Bill > HB1427

This bill, known as the "Sustainable, Honest Investment, and Elimination of Local Debt Act" (SHIELD Act), significantly restricts the ability of municipalities, counties, and school districts to issue bonds in New Hampshire. Starting January 1, 2027, these local government entities will be prohibited from issuing bonds except under very specific circumstances, which include responding to declared emergencies (such as natural disasters or public health crises), repairing essential infrastructure that poses an imminent threat to public health or safety, replacing critical building systems, securing federal or state matching funds, or obtaining explicit voter approval through a warrant article with high participation and approval thresholds. From 2027 to 2031, there is a transitional period allowing bond issuance with some limitations, including a cap of 100% of the entity's annual budget or 50% of its biennial budget. The bill aims to promote fiscal discipline by discouraging local governments from relying on debt and instead encouraging them to plan ahead and establish capital reserve funds. Additionally, the bill provides legal recourse for taxpayers to challenge bonds issued outside these rules, and it gives the state treasurer the power to refuse registration of non-compliant bonds.

Government Affairs

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1751&inflect=2