New York S 1569: Prohibits certain borrowing arrangements

Bill Text

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 Speaker Carl E. Heastie

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S01569 Summary:

BILL NOS01569 

&nbsp

SAME ASSAME AS A02155

&nbsp

SPONSORTEDISCO

&nbsp

COSPNSRWALCZYK

&nbsp

MLTSPNSR

&nbsp

Amd Art 7 §11, Constn

&nbsp

Prohibits certain borrowing arrangements; relates to the authorization for the contracting of debt; relates to the manner by which payments are appropriated and paid.

Go to top S01569 Actions:

BILL NOS01569 

&nbsp

01/10/2025REFERRED TO JUDICIARY

01/13/2025TO ATTORNEY-GENERAL FOR OPINION

01/31/2025OPINION REFERRED TO JUDICIARY

01/07/2026REFERRED TO JUDICIARY

01/08/2026TO ATTORNEY-GENERAL FOR OPINION

02/03/2026OPINION REFERRED TO JUDICIARY

Go to topS01569 Committee&nbspVotes:

Go to topS01569 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS01569 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1569

 2025-2026 Regular Sessions

 IN SENATE

 January 10, 2025
 ___________

 Introduced by Sens. TEDISCO, WALCZYK -- 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 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
 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.
 LBD89043-01-5

 S. 1569 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