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.