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.