SRC-ARR S.B. 792 76(R)BILL ANALYSIS


Senate Research CenterS.B. 792
By: Nixon
Natural Resources
6/29/1999
Enrolled


DIGEST 

Currently, in Texas there is some question as to whether companies that pay
the proceeds from the sale of gas are required to provide certain
information that would be useful to the payee for payment of federal taxes.
Many companies already provide this information, but placing this
requirement clearly in state law will assure all such payees have access to
this information. S.B. 792 will require certain payors of proceeds from the
sale of gas to provide certain information to the payee. 

PURPOSE

As enrolled, S.B. 792 requires a payor of the proceeds from the sale of gas
produced from certain gas wells to furnish certain information to the
payee.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 91J, Natural Resources Code, by adding Section
91.408, as follows: 

Sec. 91.408. INFORMATION FOR PAYEES OF PROCEEDS OF PRODUCTION FROM CERTAIN
GAS WELLS. Requires a payor of the proceeds from the sale of gas produced
from a tight formation as defined by Section 29(c)(2)(B), Internal Revenue
Code of 1986, annually to furnish the payee a statement providing the
information necessary to compute the federal income tax credit provided by
that section for the gas for which payment was made in the preceding year,
including certain items.  

SECTION 2. Requires such statement as described in Section 91.408, Naturel
Resources Code as added by this Act to be furnished no later than the 15th
day of March.  

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.