The bill, H.B. No. 206, seeks to limit a county's authority to require cash bonds for the construction of pipelines within its boundaries. It introduces a new section, 240.911, to the Local Government Code, which stipulates that a county cannot mandate a cash bond as a condition for pipeline construction approval unless the applicant is granted the right to approve or deny the use of the bond proceeds. Additionally, if the applicant denies the use of the bond proceeds, they are entitled to a full refund of the cash bond.

This legislation applies specifically to applications for pipeline construction submitted to a county on or after the effective date of the Act, which is set for September 1, 2025. The intent of the bill is to provide clarity and fairness in the process of pipeline construction approvals, ensuring that applicants have control over the bond proceeds while also protecting their financial interests.

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