HBA-JRA H.B. 1552 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1552
By: Craddick
Ways & Means
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

There are several pooled or unitized mineral interests with production
sites located in multiple counties.  Accordingly, their property values are
set by multiple appraisal districts.  Prior to the 76th Legislature, annual
appraisal district board hearings to determine property values were set
without regard to the percentage of surface area in a pooled or unitized
mineral interest that is located in any particular county.  This may result
in an appraisal district for a county in which a small percentage of
surface area in a given pooled or unitized mineral interest is located
determining the property values for the entire mineral interest if that
district's hearing is set first.  H.B. 1552 provides that, in the event of
a protest being filed relating to a pooled or unitized mineral interest,
the appraisal district for the county in which at least two-thirds of the
surface area is located must hold its hearing first. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 41, Tax Code, by adding Section
41.455, as follows: 

Sec. 41.455.  POOLED OR UNITIZED MINERAL INTERESTS.  (a)  Provides that, if
a property owner files protests relating to a pooled or unitized mineral
interest that is being produced at one or more production sites located in
a single county with the appraisal review boards of more than one appraisal
district, the appraisal review board established for a county in which the
production site or sites are located must determine the protest filed with
that board and make its decision before another appraisal review board may
hold a hearing to determine the protest filed with that other board. 

(b)  Provides that, if a property owner files protests relating to a pooled
or unitized mineral interest that is being produced at two or more
production sites located in more than one county with the appraisal review
boards of more than one appraisal district and at least two-thirds of the
surface area of the mineral interest is located in the county for which one
of the appraisal districts is established, the appraisal review board
established for that county must determine the protest filed with that
board and make its decision before another appraisal review board may hold
a hearing to determine the protest filed with that other board. 

(c)  Provides that a protest determined by an appraisal review board in
violation of this section is void. 

SECTION 2.  Effective date:  January 1, 2000.
Makes application of this Act prospective.

SECTION 3.  Emergency clause.