BILL ANALYSIS

C.S.H.B. 2686

By: Dean

Transportation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that commercial truck drivers of oilfield services companies currently must renew a registration and sticker for frac tanks every year but that tracking down frac tanks to replace a renewal sticker can be a time-consuming and inefficient process for companies. C.S.H.B. 2686 seeks to streamline the registration process for frac tanks by issuing a distinguished license plate that does not expire or require annual registration. In doing so, the bill aims to reduce unnecessary administrative tasks, simplify the registration process, and provide oil and gas business operators with the same benefits offered to other token trailers.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2686 amends the Transportation Code to require the Texas Department of Motor Vehicles to issue a distinguishing license plate for a frac tank that does not expire or require an annual registration insignia to be valid. The bill authorizes the alphanumeric pattern for such a license plate to remain on a frac tank for as long as the license plate for the frac tank is renewed or until the frac tank is removed from service or sold. The bill exempts a frac tank that displays a license plate issued under the bill's provisions from the statutory requirement that certain heavy vehicles carry a copy of the vehicle's registration receipt when the vehicle is on a public highway for presentation to an applicable officer on request. The bill establishes that the fee for such a license plate is $5, which must be deposited to the credit of the Texas Department of Motor Vehicles fund.

C.S.H.B. 2686 defines "frac tank" as a portable or stationary high-volume holding vessel designed and constructed for use in separating, storing, or temporarily holding materials used in or resulting from fracturing techniques in oil and gas exploration.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2686 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes a provision absent from the introduced establishing that the fee for the license plate established by the bill is $5 and requiring that fee to be deposited to the credit of the Texas Department of Motor Vehicles fund.