This bill establishes a framework for the formation of isolated school districts in Arkansas, detailing the process for detaching an isolated school from a larger district and the requirements for creating a new district. It introduces a new subchapter in the Arkansas Code, specifically addressing the formation, governance, funding, and management of isolated school districts. Key provisions include the requirement for a petition signed by either 350 registered voters or 51% of voters within the isolated school's boundaries to initiate the detachment process. The bill also mandates that the resulting school district board of directors must verify the petition signatures and call for an election to determine the community's support for the formation of the isolated school district.

Additionally, the bill outlines the governance structure for isolated school districts, which will be managed by a board of directors elected by local voters. It specifies funding mechanisms, including the establishment of a millage rate and eligibility for state funding based on prior-year average daily membership. The bill also addresses the transfer of facilities, property, and funds from the existing school district to the newly formed isolated school district, ensuring that all necessary resources are allocated for the operation of the new district. Overall, this legislation aims to provide a clear and structured process for communities seeking to establish their own isolated school districts.