This bill reinstates previous requirements regarding the use of capital reserve funds for financing agreements that involve lease/purchase agreements. Specifically, it amends RSA 35:15, III(a) to allow capital reserve funds to be utilized for multiple payments under such financing agreements, provided certain conditions are met. The previous language that allowed for these funds to be used for lease/purchase agreements has been deleted, and new stipulations have been inserted. These stipulations require that the lease/purchase agreement must not include an "escape clause" or "non-appropriation clause," and it must be ratified by a two-thirds majority vote of the legislative body at an annual or special meeting.

The bill aims to ensure that capital reserve funds are used responsibly and with proper oversight when financing agreements are made. By reinstating these requirements, the legislation seeks to protect the financial interests of counties, towns, districts, and water departments while allowing them to engage in necessary financing arrangements. The act will take effect 60 days after its passage.

Statutes affected:
Introduced: 35:15
HB1147 text: 35:15