New Path for Bonds?

Voters in Arkansas will be asked in 2010 to approve a proposed constitutional amendment that would change the process for issuing state bonds for major economic development projects.

HJR 1007, sponsored by House Speaker Robbie Wills, D-Conway, would remove specific requirements for issuing the economic development bonds and give the General Assembly the right to establish the criteria.

The measure has been passed by both chambers and sent to Gov. Mike Beebe.

Amendment 82, approved by voters in 2004, allowed the legislature to authorize bonds equivalent to 5% of the state’s general revenue for companies that would invest more than $500 million in projects that would require at least 500 new employees.

During committee hearings Wills said his proposed change to Amendment 82 would allow the General Assembly to consider economic development bonds for smaller projects on a case-by-case basis.

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