By Telford                                            H.B. No. 3082
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the collection of motor fuel tax; providing penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 153.001, Tax Code is amended to read as
 1-5     follows:
 1-6                 (19)  "Motor fuel" includes gasoline, diesel fuel,
 1-7     liquefied gas, and other products that are offered for sale, sold,
 1-8     or used [usable] as propellants of a motor vehicle.
 1-9                 (28)  "Export" means to deliver motor fuel to a point
1-10     outside this state. Motor fuel delivered outside this state by or
1-11     for the seller constitutes an export by the seller.  Motor fuel
1-12     delivered outside this state by or for the purchaser constitutes an
1-13     export by the purchaser.
1-14                 (29)  "Import" means to deliver motor fuel to a point
1-15     inside this state from a point outside this state.  Motor fuel
1-16     delivered into this state from outside this state by or for the
1-17     seller constitutes an import by the seller. Motor fuel delivered
1-18     into this state from outside this state by or for the purchaser
1-19     constitutes an import by the purchaser.
1-20                 (30)  "Bulk lot vehicle" means transport tank trucks,
1-21     and tank wagons with a capacity of at least 1,000 gallons.
 2-1                 (31)  "Dyed diesel fuel" means any diesel fuel dyed
 2-2     pursuant to regulations issued by the Internal Revenue Service or a
 2-3     rule promulgated by the comptroller.
 2-4                 (33)  "Undyed diesel fuel" means any diesel fuel that
 2-5     has no detectable presence of dye.
 2-6                 (34)  "Blended fuel" is a product produced by a
 2-7     blending process other than a de minimis amount of a product such
 2-8     as a carburetor detergent or oxidation inhibitor that can be used
 2-9     as a fuel in a highway vehicle.
2-10                 (35)  "Blending" means to mix together one or more
2-11     products with other products to produce a resultant product offered
2-12     for use as a motor fuel, except such blending as may occur during
2-13     the refining process by the original refiner of crude petroleum.
2-14     The commingling of products during transportation in a pipeline is
2-15     not considered blending.
2-16                 (36)  "Shipping document" means a delivery document
2-17     issued by a terminal or bulk plant operator in conjunction with the
2-18     sale of motor fuel from a terminal or bulk plant.
2-19           SECTION 2.  Section 153.010, Tax Code, is amended to read as
2-20     follows:
2-21           In order to enforce the provisions of this chapter, the
2-22     comptroller or a peace officer may stop a motor vehicle that
2-23     appears to be operating with or transporting motor fuel in order to
2-24     examine the shipping document, cargo manifest or invoices required
2-25     to be carried, examine a permit or copy of a permit that may be
 3-1     required to be carried, take samples from the fuel supply or cargo
 3-2     tanks, and make any other investigation that could reasonably be
 3-3     made to determine whether the taxes have been paid or accounted for
 3-4     by a distributor, supplier, dealer, user, jobber, or any person to
 3-5     be so permitted.  The comptroller, a peace officer, an employee of
 3-6     the attorney general's office, an employee of the Texas Natural
 3-7     Resource Conservation Commission, or an employee of the Department
 3-8     of Agriculture may take samples of motor fuel from any storage tank
 3-9     or container to determine whether the taxes have been paid or
3-10     accounted for.
3-11           SECTION 3.  Section 153.403, Tax Code, is amended to read as
3-12     follows:
3-13                 (19)  transports motor fuel for which a cargo manifest
3-14     or shipping document is required to be carried without possessing
3-15     or exhibiting on demand by an officer authorized to make the demand
3-16     a cargo manifest or shipping document containing the information
3-17     required to be shown on the manifest;
3-18                 (21)  is a distributor, supplier, user, dealer,
3-19     interstate trucker, aviation fuel dealer, or other person required
3-20     to hold a permit under this chapter, or the agent or employee of
3-21     one of those persons and makes a false entry or fails to make an
3-22     entry in the books and records under this chapter to be made by the
3-23     person, or fails to retain a document as required under this
3-24     chapter;
3-25                 (22)  transports in any manner motor fuel under a false
 4-1     cargo manifest or shipping document, or transports in any manner
 4-2     motor fuel to any location and does not at the same time deliver at
 4-3     that location a shipping document relating to that shipment;
 4-4                 (32)  is a dealer who purchases any motor fuel tax free
 4-5     when not authorized to make a tax-free purchase under this chapter,
 4-6     or who accepts a delivery of motor fuel by any means and does not
 4-7     at the same time accept or receive shipping documents relating to
 4-8     that delivery;
 4-9                 (34)  imports, sells, uses, distributes, or stores
4-10     motor fuel within this state upon which the taxes imposed by this
4-11     chapter are owed but have not been first paid to or reported by the
4-12     holder of a valid, un-revoked distributor's permit, supplier's
4-13     permit, jobber's permit, or aviation fuel dealer's permit.
4-14                 (35)  blends products together to produce a blended
4-15     product which expands the volume of the original product in order
4-16     to evade paying applicable motor fuel taxes.
4-17                 (36)  evades or attempts to evade in any manner a tax
4-18     imposed upon motor fuel by this chapter.
4-19           SECTION 4.  Tax Code, Title 2, Subtitle E. Sales, Excise and
4-20     Use Taxes, Chapter 153. Motor Fuel Taxes, Subchapter A is amended
4-21     to read as follows:
4-22           Sec. 153.018.  IMPORTATION AND EXPORTATION OF MOTOR FUEL.
4-23     (a)  No person or business entity shall import motor fuel into this
4-24     state or export motor fuel from this state in a bulk lot vehicle to
4-25     a destination unless the person or business entity possesses a
 5-1     shipping document created by a terminal or bulk plant where the
 5-2     bulk lot vehicle received the fuel.  The terminal or bulk plant
 5-3     shall provide the shipping document to the operator of the bulk lot
 5-4     vehicle and the document must contain all of the following:
 5-5                 (1)  The name and physical address of the terminal or
 5-6     bulk plant from which the motor fuel was received for import or
 5-7     export;
 5-8                 (2)  The name of the carrier transporting the motor
 5-9     fuel;
5-10                 (3)  The date the motor fuel was loaded;
5-11                 (4)  The type of motor fuel and the number of gallons
5-12     in temperature adjusted gallons if purchased from a terminal for
5-13     export or import.  If fuel is purchased from a bulk plant for
5-14     export or import the number of gallons exported or imported may be
5-15     expressed in gross gallons;
5-16                 (5)  If delivery is to only one state, the destination
5-17     of the motor fuel as represented by the purchaser of the motor fuel
5-18     and the number of gallons of the fuel to be delivered.  If delivery
5-19     is to more than one state, the split loads delivered to each state
5-20     from the bulk lot vehicle shall be documented by the terminal by
5-21     issuing shipping documents that list the destination state of each
5-22     portion of the motor fuel;
5-23                 (6)  The name, federal employee identification number,
5-24     permit number, and physical address of the purchaser of the motor
5-25     fuel;
 6-1                 (7)  The name of the person or business entity
 6-2     responsible for the payment of motor fuel excise tax, as given to
 6-3     the terminal by the purchaser if different from the permitted
 6-4     supplier or distributor; and
 6-5                 (8)  Any other information that, in the opinion of the
 6-6     comptroller, is necessary for the proper administration of this
 6-7     chapter.
 6-8           (b)  A terminal, a bulk plant, the carrier, the permitted
 6-9     distributor or supplier, and the person that received the motor
6-10     fuel shall retain a copy of the shipping document for a period of
6-11     four years after the date of receipt of the fuel and shall provide
6-12     within 10 working days after receiving a request, a copy of the
6-13     document to the comptroller or any other law enforcement officer.
6-14           (c)  While transporting motor fuel imported into this state
6-15     or exported from this state, each operator of a bulk lot vehicle
6-16     shall have in its possession the shipping document issued by the
6-17     terminal or bulk plant.  The operator shall show the document to
6-18     the comptroller or a peace officer upon request.  The comptroller
6-19     may delegate authority to inspect the document to other
6-20     governmental agencies.  The operator shall provide a copy of the
6-21     shipping document to the person that receives the fuel when it is
6-22     delivered.
6-23           (d)  The operator of the bulk lot vehicle shall deliver motor
6-24     fuel only to the destination state or states as indicated on the
6-25     shipping document.
 7-1           (e)  Each terminal shall post a notice describing the duties
 7-2     of operators of bulk lot vehicles under this section.  The notice
 7-3     shall be posted in a conspicuous location proximate to the point of
 7-4     receipt of shipping papers by operators of bulk lot vehicles.  The
 7-5     comptroller may prescribe the language, type, style, and format of
 7-6     the notice.
 7-7           (f)(1)  Any operator of a bulk lot vehicle that violates any
 7-8     requirement of this section is subject to a penalty of two thousand
 7-9     dollars or five times the amount of the unpaid tax, whichever is
7-10     greater, for each violation.
7-11                 (2)  Any person or business entity receiving motor fuel
7-12     who accepts a shipping document that does not conform with
7-13     subsection (a)  of this section is subject to a penalty of two
7-14     thousand dollars or five times the amount of the unpaid tax,
7-15     whichever is greater, for each occurrence.
7-16                 (3)  Any person or business entity operating a bulk
7-17     plant or terminal who issues a shipping document that does not
7-18     conform with subsection (a)  of this section is subject to a
7-19     penalty of two thousand dollars or five times the amount of the
7-20     unpaid tax, whichever is greater, for each occurrence.
7-21                 (4)  Any person operating a terminal or bulk plant who
7-22     does not post notice as required under subsection (f) of this
7-23     section is subject to a penalty of one hundred dollars for each day
7-24     the notice is not posted as required by that division.
7-25           SECTION 5.  Section 153.006, Tax Code, is amended by adding a
 8-1     new subsection (e) to read as follows:
 8-2           (e)  The comptroller may revoke a distributor or supplier
 8-3     permit in the following circumstances:
 8-4                 (1)  A distributor or supplier purchases, for export,
 8-5     motor fuel in this state exclusive of the motor fuel tax, and
 8-6     subsequently diverts or causes the motor fuel to be diverted to a
 8-7     destination in this state or any other state other than the
 8-8     originally designated state.
 8-9           SECTION 6.  Section 153.117 (a), Tax Code is amended to read
8-10     as follows:
8-11           (a)  A distributor shall keep a record showing the number of
8-12     gallons of:
8-13                 (1)  all gasoline inventories on hand at the first of
8-14     each month;
8-15                 (2)  all gasoline refined, compounded, or blended;
8-16                 (3)  all gasoline purchased or received, showing the
8-17     name of the seller and date of each purchase or receipt;
8-18                 (4)  all gasoline sold, distributed, or used, showing
8-19     the name of the purchaser and the date of the sale or use; [and]
8-20                 (5)  all gasoline lost by fire or accident;
8-21                 (6)  an itemized statement showing by load the number
8-22     of gallons of all gasoline received during the preceding calendar
8-23     month for export, the location of the loading, and the destination
8-24     of each load;
8-25                 (7)  an itemized statement showing by load the number
 9-1     of gallons of all gasoline exported from the state; and
 9-2                 (8)  an itemized statement showing by load the number
 9-3     of gallons of all gasoline imported during the preceding calendar
 9-4     month;
 9-5           SECTION 7.  Section 153.219 (a), Tax Code, is amended to read
 9-6     as follows:
 9-7           (a)  A supplier shall keep a record showing the number of
 9-8     gallons of:
 9-9                 (1)  all diesel fuel inventories on hand at the first
9-10     of each month;
9-11                 (2)  all diesel fuel refined, compounded, or blended;
9-12                 (3)  all diesel fuel purchased or received, showing the
9-13     name of the seller and the date of each purchase or receipt;
9-14                 (4)  all diesel fuel sold, distributed, or used for
9-15     which tax was paid, showing the name of each [the] purchaser and
9-16     the date of the sale or use; [and]
9-17                 (5)  all diesel fuel lost by fire or accident;
9-18                 (6)  an itemized statement showing by load the number
9-19     of gallons of all diesel fuel received during the preceding
9-20     calendar month for export;
9-21                 (7)  an itemized statement showing by load the number
9-22     of gallons of all diesel fuel exported from the state;
9-23                 (8)  an itemized statement showing by load the number
9-24     of gallons of all diesel fuel imported during the preceding
9-25     calendar month;
 10-1                (9)  an itemized statement showing by purchaser,
 10-2    end-user number, or agricultural user exemption number, the number
 10-3    of gallons of dyed and undyed diesel fuel sold tax-free to a
 10-4    purchaser utilizing a signed statement in accordance with Section
 10-5    153.205, Tax Code.  The statement shall differentiate between dyed
 10-6    and undyed fuel.
 10-7                (10)  an itemized statement showing by purchaser, end
 10-8    user number, or agricultural user exemption number the number of
 10-9    gallons of dyed diesel fuel sold tax free to bonded purchasers.
10-10          SECTION 8.  Section 153.112 (a), Tax Code, is amended to read
10-11    as follows:
10-12          (a)  A distributor's permit is permanent and is valid so long
10-13    as the permittee has in force and effect the required bond or
10-14    security and furnishes timely reports and supplements as required,
10-15    or until the permit is surrendered by the holder or canceled by the
10-16    comptroller.  The comptroller shall [may] cancel a distributor's
10-17    permit if no purchase, sale, or use of gasoline has been reported
10-18    by the distributor for the prior 9 [12] months.
10-19          SECTION 9.  Section 153.118, Tax Code, is amended to read as
10-20    follows:
10-21          (a)  On or before the 25th day of each month, a distributor
10-22    or other person liable to the state for payment of tax under
10-23    Section 153.105 (a) shall file all reports and supplements as
10-24    required by the comptroller, and remit the amount of tax required
10-25    to be collected during the preceding month.  The report shall be
 11-1    executed by the distributor, his representative, or any other
 11-2    person required to report and shall be filed with the comptroller
 11-3    in a manner or on a form provided or approved by the comptroller,
 11-4    containing complete and detailed information not inconsistent with
 11-5    the requirements of this chapter of gasoline transactions.  A
 11-6    distributor required to file a report under this section who has
 11-7    not sold or used any gasoline during the reporting period shall
 11-8    file with the comptroller the report setting forth the facts or
 11-9    information.  The failure of a distributor or other person to
11-10    obtain forms or software from the comptroller is no excuse for the
11-11    failure to file a report containing all the information required to
11-12    be reported.
11-13          SECTION 10.  Section 153.215 (a), Tax Code, is amended to
11-14    read as follows:
11-15          (a)  A supplier's permit, a [and] dyed diesel bonded user
11-16    permit, and an agricultural bonded user permit are [is] permanent
11-17    and [is] valid so long as the permittee has in force and effect the
11-18    required bond or security and furnished timely reports and
11-19    supplements as required, or until the permit is surrendered by the
11-20    holder or canceled by the comptroller.  The comptroller shall [may]
11-21    cancel a supplier's permit if no purchase, sale, or use of diesel
11-22    fuel has been reported by the supplier for the prior 9 [12] months.
11-23          SECTION 11.  Section 153.221 (a), Tax Code, is amended to
11-24    read as follows:
11-25          (a)  On or before the 25th day of each month, a supplier or a
 12-1    dealer required to collect tax under Section 153.206(b) of this
 12-2    code or a user required to pay tax under Section 153.206(c) of this
 12-3    code shall file a report of diesel fuel transactions or of diesel
 12-4    fuel delivered by a user into the fuel tank of a motor vehicle
 12-5    owned or operated by him and such supplements as the comptroller
 12-6    may require and remit the amount of tax required to be collected or
 12-7    to be paid during the preceding month.  A report must be filed on a
 12-8    form or in a manner provided by the comptroller and contain
 12-9    information required by the comptroller, showing complete and
12-10    detailed information of diesel fuel transactions or use during the
12-11    preceding month.  A supplier required to file a report under this
12-12    section who has not sold, used, or distributed any diesel fuel
12-13    during the reporting period shall file with the comptroller the
12-14    report setting forth the information. The failure of a supplier,
12-15    dealer, or user to obtain forms or software from the comptroller is
12-16    no excuse for the failure to file a report. The report must be
12-17    executed by the supplier, dealer, or user, or his representative
12-18    and is the subject of penalties provided in this chapter.
12-19          SECTION 12.  Section 153.201 (a), Tax Code, is amended to
12-20    read as follows:
12-21          (a)  A tax is imposed on the first sale of undyed diesel fuel
12-22    in this state.
12-23          SECTION 13. Section 153.203 (3), Tax Code, is amended and a
12-24    new subsection (10) is added to read as follows:
12-25                (3)  undyed diesel fuel sold or delivered by a
 13-1    permitted supplier to another permitted supplier or agricultural
 13-2    bonded user, to the bulk storage facility of a diesel tax prepaid
 13-3    user, or to a purchaser for an agricultural purpose [purchaser] who
 13-4    provides a signed statement and end user number as provided by
 13-5    Section 153.205 of this code, but not including a delivery of
 13-6    tax-free diesel fuel into the fuel supply tanks of a motor vehicle,
 13-7    except for a motor vehicle owned by the federal government;
 13-8                (10)  dyed diesel fuel;
 13-9          SECTION 14.  Section 153.205 (a), (b), (c), (d), (i), (j) Tax
13-10    Code, is amended and a new subsection (k) is added to read as
13-11    follows:
13-12          (a)  The first sale or use of diesel fuel in this state is
13-13    taxable, except that [the] sales of dyed diesel fuel, or undyed
13-14    diesel fuel if the fuel will be used for an agricultural purpose,
13-15    may be made without collecting the tax if the purchaser furnishes
13-16    to a permitted supplier a signed statement, including an end user
13-17    number or agricultural user exemption number issued by the
13-18    comptroller's office, that stipulates that:
13-19                (1)  the purchaser does not operate any diesel powered
13-20    motor vehicles on the public highway;
13-21                (2)  all of the diesel fuel will be consumed by the
13-22    purchaser and no diesel fuel purchased on a signed statement will
13-23    be resold; and
13-24                (3)  none of the diesel fuel purchased in this state
13-25    will be delivered or permitted by the purchaser to be delivered
 14-1    into fuel supply tanks of motor vehicles.
 14-2          (b)  A person may not make a tax-free purchase of any diesel
 14-3    fuel under this section using a signed statement:
 14-4                (1)  for the purchase of more than 3,000 gallons of
 14-5    dyed or undyed diesel fuel in a single transaction; or (2) in a
 14-6    calendar month in which the person has previously purchased more
 14-7    than 10,000 gallons of dyed or undyed diesel fuel from all sources.
 14-8          (c)  The signed statement and end user number from the
 14-9    purchaser relieves the permitted supplier from the burden of proof
14-10    that the sale of diesel fuel was not taxable to the purchaser and
14-11    remains in effect unless:
14-12                (1)  the statement is revoked in writing by the
14-13    purchaser or supplier;
14-14                (2)  the comptroller notifies the supplier in writing
14-15    that the purchaser may no longer make tax-free purchases; or
14-16                (3)  the supplier is put on notice by making taxable
14-17    sales of diesel fuel to a purchaser who has previously submitted a
14-18    signed statement to this supplier.
14-19          (d)  A taxable use of any part of the dyed or undyed diesel
14-20    fuel purchased under a signed statement shall, in addition to any
14-21    criminal penalty, forfeit the right of the person to purchase dyed
14-22    or undyed diesel fuel tax-free for a period of one year from the
14-23    date of the offense, and any tax, interest, and penalty found to be
14-24    due through false or erroneous execution or continuance of a
14-25    promissory statement by the purchaser, if assessed to the supplier,
 15-1    is a debt of the purchaser to the supplier until paid, and is
 15-2    recoverable at law in the same manner as the purchase price of the
 15-3    fuel.  The person may, however, claim a refund of the tax paid on
 15-4    any undyed diesel fuel used for non-highway purposes under Section
 15-5    153.222 of this code.
 15-6          (i)  A permitted supplier may not make a tax-free sale of
 15-7    dyed fuel, or undyed diesel fuel for agricultural purposes, to a
 15-8    purchaser using a signed statement;
 15-9                (1)  for the sale of more than 3,000 gallons of dyed or
15-10    undyed diesel fuel in a single transaction; or
15-11                (2)  in a calendar month in which the supplier has
15-12    previously sold more than 10,000 gallons of dyed or undyed diesel
15-13    fuel to the purchaser.
15-14          (j)(1)  A sale of dyed diesel, or undyed diesel fuel for
15-15    agricultural purposes,  may be made without collecting tax from
15-16    [to] a purchaser who operates one or more motor vehicles on the
15-17    public highway and who furnishes to a permitted supplier a signed
15-18    statement and end user number only as provided in this subsection:
15-19                (2)  The statement must stipulate that all the dyed or
15-20    undyed diesel fuel will be consumed by the purchaser for purposes
15-21    other than operating a motor vehicle on the public highway and that
15-22    no dyed or undyed diesel fuel purchased on a signed statement will
15-23    be resold or delivered into the fuel supply tanks of a motor
15-24    vehicle.
15-25          (k)  Each person wishing to utilize a signed statement for
 16-1    the purchase of dyed fuel, or undyed tax-free diesel fuel for
 16-2    agricultural purposes shall apply to the comptroller for an
 16-3    agricultural user exemption number to be used in conjunction with a
 16-4    signed statement.  No tax-free sales of any diesel fuel may be made
 16-5    to a purchaser who does not have a valid end user number or
 16-6    agricultural user exemption number issued by the comptroller's
 16-7    office.
 16-8          SECTION 15.  Chapter 153, Tax Code, Subchapter C, is amended
 16-9    by adding the following sections:
16-10          Sec. 153.226.  NOTICE REGARDING DYED DIESEL FUEL.  A notice
16-11    stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
16-12    USE" must be:
16-13                (1)  provided by a permitted supplier to a person who
16-14    receives dyed diesel fuel;
16-15                (2)  provided by a seller of dyed diesel fuel to its
16-16    buyer if the diesel fuel is located outside the bulk
16-17    transfer/terminal system and is not sold from a retail pump or bulk
16-18    plant posted in accordance with requirements of subsection (3); and
16-19                (3)  posted by a seller on a retail pump or bulk plant
16-20    where it sells dyed diesel fuel for use by its buyers.
16-21          Sec. 153.227.  DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
16-22    DOCUMENTS, BILLS OF LADING, AND INVOICES.  The form of notice
16-23    required by Section 153.226(1) and (2) must be provided at the time
16-24    of the removal or sale, and must appear on shipping documents,
16-25    bills of lading, cargo manifests, and invoices accompanying the
 17-1    sale or removal of the dyed diesel fuel.
 17-2          Sec. 153.228.  UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL.
 17-3    (a) No person may sell or hold for sale dyed diesel fuel for any
 17-4    use that the person knows or has reason to know is a taxable use of
 17-5    the diesel fuel.
 17-6          (b)  No person may use or hold for use dyed diesel fuel for a
 17-7    use other than a non-taxable use if the person knew or had reason
 17-8    to know that the diesel fuel was so dyed.
 17-9          Sec. 153.229.  ALTERATION OF DYE OR MARKER IN DYED DIESEL
17-10    FUEL PROHIBITED.  No person, with the intent to evade payment of
17-11    tax, may alter or attempt to alter the strength or composition of a
17-12    dye or marker in dyed diesel fuel.
17-13          Sec. 153.330.  USE OF DYED FUEL PROHIBITED.  (a)  No person
17-14    may operate a motor vehicle on a public highway in this state with
17-15    taxable motor fuel that contains dye in the fuel supply tank of the
17-16    motor vehicle.
17-17          (b)  This section does not apply to:
17-18                (1)  persons operating motor vehicles who have received
17-19    fuel into their fuel tanks outside of this state, in a jurisdiction
17-20    that licenses the introduction of dyed taxable motor fuel of that
17-21    color and type into the motor fuel tank of vehicles operated on
17-22    highways; or
17-23                (2)  uses of dyed fuel that are lawful under the
17-24    Internal Revenue Code and implementing regulations including state
17-25    and local government vehicles and buses, unless otherwise
 18-1    prohibited by this chapter.
 18-2          (c)  a person who violates this section is subject to a
 18-3    criminal penalty.
 18-4          SECTION 16.  Section 153.209, Tax Code, is amended to read as
 18-5    follows:
 18-6          (a)  A dyed diesel bonded user permit authorizes a user to
 18-7    purchase dyed diesel fuel in excess of 10,000 gallons per month.
 18-8    [whose purchases of diesel fuel are predominantly for nonhighway
 18-9    use to purchase diesel fuel tax free from permitted suppliers and
18-10    to report and pay taxes to this state on that part of the diesel
18-11    fuel that is delivered into the fuel supply tank of motor vehicles
18-12    owned or operated by him.]
18-13          (b)  An agricultural bonded user permit authorizes a user to
18-14    purchase undyed diesel fuel in excess of 10,000 gallons per month
18-15    for agricultural purposes only.
18-16          SECTION 17.  Section 153.217 (a), Tax Code, is amended to
18-17    read as follows:
18-18          (a)  The comptroller, on or before December 20 of each
18-19    calendar year, shall mail or distribute to each supplier a printed
18-20    alphabetical list of permitted suppliers, dyed diesel bonded users,
18-21    agricultural bonded users, aviation fuel dealers, and diesel fuel
18-22    jobbers.  A permitted supplier, an agricultural bonded user, and an
18-23    aviation fuel dealer on the list are qualified to purchase dyed or
18-24    undyed diesel fuel tax free during the following calendar year.  A
18-25    diesel fuel jobber on the list is qualified to purchase diesel fuel
 19-1    tax-paid during the following calendar year.  A supplemental list
 19-2    of additions and deletions shall be delivered to each supplier each
 19-3    month.
 19-4          SECTION 18.  Section 153.218, Subsections (a), (b), and (c),
 19-5    Tax Code, is amended to read as follows:
 19-6          (a)  The comptroller shall determine the amount security
 19-7    required of a supplier, dyed diesel bonded user, agricultural
 19-8    bonded user, or diesel fuel jobber taking into consideration the
 19-9    amount of the tax that has or is expected to become due from the
19-10    person, any past history of the person as a supplier, dyed diesel
19-11    bonded user, agricultural bonded user, or diesel fuel jobber and
19-12    the necessity to protect the state against the failure to pay the
19-13    tax as it becomes due.
19-14          (b)  If it is determined that the posting of security is
19-15    necessary to protect the state, the comptroller may require a
19-16    supplier, [or] dyed diesel bonded user, or agricultural bonded user
19-17    to post a surety bond equal to two times the amount of tax that
19-18    could accrue on tax-free diesel fuel purchased or acquired during a
19-19    reporting period.  A diesel fuel jobber shall post a bond in an
19-20    amount determined by the comptroller according to the past payment
19-21    history of the jobber.  The minimum bond for a supplier or diesel
19-22    fuel jobber is $30,000 and the maximum bond is $600,000.  The
19-23    minimum bond for a dyed diesel bonded user or agricultural bonded
19-24    user is $10,000 and the maximum bond is $600,000.  However, if the
19-25    comptroller determines there is undue risk of loss of tax revenues,
 20-1    the comptroller may require one or more bonds or securities in a
 20-2    total amount exceeding $600,000.
 20-3          (c)  A supplier, dyed diesel bonded user, agricultural bonded
 20-4    user or diesel fuel jobber who has filed a bond or other security
 20-5    under this subchapter is exempted from the bond or other security
 20-6    requirements of this subchapter and is entitled, on request, to
 20-7    have the comptroller return, refund, or release the bond or
 20-8    security if in the judgement of the comptroller the person has for
 20-9    four consecutive years continuously complied with the conditions of
20-10    the bond or other security filed under this subchapter.  However,
20-11    if the comptroller determines that the bond or other security filed
20-12    under this subchapter would be jeopardized by the return, refund,
20-13    or release of the bond or security, the comptroller may elect not
20-14    to return, refund, or release the bond or security, and may
20-15    reimpose a requirement of a bond or other security as the
20-16    comptroller determines is necessary to protect the revenues of the
20-17    state.
20-18          SECTION 21.  Section 153.223 (a), Tax Code, is amended to
20-19    read as follows:
20-20          (a)  A refund claim must be filed with the comptroller on
20-21    forms provided by the comptroller and show the date of filing, the
20-22    period covered in the claim, the number of gallons of diesel fuel
20-23    subject to refund, and other information required by the
20-24    comptroller.  A claim must be supported by one or more original
20-25    invoices issued to or by the claimant, or such information as the
 21-1    comptroller deems necessary.  Permitted distributors are prohibited
 21-2    from filing claims for refunds of taxes paid by purchasers of
 21-3    undyed diesel fuel.
 21-4          SECTION 22.  Section 153.224 (a), Tax Code, is amended to
 21-5    read as follows:
 21-6          (a)  Except as provided by this section, a claim for a refund
 21-7    must be filed with the comptroller within one year after the first
 21-8    day of the calendar month following the purchase, use, delivery,
 21-9    export, or loss by fire or other accident of diesel fuel, whichever
21-10    period expires latest.  Claims for refunds may be submitted to the
21-11    comptroller's office once a quarter or when the amount of potential
21-12    refund claim equals at least $200.
21-13          SECTION 23.  This Act takes effect September 1, 1999.
21-14          SECTION 24.  The importance of this legislation and the
21-15    crowded condition of the calendars in both houses create an
21-16    emergency and an imperative public necessity that constitutional
21-17    rule requiring bills to be read on three several days in each house
21-18    be suspended, and this rule is hereby suspended.