CHAPTER 726

SENATE JOINT RESOLUTION NO. 89
Proposing an amendment to Section 185 of the Constitution of Virginia.

Agreed to by the Senate, February 25, 1966
Agreed to by the House of Delegates, March 11, 1966

Resolved by the Senate of Virginia, the House of Delegates concurring,
a majority of the members elected to each house agreeing, That the follow-
ing amendment to the Constitution of Virginia be, and the same hereby is,
proposed and referred to the General Assembly at its first regular session
held after the next general election of members of the House of Delegates
for its concurrence in conformity with the provisions of section one hun-
dred ninety-six of the Constitution, namely:
foil Strike from the Constitution of Virginia Section 185 which is as

0

ows:

Section 185. Lending of credit to, or subscription to stock of, cor-
porations or persons by State, county, city or town prohibited; State shall
become interested in no work of internal improvements except public roads
and public parks; exceptions as to counties, cities and towns.—Neither the
credit of the State, nor of any county, city, or town, shall be directly or
indirectly, under any device or pretense, whatsoever, granted to or in aid
of any person, association, or corporation, nor shall the State, or any county,
city, or town subscribe to or become interested in the stock or obligations
of any company, association, or corporation, for the purpose of aiding in
the construction or maintenance of its work; nor shall the State become
a party to or become interested in any work of internal improvement, ex-
cept public roads and public parks, or engage in carrying on any such work;
nor assume any indebtedness of any county, city, or town, nor lend its
credit to the same; but this section shall not prevent a county, city, or town
from perfecting a subscription to the capital stock of a railroad company
authorized by existing charter conditioned upon the affirmative vote of the
voters and freeholders of such county, city, or town in favor of such sub-
scription; provided, that such vote was had prior to July first, nineteen
hundred and three.

And insert in lieu thereof the following:

Section 185. Lending of credit to, or subscription to stock of, cor-
porations or persons by State, county, city or town prohibited; State shall
become interested in no work of internal improvements except public roads
and public parks; exceptions as to counties, cities and towns.—Neither the
credit of the State, nor of any county, city, or town, shall be directly or
indirectly, under any device or pretense whatsoever, granted to or in aid
of any person, association, or corporation, nor shall the State, or any county,
city, or town subscribe to or become interested in the stock or obligations
of any company, association, or corporation, for the purpose of aiding in
the construction or maintenance of its work; nor shall the State become
a party to or become interested in any work of internal improvement, except
public roads and public parks, or engage in carrying on any such work; nor
assume any indebtedness of any county, city, or town, nor lend its credit
to the same; but this section shall not prevent a county, city, or town from
perfecting a subscription to the capital stock of a railroad company au-
thorized by existing charter conditioned upon the affirmative vote of the
voters and freeholders of such county, city, or town in favor of such sub-
scription; provided, that such vote was had prior to July first, nineteen
hundred and three.

This section shall not be construed to prohibit the General Assembly
from establishing an authority with power to insure and guarantee loans
secured by first deed of trust or first mortgage on privately owned in-
dustrial plants to finance industrial development and industrial expansion,
and from making appropriations to such authority to enable it to exercise
such power.