CS/CS/HB 617 - Utility Cost Containment Bond Act

• Authorizes local government entities to finance water and wastewater utility projects by issuing utility cost containment bonds through multi-county authorities.

• Requires authorities to adopt a financing resolution imposing a nonbypassable utility project charge on customers of the publicly owned utility to pay bond financing costs, with adjustments determined at least annually.

• Establishes utility project charges as special revenues of the authority, not the local agency, and creates a first-priority statutory lien on utility project property to secure bond payments.

• Prohibits the state from reducing, impairing, or altering utility project charges or financing costs once bonds are issued, except for periodic adjustments as provided in the financing resolution.

• Requires successor entities to assume all obligations if a local agency with outstanding bonds ceases operating a utility; effective July 1, 2015.