(a)  Any special act of the state which:

(1)  Authorizes the issuance of general obligation bonds or notes of the state;

(2)  Has a balance which remains unissued; and

(3)  Is seven (7) years or older;

shall become invalid, but only as to that portion which remains unissued. The seven (7) year period shall be measured form the date the debt authorization was approved by the vote of the people.

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(b)  Notwithstanding subsection (a) of this section, the general assembly by special act may extend any authorization for a period of one to five (5) years, upon a petition of the department of administration. The extension may be granted one or more times.

(c)  Upon certification by the general treasurer to the governor, debt authorizations described in subsection (a) of this section and not extended under the provisions of subsection (b) of this section shall no longer be deemed or be counted toward the authorized but unissued debt of the state. No petition under subsection (b) of this section may be made with respect to any authorization the expiration of which has been so certified.

(d)  Upon the disbursement of sinking funds to replace the unissued general obligation debt authorization, the replaced unissued general obligation debt authorization shall be extinguished in the amount equal to the disbursement from the sinking fund.