LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 8, 2009 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2572 by Gonzalez Toureilles (relating to the authority of a gas corporation to use a public right - of - way.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would permit a gas corporation to lay and maintain lines under a municipal street or alley with the consent of the governing body of a municipality for a compensation payment. Passage of the bill is not expected to result in fiscal implications to state agencies. Local Government Impact The bill would permit a gas corporation to lay and maintain lines under a municipal street or alley with the consent of the governing body of a municipality for a compensation payment as defined by Section 121.2025, Utilities Code, or Section 182.025, Tax Code. Travis County reported that under a license agreement, a gas corporation must post a bond or provide a line of credit to Travis County in order for them to obtain a public right-of-way of a county road. Travis County also requires the corporation to indemnify the county from any future liability that might be caused by the corporations gas line. Tarrant County reported that a gas corporation can only access a public right-of-way in Tarrant County by laying its pipe lines underneath a county road, and any expenses incurred are paid by the gas corporation. The fiscal impact to a municipality to implement the provisions of the bill would vary depending on the amount of compensation payments received that would offset costs for the use of a municipal street or alley; however, those costs are not anticipated to be significant. Source Agencies: LBB Staff: JOB, SZ, TL, TP LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 8, 2009 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2572 by Gonzalez Toureilles (relating to the authority of a gas corporation to use a public right - of - way.), Committee Report 1st House, Substituted TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB2572 by Gonzalez Toureilles (relating to the authority of a gas corporation to use a public right - of - way.), Committee Report 1st House, Substituted Honorable Jim Keffer, Chair, House Committee on Energy Resources Honorable Jim Keffer, Chair, House Committee on Energy Resources John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB2572 by Gonzalez Toureilles (relating to the authority of a gas corporation to use a public right - of - way.), Committee Report 1st House, Substituted HB2572 by Gonzalez Toureilles (relating to the authority of a gas corporation to use a public right - of - way.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would permit a gas corporation to lay and maintain lines under a municipal street or alley with the consent of the governing body of a municipality for a compensation payment. Passage of the bill is not expected to result in fiscal implications to state agencies. Local Government Impact The bill would permit a gas corporation to lay and maintain lines under a municipal street or alley with the consent of the governing body of a municipality for a compensation payment as defined by Section 121.2025, Utilities Code, or Section 182.025, Tax Code. Travis County reported that under a license agreement, a gas corporation must post a bond or provide a line of credit to Travis County in order for them to obtain a public right-of-way of a county road. Travis County also requires the corporation to indemnify the county from any future liability that might be caused by the corporations gas line. Tarrant County reported that a gas corporation can only access a public right-of-way in Tarrant County by laying its pipe lines underneath a county road, and any expenses incurred are paid by the gas corporation. The fiscal impact to a municipality to implement the provisions of the bill would vary depending on the amount of compensation payments received that would offset costs for the use of a municipal street or alley; however, those costs are not anticipated to be significant. Source Agencies: LBB Staff: JOB, SZ, TL, TP JOB, SZ, TL, TP