By Cuellar H.B. No. 2567
76R7859 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to incentives for the use of clean-burning alternative
1-3 motor fuels and motor vehicles propelled by alternative motor
1-4 fuels.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
1-7 by adding Sections 151.333 and 151.3335 to read as follows:
1-8 Sec. 151.333. PROPERTY USED TO CONVERT MOTOR VEHICLE TO USE
1-9 CLEAN FUEL. (a) In this section:
1-10 (1) "Clean-burning fuel" has the meaning assigned by
1-11 Section 179A(e), Internal Revenue Code of 1986, as amended.
1-12 (2) "Qualified clean-fuel vehicle property" has the
1-13 meaning assigned by Section 179A(c), Internal Revenue Code of 1986,
1-14 as amended.
1-15 (b) The tax imposed by this chapter does not apply to the
1-16 sale of qualified clean-fuel vehicle property used to convert a
1-17 motor vehicle so that the vehicle can be propelled using a
1-18 clean-burning fuel either exclusively or interchangeably with
1-19 another motor fuel.
1-20 (c) This section applies only to the conversion of a motor
1-21 vehicle that was manufactured not earlier than the 1996 vehicle
1-22 model year.
1-23 (d) This section expires September 30, 2003.
1-24 Sec. 151.3335. CLEAN-FUEL VEHICLE REFUELING PROPERTY. (a)
2-1 In this section, "qualified clean-fuel vehicle refueling property"
2-2 has the meaning assigned by Section 179A(d), Internal Revenue Code
2-3 of 1986, as amended.
2-4 (b) The taxes imposed by this chapter do not apply to
2-5 qualified clean-fuel vehicle refueling property.
2-6 (c) This section expires September 30, 2004.
2-7 SECTION 2. Subchapter E, Chapter 152, Tax Code, is amended
2-8 by adding Section 152.094 to read as follows:
2-9 Sec. 152.094. MOTOR VEHICLES PROPELLED BY CLEAN-BURNING
2-10 FUEL. (a) In this section:
2-11 (1) "Clean-burning fuel" has the meaning assigned by
2-12 Section 179A(e), Internal Revenue Code of 1986, as amended.
2-13 (2) "Qualified clean-fuel vehicle property" has the
2-14 meaning assigned by Section 179A(c), Internal Revenue Code of 1986,
2-15 as amended.
2-16 (b) The tax imposed by this chapter does not apply to a
2-17 motor vehicle that is also qualified clean-fuel vehicle property
2-18 and that is propelled using a clean-burning fuel either exclusively
2-19 or interchangeably with another motor fuel.
2-20 (c) This section applies only to a motor vehicle that was
2-21 manufactured not earlier than the 1997 vehicle model year.
2-22 (d) This section expires September 30, 2003.
2-23 SECTION 3. Subchapter D, Chapter 153, Tax Code, is amended
2-24 by adding Sections 153.3022 and 153.3035 to read as follows:
2-25 Sec. 153.3022. TEMPORARY EXEMPTION. (a) Notwithstanding
2-26 any other provision of this chapter, the tax imposed by this
2-27 chapter does not apply to the sale or use of liquefied gas to
3-1 propel a motor vehicle on the public highways of this state if the
3-2 person registers under Section 153.3035 and pays the fee required
3-3 by that section.
3-4 (b) This section applies regardless of whether the person
3-5 owning the motor vehicle described by Subsection (a) would
3-6 otherwise pay the tax directly to a dealer or through the purchase
3-7 of a liquefied gas tax decal permit.
3-8 (c) This section expires September 30, 2003.
3-9 Sec. 153.3035. REGISTRATION FOR TEMPORARY EXEMPTION. (a) A
3-10 person who owns a motor vehicle equipped to use liquefied gas must
3-11 register that motor vehicle with the comptroller in accordance with
3-12 this section to be eligible for the temporary exemption provided by
3-13 Section 153.3022.
3-14 (b) The comptroller shall charge a $10 fee for each motor
3-15 vehicle registered under this section.
3-16 (c) The person registering a motor vehicle must include the
3-17 following information with the registration:
3-18 (1) the odometer reading of the motor vehicle;
3-19 (2) whether the vehicle is a dedicated,
3-20 flexible-fueled, or dual-fueled motor vehicle;
3-21 (3) the certified emissions standard of the motor
3-22 vehicle, such as transitional low-emission vehicle (TLEV),
3-23 low-emission vehicle (LEV), ultra low-emission vehicle (ULEV),
3-24 inherently low-emission vehicle (ILEV), or zero emission vehicle
3-25 (ZEV);
3-26 (4) whether the vehicle complies with the clean-fuel
3-27 emissions standards under the Clean Air Act (42 U.S.C. Section
4-1 7583), as amended, or under rules adopted by the Administrator of
4-2 the United States Environmental Protection Agency (40 C.F.R.
4-3 Sections 88.311-93 and 88.105-94), as amended; and
4-4 (5) any other information required by the comptroller.
4-5 (d) A person who registers under this section is not
4-6 required to obtain any permit otherwise required by this subchapter
4-7 or to submit any report otherwise required by this subchapter.
4-8 (e) This section expires September 30, 2003.
4-9 SECTION 4. Subchapter D, Chapter 502, Transportation Code,
4-10 is amended by adding Section 502.1735 to read as follows:
4-11 Sec. 502.1735. OPTIONAL COUNTY FEE FOR ALTERNATIVE FUEL
4-12 PROJECTS. (a) In this section, "alternative fuel" has the meaning
4-13 assigned by Section 301, Energy Policy Act of 1992 (42 U.S.C.
4-14 Section 13211).
4-15 (b) The commissioners court of a county may impose by order
4-16 an additional fee of not more than $2 for registering a vehicle in
4-17 the county.
4-18 (c) A vehicle that may be registered under this chapter
4-19 without payment of a registration fee may be registered in a county
4-20 imposing a fee under this section without payment of the additional
4-21 fee.
4-22 (d) A fee imposed under this section may take effect only on
4-23 January 1 of a year. The county must adopt the order and notify
4-24 the department not later than September 1 of the year preceding the
4-25 year in which the fee takes effect.
4-26 (e) A fee imposed under this section may be removed. The
4-27 removal may take effect only on January 1 of a year. A county may
5-1 remove the fee only by:
5-2 (1) rescinding the order imposing the fee; and
5-3 (2) notifying the department not later than September
5-4 1 of the year preceding the year in which the removal takes effect.
5-5 (f) The county assessor-collector of a county imposing a fee
5-6 under this section shall collect the additional fee for a vehicle
5-7 when other fees imposed under this chapter are collected.
5-8 (g) A county imposing a fee under this section may deduct
5-9 for administrative costs an amount of not more than five percent of
5-10 the revenue it receives from the fee. After making the deductions
5-11 provided for by this subsection, the county shall deposit the
5-12 remainder of the fee revenue in a separate fund in the county
5-13 treasury to be administered by the commissioners court.
5-14 (h) A county may use the revenue in the separate fund only
5-15 to provide competitive grants to support the development of
5-16 projects, technology, and infrastructure related to the use of
5-17 alternative motor fuels and alternative fueled vehicles, including
5-18 the conversion or purchase of alternative fueled vehicles.
5-19 (i) The commissioners court shall adopt rules and develop
5-20 forms necessary to administer this section not later than the 90th
5-21 day after the date on which the court adopts an order imposing the
5-22 fee.
5-23 SECTION 5. (a) This Act takes effect October 1, 1999.
5-24 (b) The change in law made by this Act does not affect taxes
5-25 imposed before the effective date of this Act, and the law in
5-26 effect before that date is continued in effect for purposes of the
5-27 liability for and collection of those taxes.
6-1 SECTION 6. The importance of this legislation and the
6-2 crowded condition of the calendars in both houses create an
6-3 emergency and an imperative public necessity that the
6-4 constitutional rule requiring bills to be read on three several
6-5 days in each house be suspended, and this rule is hereby suspended.