88R21654 JAM-F
 
  By: Canales H.B. No. 3418
 
  Substitute the following for H.B. No. 3418:
 
  By:  Ordaz C.S.H.B. No. 3418
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the implementation by the Texas Department of
  Transportation of a vehicle mileage user fee pilot program and a
  task force to assist in developing and evaluating the program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 201, Transportation Code, is amended by
  adding Subchapter Z to read as follows:
  SUBCHAPTER Z. VEHICLE MILEAGE USER FEE PILOT PROGRAM
         Sec. 201.2101.  DEFINITIONS. In this subchapter:
               (1)  "Motor fuel taxes" means the motor fuel taxes
  imposed under Chapter 162, Tax Code.
               (2)  "Pilot program" means the vehicle mileage user fee
  pilot program.
               (3)  "Task force" means the vehicle mileage user fee
  task force.
         Sec. 201.2102.  TASK FORCE. (a)  The vehicle mileage user
  fee task force is established to guide the development and
  evaluation of the vehicle mileage user fee pilot program to assess
  the potential for mileage-based revenue as an alternative to the
  current system of taxing highway use through motor fuel taxes.
         (b)  The task force shall consist of seven members appointed
  as follows:
               (1)  one member appointed by the lieutenant governor;
               (2)  one member appointed by the speaker of the house of
  representatives;
               (3)  one member appointed by the chair of the standing
  committee of the house of representatives having primary
  jurisdiction over transportation;
               (4)  one member appointed by the chair of the standing
  committee of the senate having primary jurisdiction over
  transportation; and
               (5)  three members that represent the trucking
  industry, appointed by the governor.
         (c)  The task force shall:
               (1)  conduct at least three public hearings to gather
  public comment on issues and concerns related to the pilot program;
               (2)  make recommendations to the department on the
  design and on the criteria to be used to evaluate the pilot program
  and other alternative approaches to motor fuel taxes; and
               (3)  evaluate the pilot program.
         (d)  In conducting hearings under Subsection (c)(1), the
  task force shall:
               (1)  provide notice:
                     (A)  in the manner provided by Chapter 551,
  Government Code; and
                     (B)  on the department's Internet website; and
               (2)  provide interested persons with an opportunity to
  submit their opinions orally and in writing.
         (e)  The department may create and maintain an Internet
  website to allow members of the public to submit comments
  electronically.
         (f)  On request, the department shall assist the task force
  in implementing this subchapter.
         Sec. 201.2103.  PILOT PROGRAM. (a)  The department, in
  consultation with the Texas Department of Motor Vehicles and the
  Texas A&M Transportation Institute, shall develop and implement a
  statewide pilot program to assess a user fee on owners of motor
  vehicles that is based on the number of miles traveled on public
  highways in this state by those vehicles.
         (b)  The pilot program must:
               (1)  include not more than 800 motor vehicles, the
  mileage of which will be measured by a variety of
  vehicle-mileage-counting strategies, including odometer readings,
  administered in a manner the department considers appropriate;
               (2)  test the reliability, ease of use, cost, and
  public acceptance of technology and methods for:
                     (A)  counting the number of miles traveled by
  motor vehicles;
                     (B)  reporting the number of miles traveled by
  particular vehicles; and
                     (C)  collecting payments from participants in the
  pilot program;
               (3)  analyze and evaluate the ability of different
  technologies and methods to:
                     (A)  protect the integrity of data collected and
  reported;
                     (B)  ensure operators' privacy; and
                     (C)  vary pricing based on the time of driving and
  type of public highway; and
               (4)  evaluate:
                     (A)  the enforceability of the vehicle mileage
  user fee and opportunities for operators to evade or manipulate the
  fee; and
                     (B)  the impact of the vehicle mileage user fee on
  equity.
         (c)  The department shall ensure that participants in the
  pilot program:
               (1)  are included only on a voluntary basis; and
               (2)  represent a variety of motor vehicle operators,
  including operators of passenger vehicles, commercial motor
  vehicles, and electric vehicles.
         (d)  The pilot program may not last less than one year.
         Sec. 201.2104.  COMPENSATION OF PARTICIPANTS. The
  department by rule shall establish a process to ensure that
  participants in the pilot program are not required to spend more on
  fees or taxes associated with road usage than if they had not
  participated in the program. A process adopted under this section
  may include a refund of motor fuel taxes paid by the participant or
  other compensation.
         Sec. 201.2105.  CONFIDENTIALITY OF INFORMATION.
  Identifying information about participants in the pilot program is
  confidential and is not subject to disclosure under Chapter 552,
  Government Code.
         Sec. 201.2106.  REPORT. Not later than September 1, 2026,
  the department shall submit to the legislature a report summarizing
  the results of the pilot program, including:
               (1)  the feasibility of permanently assessing a vehicle
  mileage user fee;
               (2)  an evaluation of the impacts of a vehicle mileage
  user fee on the economy, the environment, and traffic congestion;
               (3)  a comparison to other alternative approaches or
  supplements to motor fuel taxes; and
               (4)  the department's recommendations together with
  suggested legislation necessary to implement the recommendations.
         Sec. 201.2107.  APPLICATION FOR FEDERAL FUNDING. The
  department shall submit an application to the United States
  Department of Transportation for funding in federal fiscal year
  2023 for the Surface Transportation System Funding Alternatives
  Program established in the Fixing America's Surface Transportation
  Act (Pub. L. No. 114-94) to help fund the pilot program.  If the
  application is not successful, the department shall apply in each
  federal fiscal year in which grants are made available for
  demonstration projects under this federal program or until the
  application results in full or partial funding for a vehicle
  mileage user fee pilot program, whichever first occurs.
         Sec. 201.2108.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires November 1, 2026.
         SECTION 2.  This Act takes effect September 1, 2023.