According to the Legislative Budget Board (LBB), the fiscal implications of HB 3707 are currently indeterminate. This uncertainty stems from the lack of reliable estimates regarding how many offenses might occur under the new criminal provisions created by the bill. Without that data, state agencies cannot accurately predict the volume of associated prosecutions, court proceedings, or the revenue generated from court fees and costs. Although the bill does not appropriate funding directly, it could provide a legal basis for future appropriations should enforcement or administrative support require it.

Key components of the bill, such as the mandated sale of seized petroleum products and new inspection authority for the Department of Public Safety (DPS), introduce operational changes but are not expected to have a significant fiscal impact. The DPS is authorized to conduct cargo tank inspections and submit samples for forensic analysis, with the added ability to accept gifts and grants to support these operations. According to both the DPS and the Railroad Commission, any administrative or implementation costs are anticipated to be absorbed within their existing resources.

Furthermore, the expansion and classification of criminal offenses related to petroleum theft and unauthorized waste disposal are expected to have a limited impact on the state's correctional system. The bill elevates penalties based on the value of stolen or improperly disposed materials, but the volume of cases projected under the new classifications does not suggest a major strain on state correctional facilities. Similarly, local governments are not expected to experience significant fiscal effects related to enforcement or prosecution activities under the bill’s provisions.

HB 3707 provides a targeted legislative response to the increasing problem of petroleum theft and unauthorized oilfield activities in Texas. With Texas being a global leader in oil and gas production, theft operations—often organized and sophisticated—pose not only financial risks to operators but also regulatory and environmental challenges. This bill seeks to modernize the state's legal framework by giving law enforcement the tools and authority necessary to investigate and prosecute petroleum-related crimes more effectively.

HB 3707 strengthens penalties for theft involving petroleum products and oilfield equipment, introduces structured pricing and sale protocols for seized petroleum, and formalizes investigative authority for the Department of Public Safety (DPS) to conduct cargo tank inspections and forensic analysis. The bill also criminalizes the unauthorized operation of oil and gas waste disposal wells, with graduated felony penalties based on the value of the illegal activity. These provisions directly support the principles of personal responsibility, private property rights, and free enterprise by deterring unlawful appropriation and reinforcing legitimate industry operations.

The fiscal note suggests minimal fiscal impact to state and local governments, with implementation costs expected to be absorbed by existing resources. While the exact number of future criminal offenses and court proceedings is unknown, the structure of the bill emphasizes efficiency in enforcement rather than creating expansive new bureaucracies​. Importantly, the bill also includes procedural safeguards to ensure that only property seized on or after the effective date falls under the new provisions, preserving due process for past offenses.

In sum, the bill balances the need for greater enforcement in high-value oil and gas operations with respect for limited government and rule of law. It reflects cross-partisan support for strengthening Texas's regulatory posture in a critical economic sector. Thus, Texas Policy Research recommends that lawmakers vote YES on HB 3707.

• Individual Liberty: The bill grants new authority to law enforcement, specifically trained DPS officers, to inspect cargo tanks suspected of transporting stolen petroleum products and to collect samples for forensic testing. While these actions are intended to combat organized theft, they do expand the scope of government searches and may raise concerns around warrantless inspections. However, the bill includes procedural safeguards, such as requiring officer training and forensic protocols, which help preserve due process protections and limit arbitrary enforcement.
• Personal Responsibility: The bill reinforces the expectation that individuals and businesses involved in the oil and gas sector operate transparently and legally. By criminalizing the purchase, storage, or transport of petroleum products without proper authorization, or the failure to identify ownership, the bill directly incentivizes ethical conduct and holds individuals accountable for engaging in illicit transactions. This strengthens the principle that people are responsible for the legal and economic consequences of their actions​.
• Free Enterprise: The bill benefits law-abiding businesses in the oil and gas industry by helping protect them from unfair competition posed by black-market operators and organized theft. It enhances market integrity by streamlining the process for lawful seizure and sale of stolen products, based on transparent market prices (NYMEX benchmarks). This helps foster a more competitive and lawful marketplace while discouraging underground economic activity that undermines legitimate commerce.
• Private Property Rights: At its core, the bill strengthens protections for private property. It enables rightful owners of stolen petroleum products to reclaim proceeds from state-administered sales and creates new felony offenses for unauthorized use or theft of oil and gas equipment. This reinforces the idea that ownership rights are protected by law and that unlawful interference—whether through theft, fraud, or improper disposal—is a punishable offense.
• Limited Government: While the bill expands government enforcement powers, it does so in a limited and specific context: combating petroleum theft and illegal disposal of oilfield waste. The bill does not create new agencies or regulatory bodies, and enforcement authority is confined to trained DPS officers under guidelines set by the Public Safety Commission. Additionally, it allows for partnerships with private entities for the sale of seized petroleum products, reflecting a preference for leveraging existing structures over expanding government apparatus. As such, the bill aligns with the principle of limited government while addressing a targeted enforcement gap​.

• SB 1806 (Same As)