HB78 Summary

• Requires municipalities and local school boards to complete a Government Bond Financing Review Form developed by the Office of Examiners of Public Accounts before executing any bond financing agreement.

• Form must document that the entity has considered relevant factors including financial capacity, debt service sources, asset useful life, restrictions on bond proceeds, itemized fees, interest rate reasonableness, and constitutional debt limits.

• For refinancing bonds, form must acknowledge consideration of how refunding extends debt repayment period and whether refunding creates net present value savings.

• Completed form must be signed by the chair or designated member and an adviser (attorney or certified public accountant), then forwarded to the Office of Examiners of Public Accounts within 10 business days and kept available for public inspection for seven years.

• Act becomes effective October 1, 2017.