Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 75
4
5 By: Senator M. Johnson
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE PROVISIONS OF ARKANSAS
9 CONSTITUTION, AMENDMENTS 91 AND 101, TO PROVIDE THAT
10 PROCEEDS GENERATED UNDER ARKANSAS CONSTITUTION,
11 AMENDMENT 91, MAY BE APPLIED TO MULTILANE HIGHWAY
12 IMPROVEMENTS; TO AMEND ARKANSAS CONSTITUTION,
13 AMENDMENTS 91 AND 101, PURSUANT TO THE AUTHORITY
14 GRANTED BY ARKANSAS CONSTITUTION, ARTICLE 5, 1; TO
15 DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.
16
17
18 Subtitle
19 TO AMEND THE PROVISIONS OF ARKANSAS
20 CONSTITUTION, AMENDMENTS 91 AND 101, TO
21 PROVIDE THAT PROCEEDS MAY BE APPLIED TO
22 MULTILANE HIGHWAY IMPROVEMENTS; AND TO
23 DECLARE AN EMERGENCY.
24
25
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
27
28 SECTION 1. DO NOT CODIFY. LEGISLATIVE INTENT.
29 (a) The General Assembly finds:
30 (1) Arkansas Constitution, Article 5, 1, provides that "[n]o
31 measure approved by a vote of the people shall be amended or repealed by the
32 General Assembly. . . except upon a yea and nay vote on roll call of two-
33 thirds of all the members elected to each house of the General Assembly. .
34 .";
35 (2) Arkansas Constitution, Article 5, 1, defines "measure" to
36 include any bill, law, resolution, ordinance, charter, constitutional
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1 amendment or legislative proposal or enactment of any character;
2 (3) The plain language of the definition of "measure" in
3 Arkansas Constitution, Article 5, 1, clearly includes amendments to the
4 Arkansas Constitution, meaning that the General Assembly may amend amendments
5 to the Arkansas Constitution with a two-thirds vote of each house;
6 (4) Despite observing that the definition of "measure" in
7 Arkansas Constitution, Article 5, 1 includes "constitutional amendment(s)
8 'or legislative proposals of any character'", the Supreme Court in Arkansas
9 Game and Fish Commission v. Edgmon, 218 Ark. 207, 235 S.W.2d 554 (1951),
10 declined to construe the language literally and held that the General
11 Assembly lacked the power to amend or repeal amendments to the Arkansas
12 Constitution by a two-thirds vote of each house;
13 (5) In Board of Trustees of the University of Arkansas v.
14 Andrews, 2018 Ark. 12 (2018), the Supreme Court overturned years of precedent
15 by holding that the General Assembly cannot waive by law the state's
16 sovereign immunity granted by Arkansas Constitution, Article 5, 20;
17 (6) In reaching its decision in Andrews, supra, the Supreme
18 Court held that the language of Arkansas Constitution, Article 5, 20,
19 should be interpreted "precisely as it reads";
20 (7) In Buonauito v. Gibson, 2020 Ark. 352, the Arkansas Supreme
21 Court noted that the phrase "four-lane highway" as used in Arkansas
22 Constitution, Amendment 91, had been "given a specific meaning that is plain
23 and unambiguous" and thus funds under Arkansas Constitution, Amendment 91,
24 could not be used to improve six-lane portions of interstate highways; and
25 (8) An interpretation of Arkansas Constitution, Article 5, 1,
26 "precisely as it reads" clearly leads to the conclusion that the General
27 Assembly may amend all measures, including constitutional amendments, by a
28 two-thirds vote of each house, as the term "measure" has been given a plain
29 and unambiguous definition in Arkansas Constitution, Article 5, 1.
30 (b) By the passage of this act, the General Assembly expresses its
31 belief that, upon consideration of this act using the standard of review
32 established in Andrews, supra, the Supreme Court will:
33 (1) Interpret Arkansas Constitution, Article 5, 1, precisely
34 as it reads in consideration of its plain and unambiguous language;
35 (2) Overturn its decision in Edgmon, supra, as inconsistent with
36 its holding in Andrews, supra, and Buonauito, supra; and
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1 (3) Uphold the constitutional authority of the General Assembly
2 under Arkansas Constitution, Article 5, 1, to amend or repeal amendments to
3 the Arkansas Constitution by a two-thirds vote of each house.
4
5 SECTION 2. Pursuant to the authority granted by Arkansas Constitution,
6 Article 5, 1, Arkansas Constitution, Amendment 91, 1 and 2 are amended
7 to read as follows:
8 1. Intent.
9 The people of the State of Arkansas find that:
10 (a) The state has an outdated and inadequate system of highway
11 funding that is unable to meet the severe and pressing needs to maintain and
12 improve the state's system of state highways, county roads, and city streets;
13 (b) Increasing investment in the state highway system, county
14 roads, and city streets will create jobs, aid in economic development,
15 improve quality of life, and provide additional transportation
16 infrastructure, including specifically, a four-lane multilane highway
17 construction plan designed to connect all regions of the state; and
18 (c) To provide additional funding for the state's four-lane
19 multilane highway system, county roads, and city streets, this amendment
20 levies a temporary sales and use tax and authorizes general obligation
21 highway construction and improvement bonds for the state's four-lane
22 multilane highway system.
23
24 2. Definitions.
25 As used in this amendment:
26 (a) Bonds means the State of Arkansas General Obligation Four-
27 Lane Multilane Highway Construction and Improvement Bonds as authorized in
28 this amendment;
29 (b) Chairman means the chair of the Arkansas Highway
30 Commission;
31 (c) Chief fiscal officer means the Director of the Department
32 of Finance and Administration;
33 (d) Commission means the State Highway Commission;
34 (e) Debt service means all amounts required for the payment of
35 principal of, interest on, and premium, if any, due with respect to the bonds
36 in any fiscal year, along with all associated costs, including without
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1 limitation the fees and costs of paying agents and trustees, and remarketing
2 agent fees;
3 (f) Designated tax revenues means:
4 (1) Taxes collected under this amendment and apportioned
5 to the Arkansas State Highway and Transportation Department Fund under 27-
6 70-206 collected over an approximate ten-year period; and
7 (2) Other fees or taxes that are dedicated to the
8 repayment of the bonds; and
9 (g)(1) Four-lane Multilane highway improvements means
10 construction of and improvements to:
11 (A) Four-lane Multilane roadways;
12 (B) Bridges;
13 (C) Tunnels;
14 (D) Engineering;
15 (E) Rights-of-way; and
16 (F) Other related capital improvements and
17 facilities appurtenant or pertaining thereto, including costs of rights-of-
18 way acquisition and utility adjustments.
19 (2) Four-lane Multilane highway improvements also means
20 the maintenance of four-lane multilane highway improvements constructed with
21 proceeds of the bonds.
22
23 SECTION 3. Pursuant to the authority granted by Arkansas Constitution,
24 Article 5, 1, Arkansas Constitution, Amendment 91, 4(a), concerning the
25 authorization and purpose of general obligation bonds under Arkansas
26 Constitution, Amendment 91, is amended to read as follows:
27 (a) The State Highway Commission may issue State of Arkansas Four-Lane
28 Multilane Highway Construction and Improvement General Obligation Bonds
29 (bonds') in a total principal amount not to exceed one billion, three
30 hundred million dollars ($1,300,000,000) for the purpose of:
31 (1) Accelerating four-lane multilane highway improvements in
32 progress or scheduled as of January 1, 2011;
33 (2) Funding new four-lane multilane highway improvements not in
34 progress or scheduled as of January 1, 2011;
35 (3) Providing matching funds in connection with federal highway
36 programs for four-lane multilane highway improvements; and
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1 (4) Paying the costs of issuance of the bonds.
2
3 SECTION 4. Pursuant to the authority granted by Arkansas Constitution,
4 Article 5, 1, Arkansas Constitution, Amendment 91, 5, is amended to read
5 as follows:
6 5. Use of proceeds.
7 (a) There is established on the books of the Treasurer of State,
8 Auditor of State, and the chief fiscal officer of the State a special account
9 within the State Highway and Transportation Department Fund to be designated
10 as the Arkansas Four-Lane Multilane Highway Construction and Improvement Bond
11 Account.
12 (b)(1) On the last day of each month, the Treasurer of State, after
13 making the deductions required from the net special revenues as set out in
14 19-5-203(b)(1), shall transfer the revenues derived by the one-half cent
15 (0.5) taxes levied under this amendment to the State Highway and
16 Transportation Department Fund, the County Aid Fund and the Municipal Aid
17 Fund in the percentages provided in the Arkansas Highway Revenue Distribution
18 Law, 27-70-201 and 27-70-206.
19 (2) The proceeds of the excise taxes transferred to the State
20 Highway and Transportation Department Fund shall be set aside and transferred
21 to the Arkansas Four-Lane Multilane Highway Construction and Improvement Bond
22 Account and used for the purposes provided for in this amendment.
23 (3) The tax revenues accruing from this amendment shall not be
24 designated as special revenues for deposit to the Arkansas Department of
25 Aeronautics Fund under 27-115-110.
26
27 SECTION 5. Pursuant to the authority granted by Arkansas Constitution,
28 Article 5, 1, Arkansas Constitution, Amendment 91, 7, is amended to read
29 as follows:
30 7. Effective Date - Use of funds.
31 (a) The taxes levied by this amendment shall not become effective
32 until after a majority of the qualified electors of the state voting on the
33 question approve the issuance of Four-Lane Multilane Highway Construction and
34 Improvement General Obligation Bonds to be repaid in part by the taxes levied
35 by this amendment and deposited to the Arkansas Four-Lane Multilane Highway
36 Construction and Improvement Bond Account in the State Highway and
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1 Transportation Department Fund.
2 (b) If the tax levies and the issuance of the bonds are approved, the
3 effective date of the temporary taxes levied by this amendment shall be July
4 1, 2013.
5 (c) Taxes levied by this amendment may be used for the purposes
6 provided for in this amendment, including without limitation the funding of
7 new multilane highway improvements, regardless of when the taxes were
8 collected.
9
10 SECTION 6. Pursuant to the authority granted by Arkansas Constitution,
11 Article 5, 1, Arkansas Constitution, Amendment 91, 10(2), concerning the
12 procedures for issuing bonds under Arkansas Constitution, Amendment 91, is
13 amended to read as follows:
14 (2) The commission shall present a report to the Governor that
15 includes the:
16 (A) Highway construction and improvements to be financed
17 with the proceeds of such series of bonds;
18 (B) Estimated cost of the four-lane multilane highway
19 construction and improvements;
20 (C) Amount of bonds necessary to finance such four-lane
21 multilane highway construction and improvements; and
22 (D) Estimated amount of debt service required to pay the
23 bonds;
24
25 SECTION 7. Pursuant to the authority granted by Arkansas Constitution,
26 Article 5, 1, Arkansas Constitution, Amendment 91, 11(a)(1), concerning
27 the terms of bonds issued under Arkansas Constitution, Amendment 91, is
28 amended to read as follows:
29 (a)(1) The bonds shall be issued in series as provided for in this
30 section in amounts sufficient to finance all or part of the costs of four-
31 lane multilane highway construction and improvements provided under Section
32 10 of this amendment.
33
34 SECTION 8. Pursuant to the authority granted by Arkansas Constitution,
35 Article 5, 1, Arkansas Constitution, Amendment 91, 15(a)(2), concerning
36 the general obligation status of bonds issued under Arkansas Constitution,
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1 Amendment 91, is amended to read as follows:
2 (2) The bonds shall be payable from:
3 (A) The Arkansas Four-Lane Multilane Highway Construction
4 and Improvement Bond Account; and
5 (B) General revenues of the state as that term is defined
6 in the Revenue Stabilization Law, 19-5-101 et seq.
7
8 SECTION 9. Pursuant to the authority granted by Arkansas Constitution,
9 Article 5, 1, Arkansas Constitution, Amendment 91, 16, is amended to read
10 as follows:
11 16. Sources of repayment.
12 (a) Without in any way limiting the general obligation of the state to
13 repay the bonds, the designated tax revenues are pledged to the payment of
14 the debt service on the bonds.
15 (b)(1) The Treasurer of State shall establish in the State Highway and
16 Transportation Department a special account known as the Arkansas Four-Lane
17 Multilane Highway Construction and Improvement Bond Account.
18 (2) The Treasurer of State shall deposit in the Arkansas Four-
19 Lane Multilane Highway Construction and Improvement Bond Account all
20 designated tax revenues.
21 (3) The commission may pledge to the repayment of the bonds the
22 full faith and credit of the state and may grant a lien upon the funds on
23 deposit in the Arkansas Four-Lane Multilane Highway Construction and
24 Improvement Bond Account.
25 (c)(1) On or before commencement of each fiscal year, the commission
26 in consultation with the chief fiscal officer shall determine the estimated
27 amount required for payment of debt service due on each series of bonds
28 issued and outstanding under this amendment during the fiscal year and shall
29 certify the estimated amount to the Treasurer of State.
30 (2) The Treasurer of State shall then make transfers from the
31 Arkansas Four-Lane Multilane Highway Construction and Improvement Bond
32 Account in the State Highway and Transportation Department Fund to the
33 trustees of each series of bonds, in such amounts and at such times as shall
34 be specified in the indentures, to:
35 (A) Pay the maturing debt service on each series of bonds
36 issued and outstanding under this amendment; and
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1 (B) Establish and maintain with the trustee for each
2 series of bonds a reserve or reserves for payment of debt service on each
3 series of bonds.
4 (d) The obligation to make transfers from the Arkansas Four-Lane
5 Multilane Highway Construction and Improvement Bond Account in the State
6 Highway and Transportation Department Fund for the payment of debt service
7 on, and, if applicable, a reserve for, each series of bonds is a first charge
8 against amounts on deposit.
9 (e) Funds on deposit in the Arkansas Four-Lane Multilane Highway
10 Construction and Improvement Bond Account in the State Highway and
11 Transportation Department Fund that are in excess of the obligations set
12 forth in (d) above may be used to:
13 (1) Redeem bonds