AR SB305

Authorizes the Director of the Department of Workforce Services to issue Arkansas Unemployment Trust Fund Bonds up to $600,000,000 to repay federal unemployment trust fund debt owed by the state, subject to statewide voter approval.

Requires the Governor to call a statewide election on the bond issuance after receiving a repayment plan from the Department of Workforce Services; election may be held with a general election or as a special election on the second Tuesday of any month.

Bonds are general obligations of the State of Arkansas secured by designated revenues from an increase in the wage base and backed by the full faith and credit of the state; if designated revenues are insufficient, payment comes from general state revenues.

Bonds shall mature within 12 years of issuance with interest rates not exceeding the federal interest rate; bonds are issued in registered form and may be sold publicly or privately at terms the Director determines reasonable.

Bonds and interest are exempt from all state taxes and are legal investments for municipal, county, bank, fiduciary, insurance company, and trust funds; the Director may employ professionals including legal counsel and financial advisors for the issuance and sale.