1-1     By:  Counts (Senate Sponsor - Duncan)                 H.B. No. 1241
 1-2           (In the Senate - Received from the House April 5, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on
 1-4     Business and Commerce; May 11, 2001, reported favorably, as
 1-5     amended, by the following vote:  Yeas 6, Nays 0; May 11, 2001, sent
 1-6     to printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                            By:  Shapleigh
 1-8           (1)  Amend H.B. 1241 by adding a new SECTION 1 to read as
 1-9     follows:
1-10           SECTION 1.  Amend Section 153.001, Tax Code, by adding a new
1-11     subsection (37) to read as follows:
1-12           (37)  "Agricultural purpose" means a purpose associated with
1-13     the following activities:  cultivating the soil, producing crops
1-14     for human food, animal feed, or planting seed or for the production
1-15     of fibers; floriculture, viticulture, silviculture, and
1-16     horticulture, including the cultivation of plants in containers or
1-17     non-soil media; raising, feeding or keeping livestock or other
1-18     animals for the production of food or fiber, leather, pelts, or
1-19     other tangible products having a commercial value; wildlife
1-20     management; and planting cover crops, including cover crops
1-21     cultivated for transplantation, or leaving land idle for the
1-22     purpose of participating in any governmental program or normal crop
1-23     or livestock rotation procedure.
1-24           (2)  Renumber subsequent sections accordingly.
1-25                            A BILL TO BE ENTITLED
1-26                                   AN ACT
1-27     relating to the purchase of diesel fuel by certain persons using a
1-28     signed statement.
1-29           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-30           SECTION 1. Sections 153.205(a), (b), and (i), Tax Code, are
1-31     amended to read as follows:
1-32           (a)  The first sale or use of diesel fuel in this state is
1-33     taxable, except that sales of dyed diesel fuel, or of undyed diesel
1-34     fuel if the fuel will be used for an agricultural purpose, may be
1-35     made without collecting the tax if the purchaser furnishes to a
1-36     permitted supplier a signed statement, including an end user number
1-37     or agricultural user exemption number issued by the comptroller
1-38     that stipulates that:
1-39                 (1)  the purchaser does not operate any diesel-powered
1-40     motor vehicles on the public highway;
1-41                 (2)  all of the diesel fuel will be consumed by the
1-42     purchaser, or all of the diesel fuel will be consumed by the
1-43     purchaser in oil or gas production, as applicable, and no diesel
1-44     fuel purchased on a signed statement will be resold; and
1-45                 (3)  none of the diesel fuel purchased in this state
1-46     will be delivered or permitted by the purchaser to be delivered
1-47     into fuel supply tanks of motor vehicles.
1-48           (b)  A person may not make a tax-free purchase of any diesel
1-49     fuel under this section using a signed statement:
1-50                 (1)  for the purchase of more than 7,400 [3,000]
1-51     gallons of dyed or undyed diesel fuel in a single transaction; or
1-52                 (2)  in a calendar month in which the person has
1-53     previously purchased more than:
1-54                       (A)  10,000 gallons of dyed [or undyed] diesel
1-55     fuel from all sources;
1-56                       (B)  25,000 gallons of dyed diesel fuel from all
1-57     sources if the purchaser stipulates in the signed statement that
1-58     all of the fuel will be consumed by the purchaser in oil or gas
1-59     production; or
1-60                       (C)  25,000 gallons of dyed or undyed diesel fuel
1-61     from all sources if purchased for agricultural purposes by a person
1-62     who furnishes to the permitted supplier, in conjunction with the
1-63     signed statement, an agricultural exemption number issued by the
 2-1     comptroller.
 2-2           (i)  A permitted supplier may not make a tax-free sale of
 2-3     dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
 2-4     to a purchaser using a signed statement:
 2-5                 (1)  for the sale of more than 7,400 [3,000] gallons of
 2-6     dyed or undyed diesel fuel in a single transaction; or
 2-7                 (2)  in a calendar month in which the supplier has
 2-8     previously sold more than:
 2-9                       (A)  10,000 gallons of dyed [or undyed] diesel
2-10     fuel to the purchaser;
2-11                       (B)  25,000 gallons of dyed diesel fuel to the
2-12     purchaser if the purchaser stipulates in the signed statement that
2-13     all of the fuel will be consumed by the purchaser in oil or gas
2-14     production; or
2-15                       (C)  25,000 gallons of dyed or undyed diesel fuel
2-16     to the purchaser if the purchaser furnishes to the permitted
2-17     supplier, in conjunction with the signed statement, an agricultural
2-18     exemption number issued by the comptroller.
2-19           SECTION 2. Section 153.209, Tax Code, is amended by adding
2-20     Subsection (c) to read as follows:
2-21           (c)  This section does not affect the right of a purchaser to
2-22     purchase not more than 25,000 gallons of dyed diesel fuel for the
2-23     purchaser's own use in oil or gas production, or of dyed or undyed
2-24     diesel fuel for the purchaser's own use for agricultural purposes
2-25     only, using a signed statement under Section 153.205.
2-26           SECTION 3. This Act takes effect September 1, 2001, and
2-27     applies to diesel fuel purchased on or after that date.  Diesel
2-28     fuel purchased before that date is governed by the law in effect
2-29     when the fuel was purchased, and that law is continued in effect
2-30     for that purpose.
2-31                                  * * * * *