BILL ANALYSIS


                                                         H.B. 467
                                            By: Kuempel (Ratliff)
                                                          Finance
                                                         05-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, the use of electricity, natural gas and other fuels used
or consumed in the process of repairing, maintaining or restoring
rolling stock or locomotives is taxed under Chapter 151, Tax Code.
Since neighboring states do not tax these items, many industries
may look outside Texas for their repair work.

PURPOSE

As proposed, H.B. 467 provides that electricity, natural gas, and
other fuels used or consumed predominately in the repair,
maintenance, or restoration of rolling stock are exempt from the
taxes imposed by this chapter.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 151.331, Tax Code, as follows:

     Sec. 151.331. ROLLING STOCK; TRAIN FUEL AND SUPPLIES. (a)
     Created from existing text.
     
     (b) Provides that electricity, natural gas, and other fuels
       used or consumed predominately in the repair, maintenance,
       or restoration of rolling stock are exempt from the taxes
       imposed by this chapter.
       
       SECTION 2.   (a) Effective date: October 1, 1995.

     (b) Makes application of this Act prospective.
     
     SECTION 3.     Emergency clause.