BILL ANALYSIS

H.B. 2683

By: Burns

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Diesel fuel meant for off-road use only, such as in farm and construction equipment, is not taxed. Since the 1990s, federal law has required such tax-exempt diesel fuel to be dyed bright red to indicate its tax-exempt status. Using dyed diesel on the highway or knowingly selling it for such use is illegal under both state and federal law. Winter Storm Uri, which struck Texas in February 2021, exposed the unavailability of regular diesel fuel as a critical vulnerability for Texas agriculture. Amid the storm, regular diesel supplies were quickly exhausted and unable to be replenished. Many agricultural producers had off-road, dyed diesel available for their tractors and other equipment, but could not use that fuel legally to power motor vehicles on the highway. Producers were left with the prospect of either breaking the law or being unable to reach livestock to deliver food, water, and care. H.B. 2683 seeks to mitigate the impact of disasters on essential workers such as farmers and ranchers by authorizing the on-highway use of dyed diesel fuel for a period during and after certain disaster declarations.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2683 amends the Tax Code to authorize a person who purchases dyed diesel motor fuel to operate a motor vehicle on a public highway in Texas with that fuel in the fuel supply tank under the following conditions:

· the purchaser furnishes to the licensed supplier or distributor the required signed statement that includes an end user number issued by the comptroller of public accounts;

· the vehicle is operated on the highway during a period beginning on the date the governor declares a state of disaster due to a fire, flood, earthquake, tornado, hurricane, storm, or energy emergency and ending on the 30th day after the declaration expires or otherwise terminates; and

· the vehicle either is operated in the designated disaster area or has the dyed motor fuel placed in its fuel supply tank in the disaster area.

The bill's provisions apply only to conduct that occurs on or after the bill's effective date. The bill provides for the continuation of the law in effect before the bill's effective date for purposes of the conduct, or any element thereof, that occurred before that date.

EFFECTIVE DATE

September 1, 2023.