Bonds for surface transportation projects

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  1. (a) The governing body of a municipality or county may pledge by ordinance all or a specified portion of the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, to retire bonds issued for a surface transportation project.

  2. (b)

    1. (1) An ordinance pledging revenues under subsection (a) of this section is not effective unless the issuance of the bonds is approved by a majority of the electors of the municipality or county voting on the question at an election that is held substantially in the manner provided under § 14-164-309.

    2. (2) The ballot form in an election to issue bonds secured by the pledge of revenues under subsection (a) of this section shall contain a statement describing the extent to which the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, may be pledged to the retirement of the bonds issued for the surface transportation project if the bonds are approved by the voters of the municipality or county.

  3. (c) Bonds issued under this section shall not have a final maturity date later than July 1, 2023.

  4. (d) A certified copy of the ordinance authorizing the issuance of bonds under this section shall be filed with the Secretary of the Department of Finance and Administration and the Treasurer of State as soon as practicable after the approval of the issuance of the bonds by the voters.

  5. (e)

    1. (1) If a municipality or county has filed an ordinance with the Treasurer of State under subsection (d) of this section and the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, is to be distributed to the municipality or county from the Municipal Aid Fund or the County Aid Fund, the Treasurer of State shall separately identify the amount of funds to be distributed to the municipality or county under Arkansas Constitution, Amendment 91.

    2. (2) If a municipality or county has filed an ordinance with the Treasurer of State under subsection (d) of this section, the municipality or county may elect to have the funds identified by the Treasurer of State under subdivision (e)(1) of this section distributed to the bank or other depository designated in the ordinance.

    3. (3)

      1. (A) If a municipality or county elects to have funds distributed to a bank or other depository under subdivision (e)(2) of this section, the amount identified by the Treasurer of State under subdivision (e)(1) of this section shall be distributed to the bank or other depository designated in the ordinance rather than being distributed to the municipality or county.

      2. (B) The distribution under subdivision (e)(3)(A) of this section shall continue until the municipality or county files a signed statement with the Treasurer of State to the effect that the bonds to which the funds identified under subdivision (e)(1) of this section are pledged have been fully paid and are no longer outstanding.


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