REFERENCE TITLE: state debt; limit; restrictions; prohibitions

State of Arizona

Senate

Fifty-sixth Legislature

First Regular Session

2023

SCR 1033

Introduced by

Senator Mesnard

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 Senate of the State of Arizona, the House of Representatives 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:

CONST5. Power of state to contract debts; purposes; limit; restrictions; definition

Section 5. A. The This state may contract debts to supply the casual deficits or failures in revenues, or to meet expenses not otherwise provided for, ;  but 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 $350,000. 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 this state may borrow money to repel invasion, suppress insurrection,  or defend the this 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. No Money shall not be paid out of the state treasury, except in the manner provided by law.

D. For the purposes of this section, "debt" means the following obligations of this state that are paid with state general fund monies:

1. General obligation bonds.

2. Long-term notes and obligations.

3. Certificates of participation and other obligations pursuant to any lease-purchase agreement.

4. Revenue bonds.

5. Obligations of this state in one fiscal year that are deferred in whole or in part to another fiscal year. CONST

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.