Signed by Governor Mike Beebe

Vote Smart's Synopsis:

Vote to pass a bill that appropriates funds for highway development.

Highlights:

• Increases the distillate special fuel tax by 5 cents for each gallon upon the approval by a majority of the qualified electors voting on the measure in a statewide election (Sec. 2).

• Increases the distillate special fuel tax to provide revenue for constructing, widening, reconstructing, maintaining, resurfacing, and repairing the public highways (Sec. 2).

• Authorizes the State Highway Commission to issue bonds, upon a statewide majority voter approval, to be used for the following purposes (Sec 3):
• Accelerate highway improvement projects already underway or scheduled;
• Fund new highway improvement projects;
• Finance the restoration, reconstruction, and renovation of highway improvements; and
• Pay the costs of issuance of the bonds or other credit enhancement.

• Establishes the following requirements for the State of Arkansas Federal Highway Grant Anticipation and Tax Revenue Bonds (Sec 3):
• The bonds must be issued in series and in amounts sufficient to finance all or part of the costs of construction and maintenance of highway improvements;
• The bonds must mature or be subject to mandatory sinking fund redemption over a period ending not later than 12 years after the date of issue of each series;
• The bonds of each series must bear interest at the rate determined by the commission at the sale of the bonds;
• The bonds must be issued in the form of bonds registered as to both principal and interest without coupons; and
• Each bond must be executed with the facsimile signatures of the Chair of the State Highway Commission and the secretary of the commission, and the seal of the commission shall be affixed or imprinted on the bond.

Full Bill Text