HBA-JRA, SEB, JRA H.B. 3159 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3159
By: Oliveira
Ways & Means
7/26/1999
Enrolled

BACKGROUND AND PURPOSE 

Currently, buses providing public transportation are partially exempt from
the federal diesel fuel tax and only school buses can file for state diesel
fuel tax refunds.  Airlines and railroads are subsidized by federal funds
and are completely exempt from state diesel fuel tax.  Bus operators are
currently facing increased costs, due to retrofitting required by the
Americans with Disabilities Act.  Without some form of state subsidy,
intercity bus service may be discontinued to some small towns and rural
areas.  H.B. 3159 exempts buses transporting passengers in intercity
scheduled bus service in Texas from the state diesel fuel tax. 

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 Section 153.203, Tax Code, to include, in the list of
items exempt from diesel fuel tax, diesel fuel sold by a permitted supplier
to a person other than a political subdivision who owns, controls,
operates, or manages a commercial motor vehicle designed to transport more
than 15 passengers.  Establishes that this exemption applies to diesel fuel
that is delivered exclusively into the supply tank of the commercial motor
vehicle and is used exclusively to transport passengers for compensation or
hire between points in this state on a fixed route or schedule.  Makes a
conforming change. 

SECTION 2.  Amends Section 153.222(a), Tax Code, to authorize a person to
file a claim for a refund of diesel fuel taxes paid, less the deduction
allowed vendors and a filing fee, if the person has paid tax on diesel fuel
used in a commercial motor vehicle designed to transport more than 15
passengers. 

SECTION 3. Amends Chapter 20, Transportation Code, by adding Section
20.002, as follows:  

Sec. 20.002.  SCHOOL FUND BENEFIT FEE ON DIESEL FUEL USED BY CERTAIN MOTOR
VEHICLES. Defines "commercial motor vehicle."  Makes this section
applicable to a person, other than a political subdivision, who owns,
controls, operates, or manages a commercial motor vehicle and is exempt
from the state diesel fuel tax.  Imposes a fee equal to 25 percent of the
diesel fuel tax rate to benefit the available school fund on a person for
the use of diesel fuel that is delivered exclusively into the fuel supply
tank of a commercial motor vehicle and used exclusively to transport
passengers for compensation or hire between points in this state on a fixed
route or schedule.  Requires the comptroller to prescribe the method for
collecting a fee imposed under this section and to deposit revenue received
from the fee to the credit of the available school fund. 

SECTION 4.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 5.  Emergency clause.