HB 5566 Summary

• Revises the Local Emergency Financial Assistance Loan Act to expand loan authorization limits to $35,000,000 for non-school district municipalities and $50,000,000 for school districts during the period from October 1, 2011 through September 30, 2018, with individual municipality caps of $20,000,000.

• Establishes a Local Emergency Financial Assistance Loan Board consisting of the state treasurer, director of licensing and regulatory affairs, and director of technology, management and budget with authority to authorize loans, set interest rates, and enforce compliance with loan terms.

• Adds provisions allowing the state treasurer to sell or transfer loans to third parties and adjust interest rates, terms, and conditions as necessary to facilitate such sales while maintaining security interests.

• Prohibits loan proceeds from being used to finance costs associated with special assessments or special assessment districts established after the effective date.

• Requires municipalities receiving loans to submit quarterly financial statements, annual 5-year plan evaluations, and proposed budgets to the board, with non-compliance allowing the state treasurer to increase interest rates or accelerate repayment.