SRC-SLL H.B. 1289 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1289
76R5363 JJT-FBy: Cook (Brown)
Natural Resources
3/30/1999
Engrossed


DIGEST 

The 72nd Legislature enacted the Texas Limited Liability Company Act (Act),
which provides for the formation of limited liability companies (LLC).  The
Act intended to give LLCs the same powers and duties of other forms of
corporations, but not all provisions of state law were changed to reflect
this.  The Gas Utility Regulatory Act contains definitions of "person" and
"corporation" which do not include LLCs.  As a result, some have questioned
whether pipelines organized as LLCs have the same powers and duties as
pipelines that are organized as corporations or partnerships.  H.B. 1289
redefines "person" and "corporation" to include LLCs. 

PURPOSE

As proposed, H.B. 1289 redefines "person" and "corporation" to include a
limited liability company. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends  Section 101.003(10), Utilities Code, to redefine
"person" to include a limited liability company. 

SECTION 2.  Amends Section 121.001(b), Utilities Code, to redefine "person"
to make a conforming change. 

SECTION 3.  Amends Section 181.001(1), Utilities Code, to redefine
"corporation" to make conforming and nonsubstantive changes. 

SECTION 4.  Provides that the legislature intends that each change in law
made by this Act shall be considered a clarification of existing law and
construed as consistent with the law as it existed immediately before the
effective date of this Act. 

SECTION 5.Emergency clause.
  Effective date: upon passage.