Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Thompson                                     H.B. No. 2465

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to tax exemptions for motor vehicles propelled by

 1-3     liquefied gas or other clean burning alternative fuels.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended

 1-6     by adding Section 151.351 to read as follows:

 1-7           Sec. 151.351.  VEHICLE CONVERSION TO CLEAN-FUEL.  For four

 1-8     years after the effective date of this Act, the taxes imposed by

 1-9     this chapter do not apply to the sale of qualified clean-fuel

1-10     vehicle property, as defined in the Internal Revenue Code (26

1-11     U.S.C. Section 179A(c)), used to convert a vehicle, beginning with

1-12     vehicle model year 1996, so that such vehicle can be propelled by a

1-13     clean-burning fuel as defined in the Internal Revenue Code (26

1-14     U.S.C. Section 179A(e)), whether the applicable vehicle will be

1-15     propelled by a clean-burning fuel exclusively or interchangeably

1-16     with another motor fuel.

1-17           SECTION 2.  Subchapter E, Chapter 152, Tax Code, is amended

1-18     by adding Section 152.094 to read as follows:

1-19           Sec. 152.094.  CLEAN-FUEL PROPELLED MOTOR VEHICLES.  For four

1-20     years after the effective date of this Act, the retail sales tax

1-21     imposed by this chapter does not apply to qualified clean-fuel

1-22     vehicle property, as defined in the Internal Revenue Code (26

1-23     U.S.C. Section 179A(c)), and beginning with model year 1997,

1-24     whether the applicable vehicle will be propelled by a clean-burning

 2-1     fuel, as defined in the Internal Revenue Code (26 U.S.C. Section

 2-2     179A(e)), exclusively or interchangeably with another motor fuel.

 2-3           SECTION 3.  Subchapter D, Chapter 153, Tax Code, is amended

 2-4     by adding Section 153.3022 to read as follows:

 2-5           Sec. 153.3022.  TEMPORARY EXEMPTION.  For four years after

 2-6     the effective date of this Act, the tax imposed by this subchapter

 2-7     does not apply to any person using a liquefied gas-propelled

 2-8     vehicle, including a motor vehicle equipped to use liquefied gas

 2-9     interchangeably with another motor fuel, so long as the person

2-10     files an annual registration in accordance with this subchapter and

2-11     pays a registration fee of $10 per vehicle.

2-12           SECTION 4.  Subchapter D, Chapter 153, Section 153.303, Tax

2-13     Code, is amended to read as follows:

2-14           Sec. 153.303.  [PERMITS; APPLICATION; DISPLAY.  (a)  A dealer

2-15     who sells taxable liquefied gas, interstate trucker, liquefied gas

2-16     tax decal user, or a motor vehicle dealer's liquefied gas tax decal

2-17     permittee shall file an application with the comptroller for the

2-18     kind and class of a nonassignable permit required by this chapter.]

2-19     REGISTRATION.  (a)  The owner of a motor vehicle equipped to use

2-20     liquefied gas shall register the vehicle with the Comptroller.

2-21           (b)  [An application for a permit must be filed on a form

2-22     provided by the comptroller showing the kind and class of permit

2-23     desired,] The information to be provided to the Comptroller shall

2-24     include the following:

2-25                             (i)  the odometer reading of [a Class A

2-26     through F] the motor vehicle[,];

2-27                             (ii)  whether the vehicle is dedicated,

2-28     flexible-fueled or dual-fueled;

2-29                             (iii)  the certified emissions standard of

2-30     the motor vehicle, such a Transitional Low-Emission vehicle (TLEV),

 3-1     Low-Emission Vehicle (LEV), Ultra Low-Emission Vehicle (ULEV) or

 3-2     Inherently Low-Emission Vehicle (ILEV), if the vehicle complies

 3-3     with the Clean-Fuel Vehicle Emissions Standards under the Clean Air

 3-4     Act (42 U.S.C. Section 7583) or in rules promulgated by the

 3-5     Administrator of the U.S. Environmental Protection Agency (40 CFR

 3-6     Sec.  88.311-93; 40 CFR Sec. 88.94; 40 CFR Sec. 88.105-94); and

 3-7                             (iv)  other information required by the

 3-8     comptroller.

 3-9           [(c)  A permit shall be posted in a conspicuous place or kept

3-10     available for inspection at the principal place of business of the

3-11     owner.  A permit holder shall reproduce the permit and keep a copy

3-12     on display at each additional place of business from which

3-13     liquefied gas is sold, delivered, or used in motor vehicles.  A

3-14     person holding an interstate trucker's permit shall reproduce the

3-15     permit and carry a copy with each motor vehicle being operated into

3-16     or from Texas.  The liquefied gas tax decal user shall affix the

3-17     decal in the lower right-hand corner of the front windshield of the

3-18     passenger side of the vehicle.]

3-19           SECTION 5.  The change in the law made by this Act does not

3-20     affect taxes imposed before the effective date of this Act, and the

3-21     law in effect before the effective date of this Act is continued in

3-22     effect for purposes of the liability for and collection of those

3-23     taxes.

3-24           SECTION 6.  This Act takes effect September 1, 1997.

3-25           SECTION 7.  The importance of this legislation and the

3-26     crowded condition of the calendars in both houses create an

3-27     emergency and an imperative public necessity that the

3-28     constitutional rule requiring bills to be read on three several

3-29     days in each house be suspended, and this rule is hereby suspended.