SWB S.B. 988 75(R)BILL ANALYSIS WAYS & MEANS S.B. 988 By: Brown (Holzheauser) 5-9-97 Committee Report (Amended) BACKGROUND Currently, crude oil production is reported for severance tax purposes at the county level. The current system of county-level data cannot capture the relationship between buyers and sellers, which leaves the State Comptroller's Office without a means to document the price paid for oil at the point of sale. Natural gas is reported at the individual lease level (the level at which all primary business records are kept). PURPOSE The bill requires records and reports from certain producers and purchasers of oil to be at the lease level. 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. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 202.201(a), Tax Code (Producer's Report), to require the report to be submitted to the comptroller by a producer to include the number of barrels of oil produced from each lease, the county in which each lease is located from which oil was produced, certain information on each first purchaser of oil and for each purchaser, the amount of oil purchased from each lease, the payment received for the oil from each first purchaser for each lease from which oil was produced, and the lease identification number of each lease from which oil was produced. Makes conforming changes. SECTION 2.Amends Section 202.202(a), Tax Code (First Purchaser's Report), to make conforming changes. SECTION 3. Effective date: September 1, 1997. SECTION 4. Emergency Clause. EXPLANATION OF AMENDMENTS Committee Amendment Number One changes the effective date of Act from September 1, 1997 to January 1, 1998 and provides that the effective date applies to a report due on or after that date.