Bill Summary: HB 6560

• Allows the Secretary of the Office of Policy and Management and State Treasurer to enter contracts with tier III and tier IV municipalities to provide debt service assistance on refunding bonds and related issuance costs, effective July 1, 2023.

• Requires General Assembly approval of any such contract through majority vote in both chambers, with contracts deemed rejected if the legislature fails to vote before session adjournment or within 30 days of a special session.

• Prohibits the state from entering debt assistance contracts with municipalities that have filed for bankruptcy.

• Establishes full faith and credit obligation of the state to meet contract terms, with automatic appropriation of necessary funds by the State Treasurer.

• Mandates annual audits by the Auditors of Public Accounts for all tier II, III, and IV municipalities under Municipal Accountability Review Board oversight, with access to financial records, budgets, pension projections, and debt service information.