AN ACT TO AMEND CHAPTER 709, VOLUME 60, LAWS OF DELAWARE AND SECTION 7422, TITLE 29, DELAWARE CODE, RELATING TO LIMITATIONS ON THE AUTHORIZATION OF GENERAL OBLIGATION BONDS OF THE STATE OF DELAWARE.
Section 1. Amend Chapter 709, Volume 60, Laws of Delaware, by adding the following sentences at the end of Section 1:
"For purposes of complying with this Section, the General Assembly of the State of Delaware shall not authorize the issuance of additional general obligation bonds or notes by the State, in any fiscal year of the State, which pledge the faith and credit of the State to the payment of the principal of and interest on such obligations, if the aggregate amount of such obligations authorized in any fiscal year of the State exceeds an amount equal to seventy-five percent of the aggregate principal amount of such obligations issued by the State and retired in the next prior fiscal year from a source other than the proceeds of such obligations. In determining the amount of such obligations that may be authorized, the General Assembly may increase the amount to be authorized in any fiscal year for appropriation to a Department of the State or for appropriation to the State Board of Education, to Delaware Technical and Community College, to the University of Delaware or to Delaware State College, by an amount equal to the aggregate principal amount of such obligations authorized to be issued by the State, the authorization for which has been duly repealed or reduced by the General Assembly in such fiscal year for such Department or predecessor of such Department, whether or not such authorization was adopted prior to the formation of such Department, or for the State Board of Education, Delaware Technical and Community College, the University of Delaware, or Delaware State College, respectively."
Section 2. Amend Section 7422, Title 29, Delaware Code, by designating the present provision as subsection (a) and by adding a new subsection (b) to read as follows:
"(b) The authorization by the General Assembly of the State of Delaware of General Obligation Bonds shall be limited in any fiscal year to 75 percent (seventy-five percent) of the Principal Retirement of the prior fiscal year. For purposes of complying with this Section, the General Assembly of the State of Delaware shall not authorize the issuance of additional general obligation bonds or notes by the State, in any fiscal year of the State, which pledge the faith and credit of the State to the payment of the principal of and interest on such obligations, if the aggregate amount of such obligations authorized in any fiscal year of the State exceeds an amount equal to seventy-five percent of the aggregate principal amount of such obligations issued by the State and retired in the next prior fiscal year from a source other than the proceeds of such obligations. In determining the amount of such obligations that may be authorized, the General Assembly may increase the amount to be authorized in any fiscal year for appropriation to a Department of the State or for appropriation to the State Board of Education, to Delaware Technical and Community College, to the University of Delaware or to Delaware State College, by an amount equal to the aggregate principal amount of such obligations authorized to be issued by the State, the authorization for which has been duly repealed or reduced by the General Assembly in such fiscal year for such Department or predecessor of such Department, whether or not such authorization was adopted prior to the formation of such Department, or for the State Board of Education, Delaware Technical and Community College, the University of Delaware, or Delaware State College, respectively."
Section 3. This Act shall be deemed to be effective on July 1, 1978
Approved June 29, 1978.