HBA-SEB H.B. 3444 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3444 By: Lewis, Ron Energy Resources 4/5/1999 Introduced BACKGROUND AND PURPOSE The recent downturn in the oil and gas industry has caused a decline in the fees collected for the state's oil-field cleanup fund. Additionally, fund expenditures have increased due to remediation activities at abandoned oil-field sites. In order to increase the amount of money being deposited into the oil-field cleanup fund, H.B. 3444 requires certain penalties and fees that are currently being deposited into the general revenue fund to be deposited instead into the oil-field cleanup fund. That money includes receipts from administrative penalties, fees collected for the expedited processing of drilling permit applications, and application fees for fluid injection well permits. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. 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 (Administrative Penalty) to be deposited to the credit of the oil-field cleanup fund. SECTION 2. Amends Section 85.2021(d), Natural Resources Code, to delete a requirement that fees collected under this section (Drilling Permit Fee) for expediting a drilling permit application be deposited in the general revenue fund. SECTION 3. Amends Section 91.1013(c), Natural Resources Code, to require fees collected under this section (Application Fees), rather than under only Subsection (b) (regarding a permit to discharge to surface water), to be deposited in the state oil-field cleanup fund. SECTION 4. Amends Section 91.111(c), Natural Resources Code, to include penalties collected under Section 81.0531 in the composition of the oil-field cleanup fund. Makes conforming and nonsubstantive changes. SECTION 5. Repealer: Section 34, Chapter 603, Acts of the 72nd Legislature, Regular Session, 1991, which currently repeals fees imposed under Sections 85.2021, 81.116 (Oil-Field Cleanup Regulatory Fee on Oil), and 81.117 (Oil-Field Cleanup Regulatory Fee on Gas), Natural Resources Code. SECTION 6. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 7. Emergency clause.