CHAPTER 510

FORMERLY

SENATE BILL NO. 649

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT PROPOSING AN AMENDMENT TO ARTICLE 8 OF THE DELAWARE CONSTITUTION TO PROVIDE FOR A THREE-FIFTHS VOTE OF THE GENERAL ASSEMBLY TO ENACT LAWS AUTHORIZING AN INCREASE IN THE RATE OF TAXES AND LICENSE FEES; TO PROVIDE AN EXCEPTION THERETO FOR LAWS AUTHORIZING AN INCREASE IN THE RATE OF TAXES AND LICENSE FEES TO SATISFY THE STATE'S PLEDGE OF ITS FAITH AND CREDIT FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON DEBT AFTER PROVISION HAS BEEN MADE ANNUALLY FOR SUCH PAYMENT; AND TO PROVIDE FOR THE ALLOCATION OF PUBLIC MONEYS TO MAKE SUCH PAYMENTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of the members elected to each House thereof concurring therein):

Section 1. There shall be added to Article 8 of the Delaware Constitution a new section to be entitled and which shall read as follows:

"Section 10. Limitation on Increase of Rate of Taxes and License Fees; Exception to Meet Obligation Under Faith and Credit Pledge; Allocation of Public Moneys to Meet Such Obligation if Revenues are not Sufficient to Meet Such Pledge

(a) The effective rate of any tax levied or license fee imposed by the State may not be increased except pursuant to an Act of the General Assembly adopted with the concurrence of three-fifths of all members of each House.

(b) Prior to the beginning of each fiscal year of the State, the General Assembly shall appropriate revenues of the State to pay interest on its debt to which it has pledged its faith and credit and which interest is payable in the year for which such appropriation is made and to pay the principal of such debt, payable in such year, whether at maturity or otherwise. To the extent that insufficient revenues of the State are available to pay principal of and interest on such debt when due and payable, the first public moneys of the State thereafter received shall be set aside and applied to the payment of the principal of and interest on such debt. To make up for such insufficient revenues, the General Assembly may increase the rate of taxes and fees without regard to the limitations of Paragraph (a) hereof after the failure to pay when due the principal of and

interest on such debt."

Approved July 12, 1978.