HB 1370: 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. - Oklahoma

Floor (House) → Floor (Senate) · 4 edits

MODERATE

The bill was amended to change the sunset date from July 1, 2031 to July 1, 2025, and to adjust the allocation percentages of excise tax revenue between the General Revenue Fund, the Corporation Commission Plugging Fund, and the Interstate Oil Compact Fund of Oklahoma. These changes affect how much money goes to each fund and when the special tax provisions expire.

Scope change

The bill's applicability period was shortened by four years, and the distribution of tax revenue among state funds was modified.

TIMELINE

The sunset date for the excise tax provisions was changed from July 1, 2031 to July 1, 2025, ending the special tax regime four years earlier than originally planned.

FISCAL

The allocation percentages for excise tax revenue were adjusted: for petroleum oil, the General Revenue Fund receives 82.634% (unchanged), the Plugging Fund receives 10.526% (unchanged), and the Interstate Oil Compact Fund receives 6.84% (unchanged); for natural gas, the General Revenue Fund receives 82.6045% (unchanged), the Plugging Fund receives 10.5555% (increased from 6.84%), and the Interstate Oil Compact Fund receives 6.84% (unchanged).

A new provision was added requiring that the first $1,350,000 of excise tax revenue from petroleum oil that would otherwise go to the General Revenue Fund be transferred to the Oil and Gas Division Revolving Fund instead.

The Corporation Commission Plugging Fund maintenance level was changed from $5,000,000 to a variable amount that must be maintained until July 1, 2026, with additional excise taxes imposed if the fund falls below this level.

House Committee Substitute → Floor (House) · 4 edits

MODERATE

The bill was amended to change the effective dates for several provisions, specifically updating the sunset dates for the Corporation Commission Plugging Fund and excise tax requirements from 2026 to 2031, and adjusting the start date for certain tax modifications from 2025 to 2026. These changes extend the timeline for the fund's maintenance and tax collection obligations.

Scope change

The bill's scope remains focused on the Corporation Commission Plugging Fund and oil and gas excise taxes, but the applicability timeline was extended for certain provisions.

TIMELINE

The sunset date for maintaining the Corporation Commission Plugging Fund at $5 million was changed from July 1, 2026 to July 1, 2031.

The termination date for the additional excise tax on oil and gas was changed from July 1, 2026 to July 1, 2031.

The start date for certain tax modifications was adjusted from July 1, 2025 to July 1, 2026.

TECHNICAL

The document header was updated to reflect the Floor (House) version of the bill instead of the Committee Substitute.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 3 edits

MINOR

The bill was amended to correct formatting errors and update the effective date for a fund maintenance requirement. The most significant substantive change is the extension of the plugging fund maintenance deadline from July 1, 2026 to July 1, 2031, giving the Corporation Commission more time to reach the required $5 million balance.

Scope change

The bill's scope remains focused on the Corporation Commission Plugging Fund and oil/gas excise tax apportionment, with no changes to eligibility or enforcement mechanisms.

TIMELINE

Extended the deadline for maintaining the Corporation Commission Plugging Fund at $5 million from July 1, 2026 to July 1, 2031.

TECHNICAL

Corrected formatting and page numbering throughout the document to conform to standard legislative format.

Updated the sponsor designation to include both House and Senate sponsors (Boles of the House and Green of the Senate).

Engrossed → Proposed Committee Substitute (full committee) 1 · 5 edits

MODERATE

The bill was completely rewritten by the House Oversight Committee, replacing the original version with a new committee substitute that retains the core purpose of creating a Corporation Commission Plugging Fund but modifies specific tax rates, sunset dates, and fund maintenance requirements. The committee version clarifies the fund structure and adjusts the timeline for when certain tax provisions expire.

Scope change

The bill's scope remains focused on the Corporation Commission Plugging Fund and related excise taxes, but the committee version introduces a new sunset date of July 1, 2031 (changed from 2026) and modifies the maintenance level trigger for additional excise taxes.

TIMELINE

The sunset date for the additional excise tax requirement was changed from July 1, 2026 to July 1, 2031, extending the period during which the tax must be maintained at the required level.

FISCAL

The maintenance level for the Corporation Commission Plugging Fund remains at $5,000,000, but the trigger date for notifying the Tax Commission when the fund falls below this level was updated to align with the new sunset date.

TECHNICAL

The committee version corrected a date inconsistency in the original bill where Section 1103 referenced July 1, 2025 instead of July 1, 2026, and standardized all date references throughout the bill.

Added committee amendment header information including the committee name (Oversight Committee), sponsor name (Brad Boles), and adoption date (2/25/2025) to document the legislative process.

Removed the original bill's title page formatting and replaced it with the committee substitute's standard format, including page headers and amendment tracking information.

Introduced → Engrossed · 4 edits · Mar 5, 2025

MODERATE

This bill modifies Oklahoma's Corporation Commission Plugging Fund by extending its sunset date from 2026 to 2031, adjusting the excise tax termination date from 2026 to 2031, and adding a new provision that allows unexpended Interstate Oil Compact Fund money to be used for paying the assistant representative's compensation. The changes extend the timeline for maintaining the plugging fund and provide additional funding flexibility for the Interstate Oil Compact Commission.

Scope change

The bill's scope expanded to include additional funding sources and extended the operational timeline for the Corporation Commission Plugging Fund by five years.

TIMELINE

Extended the Corporation Commission Plugging Fund sunset date from July 1, 2026 to July 1, 2031, allowing the fund to continue operating for five additional years.

Extended the excise tax termination date from July 1, 2026 to July 1, 2031, aligning the tax collection period with the extended fund sunset date.

FISCAL

Added new language allowing unexpended Interstate Oil Compact Fund money to be appropriated for paying the compensation of the assistant representative of Oklahoma on the Interstate Oil Compact Commission.

TECHNICAL

Changed the effective date reference in Section 1103 from July 1, 2026 to July 1, 2025, which appears to be a correction to align with the legislative session timing.

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.

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