Florida Senate - 2016 SENATOR AMENDMENT Bill No. CS/HB 347, 1st Eng. Ì410530eÎ410530 LEGISLATIVE ACTION Senate . House . . . Floor: WD/2R . 03/09/2016 05:44 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Soto moved the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Utility Cost Containment Bond Act.— 6 (1) SHORT TITLE.—This section may be cited as the “Utility 7 Cost Containment Bond Act.” 8 (2) DEFINITIONS.—As used in this section, the term: 9 (a) “Authority” means any county or municipal entity, 10 special district, single or multipurpose public authority, or 11 separate legal entity created under s. 163.01(7)(g), Florida 12 Statutes, which provides public utility services. The term 13 includes any successor to the powers and functions of such an 14 authority providing public utility services. 15 (b) “Cost,” as applied to a utility project or a portion of 16 a utility project financed under this section, means: 17 1. Any part of the expense of constructing, renovating, or 18 acquiring lands, structures, real or personal property, rights, 19 rights-of-way, franchises, easements, and interests acquired or 20 used for a utility project; 21 2. The expense of demolishing or removing any buildings or 22 structures on acquired land, including the expense of acquiring 23 any lands to which the buildings or structures may be moved, and 24 the cost of all machinery and equipment used for the demolition 25 or removal; 26 3. Finance charges; 27 4. Interest, as determined by the authority; 28 5. Provisions for working capital and debt service 29 reserves; 30 6. Expenses for extensions, enlargements, additions, 31 replacements, renovations, and improvements; 32 7. Expenses for architectural, engineering, financial, 33 accounting, and legal services, plans, specifications, 34 estimates, and administration; or 35 8. Any other expenses necessary or incidental to 36 determining the feasibility of constructing a utility project or 37 incidental to the construction, acquisition, or financing of a 38 utility project. 39 (c) “Customer” means a person receiving water or wastewater 40 service from a publicly owned utility. 41 (d) “Finance” or “financing” includes refinancing. 42 (e) “Financing cost” means: 43 1. Interest and redemption premiums that are payable on 44 utility cost containment bonds; 45 2. The cost of retiring the principal of utility cost 46 containment bonds, whether at maturity, including acceleration 47 of maturity upon an event of default, or upon redemption, 48 including sinking fund redemption; 49 3. The cost related to issuing or servicing utility cost 50 containment bonds, including any payment under an interest rate 51 swap agreement and any type of fee; 52 4. A payment or expense associated with a bond insurance 53 policy; financial guaranty; contract, agreement, or other credit 54 or liquidity enhancement for bonds; or contract, agreement, or 55 other financial agreement entered into in connection with 56 utility cost containment bonds; 57 5. Any coverage charges; or 58 6. The funding of one or more reserve accounts relating to 59 utility cost containment bonds. 60 (f) “Financing resolution” means a resolution adopted by 61 the governing body of an authority that provides for the 62 financing or refinancing of a utility project with utility cost 63 containment bonds and that imposes a utility project charge in 64 connection with the utility cost containment bonds in accordance 65 with subsection (4). A financing resolution may be separate from 66 a resolution authorizing the issuance of the bonds. 67 (g) “Governing body” means the body that governs a local 68 agency. 69 (h) “Local agency” means a member of a separate legal 70 entity created under s. 163.01(7)(g), Florida Statutes, or an 71 agency or subdivision of that member, which is sponsoring or 72 refinancing a utility project; any municipality, county, 73 authority, special district, public corporation, or regional 74 water authority; or any other governmental entity of the state 75 which is sponsoring or refinancing a utility project. 76 (i) “Publicly owned utility” means a utility providing 77 retail or wholesale water or wastewater services which is owned 78 and operated by a local agency. The term includes any successor 79 to the powers and functions of such a utility. 80 (j) “Public utility services” means water or wastewater 81 services provided by a publicly owned utility. The term does not 82 include communications services, as defined in s. 202.11, 83 Florida Statutes, Internet access services, or information 84 services. 85 (k) “Revenue” means income and receipts of the authority 86 related to the financing of utility projects and issuance of 87 utility cost containment bonds, including any of the following: 88 1. Bond purchase agreements; 89 2. Bonds acquired by the authority; 90 3. Installment sales agreements and other revenue-producing 91 agreements entered into by the authority; 92 4. Utility projects financed or refinanced by the 93 authority; 94 5. Grants and other sources of income; 95 6. Moneys paid by a local agency; 96 7. Interlocal agreements with a local agency, including all 97 service agreements; or 98 8. Interest or other income from any investment of money in 99 any fund or account established for the payment of principal, 100 interest, or premiums on utility cost containment bonds, or the 101 deposit of proceeds of utility cost containment bonds. 102 (l) “Utility cost containment bonds” means bonds, notes, 103 commercial paper, variable rate securities, and any other 104 evidence of indebtedness issued by an authority the proceeds of 105 which are used directly or indirectly to pay or reimburse a 106 local agency or its publicly owned utility for the costs of a 107 utility project and which are secured by a pledge of, and are 108 payable from, utility project property. 109 (m) “Utility project” means the acquisition, construction, 110 installation, retrofitting, rebuilding, or other addition to or 111 improvement of any equipment, device, structure, process, 112 facility, technology, rights, or property located within or 113 outside this state which is used in connection with the 114 operations of a publicly owned utility. 115 (n) “Utility project charge” means a charge levied on 116 customers of a publicly owned utility to pay the financing costs 117 of utility cost containment bonds issued under subsection (4). 118 The term includes any adjustments to the utility project charge 119 made under subsection (5). 120 (o) “Utility project property” means the property right 121 created pursuant to subsection (6). The term does not include 122 any interest in a customer’s real or personal property but 123 includes the right, title, and interest of an authority in any 124 of the following: 125 1. The financing resolution, the utility project charge, 126 and any adjustment to the utility project charge established in 127 accordance with subsection (5); 128 2. The financing costs of the utility cost containment 129 bonds and all revenues, and all collections, claims, payments, 130 moneys, or proceeds for, or arising from, the utility project 131 charge; or 132 3. All rights to obtain adjustments to the utility project 133 charge pursuant to subsection (5). 134 (3) UTILITY PROJECTS.— 135 (a) A local agency that owns and operates a publicly owned 136 utility may apply to an authority to finance the costs of a 137 utility project using the proceeds of utility cost containment 138 bonds. In its application to the authority, the local agency 139 shall specify the utility project to be financed by the utility 140 cost containment bonds and the maximum principal amount, the 141 maximum interest rate, and the maximum stated terms of the 142 utility cost containment bonds. 143 (b) A local agency may not apply to an authority for the 144 financing of a utility project under this section unless the 145 governing body has determined, in a duly noticed public meeting, 146 all of the following: 147 1. The project to be financed is a utility project. 148 2. The local agency will finance costs of the utility 149 project, and the costs associated with the financing will be 150 paid from utility project property, including the utility 151 project charge for the utility cost containment bonds. 152 3. Based on the best information available to the governing 153 body, the rates charged to the local agency’s retail customers 154 by the publicly owned utility, including the utility project 155 charge resulting from the financing of the utility project with 156 utility cost containment bonds, are expected to be lower than 157 the rates that would be charged if the project were financed 158 with bonds payable from revenues of the publicly owned utility. 159 (c) A determination by the governing body that a project to 160 be financed with utility cost containment bonds is a utility 161 project is final and conclusive, and the utility cost 162 containment bonds issued to finance the utility project and the 163 utility project charge are valid and enforceable as set forth in 164 the financing resolution and the documents relating to the 165 utility cost containment bonds. 166 (d) If a local agency that has outstanding utility cost 167 containment bonds ceases to operate a water or wastewater 168 utility, directly or through its publicly owned utility, 169 references in this section to the local agency or to its 170 publicly owned utility must be to the successor entity. The 171 successor entity shall assume and perform all obligations of the 172 local agency and its publicly owned utility required by this 173 section and shall assume the servicing agreement required under 174 subsection (4) while the utility cost containment bonds remain 175 outstanding. 176 (4) FINANCING UTILITY PROJECTS.— 177 (a) An authority may issue utility cost containment bonds 178 to finance or refinance utility projects; refinance debt of a 179 local agency incurred in financing or refinancing utility 180 projects, provided such refinancing results in present value 181 savings to the local agency; or, with the approval of the local 182 agency, refinance previously issued utility cost containment 183 bonds. 184 1. To finance a utility project, the authority may: 185 a. Form a single-purpose limited liability company and 186 authorize the company to adopt the financing resolution of such 187 utility project; or 188 b. Create a new single-purpose entity by interlocal 189 agreement under s. 163.01, Florida Statutes, the membership of 190 which shall consist of the authority and two or more of its 191 members or other public agencies. 192 2. A single-purpose limited liability company or a single 193 purpose entity may be created by the authority solely for the 194 purpose of performing the duties and responsibilities of the 195 authority specified in this section and constitutes an authority 196 for all purposes of this section. Reference to the authority 197 includes a company or entity created under this paragraph. 198 (b) The governing body of an authority that is financing 199 the costs of a utility project shall adopt a financing 200 resolution and shall impose a utility project charge as 201 described in subsection (5). All provisions of a financing 202 resolution adopted pursuant to this section are binding on the 203 authority. 204 1. The financing resolution must: 205 a. Provide a brief description of the financial calculation 206 method the authority will use in determining the utility project 207 charge. The calculation method must include a periodic 208 adjustment methodology to be applied at least annually to the 209 utility project charge. The authority shall establish the 210 allocation of the utility project charge among classes of 211 customers of the publicly owned utility. The decision of the 212 authority is final and conclusive, and the method of calculating 213 the utility project charge and the periodic adjustment may not 214 be changed; 215 b. Require each customer in the class or classes of 216 customers specified in the financing resolution who receives 217 water or wastewater service through the publicly owned utility 218 to pay the utility project charge regardless of whether the 219 customer has an agreement to receive water or wastewater service 220 from a person other than the publicly owned utility; 221 c. Require that the utility project charge be charged 222 separately from other charges on the bill of customers of the 223 publicly owned utility in the class or classes of customers 224 specified in the financing resolution; and 225 d. Require that the authority enter into a servicing 226 agreement with the local agency or its publicly owned utility to 227 collect the utility project charge. 228 2. The authority may require in the financing resolution 229 that, in the event of a default by the local agency or its 230 publicly owned utility with respect to revenues from the utility 231 project property, the authority, upon application by the 232 beneficiaries of the statutory lien as set forth in subsection 233 (6), shall order the sequestration and payment to the 234 beneficiaries of revenues arising from utility project property. 235 This subparagraph does not limit any other remedies available to 236 the beneficiaries by reason of default. 237 (c) An authority has all of the powers provided in this 238 section and s. 163.01(7)(g), Florida Statutes. 239 (d) Each authority may work with local agencies that 240 request assistance to determine the most cost-effective manner 241 of financing regional water projects. If these entities 242 determine that the issuance of utility cost containment bonds 243 will result in lower financing costs for a project, the 244 authority may cooperate with such local agencies and, if 245 requested by the local agencies, issue utility cost containment 246 bonds as provided in this section. 247 (5) UTILITY PROJECT CHARGE.— 248 (a) The authority shall impose a sufficient utility project 249 charge, based on estimates of water or wastewater service usage, 250 to ensure timely payment of all financing costs with respect to 251 utility cost containment bonds. The local agency or its publicly 252 owned utility shall provide the authority with information 253 concerning the publicly owned utility which may be required by 254 the authority in establishing the utility project charge. 255 (b) The utility project charge is a nonbypassable charge to 256 all present and future customers of the publicly owned utility 257 in the class or classes of customers specified in the financing 258 resolution upon its adoption. If the regulatory structure for 259 the water or wastewater industry changes in a manner that 260 authorizes a customer to choose to take service from an 261 alternative supplier and the customer chooses an alternative 262 supplier, the customer remains liable for paying the utility 263 project charge if the customer continues to receive any service 264 from the publicly owned utility for the transmission, 265 distribution, processing, delivery, or metering of the 266 underlying water or wastewater service. 267 (c) The authority shall determine at least annually and at 268 such additional intervals as provided in the financing 269 resolution and documents related to the applicable utility cost 270 containment bonds whether adjustments to the utility project 271 charge are required. The authority shall use the adjustment to 272 correct for any overcollection or undercollection of financing 273 costs from the utility project charge or to make any other 274 adjustment necessary to ensure the timely payment of the 275 financing costs of the utility cost containment bonds, including 276 adjustment of the utility project charge to pay any debt service 277 coverage requirement for the utility cost containment bonds. The 278 local agency or its publicly owned utility shall provide the 279 authority with information concerning the publicly owned utility 280 which may be required by the authority in adjusting the utility 281 project charge. 282 1. If the authority determines that an adjustment to the 283 utility project charge is required, the adjustment must be made 284 using the methodology specified in the financing resolution. 285 2. The adjustment may not impose the utility project charge 286 on a class of customers which was not subject to the utility 287 project charge pursuant to the financing resolution imposing the 288 utility project charge. 289 (d) Revenues from a utility project charge are special 290 revenues of the authority and do not constitute revenue of the 291 local agency or its publicly owned utility for any purpose, 292 including any dedication, commitment, or pledge of revenue, 293 receipts, or other income that the local agency or its publicly 294 owned utility has made or will make for the security of any of 295 its obligations. 296 (e) The local agency or its publicly owned utility shall 297 act as a servicing agent for collecting the utility project 298 charge throughout the duration of the servicing agreement 299 required by the financing resolution. The local agency or its 300 publicly owned utility shall hold the money collected in trust 301 for the exclusive benefit of the persons entitled to have the 302 financing costs paid from the utility project charge, and the 303 money does not lose its designation as revenues of the authority 304 by virtue of possession by the local agency or its publicly 305 owned utility. 306 (f) The customer must make timely and complete payment of 307 all utility project charges as a condition of receiving water or 308 wastewater service from the publicly owned utility. The local 309 agency or its publicly owned utility may use its established 310 collection policies and remedies provided under law to enforce 311 collection of the utility project charge. A customer liable for 312 a utility project charge may not withhold payment, in whole or 313 in part, thereof. 314 (g) The pledge of a utility project charge to secure 315 payment of utility cost containment bonds is irrevocable, and 316 the state, or any other entity, may not reduce, impair, or 317 otherwise adjust the utility project charge, except that the 318 authority shall implement the periodic adjustments to the 319 utility project charge as provided under this subsection. 320 (6) UTILITY PROJECT PROPERTY.— 321 (a) A utility project charge constitutes utility project 322 property on the effective date of the financing resolution 323 authorizing such utility project charge. Utility project 324 property constitutes property, including contracts for securing 325 utility cost containment bonds, regardless of whether the 326 revenues and proceeds arising with respect to the utility 327 project property have accrued. Utility project property shall 328 continuously exist as property for all purposes with all of the 329 rights and privileges of this section through the end of the 330 period provided in the financing resolution or until all 331 financing costs with respect to the related utility cost 332 containment bonds are paid in full, whichever occurs first. 333 (b) Upon the effective date of the financing resolution, 334 the utility project property is subject to a first-priority 335 statutory lien to secure the payment of the utility cost 336 containment bonds. 337 1. The lien secures the payment of all financing costs then 338 existing or subsequently arising to the holders of the utility 339 cost containment bonds, the trustees or representatives of the 340 holders of the utility cost containment bonds, and any other 341 entity specified in the financing resolution or the documents 342 relating to the utility cost containment bonds. 343 2. The lien attaches to the utility project property 344 regardless of the current ownership of the utility project 345 property, including any local agency or its publicly owned 346 utility, the authority, or any other person. 347 3. Upon the effective date of the financing resolution, the 348 lien is valid and enforceable against the owner of the utility 349 project property and all third parties, and additional public 350 notice is not required. 351 4. The lien is a continuously perfected lien on all 352 revenues and proceeds generated from the utility project 353 property regardless of whether the revenues or proceeds have 354 accrued. 355 (c) All revenues with respect to utility project property 356 related to utility cost containment bonds, including payments of 357 the utility project charge, shall be applied first to the 358 payment of the financing costs of the utility cost containment 359 bonds then due, including the funding of reserves for the 360 utility cost containment bonds. Any excess revenues shall be 361 applied as determined by the authority for the benefit of the 362 utility for which the utility cost containment bonds were 363 issued. 364 (7) UTILITY COST CONTAINMENT BONDS.— 365 (a) Utility cost containment bonds shall be issued within 366 the parameters of the financing provided by the authority 367 pursuant to this section. The proceeds of the utility cost 368 containment bonds made available to the local agency or its 369 publicly owned utility shall be used for the utility project 370 identified in the application for financing of the utility 371 project or used to refinance indebtedness of the local agency 372 which financed or refinanced utility projects. 373 (b) Utility cost containment bonds shall be issued as set 374 forth in this section and s. 163.01(7)(g)8., Florida Statutes, 375 and may be validated pursuant to s. 163.01(7)(g)9., Florida 376 Statutes. 377 (c) The authority shall pledge the utility project property 378 as security for the payment of the utility cost containment 379 bonds. All rights of an authority with respect to utility 380 project property pledged as security for the payment of utility 381 cost containment bonds shall be for the benefit of, and 382 enforceable by, the beneficiaries of the pledge to the extent 383 provided in the financing documents relating to the utility cost 384 containment bonds. 385 1. If utility project property is pledged as security for 386 the payment of utility cost containment bonds, the local agency 387 or its publicly owned utility shall enter into a contract with 388 the authority which requires, at a minimum, that the publicly 389 owned utility: 390 a. Continue to operate its publicly owned utility, 391 including the utility project that is being financed or 392 refinanced; 393 b. Collect the utility project charge from customers for 394 the benefit and account of the authority and the beneficiaries 395 of the pledge of the utility project charge; and 396 c. Separately account for and remit revenue from the 397 utility project charge to, or for the account of, the authority. 398 2. The pledge of a utility project charge to secure payment 399 of utility cost containment bonds is irrevocable, and the state 400 or any other entity may not reduce, impair, or otherwise adjust 401 the utility project charge, except that the authority shall 402 implement periodic adjustments to the utility project charge as 403 provided under subsection (5). 404 (d) Utility cost containment bonds shall be nonrecourse to 405 the credit or any assets of the local agency or the publicly 406 owned utility but are payable from, and secured by a pledge of 407 the utility project property relating to the utility cost 408 containment bonds and any additional security or credit 409 enhancement specified in the documents relating to the utility 410 cost containment bonds. If, pursuant to subsection (4), the 411 authority is financing the project through a single-purpose 412 limited liability company, the utility cost containment bonds 413 shall be payable from, and secured by, a pledge of amounts paid 414 by the company to the authority from the applicable utility 415 project property. This paragraph is the exclusive method of 416 perfecting a pledge of utility project property by the company 417 securing the payment of financing costs under any agreement of 418 the company in connection with the issuance of utility cost 419 containment bonds. 420 (e) The issuance of utility cost containment bonds does not 421 obligate the state or any political subdivision thereof to levy 422 or to pledge any form of taxation to pay the utility cost 423 containment bonds or to make any appropriation for their 424 payment. Each utility cost containment bond must contain on its 425 face a statement in substantially the following form: 426 427 “Neither the full faith and credit nor the taxing power of the 428 State of Florida or any political subdivision thereof is pledged 429 to the payment of the principal of, or interest on, this bond.” 430 431 (f) Notwithstanding any other law or this section, a 432 financing resolution or other resolution of the authority, or 433 documents relating to utility cost containment bonds, the 434 authority may not rescind, alter, or amend any resolution or 435 document that pledges utility cost charges for payment of 436 utility cost containment bonds. 437 (g) Subject to the terms of any pledge document created 438 under this section, the validity and relative priority of a 439 pledge is not defeated or adversely affected by the commingling 440 of revenues generated by the utility project property with other 441 funds of the local agency or the publicly owned utility 442 collecting a utility project charge on behalf of an authority. 443 (h) Financing costs in connection with utility cost 444 containment bonds are a special obligation of the authority and 445 do not constitute a liability of the state or any political 446 subdivision thereof. Financing costs are not a pledge of the 447 full faith and credit of the state or any political subdivision 448 thereof, including the authority, but are payable solely from 449 the funds identified in the documents relating to the utility 450 cost containment bonds. This paragraph does not preclude 451 guarantees or credit enhancements in connection with utility 452 cost containment bonds. 453 (i) Except as otherwise provided in this section with 454 respect to adjustments to a utility project charge, the recovery 455 of the financing costs for the utility cost containment bonds 456 from the utility project charge is irrevocable, and the 457 authority does not have the power, by rescinding, altering, or 458 amending the applicable financing resolution, to revalue or 459 revise for ratemaking purposes the financing costs of utility 460 cost containment bonds; to determine that the financing costs 461 for the related utility cost containment bonds or the utility 462 project charge is unjust or unreasonable; or to in any way, 463 either directly or indirectly, reduce or impair the value of 464 utility project property that includes the utility project 465 charge. The amount of revenues arising with respect to the 466 financing costs for the related utility cost containment bonds 467 or the utility project charge is not subject to reduction, 468 impairment, postponement, or termination for any reason until 469 all financing costs to be paid from the utility project charge 470 are fully met and discharged. 471 (j) Except as provided in subsection (5) with respect to 472 adjustments to a utility project charge, the state pledges and 473 agrees with the owners of utility cost containment bonds that 474 the state may not limit or alter the financing costs or the 475 utility project property, including the utility project charge, 476 relating to the utility cost containment bonds, or any rights 477 related to the utility project property, until all financing 478 costs with respect to the utility cost containment bonds are 479 fully met and discharged. This paragraph does not preclude 480 limitation or alteration if adequate provision is made by law to 481 protect the owners. The authority may include the state’s pledge 482 in the governing documents for utility cost containment bonds. 483 (8) LIMITATION ON DEBT RELIEF.—Notwithstanding any other 484 law, an authority that issued utility cost containment bonds may 485 not, and a governmental officer or organization may not 486 authorize the authority to, become a debtor under the United 487 States Bankruptcy Code or become the subject of any similar case 488 or proceeding under any other state or federal law if any 489 payment obligation from utility project property remains with 490 respect to the utility cost containment bonds. 491 (9) CONSTRUCTION.—This section and s. 163.01(7)(g), Florida 492 Statutes: 493 (a) May not be deemed exclusive or to otherwise preclude 494 the concurrent provision of funding and financing of any utility 495 project or other qualifying improvements authorized by law or by 496 interlocal agreement. 497 (b) May not be construed to preclude any general or special 498 purpose local government or separate legal entity from funding 499 or financing any utility project or otherwise qualifying 500 improvements within the bounds of any general or special purpose 501 local government. 502 503 This section and all grants of power and authority in this 504 section shall be liberally construed to effectuate their 505 purposes. All incidental powers necessary to carry this section 506 into effect are expressly granted to, and conferred upon, public 507 entities. 508 Section 2. This act shall take effect July 1, 2016. 509 510 ================= T I T L E A M E N D M E N T ================ 511 And the title is amended as follows: 512 Delete everything before the enacting clause 513 and insert: 514 A bill to be entitled 515 An act relating to utility projects; providing a short 516 title; defining terms; authorizing certain local 517 governmental entities to finance the costs of a 518 utility project by issuing utility cost containment 519 bonds upon application by a local agency; specifying 520 application requirements; requiring a successor entity 521 of a local agency to assume and perform the 522 obligations of the local agency with respect to the 523 financing of a utility project; providing procedures 524 for local agencies to use when applying to finance a 525 utility project using utility cost containment bonds; 526 authorizing an authority to issue utility cost 527 containment bonds for specified purposes related to 528 utility projects; authorizing an authority to form 529 alternate entities to finance utility projects; 530 requiring the governing body of the authority to adopt 531 a financing resolution and impose a utility project 532 charge on customers of a publicly owned utility as a 533 condition of utility project financing; specifying 534 required and optional provisions of the financing 535 resolution; specifying powers of the authority; 536 requiring the local agency or its publicly owned 537 utility to assist the authority in the establishment 538 or adjustment of the utility project charge; requiring 539 that customers of the public utility specified in the 540 financing resolution pay the utility project charge; 541 providing for adjustment of the utility project 542 charge; establishing ownership of the revenues of the 543 utility project charge; requiring the local agency or 544 its publicly owned utility to collect the utility 545 project charge; conditioning a customer’s receipt of 546 public utility services on payment of the utility 547 project charge; authorizing a local agency or its 548 publicly owned utility to use available remedies to 549 enforce collection of the utility project charge; 550 providing that the pledge of the utility project 551 charge to secure payment of bonds issued to finance 552 the utility project is irrevocable and cannot be 553 reduced or impaired except under certain conditions; 554 providing that a utility project charge constitutes 555 utility project property; providing that utility 556 project property is subject to a lien to secure 557 payment of costs relating to utility cost containment 558 bonds; establishing payment priorities for the use of 559 revenues of the utility project property; providing 560 for the issuance and validation of utility cost 561 containment bonds; securing the payment of utility 562 cost containment bonds and related costs; providing 563 that utility cost containment bonds do not obligate 564 the state or any political subdivision and are not 565 backed by their full faith and credit and taxing 566 power; requiring that certain disclosures be printed 567 on utility cost containment bonds; providing that 568 financing costs related to utility cost containment 569 bonds are an obligation of the authority only; 570 providing limitations on the state’s ability to alter 571 financing costs or utility project property under 572 certain circumstances; prohibiting an authority with 573 outstanding payment obligations on utility cost 574 containment bonds from becoming a debtor under certain 575 federal or state laws; providing for construction; 576 endowing public entities with certain powers; 577 providing an effective date.