SRC-JBJ H.B. 2465 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2465
76R7260 DWS-FBy: Cook (Armbrister)
Natural Resources
4/281999
Engrossed


DIGEST 

Currently, a limited liability company (LLC) is a relatively new business
structure authorized in 1991 by the Texas Legislature.  An LLC is a
combination of a partnership and a corporation that maintains the limited
liability of a corporation while receiving federal tax treatment as a
partnership.  Some common carrier pipelines in Texas have reorganized as
LLCs.  However, the 1991 law did not amend other laws that regulate
business entities allowing some ambiguity to whether the LLCs have the
rights afforded to other business entities.  H.B. 2465 would provide that
an LLC that is a common carrier in the pipeline business has the same right
of eminent domain and other rights that the LLC previously had as a
corporation or partnership. 

PURPOSE

As proposed, H.B. 2465 provides that a limited liability company has
certain rights including the right of eminent domain. 

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 Article 1528n, V.T.C.S. (Texas Limited Liability Company
Act), by adding Section D, to provide that a limited liability company
engaged as a common carrier in the pipeline business for transporting oil,
oil products, gas, carbon dioxide, salt brine, fuller's earth, sand, clay,
liquefied minerals, or other mineral solutions has all the rights and
powers conferred by Sections 111.019-111.022, Natural Resources Code. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.