This bill amends current law to authorize fire districts to issue bond anticipation notes for a period of up to 10 years, allowing for a series of one-year notes that can be renewed. Previously, fire districts were limited to issuing these notes for a maximum of three years. The new provisions stipulate that while the notes can be renewed annually, they must mature and be paid by the first day of the fifth month following the close of the tenth fiscal year after the original notes were issued. Additionally, the bill includes requirements for the retirement of a portion of the notes if they are renewed beyond their first anniversary.

The intent of this legislation is to provide fire districts with greater flexibility in financing capital projects that may extend beyond the previous three-year limit. By allowing for a longer duration of bond anticipation notes, fire districts can avoid the need to resort to long-term bonds or lease purchase agreements, thereby facilitating the completion of capital projects more efficiently. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 40A:14-86.1