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


Senate Research CenterC.S.S.B. 792
76R468 SMH-DBy: Nixon
Natural Resources
4/14/1999
Committee Report (Substituted)


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. C.S.S.B. 792 would require certain payors of proceeds
from the sale of gas to provide certain information to the payee. 

PURPOSE

As proposed, C.S.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 1 of this Act to
be furnished no later than the 15th day of March.  

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 91.408, Natural Resources Code, to require a payor of
certain proceeds to furnish the payee a statement providing the information
necessary to compute the federal income tax credit for the gas for which
payment was made in the preceding year, including certain items.  

SECTION 2. 

Adds the SECTION to require such statement as described in SECTION 1 of
this Act to be furnished no later than the 15th day of March.  

  Redesignates existing SECTIONS accordingly.