Texas 2019 - 86th Regular

Texas House Bill HB4281 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R8468 SMT-F
2	2	By: Israel H.B. No. 4281
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a county motor fuels tax in certain counties for
8	8	mobility improvement projects; providing authority to impose the
9	9	tax, issue bonds, and impose penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 14, Local Government Code, is
12	12	amended by adding Chapter 616 to read as follows:
13	13	CHAPTER 616. COUNTY MOTOR FUELS TAX FOR MOBILITY IMPROVEMENT
14	14	PROJECTS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 616.001. SHORT TITLE. This chapter may be cited as the
17	17	Texas Local Option Transportation Act.
18	18	Sec. 616.002. DEFINITIONS. In this chapter:
19	19	(1) "Advanced rapid transit" means high-capacity
20	20	transit provided wholly or partly in dedicated lanes with stations,
21	21	off-vehicle fare collection, and branded vehicles connected using
22	22	vehicle-to-vehicle or other technology controlled by an in-vehicle
23	23	or remote driver or autonomous technology.
24	24	(2) "Dealer," "diesel fuel," "gasoline," "motor
25	25	fuel," "motor vehicle," "public highway," and "sale" have the
26	26	meanings assigned by Section 162.001, Tax Code.
27	27	(3) "Department" means the Texas Department of
28	28	Transportation.
29	29	(4) "Intermodal hub" and "transit system" have the
30	30	meanings assigned by Section 370.003, Transportation Code.
31	31	(5) "Metropolitan planning organization" has the
32	32	meaning assigned by Section 472.031, Transportation Code.
33	33	(6) "Mobility improvement project" means a capital
34	34	improvement or set of related capital improvements in a geographic
35	35	area, including maintenance and operation of the improvements,
36	36	designed to relieve traffic congestion, increase mobility and the
37	37	movement of traffic or individuals, expand transportation
38	38	capacity, promote traffic or pedestrian safety, or improve air
39	39	quality. The term includes:
40	40	(A) passenger rail systems and related
41	41	infrastructure;
42	42	(B) advanced rapid transit systems and related
43	43	infrastructure;
44	44	(C) transit systems;
45	45	(D) intermodal hubs;
46	46	(E) pedestrian facilities;
47	47	(F) streets, roadways, highways, and additional
48	48	roadway or highway lanes, such as turning lanes and managed or high
49	49	occupancy vehicle lanes; and
50	50	(G) bridges, tunnels, interchanges, overpasses,
51	51	underpasses, service roads, ramps, entrance plazas, parking areas
52	52	or structures, and traffic signal systems.
53	53	(7) "Transit authority" or "transportation authority"
54	54	means an authority operating under Chapter 370, 451, 452, or 460,
55	55	Transportation Code.
56	56	Sec. 616.003. REDUCTION PROHIBITED. (a) A county,
57	57	municipality, regional mobility authority, or metropolitan
58	58	planning organization may not be penalized with a reduction in
59	59	state or federal transportation funding, including funding from the
60	60	state highway fund, the Texas mobility fund, general obligation
61	61	bonds, or any other method of state or federal transportation
62	62	financing, because of the imposition of a county motor fuels tax
63	63	under this chapter.
64	64	(b) The department may not reduce any allocation of state or
65	65	federal transportation funding to a department district because the
66	66	district contains a county that imposes a county motor fuels tax
67	67	under this chapter.
68	68	Sec. 616.004. RESTRICTIONS ON LOBBYING. A county that
69	69	imposes a county motor fuels tax under this chapter may not use
70	70	revenue from the tax to pay a person or entity that is required to
71	71	register with the Texas Ethics Commission under Chapter 305,
72	72	Government Code.
73	73	Sec. 616.005. LIBERAL CONSTRUCTION. This chapter shall be
74	74	liberally construed to effect its purposes.
75	75	Sec. 616.006. EXPIRATION OF CHAPTER. (a) This chapter
76	76	expires January 1, 2029. The expiration of this chapter precludes
77	77	the holding of an election or the imposition of a county motor fuels
78	78	tax not authorized under this chapter before its expiration.
79	79	(b) The expiration of this chapter does not affect:
80	80	(1) the enforcement of bonds, obligations, covenants,
81	81	or other legal instruments issued or executed under this chapter
82	82	before its expiration;
83	83	(2) the continued imposition and collection of a
84	84	county motor fuels tax authorized at an election held under this
85	85	chapter necessary to fulfill an obligation or other instrument
86	86	described by Subdivision (1) before its expiration;
87	87	(3) the performance of any mobility improvement
88	88	project, including maintenance and operation of a project; or
89	89	(4) the administration of a county mobility
90	90	improvement fund established under this chapter for county motor
91	91	fuels tax revenue.
92	92	Sec. 616.007. PROHIBITIONS ON USE OF REVENUE. A county may
93	93	not use revenue from a county motor fuels tax imposed under this
94	94	chapter for a purpose not authorized by the constitution of this
95	95	state or to directly or indirectly hold, promote, or oppose an
96	96	election under this chapter, including paying for promotional,
97	97	educational, or advocacy materials.
98	98	Sec. 616.008. INTERLOCAL CONTRACTING AUTHORITY. (a) A
99	99	political subdivision may contract or agree with another political
100	100	subdivision to perform governmental functions and services in
101	101	accordance with this chapter.
102	102	(b) A party to an interlocal contract may contract with an
103	103	agency, as that term is defined by Section 771.002, Government
104	104	Code.
105	105	(c) In this section, "interlocal contract" has the meaning
106	106	assigned by Section 791.003, Government Code.
107	107	Sec. 616.009. ANNUAL REPORT AND AUDIT. (a) On or before
108	108	the 90th day following the end of the fiscal year of a county that
109	109	imposes a motor fuels tax under this chapter, the commissioners
110	110	court must submit a report to the executive director of the
111	111	department and to the state auditor. The report must include:
112	112	(1) the amount of revenue collected in the county
113	113	under this chapter;
114	114	(2) the amount and purpose of expenditures related to
115	115	mobility improvement projects; and
116	116	(3) a description of the progress made toward
117	117	completion of mobility improvement projects.
118	118	(b) The county must publish the report required under
119	119	Subsection (a) on the county's Internet website at the time the
120	120	report is submitted to the department.
121	121	(c) Based on a risk assessment process in accordance with
122	122	Chapter 321, Government Code, the financial transactions of a
123	123	county regarding a motor fuels tax imposed under this chapter and
124	124	related mobility improvement projects are subject to audit by the
125	125	state auditor. A county audited under this subsection shall
126	126	reimburse the state auditor for the expense of the audit.
127	127	SUBCHAPTER B. ELECTIONS; PROJECT SELECTION; EQUITY
128	128	Sec. 616.051. CALLING OF ELECTION. (a) The commissioners
129	129	court of a county with a population of more than one million may
130	130	call an election on the issue of imposing a motor fuels tax under
131	131	this chapter if:
132	132	(1) at least 240 days before the uniform election date
133	133	in November, a resolution or resolutions requesting that an
134	134	election be called are adopted by the commissioners court of the
135	135	county; or
136	136	(2) at least 210 days before the uniform election date
137	137	in November, a petition is submitted to the commissioners court of
138	138	the county requesting that the election be called that is signed by
139	139	the number of registered voters of the county equal to at least 10
140	140	percent of the total number of votes cast in the county for all
141	141	candidates for governor in the most recent gubernatorial general
142	142	election.
143	143	(b) The commissioners court may adopt an order under this
144	144	section only after holding three public hearings on the issue.
145	145	(c) An election called under this section must be held on
146	146	the uniform election date in November.
147	147	(d) Section 334.025 applies to an election called under this
148	148	section.
149	149	Sec. 616.052. SUBSEQUENT ELECTIONS. (a) This section
150	150	applies only to a county in which the majority of voters did not
151	151	approve the imposition of a county motor fuels tax at an election
152	152	held under Section 616.051.
153	153	(b) The commissioners court by order may call a subsequent
154	154	election to impose the motor fuels tax authorized under this
155	155	chapter using the procedures described by this subchapter.
156	156	(c) The commissioners court of a county may not call a
157	157	subsequent election under this section before the second
158	158	anniversary of a previously held election.
159	159	Sec. 616.053. REQUIRED BALLOT LANGUAGE. (a) An order under
160	160	this subchapter calling an election must:
161	161	(1) list and generally describe the nature and scope
162	162	of the proposed mobility improvement projects to be constructed;
163	163	and
164	164	(2) list the estimated cost, or portion of the cost,
165	165	and the estimated completion date for the capital construction of
166	166	each proposed mobility improvement project.
167	167	(b) The ballot at an election held under this subchapter
168	168	must be printed as follows: "Authorizing ________ (insert name of
169	169	county) to construct the following mobility improvement
170	170	projects:_______ (insert, on four separate lines, a general and
171	171	brief description of each proposed mobility improvement project, an
172	172	estimated total cost of each project, the estimated date of
173	173	expiration of any necessary bonds, and the estimated date the
174	174	project will be operational to the public). The construction,
175	175	maintenance, and operation of the project or projects listed above
176	176	will be funded with a 10 cent tax imposed on the sale of a gallon of
177	177	gasoline and diesel fuel. By voting "yes," you authorize the county
178	178	to begin imposing a 10 cent motor fuels tax on the sale of a gallon
179	179	of gasoline and diesel fuel. Do you authorize the construction of
180	180	the mobility improvement projects listed above and the imposition
181	181	of a county motor fuels tax in ______ County?"
182	182	(c) The estimated cost of construction of a mobility
183	183	improvement project listed on a ballot is not a legally binding
184	184	restriction on the actual and ultimate cost of financing the
185	185	project.
186	186	(d) A ballot may not permit individual mobility improvement
187	187	projects to be voted on as separate options. All mobility
188	188	improvement projects included on a ballot must be approved or
189	189	rejected as a group.
190	190	Sec. 616.054. AUTHORIZED PROJECTS. (a) A county may
191	191	propose for funding by a motor fuels tax imposed under this chapter,
192	192	to the extent permitted by the constitution of this state:
193	193	(1) the construction of a new mobility improvement
194	194	project and related maintenance and operations;
195	195	(2) the expansion, reconstruction, or rehabilitation
196	196	of an existing mobility improvement project;
197	197	(3) improvements in the maintenance and operation of
198	198	an existing mobility improvement project; or
199	199	(4) the retirement of existing debt of a transit
200	200	agency related to a mobility improvement project.
201	201	(b) A county may only use funds collected from a motor fuels
202	202	tax imposed under this chapter to fund mobility improvement
203	203	projects consistent with the transportation plans and programs of
204	204	the metropolitan planning organization in which the county is
205	205	located.
206	206	(c) A county shall consider advanced rapid transit
207	207	corridors in selecting projects for funding under this chapter.
208	208	(d) On or before the 30th day before the date described in
209	209	Subsection (e), the metropolitan planning organization in which the
210	210	county is located shall submit to the county a list of eligible
211	211	mobility improvement projects with a primary emphasis on advanced
212	212	rapid transit and major roadway improvements.
213	213	(e) On or before the 180th day before an election is held
214	214	under this subchapter, the commissioners court shall, by order and
215	215	in consultation with municipalities and transit agencies located or
216	216	operating in the county, determine in a public hearing which
217	217	projects from the list submitted under Subsection (d) shall be
218	218	proposed for funding from a motor fuels tax imposed under this
219	219	chapter.
220	220	(f) At the discretion of the county, employees of the
221	221	department, the county, a municipality, a metropolitan planning
222	222	organization, an airport, or a transit authority may be asked to
223	223	provide staff support services to the county to determine the
224	224	projects to be proposed and constructed.
225	225	SUBCHAPTER C. COUNTY MOTOR FUELS TAX
226	226	Sec. 616.101. COUNTY MOTOR FUELS TAX AUTHORIZED;
227	227	EXPIRATION. (a) Notwithstanding Section 162.014, Tax Code, if
228	228	approved by a majority of the votes cast in a county at an election
229	229	held under Subchapter B, the county shall impose a tax at a rate of
230	230	10 cents per gallon on the sale of gasoline and diesel fuel that is
231	231	sold in the county by a person, including a dealer, distributor,
232	232	supplier, or permissive supplier, engaged in the sale of motor
233	233	fuels used to propel a motor vehicle on the public highways of the
234	234	state.
235	235	(b) The tax authorized by this section is in addition to the
236	236	tax imposed by Chapter 162, Tax Code, and shall be collected in
237	237	conjunction with that tax when gasoline or diesel fuel is removed
238	238	from a terminal using the terminal rack, other than by bulk
239	239	transfer, to be sold or delivered into a county that has imposed the
240	240	tax authorized by this section.
241	241	(c) A county shall discontinue the imposition of a motor
242	242	fuels tax under this chapter if:
243	243	(1) all of the mobility improvement projects approved
244	244	by the voters of a county are accepted by the governmental entity
245	245	that contracted for the projects;
246	246	(2) all of the bonds issued for mobility improvement
247	247	projects are paid in full; and
248	248	(3) additional revenue from the continued imposition
249	249	of the tax is not necessary for ongoing maintenance and operation of
250	250	mobility improvement projects, including the financial impact a new
251	251	mobility improvement project may have on an existing transit system
252	252	as specified by an interlocal agreement.
253	253	Sec. 616.102. DUTIES OF COMPTROLLER RELATING TO COUNTY
254	254	MOTOR FUELS TAX. (a) The comptroller shall administer, collect,
255	255	and enforce a tax imposed on the sale of gasoline or diesel fuel
256	256	approved in accordance with the provisions of this chapter. The tax
257	257	shall be exclusively administered, collected, and enforced in
258	258	conformance with Chapter 162, Tax Code, governing the tax assessed
259	259	on the sale of gasoline and diesel fuel, except that Subchapter F,
260	260	Chapter 162, Tax Code, does not apply. References in Chapter 162,
261	261	Tax Code, to taxes imposed under that chapter also include taxes
262	262	imposed under this section.
263	263	(b) The exemptions provided by Sections 162.104 and
264	264	162.204, Tax Code, apply to the tax authorized by this section.
265	265	(c) Subject to Section 616.103, the comptroller may adopt
266	266	reasonable rules and prescribe forms that are consistent with this
267	267	chapter and Chapter 162, Tax Code, for the administration,
268	268	collection, reporting, and enforcement of this section.
269	269	(d) Except as provided by Subsection (e), the tax authorized
270	270	by this section takes effect on the first day of the first calendar
271	271	quarter following the expiration of the first complete quarter
272	272	occurring after the date of the election authorizing the order
273	273	imposing the tax under Subchapter B.
274	274	(e) If the comptroller determines that an effective date
275	275	provided by Subsection (d) will occur before the comptroller can
276	276	reasonably take the action required to begin collecting the tax,
277	277	the comptroller may delay the effective date until the first day of
278	278	the first calendar quarter following the date the comptroller
279	279	declares that the comptroller is ready to begin collecting the tax.
280	280	(f) Before making a distribution to a county under Section
281	281	616.105, the comptroller shall deduct any costs incurred by the
282	282	comptroller related to the comptroller's preparations to
283	283	administer, collect, and enforce a tax on the sale of gasoline or
284	284	diesel fuel approved in accordance with this chapter. Each county
285	285	that approves the imposition of a tax on the sale of gasoline or
286	286	diesel fuel shall be charged a pro rata amount for the comptroller's
287	287	costs in preparing to administer, collect, and enforce the tax. If
288	288	only one county elects to approve the imposition of a tax on the
289	289	sale of gasoline or diesel fuel in its jurisdiction, that county
290	290	shall bear all of the costs incurred by the comptroller but may
291	291	recover pro rata shares of this cost from other counties that
292	292	approve the imposition of the tax.
293	293	Sec. 616.103. ADOPTION OF RULES RELATING TO MOTOR FUELS
294	294	TAX. (a) Before the comptroller may adopt rules under Section
295	295	616.102, the comptroller must consult with representatives of:
296	296	(1) the entities that would be required to:
297	297	(A) collect and remit a motor fuels tax imposed
298	298	under this chapter; and
299	299	(B) file reports with the comptroller relating to
300	300	a motor fuels tax imposed under this chapter; and
301	301	(2) counties in which the voters have approved the
302	302	imposition of a motor fuels tax under this chapter.
303	303	(b) Rules adopted under Section 616.102 must provide for the
304	304	uniform administration and reporting of all motor fuels taxes
305	305	imposed by a county under this chapter. A county may not impose
306	306	requirements on an entity required to collect a motor fuels tax
307	307	under this chapter that are not specifically authorized by the
308	308	rules adopted under Section 616.102.
309	309	(c) Rules adopted under Section 616.102:
310	310	(1) may require the comptroller to report sufficient
311	311	information to each county imposing a motor fuels tax under this
312	312	chapter to ensure proper allocation of revenue by the county under
313	313	this chapter;
314	314	(2) may not require the comptroller to report
315	315	proprietary information collected from an individual taxpayer in a
316	316	way that would be subject to public disclosure; and
317	317	(3) may not authorize a county imposing a motor fuels
318	318	tax under this chapter to contract with a private entity to perform
319	319	any duty or responsibility associated with the collection,
320	320	enforcement, or administration of the tax.
321	321	Sec. 616.104. TRUST ACCOUNT. The comptroller shall deposit
322	322	the county taxes collected by the comptroller under this chapter
323	323	and Chapter 162, Tax Code, in trust in the separate suspense account
324	324	of the county for which the taxes were collected.
325	325	Sec. 616.105. DISTRIBUTION OF TRUST FUNDS. The comptroller
326	326	shall each month distribute to the county treasurer, payable to the
327	327	county and for deposit in the county mobility improvement fund, the
328	328	county's share of the taxes collected by the comptroller under this
329	329	chapter and Chapter 162, Tax Code.
330	330	Sec. 616.106. STATE'S SHARE. Before making a distribution
331	331	to a county under Section 616.105, the comptroller also shall
332	332	deduct an amount not to exceed two percent of the amount of the
333	333	taxes collected for the county during the period for which a
334	334	distribution is made as the state's charge for its services. The
335	335	comptroller shall credit the amount deducted to the general revenue
336	336	fund. The comptroller shall adjust the percentage of the amount
337	337	deducted each state fiscal year considering the projected
338	338	expenditures necessary for the collection, administrative, and
339	339	enforcement functions related to the county motor fuels tax.
340	340	Sec. 616.107. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The
341	341	comptroller may retain in the suspense account of a county a portion
342	342	of the county's share of the tax collected for the county under this
343	343	chapter and Chapter 162, Tax Code, not to exceed five percent of the
344	344	amount distributed to the county. If the county has abolished the
345	345	tax, the amount that may be retained may not exceed five percent of
346	346	the final distribution to the county at the time of the termination
347	347	of the collection of the tax.
348	348	(b) From the amounts retained in a county's suspense
349	349	account, the comptroller may correct erroneous deposits to the
350	350	account, make refunds for overpayments to the account, and redeem
351	351	dishonored checks and drafts deposited to the credit of the
352	352	account.
353	353	(c) Before the fourth anniversary of the effective date of
354	354	the abolition of a county tax collected under this chapter and
355	355	Chapter 162, Tax Code, the comptroller shall send to the county the
356	356	remainder of the money in the county's account and shall close the
357	357	account.
358	358	Sec. 616.108. INTEREST ON TRUST ACCOUNT. Interest earned
359	359	on all deposits made by the comptroller under this subchapter shall
360	360	be credited to the suspense account of the county.
361	361	SUBCHAPTER D. FUND
362	362	Sec. 616.151. COUNTY MOBILITY IMPROVEMENT FUND. (a) The
363	363	commissioners court of each county that imposes a motor fuels tax
364	364	under this chapter shall, by order, establish a county mobility
365	365	improvement fund that is separate and apart from the county's
366	366	general fund account.
367	367	(b) The county shall deposit in the fund money distributed
368	368	to the county under Section 616.105.
369	369	(c) The county shall establish segregated accounts in the
370	370	fund for each approved mobility improvement project.
371	371	(d) Money in the fund, including any interest earned, is the
372	372	property of the county depositing the money and may be spent only as
373	373	provided by Section 616.152.
374	374	Sec. 616.152. USE OF MONEY IN FUND; ISSUANCE OF BONDS.
375	375	(a) A county may use money in its county mobility improvement
376	376	fund, to the extent permitted by the constitution of this state, to:
377	377	(1) reimburse or pay, without issuing bonds or other
378	378	obligations or otherwise creating debt, the costs of planning,
379	379	acquiring, establishing, developing, constructing, or renovating
380	380	mobility improvement projects in the county that were approved at
381	381	an election under this subchapter;
382	382	(2) pay the principal of, interest on, or other costs
383	383	relating to bonds or other obligations the county issues for the
384	384	purpose of financing mobility improvement projects in the county
385	385	that were approved at an election under this subchapter;
386	386	(3) pay amounts due and owing to a transit authority or
387	387	transportation authority under a contract or interlocal agreement
388	388	between the county and the authority under which the authority
389	389	agrees to provide, develop, construct, install, and operate
390	390	advanced rapid transit facilities and services inside and outside
391	391	the county and to issue bonds and other obligations that are secured
392	392	by and payable from the amounts due from the county under the
393	393	contract or interlocal agreement for the purpose of financing the
394	394	capital costs of the facilities, if a county motor fuels tax was
395	395	approved for that purpose at an election under this chapter;
396	396	(4) pay amounts due and owing to a municipality under a
397	397	contract or interlocal agreement between the county and the
398	398	municipality under which the municipality agrees to provide,
399	399	develop, or construct mobility improvement projects located inside
400	400	the municipality;
401	401	(5) pay amounts owed to a transit agency to accelerate
402	402	the retirement of outstanding debt; and
403	403	(6) reimburse or pay the actual and customary costs of
404	404	financial administration of the fund.
405	405	(b) A contract or interlocal agreement entered into between
406	406	a county and a transit authority or transportation authority for
407	407	the purposes described by Subsection (a)(3) may have those terms
408	408	and provisions, and may impose and contain requirements, grants,
409	409	and limitations, as the county and the transit authority or
410	410	transportation authority may mutually agree, including the power of
411	411	the transit authority or transportation authority to pledge as
412	412	security for its bonds all amounts, less agreed costs of
413	413	collection, deposited to the county's local option transportation
414	414	fund, if such a pledge was approved at an election under this
415	415	subchapter.
416	416	(c) Bonds or other obligations issued by a county under this
417	417	section may be made payable from money in the county's county
418	418	mobility improvement fund, subject to any limitations contained in
419	419	a contract or interlocal agreement between the county and a transit
420	420	authority or transportation authority, and from any other sources
421	421	of revenue of the county that are lawfully available. Bonds or
422	422	other obligations issued by a transit authority or transportation
423	423	authority under a contract or interlocal agreement shall be payable
424	424	from and secured by the money in the county's county mobility
425	425	improvement fund and the revenue received from the operation of the
426	426	advanced rapid transit services financed by the bonds or other
427	427	obligations and may not include any revenue the transit authority
428	428	or transportation authority receives from a dedicated sales tax or
429	429	the operation of any other advanced rapid transit or bus system or
430	430	related services.
431	431	(d) Bonds or other obligations issued by a county under this
432	432	section or by a transit authority or transportation authority under
433	433	a contract or interlocal agreement may mature serially or otherwise
434	434	not more than 30 years after the date of issuance.
435	435	(e) Any bonds or other obligations issued by a county or by a
436	436	transit authority or transportation authority under this section,
437	437	and the proceedings authorizing the bonds or other obligations,
438	438	must be submitted to the attorney general for review and approval
439	439	under Chapter 1202, Government Code.
440	440	(f) A county may not:
441	441	(1) use money in the fund to finance the construction
442	442	of a mobility improvement project not permitted by the constitution
443	443	of this state or not approved by the voters in an election under
444	444	this chapter; or
445	445	(2) use funds approved for a particular mobility
446	446	improvement project to fund a different project.
447	447	SUBCHAPTER E. TRANSIT AND TRANSPORTATION AUTHORITIES
448	448	Sec. 616.201. TRANSIT AUTHORITY OR TRANSPORTATION
449	449	AUTHORITY SERVICES NOT AUTHORIZED. (a) A county acting under this
450	450	chapter may not directly operate or provide advanced rapid transit
451	451	services or any service expressly reserved by a transit authority
452	452	or a transportation authority that serves the county.
453	453	(b) This chapter does not authorize the creation of a
454	454	transit authority or a transportation authority.
455	455	SECTION 2. Subchapter C, Chapter 791, Government Code, is
456	456	amended by adding Section 791.038 to read as follows:
457	457	Sec. 791.038. CONTRACTS RELATED TO COUNTY MOTOR FUELS
458	458	TAXES. (a) The comptroller may enter into an interlocal contract
459	459	with one or more local governments or political subdivisions to
460	460	collect, administer, and enforce a county motor fuels tax enacted
461	461	under Chapter 616, Local Government Code, and any other related
462	462	law.
463	463	(b) This section expires January 1, 2022.
464	464	SECTION 3. Section 162.001, Tax Code, is amended by adding
465	465	Subdivisions (16-a), (16-b), (56-a), (56-b), and (57-a) to read as
466	466	follows:
467	467	(16-a) "County diesel fuel tax" means the tax imposed
468	468	by Section 162.2011 or 162.2035.
469	469	(16-b) "County gasoline tax" means the tax imposed by
470	470	Section 162.1011 or 162.1035.
471	471	(56-a) "State diesel fuel tax" means the tax imposed
472	472	by Section 162.201 or 162.203.
473	473	(56-b) "State gasoline tax" means the tax imposed by
474	474	Section 162.101 or 162.103.
475	475	(57-a) "Taxing county" means a destination county that
476	476	has adopted the tax on motor vehicle fuel authorized by Chapter 616,
477	477	Local Government Code.
478	478	SECTION 4. Sections 162.004(e) and (g), Tax Code, are
479	479	amended to read as follows:
480	480	(e) A person to whom a shipping document was issued shall:
481	481	(1) carry the shipping document in the barge, vessel,
482	482	railroad tank car, or other transport vehicle for which the
483	483	document was issued when transporting the motor fuel described in
484	484	the document;
485	485	(2) show the shipping document on request to any law
486	486	enforcement officer, representative of the comptroller, or other
487	487	authorized individual, when transporting the motor fuel described;
488	488	(3) deliver the motor fuel to the destination state
489	489	printed on the shipping document unless the person:
490	490	(A) notifies the comptroller and the destination
491	491	state, if a diversion program is in place, before transporting the
492	492	motor fuel into a state other than the printed destination state,
493	493	that the person has received instructions after the shipping
494	494	document was issued to deliver the motor fuel to a different
495	495	destination state;
496	496	(B) receives from the comptroller and
497	497	destination state, if a diversion program is in place, a diversion
498	498	number authorizing the diversion; and
499	499	(C) writes on the shipping document the change in
500	500	destination state and the diversion number; [and]
501	501	(4) if delivering the motor fuel into a county in this
502	502	state, denote on the shipping document the county to which the motor
503	503	fuel will be delivered or, in the case of a split load, each county
504	504	in which a portion of the motor fuel will be delivered; and
505	505	(5) give a copy of the shipping document to the person
506	506	to whom the motor fuel is delivered.
507	507	(g) The person to whom motor fuel is delivered by barge,
508	508	vessel, railroad tank car, or transport vehicle may not accept
509	509	delivery of the motor fuel if the destination state shown on the
510	510	shipping document for the motor fuel is a state other than this
511	511	state, except that the person may accept the [that] delivery if the
512	512	document contains a diversion number authorized by the comptroller
513	513	and destination state, if applicable, and has received a properly
514	514	completed shipping document listing the county in this state in
515	515	which the person accepts delivery. The person to whom the motor
516	516	fuel is delivered shall examine the shipping document to determine
517	517	that the destination state is this state and the county in this
518	518	state is the county in which the person accepts delivery, and shall
519	519	retain a copy of the shipping document at the delivery location or
520	520	another place until the fourth anniversary of the date of delivery.
521	521	SECTION 5. Section 162.005(e), Tax Code, is amended to read
522	522	as follows:
523	523	(e) The comptroller may revoke a license if the license
524	524	holder:
525	525	(1) purchases for export motor fuel on which the tax
526	526	was not paid under this chapter and subsequently diverts or causes
527	527	the motor fuel to be diverted to a destination in this state or to
528	528	any destination other than the originally designated state or
529	529	country without first obtaining a diversion number; or
530	530	(2) delivers motor fuel on which the county gasoline
531	531	tax or county diesel fuel tax is due without issuing a properly
532	532	completed shipping document listing the taxing county in which the
533	533	delivery occurred.
534	534	SECTION 6. Section 162.006(a), Tax Code, is amended to read
535	535	as follows:
536	536	(a) The comptroller may suspend a person's license without
537	537	notice or a hearing for the person's failure to comply with this
538	538	chapter or a rule adopted under this chapter or Chapter 616, Local
539	539	Government Code, if the person's continued operation constitutes an
540	540	immediate and substantial threat to the collection of taxes imposed
541	541	by this chapter and attributable to the person's operation.
542	542	SECTION 7. Section 162.012, Tax Code, is amended to read as
543	543	follows:
544	544	Sec. 162.012. PRESUMPTIONS. (a) A person licensed under
545	545	this chapter or required to be licensed under this chapter, or other
546	546	user, who fails to keep a record, issue an invoice, or file a return
547	547	or report required by this chapter is presumed to have sold or used
548	548	for taxable purposes all motor fuel shown by an audit by the
549	549	comptroller to have been sold to the license holder or other
550	550	user. Motor fuel unaccounted for is presumed to have been sold or
551	551	used for taxable purposes.
552	552	(b) If an exporter claims an exemption under Section
553	553	162.104(a)(4) or 162.204(a)(4) and fails to report subsequent
554	554	tax-free sales in this state of the motor fuel for which the
555	555	exemption was claimed as required by Section 162.1155 or 162.2165,
556	556	or to produce proof of payment of tax to the destination state or
557	557	proof that the transaction was exempt in the destination state, the
558	558	exporter is presumed to have not paid the destination state's tax or
559	559	this state's tax on the motor fuel and the comptroller shall assess
560	560	the tax imposed by this chapter on the motor fuel against the
561	561	exporter.
562	562	(c) If a person claims an exemption from the county motor
563	563	fuels tax and fails to produce proof of delivery to a nontaxing
564	564	county, the person is presumed to have delivered the motor fuel to a
565	565	taxing county that imposes the tax on motor vehicle fuels
566	566	authorized by Chapter 616, Local Government Code.
567	567	(d) The comptroller may fix or establish the amount of
568	568	taxes, penalties, and interest due this state from the records of
569	569	deliveries or from any records or information available. If a tax
570	570	claim, as developed from this procedure, is not paid, after the
571	571	opportunity to request a redetermination, the claim and any audit
572	572	made by the comptroller or any report filed by the license holder or
573	573	other user is evidence in any suit or judicial proceedings filed by
574	574	the attorney general and is prima facie evidence of the correctness
575	575	of the claim or audit. A prima facie presumption of the
576	576	correctness of the claim may be overcome at the trial by evidence
577	577	adduced by the license holder or other user.
578	578	(e) [(b)] In the absence of records showing the number of
579	579	miles actually operated per gallon of motor fuel consumed, it is
580	580	presumed that not less than one gallon of motor fuel was consumed
581	581	for every four miles traveled. An interstate trucker may produce
582	582	evidence of motor fuel consumption to establish another mileage
583	583	factor. If an examination or audit made by the comptroller from the
584	584	records of an interstate trucker shows that a greater amount of
585	585	motor fuel was consumed than was reported by the interstate trucker
586	586	for tax purposes, the interstate trucker is liable for the tax,
587	587	penalties, and interest on the additional amount shown or the
588	588	trucker is entitled to a credit or refund on overpayments of tax
589	589	established by the audit.
590	590	SECTION 8. Section 162.015, Tax Code, is amended to read as
591	591	follows:
592	592	Sec. 162.015. ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
593	593	On the effective date of an increase in the rate [rates] of a tax
594	594	[the taxes] imposed by this chapter, a distributor or dealer that
595	595	possesses for the purpose of sale 2,000 or more gallons of gasoline
596	596	or diesel fuel at each business location on which a tax [the taxes]
597	597	imposed by this chapter at a previous rate has [have] been paid
598	598	shall report to the comptroller the volume of that gasoline and
599	599	diesel fuel, and at the time of the report shall pay a tax on that
600	600	gasoline and diesel fuel at a rate equal to the rate of the tax
601	601	increase.
602	602	(b) On the effective date of a reduction of the rate [rates]
603	603	of a tax [taxes] imposed by this chapter, a distributor or dealer
604	604	that possesses for the purpose of sale 2,000 or more gallons of
605	605	gasoline or diesel fuel at each business location on which a tax
606	606	[the taxes] imposed by this chapter at the previous rate has [have]
607	607	been paid becomes entitled to a refund in an amount equal to the
608	608	difference in the amount of the tax [taxes] paid on that gasoline or
609	609	diesel fuel at the previous rate and at the rate in effect on the
610	610	effective date of the reduction in the tax rate [rates]. The rules
611	611	of the comptroller shall provide for the method of claiming a refund
612	612	under this chapter and may require that the refund for the dealer be
613	613	paid through the distributor or supplier from whom the dealer
614	614	received the fuel.
615	615	SECTION 9. Section 162.016, Tax Code, is amended by
616	616	amending Subsection (a) and adding Subsection (g-1) to read as
617	617	follows:
618	618	(a) A person may not import motor fuel to a destination in
619	619	this state or export motor fuel to a destination outside this state
620	620	by any means unless the person possesses a shipping document for
621	621	that fuel. The shipping document must include:
622	622	(1) the name and physical address of the terminal or
623	623	bulk plant from which the motor fuel was received for import or
624	624	export;
625	625	(2) the name of the carrier transporting the motor
626	626	fuel;
627	627	(3) the date the motor fuel was loaded;
628	628	(4) the type of motor fuel;
629	629	(5) the number of gallons:
630	630	(A) in temperature-adjusted gallons if purchased
631	631	from a terminal for export or import; or
632	632	(B) in temperature-adjusted gallons or in gross
633	633	gallons if purchased from a bulk plant;
634	634	(6) the destination state and, if the destination
635	635	state is this state, the county in this state to which the gasoline
636	636	or diesel fuel will be delivered [of the motor fuel] as represented
637	637	by the purchaser of the motor fuel and the number of gallons of the
638	638	fuel to be delivered, if delivery is to only one state;
639	639	(7) the name and physical address of the purchaser of
640	640	the motor fuel;
641	641	(8) the name of the person responsible for paying the
642	642	tax imposed by this chapter, as given to the terminal by the
643	643	purchaser if different from the licensed supplier or distributor;
644	644	(9) the destination state of each portion of a split
645	645	load of motor fuel if the motor fuel is to be delivered to more than
646	646	one state and, if a destination state is this state, the county in
647	647	this state to which the gasoline or diesel fuel will be delivered;
648	648	and
649	649	(10) any other information that, in the opinion of the
650	650	comptroller, is necessary for the proper administration of this
651	651	chapter.
652	652	(g-1) An importer or exporter who wants to deliver a single
653	653	cargo tank of motor fuel to a county in this state must issue a
654	654	properly completed shipping document denoting the county to which
655	655	the motor fuel will be delivered or, in the case of a split load,
656	656	each county to which a portion of the motor fuel will be delivered.
657	657	SECTION 10. The heading to Section 162.101, Tax Code, is
658	658	amended to read as follows:
659	659	Sec. 162.101. POINT OF IMPOSITION OF STATE GASOLINE TAX.
660	660	SECTION 11. Sections 162.101(a), (b), (c), and (f), Tax
661	661	Code, are amended to read as follows:
662	662	(a) A tax is imposed on the removal of gasoline from the
663	663	terminal using the terminal rack, other than by bulk transfer. The
664	664	supplier or permissive supplier is liable for and shall collect the
665	665	tax imposed by this section [subchapter] from the person who orders
666	666	the withdrawal at the terminal rack.
667	667	(b) A tax is imposed at the time gasoline is imported into
668	668	this state, other than by a bulk transfer, for delivery to a
669	669	destination in this state. The supplier or permissive supplier is
670	670	liable for and shall collect the tax imposed by this section
671	671	[subchapter] from the person who imports the gasoline into this
672	672	state. If the seller is not a supplier or permissive supplier,
673	673	then the person who imports the gasoline into this state is liable
674	674	for and shall pay the tax.
675	675	(c) A tax is imposed on the removal of gasoline from the bulk
676	676	transfer/terminal system in this state. The supplier is liable for
677	677	and shall collect the tax imposed by this section [subchapter] from
678	678	the person who orders the removal from the bulk transfer terminal
679	679	system.
680	680	(f) A terminal operator in this state is considered a
681	681	supplier for the purpose of the tax imposed by [under] this section
682	682	[subchapter] unless at the time of removal:
683	683	(1) the terminal operator has a terminal operator's
684	684	license issued for the facility from which the gasoline is
685	685	withdrawn;
686	686	(2) the terminal operator verifies that the person who
687	687	removes the gasoline has a supplier's license; and
688	688	(3) the terminal operator does not have a reason to
689	689	believe that the supplier's license is not valid.
690	690	SECTION 12. Subchapter B, Chapter 162, Tax Code, is amended
691	691	by adding Section 162.1011 to read as follows:
692	692	Sec. 162.1011. IMPOSITION OF COUNTY GASOLINE TAX; POINT OF
693	693	COLLECTION. (a) In a county that imposes the tax on motor vehicle
694	694	fuels authorized by Chapter 616, Local Government Code, a tax is
695	695	imposed on the delivery of gasoline into the taxing county.
696	696	(b) A tax is imposed on gasoline that is otherwise exempt
697	697	from taxation under Section 162.104(a)(4) or (7) if the gasoline is
698	698	sold in this state to a person who does not hold a license under
699	699	Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
700	700	subsequently delivered into a taxing county. The person who
701	701	delivered the gasoline into the taxing county is liable for and
702	702	shall collect the tax.
703	703	(c) A tax is imposed on gasoline that is otherwise exempt
704	704	from taxation under Section 162.104(a)(4) or (7) if before export
705	705	the gasoline is sold in this state to a person who holds a license
706	706	under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
707	707	delivered into a taxing county. The person who delivered the
708	708	gasoline into the taxing county is liable for and shall pay the tax.
709	709	(d) The distributor shall collect the tax imposed by this
710	710	section from each person on delivery of gasoline into a taxing
711	711	county.
712	712	(e) In each subsequent sale of gasoline on which the tax has
713	713	been paid, the tax imposed by this section shall be collected from
714	714	the purchaser so that the tax is paid ultimately by the person who
715	715	uses the gasoline. Gasoline is considered to be used when it is
716	716	delivered into a fuel supply tank.
717	717	SECTION 13. Section 162.102, Tax Code, is amended to read as
718	718	follows:
719	719	Sec. 162.102. TAX RATES [RATE]. (a) The state gasoline tax
720	720	rate is 20 cents for each net gallon or fractional part of a net
721	721	gallon on which the tax is imposed under Section 162.101.
722	722	(b) In a taxing county, the county gasoline tax rate for
723	723	each net gallon or fractional part of a net gallon is the rate
724	724	established by Chapter 616, Local Government Code.
725	725	SECTION 14. The heading to Section 162.1025, Tax Code, is
726	726	amended to read as follows:
727	727	Sec. 162.1025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
728	728	FROM PURCHASER.
729	729	SECTION 15. Sections 162.1025(a), (b), and (c), Tax Code,
730	730	are amended to read as follows:
731	731	(a) In each subsequent sale of gasoline on which the taxes
732	732	imposed by this subchapter have [tax has] been paid, the taxes [tax
733	733	imposed by this subchapter] shall be collected from the purchaser
734	734	so that the taxes are [tax is] paid ultimately by the person who
735	735	uses the gasoline. Gasoline is considered to be used when it is
736	736	delivered into a fuel supply tank.
737	737	(b) The taxes [tax] imposed by this subchapter must be
738	738	stated separately from the sales price of gasoline and identified
739	739	as gasoline taxes [tax] on the invoice or receipt issued to a
740	740	purchaser. Backup gasoline taxes [tax] may be identified as
741	741	gasoline taxes [tax]. The taxes [tax] must be separately stated and
742	742	identified in the same manner on a shipping document, if the
743	743	shipping document includes the sales price of the gasoline.
744	744	(c) Except as provided by Subsection (d), the sales price of
745	745	gasoline stated on an invoice, receipt, or shipping document is
746	746	presumed to be exclusive of the taxes [tax] imposed by this
747	747	subchapter. The seller or purchaser may overcome the presumption
748	748	by using the seller's records to show that the taxes [tax] imposed
749	749	by this subchapter were [was] included in the sales price.
750	750	SECTION 16. The heading to Section 162.103, Tax Code, is
751	751	amended to read as follows:
752	752	Sec. 162.103. BACKUP STATE GASOLINE TAX; LIABILITY.
753	753	SECTION 17. Sections 162.103(a) and (c), Tax Code, are
754	754	amended to read as follows:
755	755	(a) A backup tax is imposed at the rate prescribed by
756	756	Section 162.102(a) [162.102] on:
757	757	(1) a person who obtains a refund of tax on gasoline by
758	758	claiming the gasoline was used for an off-highway purpose, but
759	759	actually uses the gasoline to operate a motor vehicle on a public
760	760	highway;
761	761	(2) a person who operates a motor vehicle on a public
762	762	highway using gasoline on which tax has not been paid;
763	763	(3) a person who sells to the ultimate consumer
764	764	gasoline on which tax has not been paid and who knew or had reason to
765	765	know that the gasoline would be used for a taxable purpose; and
766	766	(4) a person, other than a person exempted under
767	767	Section 162.104, who acquires gasoline on which tax has not been
768	768	paid from any source in this state.
769	769	(c) The tax imposed by [under] Subsection (a)(3) is also
770	770	imposed on the ultimate consumer.
771	771	SECTION 18. Subchapter B, Chapter 162, Tax Code, is amended
772	772	by adding Section 162.1035 to read as follows:
773	773	Sec. 162.1035. BACKUP COUNTY GASOLINE TAX; LIABILITY. (a)
774	774	A backup tax is imposed at the rate prescribed by Section 162.102(b)
775	775	on:
776	776	(1) a person who, in a taxing county:
777	777	(A) delivers gasoline into the fuel supply tank
778	778	of a motor vehicle;
779	779	(B) purchases or receives gasoline from another
780	780	person; or
781	781	(C) sells or delivers gasoline to another person;
782	782	and
783	783	(2) a person who obtains a refund of the tax imposed by
784	784	Section 162.1011 for gasoline that the person delivered into the
785	785	fuel supply tank of a motor vehicle, purchased or acquired, or sold
786	786	or delivered in a taxing county.
787	787	(b) A person who sells gasoline subject to the tax imposed
788	788	by this section shall at the time of sale collect the tax from the
789	789	purchaser or recipient of the gasoline in addition to the selling
790	790	price and is liable to this state for the taxes collected at the
791	791	time and in the manner provided by this chapter.
792	792	(c) The following are exempt from the tax imposed by this
793	793	section:
794	794	(1) gasoline on which the tax imposed by Section
795	795	162.1011 has been paid; and
796	796	(2) gasoline exempt under Section 162.104.
797	797	(d) The tax imposed by this section is in addition to any
798	798	penalty imposed under this chapter.
799	799	SECTION 19. Section 162.104(a), Tax Code, is amended to
800	800	read as follows:
801	801	(a) The taxes [tax] imposed by this subchapter do [does] not
802	802	apply to gasoline:
803	803	(1) sold to the United States for its exclusive use,
804	804	provided that the exemption does not apply with respect to fuel sold
805	805	or delivered to a person operating under a contract with the United
806	806	States;
807	807	(2) sold to a public school district in this state for
808	808	the district's exclusive use;
809	809	(3) sold to a commercial transportation company or a
810	810	metropolitan rapid transit authority operating under Chapter 451,
811	811	Transportation Code, that provides public school transportation
812	812	services to a school district under Section 34.008, Education Code,
813	813	and that uses the gasoline only to provide those services;
814	814	(4) exported by either a licensed supplier or a
815	815	licensed exporter from this state to any other state, provided that
816	816	the bill of lading indicates the destination state and the supplier
817	817	collects the destination state tax;
818	818	(5) moved by truck or railcar between licensed
819	819	suppliers or licensed permissive suppliers and in which the
820	820	gasoline removed from the first terminal comes to rest in the second
821	821	terminal, provided that the removal from the second terminal rack
822	822	is subject to the state gasoline tax imposed by this subchapter;
823	823	(6) delivered or sold into a storage facility of a
824	824	licensed aviation fuel dealer from which gasoline will be delivered
825	825	solely into the fuel supply tanks of aircraft or aircraft servicing
826	826	equipment, or sold from one licensed aviation fuel dealer to
827	827	another licensed aviation fuel dealer who will deliver the aviation
828	828	fuel exclusively into the fuel supply tanks of aircraft or aircraft
829	829	servicing equipment;
830	830	(7) exported to a foreign country if the bill of lading
831	831	indicates the foreign destination and the fuel is actually exported
832	832	to the foreign country;
833	833	(8) sold to a volunteer fire department in this state
834	834	for the department's exclusive use; or
835	835	(9) sold to a nonprofit entity that is organized for
836	836	the sole purpose of and engages exclusively in providing emergency
837	837	medical services and that uses the gasoline exclusively to provide
838	838	emergency medical services, including rescue and ambulance
839	839	services.
840	840	SECTION 20. Section 162.105, Tax Code, is amended to read as
841	841	follows:
842	842	Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. A person
843	843	shall obtain the appropriate license or licenses issued by the
844	844	comptroller before conducting the activities of:
845	845	(1) a supplier, who may also act as a distributor,
846	846	importer, exporter, blender, motor fuel transporter, dealer, or
847	847	aviation fuel dealer without securing a separate license, but who
848	848	is subject to all other conditions, requirements, and liabilities
849	849	imposed on those license holders;
850	850	(2) a permissive supplier, who may also act as a
851	851	distributor, importer, exporter, blender, motor fuel transporter,
852	852	dealer, or aviation fuel dealer without securing a separate
853	853	license, but who is subject to all other conditions, requirements,
854	854	and liabilities imposed on those license holders;
855	855	(3) a distributor, who may also act as an importer,
856	856	exporter, blender, [or] motor fuel transporter, or dealer without
857	857	securing a separate license, but who is subject to all other
858	858	conditions, requirements, and liabilities imposed on those license
859	859	holders;
860	860	(4) an importer, who may also act as an exporter,
861	861	blender, [or] motor fuel transporter, or dealer without securing a
862	862	separate license, but who is subject to all other conditions,
863	863	requirements, and liabilities imposed on those license holders;
864	864	(5) a terminal operator;
865	865	(6) an exporter;
866	866	(7) a blender;
867	867	(8) a motor fuel transporter;
868	868	(9) an aviation fuel dealer; [or]
869	869	(10) an interstate trucker; or
870	870	(11) a dealer.
871	871	SECTION 21. Sections 162.107(a) and (b), Tax Code, are
872	872	amended to read as follows:
873	873	(a) A person may elect to obtain a permissive supplier
874	874	license to collect the state gasoline tax imposed by [under] this
875	875	subchapter for gasoline that is removed at a terminal in another
876	876	state and has this state as the destination state.
877	877	(b) With respect to gasoline that is removed by the licensed
878	878	permissive supplier at a terminal located in another state and that
879	879	has this state as the destination state, a licensed permissive
880	880	supplier shall:
881	881	(1) collect the state gasoline tax due to this state on
882	882	the gasoline;
883	883	(2) waive any defense that this state lacks
884	884	jurisdiction to require the supplier to collect the state gasoline
885	885	tax due to this state on the gasoline under this subchapter;
886	886	(3) report and pay the state gasoline tax and the
887	887	county gasoline tax due on the gasoline in the same manner as if the
888	888	removal had occurred at a terminal located in this state;
889	889	(4) keep records of the removal of the gasoline and
890	890	submit to audits concerning the gasoline as if the removal had
891	891	occurred at a terminal located in this state; and
892	892	(5) report sales by the permissive supplier to a
893	893	person who is not licensed in this state.
894	894	SECTION 22. Section 162.108, Tax Code, is amended by adding
895	895	Subsection (a-1) to read as follows:
896	896	(a-1) In addition to the information required by Subsection
897	897	(a), an applicant for a license as a dealer must list on the
898	898	application:
899	899	(1) the street address, city, county, and zip code of
900	900	the location for which the applicant seeks a license to sell or
901	901	dispense motor fuel at retail;
902	902	(2) the applicant's social security number, driver's
903	903	license number, and federal employer identification number if the
904	904	applicant is a natural person who is not licensed as a supplier,
905	905	permissive supplier, or terminal operator; and
906	906	(3) if the applicant is a corporation, limited
907	907	liability company, professional association, partnership, or other
908	908	entity that is not licensed as a supplier, permissive supplier, or
909	909	terminal operator and is not wholly owned by an entity that is
910	910	licensed as a supplier, permissive supplier, or terminal operator,
911	911	the physical address, mailing address, social security number, and
912	912	driver's license number of:
913	913	(A) each natural person responsible for the
914	914	purchase of motor fuel for sale by the applicant; and
915	915	(B) each officer, director, manager, member,
916	916	shareholder, and partner of the applicant.
917	917	SECTION 23. Section 162.110(a), Tax Code, is amended to
918	918	read as follows:
919	919	(a) The license issued to a supplier, permissive supplier,
920	920	distributor, importer, exporter, terminal operator, blender, [or]
921	921	motor fuel transporter, or dealer is permanent and is valid during
922	922	the period the license holder has in force and effect the required
923	923	bond or security and furnishes timely reports and supplements as
924	924	required, or until the license is surrendered by the holder or
925	925	canceled by the comptroller. The comptroller shall cancel a
926	926	license under this subsection if a purchase, sale, or use of
927	927	gasoline has not been reported by the license holder during the
928	928	previous nine months.
929	929	SECTION 24. Section 162.111(a), Tax Code, is amended to
930	930	read as follows:
931	931	(a) The comptroller shall determine the amount of security
932	932	required of a supplier, permissive supplier, distributor,
933	933	exporter, importer, dealer, or blender, taking into consideration
934	934	the amount of tax that has or is expected to become due from the
935	935	person, any past history of the person as a license holder under
936	936	this chapter or its predecessor, and the necessity to protect this
937	937	state against the failure to pay the tax as the tax becomes due.
938	938	SECTION 25. Sections 162.112(a) and (b), Tax Code, are
939	939	amended to read as follows:
940	940	(a) The comptroller, on or before December 20 of each year,
941	941	shall make available to all license holders an alphabetical list of
942	942	licensed suppliers, permissive suppliers, distributors, aviation
943	943	fuel dealers, importers, exporters, blenders, dealers, and
944	944	terminal operators. A supplemental list of additions and deletions
945	945	shall be made available to the license holders each month. A
946	946	current and effective license or the list furnished by the
947	947	comptroller is evidence of the validity of the license until the
948	948	comptroller notifies license holders of a change in the status of a
949	949	license holder.
950	950	(b) A licensed supplier, permissive supplier, dealer, or
951	951	distributor who sells gasoline tax-free to a person whose
952	952	supplier's, permissive supplier's, dealer's, or aviation fuel
953	953	dealer's license has been canceled or revoked under this chapter is
954	954	liable for any tax due on gasoline sold after receiving notice of
955	955	the cancellation or revocation.
956	956	SECTION 26. Sections 162.113(d), (d-1), and (e), Tax Code,
957	957	are amended to read as follows:
958	958	(d) The supplier or permissive supplier, after requesting a
959	959	credit under this section, shall terminate the ability of the
960	960	licensed distributor or licensed importer to defer the payment of
961	961	state gasoline tax. The supplier or permissive supplier may not
962	962	reinstate the right of the licensed distributor or licensed
963	963	importer to defer the payment of state gasoline tax until the first
964	964	anniversary of the date the supplier or permissive supplier
965	965	requested the credit, subject to Subsection (d-1).
966	966	(d-1) A supplier or permissive supplier may reinstate the
967	967	right of a licensed distributor or licensed importer to defer the
968	968	payment of state gasoline tax before the date prescribed by
969	969	Subsection (d) if the comptroller determines that:
970	970	(1) the supplier or permissive supplier erroneously
971	971	requested the credit that resulted in the termination of the
972	972	licensed distributor's or licensed importer's right to defer
973	973	payment; or
974	974	(2) the licensed distributor or licensed importer
975	975	failed to pay state gasoline taxes due because of circumstances
976	976	that may have been outside the distributor's or importer's control.
977	977	(e) A licensed distributor or licensed importer who makes
978	978	timely payments of the state gasoline tax imposed by [under] this
979	979	subchapter is entitled to retain an amount equal to 1.75 percent of
980	980	the total state gasoline tax [taxes] to be paid to the supplier or
981	981	permissive supplier to cover administrative expenses.
982	982	SECTION 27. Section 162.114(a), Tax Code, is amended to
983	983	read as follows:
984	984	(a) Except as provided by Subsection (b), each person who is
985	985	liable for the taxes [tax] imposed by this subchapter, a terminal
986	986	operator, a dealer, and a licensed distributor shall file a return
987	987	on or before the 25th day of the month following the end of each
988	988	calendar month.
989	989	SECTION 28. Sections 162.115(b), (c), (e), (g), and (h),
990	990	Tax Code, are amended to read as follows:
991	991	(b) A distributor shall keep:
992	992	(1) a record showing the number of gallons of:
993	993	(A) all gasoline inventories on hand at the first
994	994	of each month;
995	995	(B) all gasoline blended;
996	996	(C) all gasoline purchased or received, showing
997	997	the name of the seller and the date of each purchase or receipt;
998	998	(D) all gasoline sold, distributed, or used,
999	999	showing:
1000	1000	(i) the name of the purchaser;
1001	1001	(ii) the county in this state to which the
1002	1002	gasoline was delivered;
1003	1003	(iii) the amount of county gasoline tax
1004	1004	collected from the purchaser; and
1005	1005	(iv) the date of the sale, distribution, or
1006	1006	use; and
1007	1007	(E) all gasoline lost by fire, theft, or
1008	1008	accident;
1009	1009	(2) an itemized statement showing by load the number
1010	1010	of gallons of all gasoline:
1011	1011	(A) received during the preceding calendar month
1012	1012	for export and the location of the loading;
1013	1013	(B) sold, distributed, or used, showing:
1014	1014	(i) the name of the purchaser;
1015	1015	(ii) the county or counties in this state;
1016	1016	(iii) the amount of county gasoline tax
1017	1017	collected from the purchaser; and
1018	1018	(iv) the date of the sale, distribution, or
1019	1019	use;
1020	1020	(C) exported from this state by destination state
1021	1021	or country; and
1022	1022	(D) [(C)] imported during the preceding calendar
1023	1023	month by state or country of origin; [and]
1024	1024	(3) for gasoline exported from this state, proof of
1025	1025	payment of tax to the destination state in a form acceptable to the
1026	1026	comptroller; and
1027	1027	(4) all shipping documents.
1028	1028	(c) An importer shall keep:
1029	1029	(1) a record showing the number of gallons of:
1030	1030	(A) all gasoline inventories on hand at the first
1031	1031	of each month;
1032	1032	(B) all gasoline compounded or blended;
1033	1033	(C) all gasoline purchased or received, showing
1034	1034	the name of the seller and the date of each purchase or receipt;
1035	1035	(D) all gasoline sold, distributed, or used,
1036	1036	showing the name of the purchaser, the county in this state, and the
1037	1037	date of the sale, distribution, or use; and
1038	1038	(E) all gasoline lost by fire, theft, or
1039	1039	accident; and
1040	1040	(2) an itemized statement showing by load the number
1041	1041	of gallons of all gasoline:
1042	1042	(A) received during the preceding calendar month
1043	1043	for export and the location of the loading;
1044	1044	(B) sold, distributed, or used, showing the name
1045	1045	of the purchaser, the county or counties in this state, and the date
1046	1046	of the sale, distribution, or use;
1047	1047	(C) exported from this state by destination state
1048	1048	or country; and
1049	1049	(D) [(C)] imported during the preceding calendar
1050	1050	month by state or country of origin.
1051	1051	(e) A blender shall keep a record showing the number of
1052	1052	gallons of:
1053	1053	(1) all gasoline inventories on hand at the first of
1054	1054	each month;
1055	1055	(2) all gasoline compounded or blended;
1056	1056	(3) all gasoline purchased or received, showing the
1057	1057	name of the seller and the date of each purchase or receipt;
1058	1058	(4) all gasoline sold, distributed, or used, showing
1059	1059	the name of the purchaser, the county in this state, and the date of
1060	1060	the sale or use; and
1061	1061	(5) all gasoline lost by fire, theft, or accident.
1062	1062	(g) A motor fuel transporter shall keep a complete and
1063	1063	separate record of each intrastate and interstate transportation of
1064	1064	gasoline, showing:
1065	1065	(1) the date of transportation;
1066	1066	(2) the name of the consignor and consignee;
1067	1067	(3) the means of transportation;
1068	1068	(4) the quantity and kind of gasoline transported;
1069	1069	(5) full data concerning the diversion of shipments,
1070	1070	including the county in this state and the number of gallons
1071	1071	diverted from interstate to intrastate and intrastate to interstate
1072	1072	commerce; and
1073	1073	(6) the points of origin and destination, the county
1074	1074	in this state, the number of gallons shipped or transported, the
1075	1075	date, the consignee and the consignor, and the kind of gasoline that
1076	1076	has been diverted.
1077	1077	(h) A dealer shall keep a record showing the number of
1078	1078	gallons of:
1079	1079	(1) gasoline inventories on hand at the first of each
1080	1080	month;
1081	1081	(2) all gasoline purchased or received, showing the
1082	1082	name of the seller and the date of each purchase or receipt;
1083	1083	(3) all gasoline sold or used, showing the date of the
1084	1084	sale or use; [and]
1085	1085	(4) all gasoline lost by fire, theft, or accident; and
1086	1086	(5) the shipping documents.
1087	1087	SECTION 29. Section 162.116(c), Tax Code, is amended to
1088	1088	read as follows:
1089	1089	(c) A supplier or permissive supplier may take a credit for
1090	1090	any state gasoline tax [taxes] that was [were] not remitted in a
1091	1091	previous period to the supplier or permissive supplier by a
1092	1092	licensed distributor or licensed importer as required by Section
1093	1093	162.113. The supplier or permissive supplier is eligible to take
1094	1094	the credit if the comptroller is notified of the default within 15
1095	1095	days after the default occurs. If a license holder pays to a
1096	1096	supplier or permissive supplier the tax owed, but the payment
1097	1097	occurs after the supplier or permissive supplier has taken a credit
1098	1098	on its return, the supplier or permissive supplier shall remit the
1099	1099	payment to the comptroller with the next monthly return after
1100	1100	receipt of the tax, plus a penalty of 10 percent of the amount of
1101	1101	unpaid taxes and interest at the rate provided by Section 111.060
1102	1102	beginning on the date the credit was taken.
1103	1103	SECTION 30. Section 162.118, Tax Code, is amended to read as
1104	1104	follows:
1105	1105	Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
1106	1106	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return
1107	1107	and supplements of each distributor shall contain for the period
1108	1108	covered by the return:
1109	1109	(1) the number of net gallons of gasoline received by
1110	1110	the distributor during the month, sorted by product code, seller,
1111	1111	point of origin, destination state, carrier, and receipt date;
1112	1112	(2) the number of net gallons of gasoline removed at a
1113	1113	terminal rack by the distributor during the month, sorted by
1114	1114	product code, seller, terminal code, and carrier;
1115	1115	(3) the number of net gallons of gasoline removed by
1116	1116	the distributor during the month for export, sorted by product
1117	1117	code, terminal code, bulk plant address, destination state, and
1118	1118	carrier;
1119	1119	(4) the number of net gallons of gasoline removed by
1120	1120	the distributor during the month from a terminal located in another
1121	1121	state for conveyance to this state, as indicated on the shipping
1122	1122	document for the gasoline, sorted by product code, seller, terminal
1123	1123	code, bulk plant address, and carrier;
1124	1124	(5) the number of net gallons of gasoline the
1125	1125	distributor sold during the month in transactions exempt under
1126	1126	Section 162.104, sorted by product code and purchaser; [and]
1127	1127	(6) the number of net gallons delivered into a taxing
1128	1128	county sorted by taxing county and purchaser; and
1129	1129	(7) any other information required by the comptroller.
1130	1130	(b) A distributor or importer who makes timely payments of
1131	1131	the county tax imposed by this subchapter is entitled to retain an
1132	1132	amount equal to two percent of the total county gasoline taxes
1133	1133	remitted to the comptroller to cover administrative expenses.
1134	1134	SECTION 31. Section 162.123, Tax Code, is amended to read as
1135	1135	follows:
1136	1136	Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN.
1137	1137	The monthly return and supplements of each blender shall contain
1138	1138	for the period covered by the return:
1139	1139	(1) the number of net gallons of gasoline received by
1140	1140	the blender during the month, sorted by product code, seller, point
1141	1141	of origin, carrier, and receipt date;
1142	1142	(2) the number of net gallons of product blended with
1143	1143	gasoline during the month, sorted by product code, type of blending
1144	1144	agent if no product code exists, seller, and carrier;
1145	1145	(3) the number of net gallons of blended gasoline sold
1146	1146	during the month and the license number or name, [and] address, and
1147	1147	county in this state of the entity receiving the blended gasoline;
1148	1148	and
1149	1149	(4) any other information required by the comptroller.
1150	1150	SECTION 32. Subchapter B, Chapter 162, Tax Code, is amended
1151	1151	by adding Section 162.1235 to read as follows:
1152	1152	Sec. 162.1235. INFORMATION REQUIRED ON DEALER'S RETURN.
1153	1153	The monthly return and supplements of each dealer shall contain for
1154	1154	the period covered by the return:
1155	1155	(1) the number of gallons of gasoline inventories on
1156	1156	hand at the first of each month, sorted by product code;
1157	1157	(2) the number of gallons of gasoline received by the
1158	1158	dealer during the month, sorted by seller;
1159	1159	(3) the number of gallons of gasoline inventories on
1160	1160	hand at the end of each month; and
1161	1161	(4) any other information required by the comptroller.
1162	1162	SECTION 33. Sections 162.125(g-1) and (g-2), Tax Code, are
1163	1163	amended to read as follows:
1164	1164	(g-1) A volunteer fire department exempt from the taxes
1165	1165	[tax] imposed under this subchapter that paid a tax on the purchase
1166	1166	of gasoline is entitled to a refund of the tax paid, and the
1167	1167	volunteer fire department may file a refund claim with the
1168	1168	comptroller for that amount.
1169	1169	(g-2) A nonprofit entity exempted under Section
1170	1170	162.104(a)(9) from the taxes [tax] imposed under this subchapter
1171	1171	that paid a tax on the purchase of gasoline is entitled to a refund
1172	1172	of the tax paid, and the entity may file a refund claim with the
1173	1173	comptroller for that amount.
1174	1174	SECTION 34. Sections 162.127(a) and (d), Tax Code, are
1175	1175	amended to read as follows:
1176	1176	(a) A refund claim must be filed on a form provided by the
1177	1177	comptroller, be supported by the original invoice issued by the
1178	1178	seller, and contain:
1179	1179	(1) the stamped or preprinted name and address,
1180	1180	including county in this state, of the seller;
1181	1181	(2) the name and address of the purchaser;
1182	1182	(3) the date of delivery of the gasoline;
1183	1183	(4) the date of the issuance of the invoice, if
1184	1184	different from the date of fuel delivery;
1185	1185	(5) the number of gallons of gasoline delivered;
1186	1186	(6) the amount of state or county gasoline taxes paid
1187	1187	[tax], either separately stated from the selling price or stated
1188	1188	with a notation that both state and county taxes are included if
1189	1189	both apply [the selling price includes the tax]; and
1190	1190	(7) the type of vehicle or equipment, such as a
1191	1191	motorboat, railway engine, motor vehicle, off-highway vehicle, or
1192	1192	refrigeration unit or stationary engine, into which the fuel is
1193	1193	delivered.
1194	1194	(d) A distributor or person who does not hold a license who
1195	1195	files a valid refund claim with the comptroller shall be paid by a
1196	1196	warrant issued by the comptroller. For purposes of this section, a
1197	1197	distributor meets the requirement of filing a valid refund claim
1198	1198	for state and county gasoline taxes if the distributor designates
1199	1199	the gallons of gasoline sold or used that are the subject of the
1200	1200	refund claim on the monthly report submitted by the distributor to
1201	1201	the comptroller.
1202	1202	SECTION 35. The heading to Section 162.201, Tax Code, is
1203	1203	amended to read as follows:
1204	1204	Sec. 162.201. POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
1205	1205	SECTION 36. Sections 162.201(a), (b), (c), and (f), Tax
1206	1206	Code, are amended to read as follows:
1207	1207	(a) A tax is imposed on the removal of diesel fuel from the
1208	1208	terminal using the terminal rack other than by bulk transfer. The
1209	1209	supplier or permissive supplier is liable for and shall collect the
1210	1210	tax imposed by this section [subchapter] from the person who orders
1211	1211	the withdrawal at the terminal rack.
1212	1212	(b) A tax is imposed at the time diesel fuel is imported into
1213	1213	this state, other than by a bulk transfer, for delivery to a
1214	1214	destination in this state. The supplier or permissive supplier is
1215	1215	liable for and shall collect the tax imposed by this section
1216	1216	[subchapter] from the person who imports the diesel fuel into this
1217	1217	state. If the seller is not a supplier or permissive supplier, the
1218	1218	person who imports the diesel fuel into this state is liable for and
1219	1219	shall pay the tax.
1220	1220	(c) A tax is imposed on the removal of diesel fuel from the
1221	1221	bulk transfer/terminal system in this state. The supplier is
1222	1222	liable for and shall collect the tax imposed by this section
1223	1223	[subchapter] from the person who orders the removal from the bulk
1224	1224	transfer/terminal system.
1225	1225	(f) The terminal operator in this state is considered a
1226	1226	supplier for the purpose of the tax imposed under this section
1227	1227	[subchapter] unless at the time of removal:
1228	1228	(1) the terminal operator has a terminal operator's
1229	1229	license issued for the facility from which the diesel fuel is
1230	1230	withdrawn;
1231	1231	(2) the terminal operator verifies that the person who
1232	1232	removes the diesel fuel has a supplier's license; and
1233	1233	(3) the terminal operator does not have a reason to
1234	1234	believe that the supplier's license is not valid.
1235	1235	SECTION 37. Subchapter C, Chapter 162, Tax Code, is amended
1236	1236	by adding Section 162.2011 to read as follows:
1237	1237	Sec. 162.2011. COUNTY DIESEL FUEL TAX IMPOSED; POINT OF
1238	1238	COLLECTION. (a) In a county that imposes the tax on motor vehicle
1239	1239	fuels authorized by Chapter 616, Local Government Code, a tax is
1240	1240	imposed on the delivery of diesel fuel into the taxing county.
1241	1241	(b) The distributor shall collect the tax imposed by this
1242	1242	section from each person on delivery of diesel fuel into a taxing
1243	1243	county.
1244	1244	(c) A tax is imposed on diesel fuel that is otherwise exempt
1245	1245	from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
1246	1246	is sold in this state to a person who does not hold a license under
1247	1247	Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
1248	1248	subsequently delivered into a taxing county. The person who
1249	1249	delivered the diesel fuel into the taxing county is liable for and
1250	1250	shall collect the tax.
1251	1251	(d) A tax is imposed on diesel fuel that is otherwise exempt
1252	1252	from taxation under Section 162.204(a)(4) or (7) if before export
1253	1253	the diesel fuel is sold in this state to a person who holds a license
1254	1254	under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
1255	1255	fuel is subsequently delivered to a taxing county. The person who
1256	1256	delivered the diesel fuel into the taxing county is liable for and
1257	1257	shall pay the tax.
1258	1258	(e) In each subsequent sale of diesel fuel on which the tax
1259	1259	has been paid, the tax imposed by this section shall be collected
1260	1260	from the purchaser so that the tax is paid ultimately by the person
1261	1261	who uses the diesel fuel. Diesel fuel is considered to be used when
1262	1262	it is delivered into a fuel supply tank.
1263	1263	SECTION 38. Section 162.202, Tax Code, is amended to read as
1264	1264	follows:
1265	1265	Sec. 162.202. TAX RATES [RATE]. (a) The state diesel fuel
1266	1266	tax rate is 20 cents for each net gallon or fractional part of a net
1267	1267	gallon on which the tax is imposed under Section 162.201.
1268	1268	(b) In a taxing county, the county diesel fuel tax rate for
1269	1269	each net gallon or fractional part of a net gallon is the rate
1270	1270	established by Chapter 616, Local Government Code.
1271	1271	SECTION 39. The heading to Section 162.2025, Tax Code, is
1272	1272	amended to read as follows:
1273	1273	Sec. 162.2025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
1274	1274	FROM PURCHASER.
1275	1275	SECTION 40. Sections 162.2025(a), (b), and (c), Tax Code,
1276	1276	are amended to read as follows:
1277	1277	(a) In each subsequent sale of diesel fuel on which the
1278	1278	taxes imposed by this subchapter have [tax has] been paid, the taxes
1279	1279	[tax imposed by this subchapter] shall be collected from the
1280	1280	purchaser so that the taxes are [tax is] paid ultimately by the
1281	1281	person who uses the diesel fuel. Diesel fuel is considered to be
1282	1282	used when it is delivered into a fuel supply tank.
1283	1283	(b) The taxes [tax] imposed by this subchapter must be
1284	1284	stated separately from the sales price of diesel fuel and
1285	1285	identified as diesel fuel taxes [tax] on the invoice or receipt
1286	1286	issued to a purchaser. Backup diesel fuel taxes [tax] may be
1287	1287	identified as diesel fuel taxes [tax]. The taxes [tax] must be
1288	1288	separately stated and identified in the same manner on a shipping
1289	1289	document, if the shipping document includes the sales price of the
1290	1290	diesel fuel.
1291	1291	(c) Except as provided by Subsection (d), the sales price of
1292	1292	diesel fuel stated on an invoice, receipt, or shipping document is
1293	1293	presumed to be exclusive of the taxes [tax] imposed by this
1294	1294	subchapter. The seller or purchaser may overcome the presumption
1295	1295	by using the seller's records to show that the taxes [tax] imposed
1296	1296	by this subchapter were [was] included in the sales price.
1297	1297	SECTION 41. The heading to Section 162.203, Tax Code, is
1298	1298	amended to read as follows:
1299	1299	Sec. 162.203. BACKUP STATE DIESEL FUEL TAX; LIABILITY.
1300	1300	SECTION 42. Sections 162.203(a) and (c), Tax Code, are
1301	1301	amended to read as follows:
1302	1302	(a) A backup tax is imposed at the rate prescribed by
1303	1303	Section 162.202(a) [162.202] on:
1304	1304	(1) a person who obtains a refund of tax on diesel fuel
1305	1305	by claiming the diesel fuel was used for an off-highway purpose, but
1306	1306	actually uses the diesel fuel to operate a motor vehicle on a public
1307	1307	highway;
1308	1308	(2) a person who operates a motor vehicle on a public
1309	1309	highway using diesel fuel on which tax has not been paid;
1310	1310	(3) a person who sells to the ultimate consumer diesel
1311	1311	fuel on which a tax has not been paid and who knew or had reason to
1312	1312	know that the diesel fuel would be used for a taxable purpose; and
1313	1313	(4) a person, other than a person exempted under
1314	1314	Section 162.204, who acquires diesel fuel on which tax has not been
1315	1315	paid from any source in this state.
1316	1316	(c) The tax imposed by [under] Subsection (a)(3) is also
1317	1317	imposed on the ultimate consumer.
1318	1318	SECTION 43. Subchapter C, Chapter 162, Tax Code, is amended
1319	1319	by adding Section 162.2035 to read as follows:
1320	1320	Sec. 162.2035. BACKUP COUNTY DIESEL FUEL TAX; LIABILITY.
1321	1321	(a) A backup tax is imposed at the rate prescribed by Section
1322	1322	162.202(b) on:
1323	1323	(1) a person who, in a taxing county:
1324	1324	(A) delivers diesel fuel into the fuel supply
1325	1325	tank of a motor vehicle;
1326	1326	(B) purchases or receives diesel fuel from
1327	1327	another person; or
1328	1328	(C) sells or delivers diesel fuel to another
1329	1329	person; and
1330	1330	(2) a person who obtains a refund of the tax imposed by
1331	1331	Section 162.2011 for diesel fuel that the person delivered into the
1332	1332	fuel supply tank of a motor vehicle, purchased or acquired, or sold
1333	1333	or delivered in a taxing county.
1334	1334	(b) A person who sells diesel fuel subject to the tax
1335	1335	imposed by this section shall at the time of sale collect the tax
1336	1336	from the purchaser or recipient of the diesel fuel in addition to
1337	1337	the selling price and is liable to this state for the taxes
1338	1338	collected at the time and in the manner provided by this chapter.
1339	1339	(c) The following are exempt from the tax imposed by this
1340	1340	section:
1341	1341	(1) diesel fuel on which the tax imposed by Section
1342	1342	162.2011 had been paid; and
1343	1343	(2) diesel fuel exempt under Section 162.204.
1344	1344	(d) The tax imposed by this section is in addition to any
1345	1345	penalty imposed under this chapter.
1346	1346	SECTION 44. Sections 162.204(a) and (g), Tax Code, are
1347	1347	amended to read as follows:
1348	1348	(a) The taxes [tax] imposed by this subchapter do [does] not
1349	1349	apply to:
1350	1350	(1) diesel fuel sold to the United States for its
1351	1351	exclusive use, provided that the exemption does not apply to diesel
1352	1352	fuel sold or delivered to a person operating under a contract with
1353	1353	the United States;
1354	1354	(2) diesel fuel sold to a public school district in
1355	1355	this state for the district's exclusive use;
1356	1356	(3) diesel fuel sold to a commercial transportation
1357	1357	company or a metropolitan rapid transit authority operating under
1358	1358	Chapter 451, Transportation Code, that provides public school
1359	1359	transportation services to a school district under Section 34.008,
1360	1360	Education Code, and that uses the diesel fuel only to provide those
1361	1361	services;
1362	1362	(4) diesel fuel exported by either a licensed supplier
1363	1363	or a licensed exporter from this state to any other state, provided
1364	1364	that the bill of lading indicates the destination state and the
1365	1365	supplier collects the destination state tax;
1366	1366	(5) diesel fuel moved by truck or railcar between
1367	1367	licensed suppliers or licensed permissive suppliers and in which
1368	1368	the diesel fuel removed from the first terminal comes to rest in the
1369	1369	second terminal, provided that the removal from the second terminal
1370	1370	rack is subject to the state diesel fuel tax imposed by this
1371	1371	subchapter;
1372	1372	(6) diesel fuel delivered or sold into a storage
1373	1373	facility of a licensed aviation fuel dealer from which the diesel
1374	1374	fuel will be delivered solely into the fuel supply tanks of aircraft
1375	1375	or aircraft servicing equipment, or sold from one licensed aviation
1376	1376	fuel dealer to another licensed aviation fuel dealer who will
1377	1377	deliver the diesel fuel exclusively into the fuel supply tanks of
1378	1378	aircraft or aircraft servicing equipment;
1379	1379	(7) diesel fuel exported to a foreign country if the
1380	1380	bill of lading indicates the foreign destination and the fuel is
1381	1381	actually exported to the foreign country;
1382	1382	(8) dyed diesel fuel sold or delivered by a supplier to
1383	1383	another supplier and dyed diesel fuel sold or delivered by a
1384	1384	supplier or distributor into the bulk storage facility of a dyed
1385	1385	diesel fuel bonded user or to a purchaser who provides a signed
1386	1386	statement as provided by Section 162.206;
1387	1387	(9) the volume of water, fuel ethanol, renewable
1388	1388	diesel, biodiesel, or mixtures thereof that are blended together
1389	1389	with taxable diesel fuel when the finished product sold or used is
1390	1390	clearly identified on the retail pump, storage tank, and sales
1391	1391	invoice as a combination of diesel fuel and water, fuel ethanol,
1392	1392	renewable diesel, biodiesel, or mixtures thereof;
1393	1393	(10) dyed diesel fuel sold by a supplier or permissive
1394	1394	supplier to a distributor, or by a distributor to another
1395	1395	distributor;
1396	1396	(11) dyed diesel fuel delivered by a license holder
1397	1397	into the fuel supply tanks of railway engines, motorboats, or
1398	1398	refrigeration units or other stationary equipment powered by a
1399	1399	separate motor from a separate fuel supply tank;
1400	1400	(12) dyed kerosene when delivered by a supplier,
1401	1401	distributor, or importer into a storage facility at a retail
1402	1402	business from which all deliveries are exclusively for heating,
1403	1403	cooking, lighting, or similar nonhighway use;
1404	1404	(13) diesel fuel used by a person, other than a
1405	1405	political subdivision, who owns, controls, operates, or manages a
1406	1406	commercial motor vehicle as defined by Section 548.001,
1407	1407	Transportation Code, if the fuel:
1408	1408	(A) is delivered exclusively into the fuel supply
1409	1409	tank of the commercial motor vehicle; and
1410	1410	(B) is used exclusively to transport passengers
1411	1411	for compensation or hire between points in this state on a fixed
1412	1412	route or schedule;
1413	1413	(14) diesel fuel sold to a volunteer fire department
1414	1414	in this state for the department's exclusive use; or
1415	1415	(15) diesel fuel sold to a nonprofit entity that is
1416	1416	organized for the sole purpose of and engages exclusively in
1417	1417	providing emergency medical services and that uses the diesel fuel
1418	1418	exclusively to provide emergency medical services, including
1419	1419	rescue and ambulance services.
1420	1420	(g) In lieu of claiming the exemption and complying with the
1421	1421	labeling requirements provided by Subsection (a)(9), a person to
1422	1422	whom Section 162.201 applies may elect to collect and remit the
1423	1423	taxes [tax] otherwise imposed by [under] this subchapter on the
1424	1424	materials described by Subsection (a)(9) as if the materials were
1425	1425	taxable diesel fuel. The labeling requirements provided by
1426	1426	Subsection (a)(9) do not apply to a dealer who sells taxable diesel
1427	1427	fuel blended with materials described by Subsection (a)(9) on which
1428	1428	a tax has been paid as provided by this subsection. Materials
1429	1429	described by Subsection (a)(9) on which a tax has been paid as
1430	1430	provided by this subsection are not exempt from taxation [tax]
1431	1431	under Subsection (a)(9) on a subsequent sale, and a license holder
1432	1432	or other purchaser is not entitled to a refund or credit under
1433	1433	Subsection (a)(9) for a purchase of taxable diesel fuel blended
1434	1434	with those materials.
1435	1435	SECTION 45. Section 162.205(a), Tax Code, is amended to
1436	1436	read as follows:
1437	1437	(a) A person shall obtain the appropriate license or
1438	1438	licenses issued by the comptroller before conducting the activities
1439	1439	of:
1440	1440	(1) a supplier, who may also act as a distributor,
1441	1441	importer, exporter, blender, motor fuel transporter, dealer, or
1442	1442	aviation fuel dealer without securing a separate license, but who
1443	1443	is subject to all other conditions, requirements, and liabilities
1444	1444	imposed on those license holders;
1445	1445	(2) a permissive supplier, who may also act as a
1446	1446	distributor, importer, exporter, blender, motor fuel transporter,
1447	1447	dealer, or aviation fuel dealer without securing a separate license
1448	1448	but who is subject to all other conditions, requirements, and
1449	1449	liabilities imposed on those license holders;
1450	1450	(3) a distributor, who may also act as an importer,
1451	1451	exporter, blender, [or] motor fuel transporter, or dealer without
1452	1452	securing a separate license, but who is subject to all other
1453	1453	conditions, requirements, and liabilities imposed on those license
1454	1454	holders;
1455	1455	(4) an importer, who may also act as an exporter,
1456	1456	blender, [or] motor fuel transporter, or dealer without securing a
1457	1457	separate license, but who is subject to all other conditions,
1458	1458	requirements, and liabilities imposed on those license holders;
1459	1459	(5) a terminal operator;
1460	1460	(6) an exporter;
1461	1461	(7) a blender;
1462	1462	(8) a motor fuel transporter;
1463	1463	(9) an aviation fuel dealer;
1464	1464	(10) an interstate trucker; [or]
1465	1465	(11) a dyed diesel fuel bonded user; or
1466	1466	(12) a dealer.
1467	1467	SECTION 46. Section 162.206(d), Tax Code, is amended to
1468	1468	read as follows:
1469	1469	(d) Any gallons purchased or sold in excess of the
1470	1470	limitations prescribed by Subsection (c) constitute a [taxable
1471	1471	purchase or] sale subject to the taxes imposed by this chapter. A
1472	1472	purchaser that exceeds the limitations prescribed by Subsection (c)
1473	1473	shall be required to obtain a dyed diesel fuel bonded user license.
1474	1474	SECTION 47. Sections 162.208(a) and (b), Tax Code, are
1475	1475	amended to read as follows:
1476	1476	(a) A person may elect to obtain a permissive supplier
1477	1477	license to collect the state diesel fuel tax imposed by [under] this
1478	1478	subchapter for diesel fuel that is removed at a terminal in another
1479	1479	state and has this state as the destination state.
1480	1480	(b) With respect to diesel fuel that is removed by the
1481	1481	licensed permissive supplier at a terminal located in another state
1482	1482	and that has this state as the destination state, a licensed
1483	1483	permissive supplier shall:
1484	1484	(1) collect the state diesel fuel tax due to this state
1485	1485	on the diesel fuel;
1486	1486	(2) waive any defense that this state lacks
1487	1487	jurisdiction to require the supplier to collect the state diesel
1488	1488	fuel tax due to this state on the diesel fuel under this subchapter;
1489	1489	(3) report and pay the state diesel fuel tax due on the
1490	1490	diesel fuel in the same manner as if the removal had occurred at a
1491	1491	terminal located in this state;
1492	1492	(4) keep records of the removal of the diesel fuel and
1493	1493	submit to audits concerning the diesel fuel as if the removal had
1494	1494	occurred at a terminal located in this state; and
1495	1495	(5) report sales by the permissive supplier to a
1496	1496	person who is not licensed in this state.
1497	1497	SECTION 48. Section 162.209, Tax Code, is amended by adding
1498	1498	Subsection (a-1) to read as follows:
1499	1499	(a-1) In addition to the information required by Subsection
1500	1500	(a), an applicant for a license as a dealer must list on the
1501	1501	application:
1502	1502	(1) the street address, city, county, and zip code of
1503	1503	the location for which the applicant seeks a license to sell or
1504	1504	dispense motor fuel at retail;
1505	1505	(2) the applicant's social security number, driver's
1506	1506	license number, and federal employer identification number if the
1507	1507	applicant is a natural person who is not licensed as a supplier,
1508	1508	permissive supplier, or terminal operator; and
1509	1509	(3) if the applicant is a corporation, limited
1510	1510	liability company, professional association, partnership or other
1511	1511	entity that is not licensed as a supplier, permissive supplier, or
1512	1512	terminal operator and is not wholly owned by an entity that is
1513	1513	licensed as a supplier, permissive supplier, or terminal operator,
1514	1514	the physical address, mailing address, social security number, and
1515	1515	driver's license number of:
1516	1516	(A) each natural person responsible for the
1517	1517	purchase of motor fuel for sale by the applicant; and
1518	1518	(B) each officer, director, manager, member,
1519	1519	shareholder, and partner of the applicant.
1520	1520	SECTION 49. Section 162.211(a), Tax Code, is amended to
1521	1521	read as follows:
1522	1522	(a) The license issued to a supplier, permissive supplier,
1523	1523	distributor, importer, terminal supplier, exporter, blender,
1524	1524	dealer, motor fuel transporter, or dyed diesel fuel bonded user is
1525	1525	permanent and is valid during the period the license holder has in
1526	1526	force and effect the required bond or security and furnishes timely
1527	1527	reports and supplements as required, or until the license is
1528	1528	surrendered by the holder or canceled by the comptroller. The
1529	1529	comptroller shall cancel a license under this subsection if a
1530	1530	purchase, sale, or use of diesel fuel has not been reported by the
1531	1531	license holder during the previous nine months.
1532	1532	SECTION 50. Section 162.212(a), Tax Code, is amended to
1533	1533	read as follows:
1534	1534	(a) The comptroller shall determine the amount of security
1535	1535	required of a supplier, permissive supplier, distributor,
1536	1536	exporter, importer, dealer, blender, or dyed diesel fuel bonded
1537	1537	user, taking into consideration the amount of tax that has or is
1538	1538	expected to become due from the person, any past history of the
1539	1539	person as a license holder under this chapter and its predecessor,
1540	1540	and the necessity to protect this state against the failure to pay
1541	1541	the tax as the tax becomes due.
1542	1542	SECTION 51. Section 162.213(a), Tax Code, is amended to
1543	1543	read as follows:
1544	1544	(a) The comptroller, on or before December 20 of each year,
1545	1545	shall make available to all license holders an alphabetical list of
1546	1546	licensed suppliers, permissive suppliers, distributors, aviation
1547	1547	fuel dealers, importers, exporters, blenders, dealers, terminal
1548	1548	operators, and dyed diesel fuel bonded users. A supplemental list
1549	1549	of additions and deletions shall be made available to the license
1550	1550	holders each month. A current and effective license or the list
1551	1551	furnished by the comptroller is evidence of the validity of the
1552	1552	license until the comptroller notifies license holders of a change
1553	1553	in the status of a license holder.
1554	1554	SECTION 52. Sections 162.214(c), (d), (d-1), and (e), Tax
1555	1555	Code, are amended to read as follows:
1556	1556	(c) If the supplier or permissive supplier cannot secure
1557	1557	from the licensed distributor or licensed importer payment of taxes
1558	1558	due for state diesel fuel removed from the terminal during the
1559	1559	previous reporting period and the supplier elects to take a credit
1560	1560	against a subsequent payment of diesel fuel tax to this state for
1561	1561	the taxes not remitted to the supplier or permissive supplier by the
1562	1562	licensed distributor or licensed importer, the supplier or
1563	1563	permissive supplier shall notify the comptroller of the licensed
1564	1564	distributor's or licensed importer's failure to remit tax in
1565	1565	conjunction with the report requesting a credit.
1566	1566	(d) The supplier or permissive supplier, after requesting a
1567	1567	credit under this section, shall terminate the ability of the
1568	1568	licensed distributor or licensed importer to defer the payment of
1569	1569	state diesel fuel tax. The supplier or permissive supplier may not
1570	1570	reinstate the right of the licensed distributor or licensed
1571	1571	importer to defer the payment of state diesel fuel tax until the
1572	1572	first anniversary of the date the supplier or permissive supplier
1573	1573	requested the credit, subject to Subsection (d-1).
1574	1574	(d-1) A supplier or permissive supplier may reinstate the
1575	1575	right of a licensed distributor or licensed importer to defer the
1576	1576	payment of state diesel fuel tax before the date prescribed by
1577	1577	Subsection (d) if the comptroller determines that:
1578	1578	(1) the supplier or permissive supplier erroneously
1579	1579	requested the credit that resulted in the termination of the
1580	1580	licensed distributor's or licensed importer's right to defer
1581	1581	payment; or
1582	1582	(2) the licensed distributor or licensed importer
1583	1583	failed to pay state diesel fuel taxes due because of circumstances
1584	1584	that may have been outside the distributor's or importer's control.
1585	1585	(e) A licensed distributor or licensed importer who makes
1586	1586	timely payments of the state diesel fuel tax imposed by [under] this
1587	1587	subchapter is entitled to retain an amount equal to 1.75 percent of
1588	1588	the total state diesel fuel tax [taxes] to be paid to the supplier
1589	1589	or permissive supplier to cover administrative expenses.
1590	1590	SECTION 53. Section 162.215(a), Tax Code, is amended to
1591	1591	read as follows:
1592	1592	(a) Except as provided by Subsection (b), each person who is
1593	1593	liable for the taxes [tax] imposed by this subchapter, a terminal
1594	1594	operator, a dealer, and a licensed distributor shall file a return
1595	1595	on or before the 25th day of the month following the end of each
1596	1596	calendar month.
1597	1597	SECTION 54. Sections 162.216(b), (c), (e), (g), and (h),
1598	1598	Tax Code, are amended to read as follows:
1599	1599	(b) A distributor shall keep:
1600	1600	(1) a record showing the number of gallons of:
1601	1601	(A) all diesel fuel inventories on hand at the
1602	1602	first of each month;
1603	1603	(B) all diesel fuel blended;
1604	1604	(C) all diesel fuel purchased or received,
1605	1605	showing the name of the seller and the date of each purchase or
1606	1606	receipt;
1607	1607	(D) all diesel fuel sold, distributed, or used,
1608	1608	showing:
1609	1609	(i) the name of the purchaser;
1610	1610	(ii) the county or counties in this state;
1611	1611	(iii) the amount of county diesel fuel
1612	1612	collected from the purchaser; and
1613	1613	(iv) the date of the sale, distribution, or
1614	1614	use; and
1615	1615	(E) all diesel fuel lost by fire, theft, or
1616	1616	accident;
1617	1617	(2) an itemized statement showing by load the number
1618	1618	of gallons of all diesel fuel:
1619	1619	(A) received during the preceding calendar month
1620	1620	for export and the location of the loading;
1621	1621	(B) sold, distributed, or used, showing:
1622	1622	(i) the name of the purchaser;
1623	1623	(ii) the destination county or counties in
1624	1624	this state;
1625	1625	(iii) the amount of county diesel fuel tax
1626	1626	collected from the purchaser; and
1627	1627	(iv) the date of the sale, distribution, or
1628	1628	use;
1629	1629	(C) exported from this state by destination state
1630	1630	or country; and
1631	1631	(D) [(C)] imported during the preceding calendar
1632	1632	month, by state or country of origin; [and]
1633	1633	(3) for diesel fuel exported outside this state, proof
1634	1634	of payment of tax to the destination state, in a form acceptable to
1635	1635	the comptroller; and
1636	1636	(4) all shipping documents.
1637	1637	(c) An importer shall keep:
1638	1638	(1) a record showing the number of gallons of:
1639	1639	(A) all diesel fuel inventories on hand at the
1640	1640	first of each month;
1641	1641	(B) all diesel fuel compounded or blended;
1642	1642	(C) all diesel fuel purchased or received,
1643	1643	showing the name of the seller and the date of each purchase or
1644	1644	receipt;
1645	1645	(D) all diesel fuel sold, distributed, or used,
1646	1646	showing the name of the purchaser, the county in this state, and the
1647	1647	date of the sale, distribution, or use; and
1648	1648	(E) all diesel fuel lost by fire, theft, or
1649	1649	accident; and
1650	1650	(2) an itemized statement showing by load the number
1651	1651	of gallons of all diesel fuel:
1652	1652	(A) received during the preceding calendar month
1653	1653	for export and the location of the loading;
1654	1654	(B) sold, distributed, or used, showing the name
1655	1655	of the purchaser, the county or counties in this state, and the date
1656	1656	of sale, distribution, or use;
1657	1657	(C) exported from this state, by destination
1658	1658	state or country; and
1659	1659	(D) [(C)] imported during the preceding calendar
1660	1660	month, by state or country of origin.
1661	1661	(e) A blender shall keep a record showing the number of
1662	1662	gallons of:
1663	1663	(1) all diesel fuel inventories on hand at the first of
1664	1664	each month;
1665	1665	(2) all diesel fuel compounded or blended;
1666	1666	(3) all diesel fuel purchased or received, showing the
1667	1667	name of the seller and the date of each purchase or receipt;
1668	1668	(4) all diesel fuel sold, distributed, or used,
1669	1669	showing the name of the purchaser, the county in this state, and the
1670	1670	date of the sale, distribution, or use; and
1671	1671	(5) all diesel fuel lost by fire, theft, or accident.
1672	1672	(g) A motor fuel transporter shall keep a complete and
1673	1673	separate record of each intrastate and interstate transportation of
1674	1674	diesel fuel, showing:
1675	1675	(1) the date of transportation;
1676	1676	(2) the name of the consignor and consignee;
1677	1677	(3) the method of transportation;
1678	1678	(4) the quantity and kind of diesel fuel transported;
1679	1679	(5) full data concerning the diversion of shipments,
1680	1680	including the county in this state and the number of gallons
1681	1681	diverted from interstate to intrastate and intrastate to interstate
1682	1682	commerce; and
1683	1683	(6) the points of origin and destination, the county
1684	1684	in this state, the number of gallons shipped or transported, the
1685	1685	date, the consignee and the consignor, and the kind of diesel fuel
1686	1686	that has been diverted.
1687	1687	(h) A dealer shall keep a record showing the number of
1688	1688	gallons of:
1689	1689	(1) diesel fuel inventories on hand at the first of
1690	1690	each month;
1691	1691	(2) all diesel fuel purchased or received, showing the
1692	1692	name of the seller and the date of each purchase or receipt;
1693	1693	(3) all diesel fuel sold or used, showing the date of
1694	1694	the sale or use; [and]
1695	1695	(4) all diesel fuel lost by fire, theft, or accident;
1696	1696	and
1697	1697	(5) all shipping documents.
1698	1698	SECTION 55. Section 162.217(c), Tax Code, is amended to
1699	1699	read as follows:
1700	1700	(c) A supplier or permissive supplier may take a credit for
1701	1701	any state gasoline tax [taxes] that was [were] not remitted in a
1702	1702	previous period to the supplier or permissive supplier by a
1703	1703	licensed distributor or licensed importer as required by Section
1704	1704	162.214. The supplier or permissive supplier is eligible to take
1705	1705	this credit if the comptroller is notified of the default within 15
1706	1706	days after the default occurs. If a license holder pays to a
1707	1707	supplier or permissive supplier the tax owed, but the payment
1708	1708	occurs after the supplier or permissive supplier has taken a credit
1709	1709	on its return, the supplier or permissive supplier shall remit the
1710	1710	payment to the comptroller with the next monthly return after
1711	1711	receipt of the tax, plus a penalty of 10 percent of the amount of
1712	1712	unpaid taxes and interest at the rate provided by Section 111.060
1713	1713	beginning on the date the credit is taken.
1714	1714	SECTION 56. Section 162.219, Tax Code, is amended to read as
1715	1715	follows:
1716	1716	Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
1717	1717	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
1718	1718	supplements of each distributor shall contain for the period
1719	1719	covered by the return:
1720	1720	(1) the number of net gallons of diesel fuel received
1721	1721	by the distributor during the month, sorted by product code,
1722	1722	seller, point of origin, destination state, carrier, and receipt
1723	1723	date;
1724	1724	(2) the number of net gallons of diesel fuel removed at
1725	1725	a terminal rack by the distributor during the month, sorted by
1726	1726	product code, seller, terminal code, and carrier;
1727	1727	(3) the number of net gallons of diesel fuel removed by
1728	1728	the distributor during the month for export, sorted by product
1729	1729	code, terminal code, bulk plant address, destination state, and
1730	1730	carrier;
1731	1731	(4) the number of net gallons of diesel fuel removed by
1732	1732	the distributor during the month from a terminal located in another
1733	1733	state for conveyance to this state, as indicated on the shipping
1734	1734	document for the diesel fuel, sorted by product code, seller,
1735	1735	terminal code, bulk plant address, and carrier;
1736	1736	(5) the number of net gallons of diesel fuel the
1737	1737	distributor sold during the month in transactions exempt under
1738	1738	Section 162.204, dyed diesel fuel sold to a purchaser under a signed
1739	1739	statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
1740	1740	user, sorted by product code and by the entity receiving the diesel
1741	1741	fuel; [and]
1742	1742	(6) the number of net gallons delivered into a taxing
1743	1743	county sorted by taxing county and purchaser; and
1744	1744	(7) any other information required by the comptroller.
1745	1745	(b) A distributor or importer who makes timely payments of
1746	1746	the county tax imposed by this subchapter is entitled to retain an
1747	1747	amount equal to two percent of the total county diesel fuel taxes
1748	1748	remitted to the comptroller to cover administrative expenses.
1749	1749	SECTION 57. Section 162.224, Tax Code, is amended to read as
1750	1750	follows:
1751	1751	Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN.
1752	1752	The monthly return and supplements of each blender shall contain
1753	1753	for the period covered by the return:
1754	1754	(1) the number of net gallons of diesel fuel received
1755	1755	by the blender during the month, sorted by product code, seller,
1756	1756	point of origin, carrier, and receipt date;
1757	1757	(2) the number of net gallons of product blended with
1758	1758	diesel fuel during the month, sorted by product code, type of
1759	1759	blending agent if no product code exists, seller, and carrier;
1760	1760	(3) the number of net gallons of blended diesel fuel
1761	1761	sold during the month and the license number or name, [and] address,
1762	1762	and county in this state of the entity receiving the blended diesel
1763	1763	fuel; and
1764	1764	(4) any other information required by the comptroller.
1765	1765	SECTION 58. Subchapter C, Chapter 162, Tax Code, is amended
1766	1766	by adding Section 162.2245 to read as follows:
1767	1767	Sec. 162.2245. INFORMATION REQUIRED ON DEALER'S RETURN. The
1768	1768	monthly return and supplements of each dealer shall contain for the
1769	1769	period covered by the return:
1770	1770	(1) the number of gallons of diesel fuel inventories
1771	1771	on hand at the first of each month, sorted by product code;
1772	1772	(2) the number of gallons of diesel fuel received by
1773	1773	the dealer during the month, sorted by seller;
1774	1774	(3) the number of gallons of diesel fuel inventories
1775	1775	on hand at the end of each month; and
1776	1776	(4) any other information required by the comptroller.
1777	1777	SECTION 59. Sections 162.227(f-1) and (f-2), Tax Code, are
1778	1778	amended to read as follows:
1779	1779	(f-1) A volunteer fire department exempt from the taxes
1780	1780	[tax] imposed under this subchapter that paid a tax on the purchase
1781	1781	of diesel fuel is entitled to a refund of the tax paid, and the
1782	1782	volunteer fire department may file a refund claim with the
1783	1783	comptroller for that amount.
1784	1784	(f-2) A nonprofit entity exempted under Section
1785	1785	162.204(a)(15) from the taxes [tax] imposed under this subchapter
1786	1786	that paid a tax on the purchase of diesel fuel is entitled to a
1787	1787	refund of the tax paid, and the entity may file a refund claim with
1788	1788	the comptroller for that amount.
1789	1789	SECTION 60. Sections 162.229(a) and (d), Tax Code, are
1790	1790	amended to read as follows:
1791	1791	(a) A refund claim must be filed on a form provided by the
1792	1792	comptroller, be supported by the original invoice issued by the
1793	1793	seller, and contain:
1794	1794	(1) the stamped or preprinted name and address,
1795	1795	including county, of the seller;
1796	1796	(2) the name and address of the purchaser;
1797	1797	(3) the date of delivery of the diesel fuel;
1798	1798	(4) the date of the issuance of the invoice, if
1799	1799	different from the date of fuel delivery;
1800	1800	(5) the number of gallons of diesel fuel delivered;
1801	1801	(6) the amount of state or county diesel fuel taxes
1802	1802	paid [tax], either separately stated from the selling price or
1803	1803	stated with a notation that both state and county taxes are included
1804	1804	if both apply [the selling price includes the tax]; and
1805	1805	(7) the type of vehicle or equipment into which the
1806	1806	fuel is delivered.
1807	1807	(d) A distributor or person who does not hold a license who
1808	1808	files a valid refund claim with the comptroller shall be paid by a
1809	1809	warrant issued by the comptroller. For purposes of this section, a
1810	1810	distributor meets the requirement of filing a valid refund claim
1811	1811	for state and county diesel fuel taxes if the distributor
1812	1812	designates the gallons of diesel fuel sold or used that are the
1813	1813	subject of the refund claim on the monthly report submitted by the
1814	1814	distributor to the comptroller.
1815	1815	SECTION 61. Sections 162.401(b), (c), and (f), Tax Code,
1816	1816	are amended to read as follows:
1817	1817	(b) The comptroller may add a penalty of 75 percent of the
1818	1818	amount of taxes, penalties, and interest due if failure to file the
1819	1819	report or pay the tax when it becomes due is attributable to fraud
1820	1820	or an intent to evade the application of this chapter or a rule
1821	1821	adopted under this chapter, [or] Chapter 111 of this code, or
1822	1822	Chapter 616, Local Government Code.
1823	1823	(c) The penalties provided by Subsection (b) are intended to
1824	1824	be remedial in nature and are provided for the protection of state
1825	1825	and taxing county revenue and to reimburse the state and taxing
1826	1826	counties for expenses incurred as a result of fraud, including
1827	1827	expenses incurred in conducting an investigation.
1828	1828	(f) In addition to any other penalty authorized by this
1829	1829	section, a person who fails to pay the tax imposed by Section
1830	1830	162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
1831	1831	due shall pay a penalty equal to the greater of $2,000 or five times
1832	1832	the amount of the taxes [tax] due on the motor fuel.
1833	1833	SECTION 62. Sections 162.402(a), (c), and (d), Tax Code,
1834	1834	are amended to read as follows:
1835	1835	(a) A person forfeits to the state a civil penalty of not
1836	1836	less than $25 and not more than $200 if the person:
1837	1837	(1) refuses to stop and permit the inspection and
1838	1838	examination of a motor vehicle transporting or using motor fuel on
1839	1839	demand of a peace officer or the comptroller;
1840	1840	(2) operates a motor vehicle in this state without a
1841	1841	valid interstate trucker's license or a trip permit when the person
1842	1842	is required to hold one of those licenses or permits;
1843	1843	(3) transports gasoline or diesel fuel in any cargo
1844	1844	tank that has a connection by pipe, tube, valve, or otherwise with
1845	1845	the fuel injector or carburetor of, or with the fuel supply tank
1846	1846	feeding the fuel injector or carburetor of, the motor vehicle
1847	1847	transporting the product;
1848	1848	(4) sells or delivers gasoline or diesel fuel from any
1849	1849	fuel supply tank connected with the fuel injector or carburetor of a
1850	1850	motor vehicle;
1851	1851	(5) owns or operates a motor vehicle for which reports
1852	1852	or mileage records are required by this chapter without an
1853	1853	operating odometer or other device in good working condition to
1854	1854	record accurately the miles traveled;
1855	1855	(6) furnishes to a licensed supplier or distributor a
1856	1856	signed statement for purchasing diesel fuel tax-free and then uses
1857	1857	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1858	1858	on a public highway;
1859	1859	(7) fails or refuses to comply with or violates a
1860	1860	provision of this chapter;
1861	1861	(8) fails or refuses to comply with or violates a
1862	1862	comptroller's rule for administering or enforcing this chapter;
1863	1863	(9) is an importer who does not obtain an import
1864	1864	verification number when required by this chapter;
1865	1865	(10) purchases motor fuel for export, on which the
1866	1866	taxes [tax] imposed by this chapter have [has] not been paid, and
1867	1867	subsequently diverts or causes the motor fuel to be diverted to a
1868	1868	destination in this state or any other state or country other than
1869	1869	the originally designated state or country without first obtaining
1870	1870	a diversion number;
1871	1871	(11) delivers compressed natural gas or liquefied
1872	1872	natural gas into the fuel supply tank of a motor vehicle and the
1873	1873	person does not hold a valid compressed natural gas and liquefied
1874	1874	natural gas dealer's license; [or]
1875	1875	(12) makes a tax-free delivery of compressed natural
1876	1876	gas or liquefied natural gas into the fuel supply tank of a motor
1877	1877	vehicle, unless the delivery is exempt from tax under Section
1878	1878	162.356; or
1879	1879	(13) transports motor fuel to a county in this state
1880	1880	other than the county stated on the shipping document.
1881	1881	(c) A person receiving motor fuel who accepts a shipping
1882	1882	document that does not conform with the requirements of Section
1883	1883	162.004 or 162.016(a) is liable to this state for a civil penalty of
1884	1884	$2,000 or five times the amount of the unpaid tax, whichever is
1885	1885	greater, for each occurrence.
1886	1886	(d) A person who issues a shipping document that does not
1887	1887	conform with the requirements of Section 162.004 or 162.016(a) is
1888	1888	liable to this state for a civil penalty of $2,000 or five times the
1889	1889	amount of the unpaid tax, whichever is greater, for each
1890	1890	occurrence.
1891	1891	SECTION 63. Section 162.403, Tax Code, is amended to read as
1892	1892	follows:
1893	1893	Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
1894	1894	Section 162.404, a person commits an offense if the person:
1895	1895	(1) refuses to stop and permit the inspection and
1896	1896	examination of a motor vehicle transporting or using motor fuel on
1897	1897	the demand of a peace officer or the comptroller;
1898	1898	(2) is required to hold a valid trip permit or
1899	1899	interstate trucker's license, but operates a motor vehicle in this
1900	1900	state without a valid trip permit or interstate trucker's license;
1901	1901	(3) transports gasoline or diesel fuel in any cargo
1902	1902	tank that has a connection by pipe, tube, valve, or otherwise with
1903	1903	the fuel injector or carburetor or with the fuel supply tank feeding
1904	1904	the fuel injector or carburetor of the motor vehicle transporting
1905	1905	the product;
1906	1906	(4) sells or delivers gasoline or diesel fuel from a
1907	1907	fuel supply tank that is connected with the fuel injector or
1908	1908	carburetor of a motor vehicle;
1909	1909	(5) owns or operates a motor vehicle for which reports
1910	1910	or mileage records are required by this chapter without an
1911	1911	operating odometer or other device in good working condition to
1912	1912	record accurately the miles traveled;
1913	1913	(6) sells or delivers dyed diesel fuel for the
1914	1914	operation of a motor vehicle on a public highway;
1915	1915	(7) uses dyed diesel fuel for the operation of a motor
1916	1916	vehicle on a public highway except as allowed under Section
1917	1917	162.235;
1918	1918	(8) refuses to permit the comptroller or the attorney
1919	1919	general to inspect, examine, or audit a book or record required to
1920	1920	be kept by a license holder, other user, or any person required to
1921	1921	hold a license under this chapter;
1922	1922	(9) refuses to permit the comptroller or the attorney
1923	1923	general to inspect or examine any plant, equipment, materials, or
1924	1924	premises where motor fuel is produced, processed, blended, stored,
1925	1925	sold, delivered, or used;
1926	1926	(10) refuses to permit the comptroller, the attorney
1927	1927	general, an employee of either of those officials, a peace officer,
1928	1928	an employee of the Texas Commission on Environmental Quality, or an
1929	1929	employee of the Department of Agriculture to measure or gauge the
1930	1930	contents of or take samples from a storage tank or container on
1931	1931	premises where motor fuel is produced, processed, blended, stored,
1932	1932	sold, delivered, or used;
1933	1933	(11) is a license holder, a person required to be
1934	1934	licensed, or another user and fails or refuses to make or deliver to
1935	1935	the comptroller a report required by this chapter to be made and
1936	1936	delivered to the comptroller;
1937	1937	(12) is an importer who does not obtain an import
1938	1938	verification number when required by this chapter;
1939	1939	(13) purchases motor fuel for export, on which the
1940	1940	taxes [tax] imposed by this chapter have [has] not been paid, and
1941	1941	subsequently diverts or causes the motor fuel to be diverted to a
1942	1942	destination in this state or any other state or country other than
1943	1943	the originally designated state or country without first obtaining
1944	1944	a diversion number;
1945	1945	(13-a) transports motor fuel to a county in this state
1946	1946	other than the county stated on the shipping document;
1947	1947	(14) conceals motor fuel with the intent of engaging
1948	1948	in any conduct proscribed by this chapter or refuses to make sales
1949	1949	of motor fuel on the volume-corrected basis prescribed by this
1950	1950	chapter;
1951	1951	(15) refuses, while transporting motor fuel, to stop
1952	1952	the motor vehicle the person is operating when called on to do so by
1953	1953	a person authorized to stop the motor vehicle;
1954	1954	(16) refuses to surrender a motor vehicle and cargo
1955	1955	for impoundment after being ordered to do so by a person authorized
1956	1956	to impound the motor vehicle and cargo;
1957	1957	(17) mutilates, destroys, or secretes a book or record
1958	1958	required by this chapter to be kept by a license holder, other user,
1959	1959	or person required to hold a license under this chapter;
1960	1960	(18) is a license holder, other user, or other person
1961	1961	required to hold a license under this chapter, or the agent or
1962	1962	employee of one of those persons, and makes a false entry or fails
1963	1963	to make an entry in the books and records required under this
1964	1964	chapter to be made by the person or fails to retain a document as
1965	1965	required by this chapter;
1966	1966	(19) transports in any manner motor fuel under a false
1967	1967	cargo manifest or shipping document, or transports in any manner
1968	1968	motor fuel to a location without delivering at the same time a
1969	1969	shipping document relating to that shipment;
1970	1970	(20) engages in a motor fuel transaction that requires
1971	1971	that the person have a license under this chapter without then and
1972	1972	there holding the required license;
1973	1973	(21) makes and delivers to the comptroller a report
1974	1974	required under this chapter to be made and delivered to the
1975	1975	comptroller, if the report contains false information;
1976	1976	(22) forges, falsifies, or alters an invoice or
1977	1977	shipping document prescribed by law;
1978	1978	(23) makes any statement, knowing said statement to be
1979	1979	false, in a claim for a tax refund filed with the comptroller;
1980	1980	(24) furnishes to a licensed supplier or distributor a
1981	1981	signed statement for purchasing diesel fuel tax-free and then uses
1982	1982	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1983	1983	on a public highway;
1984	1984	(25) holds an aviation fuel dealer's license and makes
1985	1985	a taxable sale or use of any gasoline or diesel fuel;
1986	1986	(26) fails to remit any tax funds collected or
1987	1987	required to be collected by a license holder, another user, or any
1988	1988	other person required to hold a license under this chapter;
1989	1989	(27) makes a sale of dyed diesel fuel tax-free into a
1990	1990	storage facility of a person who:
1991	1991	(A) is not licensed as a distributor, as an
1992	1992	aviation fuel dealer, or as a dyed diesel fuel bonded user; or
1993	1993	(B) does not furnish to the licensed supplier or
1994	1994	distributor a signed statement prescribed in Section 162.206;
1995	1995	(28) makes a sale of gasoline tax-free to any person
1996	1996	who is not licensed as an aviation fuel dealer;
1997	1997	(29) purchases any motor fuel tax-free when not
1998	1998	authorized to make a tax-free purchase under this chapter;
1999	1999	(30) purchases motor fuel with the intent to evade any
2000	2000	tax imposed by this chapter or accepts a delivery of motor fuel by
2001	2001	any means and does not at the same time accept or receive a shipping
2002	2002	document relating to the delivery;
2003	2003	(31) transports motor fuel for which a cargo manifest
2004	2004	or shipping document is required to be carried without possessing
2005	2005	or exhibiting on demand by an officer authorized to make the demand
2006	2006	a cargo manifest or shipping document containing the information
2007	2007	required to be shown on the manifest or shipping document;
2008	2008	(32) imports, sells, uses, blends, distributes, or
2009	2009	stores motor fuel within this state on which a tax [the taxes]
2010	2010	imposed by this chapter is [are] owed but has [have] not been first
2011	2011	paid to or reported by a license holder, another user, or any other
2012	2012	person required to hold a license under this chapter;
2013	2013	(33) blends products together to produce a blended
2014	2014	fuel that is offered for sale, sold, or used and that expands the
2015	2015	volume of the original product to evade paying applicable motor
2016	2016	fuel taxes;
2017	2017	(34) evades or attempts to evade in any manner a tax
2018	2018	imposed on motor fuel by this chapter;
2019	2019	(35) delivers compressed natural gas or liquefied
2020	2020	natural gas into the fuel supply tank of a motor vehicle and the
2021	2021	person does not hold a valid compressed natural gas and liquefied
2022	2022	natural gas dealer's license; or
2023	2023	(36) makes a tax-free delivery of compressed natural
2024	2024	gas or liquefied natural gas into the fuel supply tank of a motor
2025	2025	vehicle, unless the delivery is exempt from tax under Section
2026	2026	162.356.
2027	2027	SECTION 64. Section 162.405(d), Tax Code, is amended to
2028	2028	read as follows:
2029	2029	(d) An offense under Section 162.403(6), (13-a), (17),
2030	2030	(18), (19), (20), (21), (22), (23), or (24) is a felony of the third
2031	2031	degree.
2032	2032	SECTION 65. Section 20.002(d), Transportation Code, is
2033	2033	amended to read as follows:
2034	2034	(d) The fee imposed by this section is equal to 25 percent of
2035	2035	the diesel fuel tax rate imposed under Section 162.202(a)
2036	2036	[162.202], Tax Code.
2037	2037	SECTION 66. (a) A county may not impose a motor fuels tax
2038	2038	under Chapter 616, Local Government Code, as added by this Act,
2039	2039	before the effective date of rules adopted by the comptroller of
2040	2040	public accounts under Section 616.102, Local Government Code, as
2041	2041	added by this Act.
2042	2042	(b) The comptroller of public accounts shall adopt the rules
2043	2043	required by Section 616.102, Local Government Code, as added by
2044	2044	this Act, not later than December 1, 2019.
2045	2045	SECTION 67. If the constitution of this state requires that
2046	2046	one-fourth of the county motor fuels tax authorized by this Act be
2047	2047	allocated to the available school fund, the county shall deposit
2048	2048	that money into an account separate from the money collected under
2049	2049	other provisions of this Act and shall allocate the money to the
2050	2050	comptroller of public accounts for deposit in the state treasury
2051	2051	for the purpose required by the constitution.
2052	2052	SECTION 68. This Act takes effect September 1, 2019.