Oklahoma 2026 Regular Session

Oklahoma House Bill HB1370

Introduced
2/3/25  
Refer
2/4/25  
Refer
2/4/25  
Report Pass
2/26/25  
Engrossed
3/6/25  
Refer
4/1/25  
Report Pass
4/10/25  
Refer
4/10/25  

Caption

Motor Fuel Tax Code; repealer; reduction in federal excise tax on gasoline or diesel fuel; emergency.

Impact

The implications of HB 1370 on state laws are significant. By extending the sunset provisions of the existing statutes governing the plugging fund and excise tax revenues, the bill secures vital funding sources which help manage environmental impacts stemming from the oil and gas industry. Furthermore, it outlines clear mechanisms for the apportionment of tax revenues, ensuring that a portion is allocated to the General Revenue Fund while also funding the Corporation Commission's operational costs tied to petroleum oversight. The ongoing funding is seen as critical to preventing environmental hazards that abandoned wells could pose if left unaddressed.

Summary

House Bill 1370 amends the Oklahoma state laws regarding the management and allocation of funds related to oil and gas activities. The bill specifically modifies the provisions around the Corporation Commission Plugging Fund, which is utilized to fund the plugging of abandoned oil and gas wells. The key aim of the legislation is to ensure a sustained level of funding for this crucial environmental safety measure while updating the financial stipulations surrounding the excise tax on oil and gas, as well as the Interstate Oil Compact Fund. Notably, the bill extends certain existing provisions until July 1, 2031, which previously had expiration dates in the upcoming years, creating a more stable financial framework for these initiatives.

Sentiment

The discussion surrounding HB 1370 reflects a supportive sentiment toward ensuring ongoing environmental protection through robust funding mechanisms. Advocates of the bill, including members of the Oklahoma legislature, view this legislative action as an essential step to maintain effective oversight and support for the state's oil and gas operations. Conversely, there may be some apprehension regarding the long-term financial commitments involved, as ensuring sufficient revenues from excise taxes can fluctuate based on market conditions in the oil and gas sector.

Contention

While the bill seems to garner overall support, the main points of contention hinge on the handling and prioritization of tax revenues. Some stakeholders argue against dedicating a significant portion of tax funds to an ongoing plug fund when there are competing needs for state budget resources. The sustainability of the funding levels proposed is also under scrutiny, considering potential future changes in the oil market which could affect excise tax revenues. The fact that the bill provides for a large portion of the revenues to be allocated to the General Revenue Fund is intended to bolster overall state finances but could lead to disputes among those advocating for targeted support for environmental initiatives.

Companion Bills

OK HB1370

Carry Over Corporation Commission plugging fund; extending sunset; excise tax on oil and gas; termination and start dates; sales tax percentage; apportionment; apportionment cap; effective date; emergency.

Previously Filed As

OK HB1418

Revenue and taxation; motor fuel tax; marine gasoline; exemption; sale tax; effective date.

OK HB1370

Corporation Commission plugging fund; extending sunset; excise tax on oil and gas; termination and start dates; sales tax percentage; apportionment; apportionment cap; effective date; emergency.

OK HB1427

Revenue and taxation; clean burning motor vehicle fuels; insurance premium tax credits.

OK HB1295

Revenue and taxation; motor vehicle excise tax; sales tax; motor vehicles; effective date; emergency.

OK HB1550

Revenue and taxation; vehicle excise tax; value; effective date; emergency.

OK HB1183

Revenue and taxation; motor vehicle excise tax; value of vehicle; effective date.

OK HB1447

Revenue and taxation; sales tax; motor vehicle; exemptions subject to other tax; effective date; emergency.

OK HB1236

Revenue and taxation; sales tax; motor vehicle; exemptions subject to other tax; effective date; emergency.

OK HB1372

Revenue and taxation; gross production tax; limited exemption for production from certain wells; surety; effective date; emergency.

OK SB1

Taxation; directing State Board of Equalization to make certain certification; reduction of income tax rate upon certain certification. Emergency.

Similar Bills

OK HB4104

Crimes and punishment; Class B5 offenses; adding offenses; loitering; felony offenses; Sex Offenders Registration Act; adding offenses for registration; effective date.

OK SB1460

Crimes and punishments; modifying offenses in certain classes of felonies; creating felony offenses for second or subsequent offenses; adding offenses for which registration pursuant to the Sex Offenders Registration Act applies. Effective date.

OK SB1936

Crimes and punishments; creating felony offense related to false impersonation of peace officers; broadening scope of allowable seizure. Effective date.

OK SB1316

Administrative rules; directing permanent rules of certain agencies to sunset on certain dates; requiring submission of certain rules for review. Effective date.

OK HB3268

Motor vehicles; classifying the knowing display or manufacture of a fictious license plate as a Class D3 offenses; effective date.

OK SB881

Crimes and punishments; authorizing certain petition under certain circumstances. Effective date.

OK SB881

Crimes and punishments; authorizing certain petition under certain circumstances. Effective date.

OK SB837

License plates; modifying certain special license plate. Effective date.