SRC-PNG S.B. 453 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 453
76R5363 JJT-FBy: Brown
Natural Resources
3/29/1999
As Filed


DIGEST 

The 72nd Texas Legislature enacted the Texas Limited Liability Company Act,
which provides for the formation of legal entities known as limited
liability companies (LLCs).  While the Limited Liability Company Act may
have been intended to give LLCs the same powers and duties of other forms
of corporate organization, it did not change all of the other state laws
that provide for the regulation and taxation of various businesses around
the state.  For example, the Gas Utility Regulatory Act, now part of the
Utility Code, 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.  This bill would amend the
Utility Code to include "a limited liability company" in the definitions of
"person" and "corporation." 

PURPOSE

As proposed, S.B. 453 amends the Utility Code to include "a limited
liability company" in the definitions of "person" and "corporation." 

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 limited liability companies. 

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

SECTION 3.  Amends Section 181.001(1), Utilities Code, to redefine
"corporation" to include a limited liability company.  Makes a
nonsubstantive change. 

SECTION 4.  Sets forth the intention of the legislature regarding this Act
shall be to clarify  existing law and to be construed as consistent with
existing law. 

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