HBA-SEB H.B. 2465 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2465 By: Cook Energy Resources 3/19/1999 Introduced BACKGROUND AND PURPOSE A limited liability company (LLC) is a relatively new business structure that was authorized by the Texas Legislature in 1991. An LLC is a combination of a partnership and a corporation that maintains the limited liability of a corporation while receiving federal tax treatment as a partnership. Some common carrier pipelines in Texas have reorganized as LLCs. Since the law that created LLCs did not amend other laws that regulate business entities, the issue of whether the LLCs have the rights afforded to other business entities remains unclear. H.B. 2465 provides that an LLC that is a common carrier in the pipeline business has the same right of eminent domain and other rights that the LLC previously had as a corporation or partnership. 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 Article 2.02, Article 1528n, V.T.C.S. (Texas Limited Liability Company Act), by adding Section D, as follows: D. Provides that a limited liability company engaged as a common carrier in the pipeline business for transporting oil, oil products, gas, carbon dioxide, salt brine, fuller's earth, sand, clay, liquefied minerals, or other mineral solutions has all of the rights and powers conferred by Sections 111.019 (Right of Eminent Domain), 111.020 (Pipeline on Public Stream or Highway), 111.021 (Pipeline Under Railroad, Street Railroad, or Canal), 111.022 (Right to Use Street or Alley in City or Town), Natural Resources Code. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.