The proposed bill, known as the "Sustainable, Honest Investment, and Elimination of Local Debt Act" or the "SHIELD Act," aims to significantly limit the authority of municipalities, counties, and school districts in New Hampshire to issue bonds. Under the new provisions, bonds can only be issued in cases of declared emergencies, for essential infrastructure repairs, to secure substantial matching funds, or if explicitly authorized by a majority vote of registered voters. The bill introduces a new section to RSA 33, which stipulates that no bonds may be issued after January 1, 2027, except under these specific circumstances. Additionally, any bond issued in violation of this section would be voidable, and the state treasurer would refuse registration for non-compliant bonds.

The bill emphasizes the importance of fiscal responsibility and encourages local governments to plan ahead and establish capital reserve funds instead of relying on debt. It defines "declared emergency" and "essential infrastructure" to clarify the conditions under which bonds may be issued. The act also includes provisions for personal liability for local governing body members who act in bad faith when declaring emergencies. Overall, the SHIELD Act seeks to promote prudent financial management and reduce the burden of debt on future generations while ensuring that critical needs can still be addressed through limited bonding authority.