(a) The purpose of this section is to create incentives for more efficient management of the public higher education resources of the State of Arkansas by allowing public higher education institutions and their boards of trustees to merge or consolidate on a voluntary basis and to consolidate administrative functions by transferring them to another institution.
(b)
(1) A fund account is hereby established called the Higher Education Consolidation Matching Fund.
(2) Moneys deposited into this account shall be made available to match documented savings at public institutions of higher education that consolidate or merge.
(3) The amount of matching funds to be made available from the fund shall be determined by the Arkansas Higher Education Coordinating Board.
(4) Upon review and approval of the Chief Fiscal Officer of the State, the funds shall be transferred to the newly constituted or merged institution from the fund.
(c) The institutional consolidations and mergers eligible for matching funds under the terms of this section include:
(1) Two (2) or more public universities;
(2) Two (2) or more public two-year colleges;
(3) Community colleges and technical institutes located in the same city or the same county;
(4) New systems of public higher education institutions composed of two-year and four-year institutions under the control of a single board of trustees;
(5) Existing systems of public higher education institutions that add two-year and/or four-year institutions to the system; and
(6) Administrative function consolidation with similar services or operations at another institution.
(d)
(1) Consolidations or mergers involving community colleges shall be subject to the provisions of § 6-61-519, where applicable, when the result of a consolidation or a merger requires dissolution of the community college district.
(2) Any agreements made by community colleges with other public colleges or universities to consolidate or merge are declared to be consistent with the provisions of § 6-61-524, which permits the sharing of facilities, personnel, and services by community colleges.
(e) The board, in consultation with the public colleges and universities, is authorized to develop policies and rules to implement the provisions of this section.