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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: DP NREW 7-2-1-0 |
HB 2679: power; public utilities; UCC; securities
Sponsor: Representative Griffin, LD 19
Caucus & COW
Overview
Permits public power entities, public service corporations and member owned cooperative corporations to initiate in securitization transactions.
History
A public power entity means any municipal corporation, city, town or other political subdivision that is organized under state law, that generates, transmits, distributes or otherwise provides electricity and that is not a public service corporation (A.R.S. § 30-801). The Corporation Commission (Commission) is permitted to supervise and regulate every public service corporation in the state and do all things necessary and convenient in the exercise of that power and jurisdiction (A.R.S. § 40-202).
Provisions
Public Power Entities
1. Permits a public power entity to initiate a securitization transaction and outlines required actions when initiating the adoption of a financing resolution. (Sec. 1)
2. Outlines the requirements of the securitization proposal. (Sec. 1)
3. Lists required actions to be taken by a public power entity during a public comment period and meeting. (Sec. 1)
4. Permits the adoption of a financing resolution that approves initiation of the transaction under the requirement that the governing board finds that certain conditions are met. (Sec. 1)
5. Outlines requirements for a rehearing and lists actions to obtain a rehearing with the public power utility's governing board. (Sec. 1)
Public Service Corporations
6. Permits a public service corporation, member-owned cooperative corporation and two or more member owned cooperatives corporations to request from the Commission the permission to initiate a securitization transaction. (Sec. 2)
7. Outlines the requirements for the application. (Sec. 2)
8. Requires the Commission to approve the financing order if certain conditions are met. (Sec. 2)
9. Prescribes the authority and jurisdiction with the Commission for the actions related to securitization transactions. (Sec. 2)
10. Outlines requirements for and actions relating to obtaining a rehearing with the Commission. (Sec. 2)
Language that Applies to Both
Public Service Corporations and Public Power Entities
11. Defines pertinent terms. (Sec. 1 and 2)
12. Contains a statement of public policy. (Sec. 1 and 2)
13. Designates the governing mechanisms for security interests in transition property. (Sec. 1 and 2)
14. Provides authority of a qualified special purpose entity to issue transition bonds and differentiates what are obligated and nonobligated actions. (Sec. 1 and 2)
15. Outlines transition property characteristics and operations. (Sec. 1 and 2)
16. Designates true-up mechanism actions and civil actions regarding financing payments. (Sec. 1 and 2)
17. Permits public power entities and public service corporations to utilize their resources and duties to perform the duties of a servicer under a transition billing services tariff and outlines payment collecting actions. (Sec. 1 and 2)
18. Prohibits the transition property, the true-up mechanism and the financing charges from being subject to reduction, impairment, rescission, irrevocability and other actions or designations. (Sec. 1 and 2)
19. Prohibits financial charges from being subject to:
a) a franchise fee that is imposed by a municipality, county or other local government unit as a result of a franchise agreement of lawful ordinance; or
b) taxes that are applicable to services provided by or rates of a public power entity. (Sec. 1 and 2)
20. Prohibits transition bonds from being deemed public debt and details related prohibitions and actions. (Sec. 1 and 2)
21. Directs that transition bonds are legal investments for:
b) permanent funds of this state;
c) finance authorities;
d) financial institutions;
e) insurance companies;
f) fiduciaries; and
g) other persons requiring statutory authority regarding legal investments. (Sec. 1 and 2)
23. Outlines procedures in the case of conflict between other law regarding security interest in transition property, invalidation, replacement or repeal of the chapter. (Sec. 1 and 2)
24. Makes technical changes. (Sec 1, 2 and 3)
Uniform Commercial Code (UCC)
25. Exempts a security interest from a public power entity, public service corporation, member-owned cooperative corporation or two or more member owned cooperatives corporations from the scope of the UCC. (Sec. 3)
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29. HB 2679
30. Initials CW Page 0 Caucus & COW
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