Delaware General Assembly

AN ACT IMPOSING RESTRICTIONS ON THE BORROWING POWER OF THE STATE.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Sections 7401 through 7415 of Title 29, Delaware Code, are designated as Subchapter I of Chapter 74, Title 29, Delaware Code, with the following caption:

Section 2. Chapter 74, Title 29, Delaware Code, is amended by adding thereto a new Subchapter to read:

SUBCHAPTER II. LIMITATION ON BORROWING POWER

§ 7421. Definitions

"Bonds and notes pledging the faith and the credit of the State" means any bonds or notes pledging the faith and the credit of the State issued to evidence money borrowed or debt created including guaranteed debt by or on behalf of the State which requires an Act of the General Assembly passed with the concurrence of three fourths of all the members elected to each House.

"Revenue" means all sums of money deposited in the General Fund of this State except that portion of the net receipts derived from inheritance, estate or other death succession taxes exceeding 2 million dollars in any fiscal year.

(a) The total amount of bonds or notes pledging the faith and the credit of the State outstanding, authorized but not issued or authorized to be issued, shall not exceed-

(1) during the fiscal year ending June 30, 1956, 3.8 times the total Revenue for the preceding fiscal year;

(2) during the fiscal year ending June 30, 1966, 3.6 times the total Revenue for the preceding fiscal year;

(3) during the fiscal year ending June 30, 1967, 3.4 times the total Revenue for the preceding fiscal year;

(4) during the fiscal year ending June 30, 1968, 3.2 times the total Revenue for the preceding fiscal year;

(5) during the fiscal year ending June 30, 1969, 3.0 times the total Revenue for the preceding fiscal year;

(0) during the fiscal year ending June 30, 1970, 2.8 times the total Revenue for the preceding fiscal year;

(1) during the fiscal year ending June 30, 1971, 2.6 times the total Revenue for the preceding fiscal year;

(2) during the fiscal year ending June 30, 1972, 2.4 times the total Revenue for the preceding fiscal year;

(3) during the fiscal year ending June 30, 1973, 2.2 times the total Revenue for the preceding fiscal year;

(4) during the fiscal year and in each fiscal year following the fiscal year ending June 30, 1974, 2.0 times the Revenue for the preceding fiscal year.

(a) The limitations imposed by this Subchapter shall not apply to the issuance or authorization of bonds and notes pledging the faith and the credit of the State for the following purposes:

(5) to provide rehabilitation as a result of a disaster, proclaimed as such by the Governor.

Such bonds or notes may be issued or authorized notwithstanding such limitations. Such bonds and notes issued and outstanding and authorized but unissued shall, however, be considered in determining the amount of bonds or notes which may be authorized to be issued pursuant to this Subchapter.

(b) The limitations imposed by this Subchapter shall apply to any bonds or notes or debt guaranteed by or on behalf of the State and the total amount of the authorized guaranteed debt (less any amount of guaranteed debt which may have been paid off) as well as the total amount about to be authorized shall be considered in determining the amount of bonds or notes which may be outstanding, issued or authorized under this Subchapter.

(a) Every bill authorizing the issuance of bonds or notes pledging the faith and credit of the State introduced in the General Assembly shall be accompanied by a debt statement which shall be in form prescribed by the Budget Director and shall set forth with respect to the State:

(1) the amount of bonds or notes pledging the faith and the credit of the State which are issued and outstanding;

(2) the amount of bonds and notes pledging the faith and the credit of the State which have been authorized but not issued;

(3) the amount of bonds, notes or guaranteed debt authorized by the General Assembly to be guaranteed by or on behalf of the State and an item showing the amount of such authorized guaranteed debt which has been paid off;

(v) to provide rehabilitation as a result of a disaster, proclaimed as such by the Governor;

(5) the total amount of the bonds and notes pledging the credit of the State issued and outstanding and authorized but unissued, including the guaranteed debt authorized and not paid off;

(6) the amount of the bonds and notes pledging the faith and the credit of the State, including guaranteed debt, to be authorized by the legislative bill which the statement accompanies;

(7) a statement of the total of items (5) and (6) above;

(8) the amount of revenue deposited in the General Fund of the State in the fiscal year preceding the fiscal year in which the bonds or notes are to be authorized;

(9) a statement of the fiscal year in which the bonds or notes or guaranteed debt will be authorized, and the total amount of bonds or notes which may be outstanding, authorized and unissued or authorized to be issued during such fiscal year within the limitation prescribed by Section 7422 of this Title.

(b) If the amount, as shown on the debt statement, of bonds or notes which may be outstanding, authorized but not issued or authorized during the fiscal year, as authorized by Section 7422 of this Title is not less than the amount of all bonds and notes including guaranteed debt issued and outstanding authorized and not issued, and about to be authorized, the General Assembly may authorize such bonds, notes or guaranteed debt. The Budget Director shall cause such statement to be properly certified and brought up to date prior to the adoption of the bill which it accompanies in each House of the General Assembly.

(c) Every debt statement accompanying a bill and brought up to date shall be presumed to be accurate and correct. After the issuance of bonds and notes pledging the faith and the credit of the State, including the guarantee of any debt, the debt statement shall be conclusively presumed to be correct and any person shall be estopped from questioning the correctness of the debt statement.

(a) Any bonds or notes heretofore authorized but unissued may be issued notwithstanding the limitations imposed by this Subchapter.

() The provisions of this Subchapter shall not impose a limitation during any fiscal year on the issuance or authorization of bonds or notes which is less than any maximum limitation on the authorization of bonds and notes which this Subchapter imposed in any previous fiscal year.

Section 3. § 6104, Title 29, Delaware Code, is hereby repealed.

Section 4. In the event that any bill has been introduced in the General Assembly at the time this Act takes effect, a debt statement shall be prepared giving effect to the bonds or notes described in the bill and filed with the Chief Clerk of the House or the Secretary of the Senate, depending on which House the bill is then being considered in, and shall accompany such bill and thereafter updated as hereinbefore provided.