Marvin Mandel, Governor                       1233

replacing it by the general taxing power of the state, and gen-

erally relating to State indebtedness, and providing for the sub-
TO PROVIDE THAT THE ANNUAL TAX REQUIRED TO BE
LEVIED TO PAY THE PRINCIPAL AND INTEREST ON
STATE DEBT AUTHORIZED BY THE GENERAL ASSEMBLY
IS NOT LEVIED IF SUFFICIENT FUNDS FOR THE DEBT
ARE APPROPRIATED IN THE ANNUAL STATE BUDGET,
TO CORRECT AN ERROR THEREIN, AND TO PROVIDE
FOR THE SUBmission of this amendment to the qualified voters
of the State of Maryland for their adoption or rejection.

Section 1. Be it enacted by the General Assembly of Maryland,
(Three-fifths of all members elected to each of the two Houses con-
curring), That the following be and the same is proposed as an
amendment to Section 34 of Article III of the Constitution of Mary-
land, title "Legislative Department," the same, if adopted by the
legally qualified voters of the State, as herein provided, to become
a part of the Constitution of Maryland.

34.

[No debt shall be hereafter contracted by the General Assembly
unless such debt shall be authorized by a law providing for the collec-
tion of an annual tax or taxes sufficient to pay the interest on such
debt as it falls due, and also to discharge the principal thereof
within fifteen years from the time of contracting the same; and
the taxes laid for this purpose shall not be repealed or applied to
any other object until the said debt and interest thereon shall be
fully discharged.] THE ANNUAL TAX OR TAXES REQUIRED
TO BE COLLECTED SHALL NOT BE COLLECTED IN THE
EVENT THAT SUFFICIENT FUNDS TO PAY THE PRIN-
CIPAL AND INTEREST ON THE DEBT ARE APPROPRIATED
FOR THIS PURPOSE IN THE ANNUAL STATE BUDGET.

The State may incur indebtedness for any public purpose in the

manner and upon the terms and conditions that the General As-

sembly prescribes by a law. Unless the law authorizing the creation

of an obligation includes an irrevocable pledge of the full faith and

credit of the State, the obligation shall not be considered an indebted-

ness of the State and terms of this subsection shall not apply. If

the law creates a State indebtedness for public works and capital
improvement projects of the State or any of its political subdivisions

in the annual state capital budget bill and includes such a pledge,

the obligation shall be secured by the unlimited taxing power of the

State and be subject to the terms of this subsection. If at any time

the General Assembly has failed to appropriate and to make avail-

able sufficient funds to provide for the timely payment of the interest

and principal then due upon all the indebtedness, it shall be the

duty of the Comptroller to pay, or to make available for payment,

to the holders of the indebtedness, from the first revenues there-

after received applicable to the general funds of the State, a sum

equal to the interest and principal. If the law creates any other

State indebtedness and includes such a pledge, the obligation shall be
secured by the imposition of a tax or taxes sufficient to pay the inter-

est on such indebtedness as it falls due and also to discharge the

principal thereof, and shall be subject to the terms of this subsec-

tion. All State indebtedness shall mature within fifteen years from