Amends article 7 of the constitution to authorize legislature to loan of money for financing the construction of infrastructural improvements for certain eligible businesses.
STATE OF NEW YORK
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5962
2009-2010 Regular Sessions
IN ASSEMBLY
February 23, 2009
___________
Introduced by M. of A. SCHIMMINGER, MORELLE, WEPRIN, MAGNARELLI, DESTI-
TO, STIRPE, ORTIZ -- Multi-Sponsored by -- M. of A. AUBRY, CAHILL,
DelMONTE, GANTT, HOOPER, KOON, LIFTON, RAMOS -- read once and referred
to the Committee on Economic Development, Job Creation, Commerce and
Industry
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to the constitution, in relation to direct peti-
tion and response
1 Section 1. Resolved (if the Senate concur), That subdivision 3 of
2 section 8 of article 7 of the constitution be amended to read as
3 follows:
4 3. Nothing in this constitution contained shall prevent the legisla-
5 ture from authorizing the loan of the money of the state to a public
6 corporation to be organized for the purpose of making loans to non-pro-
7 fit corporations and to eligible businesses or for the purpose of guar-
8 anteeing loans made by banking organizations, as [that term] these terms
9 shall be defined by the legislature, to finance the construction of new
10 industrial or manufacturing plants, the construction of new buildings to
11 be used for research and development, the construction of other eligible
12 business facilities, and for the purchase of machinery and equipment
13 related to such new industrial or manufacturing plants, research and
14 development buildings, and other eligible business facilities in this
15 state or the acquisition, rehabilitation or improvement of former or
16 existing industrial or manufacturing plants, buildings to be used for
17 research and development, other eligible business facilities, and
18 machinery and equipment in this state, or to finance the construction of
19 infrastructure for eligible businesses, including water and sewer
20 systems, utility lines and telecommunications links, or to finance ener-
21 gy efficiency, pollution prevention, pollution control or alternative
22 energy systems for eligible businesses including the acquisition of real
23 property therefor, and the use of such money by such public corporation
24 for such purposes, to improve employment opportunities in any area of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89111-01-9
A. 5962 2
1 the state, provided, however, that any such plants, buildings or facili-
2 ties or machinery and equipment therefor shall not be (i) primarily used
3 in making retail sales of goods or services to customers who personally
4 visit such facilities to obtain such goods or services or (ii) used
5 primarily as a hotel, apartment house or other place of business which
6 furnishes dwelling space or accommodations to either residents or tran-
7 sients, and provided further that [any loan by such public corporation
8 shall not exceed sixty per centum of the cost of any such project and
9 the repayment of which shall be secured by a mortgage thereon which
10 shall not be a junior encumbrance thereon by more than fifty per centum
11 of such cost or by a security interest if personalty, and that] the
12 amount of any guarantee of a loan made by a banking organization shall
13 not exceed eighty per centum of the cost of any such project, and that
14 such loans or loan guarantees by such public corporation are evidenced
15 by a bond, note or other obligation secured by a security interest
16 deemed appropriate by the legislature to protect the interest of the
17 public corporation and the state.
18 § 2. Resolved (if the Senate concur), That the foregoing amendment be
19 referred to the first regular legislative session convening after the
20 next succeeding general election of members of the assembly, and, in
21 conformity with section 1 of article 19 of the constitution, be
22 published for 3 months previous to the time of such election.
