S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6844
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 22, 2017
                                ___________
 
 Introduced  by  M.  of  A. OAKS, KOLB, CROUCH, MALLIOTAKIS, BLANKENBUSH,
   CASTORINA, GIGLIO, HAWLEY, LUPINACCI, RA, WALTER -- Multi-Sponsored by
   -- M. of A.  LOPEZ, McDONOUGH, McLAUGHLIN, 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:
   §  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.
                                                            LBD89061-01-7

 A. 6844                             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.
   § 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.