88R22976 SHH-D
By: Dean, King of Hemphill, Darby, Landgraf, H.B. No. 3368
Geren, et al.
Substitute the following for H.B. No. 3368:
By: Harless C.S.H.B. No. 3368
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain transactions involving oil
and gas tubing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1956.001, Occupations Code, is amended
by adding Subdivision (7-a) and amending Subdivision (10) to read
as follows:
(7-a) "Oil and gas tubing" means steel pipe with a
nominal outside diameter between one inch and eight inches and a
total length of 10 feet or longer, commonly used in the process of
drilling and completing oil and gas wells.
(10) "Regulated metal" means:
(A) manhole covers;
(B) guardrails;
(C) metal cylinders designed to contain
compressed air, oxygen, gases, or liquids;
(D) malt beverage kegs made from metal other than
aluminum;
(E) historical markers or cemetery vases,
receptacles, or memorials made from metal other than aluminum;
(F) unused rebar;
(G) street signs;
(H) drain gates;
(I) safes;
(J) communication, transmission, and service
wire or cable;
(K) condensing or evaporator coils for central
heating or air conditioning units;
(L) utility structures, including the fixtures
and hardware;
(M) aluminum or stainless steel containers
designed to hold propane for fueling forklifts;
(N) metal railroad equipment, including tie
plates, signal houses, control boxes, signs, signals, traffic
devices, traffic control devices, traffic control signals, switch
plates, e-clips, and rail tie functions;
(O) catalytic converters not attached to a
vehicle;
(P) fire hydrants;
(Q) metal bleachers or other seating facilities
used in recreational areas or sporting arenas;
(R) any metal item clearly and conspicuously
marked with any form of the name, initials, or logo of a
governmental entity, utility, cemetery, or railroad;
(S) insulated utility, communications, or
electrical wire that has been burned in whole or in part to remove
the insulation;
(T) backflow valves;
(U) metal in the form of commonly recognized
products of the industrial metals recycling process, including
bales, briquettes, billets, sows, ingots, pucks, and chopped or
shredded metals; [and]
(V) commercial grade lead batteries or lead-acid
batteries; and
(W) oil and gas tubing.
SECTION 2. Section 1956.002, Occupations Code, is amended
to read as follows:
Sec. 1956.002. EXCEPTION. This chapter does not apply to:
(1) a purchase of regulated material from a public
utility, a telecommunications provider as defined by Section
51.002, Utilities Code, a cable service provider as defined by
Section 66.002, Utilities Code, a video service provider as defined
by Section 66.002, Utilities Code, or a manufacturing, industrial,
commercial, retail, or other seller that sells regulated material
in the ordinary course of the seller's business;
(2) a purchase of regulated material by a manufacturer
whose primary business is the manufacture of iron and steel
products made from melting scrap iron and scrap steel; [or]
(3) the transport or hauling of recyclable materials
to or from the metal recycling entity; or
(4) a purchase or sale of oil and gas tubing by an
organization whose primary business is the extraction, refining, or
transport of oil and gas, or that has been issued a Railroad
Commission of Texas operator number.
SECTION 3. Subchapter A, Chapter 1956, Occupations Code, is
amended by adding Section 1956.0021 to read as follows:
Sec. 1956.0021. APPLICATION TO CERTAIN OIL AND GAS TUBING
TRANSACTIONS. The recordkeeping and reporting requirements of this
chapter apply to a purchase of oil and gas tubing by a person whose
primary business is purchasing and reselling oil and gas tubing to
the same extent as a purchase of regulated material by a metal
recycling entity.
SECTION 4. Section 1956.017(b), Occupations Code, is
amended to read as follows:
(b) The advisory committee consists of 16 [15] members
appointed by the director as follows:
(1) one representative of the department;
(2) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 500,000 or more;
(3) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 200,000 or more but less than 500,000;
(4) one representative of a local law enforcement
agency located in a municipality with a population of less than
200,000;
(5) five representatives of metal recycling entities;
(6) three [two] members who represent industries that
are impacted by theft of regulated material, at least one of whom
represents the oil and gas industry;
(7) one sheriff of a county with a population of
500,000 or more; and
(8) one sheriff of a county with a population of less
than 500,000.
SECTION 5. As soon as practicable after the effective date
of this Act:
(1) the Public Safety Commission shall adopt rules to
implement the changes in law made by this Act to Chapter 1956,
Occupations Code; and
(2) the public safety director of the Department of
Public Safety shall appoint a member to the advisory committee
under Section 1956.017, Occupations Code, as amended by this Act,
in accordance with that section.
SECTION 6. This Act takes effect September 1, 2023.