Oklahoma 2025 Regular Session

Oklahoma House Bill HB1370 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB1370 SFLR Page 1
4		-	(Bold face denotes Committee Amendments) 1
	3	+	ENGR. H. B. NO. 1370 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 16, 2025
31		-	AS AMENDED
32		-
33	28		ENGROSSED HOUSE
34		-	BILL NO. 1370 By: Boles and Waldron of the
35		-	House
	29	+	BILL NO. 1370 By: Boles of the House
36	30
37	31		and
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39	33		Green of the Senate
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	38	+	[ Corporation Commission Plugging Fund – sunset –
	39	+	excise tax on oil and gas – taxes – sales tax
	40	+	amount – Interstate Oil Compact Fund of Oklahoma –
	41	+	cap - effective date -
	42	+	emergency ]
44	43
45		-	[ Corporation Commission Plugging Fund – sunset –
46		-	excise tax on oil and gas – taxes – sales tax amount
47		-	– Interstate Oil Compact Fund of Oklahoma – cap -
48		-	effective date -
49		-	emergency ]
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53	47		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54	48		SECTION 1. AMENDATORY 17 O.S. 2021, Section 180.10, is
55	49		amended to read as follows:
56	50		Section 180.10. A. There is hereby created in the State
57	51		Treasury a fund for the Corporation Commission to be designated the
58	52		"Corporation Commission Plugging Fund". The plugging fund shall
59	53		consist of monies received by the Corporation Commission as required
60	54		by law to be deposited to the credit of said fund. The fund shall
61	55		be a continuing fund not subject to fiscal year limitations and
62	56		shall not be subject to legislative appropriations. Expenditures
63	57		from the plugging fund shall be made pursuant to the laws of this
64	58		state and the statutes relating to the Corporation Commission . For
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66		-	SENATE FLOOR VERSION - HB1370 SFLR Page 2
67		-	(Bold face denotes Committee Amendments) 1
	60	+	ENGR. H. B. NO. 1370 Page 2 1
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92	85		each fiscal year, the Commission may expend not more than eight
93	86		percent (8%) of the total amount deposited to the credit of the
94	87		plugging fund during the previous fiscal year for the purpose of
95	88		responding to occurrences of seeping natural gas as prov ided for in
96	89		Section 317.1 of Title 52 of the Oklahoma Statutes. In addition,
97	90		expenditures from the plugging fund may be made pursuant to the
98	91		Oklahoma Central Purchasing Act, Section 85.1 et seq. of Title 74 of
99	92		the Oklahoma Statutes, for purposes of immedi ately responding to
100	93		emergency situations, within the Commission's jurisdiction, having
101	94		potentially critical environmental or public safety impact.
102	95		Warrants for expenditures from the fund shall be drawn by the State
103	96		Treasurer, based on claims signed by an authorized employee of the
104	97		Corporation Commission and approved for payment by the Director of
105	98		the Office of Management and Enterprise Services. The provisions of
106	99		this act or rules promulgated pursuant thereto, shall not be
107	100		construed to relieve or in any w ay diminish the surety bonding
108	101		requirements required by Section 318.1 of Title 52 of the Oklahoma
109	102		Statutes.
110	103		B. Prior to July 1, 2026 2031, the plugging fund shall be
111	104		maintained at Five Million Dollars ($5,000,000.00). If the plugging
112	105		fund falls below the five-million-dollar maintenance level, the
113	106		Corporation Commission shall notify the Tax Commission that the
114	107		plugging fund has fallen below the required maintenance level and
115	108		that the excise tax which has been levied by subsection A of Section
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117		-	SENATE FLOOR VERSION - HB1370 SFLR Page 3
118		-	(Bold face denotes Committee Amendments) 1
	110	+	ENGR. H. B. NO. 1370 Page 3 1
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143	135		1101 of Title 68 of the Oklahoma Statutes and subsection A of
144	136		Section 1102 of Title 68 of the Oklahoma Statutes which is credited
145	137		and apportioned to the Corporation Commission Plugging Fund pursuant
146	138		to Section 1103 of Title 68 of the Oklahoma Statutes is to be
147	139		imposed. Such additional excise tax shall be imposed and collected
148	140		until such time as is necessary to meet the additional five -million-
149	141		dollar maintenance level. The Tax Commission shall notify the
150	142		persons responsible for payment of the excise tax on oil and gas of
151	143		the imposition of such tax. The provisions of this subsection shall
152	144		terminate on July 1, 2026 2031.
153	145		SECTION 2. AMENDATORY 68 O.S. 2021, Section 1103, is
154	146		amended to read as follows:
155	147		Section 1103. A. 1. Prior to July 1, 2026 2025, and as
156	148		provided in Section 1103.1 of this title, all monies derived from
157	149		the levy of the excise tax on petroleum oil provided for by Section
158	150		1101 of this title shall be deposited with the State Treasurer, who
159	151		shall credit and apportion the same as fo llows:
160	152		a. eighty-two and six hundred thirty -four thousandths
161	153		percent (82.634%) of said excise tax shall be credited
162	154		to the General Revenue Fund of the State Treasury;
163	155		provided, in each fiscal year beginning on or after
164	156		July 1, 2013, the first One Million T hree Hundred
165	157		Fifty Thousand Dollars ($1,350,000.00) which would
166	158		otherwise have been apportioned to the General Revenue
167	159
168		-	SENATE FLOOR VERSION - HB1370 SFLR Page 4
169		-	(Bold face denotes Committee Amendments) 1
	160	+	ENGR. H. B. NO. 1370 Page 4 1
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194	185		Fund pursuant to this subparagraph shall be
195	186		transferred to the Oil and Gas Division Revolving Fund
196	187		of the Oklahoma Corporation Commission ,
197	188		b. ten and five hundred twenty -six thousandths percent
198	189		(10.526%) shall be credited and apportioned to a
199	190		separate and distinct fund to be known as the
200	191		"Corporation Commission Plugging Fund", and
201	192		c. the remaining six and eighty -four hundredths percent
202	193		(6.84%) of said excise tax shall be credited and
203	194		apportioned to a separate and distinct fund to be
204	195		known as "The Interstate Oil Compact Fund of
205	196		Oklahoma", which fund is hereby created.
206	197		2. Prior to July 1, 2026 2025, and as provided in Section
207	198		1103.1 of this title, all monies derived from the levy of the excise
208	199		tax on natural gas and/or casinghead gas provided for by Section
209	200		1102 of this title shall be deposited with the State Treasurer, who
210	201		shall credit and apportion the same as follows:
211	202		a. eighty-two and six thousand forty-five ten thousandths
212	203		percent (82.6045%) of said excise tax shall be
213	204		credited to the General Revenue Fund of the State
214	205		Treasury; provided, in each fiscal year beginning on
215	206		or after July 1, 2013, the first One Million Three
216	207		Hundred Fifty Thousand Dollars ($1,350,000.00) which
217	208		would otherwise have been apportioned to the General
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219		-	SENATE FLOOR VERSION - HB1370 SFLR Page 5
220		-	(Bold face denotes Committee Amendments) 1
	210	+	ENGR. H. B. NO. 1370 Page 5 1
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245	235		Revenue Fund pursuant to this subparagraph shall be
246	236		transferred to the Oil and Gas Division Revolving Fund
247	237		of the Oklahoma Corporation Commission,
248	238		b. ten and five thousand five hundred fifty -five ten
249	239		thousandths percent (10.5555%) shall be credited and
250	240		apportioned to the Corporation Commission Plugging
251	241		Fund, and
252	242		c. six and eighty-four hundredths percent (6.84%) of said
253	243		excise tax shall be credited and apportioned to The
254	244		Interstate Oil Compact Fund of Oklahoma.
255	245		3. Prior to July 1, 2026 2025, and as provided in Section
256	246		1103.1 of this title, all monies to accrue to The Interstate Oil
257	247		Compact Fund of Oklahoma under the provisions of this article,
258	248		together with all monies rema ining unexpended in The Interstate Oil
259	249		Compact Fund of Oklahoma created under this subsection are hereby
260	250		appropriated and shall be used for the payment of the compensation
261	251		of the assistant representative of the State of Oklahoma on The
262	252		Interstate Oil Compa ct Commission, the compensation of such
263	253		clerical, technical and legal assistants as he or she may with the
264	254		consent of the Governor employ; the actual and necessary traveling
265	255		expenses of the assistant representative and employees, and of the
266	256		Governor when traveling in the Governor's capacity as official
267	257		representative of the State of Oklahoma on The Interstate Oil
268	258		Compact Commission; all items of office expense including the cost
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270		-	SENATE FLOOR VERSION - HB1370 SFLR Page 6
271		-	(Bold face denotes Committee Amendments) 1
	260	+	ENGR. H. B. NO. 1370 Page 6 1
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296	285		of office supplies and equipment; such contributions as the Governor
297	286		shall deem necessary and proper to pay to The Interstate Oil Compact
298	287		Commission to defray its expenses; and such other necessary expenses
299	288		as may be incurred in enabling the State of Oklahoma to fully
300	289		cooperate in accomplishing the objects of the Interstate Compact t o
301	290		conserve oil and gas. The fund shall be disbursed by the State
302	291		Treasurer upon sworn, itemized claims approved by the assistant
303	292		representative and the Governor; provided, that if at the end of any
304	293		fiscal year any part of the special fund shall remain une xpended,
305	294		such balance shall be transferred by the State Treasurer to, and
306	295		become a part of, the General Revenue Fund of the state for the
307	296		ensuing fiscal year. Provided, further, that if the State of
308	297		Oklahoma withdraws from the Interstate Compact to conser ve oil and
309	298		gas, any unencumbered monies in The Interstate Oil Compact Fund of
310	299		Oklahoma shall be transferred to and become a part of the General
311	300		Revenue Fund of the State Treasury and thereafter the excise tax on
312	301		petroleum oil, natural gas and/or casinghead gas levied by this
313	302		article shall be levied, collected and deposited in the General
314	303		Revenue Fund of the State Treasury.
315	304		4. All monies to accrue to the Corporation Commission Plugging
316	305		Fund are hereby appropriated and shall be used for payment of
317	306		expenses related to the statutory purpose of the fund.
318	307		The provisions of this subsection shall terminate on June 30,
319	308		2026 2025.
320	309
321		-	SENATE FLOOR VERSION - HB1370 SFLR Page 7
322		-	(Bold face denotes Committee Amendments) 1
	310	+	ENGR. H. B. NO. 1370 Page 7 1
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347	335		B. 1. Beginning on July 1, 2026 2025, all monies derived from
348	336		the levy of the excise tax on petroleum oil provided for by Section
349	337		1101 of this title shall be deposited with the State Treasurer, who
350	338		shall credit and apportion the same as follows:
351	339		a. seven and sixty-five hundredths percent (7.65%) shall
352	340		be credited and apportioned to The Interstate Oil
353	341		Compact Fund of Oklahoma, and
354	342		b. ninety-two and thirty-five hundredths percent (92.35%)
355	343		of said excise tax shall be credited and apportioned
356	344		to the General Revenue Fund of the State Treasury;
357	345		provided, in each fiscal year beginning on or after
358	346		July 1, 2013 2025, the first One Million Three Hundred
359	347		Fifty Thousand Dollars ($1,350,000.00) whic h would
360	348		otherwise have been apportioned to the General Revenue
361	349		Fund pursuant to this subparagraph shall instead be
362	350		transferred to the Oil and Gas Division Revolving Fund
363	351		of the Oklahoma Corporation Commission, and second an
364	352		amount up to Ten Million Dollars ($10,000,000.00)
365	353		shall be transferred to the Corporation Commission
366	354		Plugging Fund.
367	355		b. the remaining seven and sixty -five hundredths percent
368	356		(7.65%) of said excise tax shall be credited and
369	357		apportioned to a separate and distinct fund to be
370	358
371		-	SENATE FLOOR VERSION - HB1370 SFLR Page 8
372		-	(Bold face denotes Committee Amendments) 1
	359	+	ENGR. H. B. NO. 1370 Page 8 1
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397	384		known as "The Interstate Oil Compact Fund of
398	385		Oklahoma", which fund is hereby created.
399	386		2. Beginning on July 1, 2026 2025, all monies derived from the
400	387		levy of the excise tax on natural gas and/or casinghead gas provided
401	388		for by Section 1102 of this title shall be deposited with the State
402	389		Treasurer, who shall credit and apportion the same as follows:
403	390		a. seven and sixty-five hundredths percent (7.65%) shall
404	391		be credited and apportioned to The Interstate Oil
405	392		Compact Fund of Oklahoma, and
406	393		b. ninety-two and thirty-five hundredths percent (92.35%)
407	394		of said excise tax shall be credited and apportioned
408	395		to the General Revenue Fund of the State Treasury;
409	396		provided, in each fiscal year beginning on or after
410	397		July 1, 2013 2025, the first One Million Three Hundred
411	398		Fifty Thousand Dollars ($1, 350,000.00) which would
412	399		otherwise have been apportioned to the General Revenue
413	400		Fund pursuant to this subparagraph shall instead be
414	401		transferred to the Oil and Gas Division Revolving Fund
415	402		of the Oklahoma Corporation Commission, and second an
416	403		amount up to Ten Million Dollars ($10,000,000.00)
417	404		shall be transferred to the Corporation Commission
418	405		Plugging Fund.
419	406
420		-	SENATE FLOOR VERSION - HB1370 SFLR Page 9
421		-	(Bold face denotes Committee Amendments) 1
	407	+	ENGR. H. B. NO. 1370 Page 9 1
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446	432		b. seven and sixty-five hundredths percent (7.65%) of
447	433		said excise tax shall be credited and apportioned to
448	434		The Interstate Oil Compact Fund of Oklahoma.
449	435		3. Beginning on July 1, 2026 2025, all monies to accrue to The
450	436		Interstate Oil Compact Fund of Oklahoma under the provisions of this
451	437		article, together with all monies remaining unexpended in The
452	438		Interstate Oil Compact Fund of Oklahoma created under this
453	439		subsection are hereby appropriated and shall be used for the payment
454	440		of the compensation of the assistant representative of the State of
455	441		Oklahoma on The Interstate Oil Compact Commission, the compensation
456	442		of such clerical, technical and legal assistants as he or she may
457	443		with the consent of the Governor employ; the actual and necessary
458	444		traveling expenses of the assistant representative and employees,
459	445		and of the Governor when traveling in the Governor's capacity as
460	446		official representative of the State of Oklahoma o n The Interstate
461	447		Oil Compact Commission; all items of office expense including the
462	448		cost of office supplies and equipment; such contributions as the
463	449		Governor shall deem necessary and proper to pay to The Interstate
464	450		Oil Compact Commission to defray its expen ses; and such other
465	451		necessary expenses as may be incurred in enabling the State of
466	452		Oklahoma to fully cooperate in accomplishing the objects of the
467	453		Interstate Compact to conserve oil and gas. The fund shall be
468	454		disbursed by the State Treasurer upon sworn, i temized claims
469	455		approved by the assistant representative and the Governor; provided,
470	456
471		-	SENATE FLOOR VERSION - HB1370 SFLR Page 10
472		-	(Bold face denotes Committee Amendments) 1
	457	+	ENGR. H. B. NO. 1370 Page 10 1
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497	482		that if at the end of any fiscal year any part of the special fund
498	483		shall remain unexpended, such balance shall be transferred by the
499	484		State Treasurer to, and become a part o f, the General Revenue Fund
500	485		of the State Treasury for the ensuing fiscal year. Provided,
501	486		further, that if the State of Oklahoma withdraws from the Interstate
502	487		Compact to conserve oil and gas, any unencumbered monies in The
503	488		Interstate Oil Compact Fund of Ok lahoma shall be transferred to and
504	489		become a part of the General Revenue Fund of the State Treasury and
505	490		thereafter the excise tax on petroleum oil, natural gas and/or
506	491		casinghead gas levied by this article shall be levied, collected and
507	492		deposited in the Gene ral Revenue Fund of the State Treasury.
508	493		SECTION 3. This act shall become effective July 1, 2025.
509	494		SECTION 4. It being immediately necessary for the preservation
510	495		of the public peace, health or safety, an emergency is hereby
511	496		declared to exist, by reason whereof this act shall take effect and
512	497		be in full force from and after its passage and approval.
513		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
514		-	April 16, 2025 - DO PASS
	498	+	Passed the House of Representatives the 5th day of March, 2025.
	499	+
	500	+
	501	+
	502	+
	503	+	Presiding Officer of the House
	504	+	of Representatives
	505	+
	506	+
	507	+	Passed the Senate the _____ day of __________, 2025.
	508	+
	509	+
	510	+
	511	+
	512	+	Presiding Officer of the Senate