Section 1. The jobs for the new, New York bond act is enacted to read as follows:

* JOBS FOR THE NEW, NEW YORK BOND ACT Section 1. Short title.

2. Creation of a state debt.

3. Bonds of the state.

4. Consistency with federal tax law.

Section 1. Short title. This act shall be known and may be cited as the "jobs for the new, New York bond act."

§ 2. Creation of a state debt. The creation of a state debt to an amount not exceeding in the aggregate eight hundred million dollars ($800,000,000) is hereby authorized to provide moneys for the single purpose of funding infrastructure projects to promote the creation or retention of permanent private sector jobs.

A well-developed and maintained infrastructure is necessary to the creation, preservation and enhancement of an environment to which businesses can be attracted, and in which they can be retained and nurtured, thereby creating or retaining private sector employment and reducing the state's unemployment, both of which are critical to the economic and social well-being of the state.

The legislature may, by appropriate legislation and subject to such conditions as it may impose, make available out of the proceeds of the sale of bonds authorized in this act, moneys for state programs or for payments of the state share of the cost of programs undertaken by or through a state agency or state or local public benefit corporation, industrial development agency, county, city, town, village, Indian nation or government or any combination thereof, for the purpose of funding infrastructure projects undertaken by or through such entities and to match federal or other funds which may from time to time be made available by congress or from other sources to such entities for such purpose.

§ 3. Bonds of the state. The state comptroller is hereby authorized and empowered to issue and sell bonds of the state to the amount of eight hundred million dollars ($800,000,000) for the purpose of this act, subject to the provisions of article 5 of the state finance law. The aggregate principal amount of such bonds shall not exceed eight hundred million dollars ($800,000,000) excluding bonds issued to refund or otherwise repay bonds theretofore issued for such purpose; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds may be greater than eight hundred million dollars ($800,000,000) only if the present value of the aggregate debt service of the refunding or repayment bonds to be issued shall not exceed the present value of the aggregate debt service of the bonds to be refunded or repaid.

§ 4. Consistency with federal tax law. Bonds issued pursuant to this act may be issued as taxable or tax-exempt bonds for purposes of the federal internal revenue code and regulations thereunder. All actions taken pursuant to this act shall be reviewed for consistency with provisions of the federal internal revenue code and regulations thereunder, in accordance with procedures established in connection with the issuance of any bonds pursuant to this act which are intended to be federally tax exempt to preserve the federal tax exempt status of such bonds. Any bonds issued pursuant to this act together with the income therefrom shall be exempt from state and local taxation except for transfer and estate taxes. The state covenants with the purchasers and with all subsequent holders and transferees of bonds issued pursuant to this act, in consideration of the acceptance of and payment for the bonds, that the bonds issued pursuant to this act and the income therefrom shall be free from such taxation, as aforestated herein.

§ 2. This act shall not take effect unless and until it shall have been submitted to the people at the general election to be held in November 1992, and shall have received a majority of all votes cast for and against it at such election. Upon approval by the people this act shall take effect immediately. The ballots to be furnished for the use of the voters upon the submission of this act shall be in the form prescribed by the election law, and the proposition or question to be submitted shall be printed thereon in substantially the following form, namely, "Shall chapter (here insert the number of the chapter) of the laws of 1992 known as the jobs for the new, New York bond act, which promotes the creation or retention of permanent private sector jobs, by authorizing the creation of state debt to provide moneys for infrastructure projects in the amount of eight hundred million dollars ($800,000,000), be approved?"

* NB Effective upon approval at general election in November, 1992