By Kitchen                                            H.B. No. 1858
         77R6150 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a limitation on the authority of certain limited
 1-3     partnerships to engage as common carriers in the pipeline business.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 1.09, Texas Revised Limited Partnership
 1-6     Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended by
 1-7     adding Subsection (d) to read as follows:
 1-8           (d)  Notwithstanding Subsection (c) of this section, a
 1-9     limited partnership may not engage as a common carrier in the
1-10     pipeline business for transporting oil products under Chapter 111,
1-11     Natural Resources Code, with respect to an oil products pipeline
1-12     owned, operated, or managed by the limited partnership unless the
1-13     limited partnership obtains liability insurance coverage of at
1-14     least $2 billion.  This subsection applies only to an oil products
1-15     pipeline:
1-16                 (1)  any segment of which was constructed before
1-17     January 1, 1960;
1-18                 (2)  that was originally used for transporting oil; and
1-19                 (3)  that was not used for transporting oil products
1-20     before January 1, 2001.
1-21           SECTION 2.  This Act takes effect immediately if it receives
1-22     a vote of two-thirds of all the members elected to each house, as
1-23     provided by Section 39, Article III, Texas Constitution.  If this
1-24     Act does not receive the vote necessary for immediate effect, this
 2-1     Act takes effect September 1, 2001.