A03130 Summary:

COSPNSRBarclay, Blankenbush, Giglio JM, Thiele, Hawley, Brabenec
Amd Art 7 §11, Constn
Prohibits certain borrowing arrangements; relates to the authorization for the contracting of debt; relates to the manner by which payments are appropriated and paid.
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A03130 Actions:

02/02/2023referred to ways and means
02/03/2023to attorney-general for opinion
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A03130 Floor Votes:

There are no votes for this bill in this legislative session.
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A03130 Memo:

Memo not available
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A03130 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    February 2, 2023
        Introduced  by  M. of A. RA, BARCLAY, BLANKENBUSH, J. M. GIGLIO, THIELE,
          HAWLEY, BRABENEC -- Multi-Sponsored by -- M. of A. McDONOUGH  --  read
          once and referred to the Committee on Ways and Means
        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 Senate concur), That section 11 of article
     2  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  or
     5  in  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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 3130                             2
     1  months  after its passage nor at any general election when any other law
     2  or any bill shall be submitted to be voted for or against.
     3    3.  The  state  may also contract debt, in a manner prescribed by law,
     4  which shall be secured by a pledge of specific revenues  of  the  state.
     5  The  legislature shall, by law, identify the capital works or purpose to
     6  be financed with such debt. Revenues in excess of the required  payments
     7  of  interest  and  installment  payments  of principal, contributions to
     8  sinking funds, and other payments relating to such debt  shall  be  made
     9  available for such other purposes, as provided by law.
    10    4.  The  state may not contract debt pursuant to subdivision 3 of this
    11  section during any single fiscal year in excess of  thirty-five  percent
    12  of  the total amount of capital works in such fiscal year, provided that
    13  the limit may be increased to fifty percent for any year in which  total
    14  state  revenues  decline,  excluding  declines caused by a change in the
    15  rate of taxation, by two percent or more. The limit shall be reduced  to
    16  forty-five  percent  of  the  total amount of capital works in the first
    17  year succeeding a year when revenues decline by two percent or more, and
    18  to forty percent in the second year  succeeding  a  year  when  revenues
    19  decline  by  two  percent or more. The limit shall return to thirty-five
    20  percent of the total amount of capital works for  all  other  succeeding
    21  years.
    22    5. The legislature may, at any time [after the approval of such law by
    23  the  people], if no debt shall have been contracted in pursuance [there-
    24  of], of a particular law authorized under subdivision 2  or  3  of  this
    25  section  repeal  [the  same]  such  law authorizing the issuance of such
    26  debt; and may at any time, by law, forbid the contracting of any further
    27  debt or liability under such law.
    28    6. No debt may be contracted pursuant to subdivision 2 or  3  of  this
    29  section, except to finance capital works or purposes.
    30    7.  The  state may contract debt to refund debt contracted pursuant to
    31  subdivision 2  or  3  of  this  section  provided  such  refundings  are
    32  conducted  in accordance with the provisions of section 13 of this arti-
    33  cle.
    34    8. The provisions of subdivision 1 of this section shall not  prohibit
    35  the  state  from  providing  monies for any of the obligations hereafter
    36  prohibited  by  said  subdivision  1,  including  payment  of  interest,
    37  installment  payments  of  principal, contributions to sinking funds, or
    38  related payments or obligations to  the  extent  such  obligations  were
    39  contracted for or otherwise incurred prior to the effective date of such
    40  subdivision  or  on  obligations  issued  to  refund  such  obligations,
    41  provided such refundings are conducted in accordance with the provisions
    42  of section 13 of this article.
    43    § 2. Resolved (if the Senate concur), That the foregoing amendment  be
    44  referred  to  the  first regular legislative session convening after the
    45  next succeeding general election of members of  the  assembly,  and,  in
    46  conformity  with  section  1  of  article  19  of  the  constitution, be
    47  published for 3 months previous to the time of such election.
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