(1) The general assembly hereby finds and declares that:
Section 20 of article X of the state constitution limits state fiscal year spending.
Section 20 (2)(e) of article X defines "fiscal year spending" to include all revenuesand expenditures except those for refunds and those from certain sources, such as property sales.
Monetary consideration paid to the state by a private person in connection with aleveraged leasing agreement constitutes revenues to the state from a property sale because the consideration is paid in exchange for a property interest in a qualified state asset and constitutes revenues from a property sale, and such revenues are therefore excluded from state fiscal year spending.
(2) The general assembly further finds and declares that:
Section 20 of article X of the state constitution requires voter approval in advance forcreation of any multiple-fiscal year financial obligation whatsoever without adequate present cash reserves pledged irrevocably and held for payments in all future fiscal years.
The sublease of a qualified state capital asset from a private person to the state undera leveraged leasing agreement is a multiple-fiscal year financial obligation of the state under section 20 of article X of the state constitution, but the state may enter into a leveraged leasing agreement without voter approval in advance because a leveraged leasing agreement requires the state to deposit into a specified account adequate cash reserves pledged irrevocably for sublease payments in all future fiscal years.
Source: L. 2003: Entire part added, p. 1717, § 1, effective May 14.