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TX HB5105
Bill
Status
3/13/2025
Primary Sponsor
Jon Rosenthal
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AI Summary
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Requires payors of oil or gas well production proceeds to send written notice to payees within 30 days when payments are suspended, explaining in reasonable detail the reason for the suspension
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Exempts suspensions made under Section 91.402(f) from the notification requirement
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Imposes an interest penalty on payors who fail to provide timely notice, calculated at two percentage points above the New York Federal Reserve Bank's rate for loans to depository institutions
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Interest accrues from the 31st day after payment suspension until the payee receives notice, unless a different rate is specified by written agreement between the parties
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Applies only to payment suspensions occurring on or after September 1, 2025; prior suspensions remain governed by existing law
Legislative Description
Relating to the imposition on a payor of proceeds of production from an oil or gas well of a duty to notify a payee when payments to the payee are suspended.
Financial
Last Action
Left pending in committee
4/14/2025