AR HB1354

Amends Arkansas Code § 6-13-1505 to clarify asset allocation between original and new school districts created through detachment, allowing allocation by state board or mutual agreement between districts.

Requires documentation of asset transfers through deeds, assignments, or bills of sale and establishes that new districts inherit indebtedness as allocated by state board or by mutual agreement with the original district.

Specifies indebtedness allocation methods including third-party appraisals, student population ratios, and assessed property value ratios, with allocation structured to prevent default or violation of tax covenants in original district debt documents.

Establishes that millage rates in new districts must remain equal to original district rates until changed by election, and new districts may use inherited debt service millage to pay assigned indebtedness.

Declares an emergency effective on Governor's approval, citing unclear detachment laws and need to ensure newly created districts can secure property and debt as student populations decline across Arkansas school districts.