SRC-PNG S.B. 1403 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1403
76R6739 SMJ-FBy: Fraser
Natural Resources
4/7/1999
As Filed


DIGEST 

Currently, the Railroad Commission of Texas is not required to deposit
certain fees and penalties collected to the credit of the oil-field cleanup
fund.  The recent downturn in oil and gas industry production has caused
the collection of fees for the oil-field cleanup fund to decline, resulting
in a reduction of the fund.  Concurrently, there has also been an increase
in fund expenditures due to increases in the number of well-pluggings and
the number and complexity of site remediation activities at abandoned oil
field sites.  This bill would require the deposit of certain fees and
penalties collected by the Railroad Commission to be applied to the credit
of the oil-field cleanup fund.   

PURPOSE

As proposed, S.B. 1403 requires the deposit of certain fees and penalties
collected by the Railroad Commission to the credit of the oil-field cleanup
fund.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 81.0531, Natural Resources Code, by adding
Subsection (d), to require a penalty collected under this section to be
deposited to the credit of the oil-field cleanup fund. 

SECTION 2. Amends Section 85.2021(d), Natural Resources Code, to delete
text which provided an exception to the requirement that all fees collected
under this section to be deposited in the state oil-field cleanup fund. 

SECTION 3. Amends Section 91.1013(c), Natural Resources Code, to require
all fees collected under this section to be deposited in the state
oil-field cleanup fund. 

SECTION 4. Amends Section 91.111(c), Natural Resources Code, to provide
that the oil-field cleanup fund consists of penalties collected under
Section 81.0531.  Makes conforming and nonsubstantive changes. 

SECTION 5. Repealer: Section 34, Chapter 603, Acts of the 72nd Legislature,
Regular Session, 1991 (repealing fees imposed under Sections 85.2021,
81.116, and 81.117, Natural Resources Code). 

SECTION 6. Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 7. Emergency clause.