Bill Text: NY S04402 | 2017-2018 | General Assembly | Introduced
Bill Title: Prohibits certain borrowing arrangements; relates to the authorization for the contracting of debt; relates to the manner by which payments are appropriated and paid.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-15 - OPINION REFERRED TO JUDICIARY [S04402 Detail]
Download: New_York-2017-S04402-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4402 2017-2018 Regular Sessions IN SENATE February 13, 2017 ___________ Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing amendments to article 7 of the constitution, in relation to the prohibition of certain borrowing arrangements and the authori- zation for the contracting of debt 1 Section 1. Resolved (if the Assembly concur), That section 11 of arti- 2 cle 7 of the constitution be amended to read as follows: 3 § 11. 1. Except the debts or refunding debts specified in sections 9, 4 10 and 13 of this article, [no debt shall be hereafter contracted by or5in behalf of the state, unless] as authorized in subdivision 2 or 3 of 6 this section, or as expressly provided for elsewhere in this constitu- 7 tion, the state shall not enter into any financing or other similar 8 arrangement, whether by statute, contract, lease, or otherwise, whereby 9 the state agrees to make payments which will be used directly or indi- 10 rectly, for the payment of interest, installments of principal, contrib- 11 utions to sinking funds, or related payments on indebtedness issued or 12 contracted by any state agency, municipality, individual, or public or 13 private corporation for state purposes or to finance grants or loans 14 made or to be made by or on behalf of the state for any purpose. The 15 restrictions in this subdivision shall apply whether or not the obli- 16 gation of the state to make such payments is subject to appropriation or 17 is otherwise contingent. 18 2. The state may contract debt which is secured by a pledge of the 19 full faith and credit of the state if such debt shall be authorized by 20 law, for some single capital work or purpose, to be distinctly specified 21 therein[. No]; provided that no such law shall take effect until it 22 shall, at a general election, have been submitted to the people, and 23 have received a majority of all the votes cast for and against it at 24 such election nor shall it be submitted to be voted on within three 25 months after its passage nor at any general election when any other law 26 or any bill shall be submitted to be voted for or against. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD89061-01-7S. 4402 2 1 3. The state may also contract debt, in a manner prescribed by law, 2 which shall be secured by a pledge of specific revenues of the state. 3 The legislature shall, by law, identify the capital works or purpose to 4 be financed with such debt. Revenues in excess of the required payments 5 of interest and installment payments of principal, contributions to 6 sinking funds, and other payments relating to such debt shall be made 7 available for such other purposes, as provided by law. 8 4. The state may not contract debt pursuant to subdivision 3 of this 9 section during any single fiscal year in excess of thirty-five percent 10 of the total amount of capital works in such fiscal year, provided that 11 the limit may be increased to fifty percent for any year in which total 12 state revenues decline, excluding declines caused by a change in the 13 rate of taxation, by two percent or more. The limit shall be reduced to 14 forty-five percent of the total amount of capital works in the first 15 year succeeding a year when revenues decline by two percent or more, and 16 to forty percent in the second year succeeding a year when revenues 17 decline by two percent or more. The limit shall return to thirty-five 18 percent of the total amount of capital works for all other succeeding 19 years. 20 5. The legislature may, at any time [after the approval of such law by21the people], if no debt shall have been contracted in pursuance [there-22of], of a particular law authorized under subdivision 2 or 3 of this 23 section repeal [the same] such law authorizing the issuance of such 24 debt; and may at any time, by law, forbid the contracting of any further 25 debt or liability under such law. 26 6. No debt may be contracted pursuant to subdivision 2 or 3 of this 27 section, except to finance capital works or purposes. 28 7. The state may contract debt to refund debt contracted pursuant to 29 subdivision 2 or 3 of this section provided such refundings are 30 conducted in accordance with the provisions of section 13 of this arti- 31 cle. 32 8. The provisions of subdivision 1 of this section shall not prohibit 33 the state from providing monies for any of the obligations hereafter 34 prohibited by said subdivision 1, including payment of interest, 35 installment payments of principal, contributions to sinking funds, or 36 related payments or obligations to the extent such obligations were 37 contracted for or otherwise incurred prior to the effective date of such 38 subdivision or on obligations issued to refund such obligations, 39 provided such refundings are conducted in accordance with the provisions 40 of section 13 of this article. 41 § 2. Resolved (if the Assembly concur), That the foregoing amendment 42 be referred to the first regular legislative session convening after the 43 next succeeding general election of members of the assembly, and, in 44 conformity with section 1 of article 19 of the constitution, be 45 published for 3 months previous to the time of such election.
