Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to the Arkansas
                                                  Constitution.
 1   State of Arkansas
 2   93rd General Assembly
 3   Regular Session, 2021                                                                           SJR 1
 4
 5   By: Senator A. Clark
 6
 7                               SENATE JOINT RESOLUTION
 8                  AN AMENDMENT TO THE ARKANSAS CONSTITUTION PROVIDING
 9                  THAT A MUNICIPALITY MAY INCUR SHORT-TERM FINANCING
10                  OBLIGATIONS MATURING OVER A PERIOD OF, OR HAVING A
11                  TERM, NOT TO EXCEED TEN (10) YEARS FOR THE PURPOSE OF
12                  ACQUIRING FIRE TRUCKS.
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15                                                Subtitle
16                           A CONSTITUTIONAL AMENDMENT PROVIDING THAT
17                           A MUNICIPALITY MAY INCUR SHORT-TERM
18                           FINANCING OBLIGATIONS MATURING OVER A
19                           PERIOD OF, OR HAVING A TERM, NOT TO
20                           EXCEED TEN (10) YEARS FOR THE PURPOSE OF
21                           ACQUIRING FIRE TRUCKS.
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24   BE IT RESOLVED BY THE SENATE OF THE NINETY-THIRD GENERAL ASSEMBLY OF THE
25   STATE OF ARKANSAS, AND BY THE HOUSE OF REPRESENTATIVES, A MAJORITY OF ALL
26   MEMBERS ELECTED TO EACH HOUSE AGREEING THERETO:
27
28          That the following is proposed as an amendment to the Constitution of
29   the State of Arkansas, and upon being submitted to the electors of the state
30   for approval or rejection at the next general election for Representatives
31   and Senators, if a majority of the electors voting thereon at the election
32   adopt the amendment, the amendment shall become a part of the Constitution of
33   the State of Arkansas, to wit:
34
35          SECTION 1.       Arkansas Constitution, Amendment 78,  2, is amended to
36   read as follows:
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                                                                                    SJR1
 1         2.    [Short-term financing obligations].
 2        (a)     For the purpose of acquiring, constructing, installing or renting
 3   real property or tangible personal property having an expected useful life of
 4   more than one (1) year, municipalities and counties may incur short-term
 5   financing obligations maturing over a period of, or having a term, not to
 6   exceed five (5) years.    However, for the purpose of acquiring fire trucks,
 7   municipalities may incur short-term financing obligations maturing over a
 8   period of, or having a term, not to exceed ten (10) years.     Such obligations
 9   Obligations under this section may bear interest.     The aggregate principal
10   amount of short-term financing obligations incurred by a municipality or a
11   county pursuant to this section shall not exceed five percent (5%) of the
12   assessed value of taxable property located within the municipality or two and
13   one half percent (2.5%) of the assessed value of taxable property located
14   within the county, as determined by the last tax assessment completed before
15   the last obligation was incurred by the city or county.     The total annual
16   principal and interest payments in each fiscal year on all outstanding
17   obligations of a municipality or a county pursuant to this section shall be
18   charged against and paid from the general revenues for such fiscal year,
19   which may include road fund revenues.     Tax revenues earmarked for solid waste
20   disposal purposes may be used to pay printing and other costs associated with
21   bonds issued under this amendment for solid waste disposal purposes.
22        (b)     As used here: in this section,
23                (1)   Short-term financing obligation means a debt, a note, an
24   installment purchase agreement, a lease, a lease-purchase contract, or any
25   other similar agreement, whether secured or unsecured; provided, that the
26   obligation shall mature over a period of, or have a term, not to exceed five
27   (5) years.
28                (2)   Repealed.
29        (c)     The provisions of this section shall be self-executing.
30
31        SECTION 2.     EFFECTIVE DATE.   This amendment shall be effective on and
32   after January 1, 2023.
33
34        SECTION 3.     BALLOT TITLE AND POPULAR NAME.   When this proposed
35   amendment is submitted to the electors of this state on the general election
36   ballot:
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                                                                                 SJR1
 1                (1)   The title of this Joint Resolution shall be the ballot
 2   title; and
 3                (2)   The popular name shall be "A Constitutional Amendment
 4   Providing That a Municipality May Incur Short-Term Financing Obligations
 5   Maturing Over a Period of, or Having a Term, Not to Exceed Ten (10) Years for
 6   the Purpose of Acquiring Fire Trucks".
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