82R12072 KJM-D By: Ogden S.B. No. 1585 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 [Vehicle Weight in Pounds Fee [Vehicle Weight in Pounds Fee [80,001 to 120,000 $150 [80,001 to 120,000 $150 [80,001 to 120,000 $150 [120,001 to 160,000 $225 [120,001 to 160,000 $225 [120,001 to 160,000 $225 [160,001 to 200,000 $300 [160,001 to 200,000 $300 [160,001 to 200,000 $300 [200,001 and above $375] [200,001 and above $375] [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. [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]