Author: Nancy Pellow
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ENGROSSED SENATE
BILL NO. 2019	By:	Shortey of the Senate

			and

		Bennett of the House

[ investigations - Oklahoma State Bureau of Investigation and oil, gas and oil field equipment theft authority - modifying powers and duties of the Bureau - codification - effective date ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     74 O.S. 2011, Section 150.2, is amended to read as follows:
Section 150.2.  The Oklahoma State Bureau of Investigation shall have the power and duty to:
1.  Maintain a nationally accredited scientific laboratory to assist all law enforcement agencies in the discovery and detection of criminal activity;
2.  Maintain fingerprint and other identification files including criminal history records, juvenile identification files, and DNA profiles;
3.  Establish, coordinate and maintain the automated fingerprinting identification system (AFIS) and the deoxyribonucleic acid (DNA) laboratory;
4.  Operate teletype, mobile and fixed radio or other communications systems;
5.  Conduct schools and training programs for the agents, peace officers, and technicians of this state charged with the enforcement of law and order and the investigation and detection of crime;
6.  Assist the Director of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Chief Medical Examiner, and all law enforcement officers and district attorneys when such assistance is requested, in accordance with the policy determined by the Oklahoma State Bureau of Investigation Commission established in Section 150.3 of this title;
7.  Investigate and detect criminal activity when directed to do so by the Governor;
8.  Investigate, detect, institute and maintain actions involving vehicle theft pursuant to Section 150.7a of this title ~~or~~;
9.  Investigate, detect, apprehend, institute and maintain actions independently or jointly with the Department of Public Safety involving larceny or theft of oil, gas or oil field equipment ~~theft~~ pursuant to ~~Sections~~ Section 150.13 and Section 152.2 ~~through 152.9~~ et seq. of this title;
~~9.~~ 10.  Investigate any criminal threat made to the physical safety of elected or appointed officials of this state or any political subdivision of the state and forward the results of that investigation to the Department of Public Safety, and provide security to foreign elected or appointed officials while they are in this state on official business;
~~10.~~ 11.  Investigate and detect violations of the Oklahoma Computer Crimes Act; and
~~11.~~ 12.  Investigate and enforce all laws relating to any crime listed as an exception to the definition of "nonviolent offense" as set forth in section 571 of Title 57 of the Oklahoma Statutes that occur on the turnpikes.
SECTION 2.     AMENDATORY     74 O.S. 2011, Section 150.13, is amended to read as follows:
Section 150.13.  A.  The Director of the Oklahoma State Bureau of Investigation is hereby authorized to appoint, with the approval of the Commission, not to exceed twenty (20) special officers, who shall not be salaried employees of the Bureau of Investigation but who shall at all times be subject to the orders and directions of the Director; provided ~~that~~ the special officers shall not have authority to enforce any laws except the provisions of the Oklahoma Statutes relating to larceny of domestic animals, livestock or farm and ranch equipment or supplies, with respect to which ~~they~~ each officer shall have the same authority as any other peace officer.  These officers shall be known as rangers.
B.  The Director of the Oklahoma State Bureau of Investigation, with the approval of the Commission, or the Commissioner of Public Safety is hereby authorized to appoint, not to exceed twenty (20) special officers, who shall not be salaried employees of the Bureau or Department of Public Safety but who shall at all times be subject to the orders and directions of their appointing authority; provided, the special officers shall not have authority to enforce any laws except the provisions of the Oklahoma Statutes relating to larceny or theft of oil, gas, or oil field equipment, with respect to which each officer shall have the same authority as any other peace officer.  These special officers shall be known as oil and gas investigators.
C.  Rangers and oil and gas investigators shall not receive any compensation or expenses from the State of Oklahoma or any of its departments, agencies or subdivisions for their services.  Before the issuance of a special commission each ranger or oil and gas investigator shall enter into a good and sufficient bond executed by a surety company authorized to do business in the State of Oklahoma in the sum of Five Hundred Thousand Dollars ($500,000.00), and approved by ~~the Director~~ their appointing authority, to indemnify all persons against damages accruing as a result of any illegal or unlawful acts on the part of ~~the~~ such rangers or oil and gas investigator; provided ~~that~~ all special commissions shall expire on January 1 of the odd-numbered year after the appointment.  The ~~Director~~ special commission may ~~renew, suspend or revoke any special commission~~ be renewed, suspended or revoked at any time by the appointing authority.
SECTION 3.     AMENDATORY     74 O.S. 2011, Section 152.2, is amended to read as follows:
Section 152.2.  For purposes of Section 152.2 et seq. of this ~~act~~ title:
1.  "Broker" means every person whose primary business is buying, selling, or otherwise dealing in used materials as agent for the seller of the used materials, or as agent for the buyer of the used materials, or as agent for both;
2.  "Bureau" means the Oklahoma State Bureau of Investigation;
3.  "Dealer" means every person whose primary business is buying, selling, or otherwise dealing in used materials and who has a fixed, designated place or places of business within this state;
4.  "Department" means the Department of Public Safety;
5.  "Director" means the Director of the Oklahoma State Bureau of Investigation;
~~5.~~ 6.  "Gas" means natural gas, including casinghead gas, and any and all other hydrocarbons not defined as oil;
~~6.~~ 7.  "Load ticket" means an invoice or other shipping paper described and required by Section 1013 of Title 68 of the Oklahoma Statutes or other manifest required by state or federal law describing the cargo;
~~7.~~ 8.  "Oil" means crude petroleum oil, and any other liquid hydrocarbons, regardless of gravity, which are produced at the well in liquid form by ordinary production methods;
~~8.~~ 9.  "Oil field equipment" means equipment, machinery or materials that are part of or incident to drilling, well servicing, exploration, development, maintenance, production, transportation and operation of oil and gas properties and includes equipment and materials that are part of or incident to the construction, maintenance and operation of oil and gas wells, oil and gas leases, gasoline plants and refineries;
~~9.~~ 10.  "Oil reclaimer" means any person who reclaims, salvages, or in any manner removes or extracts oil from the waste products associated with the production, storage, and transportation of oil, including but not limited to salt water, and the residue from oil storage tank bottoms;
~~10.~~ 11.  "Peddler" means every person who is not a dealer or broker and whose primary business is buying, selling, or otherwise dealing in used materials;
~~11.~~ 12.  "Person" means any individual, copartnership, corporation, common law or statutory trust or association of whatever character;
~~12.~~ 13.  "Pipeline equipment" means all pipes, fitting, pumps, telephone and telegraph lines, and all other material and equipment used as part of or incident to the construction, maintenance and operation of a pipeline for the transportation of oil, gas, water, or other liquid or gaseous substance;
~~13.~~ 14.  "Transportation" or "transport" means the movement of oil or gas or salt water by any vehicle in this state.  The term does not include movement by railroad tank car or by pipeline.  The term transportation or transport shall not apply to the transportation of oil or gas when such oil or gas is contained in the ordinary equipment of a motor vehicle and is used only for the operation of the motor vehicle in which contained;
~~14.~~ 15.  "Transporter" means any person who actually transports oil or gas or salt water in any vehicle on any road, street, or highway in this state;
~~15.~~ 16.  "Unlawful gas" means gas transported or taken in violation of any law of this state;
~~16.~~ 17.  "Unlawful oil" means any oil transported or taken in violation of any law of this state;
~~17.~~ 18.  "Used materials" means pipeline equipment or oil field equipment after the equipment has once been placed in the use for which it first was manufactured and intended; and
~~18.~~ 19.  "Vehicle" means every device upon or in which any person or property is or may be transported or drawn.
SECTION 4.     AMENDATORY     74 O.S. 2011, Section 152.3, is amended to read as follows:
Section 152.3.  In addition to the other powers and duties of the Oklahoma State Bureau of Investigation or the Commissioner of Public Safety provided by law, the Bureau and Commissioner, and their commissioned special officers, shall have the power and duty to:
1.  Review records from any oil reclaimer to ensure that oil is not stolen;
2.  To enter upon any public or private property to conduct inspections at reasonable hours to ensure that any operation of an oil reclaiming facility is not a conduit for unlawful oil and for the purpose of investigating oil or gas theft operations and to take necessary action if any operation is found to be a conduit for stolen oil or gas;
3.  Advise, consult, and cooperate with other agencies of this state, the federal government, other states and interstate agencies, and with affected groups and political subdivisions concerning oil reclaiming operations, the transportation of unlawful oil and unlawful gas and stolen oil field equipment;
4.  Institute and maintain or intervene in any action or proceeding where deemed necessary ~~by the Bureau~~ to ensure that any operation of an oil reclaiming facility is not a conduit for unlawful oil or for the purpose of prosecuting persons involved in oil field equipment theft;
5.  Conduct investigations of organized oil or gas theft rings and stolen oil field equipment rings;
6.  Determine sources and outlets for unlawful oil or unlawful gas or stolen oil field equipment;
7.  Stop any vehicle transporting or appearing to transport any oil, gas or salt water, for the purpose of inspecting, measuring, and taking samples of the cargo and inspecting load tickets to ensure that such vehicle is not transporting unlawful gas or unlawful oil;
8.  Stop any vehicle transporting or appearing to transport any oil field equipment, for the purpose of inspecting the cargo being transported and to inspect bills of lading to ensure that the vehicle is not transporting stolen oil field equipment;
9.  Investigate any theft of oil or gas or oil field equipment of which the ~~agency~~ Bureau or Department receives notice;
10.  Arrest or cause the arrest of any person when reasonable grounds exist to believe such person is in possession of unlawful oil, unlawful gas or stolen oil field equipment;
11.  ~~Coordinate the~~ Develop state efforts ~~of this state~~ to reduce oil, gas and oil field equipment theft with ~~local, state, and federal~~ other law enforcement agencies;
12.  Develop educational programs on detection and prevention of oil, gas and oil field equipment theft; ~~and~~
13.  Exercise all incidental powers necessary and proper for the administration ~~and enforcement of the provisions of this act~~, investigation, detection, apprehension and prosecution of persons or entities involved in oil, gas or oil field equipment larceny or theft; and
14.  Impose administrative fines or investigative fines not exceeding Ten Thousand Dollars ($10,000.00) per violation, which shall be in addition to any criminal fine imposed for a crime of oil, gas or oil field equipment larceny or theft.
SECTION 5.     AMENDATORY     74 O.S. 2011, Section 152.4, is amended to read as follows:
Section 152.4.  The Director of the Oklahoma State Bureau of Investigation, the Commissioner of Public Safety, duly appointed and commissioned oil and gas investigators, and any ~~other agent of the Bureau~~ special officer duly appointed and commissioned by the Bureau or Commissioner shall have the right at all times to go upon property where oil is being reclaimed in order to inspect, gauge, or take samples from pipelines, tank farms, pump stations, and any and all other facilities used for the reclamation of oil.
SECTION 6.     AMENDATORY     74 O.S. 2011, Section 152.5, as amended by Section 837, Chapter 304, O.S.L. 2012 (74 O.S. Supp. 2013, Section 152.5), is amended to read as follows:
Section 152.5.  A.  All monies received from administrative fines and forfeitures for violations of the provisions of Section 152.2 et seq. of this ~~act~~ title on behalf of the Oklahoma State Bureau of Investigation or the Department of Public Safety, when collected by the court clerk, shall be deposited by such clerk as follows:
1.  Fifty percent (50%) thereof with the county treasurer to be credited to the general fund of the county and so reported; and
2.  Fifty percent (50%) shall be transmitted to the Oil and Gas Theft Recovery Fund by cash voucher and so reported.
Provided, however, the court clerk is authorized to retain five percent (5%) of any administrative fine collected, which shall be deducted before division and deposit of the remaining amount collected.
B.  All transmittals of monies under this section shall be accompanied by a report showing the name of the court, the number of the case, the style of the case and the amount of administrative and criminal fine and forfeiture in each separate instance.
C.  The transmittal of monies by court case number, court name, and style of case shall govern whether the monies are to be credited to the OSBI Oil and Gas Theft Recovery Revolving Fund or the DPS Oil and Gas Theft Recovery Revolving Fund or divided between the two agency funds as determined by the style of the case.
D.  There is hereby created in the State Treasury a revolving fund for the Bureau, to be designated the "OSBI Oil and Gas Theft Recovery Revolving Fund".  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Bureau, from administrative fines and forfeitures received pursuant to Section 152.2 et seq. of this ~~act~~ title.  All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and expended by the Bureau for the purpose of effectuating the provisions of Section 152.2 et seq. of this ~~act~~ title.  Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment.
SECTION 7.     AMENDATORY     74 O.S. 2011, Section 152.6, is amended to read as follows:
Section 152.6.  A.  Each agent of the Oklahoma State Bureau of Investigation, each agent of the Federal Bureau of Investigation, each highway patrolman, each oil and gas investigator, each sheriff and each state-certified peace officer in this state is authorized to stop any vehicle transporting or appearing to transport oil, gas or salt water, for the purpose of inspecting, measuring, and taking samples of the cargo and inspecting the load ticket of such vehicle to ensure that the cargo conforms to such load ticket.  Except as authorized in subsection C of this section, upon stopping any vehicle pursuant to this section, such patrolmen, agents, oil and gas investigators, sheriffs or peace officers are not authorized to take any samples of the cargo of such vehicle until the vehicle arrives at its destination as indicated on its load ticket.
B.  Each agent of the Oklahoma State Bureau of Investigation, each agent of the Federal Bureau of Investigation, each highway patrolman, each oil and gas investigator, each sheriff and each state-certified peace officer in this state is authorized to stop any vehicle transporting or appearing to transport oil field equipment, for the purpose of inspecting the cargo and inspecting the bill of lading of the vehicle to ensure that the cargo conforms to the bill of lading.
C.  Such patrolmen, agents, oil and gas investigators, sheriffs or peace officers may take samples of the cargo of such vehicle if the vehicle has an out-of-state destination as indicated on its load ticket or if no destination is indicated on the load ticket.
D.  A rebuttable presumption that the cargo is unlawful oil or unlawful gas and probable cause for the arrest of any person transporting oil, gas or salt water and the seizure of the vehicle and the oil or gas transported in the vehicle pursuant to Section 152.8 of this title shall be established if:
1.  The person transporting oil or gas or salt water fails to produce the load ticket upon proper request therefor;
2.  The load ticket does not contain such information so as to describe or otherwise evidence the cargo as required by state or federal laws; or
3.  The inspection, measuring, or taking samples of said oil or gas or salt water reveals that the contents of the vehicle are not the same as those described in the load ticket.
SECTION 8.     AMENDATORY     74 O.S. 2011, Section 152.7, is amended to read as follows:
Section 152.7.  A.  Each person transporting oil or gas or salt water in this state who:
1.  Willfully and knowingly fails to stop his or her vehicle when commanded to do so by any person authorized to stop and inspect a vehicle pursuant to Section ~~5~~ 152.6 of this ~~act~~ title; or
2.  Willfully fails to permit inspection by such authorized person of the contents of the vehicle or the load ticket in the possession of such person or accompanying such vehicle,
upon conviction, shall be punished by a fine of not less than One Thousand Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00), or by imprisonment in the county jail for ~~not more than~~ a term not exceeding six (6) months, or by both such fine and imprisonment.
B.  ~~Any monies received from fines pursuant to this section shall be deposited pursuant to Section 4 of this act~~ The Oklahoma State Bureau of Investigation and the Department of Public Safety, whichever was the investigative agency, or both, may assess an administrative or investigative fine in the same amount as the court ordered fine.  The administrative or investigative fine may be collected by the court clerk who shall be authorized to retain five percent (5%) of the amount collected and shall transmit the balance to the appropriate agency fund.
SECTION 9.     AMENDATORY     74 O.S. 2011, Section 152.8, is amended to read as follows:
Section 152.8.  A.  The transportation of all unlawful oil or unlawful gas is hereby declared to be a public nuisance and such unlawful gas or unlawful oil shall be forfeited to the state.  Except as provided by this section and Section ~~8~~ 152.9 of this ~~act~~ title all vehicles being used to transport ~~said~~ the unlawful oil or unlawful gas shall also be forfeited to the state.
B.  Except as authorized by subsection C of this section, all property taken or detained under this section by any authorized person shall not be repleviable, and shall be deemed to be in the custody of the office of the district attorney of the county in which such property was seized, subject only to the decree of a court of competent jurisdiction.  If sufficient evidence exists, as determined by the district attorney, that any oil or gas seized is unlawful oil or unlawful gas or that any vehicle seized was used to transport such unlawful oil or unlawful gas, ~~said~~ the district attorney shall follow the procedures provided in Section ~~8~~ 152.9 of this ~~act~~ title dealing with notification of seizure, intent and forfeiture, final disposition procedures, and release to innocent claimants with regard to all property seized by such authorized persons.  If sufficient evidence does not exist, as determined by the district attorney, that any oil or gas seized is unlawful oil or unlawful gas or that any vehicle seized was used to transport such unlawful oil or unlawful gas, the district attorney may release such oil or gas or vehicle but shall notify any appropriate state or federal agency of any possible permit or license violations.
C.  1.  The owner of a vehicle, upon submission of a written statement, under oath, to the office of the district attorney of the county in which ~~said~~ the property was seized stating that such owner had no knowledge of the unlawfulness of the oil or gas or that the oil or gas became unlawful without his or her knowledge after the creation of his or her interest or that the vehicle was being used for the purpose charged without his or her knowledge, and upon execution of a lien pursuant to this subsection and entry of the lien on the certificate of title, shall be entitled to recover the possession of the vehicle prior to the commencement of the action.
2.  The office of the district attorney of the county in which property was seized shall have a lien upon any vehicle seized pursuant to this section.  If the title to the vehicle is not with the person from whom such vehicle was seized, the person having title shall be given notice within five (5) days of such seizure and of the opportunity to recover the vehicle pursuant to this subsection.  The lien on such vehicle shall be preferred to all other liens or encumbrances which may attach to or upon such vehicle.
3.  The office of the district attorney claiming the lien within ten (10) days of seizure of the vehicle shall file in the office of the county clerk of the county in which such property was seized a statement verified by affidavit setting forth:
a.	the registration number of the seized vehicle~~;~~,
b.	the name of the person having title to said vehicle~~;~~, and
c.	a description of the vehicle including its value.
In addition, the office of the district attorney claiming the lien shall provide for the entry of the lien on the certificate of title pursuant to the Motor Vehicle Title Act.  Such statement shall be filed and the lien recorded on the certificate of title prior to the recovery of the vehicle by the owner pursuant to this subsection.
4.  Any person having title to the seized vehicle on which a lien is claimed pursuant to this subsection may at any time discharge the lien by depositing with the county clerk of the county in which property was seized a corporate surety bond made payable to the state in an amount not less than the value of the vehicle seized.  Within three (3) business days after the deposit of bond is made, the county clerk shall serve upon the office of the district attorney claiming the lien, written notice setting forth:
a.	the number of the lien claim~~;~~,
b.	the name of the vehicle owner~~;~~,
c.	the property description shown on the lien claim~~;~~,
d.	the names of the principal and surety~~;~~, and
e.	the bond penalty.
The party seeking to discharge the lien shall prepare and deliver the notice to the county clerk of the county in which the property was seized and pay a fee of Five Dollars ($5.00) to cover the cost of filing and mailing.  An abbreviated notice may be used if the same refers to and encloses a copy of the lien claim and a copy of the bond with the clerk's filing stamp thereon.  The notice shall be mailed by registered or certified mail at the option of the county clerk.
If a bond is deposited, the district attorney shall have five (5) days after the notice is mailed within which to file a written objection with the county clerk of said county.  If a written objection is not timely made, the county clerk shall immediately show the lien released of record.  If an objection is timely made, the county clerk shall set a hearing within five (5) days thereafter and notify by ordinary mail both the office of the district attorney and the party making the deposit of the date and time thereof.  The only grounds for objection shall be that:  The surety is not authorized to transact business in this state; the bond is not properly signed; the amount is less than the value of the vehicle seized; the power of attorney of the surety's attorney-in-fact does not authorize the execution; there is no power of attorney attached if the bond is executed by anyone other than the surety's president and attested by its secretary; or a cease and desist order has been issued against the surety either by the Insurance Commissioner or a court of competent jurisdiction.  Within two (2) business days following the hearing the county clerk shall either sustain or overrule the objections and notify the parties of his ruling by ordinary mail.  If the objections are sustained, the ruling of the county clerk shall be conclusive for lien release purposes unless appealed within ten (10) days to the district court.  If the objections are overruled, the county clerk shall immediately show the lien released of record.
The bond shall:  Name the office of the district attorney in which the property was seized as obligee and the party seeking the release as principal; be executed by both the principal and the surety; have a proper power of attorney attached if executed by an attorney-in-fact; be executed by a corporate surety authorized to transact business in this state; and be conditioned that the principal and surety will pay the full amount of the claim as established in any appropriate court proceeding, plus any court costs, but in no event shall the liability of the principal or surety under the bond exceed the bond penalty.  The conditions of any bond filed pursuant to this section shall be deemed to comply with the requirements hereof, regardless of the language or limitations set forth therein, if both the principal and surety intend that the bond be filed to secure a lien release under this section.
The bond shall stand in lieu of the released lien.  The bond shall stand liable for such principal, interest, and court costs.  The bond principal and surety are necessary parties to an action against the substituted security, and by filing a bond the parties subject themselves to personal jurisdiction in the court where the action is properly filed and may be served with process as in other cases.
5.  If the district attorney fails to file a forfeiture proceeding pursuant to Section ~~8~~ 152.9 of this ~~act~~ title, upon application of the party filing the bond and the payment of a fee of Ten Dollars ($10.00), the county clerk shall appropriately note on the bond that the same has been released.  The clerk shall not incur liability to any lien claimant for the release of a bond in good faith.
6.  Upon conviction of the owner of the vehicle for violating ~~the provisions~~ any provision of Section 152.2 et seq. of this ~~act~~ title, the vehicle so seized upon which a lien has been filed pursuant to this subsection or any bond posted for the discharge of the lien on such vehicle shall be forfeited to the state pursuant to forfeiture proceedings provided by Section ~~8~~ 152.9 of this ~~act~~ title.
7.  Upon the acquittal of such person charged with violating the provisions of this section or upon the dismissal with prejudice of said charge against such person or it is shown that the owner of such vehicle was not knowledgeable concerning the illegal use of his or her vehicle, the lien on the vehicle shall be immediately discharged in accordance with procedures for the discharge of liens, or the bond posted shall be returned to the person posting such bond.
SECTION 10.     AMENDATORY     74 O.S. 2011, Section 152.9, is amended to read as follows:
Section 152.9.  A.  Any person authorized to stop and inspect a vehicle pursuant to Section 152.6 of this title shall seize any unlawful oil or unlawful gas and shall seize any vehicle or trailer which is being used to transport such unlawful oil or unlawful gas.  Except as authorized by Section 152.8 of this title, such property shall be held as evidence until a forfeiture has been declared or a release ordered.
B.  Notice of seizure and intended forfeiture proceeding shall be filed in the office of the clerk of the district court for the county in which such unlawful oil or unlawful gas and vehicle or trailer is seized and shall be given all owners and parties in interest.
C.  Notice shall be given to:
1.  The Oklahoma Tax Commission Gross Production Division;
2.  Each owner or party in interest whose rights, title, or interest is of record in the Oklahoma Tax Commission, by mailing a copy of the notice by certified mail to the address as given upon the records of the Oklahoma Tax Commission;
3.  Each owner or party in interest whose name and address is known, by mailing a copy of the notice by registered mail to the last-known address; and
4.  All other owners, whose addresses are unknown, but who are believed to have an interest in the unlawful oil or unlawful gas, vehicle or trailer, by one publication in a newspaper of general circulation in the county where the seizure was made.
D.  Within sixty (60) days after the mailing or publication of the notice, the owner of the unlawful oil or unlawful gas, vehicle or trailer and any other party in interest or claimant may file a verified answer and claim to the unlawful oil or unlawful gas, vehicle or trailer described in the notice of seizure and of the intended forfeiture proceeding.
E.  If at the end of sixty (60) days after the notice has been mailed or published there is no verified answer on file, the court shall hear evidence upon the fact of the unlawful use and shall order the unlawful oil or unlawful gas, vehicle or trailer forfeited to the state, if such fact is proved.
F.  If a verified answer is filed, the forfeiture proceeding shall be set for hearing.
G.  At the hearing, the state shall prove beyond a reasonable doubt by competent evidence that the oil or gas seized is unlawful oil or unlawful gas and that any vehicle or trailer seized was being used to transport the unlawful oil or unlawful gas.
H.  The claimant of any right, title, or interest in the unlawful oil, unlawful gas, vehicle or trailer may prove that the lien mortgage or conditional sales contract of the claimant is bona fide and that such right, title, or interest was created without any knowledge of the unlawfulness of the oil or gas or that the oil or gas became unlawful without the knowledge of the claimant after the creation of  the interest of the claimant, or that the vehicle or trailer was being used for the purpose charged without the knowledge of the claimant.
I.  In the event of such proof, the court shall order the unlawful oil or unlawful gas, vehicle or trailer released to the bona fide or innocent owner, lien holder, mortgagee, or vendor if the amount due the person is equal to, or in excess of, the value of the unlawful oil or unlawful gas, vehicle or trailer as of the date of the seizure.
J.  If the amount due to such person is less than the value of the unlawful oil or unlawful gas, vehicle or trailer or if no bona fide claim is established, the unlawful oil or unlawful gas, vehicle, trailer or bond shall be forfeited to the state and the unlawful oil or unlawful gas, vehicle or trailer shall be sold under judgment of the court, as on sale upon execution.
K.  The proceeds of the sale of any unlawful oil or unlawful gas, vehicle, trailer or bond shall be distributed as follows, in the order indicated:
1.  All gross production and petroleum excise taxes due to the Oklahoma Tax Commission;
2.  To the bona fide innocent purchaser, conditional sales vendor, or mortgagee of the unlawful gas or unlawful oil, vehicle or trailer, if any, up to the amount of the interest of the person in the unlawful gas or unlawful oil, vehicle or trailer, when the court declaring the forfeiture orders a distribution to such person;
3.  To the payment of the actual expenses of preserving the property;
4.  The remainder of ~~such~~ the proceeds shall be remitted by the court clerk forthwith as follows:
a.	fifty percent (50%) thereof with the county treasurer to be credited to the general fund of the county and so reported, and
b.	fifty percent (50%) shall be transmitted to the State Treasurer and shall be placed to the credit of the agency bringing the action or on whose behalf the action is brought; and
5.  The sheriff executing the sale shall issue a bill of sale or certificate to the purchaser of the oil or gas and the Tax Commission, upon the presentation of the certificate of clearance, shall issue a license, if a license is required, permitting the purchaser of the oil or gas to move the same into commerce.
L.  If the court finds that oil or gas seized is not unlawful, the court shall order the oil or gas released to the owner and shall order any vehicle or trailer used to transport the oil and gas released to the owner as the right, title, or interest of the owner appears on the record of the ~~Oklahoma~~ Tax Commission as of the date of the seizure.
SECTION 11.     AMENDATORY     74 O.S. 2011, Section 152.10, as amended by Section 4, Chapter 153, O.S.L. 2012 (74 O.S. Supp. 2013, Section 152.10), is amended to read as follows:
Section 152.10.  The Oklahoma State Bureau of Investigation, subject to the availability of funds, shall be granted an additional two full-time-equivalent employees to be employed for the purpose of conducting oil field theft and fraud investigations ~~except in cases of emergency~~.
SECTION 12.     AMENDATORY     74 O.S. 2011, Section 152.11, is amended to read as follows:
Section 152.11.  A.  Before purchasing or acquiring pipeline equipment, oil field equipment or used oil or gas materials, a dealer, broker, or peddler shall require that a bill of sale or invoice for the used oil or gas materials be executed by the seller or the person who acquires the pipeline equipment, oil field equipment or used oil or gas materials.  The dealer, broker, or peddler shall keep a copy of each bill of sale or invoice at the place of business of the dealer, broker or peddler.
B.  The bill of sale or invoice shall include:
1.  The name and address of the dealer, broker, or peddler;
2.  The serial or other identifying number of the pipeline equipment, oil field equipment or used oil or gas materials, if available;
3.  The kind, make, size, weight, length, and quantity of the pipeline equipment, oil field equipment or used oil or gas materials purchased or acquired;
4.  The date of the purchase or acquisition, if different from the date of the bill of sale or invoice;
5.  The name and address of the seller; and
6.  The legal description and well name or physical address of the property at the time purchased or acquired.
C.  A dealer, broker or peddler shall keep at the place of business of the dealer, broker or peddler all records required to be kept pursuant to this section for two (2) years after the date of the purchase or acquisition of the materials.
D.  A person, dealer, peddler or broker who violates the provisions of this section shall, upon conviction, be punished by a fine of not less than Five Hundred Dollars ($500.00) for each violation.  In addition, an administrative or investigative fine shall be imposed by the investigating agency, which shall be in the same amount as the fine imposed upon conviction.
SECTION 13.     AMENDATORY     74 O.S. 2011, Section 152.12, is amended to read as follows:
Section 152.12.  A.  Any agent of the Oklahoma State Bureau of Investigation, any agent of the Federal Bureau of Investigation, any commissioned officer of the Department of Public Safety, any duly appointed and commissioned oil and gas investigator, and each sheriff in this state may enter the business premises of a dealer, broker or peddler during normal business hours to inspect the premises and the records of the dealer, broker or peddler to determine whether the dealer, broker or peddler is in compliance with the requirements provided in Section ~~6~~ 152.7 of this ~~act~~ title.
B.  A dealer, broker or peddler must allow and shall not interfere with inspections conducted pursuant to this section.
C.  Each inspection conducted under this section shall be commenced and completed with reasonable promptness and shall be
conducted in a reasonable manner.
D.  Failure of any dealer, broker or peddler to permit the entry and inspection of records during normal business hours shall be punishable, upon conviction, by a fine of not less than Five Hundred Dollars ($500.00) per day when entry or inspection is denied.  In addition, an administrative or investigative fine shall be imposed by the investigating agency, which shall be in the same amount as the fine imposed upon conviction.
SECTION 14.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 108.4 of Title 47, unless there is created a duplication in numbering, reads as follows:
A.  The Commissioner of Public Safety is hereby vested with the power to commission and appoint special investigators to be known as "oil and gas investigators" pursuant to the authority of Section 150.13 of Title 74 of the Oklahoma Statutes, which special officers shall investigate, detect, apprehend, institute and maintain actions involving larceny and theft of oil, gas or oil field equipment pursuant to Section 152.2 et seq. of Title 74 of the Oklahoma Statutes.  When exercising such power to appoint and commission oil and gas investigators, the Commissioner shall advise the Director of the Oklahoma State Bureau of Investigation of the names and qualifications of each commissioned special investigator and disclose the jurisdiction where primary investigative activities may be or are being conducted, unless such disclosure would jeopardize an investigation.  The Commissioner shall have the authority, duty and responsibility to coordinate investigations of larceny and theft of oil, gas and oil field equipment within this state and between all state and local agencies, and other state and federal law enforcement agencies.
B.  There is hereby created in the State Treasury a revolving fund for the Department of Public Safety, to be designated the "DPS Oil and Gas Theft Recovery Revolving Fund".  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Department, from administrative fines and forfeitures received pursuant to Section 152.2 et seq. of Title 74 of the Oklahoma Statutes.  All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and expended by the Department for the purpose of effectuating the provisions of Section 152.2 et seq. of Title 74 of the Oklahoma Statutes.  Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment.
SECTION 15.  This act shall become effective November 1, 2014.
Passed the Senate the 12th day of March, 2014.

	
	Presiding Officer of the Senate

Passed the House of Representatives the ____ day of __________, 2014.

	
	Presiding Officer of the House
	of Representatives

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ENGR. S. B. NO. 2019	Page