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.