HB 1107 Summary

• Authorizes authorities with at least three county members to finance or refinance utility projects using utility cost containment bonds secured by utility project charges levied on customer bills.

• Requires financing resolutions to include separate utility project charges on bills, a periodic adjustment formula applied at least annually to correct over/undercollection, and a servicing agreement with the local agency to collect charges.

• Establishes utility project charges as nonbypassable charges on customers and irrevocable pledges that cannot be reduced or impaired by the state until all financing costs are paid in full.

• Prohibits the state or political subdivisions from being obligated to levy taxes or make appropriations to pay bonds, and prohibits authorities from filing bankruptcy while payment obligations remain on utility cost containment bonds.

• Creates a first priority statutory lien on utility project property upon effectiveness of the financing resolution to secure payment of all financing costs to bondholders.

• Effective July 1, 2014.