CS for CS for SB 1102 - Utility Cost Containment Bond Act

• Authorizes authorities (multi-county entities providing public utilities) to issue utility cost containment bonds to finance or refinance water and wastewater utility projects for local agencies.

• Requires local agencies seeking bond financing to demonstrate in a public meeting that the project is a utility project and that utility project charges will result in lower rates than traditional utility revenue bonds.

• Establishes a utility project charge on customers of publicly owned water and wastewater utilities as a non-bypassable fee to pay financing costs, with adjustments determined at least annually by the authority.

• Creates a first-priority statutory lien on utility project property (the utility project charge and related revenues) to secure bond payments, which cannot be reduced or impaired except for authorized periodic adjustments.

• Specifies that utility cost containment bonds are payable only from utility project property revenues, not backed by state or local government full faith and credit, and prohibits authorities with outstanding bond obligations from filing bankruptcy.