Amend Amendment No. 1 by King to CSSB 408 as follows:                        
	(1)  On page 9, strike lines 12 through 31.                                    
	(2)  Strike page 10.                                                           
	(3)  On page 11, strike lines 1 through 10.                                    
	(4)  Add the following new SECTIONS and renumber 
accordingly:Add the following new SECTIONS and renumber 
accordingly:
	SECTION _____.  Subchapter D, Chapter 39, Utilities Code, is 
amended by adding Section 39.1515 to read as follows:
	Sec. 39.1515.  WHOLESALE ELECTRIC MARKET MONITOR.  (a)  An 
independent organization certified under Section 39.151 shall 
contract with an entity selected by the commission to act as the 
commission's wholesale electric market monitor to detect and 
prevent market manipulation strategies and recommend measures to 
enhance the efficiency of the wholesale market.
	(b)  The independent organization shall provide to the 
personnel of the market monitor:
		(1)  full access to the organization's main operations 
center and the organization's records that concern operations, 
settlement, and reliability; and
		(2)  other support and cooperation the commission 
determines is necessary for the market monitor to perform the 
market monitor's functions.
	(c)  The independent organization shall use money from the 
rate authorized by Section 39.151(e) to pay for the market 
monitor's activities.
	(d)  The commission is responsible for ensuring that the 
market monitor has the resources, expertise, and authority 
necessary to monitor the wholesale electric market effectively and 
shall adopt rules and perform oversight of the market monitor as 
necessary.  The market monitor shall operate under the supervision 
and oversight of the commission.  The commission shall retain all 
enforcement authority conferred under this title, and this section 
may not be construed to confer enforcement authority on the market 
monitor or to authorize the commission to delegate the commission's 
enforcement authority to the market monitor.  The commission by 
rule shall define:
		(1)  the market monitor's monitoring responsibilities, 
including reporting obligations and limitations;
		(2)  the standards for funding the market monitor, 
including staffing requirements;
		(3)  qualifications for personnel of the market 
monitor; and         
		(4)  ethical standards for the market monitor and the 
personnel of the market monitor.
	(e)  In adopting rules governing the standards for funding 
the market monitor, the commission shall consult with a 
subcommittee of the independent organization's governing body to 
receive information on how money is or should be spent for 
monitoring functions.  Rules governing ethical standards must 
include provisions designed to ensure that the personnel of the 
market monitor are professionally and financially independent from 
market participants.  The commission shall develop and implement 
policies that clearly separate the policymaking responsibilities 
of the commission and the monitoring, analysis, and reporting 
responsibilities of the market monitor.
	(f)  The market monitor immediately shall report directly to 
the commission any potential market manipulations and any 
discovered or potential violations of commission rules or rules of 
the independent organization.
	(g)  The personnel of the market monitor may communicate with 
commission staff on any matter without restriction.
	(h)  The market monitor annually shall submit to the 
commission and the independent organization a report that 
identifies market design flaws and recommends methods to correct 
the flaws.  The commission and the independent organization shall 
review the report and evaluate whether changes to rules of the 
commission or the independent organization should be made.