Texas House Bill HB539

Texas 2015 - 84th Regular

• Filed: 12/17/14

Caption

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.

Impact

The bill mandates that municipalities be proactive in communicating the potential fiscal impacts of their oil and gas measures. This includes an obligation to provide public notice about the financial consequences and any required reimbursements to the state. Such measures could complicate the municipal regulatory process, as obtaining a fiscal note may carry costs that municipalities will need to budget for. The additional requirements could serve as a deterrent to enacting new local regulations affecting the oil and gas sector, leading to a more uniform state approach.

Summary

House Bill 539 outlines procedural requirements for municipalities looking to regulate, limit, or prohibit the production, storage, or transportation of oil and natural gas. It adds a new chapter to the Local Government Code, specifying that municipalities must comply with detailed steps before adopting any such regulations. Notably, the bill requires municipalities to prepare a fiscal note and an equalized education funding impact statement, thus ensuring that local governments are aware of the financial implications of their regulations on state funding and revenues.

Contention

Critics may argue that House Bill 539 could undermine local control over important environmental issues. Depending on how municipalities interpret the bill, some may feel constrained in their ability to address local concerns regarding oil and gas operations. On the other hand, supporters may assert that the bill helps maintain a balance between state oversight and local governance, ensuring that all potential costs are calculated before imposing regulations that might affect the state's economy and revenue structure.