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  82R12072 KJM-D
 
  By: Darby H.B. No. 3417
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state fiscal matters regarding business and economic
  development.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
  GENERALLY
         SECTION 1.01.  This article applies to any state agency that
  receives an appropriation under Article VII of the General
  Appropriations Act.
         SECTION 1.02.  Notwithstanding any other statute of this
  state, each state agency to which this article applies is
  authorized to reduce or recover expenditures by:
               (1)  consolidating any reports or publications the
  agency is required to make and filing or delivering any of those
  reports or publications exclusively by electronic means;
               (2)  extending the effective period of any license,
  permit, or registration the agency grants or administers;
               (3)  entering into a contract with another governmental
  entity or with a private vendor to carry out any of the agency's
  duties;
               (4)  adopting additional eligibility requirements for
  persons who receive benefits under any law the agency administers
  to ensure that those benefits are received by the most deserving
  persons consistent with the purposes for which the benefits are
  provided;
               (5)  providing that any communication between the
  agency and another person and any document required to be delivered
  to or by the agency, including any application, notice, billing
  statement, receipt, or certificate, may be made or delivered by
  e-mail or through the Internet; and
               (6)  adopting and collecting fees or charges to cover
  any costs the agency incurs in performing its lawful functions.
  ARTICLE 2.  FISCAL MATTERS REGARDING TRANSPORTATION PROJECTS AND
  ACTIVITIES
         SECTION 2.01.  Article 2.133, Code of Criminal Procedure, is
  amended by adding Subsection (c) to read as follows:
         (c)  A report under Subsection (b) must also include the race
  or ethnicity of each passenger in the motor vehicle, as stated by
  the passenger or, if the passenger does not state the person's race
  or ethnicity, as determined by the officer to the best of the
  officer's ability.
         SECTION 2.02.  Section 201.601, Transportation Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  The plan must include a component that evaluates future
  federal funding opportunities for all modes of transportation and
  identifies actions necessary to maximize the total amount of
  federal funds received in the future for transportation
  improvements in this state.
         SECTION 2.03.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.622 to read as follows:
         Sec. 201.622.  COOPERATION WITH LOCAL PLANNING ENTITIES TO
  MAXIMIZE FEDERAL FUNDING FOR PROJECTS. The department shall work
  and plan with local transportation planning entities to maximize
  the amount of federal funding awarded for projects in this state by
  identifying and pursuing projects that are eligible for federal
  grant programs, including the scenic byways program.
         SECTION 2.04.  The heading to Chapter 645, Transportation
  Code, is amended to read as follows:
  CHAPTER 645. [SINGLE STATE] REGISTRATION FOR OPERATION IN MULTIPLE
  STATES
         SECTION 2.05.  Chapter 645, Transportation Code, is amended
  by adding Section 645.005 to read as follows:
         Sec. 645.005.  UNIFORM HAZARDOUS MATERIALS TRANSPORTATION.  
  The Texas Department of Motor Vehicles by rule shall establish,
  implement, and administer the terms of the uniform program for
  hazardous materials transportation registration and permitting
  developed by the Alliance for Uniform Hazmat Transportation
  Procedures under 49 U.S.C. Section 5119.
  ARTICLE 3. FISCAL MATTERS REGARDING MOTOR FUEL TAX
         SECTION 3.01.  Section 162.204, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (g) to read as
  follows:
         (a)  The tax imposed by this subchapter does not apply to:
               (1)  diesel fuel sold to the United States for its
  exclusive use, provided that the exemption does not apply to diesel
  fuel sold or delivered to a person operating under a contract with
  the United States;
               (2)  diesel fuel sold to a public school district in
  this state for the district's exclusive use;
               (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;
               (4)  diesel fuel exported by either a licensed supplier
  or a licensed exporter from this state to any other state, provided
  that:
                     (A)  for diesel fuel in a situation described by
  Subsection (d), the bill of lading indicates the destination state
  and the supplier collects the destination state tax; or
                     (B)  for diesel fuel in a situation described by
  Subsection (e), the bill of lading indicates the destination state,
  the diesel fuel is subsequently exported, and the exporter is
  licensed in the destination state to pay that state's tax and has an
  exporter's license issued under this subchapter;
               (5)  diesel fuel moved by truck or railcar between
  licensed suppliers or licensed permissive suppliers and in which
  the diesel fuel removed from the first terminal comes to rest in the
  second terminal, provided that the removal from the second terminal
  rack is subject to the tax imposed by this subchapter;
               (6)  diesel fuel delivered or sold into a storage
  facility of a licensed aviation fuel dealer from which the diesel
  fuel will be delivered solely into the fuel supply tanks of aircraft
  or aircraft servicing equipment, or sold from one licensed aviation
  fuel dealer to another licensed aviation fuel dealer who will
  deliver the diesel fuel exclusively into the fuel supply tanks of
  aircraft or aircraft servicing equipment;
               (7)  diesel fuel exported to a foreign country if the
  bill of lading indicates the foreign destination and the fuel is
  actually exported to the foreign country;
               (8)  dyed diesel fuel sold or delivered by a supplier to
  another supplier and dyed diesel fuel sold or delivered by a
  supplier or distributor into the bulk storage facility of a dyed
  diesel fuel bonded user or to a purchaser who provides a signed
  statement as provided by Section 162.206;
               (9)  the volume of water, fuel ethanol, renewable
  diesel, biodiesel, or mixtures thereof that are blended together
  with taxable diesel fuel when the finished product sold or used is
  clearly identified on the retail pump, storage tank, and sales
  invoice as a combination of diesel fuel and water, fuel ethanol,
  renewable diesel, biodiesel, or mixtures thereof;
               (10)  dyed diesel fuel sold by a supplier or permissive
  supplier to a distributor, or by a distributor to another
  distributor;
               (11)  dyed diesel fuel delivered by a license holder
  into the fuel supply tanks of [railway engines,] motorboats[,] or
  refrigeration units or other stationary equipment powered by a
  separate motor from a separate fuel supply tank;
               (12)  dyed kerosene when delivered by a supplier,
  distributor, or importer into a storage facility at a retail
  business from which all deliveries are exclusively for heating,
  cooking, lighting, or similar nonhighway use;
               (13)  diesel fuel used by a person, other than a
  political subdivision, who owns, controls, operates, or manages a
  commercial motor vehicle as defined by Section 548.001,
  Transportation Code, if the fuel:
                     (A)  is delivered exclusively into the fuel supply
  tank of the commercial motor vehicle; and
                     (B)  is used exclusively to transport passengers
  for compensation or hire between points in this state on a fixed
  route or schedule; or
               (14)  diesel fuel sold to a volunteer fire department
  in this state for the department's exclusive use.
         (g)  Notwithstanding any other provision of this chapter, a
  person may not make a tax-free purchase of dyed diesel fuel for
  delivery into the fuel supply tank of a railway engine.  Sections
  162.205(b), 162.206, 162.231, 162.233, and 162.403(32) do not apply
  to a purchase described by this subsection.
         SECTION 3.02.  Section 162.227, Tax Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  A person who paid tax on diesel fuel delivered into the
  fuel supply tank of a railway engine may claim a credit or seek a
  refund with the comptroller if the person uses the diesel fuel to
  operate the railway engine in another state.
         SECTION 3.03.  Section 162.504, Tax Code, is amended to read
  as follows:
         Sec. 162.504.  ALLOCATION OF DIESEL FUEL TAX. (a)  On or
  before the fifth workday after the end of each month, the
  comptroller, after making deductions for refund purposes, for the
  administration and enforcement of this chapter, and for the amounts
  allocated under Subsection (b) and Section 162.5025, shall allocate
  the remainder of the taxes collected under Subchapter C as follows:
               (1)  one-fourth of the taxes shall be deposited to the
  credit of the available school fund; and
               (2)  three-fourths of the taxes shall be deposited to
  the credit of the state highway fund.
         (b)  On or before the fifth workday after the end of each
  month, the comptroller, after making deductions for refund
  purposes, shall allocate taxes collected under Subchapter C on dyed
  or undyed diesel fuel delivered into the fuel tanks of railway
  engines to the credit of the Texas rail relocation and improvement
  fund.
  ARTICLE 4. FISCAL MATTERS REGARDING PERMIT FEES
         SECTION 4.01.  Subchapter A, Chapter 623, Transportation
  Code, is amended by adding Section 623.002 to read as follows:
         Sec. 623.002.  EVALUATION OF PERMIT FEES. (a)  The
  department shall evaluate highway use in this state by oversize or
  overweight vehicles, calculate the cost of damage to highways in
  this state caused by those vehicles, and determine whether:
               (1)  the fees charged for permits issued under this
  chapter are adequate to offset the costs of damage to highways
  caused by those vehicles and recommend any fee adjustments for the
  permits to reflect the costs of damage to highways caused by those
  vehicles; and
               (2)  vehicles currently exempt from permit
  requirements under this chapter should be required to obtain a
  permit to operate on roads or highways in this state.
         (b)  Not later than October 1 of each even-numbered year, the
  department shall report its findings to:
               (1)  the Legislative Budget Board; and
               (2)  the governor.
         SECTION 4.02.  Section 623.077, Transportation Code, is
  amended to read as follows:
         Sec. 623.077.  HIGHWAY MAINTENANCE FEE.  (a)  An applicant
  for a permit under this subchapter, other than a permit under
  Section 623.071(c)(3), must also pay a highway maintenance fee in
  an amount determined according to vehicle weight and distance
  traveled. [the following table:
 
[Vehicle Weight in Pounds Fee
 
[80,001 to 120,000 $150
 
[120,001 to 160,000 $225
 
[160,001 to 200,000 $300
 
[200,001 and above $375]
         (b)  The department shall adopt rules to implement this
  section and establish a schedule of rates, based on miles traveled,
  for all vehicle weight categories that provides for an increase in
  the rates according to the weight of a vehicle.
         (c)  The department shall send each fee collected under
  Subsection (a) to the comptroller for deposit to the credit of the
  state highway fund.
         SECTION 4.03.  (a) The Texas Department of Transportation
  shall adopt rules implementing Section 623.077, Transportation
  Code, as amended by this article, not later than January 1, 2012.
         (b)  Section 623.077(a), Transportation Code, as amended by
  this article, applies only to an application for a permit submitted
  under Subchapter D, Chapter 623, Transportation Code, to the Texas
  Department of Transportation on or after January 1, 2012. An
  application for a permit submitted before January 1, 2012, is
  governed by the law in effect on the date the application was
  submitted, and that law is continued in effect for that purpose.
  ARTICLE 5. FISCAL MATTERS REGARDING TEXAS DEPARTMENT OF RURAL
  AFFAIRS
         SECTION 5.01.  The heading to Chapter 487, Government Code,
  is amended to read as follows:
  CHAPTER 487.  OFFICE [TEXAS DEPARTMENT] OF RURAL
  AFFAIRS IN DEPARTMENT OF AGRICULTURE
         SECTION 5.02.  Section 487.001, Government Code, is amended
  to read as follows:
         Sec. 487.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the commissioner [board of the Texas
  Department of Rural Affairs].
               (2)  "Commissioner" means the commissioner of
  agriculture.
               (3)  "Department" means the office [Texas Department of
  Rural Affairs].
               (4)  "Office" means the Office of Rural Affairs
  established within the Department of Agriculture under Section
  12.038, Agriculture Code.
         SECTION 5.03.  Subchapter A, Chapter 487, Government Code,
  is amended by adding Section 487.003 to read as follows:
         Sec. 487.003.  REFERENCE IN LAW.  (a)  A reference in this
  chapter or other law to the board of the Department of Rural Affairs
  means the commissioner.
         (b)  A reference in law to the executive director of the
  Department of Rural Affairs means the director of the Office of
  Rural Affairs appointed under Section 12.038, Agriculture Code.
         SECTION 5.04.  Section 487.026, Government Code, is amended
  to read as follows:
         Sec. 487.026.  [EXECUTIVE] DIRECTOR. (a) The [board may
  hire an executive] director serves [to serve] as the chief
  executive officer of the office [department] and performs [to
  perform] the administrative duties of the office [department].
         (b)  [The executive director serves at the will of the board.
         [(c)]  The [executive] director may hire staff within
  guidelines established by the commissioner [board].
         SECTION 5.05.  Section 487.051(a), Government Code, is
  amended to read as follows:
         (a)  The office [department] shall:
               (1)  assist rural communities in the key areas of
  economic development, community development, rural health, and
  rural housing;
               (2)  serve as a clearinghouse for information and
  resources on all state and federal programs affecting rural
  communities;
               (3)  in consultation with rural community leaders,
  locally elected officials, state elected and appointed officials,
  academic and industry experts, and the interagency work group
  created under this chapter, identify and prioritize policy issues
  and concerns affecting rural communities in the state;
               (4)  make recommendations to the legislature to address
  the concerns affecting rural communities identified under
  Subdivision (3);
               (5)  monitor developments that have a substantial
  effect on rural Texas communities, especially actions of state
  government, and compile an annual report describing and evaluating
  the condition of rural communities;
               (6)  administer the federal community development
  block grant nonentitlement program;
               (7)  administer programs supporting rural health care
  as provided by this chapter;
               (8)  perform research to determine the most beneficial
  and cost-effective ways to improve the welfare of rural
  communities;
               (9)  ensure that the office [department] qualifies as
  the state's office of rural health for the purpose of receiving
  grants from the Office of Rural Health Policy of the United States
  Department of Health and Human Services under 42 U.S.C. Section
  254r;
               (10)  manage the state's Medicare rural hospital
  flexibility program under 42 U.S.C. Section 1395i-4;
               (11)  seek state and federal money available for
  economic development in rural areas for programs under this
  chapter;
               (12)  in conjunction with other offices and divisions
  of the Department of Agriculture, regularly cross-train office
  [department] employees with other employees of the Department of
  Agriculture regarding the programs administered and services
  provided [by each agency] to rural communities; and
               (13)  work with interested persons to assist volunteer
  fire departments and emergency services districts in rural areas.
         SECTION 5.06.  Section 487.0541(c), Government Code, is
  amended to read as follows:
         (c)  The work group shall meet at the call of the [executive]
  director of the office [department].
         SECTION 5.07.  Section 487.351(d), Government Code, is
  amended to read as follows:
         (d)  An applicant for a grant, loan, or award under a
  community development block grant program may appeal a decision of
  the [executive] director by filing an appeal with the commissioner 
  [board].  The commissioner [board] shall hold a hearing on the
  appeal and render a decision.
         SECTION 5.08.  Section 535.051(b), Government Code, is
  amended to read as follows:
         (b)  The chief administrative officer of each of the
  following state agencies, in consultation with the governor, shall
  designate one employee from the agency to serve as a liaison for
  faith- and community-based organizations:
               (1)  the Office of Rural [Community] Affairs within the
  Department of Agriculture;
               (2)  the Texas Commission on Environmental Quality;
               (3)  the Texas Department of Criminal Justice;
               (4)  the Texas Department of Housing and Community
  Affairs;
               (5)  the Texas Education Agency;
               (6)  the Texas Juvenile Probation Commission;
               (7)  the Texas Veterans Commission;
               (8)  the Texas Workforce Commission;
               (9)  the Texas Youth Commission; and
               (10)  other state agencies as determined by the
  governor.
         SECTION 5.09.  Section 2306.1092(b), Government Code, is
  amended to read as follows:
         (b)  The council is composed of 16 members consisting of:
               (1)  the director;
               (2)  one representative from each of the following
  agencies, appointed by the head of that agency:
                     (A)  the Office of Rural [Community] Affairs
  within the Department of Agriculture;
                     (B)  the Texas State Affordable Housing
  Corporation;
                     (C)  the Health and Human Services Commission;
                     (D)  the Department of Assistive and
  Rehabilitative Services;
                     (E)  the Department of Aging and Disability
  Services; and
                     (F)  the Department of State Health Services;
               (3)  one representative from the Department of
  Agriculture who is:
                     (A)  knowledgeable about the Texans Feeding
  Texans and Retire in Texas programs or similar programs; and
                     (B)  appointed by the head of that agency;
               (4)  one member who is:
                     (A)  a member of the Health and Human Services
  Commission Promoting Independence Advisory Committee; and
                     (B)  appointed by the governor; and
               (5)  one representative from each of the following
  interest groups, appointed by the governor:
                     (A)  financial institutions;
                     (B)  multifamily housing developers;
                     (C)  health services entities;
                     (D)  nonprofit organizations that advocate for
  affordable housing and consumer-directed long-term services and
  support;
                     (E)  consumers of service-enriched housing;
                     (F)  advocates for minority issues; and
                     (G)  rural communities.
         SECTION 5.10.  Sections 487.002, 487.021, 487.022, 487.023,
  487.024, 487.025, 487.028, 487.029, 487.051(b), 487.058, and
  487.352, Government Code, are repealed.
         SECTION 5.11.  (a) The Texas Department of Rural Affairs is
  abolished as an independent agency and transferred as a program to
  the Office of Rural Affairs in the Department of Agriculture.  The
  board of the Texas Department of Rural Affairs is abolished.
         (b)  The validity of an action taken by the Texas Department
  of Rural Affairs or its board before either is abolished under
  Subsection (a) of this section is not affected by the abolishment.
         SECTION 5.12.  On September 1, 2011:
               (1)  the position of executive director of the Texas
  Department of Rural Affairs is abolished, except that the director
  of the Office of Rural Affairs in the Department of Agriculture may
  hire the executive director for a position in the office;
               (2)  an employee of the Texas Department of Rural
  Affairs becomes an employee of the Office of Rural Affairs in the
  Department of Agriculture;
               (3)  a reference in law to the Texas Department of Rural
  Affairs means the Office of Rural Affairs in the Department of
  Agriculture;
               (4)  all money, contracts, leases, rights, and
  obligations of the Texas Department of Rural Affairs are
  transferred to the Office of Rural Affairs in the Department of
  Agriculture;
               (5)  all property, including records, in the custody of
  the Texas Department of Rural Affairs becomes the property of the
  Office of Rural Affairs in the Department of Agriculture; and
               (6)  all funds appropriated by the legislature to the
  Texas Department of Rural Affairs are transferred to the Office of
  Rural Affairs in the Department of Agriculture.
         SECTION 5.13.  A function or activity performed by the Texas
  Department of Rural Affairs is transferred to the Office of Rural
  Affairs in the Department of Agriculture as provided by this
  article.
         SECTION 5.14.  The Texas Department of Rural Affairs and the
  Department of Agriculture shall establish a transition plan for the
  transfer described in Sections 5.11 and 5.12 of this article.
  ARTICLE 6.  EFFECTIVE DATE
         SECTION 6.01.  This Act takes effect September 1, 2011.