S T A T E   O F   N E W   Y O R K
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                                  6588

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 10, 2013
                               ___________

Introduced by M. of A. TEDISCO, KOLB, CROUCH -- Multi-Sponsored by -- M.
  of  A.  THIELE  -- read once and referred to the Committee on Ways and
  Means

            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

  Section 1. Resolved (if the Senate concur), That section 11 of article
7 of the constitution be amended to read as follows:
  S 11. 1. Except the debts or refunding debts specified in sections  9,
10  and 13 of this article, [no debt shall be hereafter contracted by or
in behalf of the state, unless] AS AUTHORIZED IN SUBDIVISION 2 OR  3  OF
THIS  SECTION,  OR AS EXPRESSLY PROVIDED FOR ELSEWHERE IN THIS CONSTITU-
TION, THE STATE SHALL NOT ENTER INTO  ANY  FINANCING  OR  OTHER  SIMILAR
ARRANGEMENT,  WHETHER BY STATUTE, CONTRACT, LEASE, OR OTHERWISE, WHEREBY
THE STATE AGREES TO MAKE PAYMENTS WHICH WILL BE USED DIRECTLY  OR  INDI-
RECTLY, FOR THE PAYMENT OF INTEREST, INSTALLMENTS OF PRINCIPAL, CONTRIB-
UTIONS  TO  SINKING FUNDS, OR RELATED PAYMENTS ON INDEBTEDNESS ISSUED OR
CONTRACTED BY ANY STATE AGENCY, MUNICIPALITY, INDIVIDUAL, OR  PUBLIC  OR
PRIVATE  CORPORATION  FOR  STATE  PURPOSES OR TO FINANCE GRANTS OR LOANS
MADE OR TO BE MADE BY OR ON BEHALF OF THE STATE  FOR  ANY  PURPOSE.  THE
RESTRICTIONS  IN  THIS  SUBDIVISION SHALL APPLY WHETHER OR NOT THE OBLI-
GATION OF THE STATE TO MAKE SUCH PAYMENTS IS SUBJECT TO APPROPRIATION OR
IS OTHERWISE CONTINGENT.
  2. THE STATE MAY CONTRACT DEBT WHICH IS SECURED BY  A  PLEDGE  OF  THE
FULL  FAITH  AND CREDIT OF THE STATE IF such debt shall be authorized by
law, for some single CAPITAL work or purpose, to be distinctly specified
therein[. No]; PROVIDED THAT NO such law  shall  take  effect  until  it
shall,  at  a  general  election, have been submitted to the people, and
have received a majority of all the votes cast for  and  against  it  at
such  election  nor  shall  it  be submitted to be voted on within three

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD89089-01-3
              

A. 6588                             2

months after its passage nor at any general election when any other  law
or any bill shall be submitted to be voted for or against.
  3.  THE  STATE  MAY ALSO CONTRACT DEBT, IN A MANNER PRESCRIBED BY LAW,
WHICH SHALL BE SECURED BY A PLEDGE OF SPECIFIC REVENUES  OF  THE  STATE.
THE  LEGISLATURE SHALL, BY LAW, IDENTIFY THE CAPITAL WORKS OR PURPOSE TO
BE FINANCED WITH SUCH DEBT. REVENUES IN EXCESS OF THE REQUIRED  PAYMENTS
OF  INTEREST  AND  INSTALLMENT  PAYMENTS  OF PRINCIPAL, CONTRIBUTIONS TO
SINKING FUNDS, AND OTHER PAYMENTS RELATING TO SUCH DEBT  SHALL  BE  MADE
AVAILABLE FOR SUCH OTHER PURPOSES, AS PROVIDED BY LAW.
  4.  THE  STATE MAY NOT CONTRACT DEBT PURSUANT TO SUBDIVISION 3 OF THIS
SECTION DURING ANY SINGLE FISCAL YEAR IN EXCESS OF  THIRTY-FIVE  PERCENT
OF  THE TOTAL AMOUNT OF CAPITAL WORKS IN SUCH FISCAL YEAR, PROVIDED THAT
THE LIMIT MAY BE INCREASED TO FIFTY PERCENT FOR ANY YEAR IN WHICH  TOTAL
STATE  REVENUES  DECLINE,  EXCLUDING  DECLINES CAUSED BY A CHANGE IN THE
RATE OF TAXATION, BY TWO PERCENT OR MORE. THE LIMIT SHALL BE REDUCED  TO
FORTY-FIVE  PERCENT  OF  THE  TOTAL AMOUNT OF CAPITAL WORKS IN THE FIRST
YEAR SUCCEEDING A YEAR WHEN REVENUES DECLINE BY TWO PERCENT OR MORE, AND
TO FORTY PERCENT IN THE SECOND YEAR  SUCCEEDING  A  YEAR  WHEN  REVENUES
DECLINE  BY  TWO  PERCENT OR MORE. THE LIMIT SHALL RETURN TO THIRTY-FIVE
PERCENT OF THE TOTAL AMOUNT OF CAPITAL WORKS FOR  ALL  OTHER  SUCCEEDING
YEARS.
  5. The legislature may, at any time [after the approval of such law by
the  people], if no debt shall have been contracted in pursuance [there-
of], OF A PARTICULAR LAW AUTHORIZED UNDER SUBDIVISION 2  OR  3  OF  THIS
SECTION  repeal  [the  same]  SUCH  LAW AUTHORIZING THE ISSUANCE OF SUCH
DEBT; and may at any time, by law, forbid the contracting of any further
debt or liability under such law.
  6. NO DEBT MAY BE CONTRACTED PURSUANT TO SUBDIVISION 2 OR  3  OF  THIS
SECTION, EXCEPT TO FINANCE CAPITAL WORKS OR PURPOSES.
  7.  THE  STATE MAY CONTRACT DEBT TO REFUND DEBT CONTRACTED PURSUANT TO
SUBDIVISION 2  OR  3  OF  THIS  SECTION  PROVIDED  SUCH  REFUNDINGS  ARE
CONDUCTED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION 13 OF THIS ARTI-
CLE.
  8. THE PROVISIONS OF SUBDIVISION 1 OF THIS SECTION SHALL NOT  PROHIBIT
THE  STATE  FROM  PROVIDING  MONIES FOR ANY OF THE OBLIGATIONS HEREAFTER
PROHIBITED  BY  SAID  SUBDIVISION  1,  INCLUDING  PAYMENT  OF  INTEREST,
INSTALLMENT  PAYMENTS  OF  PRINCIPAL, CONTRIBUTIONS TO SINKING FUNDS, OR
RELATED PAYMENTS OR OBLIGATIONS TO  THE  EXTENT  SUCH  OBLIGATIONS  WERE
CONTRACTED FOR OR OTHERWISE INCURRED PRIOR TO THE EFFECTIVE DATE OF SUCH
SUBDIVISION  OR  ON  OBLIGATIONS  ISSUED  TO  REFUND  SUCH  OBLIGATIONS,
PROVIDED SUCH REFUNDINGS ARE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 13 OF THIS ARTICLE.
  S 2. Resolved (if the Senate concur), That the foregoing amendment  be
referred  to  the  first regular legislative session convening after the
next succeeding general election of members of  the  assembly,  and,  in
conformity  with  section  1  of  article  19  of  the  constitution, be
published for 3 months previous to the time of such election.