Bill > SB217

This bill requires county and municipal governments to include more detailed financial documentation when issuing bonds, specifically mandating that bond financing agreement documents must now include a comprehensive schedule of all existing debt obligations for the entire maturity period of the proposed bond issue. The bill requires local governments to execute a standardized government bond financing review form that covers multiple financial considerations, such as the government's ability to satisfy bond obligations, identifying debt service payment sources, understanding potential risks, and receiving clear proposals from bond underwriters. The new requirements include receiving an itemized list of fees, a detailed repayment schedule, and a separate document showing potential debt service schedules that demonstrate the government's capacity to pay all its debt obligations. The bill applies to most bond financing agreements after October 1, 2024, with an exemption for bonds related to utility system improvements. Before executing a bond agreement, local governments must also consult with either their attorney or a certified public accountant to review all documents. The goal of these provisions is to increase transparency, financial accountability, and help local governments make more informed decisions about taking on new debt by requiring a comprehensive view of their existing and proposed financial obligations.

Government Affairs

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