| TO: | Honorable David Dewhurst, Lieutenant Governor, Senate |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas. ), As Passed 2nd House |
The bill would increase maximum penalty amounts for violation of certain statutes administered by the Railroad Commission. It would specify that the bill's provisions would not create an exception to the applicability of a pipeline safety requirement provided under Utilities Code, Chapter 122, or a penalty for a violation of such a requirement.
The Railroad Commission reports that its pipeline safety programs reimbursements from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) are based on a point system, and that the program currently is being penalized because statutory penalty amounts in Texas law do not match the amounts in federal law. Passage of the bill would align the penalty amounts with the federal amounts, which could result in the restoration of points for the pipeline safety program. This could result in the receipt of additional Federal Funds by the Railroad Commission. However, any additional Federal Funds received are not expected to be significant. In addition, revenue associated with increased penalty is not expected to result in significant increased revenues to the state.
| Source Agencies: | 455 Railroad Commission, 304 Comptroller of Public Accounts, 696 Department of Criminal Justice
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| LBB Staff: | UP, SZ, TL, LM
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