84R4184 TJB-D
By: King of Parker H.B. No. 539
A BILL TO BE ENTITLED
AN ACT
relating to the procedural requirements for the adoption of a
municipal regulation, limitation, or prohibition on the
production, storage, or transportation of oil or natural gas;
authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 7, Local Government Code, is
amended by adding Chapter 218 to read as follows:
CHAPTER 218. MUNICIPAL REGULATION OF PRODUCTION, STORAGE, OR
TRANSPORTATION OF OIL OR NATURAL GAS
Sec. 218.001. DEFINITIONS. In this chapter:
(1) "Affected area" means a geographic area impacted
by an oil or gas measure.
(2) "Gas" means natural gas.
(3) "Oil" means crude oil or crude petroleum oil.
(4) "Oil or gas measure" means a municipal ordinance
or other municipal measure, including a measure requiring approval
by voters, to regulate, limit, or prohibit the production, storage,
or transportation of oil or gas.
(5) "Political subdivision" means a municipality,
county, school district, junior college district, other special
district, or other subdivision of state government.
Sec. 218.002. ADDITIONAL PROCEDURAL REQUIREMENTS. A
municipality with authority to adopt an oil or gas measure may not
adopt an oil or gas measure unless the municipality complies with
the requirements of this chapter, in addition to other requirements
prescribed by law.
Sec. 218.003. PREPARATION OF FISCAL NOTES AND EQUALIZED
EDUCATION FUNDING IMPACT STATEMENTS. (a) A municipality must
submit any request for the preparation of a fiscal note and an
equalized education funding impact statement for an oil or gas
measure required under this chapter in writing and addressed to the
director of the Legislative Budget Board.
(b) The Legislative Budget Board shall prepare a fiscal note
and an equalized education funding impact statement if requested by
a municipality.
(c) A municipality shall pay the cost to prepare a fiscal
note and an equalized education funding impact statement and any
administrative fee determined by the director of the Legislative
Budget Board to be necessary to administer the preparation of
documents requested under this section.
(d) In preparing a fiscal note and an equalized education
funding impact statement, the director of the Legislative Budget
Board may use information or data supplied by any person, agency,
organization, or governmental unit that the director considers
reliable.
Sec. 218.004. CONTENTS OF FISCAL NOTES. (a) In preparing a
fiscal note for an oil or gas measure, the Legislative Budget Board
shall identify:
(1) the fiscal implications of the measure to the
state and local governments of the state;
(2) the probable cost to the state that will result
from the measure, including:
(A) the loss of tax revenue from all sources;
(B) the loss of revenue from fees, licenses,
penalties, or other charges;
(C) the loss of royalty income; and
(D) the diversion of state funds for a purpose
other than one provided for in the state general appropriations
bill;
(3) the probable cost to political subdivisions in the
affected area that will result from the measure, including:
(A) the loss of tax revenue from all sources;
(B) the loss of revenue from fees, licenses,
penalties, or other charges; and
(C) the loss of royalty income; and
(4) the amount of money the municipality adopting the
measure will be required to annually remit to the state as
reimbursement for the cost to the state resulting from the measure,
calculated as the sum of:
(A) the probable cost identified in Subdivision
(2); and
(B) the amount of the applicable difference
calculated under Section 218.005.
(b) A fiscal note must state whether costs or diversions
identified in Subsection (a) will be involved after the projected
five-year period as determined under Subsection (c).
(c) In preparing a fiscal note, the Legislative Budget Board
must project the implications, costs, and amounts identified in
Subsection (a) for each year of a five-year period. For a fiscal
note requested before the oil or gas measure is adopted, the
Legislative Budget Board must use the five-year period beginning on
January 1 of the year following the year in which the request is
made. For a fiscal note requested after a measure is adopted, the
Legislative Budget Board must use the five-year period beginning on
the date the measure takes effect.
Sec. 218.005. CONTENTS OF EQUALIZED EDUCATION FUNDING
IMPACT STATEMENTS. (a) In preparing an equalized education funding
impact statement for an oil or gas measure, the Legislative Budget
Board shall determine the applicable difference calculated under
this section that will result from the measure.
(b) For a school district in the affected area that is
required to take action to achieve the equalized wealth level under
Chapter 41, Education Code, the Legislative Budget Board, based on
the comptroller's projection under Subsection (f), shall determine
the difference between the anticipated total cost of attendance
credits for the district under Section 41.093, Education Code, and
the total cost of attendance credits under that section that would
result if the district's maintenance and operations tax revenue
were not reduced as a result of the oil or gas measure.
(c) For a school district in the affected area that is not
required to take action to achieve the equalized wealth level under
Chapter 41, Education Code, the Legislative Budget Board, based on
the comptroller's projection under Subsection (f), shall
determine:
(1) the difference between the district's anticipated
local share under Section 42.252, Education Code, and the local
share that would result if the district's taxable value of property
were not reduced as a result of the oil or gas measure;
(2) if applicable, the difference between the amount
of state revenue to which the district is anticipated to be entitled
under Section 42.2516, Education Code, and the amount of state
revenue to which the district would be entitled under that section
if the district's taxable value of property were not reduced as a
result of the measure; and
(3) the difference between the anticipated guaranteed
yield amount of state funds to be allocated to the district under
Section 42.302, Education Code, and the amount that would be
allocated to the district if the district's taxable value of
property were not reduced as a result of the measure.
(d) For purposes of making the determinations required by
Subsections (b) and (c), the Legislative Budget Board shall assume
for each year of the projected five-year period, as determined
under Subsection (e), that a district's maintenance and operations
tax rate and number of students in weighted average daily
attendance is the same as the district's maintenance and operations
tax rate and number of students in weighted average daily
attendance for the school year during which the determinations are
made.
(e) In preparing an equalized education funding impact
statement, the Legislative Budget Board must project the
differences calculated under this section for each year of a
five-year period, as determined in the same manner as the five-year
period is determined for a fiscal note under Section 218.004(c).
(f) For each school district in the affected area, the
comptroller shall project for each year of the five-year period, as
determined under Subsection (e), the anticipated reduction in the
district's taxable value of property determined under Subchapter M,
Chapter 403, Government Code, resulting from the oil or gas
measure.
Sec. 218.006. NOTICE OF HEARING. For each hearing at which
an oil or gas measure will be considered, a municipality must
provide public notice that includes the following documents and
statements:
(1) a current copy of:
(A) the measure;
(B) a fiscal note prepared by the Legislative
Budget Board for the measure; and
(C) an equalized education funding impact
statement prepared by the Legislative Budget Board for the measure;
(2) a statement that the municipality will be required
to reimburse the state for the cost to the state for a five-year
period resulting from the measure as determined by the fiscal note
prepared by the Legislative Budget Board;
(3) a separate statement of the amount specified in
the current fiscal note that the municipality will be required to
annually remit to the state as reimbursement for the cost described
by Subdivision (2); and
(4) a statement describing in detail the source or
sources of money that the municipality will use to reimburse the
state for the cost described by Subdivision (2), including if
applicable:
(A) the type and amount of each new tax or fee the
municipality will enact or adopt and the revenue projected to be
raised from the new tax or fee;
(B) the type of each existing tax or fee that the
municipality will increase the rate or amount of, the amount of the
increase, and the revenue projected to be raised from the increase;
and
(C) the specific expenses for the maintenance and
operation of the municipality that will be reduced, and the revenue
projected to be saved from those reductions.
Sec. 218.007. CONTENTS OF BALLOT PROPOSITION. The
governing body of a municipality must ensure that an oil or gas
measure submitted to municipal voters at an election for approval
includes a copy of the documents and statements described by
Section 218.006.
Sec. 218.008. NOTICE OF ADOPTED OIL OR GAS MEASURE. (a)
Before a municipality may begin to enforce an oil or gas measure,
the municipality must provide public notice of the adoption of the
measure. The notice must include the documents and statements
described by Section 218.006 for the adopted version of the
measure.
(b) Notice under this section must be:
(1) published in a newspaper of general circulation in
the municipality;
(2) posted continuously on the municipality's Internet
website, if the municipality maintains a website, until the first
anniversary of the date the oil or gas measure takes effect; and
(3) made available for public inspection.
(c) The notice required by this section is in addition to a
notice required by other law.
Sec. 218.009. REIMBURSEMENT FOR COST TO STATE. (a) If a
municipality adopts an oil or gas measure, the municipality shall
reimburse the state for the cost to the state for a five-year period
resulting from the measure as determined by the fiscal note
prepared under this chapter.
(b) The municipality shall notify the comptroller in
writing that the oil or gas measure has been adopted not later than
the 10th day after the date the measure is adopted.
(c) By the dates and in the manner determined by the
comptroller, the municipality shall remit five annual payments to
the comptroller in the amount calculated under Section
218.004(a)(4) as specified in the fiscal note for the oil or gas
measure.
(d) The comptroller shall deposit the portion of the amount
remitted by the municipality described by Section 218.004(a)(4)(A)
in the general revenue fund and the amount described by Section
218.004(a)(4)(B) in the foundation school fund.
SECTION 2. Chapter 218, Local Government Code, as added by
this Act, applies only to an oil or gas measure, as defined by
Section 218.001(4), Local Government Code, as added by this Act,
that is adopted on or after the effective date of this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.