By Craddick                                           H.B. No. 2104
         76R6126 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a tax exemption for hydrocarbon production from certain
 1-3     inactive oil and gas leases returned to production.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 202.056(c) and (d), Tax Code, are
 1-6     amended to read as follows:
 1-7           (c)  If the commission designates a three-year inactive well
 1-8     under this section, it shall issue a certificate designating the
 1-9     well as a three-year inactive well as defined by Subsection (a)(3)
1-10     of this section.  The commission may not designate a three-year
1-11     inactive well under this section after February 29, 1996.  If the
1-12     commission designates a two-year inactive well under this section,
1-13     it shall issue a certificate designating the well as a two-year
1-14     inactive well as defined by Subsection (a)(4) of this section.  The
1-15     commission may not designate a two-year inactive well under this
1-16     section after February 28, 2002 [29, 2000].
1-17           (d)  An application for three-year inactive well
1-18     certification shall be made during the period of September 1, 1993,
1-19     through August 31, 1995, to qualify for the tax exemption under
1-20     this section.  An application for two-year inactive well
1-21     certification shall be made during the period September 1, 1997,
1-22     through August 31, 2001 [1999], to qualify for the tax exemption
1-23     under this section.  Hydrocarbons sold after the date of
1-24     certification  are eligible for the tax exemption.
 2-1           SECTION 2.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended,
 2-6     and that this Act take effect and be in force from and after its
 2-7     passage, and it is so enacted.