BILL ANALYSIS

S.B. 1589

By: Zaffirini

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that the Unclaimed Mineral Proceeds Commission was recently created to study and provide recommendations to the legislature regarding the distribution of certain unclaimed mineral proceeds derived from an original land grant. The commission has issued a report with its findings and submitted a number of recommendations to the legislature. One recommendation is that a holder of unclaimed property include the source of the property when reporting the property to the state. For example, when an oil or gas producer reports unclaimed royalties to the state, no information about the producing well's location is required to be included. The parties contend that this additional information reported with the unclaimed property will help facilitate increased claims by rightful owners. S.B. 1589 seeks to address this issue and improve the unclaimed property claims process.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1589 amends the Property Code to require a holder of unclaimed mineral proceeds that is regulated by the Railroad Commission of Texas under Natural Resources Code provisions generally applicable to the conservation and regulation of oil and gas to include in the property report for the proceeds, in addition to information prescribed by law and with respect to each well the production from which resulted in the proceeds, the lease, property, or well name; any lease, property, or well identification number used to identify the lease, property, or well; and the county in which the lease, property, or well is located. The bill makes this reported well information confidential and not subject to disclosure under state public information law but authorizes the comptroller of public accounts to release reported information about a well to a claimant of mineral proceeds from the well if the claim is approved by the comptroller. The bill requires the comptroller to compile and revise each year an alphabetical list by county of the number of filed property reports for mineral proceeds attributable to all wells located in each respective county and the aggregate amount of reported mineral proceeds attributable to all wells, if any, located in each respective county and requires the comptroller to make the list available for public inspection during all reasonable business hours. The bill subjects the information compiled in the list to disclosure under state public information law. 

EFFECTIVE DATE

January 1, 2016.