LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1806 by Sparks (Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.), As Introduced The fiscal implications of the bill cannot be determined because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Code of Criminal Procedure to establish procedures for the sale and disposal of stolen petroleum products. The bill would require law enforcement officers who seize stolen crude oil or condensate to immediately arrange for its sale at market prices based on New York Mercantile Exchange (NYMEX) rates. The bill would require proceeds from the sale to be deposited and managed according to existing rules for seized funds. The bill would allow law enforcement agencies to contract with private entities for sales.The bill would amend the Government Code to authorize comprehensive inspections of cargo tanks transporting petroleum products. The bill would authorize commissioned officers trained under a program developed by the Department of Public Safety (DPS) to inspect cargo tanks, collect samples for forensic analysis, and submit them to crime laboratories. The bill would authorize DPS to accept gifts and grants to fund forensic analyses.The bill would amend the Penal Code to expand and increase penalties for petroleum product and oil and gas equipment theft. The bill would establish that a person would commit an offense if they unlawfully appropriate, transport, store, or purchase petroleum products or oil and gas equipment without proper authorization. The bill would establish third-degree felony charges for thefts valued under $10,000, second-degree felony charges for thefts between $10,000 and $100,000, and first-degree felony charges for thefts exceeding $100,000.The bill would amend the Water Code to establish criminal penalties for operating unauthorized oil and gas waste disposal wells. The bill would establish that a person would commit an offense by drilling, converting, or using a disposal well without a permit from the Railroad Commission of Texas. Under the provisions of the bill, the penalties would be based on the value of disposed waste, with offenses classified as third-degree felonies for violations under $10,000, second-degree felonies for violations between $10,000 and $100,000, and first-degree felonies for violations over $100,000.The bill would require the Public Safety Commission to adopt rules implementing new inspection procedures by January 1, 2026; that changes to the Code of Criminal Procedure would apply only to property seized on or after the bill's effective date; and that criminal penalties would apply only to offenses committed on or after the effective date, while prior violations would remain subject to existing law.Based on the analysis of the Comptroller of Public Accounts and the Office of Court Administration (OCA), the fiscal impact cannot be estimated because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown. Based on information provided by the Railroad Commission and DPS, is assumed that any costs associated with the bill could be absorbed using existing resources.It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant. Local Government ImpactIt is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 405 Department of Public Safety, 455 Railroad Commission LBB Staff: b > td > JMc, MGol, MW, JOc, RStu LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1806 by Sparks (Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.), As Introduced TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1806 by Sparks (Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.), As Introduced Honorable Pete Flores, Chair, Senate Committee on Criminal Justice Honorable Pete Flores, Chair, Senate Committee on Criminal Justice Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board SB1806 by Sparks (Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.), As Introduced SB1806 by Sparks (Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.), As Introduced The fiscal implications of the bill cannot be determined because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The fiscal implications of the bill cannot be determined because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Code of Criminal Procedure to establish procedures for the sale and disposal of stolen petroleum products. The bill would require law enforcement officers who seize stolen crude oil or condensate to immediately arrange for its sale at market prices based on New York Mercantile Exchange (NYMEX) rates. The bill would require proceeds from the sale to be deposited and managed according to existing rules for seized funds. The bill would allow law enforcement agencies to contract with private entities for sales.The bill would amend the Government Code to authorize comprehensive inspections of cargo tanks transporting petroleum products. The bill would authorize commissioned officers trained under a program developed by the Department of Public Safety (DPS) to inspect cargo tanks, collect samples for forensic analysis, and submit them to crime laboratories. The bill would authorize DPS to accept gifts and grants to fund forensic analyses.The bill would amend the Penal Code to expand and increase penalties for petroleum product and oil and gas equipment theft. The bill would establish that a person would commit an offense if they unlawfully appropriate, transport, store, or purchase petroleum products or oil and gas equipment without proper authorization. The bill would establish third-degree felony charges for thefts valued under $10,000, second-degree felony charges for thefts between $10,000 and $100,000, and first-degree felony charges for thefts exceeding $100,000.The bill would amend the Water Code to establish criminal penalties for operating unauthorized oil and gas waste disposal wells. The bill would establish that a person would commit an offense by drilling, converting, or using a disposal well without a permit from the Railroad Commission of Texas. Under the provisions of the bill, the penalties would be based on the value of disposed waste, with offenses classified as third-degree felonies for violations under $10,000, second-degree felonies for violations between $10,000 and $100,000, and first-degree felonies for violations over $100,000.The bill would require the Public Safety Commission to adopt rules implementing new inspection procedures by January 1, 2026; that changes to the Code of Criminal Procedure would apply only to property seized on or after the bill's effective date; and that criminal penalties would apply only to offenses committed on or after the effective date, while prior violations would remain subject to existing law.Based on the analysis of the Comptroller of Public Accounts and the Office of Court Administration (OCA), the fiscal impact cannot be estimated because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown. Based on information provided by the Railroad Commission and DPS, is assumed that any costs associated with the bill could be absorbed using existing resources.It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant. The bill would amend the Code of Criminal Procedure to establish procedures for the sale and disposal of stolen petroleum products. The bill would require law enforcement officers who seize stolen crude oil or condensate to immediately arrange for its sale at market prices based on New York Mercantile Exchange (NYMEX) rates. The bill would require proceeds from the sale to be deposited and managed according to existing rules for seized funds. The bill would allow law enforcement agencies to contract with private entities for sales.The bill would amend the Government Code to authorize comprehensive inspections of cargo tanks transporting petroleum products. The bill would authorize commissioned officers trained under a program developed by the Department of Public Safety (DPS) to inspect cargo tanks, collect samples for forensic analysis, and submit them to crime laboratories. The bill would authorize DPS to accept gifts and grants to fund forensic analyses.The bill would amend the Penal Code to expand and increase penalties for petroleum product and oil and gas equipment theft. The bill would establish that a person would commit an offense if they unlawfully appropriate, transport, store, or purchase petroleum products or oil and gas equipment without proper authorization. The bill would establish third-degree felony charges for thefts valued under $10,000, second-degree felony charges for thefts between $10,000 and $100,000, and first-degree felony charges for thefts exceeding $100,000.The bill would amend the Water Code to establish criminal penalties for operating unauthorized oil and gas waste disposal wells. The bill would establish that a person would commit an offense by drilling, converting, or using a disposal well without a permit from the Railroad Commission of Texas. Under the provisions of the bill, the penalties would be based on the value of disposed waste, with offenses classified as third-degree felonies for violations under $10,000, second-degree felonies for violations between $10,000 and $100,000, and first-degree felonies for violations over $100,000.The bill would require the Public Safety Commission to adopt rules implementing new inspection procedures by January 1, 2026; that changes to the Code of Criminal Procedure would apply only to property seized on or after the bill's effective date; and that criminal penalties would apply only to offenses committed on or after the effective date, while prior violations would remain subject to existing law. The bill would amend the Code of Criminal Procedure to establish procedures for the sale and disposal of stolen petroleum products. The bill would require law enforcement officers who seize stolen crude oil or condensate to immediately arrange for its sale at market prices based on New York Mercantile Exchange (NYMEX) rates. The bill would require proceeds from the sale to be deposited and managed according to existing rules for seized funds. The bill would allow law enforcement agencies to contract with private entities for sales. The bill would amend the Government Code to authorize comprehensive inspections of cargo tanks transporting petroleum products. The bill would authorize commissioned officers trained under a program developed by the Department of Public Safety (DPS) to inspect cargo tanks, collect samples for forensic analysis, and submit them to crime laboratories. The bill would authorize DPS to accept gifts and grants to fund forensic analyses. The bill would amend the Penal Code to expand and increase penalties for petroleum product and oil and gas equipment theft. The bill would establish that a person would commit an offense if they unlawfully appropriate, transport, store, or purchase petroleum products or oil and gas equipment without proper authorization. The bill would establish third-degree felony charges for thefts valued under $10,000, second-degree felony charges for thefts between $10,000 and $100,000, and first-degree felony charges for thefts exceeding $100,000. The bill would amend the Water Code to establish criminal penalties for operating unauthorized oil and gas waste disposal wells. The bill would establish that a person would commit an offense by drilling, converting, or using a disposal well without a permit from the Railroad Commission of Texas. Under the provisions of the bill, the penalties would be based on the value of disposed waste, with offenses classified as third-degree felonies for violations under $10,000, second-degree felonies for violations between $10,000 and $100,000, and first-degree felonies for violations over $100,000. The bill would require the Public Safety Commission to adopt rules implementing new inspection procedures by January 1, 2026; that changes to the Code of Criminal Procedure would apply only to property seized on or after the bill's effective date; and that criminal penalties would apply only to offenses committed on or after the effective date, while prior violations would remain subject to existing law. Based on the analysis of the Comptroller of Public Accounts and the Office of Court Administration (OCA), the fiscal impact cannot be estimated because the number of offenses that would be committed under the new criminal offenses created by the bill, the number of prosecutions that would increase court costs and fees remitted to the state, and the amount of those court costs and fees that would be collected is unknown. It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant. Local Government Impact It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant. It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 405 Department of Public Safety, 455 Railroad Commission 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 405 Department of Public Safety, 455 Railroad Commission LBB Staff: b > td > JMc, MGol, MW, JOc, RStu JMc, MGol, MW, JOc, RStu