Another education service cooperative for membership in

17 the other education service cooperative.

18          (B) If the board of directors of the education service

19 cooperative petitioned by a public school district or an open-enrollment

20 public charter school under subdivision (a)(1) of this section votes by a

21 majority vote to accept the public school district's or open-enrollment

22 public charter school's petition for membership, the board of directors of

23 the education service cooperative shall notify the State Board of Education

24 of the membership change of the public school district or open-enrollment

25 public charter school; or

26          (2)(A) The state board.

27          (B)(i) The state board shall consider a public school

28 district's or an open-enrollment public charter school's petition for

29 membership in another education service cooperative within forty-five (45)

30 days of receipt of the petition.

31                       (ii) The state board may approve the petition if the

32 state board determines that the approval of the petition is in the best

33 interest of the public school district or open-enrollment public charter

34 school.

35  (b) Consistent with � 6-13-1003, a member of an education service

36 cooperative formed after January 1, 1984, under The Public School Educational

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1 Cooperative Act of 1981, � 6-13-901 et seq., may not be moved to another

2 education service cooperative without that member's consent Each public

3 school district and open-enrollment public charter school may petition to

4 change the status of its membership within an education service cooperative

5 according to the procedures established in subsection (a) of this section

6 only one (1) time every three (3) years.

7

8   SECTION 5. Arkansas Code � 6-13-1006 is amended to read as follows:

9   6-13-1006. Board of directors.

10  (a)(1)(A) Each education service cooperative shall be governed by a

11 board of directors consisting of one (1) representative appointed by a voted

12 resolution of each public school district board of directors within the

13 boundary of the education service cooperative and open-enrollment public

14 charter school governing body that is a member of the education service

15 cooperative during a legally held meeting of the school district board of

16 directors.

17                  (B) The resolution required under subdivision (a)(1)(A) of

18 this section shall be:

19                         (i) Signed signed by both the president and the

20 secretary of a public school district board of directors or an open-

21 enrollment public charter school governing body; and

22                         (ii) Forwarded annually by June 30 to the director of

23 the education service cooperative of which a school district is a member.

24             (2) A representative who is appointed under subdivision

25 (a)(1)(A) of this section may include one (1) of the following:

26                  (A) A superintendent of a public school district within

27 the boundary of an that is a member of the education service cooperative;

28                  (B) An individual employed by a public school district

29 within the boundary of an that is a member of the education service

30 cooperative;

31                  (C) A member of a public school district board of

32 directors within the boundary of an that is a member of the education service

33 cooperative; or

34                  (D) A member of a community that is within the boundary of

35 an a public school district or served by an open-enrollment public charter

36 school that is a member of the education service cooperative.

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1          (b) The board of directors of each established education service

2 cooperative shall:

3              (1) Function as a public corporate body;

4              (2)(A) Meet, except as otherwise provided in � 6-13-1007

5 [repealed], at least eight (8) times each year.

6                    (B)(i) Each meeting of a board of directors of an

7 education service cooperative shall be public.

8                     (ii) The board of directors of each education

9 service cooperative shall make the minutes of each of its meetings publicly

10 available within a reasonable amount of time following the conclusion of a

11 meeting approval of the minutes; and

12             (3) Exercise general fiduciary responsibilities for the

13 education service cooperative with regard to policies and practices which

14 that guard the integrity of the agency and maintain public trust in its

15 operation;

16             (4) Elect an executive subcommittee that shall be comprised of a

17 chair, a vice chair, and a secretary who shall have the authority to:

18                   (A) Oversee proper procedures of the education service

19 cooperative board of directors;

20                   (B) Conduct personnel hearings;

21                   (C) Conduct the evaluation of the education service

22 cooperative; and

23                   (D) Make recommendations to the education service

24 cooperative board of directors; and

25             (5) If the education service cooperative is comprised of more

26 than twelve (12) public school districts and open-enrollment public charter

27 schools, include two (2) additional at-large officer positions to represent

28 the education service cooperative board of directors in personnel matters,

29 including without limitation disciplinary hearings and director evaluations.

30         (c) The first meeting of the board of directors shall be held within

31 thirty (30) days of January 1, 2024.

32         (d) At its first regular meeting, the board of directors shall elect a

33 chair.

34         (e)(1)(c)(1) The term for a representative appointed under this

35 section shall be two (2) years.

36             (2)(A) Each representative shall hold over after the expiration

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1 of his or her term until his or her successor shall be is duly appointed and

2 qualified.

3             (B) A public school district board of directors within the

4 boundary of or an open-enrollment public charter school that is a member of

5 an education service cooperative may reappoint an outgoing representative

6 following the conclusion of his or her two-year term under this subsection.

7             (C) A vacancy shall be filled by the public school

8 district board of directors or open-enrollment public charter school

9 governing body that appointed the representative who previously served in the

10 currently vacant position according to the requirements established by

11 subsection (a) of this section.

12  (f)(d) Responsibilities of the an education service cooperative board

13 of directors, consistent with funds available, shall include without

14 limitation the following:

15            (1) Employment of a director of the education service

16 cooperative who shall serve as the nonvoting executive officer of the

17 education service cooperative board of directors;

18            (2) Establishment of policies and procedures for the operation

19 and management of the education service cooperative, which shall be in

20 written form and shall be filed with the State Board of Education Division of

21 Elementary and Secondary Education;

22            (3) Preparation of an annual budget estimating income and

23 expenditures for programs and services in accordance with procedures

24 established by the state board division;

25            (4) Receipt and expenditure of funds needed to provide programs

26 and services in the area of the education service cooperative;

27            (5) Making such surveys or other inquiries which may be required

28 to determine the service needs of school districts in the education service

29 cooperative and developing plans to provide such needed services;

30            (6) Employment, upon the recommendation of the director of the

31 education service cooperative, of such personnel as may be required to

32 provide the services requested by the public school districts in the area and

33 open-enrollment public charter schools based on the needs of the public

34 school districts and open-enrollment public charter schools and services

35 recommended by the division;

36            (7)(6) Implementation of policies established by the state board

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1 division for the operation of education service cooperatives;

2              (8)(7) Cooperation with other education service cooperatives,

3 public school districts, open-enrollment public charter schools, and other

4 agencies to provide programs and services for children and adults residing

5 within their respective areas;

6              (9)(8) For facilities and buildings as may be required to

7 provide authorized programs and services:

8              (A) Renting, leasing, purchasing, constructing, or

9 receiving by gift;

10             (B) Borrowing from the Revolving Loan Fund under � 6-20-

11 818; or

12             (C) Borrowing from other sources for limited or unusual

13 circumstances upon approval of the Commissioner of Elementary and Secondary

14 Education and the Secretary of the Department of Finance and Administration;

15 and

16             (10)(9) Carrying out such other duties as may be required for

17 the efficient operation of the education service cooperative for which the

18 board of directors is responsible.

19      (g) Members of the board of directors shall be paid per diem and

20 mileage at the rate established by law for attending meetings of the board of

21 directors.

22      (h) In addition to evaluations required under � 6-13-1021, each board

23 of directors of an education service cooperative shall approve the strategic

24 plan that shall be developed by the education service cooperative and verify

25 outcomes submitted to the state Education Service Cooperative Committee,

26 including:

27             (1) Compile Compiling data that demonstrates what, if any,

28 improvement has been achieved with respect to the performance of students

29 enrolled in public school districts within the boundary of and open-

30 enrollment public charter schools that are members of the education service

31 cooperative in light of the programs and services offered by the education

32 service cooperative; and

33             (2) Annually by July 1, provide providing the data compiled

34 under subdivision (h)(1) (g)(1) of this section to each public school

35 district within the boundary of and open-enrollment public charter school

36 that is a member of the education service cooperative.

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1   (h) A representative of a public school district or an open-enrollment

2 public charter school under this section shall not be qualified to serve on

3 the executive committee of the board of directors of an education service

4 cooperative if the representative's public school district or open-enrollment

5 public charter school:

6              (1) Has been found to be in violation of the Standards for

7 Accreditation for Arkansas Public Schools and School Districts;

8              (2) Has a letter grade of "F";

9              (3) Is classified as in need of Level 5 -- Intensive support

10 status; or

11             (4) Is identified as in fiscal distress under � 6-13-1027.

12  (i) If there are no representatives of a public school district or an

13 open-enrollment public charter school who are qualified to serve on the

14 executive subcommittee of an education service cooperative board of

15 directors, the state Education Service Cooperative Committee shall appoint a

16 member of the education service cooperative board of directors to preside as

17 chair and exercise the powers of the executive subcommittee.

18

19  SECTION 6. Arkansas Code � 6-13-1008 is repealed.

20  6-13-1008. Teacher center -- Teacher center committee.

21  (a) Each education service cooperative shall establish a teacher

22 center which will provide, consistent with funds available, curriculum

23 development assistance, educational materials, and staff development services

24 to teachers within the school districts in the service area.

25  (b) A teacher center committee, composed of at least one (1)

26 representative from the staff of each school district, shall advise the

27 director and the governing body on the staffing, programs, and operation of

28 the teacher center.

29  (c) The governing body of each cooperative shall determine the initial

30 composition of the teacher center committee to achieve a balance of

31 elementary, middle school or junior high, and high school personnel and

32 assure that at least one-half (�), but not more than two-thirds (), of the

33 members are classroom teachers.

34  (d) All positions on the committee shall be assigned to school

35 districts by lot.

36  (e) Each teacher must be elected by colleagues in his or her school

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1 district, and each administrator or support person shall be appointed by the

2 superintendent.

3   (f) Initial terms shall be determined by lot for equal or nearly equal

4 periods of one (1), two (2), and three (3) years.

5   (g) Thereafter, terms shall be for three (3) years.

6   (h) The committee shall meet at least three (3) times per year.

7   (i) In the last meeting each year, positions represented by expiring

8 terms shall be reassigned by lot.

9

10  SECTION 7. Arkansas Code � 6-13-1009 is amended to read as follows:

11  6-13-1009. Cooperative committees generally.

12  Each education service cooperative may establish other committees of

13 local public school personnel needed to keep its programs responsive to the

14 public schools it serves.

15

16  SECTION 8. Arkansas Code � 6-13-1010 is amended to read as follows:

17  6-13-1010. Director.

18  (a) Each education service cooperative shall be administered by a

19 director who shall perform the following duties:

20             (1) Administer the programs and services of the education

21 service cooperative;

22             (2) Recommend the employment of professional and nonprofessional

23 personnel authorized by the education service cooperative's governing body

24 board of directors;

25             (3) Prepare the budget for adoption by the education service

26 cooperative's governing body board of directors;

27             (4) Direct expenditures of funds within the budget; and

28             (5) Perform other duties as required by the education service

29 cooperative's governing body board of directors and the policies and rules of

30 the State Board of Education;

31             (6) Coordinate with the Division of Elementary and Secondary

32 Education to provide onsite monitoring and support to meet the Standards for

33 Accreditation for Arkansas Public Schools and School Districts and division

34 rules; and

35             (7) Provide guidance and support to public school district

36 superintendents and open-enrollment public charter school directors.

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1          (b) The director of each education service cooperative shall:

2          (1) Hold an administrator's license and meet all requirements to

3 serve as a superintendent of public schools in the State of Arkansas; or

4          (2) Have an equivalent level of education and administrative

5 experience and obtain the approval of the state board.

6          (c) The governing body board of directors of any an education service

7 cooperative may enter into a contract with a director for a period not to

8 exceed three (3) years.

9          (d) Beginning with the 2026-2027 school year, the state board may

10 remove permanently, reassign, or suspend on a temporary basis a director of

11 an education service cooperative pursuant to � 6-13-1022 if the education

12 service cooperative has received an "F" rating for three (3) consecutive

13 years.

14

15         SECTION 9. Arkansas Code � 6-13-1011 is amended to read as follows:

16         6-13-1011. Personnel generally.

17         (a)(1) Personnel of education service cooperatives shall be employed

18 in accordance with laws, rules, and procedures applicable to the school

19 districts of this state An education service cooperative shall establish a

20 salary schedule in accordance with the needs and supports of personnel

21 provided and approved by the board of directors of the education service

22 cooperative.

23         (2) In lieu of a salary schedule, an education service

24 cooperative annually may submit to the Division of Elementary and Secondary

25 Education a complete listing of all employees of the education service

26 cooperative and each employee's position, salary, and benefits.

27         (3) An education service cooperative shall post on its website a

28 complete listing of employees of the education service cooperative and each

29 employee's position, salary, and benefits.

30         (b) License requirements shall be the same as those expected of

31 persons holding similar positions in local public school districts.

32         (c) Termination or contract nonrenewal of education service

33 cooperative personnel shall be as provided by law for the public school

34 district or open-enrollment public charter school personnel.

35

36         SECTION 10. Arkansas Code � 6-13-1012 is amended to read as follows:

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1       6-13-1012. Agency personnel.

2       With the approval of an education service cooperative's governing body

3 board of directors, the Commissioner of Elementary and Secondary Education

4 may assign state educational agency personnel to that the education service

5 cooperative.

6

7       SECTION 11. Arkansas Code � 6-13-1013 is amended to read as follows:

8       6-13-1013. Policies and rules.

9       (a) The State Board of Education shall develop such policies and may

10 promulgate rules as may be needed for the proper administration of this

11 subchapter consistent with the need to support and assist education service

12 cooperatives in the delivery of services to public school districts and open-

13 enrollment public charter schools and with prudent use of available human and

14 financial resources.

15      (b) The policies and If the state board establishes rules under

16 subsection (a) of this section, the rules shall include without limitation:

17      (1) The rules governing the operation Operation of an education

18 service cooperative within appropriate state and federal laws;

19      (2) Guidelines for settling possible disputes between public

20 school districts and open-enrollment public charter schools and in equity or

21 jurisdictional matters relating to shared assets and services;

22      (3) The obligation of an education service cooperative board of

23 directors for overseeing to oversee administrative and program expenditures;

24 and

25      (4) The fiscal distress status of an education service

26 cooperative under �� 6-13-1027 -- 6-13-1031.

27

28      SECTION 12. Arkansas Code � 6-13-1014 is amended to read as follows:

29      6-13-1014. Sharing and coordination of activities -- Liaison.

30      (a) The Division of Elementary and Secondary Education shall encourage

31 sharing and coordination of activities among the education service

32 cooperatives.

33      (b)(1) The Commissioner of Elementary and Secondary Education shall

34 name a person to serve as liaison between the division and the education

35 service cooperatives appoint a state-level Education Service Cooperative

36 Committee to:

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1                (A) Review and approve strategic plans established by

2 education service cooperatives;

3                (B) Measure outcomes of strategic plans established by

4 education service cooperatives;

5                (C) Evaluate education service cooperatives; and

6                (D) Provide recommendations to the State Board of

7 Education based on the evaluation and letter grade of each education service

8 cooperative that receives an "F" rating for three (3) consecutive years.

9   (2) The committee shall consist of at least five (5) members.

10  (3) One (1) member of the committee shall:

11               (A) Serve as a direct liaison between the education

12 service cooperatives and the division; and

13  (c) This liaison shall provide (B) Provide information on resources

14 and programs and be the general contact person in the division for the

15 education service cooperatives.

16  (c) The commissioner may appoint a qualified public employee to serve

17 on the committee as part of his or her job duties.

18  (d) Members of the committee who are not public employees shall serve

19 without compensation but shall be eligible to receive reimbursement for

20 mileage and for expenses not to exceed the rate established for state

21 employees by state travel regulations.

22

23  SECTION 13. Arkansas Code � 6-13-1015 is amended to read as follows:

24  6-13-1015. Liaison with postsecondary institutions.

25  (a) Each education service cooperative, in carrying out its programs

26 and services, shall cooperate with the various state-supported postsecondary

27 educational institutions located within its area.

28  (b) Each such postsecondary institution, within the availability of

29 funds and personnel, shall establish a liaison with the education service

30 cooperatives in its service area and assist them in all practical ways.

31

32  SECTION 14. Arkansas Code � 6-13-1016 is amended to read as follows:

33  6-13-1016. Annual surveys and needs assessments.

34  (a)(1) Each An education service cooperative shall conduct annual

35 surveys and:

36               (A) Support member public school districts and open-

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1 enrollment public charter schools in conducting needs assessments as part of

2 the strategic plan established by the education service cooperatives; and

3   (B)(i) Utilize data and analyses from member public school

4 districts and open-enrollment public charter schools to assist the education

5 service cooperative in its first priority of helping school districts improve

6 their educational programs and practices.

7   (ii) The data and analyses utilized in subdivision

8 (a)(1)(B)(i) of this section shall be included in each education service

9 cooperative's strategic plan.

10  (2) A needs assessment under this section shall be conducted

11 regularly but not less than one (1) time every five (5) years.

12  (b) Such activities may A needs assessment under this section:

13  (1) Shall include an analysis of each member public school

14 district's and open-enrollment public charter school's state summative data,

15 teacher quality, and graduation rates; and

16  (2) May include without limitation written surveys, visits to

17 public schools to meet with local public school personnel, and other means to

18 identify local needs throughout the service area.

19  (c) Each education service cooperative shall work with the Division of

20 Elementary and Secondary Education to conduct statewide surveys which that

21 complement, rather than duplicate, the work of the division.

22  (d) The objective of this section shall be to obtain statewide, area,

23 and local data with as little duplication as possible.

24

25  SECTION 15. Arkansas Code � 6-13-1017 is amended to read as follows:

26  6-13-1017. Programs and services.

27  (a) The programs and services of each education service cooperative

28 shall be based upon the needs of the its member public school districts and

29 open-enrollment public charter schools included in its service area and upon

30 the educational priorities of the state.

31  (b) Each education service cooperative shall provide a teacher center

32 as its basic curriculum and staff development capability.

33  (c) Education service cooperatives may provide shared educational

34 programs and services such as needs assessment and school improvement

35 planning, staff development, curriculum development, itinerant teachers,

36 instructional materials, adult and vocational education, programs for gifted

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1 and talented, education for children with disabilities, alternative

2 educational programs, secondary area vocational centers, community-based

3 education programs, and other services which that the State Board of

4 Education may approve or which that public school districts may support with

5 local funds.

6

7   SECTION 16. Arkansas Code � 6-13-1018 is amended to read as follows:

8   6-13-1018. Participation of local school districts -- Contracts.

9   (a) Each public school district within the service area of the and

10 open-enrollment public charter school that is a member of an education

11 service cooperative shall be entitled to participate in those programs and

12 services which that are fully supported by state funds.

13  (b) A public school district or an open-enrollment public charter

14 school shall not deny or object to an education service cooperative that is

15 monitoring the public school district or open-enrollment public charter

16 school to ensure compliance with state laws and rules.

17  (b)(c) No A public school district or an open-enrollment public

18 charter school shall not be required to participate in any service.

19  (c)(d) School districts A public school district and an open-

20 enrollment public charter school may enter into contracts with the an

21 education service cooperative for services supported partially or completely

22 by local public school funds.

23  (d)(e) School Public school districts and open-enrollment public

24 charter schools within one (1) education service cooperative may also

25 contract for services with another education service cooperative.

26  (f)(1) It shall be the responsibility of a public school district or

27 an open-enrollment public charter school to monitor and evaluate programs

28 provided to the public school district or open-enrollment public charter

29 school by an education service cooperative.

30  (2) Outsourcing personnel or programs to an education service

31 cooperative does not waive the public school district's or open-enrollment

32 public charter school's responsibility to ensure the programs provided by an

33 education service cooperative satisfy applicable laws or rules.

34

35  SECTION 17. Arkansas Code � 6-13-1019 is amended to read as follows:

36  6-13-1019. Funding of education service cooperatives.

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1          (a)(1) The state Division of Elementary and Secondary Education shall

2 provide funds to support the basic structure of the education service

3 cooperatives established under the provisions of this subchapter develop a

4 formula for the distribution of funds allocated for education service

5 cooperatives that includes without limitation a base amount for each

6 education service cooperative and an amount dependent on the number of

7 students in each member public school district and open-enrollment public

8 charter school.

9          (2) The formula developed under subdivision (a)(1) of this

10 section may include additional factors relevant to the composition of an

11 education service cooperative and the services it will provide, as determined

12 by the division.

13         (b) This structure shall include Funds provided to education service

14 cooperatives under this subchapter shall be used to support the basic

15 structure of the education service cooperatives established under the

16 provisions of this subchapter, including:

17         (1) Salaries and fringe benefits for a an education service

18 cooperative director, a teacher center coordinator, and support staff;

19         (2) Costs such as travel, utilities, rent, equipment, and

20 supplies; and

21         (3) Funds to support staff and curriculum development

22 activities; and

23         (4) Funds in an annual amount not to exceed twenty-five thousand

24 dollars ($25,000) for the travel expenses of itinerant personnel employed by

25 the education service cooperative to serve the part-time needs of local

26 school districts.

27         (c) When making a determination regarding additional funding under

28 this section, the division shall:

29         (1) Analyze and consider education service cooperative strategic

30 plans;

31         (2) Ensure funding is targeted to directly support public school

32 district and open-enrollment public charter school improvement or state

33 priorities; and

34         (3) Identify and consider measurable student and educator

35 outcomes for member public school districts and open-enrollment public

36 charter schools that can be used to evaluate the effectiveness of an

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1 education service cooperative.

2   (c)(d) School Public school districts may contract with their

3 education service cooperative for services and part-time personnel to be

4 supported in whole or in part by local funds, but no a public school district

5 shall not be assessed a membership fee.

6   (d)(e) Categorical state funds or federal funds may also be assigned

7 to any an education service cooperative upon approval of its governing body

8 board of directors and under conditions set by the State Board of Education.

9   (e)(f) As a public agency, each education service cooperative shall be

10 eligible to receive and expend public and private funds.

11

12  SECTION 18. Arkansas Code � 6-13-1020 is amended to read as follows:

13  6-13-1020. Policies and procedures -- Expenditures, reports, and

14 audits.

15  (a) On or before August 31 of each year, each Each education service

16 cooperative shall file with the State Board of Education for the state

17 board's approval establish:

18          (1) The policies and procedures of the education service

19 cooperative, including without limitation the board of directors' policies

20 and procedures for overseeing the administrative and program expenditures of

21 the education service cooperative; and

22          (2) A record of the education service cooperative's employment

23 policies and practices for the year that includes without limitation:

24                    (A) The race and sex of each person the education service

25 cooperative employed or terminated during the year;

26                    (B) The race and sex of every person who sought employment

27 with the education service cooperative during the year; and

28                    (C) The name of each person employed by the education

29 service cooperative during the year who is related by blood or marriage to

30 another employee or board member of the education service cooperative; and

31          (3)(A) A report of its receipts and expenditures made in

32 accordance with uniform accounting procedures adopted by the Commissioner of

33 Elementary and Secondary Education.

34                    (B) The report shall contain without limitation:

35                    (i) An itemization of administrative and program

36 expenditures; and

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1                       (ii) The result of the board of directors' review of

2 the expenditures made under its oversight function.

3   (b) The Division of Elementary and Secondary Education may prescribe

4 the forms and procedures for filing the information required by subsection

5 (a) of this section.

6   (c)(b) Each education service cooperative is subject to an annual

7 audit approved by the Legislative Joint Auditing Committee.

8   (d)(1)(A)(c)(1) In an annual meeting of the an education service

9 cooperative board of directors, which must convene between May 15 and July

10 15, each education service cooperative shall report to its constituent member

11 public school districts and open-enrollment public charter schools on the

12 year's operations.

13             (B)(2)(A) The report also shall include information on fiscal

14 distress under � 6-13-1027.

15                  (B) A copy of the report required under this subdivision

16 (c)(1) shall be submitted to the Education Service Cooperative Committee by

17 August 1 each year.

18             (2) The education service cooperative shall supplement its

19 report with written reports to each school district and to the division on a

20 school-by-school, service-by-service accounting basis.

21  (e) Following the end of each fiscal year, any balances in particular

22 service accounts must be apportioned and returned to the schools involved or

23 credited to their accounts for the following year.

24

25  SECTION 19. Arkansas Code � 6-13-1021 is amended to read as follows:

26  6-13-1021. Evaluations -- Performance rating.

27  (a)(1) Each education service cooperative shall be evaluated during

28 the 2012-2013 school year, and at least once within each five-year period, on

29 a schedule established by the Commissioner of Elementary and Secondary

30 Education.

31             (2) All active education service cooperatives must be visited by

32 an evaluation committee of not more than nine (9) persons shall have an on-

33 site visit by a member of the Education Service Cooperative Committee one (1)

34 time each year.

35             (3) An education service cooperative that receives a rating of

36 "D" or "F" shall be evaluated during the year following the receipt of the

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1 "D" or "F" rating.

2   (b)(1)(A) Each evaluation shall include, but not be limited to, an

3 investigation of user satisfaction, without limitation:

4               (1) A review of the strategic plan established by an education

5 service cooperative and outcomes;

6               (2) Member public school district and open-enrollment public

7 charter school student academic outcomes and progress; service

8               (3) Service adequacy, extent of local financial support,;

9               (4) Fiscal stability staff;

10              (5) Staff qualifications,; and performance

11              (6) Performance and administration effectiveness.

12              (B) The final evaluation, including any self-evaluation,

13 shall be included in the annual report to the Division of Elementary and

14 Secondary Education, � 6-13-1020, and made available on the website of the

15 education service cooperative.

16              (2)(A) The evaluation criteria shall be developed

17 collaboratively between the division and the director of each education

18 service cooperative.

19              (B) The evaluation criteria shall be fully implemented by

20 September 1, 2012.

21  (c)(1) The report of this committee shall be filed with the education

22 service cooperative visited, with its constituent school districts, and with

23 the State Board of Education.

24              (2) The state board shall acknowledge receipt of the report and

25 comment on any deficiencies identified in the report that should be corrected

26 for the education service cooperative to remain eligible for base funding.

27              (3) The report shall identify each education service cooperative

28 as being in one (1) of the following category levels, based on the

29 evaluation:

30              (A) "Level 5", education service cooperative of

31 excellence;

32              (B) "Level 4", education service cooperative exceeding

33 standards;

34              (C) "Level 3", education service cooperative meeting

35 standards;

36              (D) "Level 2", education service cooperative on alert; or

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1                   (E) "Level 1", education service cooperative in need of

2 immediate improvement.

3   (d)(1)(c)(1) The intent of this the evaluation procedure under this

4 section is to provide a means for public school districts and open-enrollment

5 public charter schools to express their concerns about the operation of their

6 education service cooperative and to ensure that each education service

7 cooperative remains alert aware of and responsive to the needs of the local

8 public schools it serves.

9             (2) An education service cooperative that receives a performance

10 category level of Level 1 shall be reevaluated during the evaluation cycle

11 the following year.

12            (3) For all education service cooperatives that receive a

13 performance category level of Level 1 for two (2) consecutive years, the

14 division shall:

15                  (A) Withhold base funding to the education service

16 cooperative; or

17                  (B) Take over administration of the education service

18 cooperative An education service cooperative that has a rating of a "D" or an

19 "F" shall develop an improvement plan that is submitted to the committee to

20 take specified actions to improve performance and demonstrate improved

21 outcomes.

22  (d) If an education service cooperative has received a rating of "F"

23 for three (3) consecutive years, the State Board of Education may take one

24 (1) or more of the following remedial measures:

25            (1) Remove, reassign, or suspend the education service

26 cooperative director;

27            (2) Appoint an education service cooperative director who may:

28                  (A) Operate the education service cooperative under the

29 supervision and approval of the commissioner;

30                  (B) Terminate employees of the education service

31 cooperative in accordance with state and federal law; and

32                  (C) Restructure the internal operations of the education

33 service cooperative;

34            (3) Designate the committee as the acting board of directors for

35 the education service cooperative; and

36            (4) Direct the commissioner to assume some or all of the

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1 authority of the education service cooperative board of directors as

2 necessary to operate the education service cooperative.

3   (e) If the state board directs the commissioner to assume the

4 authority of the education service cooperative board of directors under

5 subdivision (d)(4) of this section, it may also direct the commissioner to

6 appoint an advisory board to act in an advisory capacity to the commissioner

7 regarding the powers and duties maintained by the commissioner.

8   (e)(f) The division shall promulgate rules necessary for implementing

9 this section.

10  (f)(1) For each evaluation, the commissioner shall appoint the

11 committee and designate its chairperson.

12  (2) The committee shall include the following from outside the

13 boundary of the education service cooperative being evaluated:

14                  (A) A division staff member;

15                  (B) A teacher;

16                  (C) An administrator;

17                  (D) A college staff member; and

18                  (E) A present or former staff member of an area education

19 service agency.

20  (3) In addition, the committee shall include from within the

21 education service cooperative's area:

22                  (A) A member of the school district board of directors;

23                  (B) A representative of business and industry; and

24                  (C) A school parent from each of two (2) school districts.

25  (4) Each education service cooperative shall pay the reasonable

26 costs of its evaluation.

27

28  SECTION 20. Arkansas Code � 6-13-1022 is amended to read as follows:

29  6-13-1022. Dissolution of education service cooperative.

30  (a) After 1990, the The State Board of Education shall be authorized

31 to may dissolve any an education service cooperative upon the request of a

32 majority of its school district boards of directors or upon the

33 recommendation of the evaluation committee provided for in � 6-13-1021:

34  (1) The request of a majority of its member public school

35 district board of directors or open-enrollment public charter school

36 governing body;

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1             (2) The recommendation of an evaluation conducted pursuant to �

2 6-13-1021;

3             (3) An education service cooperative receiving a rating of "F"

4 for three (3) consecutive years; or

5             (4) An education service cooperative classified as in fiscal

6 distress.

7         (b)(1) A dissolved education service cooperative's area member public

8 school districts and open-enrollment public charter schools shall be assigned

9 to one (1) or more adjacent education service cooperatives, the provisions of

10 � 6-13-1003 notwithstanding, with the dissolved education service

11 cooperative's base funding apportioned to all remaining education service

12 cooperatives in the state.

13            (2) Upon the dissolution of an education service cooperative,

14 the division shall revise the funding formula established under � 6-13-1019.

15        (c) After payment of debts, the assets of a dissolved education

16 service cooperative shall be distributed to the member public school

17 districts and open-enrollment public charter schools in its service area

18 based on each school district's or open-enrollment public charter school's

19 three-quarter average daily membership for the immediately preceding school

20 year.

21

22        SECTION 21. Arkansas Code � 6-13-1023 is amended to read as follows:

23        6-13-1023. Technology training center -- Technology coordinator.

24        (a) Consistent with funds available and upon a majority vote of the

25 members present and voting, the board of directors of each education service

26 cooperative established under this subchapter is authorized to may establish

27 a technology training center and employ a technology coordinator who has

28 demonstrated expertise in computer technology and staff development.

29        (b) The duties of the technology coordinator at such a technology

30 training center established under this section shall include, but not be

31 limited to, without limitation the following:

32            (1) To provide staff development for personnel of member schools

33 public school districts and open-enrollment public charter schools;

34            (2) To assist member schools public school districts and open-

35 enrollment public charter schools with determining technology needs and types

36 of computer hardware and software necessary to meet those needs;

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1          (3) To assist with technology system analysis and local network

2 design;

3          (4) To provide member schools public school districts and open-

4 enrollment public charter schools with information on technology standards

5 and specifications;

6          (5) To develop and coordinate a technology training center

7 located at the education service cooperative;

8          (6) To coordinate information with the Arkansas Public School

9 Computer Network, the Instructional Microcomputer Project for Arkansas

10 Classrooms, and the Governor's Technology Task Force so that member schools

11 public school districts and open-enrollment public charter schools will be

12 informed on technological activity in the state; and

13         (7) To assist with requests for proposal development and bid

14 analysis so that member schools public school districts and open-enrollment

15 public charter schools will be better able to spend funds for technology; and

16         (8) To assist with coordinated efforts to address cyber

17 incidents and develop appropriate response teams.

18

19  SECTION 22. Arkansas Code � 6-13-1025 is repealed.

20  6-13-1025. Mathematics and science resource center -- Mathematics and

21 science coordinator.

22  (a) Consistent with funds available and upon a majority vote of the

23 members present and voting, the board of directors of each education service

24 cooperative established under this subchapter is authorized to establish a

25 mathematics and science resource center and to employ a mathematics and

26 science coordinator who has demonstrated expertise in mathematics and science

27 content, in pedagogy, and in staff development.

28  (b) The duties of the mathematics and science coordinator at the

29 mathematics and science resource center shall include, but not be limited to,

30 the following:

31         (1) Providing mathematics and science staff development for and

32 individual technical assistance to personnel of member schools;

33         (2) Assisting member schools with determining mathematics and

34 science curricula, with instruction, and with assessment of needs and

35 resources necessary to meet those needs;

36         (3) Enhancing curricula and instruction using technology;

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1               (4) Providing member schools with information for curriculum

2 alignment with mathematics and science standards and state frameworks;

3               (5) Developing and coordinating a mathematics and science

4 resource center located at the education service cooperative; and

5               (6) Assisting with the development of requests for proposals for

6 teacher enhancement in mathematics and science.

7

8         SECTION 23. Arkansas Code � 6-13-1027(e), concerning requirements for

9 an education service cooperative that receives a classification of fiscal

10 distress, is amended to read as follows:

11        (e) Within two (2) weeks following the date the education service

12 cooperative receives the final classification by the state board of fiscal

13 distress, the education service cooperative shall:

14              (1) Notify in writing each member public school district in its

15 service area and open-enrollment public charter school that the education

16 service cooperative is classified as being in fiscal distress; and

17              (2) File with the division a fiscal distress plan under � 6-13-

18 1028.

19

20        SECTION 24. Arkansas Code � 6-13-1027(g), concerning an annual report

21 provided by an education service cooperative that receives a classification

22 of fiscal distress, is amended to read as follows:

23        (g) The education service cooperative shall include in the annual

24 report to constituent member public school districts and open-enrollment

25 public charter schools under � 6-13-1020(d) the progress the education

26 service cooperative has made on its fiscal distress plan.

27

28        SECTION 25. Arkansas Code Title 6, Chapter 13, Subchapter 10, is

29 amended to add an additional section to read as follows:

30        6-13-1032. Education service cooperative rating system -- Established.

31        (a) The education service cooperative rating system established by

32 this section shall be a multiple-measures approach that shall include without

33 limitation:

34              (1) Academic achievement on the annual statewide student

35 assessment of all students in member public school districts and open-

36 enrollment public charter schools;

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1      (2) Student growth on the annual statewide student assessment of

2 all students in member public school districts and open-enrollment public

3 charter schools;

4      (3) School-level graduation rate or rates of all students in

5 member public school districts and open-enrollment public charter schools;

6 and

7      (4) Any other measures identified by the Division of Elementary

8 and Secondary Education.

9      (b) An education service cooperative rating shall not be calculated by

10 averaging the school letter grades of member public school districts and

11 open-enrollment public charter schools.

12     (c) Indicators included or considered as part of the education service

13 cooperative rating system shall:

14     (1) Allow for meaningful differentiation in education service

15 cooperative performance; and

16     (2) Be valid, reliable, comparable, and applicable statewide.

17     (d) The State Board of Education may take one (1) or more actions

18 under � 6-13-1021 when an education service cooperative receives a rating of

19 "F" for three (3) consecutive years.

20     (e) The division may promulgate rules to implement this section.

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