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REFERENCE TITLE: debt; limit; restrictions |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HCR 2036 |
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Introduced by Representative Olson
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A CONCURRENT RESOLUTION
PROPOSING AN AMENDMENT TO THE CONSTITUTION OF ARIZONA; AMENDING ARTICLE IX, SECTION 5, CONSTITUTION OF ARIZONA; RELATING TO the POWER OF the STATE TO CONTRACT DEBT.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:
1. Article IX, section 5, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:
5. Power of state to contract debts; purposes; limit; restrictions
Section 5. A. The state may contract debts to supply the casual deficits or failures in revenues, or to meet expenses not otherwise provided for; but:
1. The aggregate amount of such debts, direct and contingent, whether contracted by virtue of one or more laws, or at different periods of time, shall never exceed the sum of three hundred and fifty thousand dollars. ; and
2. The legislature must provide for a source of revenue other than the state general fund to pay principal, interest, issuance, redemption and administrative costs of debts that are authorized by any law enacted after December 31, 2014, except that any debt incurred before that date may be refinanced after that date without a separate source of revenue.
3. The money arising from the creation of such debts shall be applied to the purpose for which it was obtained or to repay the debts so contracted, and to no other purpose.
B. In addition to the above limited power to contract debts the state may borrow money to repel invasion, suppress insurrection, or defend the state in time of war; but the money thus raised shall be applied exclusively to the object for which the loan shall have been authorized or to the repayment of the debt thereby created.
C. Bond issues and other obligations that are secured by the full faith and credit of this state are subject to approval by the qualified electors as provided by article VII, section 13 of this constitution.
D. Except as provided by subsection E of this section, this section applies to:
1. Any obligation of this state or of any department, office, agency, commission, board or other instrumentality of state government regardless of the source of revenues or funds pledged for the payment of the obligation, including instruments commonly known as general obligation bonds, revenue bonds, long‑term notes and obligations and certificates of participation and other instruments of indebtedness pursuant to lease-purchase and similar financing agreements.
2. Any obligation, however denominated, incurred for the acquisition of any major capital asset by this state or any department, office, agency, commission, board or other instrumentality of state government.
E. This section does not apply to:
1. Counties, cities, towns, school districts and other municipal corporations that are subject to debt limits prescribed by sections 8 and 8.1 of this article or any other provision of this constitution.
2. Property improvement assessment districts, improvement districts and other special purpose taxing districts and political subdivisions of this state that have the authority to independently impose or levy taxes or assessments for their respective purposes.
3. Bonds and other obligations issued or incurred by public authorities established by law if the bonds and obligations are not secured by state general fund revenues.
4. Bonds or other obligations issued or incurred by a political subdivision or municipal corporation, or another entity established for a specific purpose, but paid in whole or in part from state general fund revenues.
5. Short-term warrant notes that are used solely for cash management purposes.
6. Any obligation for the restoration of payments deferred from one fiscal year to another.
7. Bonds and other obligations for the purchase or construction of streets, highways, public transportation systems or other major capital assets that are issued or incurred by a state transportation agency or that are paid in whole or in part by fees, excises or license taxes relating to registration, operation or use of vehicles on the public highways or to fuels or other energy sources used for the propulsion of vehicles on the public highways or streets as provided by section 14 of this article.
8. Bonds and other obligations that are issued or incurred by or on behalf of universities under the jurisdiction of the Arizona board of regents, or by community colleges, for the purchase or construction of major capital assets.
9. Obligations incurred by:
(a) Any retirement system established for state officers or employees.
(b) An unemployment compensation fund or successor entity established by law.
(c) A workers' compensation system established pursuant to article XVIII, section 8 of this constitution.
F. No money shall be paid out of the state treasury, except in the manner provided by law.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.