Amend CSHB 3454 (Senate committee report) as follows:
(1) Add the following SECTIONS to the bill and renumber the
subsequent SECTIONS of the bill accordingly:
SECTION ____. Sections 23.175(a) and (b), Tax Code, are
amended to read as follows:
(a) If a real property interest in oil or gas in place is
appraised by a method that takes into account the future income from
the sale of oil or gas to be produced from the interest, the method
must use the average price of the oil or gas from the interest for
the preceding calendar year multiplied by a market condition factor
as the price at which the oil or gas produced from the interest is
projected to be sold in the current year of the appraisal. The
average price for the preceding calendar year is calculated by
dividing the sum of the monthly average prices for which oil and gas
from the interest was selling during each month of the preceding
calendar year by 12. If there was no production of oil or gas from
the interest during any month of the preceding calendar year, the
average price for which similar oil and gas from comparable
interests was selling during that month is to be used. The
comptroller shall calculate the market condition factor by dividing
the [comptroller's] current calendar year statewide average price
for oil or gas, as applicable, as forecasted by the Oil and Gas
Valuation Advisory Committee using market-based data and a
market-based methodology and approved by the comptroller, [for
revenue estimating purposes] by the preceding calendar year actual
statewide average price for oil or gas, as applicable. [For
purposes of calculating the market condition factor, "price" means
the market value of oil or gas as determined under Subchapter C,
Chapter 201, or Section 202.053, as applicable.] The comptroller
shall calculate the preceding calendar year actual statewide
average prices for oil and gas and the market condition factors for
oil and gas and publish that information to be used for ad valorem
tax appraisal purposes concurrently with the current calendar year
statewide average prices for oil and gas forecasted using
market-based data and a market-based methodology [for revenue
estimating purposes]. The price for the interest used in the second
or a subsequent calendar year of the appraisal shall reflect the
[same] percentage rate increase or decrease in the price for oil or
gas, as applicable, as projected for that calendar year by the
comptroller using market-based data and a market-based
methodology. However, in no event may the price used in the second
or any succeeding year of an appraisal exceed 200 percent of the
price used in the current year of the appraisal [for revenue
estimating purposes].
(b) The comptroller by rule shall:
(1) establish procedures for performing the
calculations required by Subsection (a); and
(2) develop and distribute to each appraisal office
appraisal manuals that specify methods and procedures to discount
future income from the sale of oil or gas from the interest to
present value.
SECTION ____. Subchapter B, Chapter 23, Tax Code, is
amended by adding Section 23.176 to read as follows:
Sec. 23.176. OIL AND GAS VALUATION ADVISORY COMMITTEE. (a)
The Oil and Gas Valuation Advisory Committee is created. The
advisory committee is composed of:
(1) the comptroller, who serves as a nonvoting member
and as presiding officer of the committee;
(2) three members who are members of a county
commissioners court, appointed by the chief executive officer of
the County Judges and Commissioners Association of Texas;
(3) two members who are chief appraisers of an
appraisal district, appointed by the chief executive officer of the
Texas Association of Appraisal Districts;
(4) two members appointed by the chief executive
officer of the Texas Oil & Gas Association;
(5) two members appointed by the chief executive
officer of the Texas Independent Producers and Royalty Owners
Association; and
(6) one member appointed annually on a rotating basis
by the chief executive officer of the Texas Alliance of Energy
Producers, the chief executive officer of the Permian Basin
Petroleum Association, or the chief executive officer of the
Panhandle Producers & Royalty Owners Association.
(b) An appointed member of the advisory committee serves at
the will of the appointing entity.
(c) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(d) The advisory committee shall, by a vote of at least
two-thirds of the voting members, determine the current calendar
year statewide average price for oil or gas, as applicable,
forecasted using market-based data and a market-based methodology.
(e) The determination of the advisory committee may not
result in a current calendar year statewide average price for oil or
gas, as applicable, forecasted using market-based data and a
market-based methodology that deviates by more than 50 percent from
the preceding calendar year actual statewide average price for oil
or gas, as applicable, as calculated by the comptroller under
Section 23.175(a).
(f) The advisory committee shall notify the comptroller of
the committee's determination. The comptroller shall accept or
reject the advisory committee's determination. If the comptroller
rejects the advisory committee's determination, the comptroller
shall:
(1) immediately notify the advisory committee of the
comptroller's rejection of and reasons for rejecting the
determination; and
(2) direct the advisory committee to make a new
determination.
(g) A new determination by the advisory committee is subject
to Subsections (d), (e), and (f) in the same manner as an initial
determination.
(h) If the comptroller accepts the initial or a subsequent
determination of the advisory committee, the comptroller shall use
the current calendar year statewide average price for oil or gas, as
applicable, as determined by the advisory committee in performing
the calculations required by Section 23.175(a).
(i) The comptroller by rule shall establish procedures for
the functions of the advisory committee, including procedures
requiring the advisory committee to notify the comptroller of its
initial determination for each tax year not later than January 31 of
that year.
SECTION ____. The chief executive officers of the County
Judges and Commissioners Association of Texas, Texas Association of
Appraisal Districts, Texas Oil & Gas Association, Texas Independent
Producers and Royalty Owners Association, and Texas Alliance of
Energy Producers shall appoint the initial appointed members of the
Oil and Gas Valuation Advisory Committee created by Section 23.176,
Tax Code, as added by this Act, as soon as practicable on or after
September 1, 2009.
SECTION ____. The comptroller shall adopt rules under
Section 23.175(b), Tax Code, as amended by this Act, and Section
23.176(i), Tax Code, as added by this Act, not later than December
1, 2009.
(2) Strike SECTION 19 of the bill (page 5, line 35) and
substitute the following:
SECTION 19. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2010.
(b) Sections 23.175(a) and (b), Tax Code, as amended by this
Act, and Section 23.176, Tax Code, as added by this Act, take effect
September 1, 2009.