Florida Senate - 2015                             CS for SB 1102
       
       
        
       By the Committee on Communications, Energy, and Public
       Utilities; and Senator Legg
       
       
       
       
       579-02832-15                                          20151102c1
    1                        A bill to be entitled                      
    2         An act relating to utility projects; providing a short
    3         title; providing definitions; authorizing certain
    4         local government entities to finance the costs of a
    5         utility project by issuing utility cost containment
    6         bonds upon application by a local agency; specifying
    7         application requirements; requiring a successor entity
    8         of a local agency to assume and perform the
    9         obligations of the local agency with respect to the
   10         financing of a utility project; providing procedures
   11         for local agencies to use when applying to finance a
   12         utility project using utility cost containment bonds;
   13         authorizing an authority to issue utility cost
   14         containment bonds for specified purposes related to
   15         utility projects; authorizing an authority to form
   16         alternate entities to finance utility projects;
   17         requiring the governing body of the authority to adopt
   18         a financing resolution and impose a utility project
   19         charge on customers of a publicly owned utility as a
   20         condition of utility project financing; specifying
   21         required and optional provisions of the financing
   22         resolution; specifying powers of the authority;
   23         requiring the local agency or its publicly owned
   24         utility to assist the authority in the establishment
   25         or adjustment of the utility project charge; requiring
   26         that customers of the public utility specified in the
   27         financing resolution pay the utility project charge;
   28         providing for adjustment of the utility project
   29         charge; establishing ownership of the revenues of the
   30         utility project charge; requiring the local agency or
   31         its publicly owned utility to collect the utility
   32         project charge; conditioning a customer’s receipt of
   33         public utility services on payment of the utility
   34         project charge; authorizing a local agency or its
   35         publicly owned utility to use available remedies to
   36         enforce collection of the utility project charge;
   37         providing that the pledge of the utility project
   38         charge to secure payment of bonds issued to finance
   39         the utility project is irrevocable and cannot be
   40         reduced or impaired except under certain conditions;
   41         providing that a utility project charge constitutes
   42         utility project property; providing that utility
   43         project property is subject to a lien to secure
   44         payment of costs relating to utility cost containment
   45         bonds; establishing payment priorities for the use of
   46         revenues of the utility project property; providing
   47         for the issuance and validation of utility cost
   48         containment bonds; securing the payment of utility
   49         cost containment bonds and related costs; providing
   50         that utility cost containment bonds do not obligate
   51         the state or any political subdivision and are not
   52         backed by their full faith and credit and taxing
   53         power; requiring that certain disclosures be printed
   54         on utility cost containment bonds; providing that
   55         financing costs related to utility cost containment
   56         bonds are an obligation of the authority only;
   57         providing limitations on the state’s ability to alter
   58         financing costs or utility project property under
   59         certain circumstances; prohibiting an authority with
   60         outstanding payment obligations on utility cost
   61         containment bonds from becoming a debtor under certain
   62         federal or state laws; providing for construction;
   63         endowing public entities with certain powers;
   64         providing an effective date.
   65          
   66  Be It Enacted by the Legislature of the State of Florida:
   67  
   68         Section 1. Utility Cost Containment Bond Act.—
   69         (1) SHORT TITLE.—This section may be cited as the “Utility
   70  Cost Containment Bond Act.”
   71         (2) DEFINITIONS.—As used in this section, the term:
   72         (a) “Authority” means an entity created under s.
   73  163.01(7)(g), Florida Statutes, that provides public utility
   74  services and whose membership consists of at least three
   75  counties. The term includes any successor to the powers and
   76  functions of such an entity.
   77         (b) “Cost,” as applied to a utility project or a portion of
   78  a utility project financed under this section, means:
   79         1. Any part of the expense of constructing, renovating, or
   80  acquiring lands, structures, real or personal property, rights,
   81  rights-of-way, franchises, easements, and interests acquired or
   82  used for a utility project;
   83         2. The expense of demolishing or removing any buildings or
   84  structures on acquired land, including the expense of acquiring
   85  any lands to which the buildings or structures may be moved, and
   86  the cost of all machinery and equipment used for the demolition
   87  or removal;
   88         3. Finance charges;
   89         4. Interest, as determined by the authority;
   90         5. Provisions for working capital and debt service
   91  reserves;
   92         6. Expenses for extensions, enlargements, additions,
   93  replacements, renovations, and improvements;
   94         7. Expenses for architectural, engineering, financial,
   95  accounting, and legal services, plans, specifications,
   96  estimates, and administration; or
   97         8. Any other expenses necessary or incidental to
   98  determining the feasibility of constructing a utility project or
   99  incidental to the construction, acquisition, or financing of a
  100  utility project.
  101         (c) “Customer” means a person receiving water or wastewater
  102  service from a publicly owned utility.
  103         (d) “Finance” or “financing” includes refinancing.
  104         (e) “Financing cost” means:
  105         1. Interest and redemption premiums that are payable on
  106  utility cost containment bonds;
  107         2. The cost of retiring the principal of utility cost
  108  containment bonds, whether at maturity, including acceleration
  109  of maturity upon an event of default, or upon redemption,
  110  including sinking fund redemption;
  111         3. The cost related to issuing or servicing utility cost
  112  containment bonds, including any payment under an interest rate
  113  swap agreement and any type of fee;
  114         4. A payment or expense associated with a bond insurance
  115  policy; financial guaranty; contract, agreement, or other credit
  116  or liquidity enhancement for bonds; or contract, agreement, or
  117  other financial agreement entered into in connection with
  118  utility cost containment bonds;
  119         5. Any coverage charges; or
  120         6. The funding of one or more reserve accounts relating to
  121  utility cost containment bonds.
  122         (f) “Financing resolution” means a resolution adopted by
  123  the governing body of an authority that provides for the
  124  financing or refinancing of a utility project with utility cost
  125  containment bonds and that imposes a utility project charge in
  126  connection with the utility cost containment bonds in accordance
  127  with subsection (4). A financing resolution may be separate from
  128  a resolution authorizing the issuance of the bonds.
  129         (g) “Governing body” means the body that governs a local
  130  agency.
  131         (h) “Local agency” means a member of the authority, or an
  132  agency or subdivision of that member, that is sponsoring or
  133  refinancing a utility project, or any municipality, county,
  134  authority, special district, public corporation, regional water
  135  authority, or other governmental entity of the state that is
  136  sponsoring or refinancing a utility project.
  137         (i) “Public utility services” means water or wastewater
  138  services provided by a publicly owned utility. The term does not
  139  include communications services, as defined in s. 202.11,
  140  Florida Statutes, Internet access services, or information
  141  services.
  142         (j) “Publicly owned utility” means a utility providing
  143  retail or wholesale water or wastewater services that is owned
  144  and operated by a local agency. The term includes any successor
  145  to the powers and functions of such a utility.
  146         (k) “Revenue” means income and receipts of the authority
  147  related to the financing of utility projects and issuance of
  148  utility cost containment bonds, including any of the following:
  149         1. Bond purchase agreements;
  150         2. Bonds acquired by the authority;
  151         3. Installment sales agreements and other revenue-producing
  152  agreements entered into by the authority;
  153         4. Utility projects financed or refinanced by the
  154  authority;
  155         5. Grants and other sources of income;
  156         6. Moneys paid by a local agency;
  157         7. Interlocal agreements with a local agency, including all
  158  service agreements; or
  159         8. Interest or other income from any investment of money in
  160  any fund or account established for the payment of principal,
  161  interest, or premiums on utility cost containment bonds, or the
  162  deposit of proceeds of utility cost containment bonds.
  163         (l) “Utility cost containment bonds” means bonds, notes,
  164  commercial paper, variable rate securities, and any other
  165  evidence of indebtedness issued by an authority the proceeds of
  166  which are used directly or indirectly to pay or reimburse a
  167  local agency or its publicly owned utility for the costs of a
  168  utility project and which are secured by a pledge of, and are
  169  payable from, utility project property.
  170         (m) “Utility project” means the acquisition, construction,
  171  installation, retrofitting, rebuilding, or other addition to or
  172  improvement of any equipment, device, structure, process,
  173  facility, technology, rights, or property located within or
  174  outside this state which is used in connection with the
  175  operations of a publicly owned utility.
  176         (n) “Utility project charge” means a charge levied on
  177  customers of a publicly owned utility to pay the financing costs
  178  of utility cost containment bonds issued under subsection (4).
  179  The term includes any adjustments to the utility project charge
  180  under subsection (5).
  181         (o) “Utility project property” means the property right
  182  created pursuant to subsection (6). The term does not include
  183  any interest in a customer’s real or personal property but
  184  includes the right, title, and interest of an authority in any
  185  of the following:
  186         1. The financing resolution, the utility project charge,
  187  and any adjustment to the utility project charge established in
  188  accordance with subsection (5);
  189         2. The financing costs of the utility cost containment
  190  bonds and all revenues, and all collections, claims, payments,
  191  moneys, or proceeds for, or arising from, the utility project
  192  charge; or
  193         3. All rights to obtain adjustments to the utility project
  194  charge pursuant to subsection (5).
  195         (3) UTILITY PROJECTS.—
  196         (a) A local agency that owns and operates a publicly owned
  197  utility may apply to an authority to finance the costs of a
  198  utility project using the proceeds of utility cost containment
  199  bonds. In its application to the authority, the local agency
  200  shall specify the utility project to be financed by the utility
  201  cost containment bonds and the maximum principal amount, the
  202  maximum interest rate, and the maximum stated terms of the
  203  utility cost containment bonds.
  204         (b) A local agency may not apply to an authority for the
  205  financing of a utility project under this section unless the
  206  governing body has determined, in a duly noticed public meeting,
  207  all of the following:
  208         1. The project to be financed is a utility project.
  209         2. The local agency will finance costs of the utility
  210  project, and the costs associated with the financing will be
  211  paid from utility project property, including the utility
  212  project charge for the utility cost containment bonds.
  213         3. Based on the best information available to the governing
  214  body, the rates charged to the local agency’s retail customers
  215  by the publicly owned utility, including the utility project
  216  charge resulting from the financing of the utility project with
  217  utility cost containment bonds, are expected to be lower than
  218  the rates that would be charged if the project were financed
  219  with bonds payable from revenues of the publicly owned utility.
  220         (c) A determination by the governing body that a project to
  221  be financed with utility cost containment bonds is a utility
  222  project is final and conclusive, and the utility cost
  223  containment bonds issued to finance the utility project and the
  224  utility project charge shall be valid and enforceable as set
  225  forth in the financing resolution and the documents relating to
  226  the utility cost containment bonds.
  227         (d) If a local agency that has outstanding utility cost
  228  containment bonds ceases to operate a water or wastewater
  229  utility, directly or through its publicly owned utility,
  230  references in this section to the local agency or to its
  231  publicly owned utility shall be to the successor entity. The
  232  successor entity shall assume and perform all obligations of the
  233  local agency and its publicly owned utility required by this
  234  section and shall assume the servicing agreement required under
  235  subsection (4) while the utility cost containment bonds remain
  236  outstanding.
  237         (4) FINANCING UTILITY PROJECTS.—
  238         (a) An authority may issue utility cost containment bonds
  239  to finance or refinance utility projects; refinance debt of a
  240  local agency incurred in financing or refinancing utility
  241  projects, provided such refinancing results in present value
  242  savings to the local agency; or, with the approval of the local
  243  agency, refinance previously issued utility cost containment
  244  bonds.
  245         1. To finance a utility project, the authority may:
  246         a. Form a single-purpose limited liability company and
  247  authorize the company to adopt the financing resolution of such
  248  utility project; or
  249         b. Create a new single-purpose entity by interlocal
  250  agreement under s. 163.01, Florida Statutes, the membership of
  251  which shall consist of the authority and two or more of its
  252  members or other public agencies.
  253         2. A single-purpose limited liability company or a single
  254  purpose entity may be created by the authority solely for the
  255  purpose of performing the duties and responsibilities of the
  256  authority specified in this section and shall constitute an
  257  authority for all purposes of this section. Reference to the
  258  authority includes a company or entity created under this
  259  paragraph.
  260         (b) The governing body of an authority that is financing
  261  the costs of a utility project shall adopt a financing
  262  resolution and shall impose a utility project charge as
  263  described in subsection (5). All provisions of a financing
  264  resolution adopted pursuant to this section are binding on the
  265  authority.
  266         1. The financing resolution must:
  267         a. Provide a brief description of the financial calculation
  268  method the authority will use in determining the utility project
  269  charge. The calculation method shall include a periodic
  270  adjustment methodology to be applied at least annually to the
  271  utility project charge. The authority shall establish the
  272  allocation of the utility project charge among classes of
  273  customers of the publicly owned utility. The decision of the
  274  authority shall be final and conclusive, and the method of
  275  calculating the utility project charge and the periodic
  276  adjustment may not be changed;
  277         b. Require each customer in the class or classes of
  278  customers specified in the financing resolution who receives
  279  water or wastewater service through the publicly owned utility
  280  to pay the utility project charge regardless of whether the
  281  customer has an agreement to receive water or wastewater service
  282  from a person other than the publicly owned utility;
  283         c. Require that the utility project charge be charged
  284  separately from other charges on the bill of customers of the
  285  publicly owned utility in the class or classes of customers
  286  specified in the financing resolution; and
  287         d. Require that the authority enter into a servicing
  288  agreement with the local agency or its publicly owned utility to
  289  collect the utility project charge.
  290         2. The authority may require in the financing resolution
  291  that, in the event of a default by the local agency or its
  292  publicly owned utility with respect to revenues from the utility
  293  project property, the authority, upon application by the
  294  beneficiaries of the statutory lien as set forth in subsection
  295  (6), shall order the sequestration and payment to the
  296  beneficiaries of revenues arising from utility project property.
  297  This subparagraph does not limit any other remedies available to
  298  the beneficiaries by reason of default.
  299         (c) An authority has all the powers provided in this
  300  section and s. 163.01(7)(g), Florida Statutes.
  301         (d) Each authority shall work with local agencies that
  302  request assistance to determine the most cost-effective manner
  303  of financing regional water projects. If the entities determine
  304  that the issuance of utility cost containment bonds will result
  305  in lower financing costs for a project, the authority shall
  306  cooperate with such local agencies and, if requested by the
  307  local agencies, issue utility cost containment bonds as provided
  308  in this section.
  309         (5) UTILITY PROJECT CHARGE.—
  310         (a) The authority shall impose a sufficient utility project
  311  charge, based on estimates of water or wastewater service usage,
  312  to ensure timely payment of all financing costs with respect to
  313  utility cost containment bonds. The local agency or its publicly
  314  owned utility shall provide the authority with information
  315  concerning the publicly owned utility which may be required by
  316  the authority in establishing the utility project charge.
  317         (b) The utility project charge is a nonbypassable charge to
  318  all present and future customers of the publicly owned utility
  319  in the class or classes of customers specified in the financing
  320  resolution upon its adoption. If a customer of a publicly owned
  321  utility that is subject to a utility project charge enters into
  322  an agreement to purchase water or wastewater service from a
  323  supplier other than the publicly owned utility, the customer
  324  remains liable for the payment of the utility project charge if
  325  the customer has received any service or benefit from the
  326  publicly owned utility after the date the utility project charge
  327  was imposed.
  328         (c) The authority shall determine at least annually and at
  329  such additional intervals as provided in the financing
  330  resolution and documents related to the applicable utility cost
  331  containment bonds whether adjustments to the utility project
  332  charge are required. The authority shall use the adjustment to
  333  correct for any overcollection or undercollection of financing
  334  costs from the utility project charge or to make any other
  335  adjustment necessary to ensure the timely payment of the
  336  financing costs of the utility cost containment bonds, including
  337  adjustment of the utility project charge to pay any debt service
  338  coverage requirement for the utility cost containment bonds. The
  339  local agency or its publicly owned utility shall provide the
  340  authority with information concerning the publicly owned utility
  341  which may be required by the authority in adjusting the utility
  342  project charge.
  343         1. If the authority determines that an adjustment to the
  344  utility project charge is required, the adjustment shall be made
  345  using the methodology specified in the financing resolution.
  346         2. The adjustment may not impose the utility project charge
  347  on a class of customers that was not subject to the utility
  348  project charge pursuant to the financing resolution imposing the
  349  utility project charge.
  350         (d) Revenues from a utility project charge are special
  351  revenues of the authority and do not constitute revenue of the
  352  local agency or its publicly owned utility for any purpose,
  353  including any dedication, commitment, or pledge of revenue,
  354  receipts, or other income that the local agency or its publicly
  355  owned utility has made or will make for the security of any of
  356  its obligations.
  357         (e) The local agency or its publicly owned utility shall
  358  act as a servicing agent for collecting the utility project
  359  charge throughout the duration of the servicing agreement
  360  required by the financing resolution. The local agency or its
  361  publicly owned utility shall hold the money collected in trust
  362  for the exclusive benefit of the persons entitled to have the
  363  financing costs paid from the utility project charge, and the
  364  money does not lose its designation as revenues of the authority
  365  by virtue of possession by the local agency or its publicly
  366  owned utility.
  367         (f) The customer must make timely and complete payment of
  368  all utility project charges as a condition of receiving water or
  369  wastewater service from the publicly owned utility. The local
  370  agency or its publicly owned utility may use its established
  371  collection policies and remedies provided under law to enforce
  372  collection of the utility project charge. A customer liable for
  373  a utility project charge may not withhold payment, in whole or
  374  in part, thereof.
  375         (g) The pledge of a utility project charge to secure
  376  payment of utility cost containment bonds is irrevocable, and
  377  the state, or any other entity, may not reduce, impair, or
  378  otherwise adjust the utility project charge, except that the
  379  authority shall implement the periodic adjustments to the
  380  utility project charge as provided under this subsection.
  381         (6) UTILITY PROJECT PROPERTY.—
  382         (a) A utility project charge constitutes utility project
  383  property on the effective date of the financing resolution
  384  authorizing such utility project charge. Utility project
  385  property constitutes property, including for contracts securing
  386  utility cost containment bonds, regardless of whether the
  387  revenues and proceeds arising with respect to the utility
  388  project property have accrued. Utility project property shall
  389  continuously exist as property for all purposes with all of the
  390  rights and privileges of this section through the end of the
  391  period provided in the financing resolution or until all
  392  financing costs with respect to the related utility cost
  393  containment bonds are paid in full, whichever occurs first.
  394         (b) Upon the effective date of the financing resolution,
  395  the utility project property is subject to a first-priority
  396  statutory lien to secure the payment of the utility cost
  397  containment bonds.
  398         1. The lien secures the payment of all financing costs then
  399  existing or subsequently arising to the holders of the utility
  400  cost containment bonds, the trustees or representatives of the
  401  holders of the utility cost containment bonds, and any other
  402  entity specified in the financing resolution or the documents
  403  relating to the utility cost containment bonds.
  404         2. The lien attaches to the utility project property
  405  regardless of the current ownership of the utility project
  406  property, including any local agency or its publicly owned
  407  utility, the authority, or any other person.
  408         3. Upon the effective date of the financing resolution, the
  409  lien is valid and enforceable against the owner of the utility
  410  project property and all third parties, and additional public
  411  notice is not required.
  412         4. The lien is a continuously perfected lien on all
  413  revenues and proceeds generated from the utility project
  414  property regardless of whether the revenues or proceeds have
  415  accrued.
  416         (c) All revenues with respect to utility project property
  417  related to utility cost containment bonds, including payments of
  418  the utility project charge, shall be applied first to the
  419  payment of the financing costs of the utility cost containment
  420  bonds then due, including the funding of reserves for the
  421  utility cost containment bonds. Any excess revenues shall be
  422  applied as determined by the authority for the benefit of the
  423  utility for which the utility cost containment bonds were
  424  issued.
  425         (7) UTILITY COST CONTAINMENT BONDS.—
  426         (a) Utility cost containment bonds shall be issued within
  427  the parameters of the financing provided by the authority
  428  pursuant to this section. The proceeds of the utility cost
  429  containment bonds made available to the local agency or its
  430  publicly owned utility shall be used for the utility project
  431  identified in the application for financing of the utility
  432  project or used to refinance indebtedness of the local agency
  433  which financed or refinanced utility projects.
  434         (b) Utility cost containment bonds shall be issued as set
  435  forth in this section and s. 163.01(7)(g)8., Florida Statutes,
  436  and may be validated pursuant to s. 163.01(7)(g)9., Florida
  437  Statutes.
  438         (c) The authority shall pledge the utility project property
  439  as security for the payment of the utility cost containment
  440  bonds. All rights of an authority with respect to utility
  441  project property pledged as security for the payment of utility
  442  cost containment bonds shall be for the benefit of, and
  443  enforceable by, the beneficiaries of the pledge to the extent
  444  provided in the financing documents relating to the utility cost
  445  containment bonds.
  446         1. If utility project property is pledged as security for
  447  the payment of utility cost containment bonds, the local agency
  448  or its publicly owned utility shall enter into a contract with
  449  the authority which requires, at a minimum, that the publicly
  450  owned utility:
  451         a. Continue to operate its publicly owned utility,
  452  including the utility project that is being financed or
  453  refinanced;
  454         b. Collect the utility project charge from customers for
  455  the benefit and account of the authority and the beneficiaries
  456  of the pledge of the utility project charge; and
  457         c. Separately account for and remit revenue from the
  458  utility project charge to, or for the account of, the authority.
  459         2. The pledge of a utility project charge to secure payment
  460  of utility cost containment bonds is irrevocable, and the state
  461  or any other entity may not reduce, impair, or otherwise adjust
  462  the utility project charge, except that the authority shall
  463  implement periodic adjustments to the utility project charge as
  464  provided under subsection (5).
  465         (d) Utility cost containment bonds shall be nonrecourse to
  466  the credit or any assets of the local agency or the publicly
  467  owned utility but shall be payable from, and secured by a pledge
  468  of the utility project property relating to the utility cost
  469  containment bonds and any additional security or credit
  470  enhancement specified in the documents relating to the utility
  471  cost containment bonds. If, pursuant to subsection (4), the
  472  authority is financing the project through a single-purpose
  473  limited liability company, the utility cost containment bonds
  474  shall be payable from, and secured by, a pledge of amounts paid
  475  by the company to the authority from the applicable utility
  476  project property. This paragraph shall be the exclusive method
  477  of perfecting a pledge of utility project property by the
  478  company securing the payment of financing costs under any
  479  agreement of the company in connection with the issuance of
  480  utility cost containment bonds.
  481         (e) The issuance of utility cost containment bonds does not
  482  obligate the state or any political subdivision thereof to levy
  483  or to pledge any form of taxation to pay the utility cost
  484  containment bonds or to make any appropriation for their
  485  payment. Each utility cost containment bond must contain on its
  486  face a statement in substantially the following form:
  487  
  488   “Neither the full faith and credit nor the taxing power of the  
  489  State of Florida or any political subdivision thereof is pledged 
  490   to the payment of the principal of, or interest on, this bond.” 
  491  
  492         (f) Notwithstanding any other law or this section, a
  493  financing resolution or other resolution of the authority, or
  494  documents relating to utility cost containment bonds, the
  495  authority may not rescind, alter, or amend any resolution or
  496  document that pledges utility cost charges for payment of
  497  utility cost containment bonds.
  498         (g) Subject to the terms of any pledge document created
  499  under this section, the validity and relative priority of a
  500  pledge is not defeated or adversely affected by the commingling
  501  of revenues generated by the utility project property with other
  502  funds of the local agency or the publicly owned utility
  503  collecting a utility project charge on behalf of an authority.
  504         (h) Financing costs in connection with utility cost
  505  containment bonds are a special obligation of the authority and
  506  do not constitute a liability of the state or any political
  507  subdivision thereof. Financing costs are not a pledge of the
  508  full faith and credit of the state or any political subdivision
  509  thereof, including the authority, but are payable solely from
  510  the funds identified in the documents relating to the utility
  511  cost containment bonds. This paragraph does not preclude
  512  guarantees or credit enhancements in connection with utility
  513  cost containment bonds.
  514         (i) Except as otherwise provided in this section with
  515  respect to adjustments to a utility project charge, the recovery
  516  of the financing costs for the utility cost containment bonds
  517  from the utility project charge shall be irrevocable, and the
  518  authority does not have the power, by rescinding, altering, or
  519  amending the applicable financing resolution, to revalue or
  520  revise for ratemaking purposes the financing costs of utility
  521  cost containment bonds; to determine that the financing costs
  522  for the related utility cost containment bonds or the utility
  523  project charge is unjust or unreasonable; or to in any way
  524  reduce or impair the value of utility project property that
  525  includes the utility project charge, either directly or
  526  indirectly. The amount of revenues arising with respect to the
  527  financing costs for the related utility cost containment bonds
  528  or the utility project charge are not subject to reduction,
  529  impairment, postponement, or termination for any reason until
  530  all financing costs to be paid from the utility project charge
  531  are fully met and discharged.
  532         (j) Except as provided in subsection (5) with respect to
  533  adjustments to a utility project charge, the state pledges and
  534  agrees with the owners of utility cost containment bonds that
  535  the state may not limit or alter the financing costs or the
  536  utility project property, including the utility project charge,
  537  relating to the utility cost containment bonds, or any rights
  538  related to the utility project property, until all financing
  539  costs with respect to the utility cost containment bonds are
  540  fully met and discharged. This paragraph does not preclude
  541  limitation or alteration if adequate provision is made by law to
  542  protect the owners. The authority may include the state’s pledge
  543  in the governing documents for utility cost containment bonds.
  544         (8) LIMITATION ON DEBT RELIEF.—Notwithstanding any other
  545  law, an authority that issued utility cost containment bonds may
  546  not, and a governmental officer or organization may not
  547  authorize the authority to, become a debtor under the United
  548  States Bankruptcy Code or become the subject of any similar case
  549  or proceeding under any other state or federal law if any
  550  payment obligation from utility project property remains with
  551  respect to the utility cost containment bonds.
  552         (9) CONSTRUCTION.—This section and all grants of power and
  553  authority in this section shall be liberally construed to
  554  effectuate their purposes. All incidental powers necessary to
  555  carry this section into effect are expressly granted to, and
  556  conferred upon, public entities.
  557         Section 2. This act shall take effect July 1, 2015.