Stricken language would be deleted from and underlined language would be added to present law. *TNL439* 04/09/2025 8:19:07 AM TNL439 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 2002 3 4 By: Representative Wardlaw 5 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE EDUCATION SERVICE COOPERATIVE ACT 9 OF 1985; TO REMOVE BOUNDARIES ESTABLISHED FOR 10 EDUCATION SERVICE COOPERATIVES; TO REQUIRE AN 11 EDUCATION SERVICE COOPERATIVE BOARD OF DIRECTORS TO 12 ESTABLISH AN EXECUTIVE SUBCOMMITTEE; TO REQUIRE EACH 13 EDUCATION SERVICE COOPERATIVE TO ESTABLISH A 14 STRATEGIC PLAN; TO REPEAL THE REQUIREMENT THAT EACH 15 EDUCATION SERVICE COOPERATIVE ESTABLISH A TEACHER 16 CENTER; TO AUTHORIZE THE STATE BOARD OF EDUCATION TO 17 TAKE ACTION AGAINST AN EDUCATION SERVICE COOPERATIVE 18 DIRECTOR UNDER CERTAIN CONDITIONS; TO REQUIRE THE 19 DIVISION OF ELEMENTARY AND SECONDARY EDUCATION TO 20 DEVELOP A FUNDING FORMULA FOR EDUCATION SERVICE 21 COOPERATIVES; TO AUTHORIZE THE STATE BOARD OF 22 EDUCATION TO TAKE CERTAIN ACTIONS AGAINST AN 23 EDUCATION SERVICE COOPERATIVE THAT RECEIVES AN "F" 24 RATING FOR A CERTAIN NUMBER OF YEARS; TO AMEND THE 25 CONDITIONS UNDER WHICH THE STATE BOARD OF EDUCATION 26 MAY DISSOLVE AN EDUCATION SERVICE COOPERATIVE; AND TO 27 REQUIRE THE ESTABLISHMENT OF AN EDUCATION SERVICE 28 COOPERATIVE RATING SYSTEM. 29 30 31 Subtitle 32 TO AMEND THE EDUCATION SERVICE 33 COOPERATIVE ACT OF 1985. 34 35 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 36 HB2002 2 04/09/2025 8:19:07 AM TNL439 1 SECTION 1. Arkansas Code § 6 -13-1002 is amended to read as follows: 2 6-13-1002. Education service cooperatives established — Functions. 3 (a)(1) The State Board of Education is authorized to may establish a 4 statewide system of not more than fifteen (15) multicounty education service 5 cooperatives of school districts. 6 (2) By the 2026-2027 school year, the Division of Elementary and 7 Secondary Education shall assign each public school district and open -8 enrollment public charter school to an education service cooperative within a 9 specific region based on regional availability or specialty services provided 10 by the education service cooperative. 11 (2)(3) Such Each education service cooperatives cooperative 12 shall be intermediate: 13 (A) Intermediate service units in the state's elementary 14 and secondary education system ; and as such shall be eligible 15 (B) Eligible to receive and expend funds from state and 16 federal governments, public school districts, and other public or private 17 sources. 18 (b) Education service cooperatives established by this subchapter will 19 shall provide support and assistance to public school districts which choose 20 to use them assistance in: 21 (1) Meeting To meet or exceeding exceed accreditation standards 22 and equalizing optimize educational opportunities; 23 (2) Using By using educational resources more effectively 24 through cooperation among school districts; and 25 (3) Promoting In the promotion of coordination between public 26 school districts and the Division of Elementary and Secondary Education 27 division in order to provide services which that are consistent with the 28 needs identified by public school districts and the educational priorities of 29 the state as established by the General Assembly or the state board ; 30 (4) By coordinating with the division to provide oversight and 31 monitoring of public school districts and open -enrollment public charter 32 schools to ensure compliance with state education requirements in statute and 33 rule; and 34 (5) In school improvement efforts . 35 36 HB2002 3 04/09/2025 8:19:07 AM TNL439 SECTION 2. Arkansas Code § 6 -13-1003 is repealed. 1 6-13-1003. Boundaries — Adjustments. 2 (a) The State Board of Education shall establish tentative boundaries 3 for the system of education service cooperatives authorized by this 4 subchapter. 5 (b) These education service cooperatives shall be established so that: 6 (1) They include at least three (3) but no more than nine (9) 7 counties; 8 (2) They include at least ten (10) but no more than thirty -five 9 (35) school districts; 10 (3) They include at least twenty thousand (20,000) pupils in 11 kindergarten through grade twelve (K -12) average daily membership; 12 (4) They include at least one (1) postsecondary education 13 institution; and 14 (5) There is no more than fifty (50) miles distance or 15 approximately one (1) hour driving time to the area's main offices for ninety 16 percent (90%) of the school districts. 17 (c)(1) The state board may make adjustments in the boundaries when 18 criteria such as minimum average daily membership and maximum driving 19 distances conflict. 20 (2) However, no more than four (4) of the areas formed may 21 contain fewer than twenty thousand (20,000) students. 22 (3) In no case shall any education service cooperative be 23 established with fewer than twelve thousand (12,000) pupils. 24 25 SECTION 3. Arkansas Code § 6 -13-1004 is repealed. 26 6-13-1004. Requests for establishment of education service cooperative 27 — Requirements. 28 (a) Education service cooperatives shall be established when seventy -29 five percent (75%) of the school districts in a proposed education service 30 cooperative area request such action by formal resolutions filed by the 31 school district boards of directors with the Commissioner of Elementary and 32 Secondary Education. 33 (b) Each resolution shall, in addition to requesting establishment of 34 an education service cooperative, indicate by name or position that school 35 district's representative on the board of directors of the proposed education 36 HB2002 4 04/09/2025 8:19:07 AM TNL439 service cooperative. 1 (c) Requests must be filed by seventy -five percent (75%) of the school 2 district boards of directors by May 1 if an education service cooperative is 3 to be established for the following school year. 4 5 SECTION 4. Arkansas Code § 6 -13-1005 is amended to read as follows: 6 6-13-1005. Alteration of boundaries. 7 (a) The State Board of Education, upon the request of one (1) or more 8 school district boards of directors, and consistent with the provisions of § 9 6-13-1003, may alter the boundaries of a proposed or operational education 10 service cooperative when it determines such alteration to be in the best 11 interest of the school districts in the education service cooperatives 12 involved In order to change membership within an education service 13 cooperative, a public school district or an open -enrollment public charter 14 school may petition: 15 (1)(A) Another education service cooperative for membership in 16 the other education service cooperative . 17 (B) If the board of directors of the education service 18 cooperative petitioned by a public school district or an open -enrollment 19 public charter school under subdivision (a)(1) of this section votes by a 20 majority vote to accept the public school district's or open -enrollment 21 public charter school's petition for membership, the board of directors of 22 the education service cooperative shall notify the State Board of Education 23 of the membership change of the public school district or open -enrollment 24 public charter school; or 25 (2)(A) The state board. 26 (B)(i) The state board shall consider a public school 27 district's or an open -enrollment public charter school's petition for 28 membership in another education service cooperative within forty -five (45) 29 days of receipt of the petition. 30 (ii) The state board may approve the petition if the 31 state board determines that the approval of the petition is in the best 32 interest of the public school district or open -enrollment public charter 33 school. 34 (b) Consistent with § 6-13-1003, a member of an education service 35 cooperative formed after January 1, 1984, under The Public School Educational 36 HB2002 5 04/09/2025 8:19:07 AM TNL439 Cooperative Act of 1981, § 6 -13-901 et seq., may not be moved to another 1 education service cooperative without that member's consent Each public 2 school district and open -enrollment public charter school may petition to 3 change the status of its membership within an education service cooperative 4 according to the procedures established in subsection (a) of this section 5 only one (1) time every three (3) years . 6 7 SECTION 5. Arkansas Code § 6 -13-1006 is amended to read as follows: 8 6-13-1006. Board of directors. 9 (a)(1)(A) Each education service cooperative shall be governed by a 10 board of directors consisting of one (1) representative appointed by a voted 11 resolution of each public school district board of directors within the 12 boundary of the education service cooperative and open-enrollment public 13 charter school governing body that is a member of the education service 14 cooperative during a legally held meeting of the school district board of 15 directors. 16 (B) The resolution required under subdivision (a)(1)(A) of 17 this section shall be : 18 (i) Signed signed by both the president and the 19 secretary of a public school district board of directors or an open-20 enrollment public charter school governing body ; and 21 (ii) Forwarded annually by June 30 to the director of 22 the education service cooperative of which a school district is a member . 23 (2) A representative who is appointed under subdivision 24 (a)(1)(A) of this section may include one (1) of the following: 25 (A) A superintendent of a public school district within 26 the boundary of an that is a member of the education service cooperative; 27 (B) An individual employed by a public school district 28 within the boundary of an that is a member of the education service 29 cooperative; 30 (C) A member of a public school district board of 31 directors within the boundary of an that is a member of the education service 32 cooperative; or 33 (D) A member of a community that is within the boundary of 34 an a public school district or served by an open -enrollment public charter 35 school that is a member of the education service cooperative. 36 HB2002 6 04/09/2025 8:19:07 AM TNL439 (b) The board of directors of each established education service 1 cooperative shall: 2 (1) Function as a public corporate body; 3 (2)(A) Meet, except as otherwise provided in § 6 -13-1007 4 [repealed], at least eight (8) times each year. 5 (B)(i) Each meeting of a board of directors of an 6 education service cooperative shall be public. 7 (ii) The board of directors of each education 8 service cooperative shall make the minutes of each of its meetings publicly 9 available within a reasonable amount of time following the conclusion of a 10 meeting approval of the minutes ; and 11 (3) Exercise general fiduciary responsibilities for the 12 education service cooperative with regard to policies and practices which 13 that guard the integrity of the agency and maintain public trust in its 14 operation; 15 (4) Elect an executive subcommittee that shall be comprised of a 16 chair, a vice chair, and a secretary who shall have the authority to: 17 (A) Oversee proper procedures of the education service 18 cooperative board of directors; 19 (B) Conduct personnel hearings; 20 (C) Conduct the evaluation of the education service 21 cooperative; and 22 (D) Make recommendations to the education service 23 cooperative board of directors; and 24 (5) If the education service cooperative is comprised of more 25 than twelve (12) public school districts and open -enrollment public charter 26 schools, include two (2) additional at -large officer positions to represent 27 the education service cooperative board of directors in personnel matters, 28 including without limitation disciplinary hearings and director evaluations . 29 (c) The first meeting of the board of directors shall be held within 30 thirty (30) days of January 1, 2024. 31 (d) At its first regular meeting, the board of directors shall elect a 32 chair. 33 (e)(1)(c)(1) The term for a representative appointed under this 34 section shall be two (2) years. 35 (2)(A) Each representative shall hold over after the expiration 36 HB2002 7 04/09/2025 8:19:07 AM TNL439 of his or her term until his or her successor shall be is duly appointed and 1 qualified. 2 (B) A public school district board of directors within the 3 boundary of or an open-enrollment public charter school that is a member of 4 an education service cooperative may reappoint an outgoing representative 5 following the conclusion of his or her two -year term under this subsection. 6 (C) A vacancy shall be filled by the public school 7 district board of directors or open-enrollment public charter school 8 governing body that appointed the representative who previously served in the 9 currently vacant position according to the requirements established by 10 subsection (a) of this section. 11 (f)(d) Responsibilities of the an education service cooperative board 12 of directors, consistent with funds available, shall include without 13 limitation the following: 14 (1) Employment of a director of the education service 15 cooperative who shall serve as the nonvoting executive officer of the 16 education service cooperative board of directors; 17 (2) Establishment of policies and procedures for the operation 18 and management of the education service cooperative, which shall be in 19 written form and shall be filed with the State Board of Education Division of 20 Elementary and Secondary Education ; 21 (3) Preparation of an annual budget estimating income and 22 expenditures for programs and services in accordance with procedures 23 established by the state board division; 24 (4) Receipt and expenditure of funds needed to provide programs 25 and services in the area of the education service cooperative ; 26 (5) Making such surveys or other inquiries which may be required 27 to determine the service needs of school districts in the education service 28 cooperative and developing plans to provide such needed services; 29 (6) Employment, upon the recommendation of the director of the 30 education service cooperative, of such personnel as may be required to 31 provide the services requested by the public school districts in the area and 32 open-enrollment public charter schools based on the needs of the public 33 school districts and open -enrollment public charter schools and services 34 recommended by the division ; 35 (7)(6) Implementation of policies established by the state board 36 HB2002 8 04/09/2025 8:19:07 AM TNL439 division for the operation of education service cooperatives; 1 (8)(7) Cooperation with other education service cooperatives, 2 public school districts, open-enrollment public charter schools, and other 3 agencies to provide programs and services for children and adults residing 4 within their respective areas; 5 (9)(8) For facilities and buildings as may be required to 6 provide authorized programs and services: 7 (A) Renting, leasing, purchasing, constructing, or 8 receiving by gift; 9 (B) Borrowing from the Revolving Loan Fund under § 6 -20-10 818; or 11 (C) Borrowing from other sources for limited or unusual 12 circumstances upon approval of the Commissioner of Elementary and Secondary 13 Education and the Secretary of the Department of Finance and Administration; 14 and 15 (10)(9) Carrying out such other duties as may be required for 16 the efficient operation of the education service cooperative for which the 17 board of directors is responsible. 18 (g) Members of the board of directors shall be paid per diem and 19 mileage at the rate established by law for attending meetings of the board of 20 directors. 21 (h) In addition to evaluations required under § 6 -13-1021, each board 22 of directors of an education service cooperative shall approve the strategic 23 plan that shall be developed by the education service cooperative and verify 24 outcomes submitted to the state Education Service Cooperative Committee, 25 including: 26 (1) Compile Compiling data that demonstrates what, if any, 27 improvement has been achieved with respect to the performance of students 28 enrolled in public school districts within the boundary of and open-29 enrollment public charter schools that are members of the education service 30 cooperative in light of the programs and services offered by the education 31 service cooperative; and 32 (2) Annually by July 1, provide providing the data compiled 33 under subdivision (h)(1) (g)(1) of this section to each public school 34 district within the boundary of and open-enrollment public charter school 35 that is a member of the education service cooperative. 36 HB2002 9 04/09/2025 8:19:07 AM TNL439 (h) A representative of a public school district or an open -enrollment 1 public charter school under this section shall not be qualified to serve on 2 the executive committee of the board of directors of an education service 3 cooperative if the representative's public school district or open -enrollment 4 public charter school: 5 (1) Has been found to be in violation of the Standards for 6 Accreditation for Arkansas Public Schools and School Districts; 7 (2) Has a letter grade of "F"; 8 (3) Is classified as in need of Level 5 — Intensive support 9 status; or 10 (4) Is identified as in fiscal distress under § 6 -13-1027. 11 (i) If there are no representatives of a public school district or an 12 open-enrollment public charter school who are qualified to serve on the 13 executive subcommittee of an education service cooperative board of 14 directors, the state Education Service Cooperative Committee shall appoint a 15 member of the education service cooperative board of directors to preside as 16 chair and exercise the powers of the executive subcommittee. 17 18 SECTION 6. Arkansas Code § 6 -13-1008 is repealed. 19 6-13-1008. Teacher center — Teacher center committee. 20 (a) Each education service cooperative shall establish a teacher 21 center which will provide, consistent with funds available, curriculum 22 development assistance, educational materials, and staff development services 23 to teachers within the school districts in the service area. 24 (b) A teacher center committee, composed of at least one (1) 25 representative from the staff of each school district, shall advise the 26 director and the governing body on the staffing, programs, and operation of 27 the teacher center. 28 (c) The governing body of each cooperative shall determine the initial 29 composition of the teacher center committee to achieve a balance of 30 elementary, middle school or junior high, and high school personnel and 31 assure that at least one -half (½), but not more than two -thirds (⅔), of the 32 members are classroom teachers. 33 (d) All positions on the committee shall be assigned to school 34 districts by lot. 35 (e) Each teacher must be elected by colleagues in his or her school 36 HB2002 10 04/09/2025 8:19:07 AM TNL439 district, and each administrator or support person shall be appointed by the 1 superintendent. 2 (f) Initial terms shall be determined by lot for equal or nearly equal 3 periods of one (1), two (2), and three (3) years. 4 (g) Thereafter, terms shall be for three (3) years. 5 (h) The committee shall meet at least three (3) times per year. 6 (i) In the last meeting each year, positions represented by expiring 7 terms shall be reassigned by lot. 8 9 SECTION 7. Arkansas Code § 6 -13-1009 is amended to read as follows: 10 6-13-1009. Cooperative committees generally. 11 Each education service cooperative may establish other committees of 12 local public school personnel needed to keep its programs responsive to the 13 public schools it serves. 14 15 SECTION 8. Arkansas Code § 6 -13-1010 is amended to read as follows: 16 6-13-1010. Director. 17 (a) Each education service cooperative shall be administered by a 18 director who shall perform the following duties: 19 (1) Administer the programs and services of the education 20 service cooperative; 21 (2) Recommend the employment of professional and nonprofessional 22 personnel authorized by the education service cooperative's governing body 23 board of directors; 24 (3) Prepare the budget for adoption by the education service 25 cooperative's governing body board of directors; 26 (4) Direct expenditures of funds within the budget; and 27 (5) Perform other duties as required by the education service 28 cooperative's governing body board of directors and the policies and rules of 29 the State Board of Education ; 30 (6) Coordinate with the Division of Elementary and Secondary 31 Education to provide onsite monitoring and support to meet the Standards for 32 Accreditation for Arkansas Public Schools and School Districts and division 33 rules; and 34 (7) Provide guidance and support to public school district 35 superintendents and open -enrollment public charter school directors . 36 HB2002 11 04/09/2025 8:19:07 AM TNL439 (b) The director of each education service cooperative shall: 1 (1) Hold an administrator's license and meet all requirements to 2 serve as a superintendent of public schools in the State of Arkansas; or 3 (2) Have an equivalent level of education and administrative 4 experience and obtain the approval of the state board. 5 (c) The governing body board of directors of any an education service 6 cooperative may enter into a contract with a director for a period not to 7 exceed three (3) years. 8 (d) Beginning with the 2026 -2027 school year, the state board may 9 remove permanently, reassign, or suspend on a temporary basis a director of 10 an education service cooperative pursuant to § 6 -13-1022 if the education 11 service cooperative has received an "F" rating for three (3) consecutive 12 years. 13 14 SECTION 9. Arkansas Code § 6 -13-1011 is amended to read as follows: 15 6-13-1011. Personnel generally. 16 (a)(1) Personnel of education service cooperatives shall be employed 17 in accordance with laws, rules, and procedures applicable to the school 18 districts of this state An education service cooperative shall establish a 19 salary schedule in accordance with the needs and supports of personnel 20 provided and approved by the board of directors of the education service 21 cooperative. 22 (2) In lieu of a salary schedule, an education service 23 cooperative annually may submit to the Division of Elementary and Secondary 24 Education a complete listing of all employees of the education service 25 cooperative and each employee's position, salary, and benefits. 26 (3) An education service cooperative shall post on its website a 27 complete listing of employees of the education service cooperative and each 28 employee's position, salary, and benefits. 29 (b) License requirements shall be the same as those expected of 30 persons holding similar positions in local public school districts. 31 (c) Termination or contract nonrenewal of education service 32 cooperative personnel shall be as provided by law for the public school 33 district or open-enrollment public charter school personnel. 34 35 SECTION 10. Arkansas Code § 6 -13-1012 is amended to read as follows: 36 HB2002 12 04/09/2025 8:19:07 AM TNL439 6-13-1012. Agency personnel. 1 With the approval of an education service cooperative's governing body 2 board of directors, the Commissioner of Elementary and Secondary Education 3 may assign state educational agency personnel to that the education service 4 cooperative. 5 6 SECTION 11. Arkansas Code § 6 -13-1013 is amended to read as follows: 7 6-13-1013. Policies and rules. 8 (a) The State Board of Education shall develop such policies and may 9 promulgate rules as may be needed for the proper administration of this 10 subchapter consistent with the need to support and assist education service 11 cooperatives in the delivery of services to public school districts and open-12 enrollment public charter schools and with prudent use of available human and 13 financial resources. 14 (b) The policies and If the state board establishes rules under 15 subsection (a) of this section, the rules shall include without limitation: 16 (1) The rules governing the operation Operation of an education 17 service cooperative within appropriate state and federal laws; 18 (2) Guidelines for settling possible disputes between public 19 school districts and open-enrollment public charter schools and in equity or 20 jurisdictional matters relating to shared assets and services; 21 (3) The obligation of an education service cooperative board of 22 directors for overseeing to oversee administrative and program expenditures; 23 and 24 (4) The fiscal distress status of an education service 25 cooperative under §§ 6 -13-1027 — 6-13-1031. 26 27 SECTION 12. Arkansas Code § 6 -13-1014 is amended to read as follows: 28 6-13-1014. Sharing and coordination of activities — Liaison. 29 (a) The Division of Elementary and Secondary Education shall encourage 30 sharing and coordination of activities among the education service 31 cooperatives. 32 (b)(1) The Commissioner of Elementary and Secondary Education shall 33 name a person to serve as liaison between the division and the education 34 service cooperatives appoint a state-level Education Service Cooperative 35 Committee to: 36 HB2002 13 04/09/2025 8:19:07 AM TNL439 (A) Review and approve strategic plans established by 1 education service cooperatives; 2 (B) Measure outcomes of strategic plans established by 3 education service cooperatives; 4 (C) Evaluate education service cooperatives; and 5 (D) Provide recommendations to the State Board of 6 Education based on the evaluation and letter grade of each education service 7 cooperative that receives an "F" rating for three (3) consecutive years . 8 (2) The committee shall consist of at least five (5) members. 9 (3) One (1) member of the committee shall: 10 (A) Serve as a direct liaison between the education 11 service cooperatives and the division; and 12 (c) This liaison shall provide (B) Provide information on resources 13 and programs and be the general contact person in the division for the 14 education service cooperatives. 15 (c) The commissioner may appoint a qualified public employee to serve 16 on the committee as part of his or her job duties. 17 (d) Members of the committee who are not public employees shall serve 18 without compensation but shall be eligible to receive reimbursement for 19 mileage and for expenses not to exceed the rate established for state 20 employees by state travel regulations. 21 22 SECTION 13. Arkansas Code § 6 -13-1015 is amended to read as follows: 23 6-13-1015. Liaison with postsecondary institutions. 24 (a) Each education service cooperative, in carrying out its programs 25 and services, shall cooperate with the various state -supported postsecondary 26 educational institutions located within its area. 27 (b) Each such postsecondary institution, within the availability of 28 funds and personnel, shall establish a liaison with the education service 29 cooperatives in its service area and assist them in all practical ways. 30 31 SECTION 14. Arkansas Code § 6 -13-1016 is amended to read as follows: 32 6-13-1016. Annual surveys and needs assessments. 33 (a)(1) Each An education service cooperative shall conduct annual 34 surveys and: 35 (A) Support member public school districts and open -36 HB2002 14 04/09/2025 8:19:07 AM TNL439 enrollment public charter schools in conducting needs assessments as part of 1 the strategic plan established by the education service cooperatives; and 2 (B)(i) Utilize data and analyses from member public school 3 districts and open-enrollment public charter schools to assist the education 4 service cooperative in its first priority of helping school districts improve 5 their educational programs and practices. 6 (ii) The data and analyses utilized in subdivision 7 (a)(1)(B)(i) of this section shall be included in each education service 8 cooperative's strategic plan. 9 (2) A needs assessment under this section shall be conducted 10 regularly but not less than one (1) time every five (5) years. 11 (b) Such activities may A needs assessment under this section: 12 (1) Shall include an analysis of each member public school 13 district's and open-enrollment public charter school's state summative data, 14 teacher quality, and graduation rates; and 15 (2) May include without limitation written surveys, visits to 16 public schools to meet with local public school personnel, and other means to 17 identify local needs throughout the service area. 18 (c) Each education service cooperative shall work with the Division of 19 Elementary and Secondary Education to conduct statewide surveys which that 20 complement, rather than duplicate, the work of the division. 21 (d) The objective of this section shall be to obtain statewide, area, 22 and local data with as little duplication as possible. 23 24 SECTION 15. Arkansas Code § 6 -13-1017 is amended to read as follows: 25 6-13-1017. Programs and services. 26 (a) The programs and services of each education service cooperative 27 shall be based upon the needs of the its member public school districts and 28 open-enrollment public charter schools included in its service area and upon 29 the educational priorities of the state. 30 (b) Each education service cooperative shall provide a teacher center 31 as its basic curriculum and staff development capability. 32 (c) Education service cooperatives may provide shared educational 33 programs and services such as needs assessment and school improvement 34 planning, staff development, curriculum development, itinerant teachers, 35 instructional materials, adult and vocational education, programs for gifted 36 HB2002 15 04/09/2025 8:19:07 AM TNL439 and talented, education for children with disabilities, alternative 1 educational programs, secondary area vocational centers, community -based 2 education programs, and other services which that the State Board of 3 Education may approve or which that public school districts may support with 4 local funds. 5 6 SECTION 16. Arkansas Code § 6 -13-1018 is amended to read as follows: 7 6-13-1018. Participation of local school districts — Contracts. 8 (a) Each public school district within the service area of the and 9 open-enrollment public charter school that is a member of an education 10 service cooperative shall be entitled to participate in those programs and 11 services which that are fully supported by state funds. 12 (b) A public school district or an open -enrollment public charter 13 school shall not deny or object to an education service cooperative that is 14 monitoring the public school district or open -enrollment public charter 15 school to ensure compliance with state laws and rules. 16 (b)(c) No A public school district or an open-enrollment public 17 charter school shall not be required to participate in any service. 18 (c)(d) School districts A public school district and an open -19 enrollment public charter school may enter into contracts with the an 20 education service cooperative for services supported partially or completely 21 by local public school funds. 22 (d)(e) School Public school districts and open-enrollment public 23 charter schools within one (1) education service cooperative may also 24 contract for services with another education service cooperative. 25 (f)(1) It shall be the responsibility of a public school district or 26 an open-enrollment public charter school to monitor and evaluate programs 27 provided to the public school district or open -enrollment public charter 28 school by an education service cooperative. 29 (2) Outsourcing personnel or programs to an education service 30 cooperative does not waive the public school district's or open -enrollment 31 public charter school's responsibility to ensure the programs provided by an 32 education service cooperative satisfy applicable laws or rules. 33 34 SECTION 17. Arkansas Code § 6 -13-1019 is amended to read as follows: 35 6-13-1019. Funding of education service cooperatives. 36 HB2002 16 04/09/2025 8:19:07 AM TNL439 (a)(1) The state Division of Elementary and Secondary Education shall 1 provide funds to support the basic structure of the education service 2 cooperatives established under the provisions of this subchapter develop a 3 formula for the distribution of funds allocated for education service 4 cooperatives that includes without limitation a base amount for each 5 education service cooperative and an amount dependent on the number of 6 students in each member public school district and open -enrollment public 7 charter school. 8 (2) The formula developed under subdivision (a)(1) of this 9 section may include additional factors relevant to the composition of an 10 education service cooperative and the services it will provide, as determined 11 by the division. 12 (b) This structure shall include Funds provided to education service 13 cooperatives under this subchapter shall be used to support the basic 14 structure of the education service cooperatives established under the 15 provisions of this subchapter, including : 16 (1) Salaries and fringe benefits for a an education service 17 cooperative director, a teacher center coordinator, and support staff; 18 (2) Costs such as travel, utilities, rent, equipment, and 19 supplies; and 20 (3) Funds to support staff and curriculum development 21 activities; and 22 (4) Funds in an annual amount not to exceed twenty -five thousand 23 dollars ($25,000) for the travel expenses of itinerant personnel employed by 24 the education service cooperative to serve the part -time needs of local 25 school districts. 26 (c) When making a determination regarding additional funding under 27 this section, the division shall: 28 (1) Analyze and consider education service cooperative strategic 29 plans; 30 (2) Ensure funding is targeted to directly support public school 31 district and open-enrollment public charter school improvement or state 32 priorities; and 33 (3) Identify and consider measurable student and educator 34 outcomes for member public school districts and open -enrollment public 35 charter schools that can be used to evaluate the effectiveness of an 36 HB2002 17 04/09/2025 8:19:07 AM TNL439 education service cooperative. 1 (c)(d) School Public school districts may contract with their 2 education service cooperative for services and part -time personnel to be 3 supported in whole or in part by local funds, but no a public school district 4 shall not be assessed a membership fee. 5 (d)(e) Categorical state funds or federal funds may also be assigned 6 to any an education service cooperative upon approval of its governing body 7 board of directors and under conditions set by the State Board of Education. 8 (e)(f) As a public agency, each education service cooperative shall be 9 eligible to receive and expend public and private funds. 10 11 SECTION 18. Arkansas Code § 6 -13-1020 is amended to read as follows: 12 6-13-1020. Policies and procedures — Expenditures, reports, and 13 audits. 14 (a) On or before August 31 of each year, each Each education service 15 cooperative shall file with the State Board of Education for the state 16 board's approval establish: 17 (1) The policies and procedures of the education service 18 cooperative, including without limitation the board of directors' policies 19 and procedures for overseeing the administrative and program expenditures of 20 the education service cooperative; and 21 (2) A record of the education service cooperative's employment 22 policies and practices for the year that includes without limitation: 23 (A) The race and sex of each person the education service 24 cooperative employed or terminated during the year; 25 (B) The race and sex of every person who sought employment 26 with the education service cooperative during the year; and 27 (C) The name of each person employed by the education 28 service cooperative during the year who is related by blood or marriage to 29 another employee or board member of the education service cooperative; and 30 (3)(A) A report of its receipts and expenditures made in 31 accordance with uniform accounting procedures adopted by the Commissioner of 32 Elementary and Secondary Education. 33 (B) The report shall contain without limitation: 34 (i) An itemization of administrative and program 35 expenditures; and 36 HB2002 18 04/09/2025 8:19:07 AM TNL439 (ii) The result of the board of directors' review of 1 the expenditures made under its oversight function. 2 (b) The Division of Elementary and Secondary Education may prescribe 3 the forms and procedures for filing the information required by subsection 4 (a) of this section. 5 (c)(b) Each education service cooperative is subject to an annual 6 audit approved by the Legislative Joint Auditing Committee. 7 (d)(1)(A)(c)(1) In an annual meeting of the an education service 8 cooperative board of directors, which must convene between May 15 and July 9 15, each education service cooperative shall report to its constituent member 10 public school districts and open-enrollment public charter schools on the 11 year's operations. 12 (B)(2)(A) The report also shall include information on fiscal 13 distress under § 6-13-1027. 14 (B) A copy of the report required under this subdivision 15 (c)(1) shall be submitted to the Education Service Cooperative Committee by 16 August 1 each year. 17 (2) The education service cooperative shall supplement its 18 report with written reports to each school district and to the division on a 19 school-by-school, service-by-service accounting basis. 20 (e) Following the end of each fiscal year, any balances in particular 21 service accounts must be apportioned and returned to the schools involved or 22 credited to their accounts for the following year. 23 24 SECTION 19. Arkansas Code § 6 -13-1021 is amended to read as follows: 25 6-13-1021. Evaluations — Performance rating. 26 (a)(1) Each education service cooperative shall be evaluated during 27 the 2012-2013 school year, and at least once within each five -year period, on 28 a schedule established by the Commissioner of Elementary and Secondary 29 Education. 30 (2) All active education service cooperatives must be visited by 31 an evaluation committee of not more than nine (9) persons shall have an on-32 site visit by a member of the Education Service Cooperative Committee one (1) 33 time each year. 34 (3) An education service cooperative that receives a rating of 35 "D" or "F" shall be evaluated during the year following the receipt of the 36 HB2002 19 04/09/2025 8:19:07 AM TNL439 "D" or "F" rating. 1 (b)(1)(A) Each evaluation shall include , but not be limited to, an 2 investigation of user satisfaction, without limitation: 3 (1) A review of the strategic plan established by an education 4 service cooperative and outcomes; 5 (2) Member public school district and open -enrollment public 6 charter school student academic outcomes and progress; service 7 (3) Service adequacy, extent of local financial support, ; 8 (4) Fiscal stability staff; 9 (5) Staff qualifications,; and performance 10 (6) Performance and administration effectiveness. 11 (B) The final evaluation, including any self -evaluation, 12 shall be included in the annual report to the Division of Elementary and 13 Secondary Education, § 6 -13-1020, and made available on the website of the 14 education service cooperative. 15 (2)(A) The evaluation criteria shall be developed 16 collaboratively between the division and the director of each education 17 service cooperative. 18 (B) The evaluation criteria shall be fully implemented by 19 September 1, 2012. 20 (c)(1) The report of this committee shall be filed with the education 21 service cooperative visited, with its constituent school districts, and with 22 the State Board of Education. 23 (2) The state board shall acknowledge receipt of the report and 24 comment on any deficiencies identified in the report that should be corrected 25 for the education service cooperative to remain eligible for base funding. 26 (3) The report shall identify each education service cooperative 27 as being in one (1) of the following category levels, based on the 28 evaluation: 29 (A) “Level 5”, education service cooperative of 30 excellence; 31 (B) “Level 4”, education service cooperative exceeding 32 standards; 33 (C) “Level 3”, education service cooperative meeting 34 standards; 35 (D) “Level 2”, education service cooperative on alert; or 36 HB2002 20 04/09/2025 8:19:07 AM TNL439 (E) “Level 1”, education service cooperative in need of 1 immediate improvement. 2 (d)(1)(c)(1) The intent of this the evaluation procedure under this 3 section is to provide a means for public school districts and open-enrollment 4 public charter schools to express their concerns about the operation of their 5 education service cooperative and to ensure that each education service 6 cooperative remains alert aware of and responsive to the needs of the local 7 public schools it serves. 8 (2) An education service cooperative that receives a performance 9 category level of Level 1 shall be reevaluated during the evaluation cycle 10 the following year. 11 (3) For all education service cooperatives that receive a 12 performance category level of Level 1 for two (2) consecutive years, the 13 division shall: 14 (A) Withhold base funding to the education service 15 cooperative; or 16 (B) Take over administration of the education service 17 cooperative An education service cooperative that has a rating of a "D" or an 18 "F" shall develop an improvement plan that is submitted to the committee to 19 take specified actions to improve performance and demonstrate improved 20 outcomes. 21 (d) If an education service cooperative has received a rating of "F" 22 for three (3) consecutive years, the State Board of Education may take one 23 (1) or more of the following remedial measures: 24 (1) Remove, reassign, or suspend the education service 25 cooperative director; 26 (2) Appoint an education service cooperative director who may: 27 (A) Operate the education service cooperative under the 28 supervision and approval of the commissioner; 29 (B) Terminate employees of the education service 30 cooperative in accordance with state and federal law; and 31 (C) Restructure the internal operations of the education 32 service cooperative; 33 (3) Designate the committee as the acting board of directors for 34 the education service cooperative; and 35 (4) Direct the commissioner to assume some or all of the 36 HB2002 21 04/09/2025 8:19:07 AM TNL439 authority of the education service cooperative board of directors as 1 necessary to operate the education service cooperative. 2 (e) If the state board directs the commissioner to assume the 3 authority of the education service cooperative board of directors under 4 subdivision (d)(4) of this section, it may also direct the commissioner to 5 appoint an advisory board to act in an advisory capacity to the commissioner 6 regarding the powers and duties maintained by the commissioner. 7 (e)(f) The division shall promulgate rules necessary for implementing 8 this section. 9 (f)(1) For each evaluation, the commissioner shall appoint the 10 committee and designate its chairperson. 11 (2) The committee shall include the following from outside the 12 boundary of the education service cooperative being evaluated: 13 (A) A division staff member; 14 (B) A teacher; 15 (C) An administrator; 16 (D) A college staff member; and 17 (E) A present or former staff member of an area education 18 service agency. 19 (3) In addition, the committee shall include from within the 20 education service cooperative's area: 21 (A) A member of the school district board of directors; 22 (B) A representative of business and industry; and 23 (C) A school parent from each of two (2) school districts. 24 (4) Each education service cooperative shall pay the reasonable 25 costs of its evaluation. 26 27 SECTION 20. Arkansas Code § 6 -13-1022 is amended to read as follows: 28 6-13-1022. Dissolution of education service cooperative. 29 (a) After 1990, the The State Board of Education shall be authorized 30 to may dissolve any an education service cooperative upon the request of a 31 majority of its school district boards of directors or upon the 32 recommendation of the evaluation committee provided for in § 6 -13-1021: 33 (1) The request of a majority of its member public school 34 district board of directors or open -enrollment public charter school 35 governing body; 36 HB2002 22 04/09/2025 8:19:07 AM TNL439 (2) The recommendation of an evaluation conducted pursuant to § 1 6-13-1021; 2 (3) An education service cooperative receiving a rating of "F" 3 for three (3) consecutive years; or 4 (4) An education service cooperative classified as in fiscal 5 distress. 6 (b)(1) A dissolved education service cooperative's area member public 7 school districts and open-enrollment public charter schools shall be assigned 8 to one (1) or more adjacent education service cooperatives , the provisions of 9 § 6-13-1003 notwithstanding, with the dissolved education service 10 cooperative's base funding apportioned to all remaining education service 11 cooperatives in the state . 12 (2) Upon the dissolution of an education service cooperative, 13 the division shall revise the funding formula established under § 6 -13-1019. 14 (c) After payment of debts, the assets of a dissolved education 15 service cooperative shall be distributed to the member public school 16 districts and open-enrollment public charter schools in its service area 17 based on each school district's or open-enrollment public charter school's 18 three-quarter average daily membership for the immediately preceding school 19 year. 20 21 SECTION 21. Arkansas Code § 6 -13-1023 is amended to read as follows: 22 6-13-1023. Technology training center — Technology coordinator. 23 (a) Consistent with funds available and upon a majority vote of the 24 members present and voting, the board of directors of each education service 25 cooperative established under this subchapter is authorized to may establish 26 a technology training center and employ a technology coordinator who has 27 demonstrated expertise in computer technology and staff development. 28 (b) The duties of the technology coordinator at such a technology 29 training center established under this section shall include, but not be 30 limited to, without limitation the following: 31 (1) To provide staff development for personnel of member schools 32 public school districts and open -enrollment public charter schools ; 33 (2) To assist member schools public school districts and open -34 enrollment public charter schools with determining technology needs and types 35 of computer hardware and software necessary to meet those needs; 36 HB2002 23 04/09/2025 8:19:07 AM TNL439 (3) To assist with technology system analysis and local network 1 design; 2 (4) To provide member schools public school districts and open -3 enrollment public charter schools with information on technology standards 4 and specifications; 5 (5) To develop and coordinate a technology training center 6 located at the education service cooperative; 7 (6) To coordinate information with the Arkansas Public School 8 Computer Network, the Instructional Microcomputer Project for Arkansas 9 Classrooms, and the Governor's Technology Task Force so that member schools 10 public school districts and open -enrollment public charter schools will be 11 informed on technological activity in the state; and 12 (7) To assist with requests for proposal development and bid 13 analysis so that member schools public school districts and open -enrollment 14 public charter schools will be better able to spend funds for technology ; and 15 (8) To assist with coordinated efforts to address cyber 16 incidents and develop appropriate response teams . 17 18 SECTION 22. Arkansas Code § 6 -13-1025 is repealed. 19 6-13-1025. Mathematics and science resource center — Mathematics and 20 science coordinator. 21 (a) Consistent with funds available and upon a majority vote of the 22 members present and voting, the board of directors of each education service 23 cooperative established under this subchapter is authorized to establish a 24 mathematics and science resource center and to employ a mathematics and 25 science coordinator who has demonstrated expertise in mathematics and science 26 content, in pedagogy, and in staff development. 27 (b) The duties of the mathematics and science coordinator at the 28 mathematics and science resource center shall include, but not be limited to, 29 the following: 30 (1) Providing mathematics and science staff development for and 31 individual technical assistance to personnel of member schools; 32 (2) Assisting member schools with determining mathematics and 33 science curricula, with instruction, and with assessment of needs and 34 resources necessary to meet those needs; 35 (3) Enhancing curricula and instruction using technology; 36 HB2002 24 04/09/2025 8:19:07 AM TNL439 (4) Providing member schools with information for curriculum 1 alignment with mathematics and science standards and state frameworks; 2 (5) Developing and coordinating a mathematics and science 3 resource center located at the education service cooperative; and 4 (6) Assisting with the development of requests for proposals for 5 teacher enhancement in mathematics and science. 6 7 SECTION 23. Arkansas Code § 6 -13-1027(e), concerning requirements for 8 an education service cooperative that receives a classification of fiscal 9 distress, is amended to read as follows: 10 (e) Within two (2) weeks following the date the education service 11 cooperative receives the final classification by the state board of fiscal 12 distress, the education service cooperative shall: 13 (1) Notify in writing each member public school district in its 14 service area and open-enrollment public charter school that the education 15 service cooperative is classified as being in fiscal distress; and 16 (2) File with the division a fiscal distress plan under § 6 -13-17 1028. 18 19 SECTION 24. Arkansas Code § 6-13-1027(g), concerning an annual report 20 provided by an education service cooperative that receives a classification 21 of fiscal distress, is amended to read as follows: 22 (g) The education service cooperative shall include in the annual 23 report to constituent member public school districts and open-enrollment 24 public charter schools under § 6-13-1020(d) the progress the education 25 service cooperative has made on its fiscal distress plan. 26 27 SECTION 25. Arkansas Code Title 6, Chapter 13, Subchapter 10, is 28 amended to add an additional section to read as follows: 29 6-13-1032. Education service cooperative rating system — Established. 30 (a) The education service cooperative rating system established by 31 this section shall be a multiple -measures approach that shall include without 32 limitation: 33 (1) Academic achievement on the annual statewide student 34 assessment of all students in member public school districts and open -35 enrollment public charter schools; 36 HB2002 25 04/09/2025 8:19:07 AM TNL439 (2) Student growth on the annual statewide student assessment of 1 all students in member public school districts and open -enrollment public 2 charter schools; 3 (3) School-level graduation rate or rates of all students in 4 member public school districts and open -enrollment public charter schools; 5 and 6 (4) Any other measures identified by the Division of Elementary 7 and Secondary Education. 8 (b) An education service cooperative rating shall not be calculated by 9 averaging the school letter grades of member public school districts and 10 open-enrollment public charter schools. 11 (c) Indicators included or considered as part of the education service 12 cooperative rating system shall: 13 (1) Allow for meaningful differentiation in education service 14 cooperative performance; and 15 (2) Be valid, reliable, comparable, and applicable statewide. 16 (d) The State Board of Education may take one (1) or more actions 17 under § 6-13-1021 when an education service cooperative receives a rating of 18 "F" for three (3) consecutive years. 19 (e) The division may promulgate rules to implement this section. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36