The proposed 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 of isolated school districts, which includes provisions for submitting petitions to the existing school district board, verifying signatures, and holding elections for the residents of the isolated school. The bill specifies that a minimum enrollment requirement does not apply when forming an isolated school district, and outlines the necessary steps for the approval of such a petition.

Additionally, the bill sets forth the governance structure for isolated school districts, mandating a board of directors composed of five members elected by the district's residents. It also establishes funding mechanisms, including the determination of millage rates and eligibility for state funding based on prior-year average daily membership. The bill addresses the transfer of ownership of facilities and property from the existing school district to the newly formed isolated school district, ensuring that all necessary resources, including equipment and funds, are appropriately allocated. Overall, the legislation aims to facilitate the establishment and operation of isolated school districts while ensuring proper governance and funding.