S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1262
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2021
                                ___________
 
 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
 
   Section 1. Resolved (if the Assembly concur), That section 11 of arti-
 cle 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD89055-01-1

 S. 1262                             2
 
   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 Assembly 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.