(a)

(1) Arkansas Unemployment Trust Fund Bonds shall not be issued under this subchapter unless the issuance of bonds has been approved by a majority of the qualified electors of the state voting on the question at a statewide election called by proclamation of the Governor as provided under § 11-10-1005.

(2)

(A) An election under this section may be in conjunction with a general election, or it may be a special election.

(B) A special election held under this section shall occur on the second Tuesday of any month, except as otherwise provided for in this subsection.

(C) A special election that is held in months in which a presidential preferential primary election, preferential primary election, general primary election, or general election is scheduled to occur shall be held on the date of the presidential preferential primary election, preferential primary election, general primary election, or general election.

(D)

(i) If a special election is held on the date of the presidential preferential primary election, preferential primary election, or general primary election, the issue or issues to be voted upon at the special election shall be included on the ballot of each political party.

(ii) However, separate ballots containing only the issue or issues to be voted upon at the special election shall be prepared and made available to voters requesting a separate ballot.

(iii) A voter shall not be required to vote in a political party's presidential preferential primary election, preferential primary election, or general primary election in order to be able to vote in the special election.

(E) Special elections scheduled to occur in a month in which the second Tuesday is a legal holiday shall be held on the third Tuesday of the month.

(b) (1) Notice of the election shall be:

(A) Published by the Secretary of State in a newspaper of general circulation in the state at least thirty (30) days prior to the election; and

(B) Mailed to each county board of election commissioners and the sheriff of each county at least sixty (60) days prior to the election.

(2) The notice of election shall state that the election is to be held for the purpose of submitting to the people the following proposition in substantially the following form:

"Authorizing the Arkansas Development Finance Authority to issue Arkansas Unemployment Trust Fund Bonds (the 'Bonds') in a total principal amount not to exceed five hundred million dollars ($500,000,000). If approved, the bonds may be issued in one (1) or more series for the purpose of repaying the principal of and interest on advances from the federal trust fund under Title XII of the Social Security Act, 42 U.S.C. § 1321, paying the costs of issuance of the bonds including without limitation the costs of bond insurance or other credit enhancement, paying unemployment benefits by depositing bond proceeds into the Unemployment Compensation Fund, providing a debt service reserve, and paying capitalized interest on the bonds for a period not to exceed two (2) years.

The bonds shall be payable from certain designated revenues. Under the Unemployment Trust Fund Financing Act of 2011, ('the Bond Act'), the bonds will be repaid from an unemployment obligation assessment imposed on employers. The bonds shall be issued under the authority of and the terms set forth in the Bond Act.

The unemployment obligation assessment shall be based on the aggregate principal amount of bonds issued for nonrefunding purposes and shall be determined by multiplying the employer's contribution rate in effect on the date that the Governor issues a proclamation calling an election on the issuance of the bonds for employers with accounts as of such date and the employer's contribution rate as of the employer's liability date for employers establishing accounts after the date of the proclamation by:

(a) 25% if the aggregate principal amount of bonds issued is $350,000,000 or less;

(b) 30% if the aggregate principal amount of bonds issued is $350,000,001 to $400,000,000;

(c) 33.5% if the aggregate principal amount of bonds issued is $400,000,001 to $450,000,000; and

(d) 37.5% if the aggregate principal amount of bonds issued is $450,000,001 to $500,000,000."

(c) The ballot title shall be "Issuance of Arkansas Unemployment Trust Fund Bonds, and levy and pledge of an unemployment obligation assessment". On each ballot there shall be printed the title, the proposition set forth in subdivision (b)(2) of this section, and the following:

"AGAINST issuance of Arkansas Unemployment Trust Fund Bonds in an amount not to exceed $500,000,000, and levy and pledge of an unemployment obligation assessment......................[]"

(d) The notice and ballot shall contain a definition of "employer's contribution rate" as described in §§ 11-10-704 and 11-10-705.

(e)

(1) Each county board of election commissioners shall hold and conduct the election and may take any action with respect to the appointment of election officials and other matters as required by the laws of the state.

(2)

(A) The vote shall be canvassed and the result of the vote declared in each county by the board.

(B) Within ten (10) days after the date of the election, the results shall be certified by the boards to the Secretary of State, who shall tabulate all returns received and certify to the Governor the total vote for and against the proposition submitted pursuant to this subchapter.

(f)

(1) The result of the election shall be proclaimed by the Governor by the publication of a proclamation one (1) time in a newspaper of general circulation in the State of Arkansas.

(2) The results as proclaimed shall be conclusive unless a complaint challenging the proclaimed results is filed in Pulaski County Circuit Court within thirty (30) days after the date of the publication.

(g)

(1) If a majority of the qualified electors voting on the proposition vote in favor of the proposition, the Arkansas Development Finance Authority shall proceed with the issuance of the bonds in the manner and on the terms set forth in this subchapter.

(2) If a majority of the qualified electors voting on the proposition vote against the issuance of the bonds, the Arkansas Development Finance Authority shall have no authority to issue bonds.

(h) Subsequent elections may be called by the Governor if the proposition fails, but each such subsequent election may be held no earlier than six (6) months after the date of the preceding election.