| TO: | Honorable Tryon D. Lewis, Chair, House Committee on Judiciary & Civil Jurisprudence |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB2748 by Lewis (Relating to judicial proceedings and Railroad Commission of Texas hearings to determine whether a person who owns, operates, or manages a pipeline is a common carrier; authorizing a fee.), Committee Report 1st House, Substituted |
The bill would add Natural Resources Code, Subchapter B-1 (Chapter 111), Common Carrier Determination, to provide that a person is a common carrier only if the Railroad Commission makes such a determination in a judicial proceeding. The bill would provide that a person who seeks common carrier status must apply for such designation with the Railroad Commission and pay a fee set by Commission rule, not to exceed $2,500. The bill would provide notice requirements and would allows for individuals to file protests of applications for common carrier status. The bill would require the Railroad Commission to designate a hearings examiner to review applications and conduct hearings on applications. The bill also would provide criteria for situations in which the Commission could conduct an administrative review of an application for common carrier status without a hearing, as well as other requirements relating to hearings, and authority to the Railroad to extend deadlines.
The bill would amend Civil Practice and Remedies Code, Chapter 135, to provide that a permit granted by the Railroad Commission under Natural Resources Code, Subchapter B-1, Chapter 111, which would be added by the bill, is a conclusive determination for common carrier status.
The bill would have an effective date of September 1, 2013 and only apply to permit applications filed after the effective date.
It is estimated that the fiscal impact to the Railroad Commission to implement the bill's provisions would not be significant, as only about 30 contested common carrier permit applications are expected to be received annually. However, an appropriation of revenues from the $2,500 fee authorized by the bill would need to be made to the Railroad Commission for the agency to recieve the funds, totaling an estimated $75,000 per fiscal year.
| Source Agencies: | 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 455 Railroad Commission
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| LBB Staff: | UP, CL, TL
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