HBA-RBT H.B. 2104 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2104
By: Craddick
Ways & Means
3/31/1999
Introduced



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, 2001.  This bill also extends the
deadline for the commission to designate a two-year inactive well to
February 28, 2002.  

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, 2002, rather than February 29, 2000.
Requires an application for two-year inactive well certification to be made
between September 1, 1997, and August 31, 2001, rather than 1999, to
qualify for the tax exemption under this section. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.