CS/HB 347 - Utility Cost Containment Bond Act

• Authorizes local agencies and authorities to finance utility projects by issuing utility cost containment bonds secured by non-bypassable charges on utility customers' bills.

• Requires governing bodies to determine in public meetings that project financing through these bonds will result in lower customer rates than traditional utility revenue bonds, with savings benefiting customers through rate reductions or programs.

• Establishes utility project charges as special revenues of authorities (not local agencies), with first-priority statutory liens securing bond repayment and charges adjusted at least annually to ensure timely financing cost payments.

• Prohibits state or other entities from reducing or impairing utility project charges except for periodic adjustments, and prevents authorities with outstanding bond obligations from filing bankruptcy if utility project payment obligations remain.

• Effective date: July 1, 2016.