Florida Governor Signs Utility Securitization Bill

scott-rick-flagov.jpg

BRADENTON, Fla. – Florida's first municipal bond securitization program is now officially state law.

Gov. Rick Scott signed House Bill 347, the Utility Cost Containment Bond Act, along with dozens of other bills on Friday.

Scott, who is normally debt averse, did not explain in a separate letter as he does sometimes why the bond program was approved.

A press release announcing the governor's approval of 68 bills identifies HB347 as providing "an additional financing option for local government utility infrastructure projects."

The act takes effect July 1, and authorizes certain issuers to securitize bonds with irrevocable charges on customer's water and sewer bills.

The bankruptcy-remote structure of the financing program typically results in triple-A bond ratings in other states where municipal securitization has been used.

For reprint and licensing requests for this article, click here.
Florida
MORE FROM BOND BUYER