HB3954 Summary

• Removes provisions authorizing variable interest rate bonds and eliminates requirements to calculate maximum interest rates for variable rate bonds across multiple state financing acts.

• Eliminates authority for governmental units and the State to enter into interest rate swap agreements, caps, collars, derivatives, and other credit or liquidity enhancement arrangements related to bonds.

• Removes provisions related to net payments for interest rate protection agreements, which were previously treated as interest on bonds and certified by the Director of the Governor's Office of Management and Budget.

• Reinstates definitions in the Local Government Credit Enhancement Act by explicitly defining terms such as "unit of local government," "school district," and "governing board" rather than referencing external debt reform statutes.

• Takes effect immediately upon becoming law.