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.