According to the Legislative Budget Board (LBB), the fiscal implications ofSB 1806 remain indeterminate due to uncertainties in enforcement outcomes. Specifically, state agencies cannot estimate how many new criminal offenses will be committed under the bill, nor how many prosecutions will result. Consequently, the potential increase in court costs and fees, as well as the revenue that might be collected from those costs, cannot be reliably projected.

However, the bill itself introduces new responsibilities for law enforcement and regulatory agencies, including the sale and proper handling of seized petroleum products and the inspection of petroleum cargo tanks. While these activities could entail additional workload, the Department of Public Safety (DPS) and the Railroad Commission have indicated that they expect to absorb any related costs within their existing resources. Additionally, the bill allows DPS to accept gifts and grants to fund forensic testing, which may offset some of the new financial burdens.

From a criminal justice standpoint, while SB 1806 enhances penalties and expands prosecutable conduct, the analysis assumes that these changes will not result in a significant impact on state correctional populations or correctional resource demands. Similarly, local governments are not expected to experience substantial new costs for enforcement, prosecution, or incarceration as a result of this legislation.

In summary, although SB 1806 introduces new enforcement mechanisms and criminal penalties, the fiscal note suggests that any direct costs to the state or local governments are likely manageable. The potential revenue or savings from enhanced enforcement, however, cannot yet be quantified due to the unpredictable nature of how many cases will arise under the new law.

SB 1806 is a strong response to the growing threat of oilfield theft in Texas. The bill introduces comprehensive changes that enhance law enforcement authority, streamline the management of seized petroleum assets, and strengthen criminal penalties for theft and unauthorized oil and gas operations. The accompanying bill analysis further reinforces the intent behind these changes—targeting bad actors in the petroleum industry while respecting constitutional protections for property and procedural fairness.

A key improvement in the Committee Substitute is the clarification of criminal offenses and penalties. By consolidating the penalty tiers for petroleum product and equipment theft, the bill makes enforcement more consistent and easier to apply. It also narrows the offense under the Water Code by focusing only on those who begin drilling, using, or converting disposal wells without a permit, excluding the previously overbroad language that penalized ongoing use. This reflects a more measured and focused approach to criminalization.

The bill respects limited government principles by granting law enforcement targeted tools rather than broad, unchecked powers. Officers must be specially trained and authorized to inspect cargo tanks, and the Department of Public Safety is required to adopt rules to govern these procedures by January 2026. The authority to sell seized petroleum products is discretionary, allowing flexibility based on investigative needs and market conditions. Meanwhile, fiscal analysis suggests that the bill’s costs can be absorbed within existing agency resources, and any increased correctional impact is expected to be minimal​.

In sum, SB 1806 promotes public safety, safeguards private property, and deters illegal practices in the energy sector while upholding key liberty principles. It balances strong enforcement with procedural guardrails and aligns with positions broadly supported by Texas stakeholders across party lines. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 1806.

• Individual Liberty: The bill respects individual liberty by clearly defining the scope of government action in addressing oilfield-related crimes. Law enforcement is given authority to inspect and sample petroleum cargo only after receiving specific training, and such authority must be implemented under rules adopted by the Public Safety Commission. These provisions ensure that new enforcement powers are not open-ended or unchecked but tied to due process and narrowly tailored purposes. The bill also limits retroactive application of criminal provisions, upholding constitutional protections for individuals.

• Personal Responsibility: The bill reinforces the principle that individuals and businesses must be held accountable for their actions. It targets those who engage in theft, unlawful storage, or improper disposal of oil and gas products or equipment. By criminalizing unauthorized practices and tying penalties to the value of the theft or violation, the bill places clear responsibility on wrongdoers while deterring bad behavior that undermines lawful enterprise.

• Free Enterprise: The bill helps secure the integrity of the oil and gas industry by reducing economic distortion caused by theft and black-market activity. Legitimate businesses are often the primary victims of petroleum theft, which inflates insurance costs, disrupts operations, and erodes competitive fairness. By clarifying penalties and enabling quicker resolution through the sale of seized products, the bill supports a more secure and stable business environment.

• Private Property Rights: One of the bill’s central goals is to protect the property rights of oil and gas producers and equipment owners. It allows owners to recover the proceeds from the sale of stolen petroleum products and clarifies the authority to prosecute those who unlawfully appropriate private property. The mechanisms for seizure, sale, and reimbursement are integrated into existing procedural safeguards under the Code of Criminal Procedure, respecting due process while ensuring rightful owners are not deprived of their property without cause.

• Limited Government: While the bill does expand certain enforcement powers, it does so within a carefully defined scope. The inspection authority is conditional on training and rulemaking, and enforcement tools such as forensic testing or sale of seized goods are tied to existing legal processes. Importantly, the bill does not create any new regulatory bodies or impose burdensome mandates on law-abiding individuals or businesses. It applies criminal penalties only for conduct that directly undermines public safety, property rights, and lawful commerce.

• HB 3707 (Same As)