Arkansas Code of 1987 (2023) › Title 19 - PUBLIC FINANCE (§§ 19-1-201 — 19) › Appendix TITLE - 19 - BOND ISSUES (§ 19) › Section 1 - Arkansas Revenue Department Building Act

SECTION 1.
This Act shall be referred to and may be cited as the "Arkansas Revenue Department Building Act."
SECTION 2.
There is hereby created and established a Commission to be known as the Arkansas Revenue Department Building Commission, hereinafter referred to as the "Commission".
SECTION 3.
The Commission shall consist of five (5) members. The Commissioner of Revenues and the Secretary of State shall be, ex-officio, members, and Chairman and Secretary, respectively, of the Commission. Three (3) members of the Commission shall be appointed by the Governor from resident electors of this State.
SECTION 4.
Members of the Commission shall receive no pay for their services, but may receive expense reimbursement in accordance with Arkansas Code
25-16-901
et seq.
SECTION 5.
The terms of office of the original members of the Commission so appointed by the Governor shall commence upon qualification after appointment and shall be arranged by the Governor in such manner that the term of one of such members shall expire on the 14th day of January of each year, beginning with January 14, 1963. For each member appointed by the Governor for a regular term subsequent to the expiration of the term of the original member, the term of office shall commence on the 15th day of January following such expiration date and shall end on the 14th day of January of the third year following the year in which such regular term commenced. Any vacancies arising in the membership of the Commission so appointed by the Governor for any reason other than the expiration of the regular terms for which such members were appointed, shall be filled by appointment by the Governor, to be thereafter effective until the expiration of such regular term.
SECTION 6.
The Commission is hereby authorized to:
(a)
Arrange for a suitable site for the Revenue Department Building, on the State Capitol Grounds in Little Rock, Pulaski County, Arkansas; thereafter, on such site, construct and equip such building; and obtain the necessary funds for the construction and equipping thereof by the issuance of Revenue Bonds as hereinafter in this Act specified.
(b)
Arrange for the housing therein of the State Revenue Department and such other State agency or agencies as space and facilities may permit from time to time and with reference to other agencies, if any, to rent, lease, or otherwise make space available upon such terms and conditions and for such rentals, if any, as the Commission may determine;
(c)
Purchase, lease or rent any corporeal or personal property.
(d)
Receive bequests or donations of any real, corporeal or personal property.
(e)
Sell, barter, lease or rent any real, corporeal or personal property, or convert into money any such property which cannot be used in the form received.
(f)
Establish accounts in one or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
(g)
Contract and be contracted with.
(h)
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authority in this Act conferred and to carry out the intent and purposes of this Act.
SECTION 7.
Meetings of the Commission shall be held on call by the Chairman or by any three or more members on advance notice to each member, at such place or places as may suit the Commission's convenience. All meetings of the Commission shall be open to the public, and records of the proceedings thereof shall be kept. A quorum for the transaction of business at any meeting shall consist of not less than three (3) members, and the affirmative vote of three (3) members shall be requisite for the authorizing or approval of any action or the passage or adoption of any motion or resolution.
SECTION 8.
The Chairman of the Commission shall be custodian of all property held in the name of the Commission and shall be its disbursing agent and executive officer. The Commission may, by resolution duly adopted, delegate to the Chairman any of the powers or functions vested in or imposed upon it by this Act, and until such a resolution shall subsequently have been modified or rescinded, such delegated powers and functions may be exercised by the Chairman in the name of the Commission. The Chairman shall furnish bond to the State, with a corporate surety thereon, in the penal sum of Twenty-five Thousand Dollars ($25,000), conditioned that he will faithfully perform his powers, functions and duties and properly handle all funds received and disbursed by him and account therefor. An additional disbursing agent's bond shall not be required of the Chairman, and the bond so furnished shall be filed in the office of the Auditor of State. The premium on the bond shall be a proper charge against funds of the Commission.
SECTION 9.
The Revenue Department Building after its completion shall house the State Revenue Department, and shall contain facilities for the proper conduct of the business of said Department. In addition, the Revenue Department Building may house such other agency or agencies as space and facilities will permit from time to time.
SECTION 10.
All monies received from collections of the charge of $1.00 for each original and each duplicate certificate of title to a motor vehicle, as provided in Section 83 of Act 142 of the Acts of the General Assembly of the State of Arkansas for the year 1949, approved February 23, 1949, and Section 1 of Act 436 of the Acts of the General Assembly of the State of Arkansas for the year 1961, approved March 15, 1961, are hereby specifically declared to be cash funds. Said monies shall not be deposited in the State Treasury, but as soon as practicable after receipt shall be deposited in the "Revenue Department Building Fund", hereafter in this Act created. So long as any Revenue Bonds issued under this Act shall be outstanding, until the entire principal and interest on said outstanding bonds shall be paid or adequate provision made for the payment thereof, said charge shall be collected and the monies received therefrom shall be deposited, pledged and used as in this Act provided.
SECTION 11.
The Commissioner of Revenues is hereby authorized and directed to establish and maintain a permanent ledger record of all leases and agreements for the production or taking of oil, gas, casing-head gas, sand, gravel, coal or other minerals or hydrocarbons from the beds or bars of navigable rivers and lakes in the State of Arkansas or any other lands owned by or held in the name of the State of Arkansas. The person, firm, company, corporation or association entering into such a lease or agreement with the State of Arkansas shall pay to the Commissioner of Revenues a five dollar ($5.00) charge for the recording of each said lease or agreement in said permanent ledger record and the maintaining of said ledger record. The proceeds of said five dollar ($5.00) charge are hereby specifically declared to be cash funds and shall not be placed in the State Treasury but shall be deposited in the "Revenue Department Building Fund", hereafter in this Act created. So long as any Revenue Bonds issued under this Act shall be outstanding, until the entire principal of and interest on said outstanding bonds shall be paid or adequate provision made for the payment thereof, said charge shall be collected and the monies received therefrom shall be deposited, pledged and used as in this Act provided.
SECTION 12.
(a)
There is hereby created a Trust Fund which shall be designated "Revenue Department Building Fund" which shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. There shall be deposited into this fund the following:
(1)
All moneys collected on and after the first day of the month next following the effective date of this Act from the charge for Certificate of Title referred to in Section 10 of this Act.
(2)
All moneys collected from the charge imposed by Section 11 of this Act.
(3)
All moneys received by the Commission from any other source whatever, including, without limitation, rental from other agencies, if any.
(b)
All monies in the Revenue Department Building Fund shall be used solely, and in the order of priority, hereinafter specified:
(1)
Beginning on the first day of the month immediately following the month within which Revenue Bonds are issued under this Act, and continuing on the first day of each month thereafter until the principal of and interest on all bonds issued under this Act are paid, or adequate provision made for their payment, there shall be transferred from the Revenue Department Building Fund and deposited in a trust fund which is hereby created and designated "Revenue Department Building Bond Fund" (herein sometimes called "Bond Fund") a sum equal to at least one-sixth (1/6) of the next installment of interest and one-twelfth (1/12) of the next installment of principal and the amounts necessary to provide for the paying agent's fees, plus such additional amounts, if any, as shall be required to insure that on the next interest paying date and the next principal paying date there will be sufficient funds in the Bond Fund to pay the interest and principal then maturing and plus such additional amounts as shall be necessary to establish and maintain a reserve for contingencies in the Bond Fund (if the Commission deems it necessary or desirable to provide for such reserve) in such amount as the Commission may determine; provided, however, that if the amount deposited in the Bond Fund in any month pursuant to the preceding provisions of this Section 12 (b) (1) shall be less than fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act and less than one hundred percentum (100%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges imposed by Section 11 of this Act, there shall be deposited into the Bond Fund the additional amount necessary to make the total deposit for said month equal fifty percentum (50%) of said deposit of charges referred to in Section 10 and one hundred percentum (100%) of said deposit of charges imposed by Section 11. The Bond Fund shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. The monies in the Bond Fund shall be used for no other purpose than to pay the principal of, interest on, redemption premiums, if any, and paying agent's fees in connection with the bonds issued under this Act, at maturity or at redemption prior to maturity.
(2)
On the first day of the month next following the month in which collections from the charges referred to in Section 10 of this Act are first deposited into the Revenue Department Building Fund pursuant to the provisions of Section 12 (a) (1) and continuing on the first day of each month thereafter through the first day of the month immediately preceding the month on the first day of which deposits into the Bond Fund are required to be made pursuant to the provisions of Section 12 (b) (1), there shall be withdrawn from the Revenue Department Building Fund and deposited into the State Treasury as a special revenue and there credited to the Constitutional and Fiscal Agencies Fund fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act. Commencing on the first day of the month on which date deposits are required to be made into the Bond Fund pursuant to the provisions of Section 12 (b) (1) and continuing on the first day of each month thereafter as long as said deposits into the Bond Fund are required to be made, there shall be withdrawn from the Revenue Department Building Fund and deposited in the State Treasury (and, there credited as aforesaid) that portion of the amounts deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act not required to be deposited into the Bond Fund by the provisions of Section 12 (b) (1) of this Act but in no event more than fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from said charges referred to in Section 10.
(3)
The monies remaining in the Revenue Department Building Fund after the provisions of Section 12 (b) (1) and (2) have been fully complied with, may be used, at the option of the Commission, for the payment of the expenses of the Commission incurred in the carrying out of its functions and powers under this Act or may be transferred to the Bond Fund.
(c)
After the principal of and interest on all bonds issued under this Act are fully paid, or adequate provision made for their payment, all monies then remaining in the Revenue Department Building Fund and in the Bond Fund and all monies received from collections of the charges referred to in Section 10 of this Act and all monies received from collections of the charge imposed by Section 11 of this Act shall be deposited in the State Treasury as a special revenue, and by the State Treasurer credited to the Constitutional and Fiscal Agencies Fund.
SECTION 13.
(a)
The Commission is authorized and empowered to issue revenue bonds in the total principal amount of not to exceed One Million Six Hundred Thousand Dollars ($1,600,000) and to use the proceeds thereof for defraying the cost of constructing the Revenue Department Building (including, without limitation, all construction costs, architectural and engineering fees, legal fees and other necessary expenses), to defray the expenses of issuing the revenue bonds, to provide for the creation of a reserve for contingencies fund (if the Commission deems it necessary or desirable) and to provide for the payment of interest on the bonds, if necessary, until sufficient funds are available therefor in the Bond Fund.
(b)
Said revenue bonds shall be authorized by resolution of the Commission. The bonds shall be coupon bonds payable to bearer, may be made subject to registration as to principal only, may be dated on such date, may mature at such time or times, not exceeding twenty (20) years from date, may bear interest at such rate or rates, not exceeding four and one-half per cent (4 1/2%) per annum, may be in such form, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption, and may contain such terms, covenants and conditions not inconsistent with the provisions of this Act, as the authorizing resolution may provide, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of funds and reserves, the nature and extent of the security, the rights, duties and obligations of the Commission and the Trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds. Bonds issued hereunder shall have all the qualities of negotiable instruments under the Negotiable Instruments Laws of this State.
(c)
Revenue bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published once a week for three (3) consecutive weeks in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale. The Commission shall pay no fiscal agents' fees in connection with the sale or issuance of the bonds. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which shall be less than par and accrued interest on the basis of the interest rate bid, nor shall any bid be accepted which specifies an interest rate in excess of four and one-half per cent (4 1/2%) per annum. The bonds may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest upon such terms that the Commission receive no less and pay no more than it would receive and pay if the bonds were not converted and the conversion shall be subject to the approval of the Commission.
(d)
Revenue bonds issued hereunder shall be executed by the manual signature of the Chairman of the Commission and by the manual signature of the Secretary of the Commission. The coupons attached to the bonds shall be executed by the fascimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. The Commission shall adopt and use a seal in the execution and issuance of bonds authorized hereunder and each bond shall be sealed with the seal of the Commission.
SECTION 14.
It shall be plainly stated on the face of each revenue bond that the same has been issued under the provisions of this Act, and revenue bonds issued hereunder shall be general obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged. No member of the Commission shall be personally liable on the bonds, or for any damages sustained by anyone in connection with the contracts with the holders or registered owners of the bonds or the construction and equipping of the Revenue Department Building unless he shall have acted with a corrupt intent. All covenants and agreements entered into and made by the Commission shall be binding in all respects upon the Commission and the members thereof and their successors from time to time in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.
SECTION 15.
The principal of, interest on, and paying agent's fees in connection with the Revenue Bonds issued under this Act shall be secured by a pledge of the gross revenues collected from the charges referred to in Section 10 of this Act and the charges imposed by Section 11 of this Act and the gross revenues derived from the leasing or renting of space in the Revenue Department Building to other agencies (it being understood that although all of the gross revenues collected from the charges referred to in Section 10 of this Act are pledged that portion described in Section 12 of this Act not required by the provisions of said Section 12 to be deposited in the Bond Fund will be withdrawn from the Revenue Department Building Fund and deposited in the State Treasury and credited as in said Section 12 provided and the portion so withdrawn will at the time of withdrawal in accordance with the provisions of said Section 12 and thereafter be released from said pledge), which revenues have been elsewhere in this Act and are hereby specifically declared to be cash funds, restricted in their use, and dedicated and to be used solely as provided in this Act. The principal of, interest on, and paying agent's fees in connection with the bonds shall be payable solely from the monies in the Bond Fund and the monies required by this Act to be deposited in the Bond Fund.
SECTION 16.
All officers, departments, agencies and commissions of the State of Arkansas are hereby expressly authorized to execute and to enter into lease agreements with the Commission for the leasing of space in the Revenue Department Building when there is space therein over and above the requirements of the State Revenue Department. Such lease agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and particular state officer, agency or Commission to be appropriate and in the best interests of all concerned. All such lease agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor agency or commission performing the functions exercised by the agency or commission executing the lease agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.
SECTION 17.
Revenue bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.
SECTION 18.
The Board of Trustees of any retirement system created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in the bonds of the Commission issued under the provisions of this Act.
SECTION 19.
The agency of the State authorized by law to audit the records and accounts of the various state agencies is hereby authorized and directed to audit the records and accounts of the Commission, and to furnish a copy of the report thereof to the Commission.
SECTION 20.
The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the Arkansas Revenue Department Building, and to supervise and inspect such construction. After the Commission shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction and equipping of the Arkansas Revenue Department Building in accordance with applicable laws governing the constructing and equipping of public buildings.
SECTION 21.
This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.
SECTION 22.
This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until bonds authorized by this Act shall have been issued and actually sold by the Commission.
SECTION 23.
The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause, shall not affect the validity of the remainder of the Act.
SECTION 24.
On the first day of the month next following the effective date of this Act, the balance in the Revenue Department Building Fund in the State Treasury shall, by the State Treasurer, be transferred to the Constitutional and Fiscal Agencies Fund, there to be used, as appropriated by the General Assembly, for the operation and maintenance of the Revenue Department Building, and as of said date (the first day of the month next following the effective date of this Act) Act 266, approved March 14, 1961, and Sections 2, 3 and 4 of Act 436, approved March 15, 1961, are hereby repealed.
SECTION 25.
It has been found and it is hereby declared by the General Assembly: That the principal office of the State Revenue Department is, and should be, located on the State Capitol Grounds; that its present office space is wholly inadequate to permit it to properly carry out its functions and duties as required by law; that because of such inadequacy the State is losing badly needed tax revenue and the citizens of the State of Arkansas are seriously inconvenienced in dealing with the State Revenue Department; that no other office space is available to the State Revenue Department in the State Capitol Building or in other office buildings on the State Capitol Grounds; and that only by the immediate operation of this Act may such conditions be alleviated. Therefore, an emergency is herby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.
Acts 1961 (1st Ex. Sess.), No. 38, as amended by Acts 1997, No. 250APPROVED: 9/8/1961.