1-1 By: Craddick (Senate Sponsor - Shelley) H.C.R. No. 125 1-2 (In the Senate - Received from the House May 23, 1993; 1-3 May 24, 1993, read first time and referred to Committee on Finance; 1-4 May 26, 1993, reported favorably by the following vote: Yeas 9, 1-5 Nays 0; May 26, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Montford x 1-9 Turner x 1-10 Armbrister x 1-11 Barrientos x 1-12 Bivins x 1-13 Ellis x 1-14 Haley x 1-15 Moncrief x 1-16 Parker x 1-17 Ratliff x 1-18 Sims x 1-19 Truan x 1-20 Zaffirini x 1-21 HOUSE CONCURRENT RESOLUTION 1-22 WHEREAS, The Clinton administration's budget proposal for 1-23 fiscal year 1994 includes a provision that would increase the 1-24 inland waterways fuel tax by $1 per gallon; and 1-25 WHEREAS, A raise in the inland waterways fuel tax from 19 1-26 cents to $1.19 per gallon would mean a 500-percent tax increase for 1-27 the approximately 800 barge and towing companies constituting the 1-28 United States inland water transportation industry; and 1-29 WHEREAS, This tax would be imposed on an industry that 1-30 employs 180,000 people nationwide and hauls 15 percent of the 1-31 nation's freight, 30 percent of the nation's petroleum and 1-32 petroleum products, one-fourth of all coal, and over half of the 1-33 nation's export grain; and 1-34 WHEREAS, Texas is the leading maritime state in the nation, 1-35 with 75 percent of Texas goods shipped by water and 20 percent of 1-36 the state's gross product linked to waterways; and 1-37 WHEREAS, If enacted by the United States Congress, the tax 1-38 would drastically increase prices on goods shipped through the 1-39 Houston Ship Channel and Gulf Intracoastal Waterway, creating 1-40 highly detrimental consequences for the Texas economy; and 1-41 WHEREAS, Because Texas petrochemical plants rely heavily on 1-42 barges to supply feedstock and to move finished products, a tax 1-43 increase of this magnitude would jeopardize the international 1-44 competitiveness of the state's refineries; and 1-45 WHEREAS, The proposed increase in the inland waterways fuel 1-46 tax would mean lost jobs for Texans, the elimination of spin-off 1-47 employment opportunities, and increased prices for consumers on 1-48 everything from livestock feed to petrochemical products; and 1-49 WHEREAS, In a nonbinding resolution, the United States Senate 1-50 recently voted to remove the inland waterways fuel tax from the 1-51 budget package, but the House of Representatives included the 1-52 provision in its adopted budget resolution; and 1-53 WHEREAS, The Texas inland barge and towing industry is the 1-54 most economical, safe, and efficient mode of surface transportation 1-55 available and is a vital component in helping Texas goods to be 1-56 competitive in today's global market; the administration's proposed 1-57 tax increase would impose an overly harsh burden on the economy of 1-58 Texas; now, therefore, be it 1-59 RESOLVED, That the 73rd Legislature of the State of Texas 1-60 hereby strongly urge the Congress of the United States not to adopt 1-61 the administration's proposed inland waterways fuel tax increase; 1-62 and, be it further 1-63 RESOLVED, That the Texas secretary of state forward official 1-64 copies of this resolution to the president of the United States, to 1-65 the speaker of the house of representatives and president of the 1-66 senate of the United States Congress, and to all members of the 1-67 Texas delegation to the congress with the request that this 1-68 resolution be officially entered in the Congressional Record as a 2-1 memorial to the Congress of the United States of America. 2-2 * * * * * 2-3 Austin, 2-4 Texas 2-5 May 26, 1993 2-6 Hon. Bob Bullock 2-7 President of the Senate 2-8 Sir: 2-9 We, your Committee on Finance to which was referred H.C.R. No. 125, 2-10 have had the same under consideration, and I am instructed to 2-11 report it back to the Senate with the recommendation that it do 2-12 pass and be printed. 2-13 Montford, 2-14 Chairman 2-15 * * * * * 2-16 WITNESSES 2-17 No witnesses appeared on H.C.R. No. 125.