Arkansas’ chief lawyer last week said the proposed constitutional amendment that would raise the interest rate limit on public debt is titled correctly and adheres to statutory provisions.
The filing was in response to a suit in state court seeking to halt a vote on the issue at the November general election.
Documents submitted by Attorney General Dustin McDaniel also contend that the suit was filed too late to stop the election.
The complaint was filed in Pulaski County district court and the Arkansas Supreme Court in late September by a Little Rock law firm on behalf of a Jacksonville resident.
The suit targets the three-part Issue 2, one of three measures on the ballot.
The proposed amendment would remove the current rate limitation on debt issued by or loans made to Arkansas state and local governments.
The debt currently must have an interest rate no higher than 200 basis points above the discount rate posted by the Federal Reserve Bank of St. Louis, which is currently 0.75%.
The proposal would also allow local governments to issue bonds for energy-efficiency projects supported by the cost savings achieved by the projects.
Another provision would allow higher rates on non-bank consumer loans.
The lawsuit challenges the ballot title on the amendment.
The suit alleges that the ballot title does not comply with state law, and that it is not the same title as was published in public notices by the secretary of state’s office.
McDaniel rejected the plaintiff’s argument that the measure combines three separate issues, noting that the provisions relate to a single subject.
