Amend SB 1886 as follows:                                                    
	(1)  On page 11, strike lines 9 through 12 and substitute the 
following:     
		(3)  sold to a commercial transportation company or a 
metropolitan rapid transit authority operating under Chapter 451, 
Transportation Code, that provides public school transportation 
services to a school district under Section 34.008, Education Code, 
and that uses the gasoline only to provide those services;
	(2)  On page 15, line 24, between "is amended by" and 
"adding", insert "amending Subsection (a) and".
	(3)  On page 15, between lines 25 and 26, insert the 
following:              
	(a)  A license holder may take a credit on a return for the 
period in which the sale occurred if the license holder paid tax on 
the purchase of gasoline and subsequently resells the gasoline 
without collecting the tax to:
		(1)  the United States government for its exclusive 
use, provided that a credit is not allowed for gasoline used by a 
person operating under contract with the United States;
		(2)  a public school district in this state for the 
district's exclusive use;
		(3)  an exporter licensed under this subchapter if the 
seller is a licensed supplier or distributor and the exporter 
subsequently exports the gasoline to another state;
		(4)  a licensed aviation fuel dealer if the seller is a 
licensed distributor;  or
		(5)  a commercial transportation company or a 
metropolitan rapid transit authority operating under Chapter 451, 
Transportation Code, that provides public school transportation 
services to a school district under Section 34.008, Education Code, 
and that uses the gasoline exclusively to provide those services.
	(4)  Add the following appropriately numbered SECTION to the 
bill and renumber subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Subchapter B, Chapter 162, Tax Code, is 
amended by adding Section 162.1275 to read as follows:
	Sec. 162.1275.  REFUND FOR CERTAIN METROPOLITAN RAPID 
TRANSIT AUTHORITIES.  (a)  Except as otherwise provided by this 
section, a metropolitan rapid transit authority operating under 
Chapter 451, Transportation Code, that is a party to a contract 
governed by Section 34.008, Education Code, is entitled to a refund 
of taxes paid under this subchapter for gasoline used to provide 
services under the contract and may file a refund claim with the 
comptroller for the amount of those taxes.
	(b)  The refund claim under Subsection (a) must contain 
information regarding:
		(1)  vehicle mileage;                                                  
		(2)  hours of service provided;                                        
		(3)  fuel consumed;                                                    
		(4)  the total number of student passengers per route; 
and           
		(5)  the total number of non-student passengers per 
route.           
	(c)  If in any month of a school year the number of 
non-student passengers is greater than five percent of the total 
passengers for any single route under a contract governed by 
Section 34.008, Education Code, the metropolitan rapid transit 
authority is not entitled to a refund of taxes paid under this 
subchapter for the route for that month.
	(d)  A metropolitan rapid transit authority that requests a 
refund under this section shall maintain all supporting 
documentation relating to the refund until the sixth anniversary of 
the date of the request.
	(5)  Strike page 18, line 25 through page 19, line 1 and 
substitute the following:
		(3)  diesel fuel sold to a commercial transportation 
company or a metropolitan rapid transit authority operating under 
Chapter 451, Transportation Code, that provides public school 
transportation services to a school district under Section 34.008, 
Education Code, and that uses the diesel fuel only to provide those 
services;
	(6)  On page 26, line 21, between "is amended by" and 
"adding", insert "amending Subsection (a) and".
	(7)  On page 26, between lines 22 and 23, insert the 
following:              
	(a)  A license holder may take a credit on a return for the 
period in which the sale occurred if the license holder paid tax on 
the purchase of diesel fuel and subsequently resells the diesel 
fuel without collecting the tax to:
		(1)  the United States government for its exclusive 
use, provided that a credit is not allowed for gasoline used by a 
person operating under a contract with the United States;
		(2)  a public school district in this state for the 
district's exclusive use;
		(3)  an exporter licensed under this subchapter if the 
seller is a licensed supplier or distributor and the exporter 
subsequently exports the diesel fuel to another state;
		(4)  a licensed aviation fuel dealer if the seller is a 
licensed distributor; or
		(5)  a commercial transportation company or a 
metropolitan rapid transit authority operating under Chapter 451, 
Transportation Code, that provides public school transportation 
services to a school district under Section 34.008, Education Code, 
and that uses the diesel fuel exclusively to provide those 
services.
	(8)  Add the following appropriately numbered SECTIONS to 
the bill and renumber subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Subchapter C, Chapter 162, Tax Code, is 
amended by adding Section 162.2275 to read as follows:
	Sec. 162.2275.  REFUND FOR CERTAIN METROPOLITAN RAPID 
TRANSIT AUTHORITIES.  (a)  Except as otherwise provided by this 
section, a metropolitan rapid transit authority operating under 
Chapter 451, Transportation Code, that is a party to a contract 
governed by Section 34.008, Education Code, is entitled to a refund 
of taxes paid under this subchapter for diesel fuel used to provide 
services under the contract and may file a refund claim with the 
comptroller for the amount of those taxes.
	(b)  The refund claim under Subsection (a) must contain 
information regarding:
		(1)  vehicle mileage;                                                  
		(2)  hours of service provided;                                        
		(3)  fuel consumed;                                                    
		(4)  the total number of student passengers per route; 
and           
		(5)  the total number of non-student passengers per 
route.           
	(c)  If in any month of a school year the number of 
non-student passengers is greater than five percent of the total 
passengers for any single route under a contract governed by 
Section 34.008, Education Code, the metropolitan rapid transit 
authority is not entitled to a refund of taxes paid under this 
subchapter for the route for that month.
	(d)  A metropolitan rapid transit authority that requests a 
refund under this section shall maintain all supporting 
documentation relating to the refund until the sixth anniversary of 
the date of the request.
	SECTION ____.  Section 162.3021(b), Tax Code, is amended to 
read as follows: 
	(b)  Subject to Section 162.3022, the [The] tax imposed by 
this subchapter does not apply to the sale of liquefied petroleum 
gas to a commercial transportation company or a metropolitan rapid 
transit authority operating under Chapter 451, Transportation 
Code, that uses the gas exclusively to provide public school 
transportation services to a school district under Section 34.008, 
Education Code, or to the use of liquefied petroleum gas by that 
company for that purpose.  A motor vehicle that uses liquefied 
petroleum gas and that is owned by a commercial transportation 
company or a metropolitan rapid transit authority operating under 
Chapter 451, Transportation Code, and used exclusively to provide 
public school transportation services to a school district under 
Section 34.008, Education Code, is not required to have a liquefied 
gas tax decal or a special use liquefied gas tax decal.
	SECTION ____.  Subchapter D, Chapter 162, Tax Code, is 
amended by adding Section 162.3022 to read as follows:
	Sec. 162.3022.  EXCLUSIVE USE FOR CERTAIN METROPOLITAN RAPID 
TRANSIT AUTHORITIES.  (a)  This section applies to a metropolitan 
rapid transit authority operating under Chapter 451, 
Transportation Code, that is a party to a contract governed by 
Section 34.008, Education Code, that is not required under Section 
162.3021 to have a liquefied gas tax decal or a special use 
liquefied gas tax decal for liquefied gas used to provide services 
under the contract.
	(b)  If in any month of a school year the number of 
non-student passengers is greater than five percent of the total 
passengers for any single route under a contract governed by 
Section 34.008, Education Code, the metropolitan rapid transit 
authority is liable for the tax under this subchapter in an amount 
that is prorated for that month.
	(c)  The metropolitan rapid transit authority shall maintain 
the following supporting documentation relating to the services 
provided under the contract until the sixth anniversary of the date 
of the services provided:
		(1)  vehicle mileage;                                                  
		(2)  hours of service provided;                                        
		(3)  fuel consumed;                                                    
		(4)  the total number of student passengers per route; 
and           
		(5)  the total number of non-student passengers per 
route.           
	(d)  The comptroller may adopt rules to implement this 
section.