HBA-JRA, RBT H.B. 2104 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2104 By: Craddick Ways & Means 7/22/1999 Enrolled BACKGROUND AND PURPOSE In the 75th Legislature, Section 202.056, Tax Code, was created to provide severance tax relief for wells which have been returned to active status after three years or more of inactivity. According to the Texas Railroad Commission (commission), the exemption has been responsible for a great number of wells being reworked and producing again. The application to apply for that program expires August 31, 1999. H.B. 2104 extends the application deadline to August 31, 2009. This bill also extends the deadline for the commission to designate a two-year inactive well to February 28, 2010. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 202.056(c) and (d), Tax Code, to prohibit the Railroad Commission of Texas from designating a two-year inactive well under this section after February 28, 2010, rather than February 29, 2000. Requires an application for two-year inactive well certification to be made between September 1, 1997, and August 31, 2009, rather than 1999, to qualify for the tax exemption under this section. SECTION 2. Emergency clause. Effective date: upon passage.