89R18736 JAM/AJZ-F     By: Craddick H.B. No. 3707     Substitute the following for H.B. No. 3707:     By:  Darby C.S.H.B. No. 3707       A BILL TO BE ENTITLED   AN ACT   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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article 47.07, Code of Criminal Procedure, is   amended to read as follows:          Art. 47.07.  OWNER MAY RECOVER.  The real owner of the   property sold under [the provisions of] Article 47.06 or 47.13 may   recover the proceeds from the sale of the [such] property under the   same terms as prescribed in Subsection (e) of Article 18.17 [of this   Code].          SECTION 2.  Chapter 47, Code of Criminal Procedure, is   amended by adding Article 47.13 to read as follows:          Art. 47.13.  PETROLEUM PRODUCT. (a)  In this article,   "petroleum product" means crude oil or condensate.          (b)  Notwithstanding any other provision of this chapter, an   officer who takes custody of a petroleum product alleged to have   been stolen shall immediately arrange for the total amount of the   petroleum product to be sold at a price that is equal to:                (1)  in the case of crude oil, the price of the same   quantity of West Texas Intermediate crude oil, as calculated based   on that crude oil's closing price recorded on the New York   Mercantile Exchange (NYMEX) on the date preceding the date of sale;   or                (2)  in the case of condensate, the price of the same   quantity of natural gas liquids as calculated based on the U.S.   natural gas liquid composite price recorded on the New York   Mercantile Exchange (NYMEX) on the date preceding the date of sale.          (c)  The proceeds of the sale may be deposited in the manner   prescribed by Article 18.183 for seized money and disposed of in   accordance with this chapter and Chapter 18.          (d)  A law enforcement agency may contract with a private   entity to sell a petroleum product in accordance with this article.          SECTION 3.  Subchapter A, Chapter 411, Government Code, is   amended by adding Section 411.0185 to read as follows:          Sec. 411.0185.  AUTHORIZED INSPECTION OF CARGO TANKS   CONTAINING CERTAIN PETROLEUM PRODUCTS. (a)  In this section:                (1)  "Cargo tank" has the meaning assigned by Section   162.001, Tax Code.                (2)  "Crime laboratory" and "forensic analysis" have   the meanings assigned by Article 38.35, Code of Criminal Procedure.                (3)  "Petroleum product" means crude oil or condensate.          (b)  A commissioned officer of the department who receives   training described by Subsection (c) may conduct a comprehensive   inspection of any cargo tank used or suspected of being used to   transport a petroleum product on a public road or railroad in this   state. An officer who conducts an inspection under this subsection   may obtain a sample of the petroleum product or suspected petroleum   product being transported in the cargo tank and submit the sample to   a crime laboratory for forensic analysis.          (c)  The commission by rule shall develop a training program   for commissioned officers to perform comprehensive inspections   described by Subsection (b).  The training program must include   instruction regarding the proper method for an officer to safely   obtain a sample of a petroleum product from a cargo tank.          (d)  The department may accept gifts and grants from any   source to fund forensic analyses of petroleum products under this   section.          SECTION 4.  Section 31.19, Penal Code, is amended to read as   follows:          Sec. 31.19.  THEFT OF PETROLEUM PRODUCT OR OIL AND GAS   EQUIPMENT.  (a) In this section:                (1)  "Oil and gas equipment" means machinery, drilling   equipment, welding equipment, pipeline equipment, fittings, pumps,   vehicles, or other equipment and materials that are part of or   incident to the exploration, development, maintenance, and   operation of oil and gas properties, including oil and gas wells,   oil and gas leases, gasoline plants, and refineries.                (2)  "Petroleum [, "petroleum] product" means crude   oil, natural gas, or condensate.          (b)  A person commits an offense if the person:                (1)  unlawfully appropriates a petroleum product with   intent to deprive the owner of the petroleum product by:                      (A) [(1)]  possessing, removing, delivering,   receiving, purchasing, selling, moving, concealing, or   transporting the petroleum product; or                      (B) [(2)]  making or causing a connection to be   made with, or drilling or tapping or causing a hole to be drilled or   tapped in, a pipe, pipeline, or tank used to store or transport a   petroleum product;                (2)  transports to a waste disposal location a   petroleum product for which the person cannot identify the   petroleum product's initial owner;                (3)  purchases a petroleum product from a person that   is not authorized by the Railroad Commission of Texas to sell the   petroleum product; or                (4)  stores, purchases, or trades a petroleum product   for financial benefit by means of a method that is not authorized by   the Railroad Commission of Texas.          (b-1)  A person commits an offense if the person unlawfully   appropriates oil and gas equipment with intent to deprive the owner   of the oil and gas equipment by possessing, removing, delivering,   receiving, purchasing, selling, moving, concealing, or   transporting the oil and gas equipment.          (c)  Appropriation of a petroleum product or oil and gas   equipment is unlawful if it is without the owner's effective   consent.          (d)  An offense under Subsection (b) [this section] is:                (1)  a [state jail] felony of the third degree if the   total value of the petroleum product appropriated is less than   $10,000;                (2)  a felony of the second [third] degree if the total   value of the petroleum product appropriated is $10,000 or more but   less than $100,000; or                (3)  a felony of the first [second] degree if the total   value of the petroleum product appropriated is $100,000 or more   [but less than $300,000; or                [(4)  a felony of the first degree if the total value of   the petroleum product appropriated is $300,000 or more].          (e)  An offense under Subsection (b-1) is:                (1)  a felony of the third degree if the total value of   the oil and gas equipment appropriated is less than $10,000;                (2)  a felony of the second degree if the total value of   the oil and gas equipment appropriated is $10,000 or more but less   than $100,000; or                (3)  a felony of the first degree if the total value of   the oil and gas equipment appropriated is $100,000 or more.          (f)  If conduct that constitutes an offense under this   section also constitutes an offense under any other law, the actor   may be prosecuted under this section or the other law, but not both.          SECTION 5.  Section 27.031, Water Code, is amended to read as   follows:          Sec. 27.031.  PERMIT FROM RAILROAD COMMISSION; CRIMINAL   PENALTY. (a) A [No] person commits an offense if the person begins   drilling or [may continue] using a disposal well or [begin drilling   a disposal well or] converting an existing well into a disposal well   to dispose of oil and gas waste without first obtaining a permit   from the railroad commission.          (b)  An offense under this section is:                (1)  a felony of the third degree if no oil and gas   waste has been disposed of or the total value of the oil and gas   waste disposed of is less than $10,000;                (2)  a felony of the second degree if the total value of   the oil and gas waste disposed of is $10,000 or more but less than   $100,000; or                (3)  a felony of the first degree if the total value of   the oil and gas waste disposed of is $100,000 or more.          (c)  If conduct that constitutes an offense under this   section also constitutes an offense under any other law, the actor   may be prosecuted under this section or the other law, but not both.          SECTION 6.  Article 47.07, Code of Criminal Procedure, as   amended by this Act, and Article 47.13, Code of Criminal Procedure,   as added by this Act, apply only to property seized on or after the   effective date of this Act. Property seized before the effective   date of this Act is governed by the law in effect on the date the   property was seized, and the former law is continued in effect for   that purpose. For purposes of this section, property was seized   before the effective date of this Act if any portion of the property   was seized before that date.          SECTION 7.  Not later than January 1, 2026, the Public Safety   Commission shall adopt rules to implement Section 411.0185,   Government Code, as added by this Act.          SECTION 8.  Except as provided by Section 6 of this Act, the   changes in law made by this Act apply only to an offense committed   on or after the effective date of this Act.  An offense committed   before the effective date of this Act is governed by the law in   effect on the date the offense was committed, and the former law is   continued in effect for that purpose.  For purposes of this section,   an offense was committed before the effective date of this Act if   any element of the offense was committed before that date.          SECTION 9.  This Act takes effect September 1, 2025.