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


Office of House Bill AnalysisH.B. 3159
By: Oliveira
Ways & Means
4/1/1999
Introduced



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, Subtitle E, Tax Code, to include, in
the list of items exempt from diesel fuel tax, diesel fuel sold by a
permitted supplier to the owner of a vehicle designed to transport more
than 15 passengers, including the driver, when such diesel fuel is used in
the transportation of passengers in intercity scheduled bus service in
Texas. 

SECTION 2.  Amends Section 153.222, Tax Code, to authorize the owner of a
vehicle designed to transport more than 15 passengers, including the
driver, who has passed [sic] the diesel fuel tax on diesel fuel used by the
owner in the transportation of passengers in intercity scheduled bus
services in Texas to file a claim for a refund of taxes paid, less the
deduction allowed vendors and a filing fee. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.