HBA-NMO H.B. 1289 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1289
By: Cook
Energy Resources
7/7/99
Enrolled



BACKGROUND AND PURPOSE 

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, prior to the 76th Legislature, the Gas Utility
Regulatory Act, now part of the Utility Code, contained definitions of
"person" and "corporation" which did not include LLCs.  As a result, some
questioned whether pipelines organized as LLCs had the same powers and
duties as pipelines organized as corporations or partnerships.  H.B. 1289
includes "a limited liability company" in the Utilities Code definitions of
"person" and "corporation." 
  
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 101.003(10), Utilities Code, to include "a
limited liability company" in the definition of "person." 

SECTION 2.  Amends Section 121.001(b), Utilities Code, to make conforming
changes. 

SECTION 3.  Amends Section 181.001(1), Utilities Code, to include "a
limited liability company" in the definition of "corporation."  Makes
conforming and nonsubstantive changes. 

SECTION 4.  Provides that the legislature intends that each change in law
is required to be considered as a clarification of existing law, and
construed as consistent with the law as it existed immediately before the
effective date of this Act. 

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