Highlights 77th Texas Legislature - Senate

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REGULATORY
77 th Texas Legislature
Reverse Auctions Authorized for Certain Governmental Entities - S.B. 221
by Senator Staples
House Sponsors: Representative McClendon, et al.
Currently, the General Services Commission (GSC) and other governmental entities are not specifically
permitted to purchase goods and services using an online "reverse auction." A reverse auction is one in
which the suppliers, rather than the buyers, bid for contracts to provide goods while prices start high and go
lower as the bidding continues. S.B. 221 gives GSC, county commissioners courts, local governments, and
school districts the authority to conduct reverse auctions and sets forth guidelines regarding the use of
reverse auction procedures.
Railroad Commission (Sunset) - S.B. 310
by Senator Harris
House Sponsors: Representative Chisum, et al.
The Railroad Commission of Texas (RRC) protects the state's natural resources, the environment, and
public safety through regulation of the oil and natural gas industry, pipeline transporters, natural gas
utilities, rail safety initiatives, and surface mining operations. The RRC is subject to the Texas Sunset Act
and will be abolished on September 1, 2001, unless continued by the legislature. The Sunset Advisory
Commission determined that current state law does not effectively ensure the financial assurance of oil and
gas operators, which potentially leaves the state liable for pollution and abandoned wells. The Sunset
Advisory Commission's recommendations included increasing the cap for the oil-field cleanup fund,
authorizing the RRC to set higher fees for well plugging and remediation efforts, and creating a voluntary
cleanup program. S.B. 310 provides for the continuation of the RRC until September 1, 2013, in addition to
the recommended modifications. The bill’s major provisions are outlined below.
Administration and Policy
Includes standard Sunset Advisory Commission recommendations regarding the development of an equal
employment policy, conflicts of interest, the maintaining of written complaints, policy implementation, public
testimony, and the state employee incentive program.
Fees; Lien
Authorizes RRC to accept payment of regulatory fees, fines, and penalties by an electronic payment
method or credit card account, and collect a reasonable service charge to cover costs of this service.
Gives RRC a statutory lien on an abandoned well it has contracted to plug, and provides foreclosure by
operation of law on this lien if the operator fails to request a hearing within 15 days of receiving agency
notice.
Allows RRC to dispose of well-site equipment and any amount of hydrocarbons from the well in a
commercially reasonable manner upon foreclosure.
Senate Research Center 240