Amend CSSB 7 in Section 40.003, Utilities Code, in SECTION 33
of the bill (Committee Printing pages 42-43, lines 37-69 and lines
1-14 respectively) by striking Section 40.003 and substituting the
following:
      Sec. 40.003.  SECURITIZATION.  (a)  Municipally owned
utilities and river authorities may adopt and use securitization
provisions having the effect of the provisions set out in
Subchapter G, Chapter 39, to recover through appropriate charges
their stranded costs, at a recovery level deemed appropriate by the
municipally owned utility or river authority up to 100 percent,
under rules and procedures that shall be established:
            (1)  in the case of a municipally owned utility, by the
municipal governing body or a body vested with the power to manage
and operate the municipally owned utility, including procedures
providing for rate orders of such governing body having the effect
of financing orders, providing for a separate nonbypassable charge
approved by such governing body, in the nature of a transition
charge, to be collected from all retail electric customers of the
municipally owned utility, identified as of a date determined by
such governing body, to fund the recovery of the stranded costs of
the municipally owned utility and of all reasonable related
expenses, as determined by such governing body, and providing for
the issuance of bonds, having a term and other characteristics as
determined by such governing body, as necessary to recover the
amount deemed appropriate by such governing body through
securitization financing; and
            (2)  in the case of a river authority, by the
commission.
      (b)  In order to implement securitization financing pursuant
to the rules and procedures established by and for a municipally
owned utility under Subsection (a)(1), municipalities are hereby
expressly authorized and empowered to issue bonds, notes or other
obligations, including refunding bonds, payable from and secured by
a lien on and pledge of the revenues collected under an order of
the governing body of such municipality, and such bonds shall be
issued, without an election or any requirement of giving notice of
intent to issue the same, by ordinance adopted by the governing
body of the municipality in such form and manner and sold on a
negotiated basis or upon receipt of bids and on such terms and
conditions as shall be determined by the governing body of such
municipality.
      (c)  Bonds issued pursuant to authority conferred under
Subsection (a)(1) and (2) and Subsection (b) may be issued in such
form and manner, with or without credit enhancement or liquidity
enhancement and using such procedures as provided in Article
717k-6, Vernon's Ann. Civ. St., as amended, or other laws
applicable to the issuance of bonds, including Article 717q,
Vernon's Ann. Civ. St., Article 717k, Vernon's Ann. Civ. St., and
Article 1118n-12, Vernon's Ann. Civ. St., as if such laws were
fully restated herein and made a part hereof for all purposes, and
a municipality or river authority shall have the right and
authority to use such other laws, notwithstanding any applicable
restrictions contained therein, to the extent convenient or
necessary to carry out any power or authority, express or implied,
granted under this Section 40.003, in the issuance of bonds by a
municipality or river authority in connection with securitization
financing; but the provisions herein contained shall be wholly
sufficient authority for the issuance of bonds, notes or other
obligations, including refunding bonds, and the performance of the
other acts and procedures authorized hereby, without reference to
any other laws or any restrictions or limitations contained
therein; and to the extent of any conflict or inconsistency between
the provisions of this authorization and any provisions of any
other law or home rule charter, the authorization and power to
issue bonds conferred on municipalities or river authorities under
this Section 40.003 shall prevail and control.
      (d)  The rules and procedures for securitization established
by the commission under Subsection (a)(2) shall include procedures
for the recovery of qualified costs pursuant to the terms of a
financing order adopted by the governing body of the river
authority.
      (e)  The rules and procedures for securitization established
by the commission under Subsection (a)(2) shall include rules and
procedures for the issuance of transition bonds.  Findings made by
the governing body of a river authority in a financing order issued
pursuant to the rules and procedures described in this subsection
shall be conclusive, and any nonbypassable transition charge
incorporated in such rate-order to recover the principal, interest,
and all reasonable expenses associated with any transition bonds
shall constitute property rights, as described in Subchapter G,
Chapter 39, and otherwise conform in all material respects to the
nonbypassable transition charges set forth in Subchapter G, Chapter
39.
      (f)  The rules and procedures established under this section
shall be consistent with other law applicable to municipally owned
utilities and river authorities and with the terms of any
resolutions, orders, charter provisions or ordinances authorizing
outstanding bonds or other indebtedness of the municipalities or
river authorities.