The bill titled "An Act authorizing the town of Nantucket to issue pension obligation bonds or notes" allows the town of Nantucket to issue bonds or notes to fund its share of the unfunded pension liability associated with the Barnstable County retirement association, Nantucket County, and the Nantucket Islands Land Bank. The proceeds from these bonds or notes, excluding issuance costs, must be allocated to reduce the unfunded pension liability and invested according to the regulations set forth in chapter 32 of the General Laws. The bonds or notes can have a maximum term of 30 years and will be exempt from the limit of indebtedness outlined in section 10 of chapter 44 of the General Laws. The issuance of these bonds is contingent upon the approval of a financing plan by the secretary for administration and finance.

Additionally, the bill stipulates that the total amount of bonds or notes issued in any calendar year cannot exceed the amount necessary to eliminate the unfunded pension liability, as determined by a report from a recognized independent consulting firm. The bill also outlines the responsibilities of Nantucket County and the Nantucket Islands Land Bank in reimbursing the town for their share of the annual debt service, and it ensures that the portion of the debt service related to school department personnel will be included in the computation of net school spending under chapter 70. The act will take effect immediately upon passage.