6.01 The Division shall provide written notice, via certified mail, return receipt requested, to the president of the school board of directors and the superintendent of each school district identified as being in fiscal distress.
6.01.1 The Division shall provide the notice on or before June 30 of each year.
6.01.2 At any time after June 30, the Division may identify a school district as being in fiscal distress if the Division discovers that a fiscal condition of a school district negatively impacts the continuation of educational services by the school district. If this identification occurs, the Division shall immediately provide the same notice described in section 6.01 of these rules.
6.02 Any school district identified in fiscal distress status may appeal to the State Board by filing a written appeal with the Office of the Commissioner of the Division, by certified mail return receipt requested, within thirty (30) days of receipt of notice of being identified in fiscal distress status from the Division.
6.03 The State Board shall hear the appeal within sixty (60) days of receipt of the written notice of appeal from the school district.
6.04 The written appeal shall state in clear terms the reason why the school should not be classified as in fiscal distress.
6.05 Notwithstanding any appeal rights in Ark. Code Ann. § 6-20-1901 et seq. and these rules, 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.
6.06 The following procedures shall apply to State Board hearings involving school districts that appeal a fiscal distress identification by the Division:
6.06.1 All persons wishing to testify before the State Board shall first be placed under oath by the Chairperson of the State Board.
6.06.2 The Division shall have up to thirty (30) minutes to present its case to the State Board as to why the school district identified as a district in fiscal distress should be classified as a school district in fiscal distress. The Chairperson of the State Board may allow additional time if necessary.
6.06.3 The appealing school district shall have up to thirty (30) minutes to present its case to the State Board as to why the school district should not be classified as a school district in fiscal distress. The Chairperson of the State Board may allow additional time if necessary.
6.06.4 The State Board may pose questions to any party at any time during the hearing.
6.06.5 The State Board shall then discuss, deliberate and vote upon the matter of the classification of fiscal distress.
6.06.6 If it deems necessary, the State Board may take the matter under advisement and announce its decision at a later date, provided that all discussions, deliberations and votes upon the matter take place in a public hearing.
6.06.7 The State Board shall issue a written order concerning the matter.
6.07 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, Ark. Code Ann. § 25-15-201 et seq.
