This bill amends current law to authorize fire districts to issue bond anticipation notes for a maximum period of ten years, allowing for a series of one-year notes to be renewed over this extended timeframe. Previously, fire districts were limited to issuing these notes for a maximum of three years, which often necessitated the issuance of long-term bonds or lease purchase agreements to finance capital projects that extended beyond this period. The new provisions aim to provide greater flexibility for fire districts in managing their financing needs for capital projects.

Key changes in the bill include the removal of the previous limitation of one-year notes and the stipulation that all notes must mature by the third anniversary of the original notes. Instead, the bill allows for renewals of the notes, with a requirement that a portion of the notes be paid off at each anniversary date beyond the first. This change is intended to facilitate the financing of longer-term capital projects without the immediate need for long-term debt obligations. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 40A:14-86.1