C.S.H.B. 1531 78(R)    BILL ANALYSIS


C.S.H.B. 1531
By: Cook, Robby
Regulated Industries
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Chapter 181 of the Utilities Code contains the general powers of
utilities, and refers to corporations engaged in the utility business.
However, in recent years, other forms of business organizations have been
created and used. Some local courts have questioned whether Master Limited
Partnerships and Limited Partnerships are included in the definition of
corporation under Section 181.001 of the Utilities Code.  This bill makes
it clear that a utility organized as a Master Limited Partnership or
Limited Partnership is considered a utility corporation and also includes
in the definition of corporation any entity that is an electric or gas
utility regardless of the form of business organization.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

This bill amends Section 181.001 of the Utilities Code. The definition of
corporation is amended. Section 1 (a) of the bill adds Limited
Partnerships and Master Limited Partnerships; (b) adds business entities;
(b) is renamed to (c); and subsection (d) is added to include a gas
utility or electric utility regardless of the form of business
organization, but not including a municipally owned utility. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

On lines 14 and 15 of CSHB 1531 after the word "organization" and before
the period, ", but not including a municipally owned utility" has been
inserted.