Currently, moneys in the local government severance tax fund are primarily used for 2 purposes:

• For the executive director of the department of local affairsto provide grants and loans to political subdivisions impacted by development, processing, or energy conversion of minerals and mineral fuels; and
• For direct distributions to counties and municipalities basedon factors related to oil and gas production. 

The bill prohibits any local government that restricts or delays the ability of an oil and gas producer to exercise the producer's property right as a lessee or owner to extract oil and gas from receiving any grants or direct distributions from the local government severance tax fund.