By:  Burnam                                                       H.B. No. 35 



A BILL TO BE ENTITLED

AN ACT

relating to funding for public education; imposing taxes and 
providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by 
adding Chapters 163 and 164 to read as follows:

CHAPTER 163.  COAL TAX
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 163.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Coal" includes lignite.                                          
		(2)  "Lignite" means coal commonly referred to as brown 
coal, of intermediate grade between peat and bituminous coal.
		(3)  "Use" includes storage for use in this state, but 
does not include the storage for use or shipment out of this state.

[Sections 163.002-163.020 reserved for expansion]

SUBCHAPTER B.  IMPOSITION AND COLLECTION OF TAX
	Sec. 163.021.  TAX IMPOSED.  (a)  A tax is imposed on the 
purchase in this state of coal for use in this state.
	(b)  A tax is imposed on the use of coal in this state.                 
	Sec. 163.022.  RATE OF TAX.  (a)  Except as provided by 
Subsection (b), the rate of the taxes imposed by this chapter is 7.5 
percent of the total price paid for the coal, without regard to 
where the purchase occurs, delivered at the site at which the coal 
will be used, including transportation costs to that site.
	(b)  The rate of the taxes imposed by this chapter on coal 
used in this state by a producer of coal who owns the coal in place 
and who produces the coal for the producer's own use is 7.5 percent 
of the fair market value of the coal, including transportation 
costs to the site at which the coal is used.
	Sec. 163.023.  USE TAX DEDUCTION.  A person may deduct from 
the amount of tax otherwise imposed by Section 163.021(b) the 
amount of tax reported and paid under Section 163.021(a).
	Sec. 163.024.  PAYMENT OF TAX.  On or before the 25th day of 
each month, each person on whom a tax is imposed by this chapter 
shall send to the comptroller the amount of tax due under this 
chapter for the preceding month.
	Sec. 163.025.  REPORTS.  On or before the 25th day of each 
month, each person on whom a tax is imposed by this chapter shall 
file with the comptroller a report stating:
		(1)  the amount of coal purchased by the person for use 
in this state and used in this state during the preceding month and 
the total price of that coal;
		(2)  the amount of coal used in this state by a producer 
of coal who owns the coal in place and who produces the coal for the 
producer's own use, and the total market value of that coal; and
		(3)  any other information required by the comptroller.                
	Sec. 163.026.  RECORDS.  A person on whom a tax is imposed by 
this chapter shall keep a complete record of:
		(1)  the amount of coal purchased by the person for use 
in this state;
		(2)  the use of coal in this state by the person; and                  
		(3)  any other information required by the comptroller.                

[Sections 163.027-163.050 reserved for expansion]

SUBCHAPTER C.  PENALTIES AND OFFENSES
	Sec. 163.051.  INTEREST ON DELINQUENT TAX.  A tax imposed by 
this chapter that is delinquent draws interest as provided by 
Section 111.060.
	Sec. 163.052.  PENALTY.  (a)  A person on whom a tax is 
imposed by this chapter and who fails to file a report as required 
by this chapter or does not pay the tax when it is due forfeits to 
the state a penalty of 12 percent of the amount of tax delinquent.
	(b)  If a report required by this chapter is not filed or a 
tax imposed by this chapter is not paid within 30 days after it is 
due, the person on whom the tax is imposed forfeits to the state a 
penalty of an additional 12 percent of the amount of tax delinquent.
	(c)  The minimum penalty under this section is $1.                      
	Sec. 163.053.  CRIMINAL PENALTY.  (a)  A person who violates 
this chapter commits an offense.
	(b)  An offense under this section is a class C misdemeanor.            

[Sections 163.054-163.070 reserved for expansion]

SUBCHAPTER D.  ALLOCATION AND USE
	Sec. 163.071.  ALLOCATION OF TAX REVENUE.  All of the revenue 
from the tax imposed by this chapter shall be deposited to the 
credit of the foundation school fund.

CHAPTER 164.  ENERGY EFFICIENCY TAX

SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 164.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Affiliated power generation company," "exempt 
wholesale generator," and "power generation company," have the 
meanings assigned by Section 31.002, Utilities Code.
		(2)  "Electric generator" includes a power generation 
company, an affiliated power generation company, and an exempt 
wholesale generator.

[Sections 164.002-164.020 reserved for expansion]

SUBCHAPTER B.  IMPOSITION AND COLLECTION OF TAX
	Sec. 164.021.  TAX IMPOSED.  A tax is imposed on each 
electric generator in this state that uses a process to generate 
electricity that results in the emission of nitrogen oxides.
	Sec. 164.022.  RATE OF TAX.  The rate of the tax imposed by 
this chapter is 60 cents for each pound of nitrogen oxides emitted 
by the electric generator in generating a megawatt hour of 
electricity multiplied by the total megawatt hours of electricity 
generated by the electric generator.
	Sec. 164.023.  PAYMENT OF TAX.  On or before the 25th day of 
each month, each electric generator on whom a tax is imposed by this 
chapter shall send to the comptroller the amount of tax due under 
this chapter for the preceding month.
	Sec. 164.024.  REPORTS.  On or before the 25th day of each 
month, each electric generator on whom a tax is imposed by this 
chapter shall file with the comptroller a report stating:
		(1)  the number of pounds of nitrogen oxides emitted by 
the electric generator in generating electricity during the 
preceding month;
		(2)  the total number of megawatt hours generated by 
the electric generator during the preceding month; and
		(3)  any other information required by the comptroller.                
	Sec. 164.025.  RECORDS.  A person on whom a tax is imposed by 
this chapter shall keep a complete record of:
		(1)  the number of pounds of nitrogen oxides emitted by 
the electric generator in generating electricity during the 
preceding month;
		(2)  the total number of megawatt hours generated by 
the electric generator during the preceding month; and
		(3)  any other information required by the comptroller.                

[Sections 164.026-164.050 reserved for expansion]

SUBCHAPTER C.  PENALTIES AND OFFENSES
	Sec. 164.051.  INTEREST ON DELINQUENT TAX.  A tax imposed by 
this chapter that is delinquent draws interest as provided by 
Section 111.060.
	Sec. 164.052.  PENALTY.  (a)  An electric generator on whom a 
tax is imposed by this chapter and who fails to file a report as 
required by this chapter or does not pay the tax when it is due 
forfeits to the state a penalty of 12 percent of the amount of tax 
delinquent.
	(b)  If a report required by this chapter is not filed or a 
tax imposed by this chapter is not paid on or before the 30th day 
after the date it is due, the electric generator on whom the tax is 
imposed forfeits to the state a penalty of an additional 12 percent 
of the amount of tax delinquent.
	(c)  The minimum penalty under this section is $1.                      
	Sec. 164.053.  CRIMINAL PENALTY.  (a)  A person who violates 
this chapter commits an offense.
	(b)  An offense under this section is a Class C misdemeanor.            

[Sections 164.054-164.070 reserved for expansion]

SUBCHAPTER D.  ALLOCATION AND USE
	Sec. 164.071.  ALLOCATION OF TAX REVENUE.  All of the revenue 
from the tax imposed by this chapter shall be deposited to the 
credit of the foundation school fund.
	SECTION 2.  This Act takes effect September 1, 2004.