§ 15-5-213 - Correction Facilities Construction Fund. - Arkansas Statutes

15-5-213. Correction Facilities Construction Fund.

(a) There is established on the books of the Arkansas Development Finance Authority a special restricted fund to be known as the "Correction Facilities Construction Fund". This fund shall be administered in accordance with the provisions of this section.

(b) The fund shall receive moneys payable from the Treasurer of State in accordance with 15-5-422. All moneys deposited in the fund and all income, interest, and earnings therefrom are declared to be cash funds restricted in their use and dedicated and are to be used solely for acquisition and construction of regional correction facilities for use by the Department of Correction, specifically including a regional correction facility in Chicot County, which facility will be leased to and utilized by the department.

(c) The fund shall be held and the amounts therein invested by the authority only in accordance with this section. The moneys in the fund shall be invested by the authority in accordance with the restrictions established for the Bond Guaranty Reserve Account provided for in 15-5-407. The fund and the moneys in the fund shall not be part of the general funds of the authority subject to claims of the general creditors of the authority. The fund may be pledged by the authority upon proper authorization of the Board of Directors of the Arkansas Development Finance Authority only to secure repayment of obligations of the authority, the proceeds of which are used to construct or acquire correction facilities as specified in subsection (b) of this section.

(d) After July 1, 2008, as the authority no longer has outstanding obligations, the proceeds of which have been used to construct and acquire correction facilities as specified in subsection (b) of this section, all amounts remaining in the fund shall be paid by the authority to the Treasurer of State.

(e) (1) There is created within the Correction Facilities Construction Fund of the Arkansas Development Finance Authority an account entitled the "Correction Facilities Privatization Account", and the account shall receive:

(A) Moneys payable from funds in the Department of Correction as established in 12-27-128;

(B) Such moneys as are transferred pursuant to 22-3-1210(c); and

(C) Such cash funds of the department as are deemed necessary by the Chief Fiscal Officer of the State for the purposes established herein.

(2) All moneys deposited in the Correction Facilities Privatization Account and all income, interest, and earnings therefrom are declared to be cash funds restricted in their use and dedicated to be used solely for acquisition, construction, and rehabilitation of correction facilities for the use and benefit of the department or for payments to private contractors for the use of correction facilities by the department.

(3) The moneys deposited in the account shall not be subject to the provisions of subsection (d) of this section.

(4) The account shall not be subject to distribution to the Treasurer of State, and the account shall remain as an account of the authority.