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SECTION 67-B
Limitations on the issuance of state-supported debt
State Finance (STF) CHAPTER 56, ARTICLE 5-B
§ 67-b. Limitations on the issuance of state-supported debt. 1. (a)
State-supported debt may not be contracted for unless, as of October
thirty-first, two thousand one and as of each October thirty-first
thereafter, the total outstanding principal amount of such debt, as of
the last day of the immediately preceding fiscal year, is less than the
designated percentage of the total personal income of the state. Nothing
shall preclude the contracting of state-supported debt prior to October
thirty-first of each year if, as of the last day of the immediately
preceding fiscal year, the total outstanding principal amount of such
debt was less than the designated percentage of the total personal
income of the state. The total outstanding principal amount of debt
shall include all state-supported debt issued on and after April first,
two thousand. Such designated percentage shall be seven and
one-half-tenths of one percent for fiscal year two thousand--two
thousand one, and shall increase by five-tenths of one percent in fiscal
year two thousand one--two thousand two, by an additional four-tenths of
one percent in fiscal year two thousand two--two thousand three, and by
an additional one-third of one percent in each of the seven subsequent
fiscal years. The designated percentage for fiscal year two thousand
ten--two thousand eleven and for each fiscal year thereafter shall be
four percent.

(b) If state-supported debt is issued to refund or otherwise affect
the refunding, retirement or defeasance of state-supported debt
originally issued on and after April first, two thousand, provided such
refundings are conducted in accordance with section thirteen of article
VII of the state constitution, the calculation of the total outstanding
principal amount of debt shall exclude such refunding debt, and shall
only include the amount of prior refunded debt, as if it were still
outstanding, in each year until such refunding debt is finally retired.
Notwithstanding the foregoing, the provisions of such section thirteen
of article VII of the state constitution relating to the maintenance or
management of escrow funds and sinking funds shall only be applicable to
state-supported debt issued by the state comptroller. If state-supported
debt is issued to refund or otherwise affect the refunding, retirement
or defeasance of state-supported debt issued prior to April first, two
thousand, then the amount of such refunding debt shall be excluded from
the calculation of the total outstanding principal amount of debt in
each year until such refunding debt is finally retired. In addition, if
state-supported debt is retired or defeased with payments in any fiscal
year made by the state that are not required by mandatory payments, such
debt shall be excluded from the calculation of the total outstanding
principal amount of debt, including retirements or defeasances
accomplished on an economic basis.

2. State-supported debt may not be contracted for unless, as of
October thirty-first, two thousand one and as of each October
thirty-first thereafter, the total amount of interest, installments of
principal, contributions to sinking funds, and related payments on a
cash basis of accounting for state-supported debt in the immediately
preceding fiscal year is less than the designated percentage of total
governmental funds receipts for such fiscal year. Nothing shall preclude
the contracting of state-supported debt prior to October thirty-first of
each year if, in the immediately preceding fiscal year, the total amount
of interest, installments of principal, contributions to sinking funds,
and related payments was less than the designated percentage of total
governmental funds receipts. This shall include the total amount of
payments on such debt issued on and after April first, two thousand, but
shall not include payments in any fiscal year made by the state to
defease or retire debt not required by mandatory payments nor payments
made by the state for debt issued to refund debt that was issued prior
to April first, two thousand. In addition, if state-supported debt is
issued to refund or otherwise affect the refunding, retirement or
defeasance of state-supported debt originally issued on and after April
first, two thousand, provided such refundings are conducted in
accordance with section thirteen of article VII of the state
constitution, the calculation of the total amount of interest,
installments of principal, contributions to sinking funds, and related
payments shall exclude payments made on such refunding debt, and shall
only include the payments on the prior refunded debt, as if it were
still outstanding, in each year until such refunding debt is finally
retired. Such designated percentage shall be seven and one-half-tenths
of one percent for fiscal year two thousand--two thousand one, and shall
increase by five-tenths of one percent in fiscal year two thousand
one--two thousand two, by an additional four-tenths of one percent in
fiscal year two thousand two--two thousand three, and by an additional
one-third of one percent in each of the ten subsequent fiscal years. The
designated percentage for fiscal year two thousand thirteen--two
thousand fourteen and for each fiscal year thereafter shall be five
percent.

3. No state-supported debt shall be contracted except to finance
capital works or purposes.

4. Notwithstanding any other provision of law to the contrary, no
state-supported debt shall be issued with a final maturity of more than
thirty years.

5. The provisions of this section shall apply to debt issued pursuant
to section nine of article VII of the state constitution only to the
extent that such notes remain outstanding.