Florida Senate - 2014                                     SB 910
       
       
        
       By Senator Legg
       
       
       
       
       
       17-01136-14                                            2014910__
    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 cost of a
    5         utility project by issuing utility cost containment
    6         bonds upon application by a local agency; specifying
    7         application requirements; requiring any successor
    8         entity 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; authorizing an
   11         authority to issue utility cost containment bonds for
   12         specified purposes related to utility projects;
   13         authorizing an authority to form alternate entities to
   14         finance utility projects; requiring the governing body
   15         of the authority to adopt a financing resolution and
   16         impose a utility project charge on customers of a
   17         publicly owned utility as a condition of utility
   18         project financing; specifying required and optional
   19         provisions of the financing resolution; specifying
   20         powers of the authority; requiring the local agency or
   21         its publicly owned utility to assist the authority in
   22         the establishment or adjustment of the utility project
   23         charge; requiring that customers of the public utility
   24         specified in the financing resolution pay the utility
   25         project charge; providing for adjustment of the
   26         utility project charge; establishing ownership of the
   27         revenues of the utility project charge; requiring the
   28         local agency or its publicly owned utility to collect
   29         the utility project charge; conditioning a customer’s
   30         receipt of public utility services on payment of the
   31         utility project charge; authorizing a local agency or
   32         its publicly owned utility to use available remedies
   33         to enforce collection of the utility project charge;
   34         providing that the pledge of the utility project
   35         charge or the utility project property to secure
   36         payment of bonds issued to finance the utility project
   37         is irrevocable and cannot be reduced or impaired
   38         except under certain conditions; providing that a
   39         utility project charge constitutes utility project
   40         property; providing that utility project property is
   41         subject to a lien to secure payment of costs relating
   42         to utility cost containment bonds; establishing
   43         payment priorities for the use of revenues of the
   44         utility project property; providing for the issuance
   45         and validation of utility cost containment bonds;
   46         securing the payment of utility cost containment bonds
   47         and related costs; providing that utility cost
   48         containment bonds do not obligate the state or any
   49         political subdivision thereof and are not backed by
   50         their full faith and credit and taxing power;
   51         requiring that certain disclosures be printed on
   52         utility cost containment bonds; providing that
   53         financing costs related to utility cost containment
   54         bonds are an obligation of the authority only;
   55         securing the payment of the financing costs of utility
   56         cost containment bonds; prohibiting an authority with
   57         outstanding payment obligations on utility cost
   58         containment bonds from becoming a debtor under certain
   59         federal or state laws; providing for construction;
   60         endowing public entities with certain powers;
   61         providing an effective date.
   62          
   63  Be It Enacted by the Legislature of the State of Florida:
   64  
   65         Section 1. Utility Cost Containment Bond Act.—
   66         (1) SHORT TITLE.—This section may be cited as the “Utility
   67  Cost Containment Bond Act.”
   68         (2)DEFINITIONS.—As used in this section, the term:
   69         (a) “Authority” means an entity created pursuant to s.
   70  163.01(7)(g), Florida Statutes, which provides public utility
   71  services and whose membership consists of at least three
   72  counties. The term includes any successor to the powers and
   73  functions of such an entity.
   74         (b) “Cost,” as applied to a utility project or a portion of
   75  a utility project financed under this act, means:
   76         1. Any part of the expense of constructing, renovating or
   77  acquiring lands, structures, real or personal property, rights,
   78  rights-of-way, franchises, easements, and interests acquired or
   79  used for a utility project.
   80         2. The expense of demolishing or removing any buildings or
   81  structures on acquired land, including the expense of acquiring
   82  any lands to which the buildings or structures may be moved, and
   83  the cost of all machinery and equipment used for the demolition
   84  or removal.
   85         3. Finance charges.
   86         4. Interest, as determined by the authority.
   87         5. Provisions for working capital and debt service
   88  reserves.
   89         6. Expenses for extensions, enlargements, additions,
   90  replacements, renovations, and improvements.
   91         7.Expenses for architectural, engineering, financial,
   92  accounting, and legal services, plans, specifications,
   93  estimates, and administration.
   94         8. Any other expense necessary or incidental to determining
   95  the feasibility of constructing any utility project or
   96  incidental to the construction, acquisition, or financing of any
   97  utility project.
   98         (c) “Customer” means a person receiving water, wastewater,
   99  electric, or stormwater service from a publicly owned utility.
  100         (d) “Financing costs” means any of the following:
  101         1. Interest and redemption premiums that are payable on
  102  utility cost containment bonds.
  103         2. The cost of retiring the principal of utility cost
  104  containment bonds, whether at maturity, including acceleration
  105  of maturity upon an event of default, or upon redemption,
  106  including sinking fund redemption.
  107         3. The cost related to issuing or servicing utility cost
  108  containment bonds, including any payment under an interest rate
  109  swap agreement and any type of fee.
  110         4. A payment or expense associated with a bond insurance
  111  policy; financial guaranty; a contract, agreement, or other
  112  credit or liquidity enhancement for bonds; or a contract,
  113  agreement, or other financial agreement entered into in
  114  connection with utility cost containment bonds.
  115         5. Any coverage charges.
  116         6. The funding of one or more reserve accounts relating to
  117  utility cost containment bonds.
  118         (e) “Finance” or “financing” includes refinancing.
  119         (f) “Financing resolution” means a resolution adopted by
  120  the governing body of an authority that provides for the
  121  financing or refinancing of a utility project with utility cost
  122  containment bonds and that imposes a utility project charge in
  123  connection with the utility cost containment bonds in accordance
  124  with subsection (4). A financing resolution may be separate from
  125  a resolution authorizing the issuance of the bonds.
  126         (g) “Governing body” means the body that governs a local
  127  agency.
  128         (h) “Local agency” means a member of the authority, or an
  129  agency or subdivision of that member, which is sponsoring or
  130  refinancing a utility project, or any municipality, county,
  131  authority, special district, public corporation, or other
  132  governmental entity of the state that is sponsoring or
  133  refinancing a utility project.
  134         (i) “Public utility services” means any of the following
  135  services provided by a publicly owned utility:
  136         1. Water.
  137         2. Wastewater.
  138         3. Electric.
  139         4. Stormwater.
  140         (j) “Publicly owned utility” means a utility furnishing
  141  water, wastewater, electric, or stormwater service that is owned
  142  and operated by a local agency. The term includes any successor
  143  to the powers and functions of such a utility.
  144         (k) “Revenue” means income and receipts of the authority
  145  from any of the following:
  146         1. A bond purchase agreement.
  147         2. Bonds acquired by the authority.
  148         3. Installment sales agreements and other revenue-producing
  149  agreements entered into by the authority.
  150         4. Utility projects financed or refinanced by the
  151  authority.
  152         5. Grants and other sources of income.
  153         6. Moneys paid by a local agency.
  154         7. Interlocal agreements with a local agency.
  155         8. Interest or other income from any investment of money in
  156  any fund or account established for the payment of principal,
  157  interest, or premiums on utility cost containment bonds, or the
  158  deposit of proceeds of utility cost containment bonds.
  159         (l) “Utility cost containment bonds” means bonds, notes,
  160  commercial paper, variable rate securities, and any other
  161  evidence of indebtedness issued by an authority, the proceeds of
  162  which are used directly or indirectly to pay or reimburse a
  163  local agency or its publicly owned utility for the costs of a
  164  utility project, and which are secured by a pledge of, and are
  165  payable from, utility project property.
  166         (m) “Utility project” means the acquisition, construction,
  167  installation, retrofitting, rebuilding, or other addition to or
  168  improvement of any equipment, device, structure, process,
  169  facility, technology, rights, or property located within or
  170  outside this state which is used in connection with the
  171  operations of a publicly owned utility.
  172         (n) “Utility project property” means the property right
  173  created pursuant to subsection (6) including the right, title,
  174  and interest of an authority in any of the following:
  175         1. The financing resolution, the utility project charge,
  176  and any adjustment to the utility project charge established in
  177  accordance with subsection (5).
  178         2. The financing costs of the utility cost containment
  179  bonds and all revenues, and all collections, claims, payments,
  180  moneys, or proceeds for, or arising from, the utility project
  181  charge.
  182         3. All rights to obtain adjustments to the utility project
  183  charge pursuant to subsection (5).
  184         (3) UTILITY PROJECTS.—
  185         (a) A local agency that owns and operates a publicly owned
  186  utility may apply to an authority to finance the costs of a
  187  utility project using the proceeds of utility cost containment
  188  bonds. In its application to the authority, the local agency
  189  shall specify the utility project to be financed by the utility
  190  cost containment bonds and the maximum principal amount, the
  191  maximum interest rate, and the maximum stated terms of the
  192  utility cost containment bonds.
  193         (b) A local agency may not apply to an authority for the
  194  financing of a utility project under this section unless the
  195  governing body has determined all of the following:
  196         1. The project to be financed is a utility project.
  197         2. The local agency will finance costs of the utility
  198  project and the financing costs associated with the financing
  199  will be paid from utility project property, including the
  200  utility project charge for the utility cost containment bonds.
  201         3. Based on the best information available to the governing
  202  body, the rates charged to the local agency’s retail customers
  203  by the publicly owned utility, including the utility project
  204  charge resulting from the financing of the utility project with
  205  utility cost containment bonds, are expected to be lower than
  206  the rates that would be charged if the project was financed with
  207  bonds payable from revenues of the publicly owned utility.
  208         (c) A determination by the governing body that a project to
  209  be financed with utility cost containment bonds is a utility
  210  project is final and conclusive and the utility cost containment
  211  bonds issued to finance the utility project and the utility
  212  project charge shall be valid and enforceable as set forth in
  213  the financing resolution and the documents relating to the
  214  utility cost containment bonds.
  215         (d) If a local agency that has outstanding utility cost
  216  containment bonds ceases to operate a water, wastewater,
  217  electric, or stormwater utility, directly or through its
  218  publicly owned utility, references in this section to the local
  219  agency or to its publicly owned utility shall be to the
  220  successor entity. The successor entity shall assume and perform
  221  all obligations of the local agency and its publicly owned
  222  utility required by this section and shall assume the servicing
  223  agreement required under subsection (4) while the utility cost
  224  containment bonds remain outstanding.
  225         (4) FINANCING UTILITY PROJECTS.—
  226         (a) An authority may issue utility cost containment bonds
  227  to finance or refinance utility projects; refinance debt of a
  228  local agency incurred in financing or refinancing utility
  229  projects, provided such refinancing results in present value
  230  savings to the local agency; or, with the approval of the local
  231  agency, refinance previously issued utility cost containment
  232  bonds.
  233         1. To finance a utility project, the authority may:
  234         a. Form a single-purpose limited liability company and
  235  authorize the company to adopt the financing resolution of such
  236  utility project; or
  237         b. Create a new single-purpose entity by interlocal
  238  agreement whose membership shall consist of the authority and
  239  two or more of its members or other public agencies.
  240         2. A single-purpose limited liability company or a single
  241  purpose entity may be created by the authority solely for the
  242  purpose of performing the duties and responsibilities of the
  243  authority specified in this section and shall constitute an
  244  authority for all purposes of this section. Reference to the
  245  authority includes a company or entity created under this
  246  paragraph.
  247         (b) The governing body of an authority that is financing
  248  the costs of a utility project shall adopt a financing
  249  resolution and shall impose a utility project charge as
  250  described in subsection (5). All provisions of a financing
  251  resolution adopted pursuant to this section are binding on the
  252  authority.
  253         1. The financing resolution must:
  254         a. Provide a brief description of the financial calculation
  255  method the authority will use in determining the utility project
  256  charge. The calculation method shall include a periodic
  257  adjustment methodology to be applied at least annually to the
  258  utility project charge. The authority shall establish the
  259  allocation of the utility project charge among classes of
  260  customers of the publicly owned utility. The decision of the
  261  authority shall be final and conclusive, and the method of
  262  calculating the utility project charge and the periodic
  263  adjustment may not be changed.
  264         b. Require each customer in the class or classes of
  265  customers specified in the financing resolution who receives
  266  water, wastewater, electric, or stormwater service through the
  267  publicly owned utility to pay the utility project charge
  268  regardless of whether the customer has an agreement to receive
  269  water, wastewater, electric, or stormwater service from a person
  270  other than the publicly owned utility.
  271         c. Require that the utility project charge be charged
  272  separately from other charges on the bill of customers of the
  273  publicly owned utility in the class or classes of customers
  274  specified in the financing resolution.
  275         d. Require that the authority enter into a servicing
  276  agreement with the local agency or its publicly owned utility to
  277  collect the utility project charge.
  278         2. The authority may require in the financing resolution
  279  that, in the event of a default by the local agency or its
  280  publicly owned utility with respect to revenues from the utility
  281  project property, the authority, upon application by the
  282  beneficiaries of the statutory lien as set forth in subsection
  283  (6), shall order the sequestration and payment to the
  284  beneficiaries of revenues arising from utility project property.
  285  This provision does not limit any other remedies available to
  286  the beneficiaries by reason of default.
  287         (c) An authority has all the powers provided in this
  288  section and under s. 163.01(7)(g), Florida Statutes.
  289         (5) UTILITY PROJECT CHARGE.—
  290         (a) The authority shall impose a sufficient utility project
  291  charge, based on estimates of water, wastewater, electric, or
  292  stormwater service usage, to ensure timely payment of all
  293  financing costs with respect to utility cost containment bonds.
  294  The local agency or its publicly owned utility shall provide the
  295  authority with information concerning the publicly owned utility
  296  which may be required by the authority in establishing the
  297  utility project charge.
  298         (b) The utility project charge is a nonbypassable charge to
  299  all present and future customers of the publicly owned utility
  300  in the class or classes of customers specified in the financing
  301  resolution upon its adoption. If a customer of the publicly
  302  owned utility that is subject to a utility project charge enters
  303  into an agreement to purchase water, wastewater, electric, or
  304  stormwater service from a person other than the publicly owned
  305  utility, the customer shall remain liable for the payment of the
  306  utility project charge as if the customer had not entered into
  307  the agreement. The customer may discharge the liability by
  308  continuing to pay the utility project charge as it accrues or by
  309  making a one-time payment, as determined by the authority.
  310         (c) The authority shall determine at least annually and at
  311  such additional intervals as provided in the financing
  312  resolution and documents related to the applicable utility cost
  313  containment bonds whether adjustments to the utility project
  314  charge are required. The authority shall use the adjustment to
  315  correct for any overcollection or undercollection of financing
  316  costs from the utility project charge or to make any other
  317  adjustment necessary to ensure the timely payment of the
  318  financing costs of the utility cost containment bonds, including
  319  adjustment of the utility project charge to pay any debt service
  320  coverage requirement for the utility cost containment bonds. The
  321  local agency or its publicly owned utility shall provide the
  322  authority with information concerning the publicly owned utility
  323  which may be required by the authority in adjusting the utility
  324  project charge.
  325         1. If the authority determines that an adjustment to the
  326  utility project charge is required, the adjustment shall be made
  327  using the methodology specified in the financing resolution.
  328         2. The adjustment may not impose the utility project charge
  329  on a class of customers that was not subject to the utility
  330  project charge pursuant to the financing resolution imposing the
  331  utility project charge.
  332         (d) Revenues from a utility project charge are special
  333  revenues of the authority and do not constitute revenue of the
  334  local agency or its publicly owned utility for any purpose,
  335  including, but not limited to, any dedication, commitment, or
  336  pledge of revenue, receipts, or other income that the local
  337  agency or its publicly owned utility has made or will make for
  338  the security of any of its obligations.
  339         (e) The local agency or its publicly owned utility shall
  340  act as a servicing agent for collecting the utility project
  341  charge throughout the duration of the servicing agreement
  342  required by the financing resolution. The local agency or its
  343  publicly owned utility shall hold the money collected in trust
  344  for the exclusive benefit of the persons entitled to have the
  345  financing costs paid from the utility project charge and the
  346  money does not lose its character as revenues of the authority
  347  by virtue of possession by the local agency or its publicly
  348  owned utility.
  349         (f) The timely and complete payment of all utility project
  350  charges by the customer shall be a condition of receiving water,
  351  wastewater, electric, or stormwater service from the publicly
  352  owned utility. The local agency or its publicly owned utility
  353  may use its established collection policies and remedies
  354  provided under law to enforce collection of the utility project
  355  charge. A customer liable for a utility project charge may not
  356  withhold payment, in whole or in part, thereof.
  357         (g) The pledge of a utility project charge to secure
  358  payment of utility cost containment bonds is irrevocable, and
  359  the state, or any other entity, may not reduce, impair, or
  360  otherwise adjust the utility project charge, except that the
  361  authority shall implement the periodic adjustments to the
  362  utility project charge as provided under this subsection.
  363         (6) UTILITIY PROJECT PROPERTY.—
  364         (a) A utility project charge constitutes utility project
  365  property on the effective date of the financing resolution
  366  authorizing such utility project charge. Utility project
  367  property constitutes property, including for contracts securing
  368  utility cost containment bonds, regardless of whether the
  369  revenues and proceeds arising with respect to the utility
  370  project property have accrued. Utility project property shall
  371  continuously exist as property for all purposes with all of the
  372  rights and privileges of this section for the period provided in
  373  the financing resolution or until all financing costs with
  374  respect to the related utility cost containment bonds are paid
  375  in full, whichever occurs first.
  376         (b) Upon the effective date of the financing resolution,
  377  the utility project property is subject to a first priority
  378  statutory lien to secure the payment of the utility cost
  379  containment bonds.
  380         1. The lien secures the payment of all financing costs then
  381  existing or subsequently arising to the holders of the utility
  382  cost containment bonds, the trustee or representative for the
  383  holders of the utility cost containment bonds, and any other
  384  entity specified in the financing resolution or the documents
  385  relating to the utility cost containment bonds.
  386         2. The lien attaches to the utility project property
  387  regardless of the current ownership of the utility project
  388  property, including any local agency or its publicly owned
  389  utility, the authority, or other person.
  390         3. Upon the effective date of the financing resolution, the
  391  lien is valid and enforceable against the owner of the utility
  392  project property and all third parties and additional public
  393  notice is not required.
  394         4.The lien is a continuously perfected lien on all
  395  revenues and proceeds generated from the utility project
  396  property, regardless of whether the revenues or proceeds have
  397  accrued.
  398         (c) All revenues with respect to utility project property
  399  related to utility cost containment bonds, including payments of
  400  the utility project charge, shall be applied first to the
  401  payment of the financing costs of the utility cost containment
  402  bonds then due, including the funding of reserves for the
  403  utility cost containment bonds. Any excess revenues shall be
  404  applied as determined by the authority for the benefit of the
  405  utility for which the utility cost containment bonds were
  406  issued.
  407         (7) UTILITY COST CONTAINMENT BONDS.—
  408         (a) Utility cost containment bonds shall be within the
  409  parameters of the financing provided by the authority pursuant
  410  to this section. The proceeds of the utility cost containment
  411  bonds made available to the local agency or its publicly owned
  412  utility shall be used for the utility project identified in the
  413  application for financing of the utility project or used to
  414  refinance indebtedness of the local agency which financed or
  415  refinanced utility projects.
  416         (b) Utility cost containment bonds shall be issued in
  417  accordance with this section and s. 163.01(7)(g)8., Florida
  418  Statutes, and may be validated pursuant to s. 163.01(7)(g)9,
  419  Florida Statutes.
  420         (c) The authority shall pledge the utility project property
  421  as security for the payment of the utility cost containment
  422  bonds. All rights of an authority with respect to utility
  423  project property pledged as security for the payment of utility
  424  cost containment bonds shall be for the benefit of, and
  425  enforceable by, the beneficiaries of the pledge to the extent
  426  provided in the financing documents relating to the utility cost
  427  containment bonds.
  428         1. If utility project property is pledged as security for
  429  the payment of utility cost containment bonds, the local agency
  430  or its publicly owned utility shall enter into a contract with
  431  the authority which requires, at a minimum, that the publicly
  432  owned utility:
  433         a. Continue to operate its publicly owned utility,
  434  including the utility project that is being financed or
  435  refinanced.
  436         b. Collect the utility project charge from customers for
  437  the benefit and account of the authority and the beneficiaries
  438  of the pledge of the utility project charge.
  439         c. Separately account for and remit revenue from the
  440  utility project charge to, or for the account of, the authority.
  441         2. The pledge of a utility project charge to secure payment
  442  of utility cost containment bonds is irrevocable, and the state
  443  or any other entity may not reduce, impair, or otherwise adjust
  444  the utility project charge, except that the authority shall
  445  implement periodic adjustments to the utility project charge as
  446  provided under subsection (5).
  447         (d) Utility cost containment bonds shall be nonrecourse to
  448  the credit or any assets of the local agency or the publicly
  449  owned utility but shall be payable from, and secured by a pledge
  450  of, the utility project property relating to the utility cost
  451  containment bonds and any additional security or credit
  452  enhancement specified in the documents relating to the utility
  453  cost containment bonds. If, pursuant to subsection (4), the
  454  authority is financing the project through a single-purpose
  455  limited liability company, the utility cost containment bonds
  456  shall be payable from, and secured by, a pledge of amounts paid
  457  by the company to the authority from the applicable utility
  458  project property. This provision shall be the exclusive method
  459  of perfecting a pledge of utility project property by the
  460  company securing the payment of financing costs under any
  461  agreement of the company in connection with the issuance of
  462  utility cost containment bonds.
  463         (e) The issuance of utility cost containment bonds does not
  464  obligate the state or any political subdivision thereof to levy
  465  or to pledge any form of taxation to pay the utility cost
  466  containment bonds or to make any appropriation for their
  467  payment. All utility cost containment bonds must contain on
  468  their face a statement in substantially the following form:
  469  
  470   “Neither the full faith and credit nor the taxing power of the  
  471  State of Florida or any political subdivision thereof is pledged 
  472   to the payment of the principal of, or interest on, this bond.” 
  473  
  474         (f) Notwithstanding any other law or this section, a
  475  financing resolution or other resolution of the authority, or
  476  documents relating to utility cost containment bonds, the
  477  authority may not rescind, alter, or amend any resolution or
  478  document that pledges utility cost charges for payment of
  479  utility cost containment bonds.
  480         (g) Subject to the terms of the pledge document created
  481  under this part, the validity and relative priority of a pledge
  482  is not defeated or adversely affected by the commingling of
  483  revenues generated by the utility project property with other
  484  funds of the local agency or the publicly owned utility
  485  collecting a utility project charge on behalf of an authority.
  486         (h) Financing costs in connection with utility cost
  487  containment bonds are a special obligation of the authority and
  488  do not constitute a liability of the state or any political
  489  subdivision thereof. Financing costs are not a pledge of the
  490  full faith and credit of the state or any political subdivision
  491  thereof, including the authority, but are payable solely from
  492  the funds in the documents relating to the utility cost
  493  containment bonds. This provision does not preclude guarantees
  494  or credit enhancements in connection with utility cost
  495  containment bonds.
  496         (i) Except as otherwise provided in this section with
  497  respect to adjustments to a utility project charge, the recovery
  498  of the financing costs for the utility cost containment bonds
  499  from the utility project charge shall be irrevocable and the
  500  authority does not have the power, either by rescinding,
  501  altering, or amending the applicable financing resolution, to
  502  revalue or revise for ratemaking purposes the financing costs of
  503  utility cost containment bonds; to determine that the financing
  504  costs for the related utility cost containment bonds or the
  505  utility project charge is unjust or unreasonable; or to in any
  506  way reduce or impair the value of utility project property that
  507  includes the utility project charge, either directly or
  508  indirectly. The amount of revenues arising with respect to the
  509  financing costs for the related utility cost containment bonds
  510  or the utility project charge are not subject to reduction,
  511  impairment, postponement, or termination for any reason until
  512  all financing costs to be paid from the utility project charge
  513  are fully met and discharged.
  514         (j) Except as provided in subsection (5) with respect to
  515  adjustments to a utility project charge, the state does hereby
  516  pledge and agree with the owners of utility cost containment
  517  bonds that the state shall neither limit nor alter the financing
  518  costs or the utility project property, including the utility
  519  project charge, relating to the utility cost containment bonds,
  520  or any rights in, to, or under the utility project property
  521  until all financing costs with respect to the utility cost
  522  containment bonds are fully met and discharged. This paragraph
  523  does not preclude limitation or alteration if adequate provision
  524  is made by law for the protection of the owners. The authority
  525  may include this pledge by the state in the governing documents
  526  for utility cost containment bonds.
  527         (8) LIMITATION ON DEBT RELIEF.—Notwithstanding any other
  528  law, an authority that issued utility cost containment bonds may
  529  not, and no governmental officer or organization shall so
  530  authorize the authority to, become a debtor under the United
  531  States Bankruptcy Code or become the subject of any similar case
  532  or proceeding under any other state or federal law if any
  533  payment obligation from utility project property remains with
  534  respect to the utility cost containment bonds.
  535         (9) CONSTRUCTION.—This section and all grants of power and
  536  authority in this section shall be liberally construed to
  537  effectuate their purposes. All incidental powers necessary to
  538  carry into effect the provisions of this section are expressly
  539  granted to, and conferred upon, public entities.
  540         Section 2. This act shall take effect July 1, 2014.