86R8468 SMT-F
	By: Israel	H.B. No. 4281

	A BILL TO BE ENTITLED
	AN ACT
	relating to a county motor fuels tax in certain counties for
	mobility improvement projects; providing authority to impose the
	tax, issue bonds, and impose penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle B, Title 14, Local Government Code, is
	amended by adding Chapter 616 to read as follows:
	CHAPTER 616. COUNTY MOTOR FUELS TAX FOR MOBILITY IMPROVEMENT
	PROJECTS
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 616.001.  SHORT TITLE.  This chapter may be cited as the
	Texas Local Option Transportation Act.
	Sec. 616.002.  DEFINITIONS. In this chapter:
	(1)  "Advanced rapid transit" means high-capacity
	transit provided wholly or partly in dedicated lanes with stations,
	off-vehicle fare collection, and branded vehicles connected using
	vehicle-to-vehicle or other technology controlled by an in-vehicle
	or remote driver or autonomous technology.
	(2)  "Dealer," "diesel fuel," "gasoline," "motor
	fuel," "motor vehicle," "public highway," and "sale" have the
	meanings assigned by Section 162.001, Tax Code.
	(3)  "Department" means the Texas Department of
	Transportation.
	(4)  "Intermodal hub" and "transit system" have the
	meanings assigned by Section 370.003, Transportation Code.
	(5)  "Metropolitan planning organization" has the
	meaning assigned by Section 472.031, Transportation Code.
	(6)  "Mobility improvement project" means a capital
	improvement or set of related capital improvements in a geographic
	area, including maintenance and operation of the improvements,
	designed to relieve traffic congestion, increase mobility and the
	movement of traffic or individuals, expand transportation
	capacity, promote traffic or pedestrian safety, or improve air
	quality.  The term includes:
	(A)  passenger rail systems and related
	infrastructure;
	(B)  advanced rapid transit systems and related
	infrastructure;
	(C)  transit systems;
	(D)  intermodal hubs;
	(E)  pedestrian facilities;
	(F)  streets, roadways, highways, and additional
	roadway or highway lanes, such as turning lanes and managed or high
	occupancy vehicle lanes; and
	(G)  bridges, tunnels, interchanges, overpasses,
	underpasses, service roads, ramps, entrance plazas, parking areas
	or structures, and traffic signal systems.
	(7)  "Transit authority" or "transportation authority"
	means an authority operating under Chapter 370, 451, 452, or 460,
	Transportation Code.
	Sec. 616.003.  REDUCTION PROHIBITED.  (a)  A county,
	municipality, regional mobility authority, or metropolitan
	planning organization may not be penalized with a reduction in
	state or federal transportation funding, including funding from the
	state highway fund, the Texas mobility fund, general obligation
	bonds, or any other method of state or federal transportation
	financing, because of the imposition of a county motor fuels tax
	under this chapter.
	(b)  The department may not reduce any allocation of state or
	federal transportation funding to a department district because the
	district contains a county that imposes a county motor fuels tax
	under this chapter.
	Sec. 616.004.  RESTRICTIONS ON LOBBYING.  A county that
	imposes a county motor fuels tax under this chapter may not use
	revenue from the tax to pay a person or entity that is required to
	register with the Texas Ethics Commission under Chapter 305,
	Government Code.
	Sec. 616.005.  LIBERAL CONSTRUCTION. This chapter shall be
	liberally construed to effect its purposes.
	Sec. 616.006.  EXPIRATION OF CHAPTER. (a)  This chapter
	expires January 1, 2029.  The expiration of this chapter precludes
	the holding of an election or the imposition of a county motor fuels
	tax not authorized under this chapter before its expiration.
	(b)  The expiration of this chapter does not affect:
	(1)  the enforcement of bonds, obligations, covenants,
	or other legal instruments issued or executed under this chapter
	before its expiration;
	(2)  the continued imposition and collection of a
	county motor fuels tax authorized at an election held under this
	chapter necessary to fulfill an obligation or other instrument
	described by Subdivision (1) before its expiration;
	(3)  the performance of any mobility improvement
	project, including maintenance and operation of a project; or
	(4)  the administration of a county mobility
	improvement fund established under this chapter for county motor
	fuels tax revenue.
	Sec. 616.007.  PROHIBITIONS ON USE OF REVENUE.  A county may
	not use revenue from a county motor fuels tax imposed under this
	chapter for a purpose not authorized by the constitution of this
	state or to directly or indirectly hold, promote, or oppose an
	election under this chapter, including paying for promotional,
	educational, or advocacy materials.
	Sec. 616.008.  INTERLOCAL CONTRACTING AUTHORITY.  (a)  A
	political subdivision may contract or agree with another political
	subdivision to perform governmental functions and services in
	accordance with this chapter.
	(b)  A party to an interlocal contract may contract with an
	agency, as that term is defined by Section 771.002, Government
	Code.
	(c)  In this section, "interlocal contract" has the meaning
	assigned by Section 791.003, Government Code.
	Sec. 616.009.  ANNUAL REPORT AND AUDIT. (a)  On or before
	the 90th day following the end of the fiscal year of a county that
	imposes a motor fuels tax under this chapter, the commissioners
	court must submit a report to the executive director of the
	department and to the state auditor. The report must include:
	(1)  the amount of revenue collected in the county
	under this chapter;
	(2)  the amount and purpose of expenditures related to
	mobility improvement projects; and
	(3)  a description of the progress made toward
	completion of mobility improvement projects.
	(b)  The county must publish the report required under
	Subsection (a) on the county's Internet website at the time the
	report is submitted to the department.
	(c)  Based on a risk assessment process in accordance with
	Chapter 321, Government Code, the financial transactions of a
	county regarding a motor fuels tax imposed under this chapter and
	related mobility improvement projects are subject to audit by the
	state auditor.  A county audited under this subsection shall
	reimburse the state auditor for the expense of the audit.
	SUBCHAPTER B.  ELECTIONS; PROJECT SELECTION; EQUITY
	Sec. 616.051.  CALLING OF ELECTION.  (a)  The commissioners
	court of a county with a population of more than one million may
	call an election on the issue of imposing a motor fuels tax under
	this chapter if:
	(1)  at least 240 days before the uniform election date
	in November, a resolution or resolutions requesting that an
	election be called are adopted by the commissioners court of the
	county; or
	(2)  at least 210 days before the uniform election date
	in November, a petition is submitted to the commissioners court of
	the county requesting that the election be called that is signed by
	the number of registered voters of the county equal to at least 10
	percent of the total number of votes cast in the county for all
	candidates for governor in the most recent gubernatorial general
	election.
	(b)  The commissioners court may adopt an order under this
	section only after holding three public hearings on the issue.
	(c)  An election called under this section must be held on
	the uniform election date in November.
	(d)  Section 334.025 applies to an election called under this
	section.
	Sec. 616.052.  SUBSEQUENT ELECTIONS.  (a)  This section
	applies only to a county in which the majority of voters did not
	approve the imposition of a county motor fuels tax at an election
	held under Section 616.051.
	(b)  The commissioners court by order may call a subsequent
	election to impose the motor fuels tax authorized under this
	chapter using the procedures described by this subchapter.
	(c)  The commissioners court of a county may not call a
	subsequent election under this section before the second
	anniversary of a previously held election.
	Sec. 616.053.  REQUIRED BALLOT LANGUAGE. (a)  An order under
	this subchapter calling an election must:
	(1)  list and generally describe the nature and scope
	of the proposed mobility improvement projects to be constructed;
	and
	(2)  list the estimated cost, or portion of the cost,
	and the estimated completion date for the capital construction of
	each proposed mobility improvement project.
	(b)  The ballot at an election held under this subchapter
	must be printed as follows: "Authorizing ________ (insert name of
	county) to construct the following mobility improvement
	projects:_______ (insert, on four separate lines, a general and
	brief description of each proposed mobility improvement project, an
	estimated total cost of each project, the estimated date of
	expiration of any necessary bonds, and the estimated date the
	project will be operational to the public).  The construction,
	maintenance, and operation of the project or projects listed above
	will be funded with a 10 cent tax imposed on the sale of a gallon of
	gasoline and diesel fuel. By voting "yes," you authorize the county
	to begin imposing a 10 cent motor fuels tax on the sale of a gallon
	of gasoline and diesel fuel. Do you authorize the construction of
	the mobility improvement projects listed above and the imposition
	of a county motor fuels tax in ______ County?"
	(c)  The estimated cost of construction of a mobility
	improvement project listed on a ballot is not a legally binding
	restriction on the actual and ultimate cost of financing the
	project.
	(d)  A ballot may not permit individual mobility improvement
	projects to be voted on as separate options. All mobility
	improvement projects included on a ballot must be approved or
	rejected as a group.
	Sec. 616.054.  AUTHORIZED PROJECTS.  (a)  A county may
	propose for funding by a motor fuels tax imposed under this chapter,
	to the extent permitted by the constitution of this state:
	(1)  the construction of a new mobility improvement
	project and related maintenance and operations;
	(2)  the expansion, reconstruction, or rehabilitation
	of an existing mobility improvement project;
	(3)  improvements in the maintenance and operation of
	an existing mobility improvement project; or
	(4)  the retirement of existing debt of a transit
	agency related to a mobility improvement project.
	(b)  A county may only use funds collected from a motor fuels
	tax imposed under this chapter to fund mobility improvement
	projects consistent with the transportation plans and programs of
	the metropolitan planning organization in which the county is
	located.
	(c)  A county shall consider advanced rapid transit
	corridors in selecting projects for funding under this chapter.
	(d)  On or before the 30th day before the date described in
	Subsection (e), the metropolitan planning organization in which the
	county is located shall submit to the county a list of eligible
	mobility improvement projects with a primary emphasis on advanced
	rapid transit and major roadway improvements.
	(e)  On or before the 180th day before an election is held
	under this subchapter, the commissioners court shall, by order and
	in consultation with municipalities and transit agencies located or
	operating in the county, determine in a public hearing which
	projects from the list submitted under Subsection (d) shall be
	proposed for funding from a motor fuels tax imposed under this
	chapter.
	(f)  At the discretion of the county, employees of the
	department, the county, a municipality, a metropolitan planning
	organization, an airport, or a transit authority may be asked to
	provide staff support services to the county to determine the
	projects to be proposed and constructed.
	SUBCHAPTER C.  COUNTY MOTOR FUELS TAX
	Sec. 616.101.  COUNTY MOTOR FUELS TAX AUTHORIZED;
	EXPIRATION.  (a)  Notwithstanding Section 162.014, Tax Code, if
	approved by a majority of the votes cast in a county at an election
	held under Subchapter B, the county shall impose a tax at a rate of
	10 cents per gallon on the sale of gasoline and diesel fuel that is
	sold in the county by a person, including a dealer, distributor,
	supplier, or permissive supplier, engaged in the sale of motor
	fuels used to propel a motor vehicle on the public highways of the
	state.
	(b)  The tax authorized by this section is in addition to the
	tax imposed by Chapter 162, Tax Code, and shall be collected in
	conjunction with that tax when gasoline or diesel fuel is removed
	from a terminal using the terminal rack, other than by bulk
	transfer, to be sold or delivered into a county that has imposed the
	tax authorized by this section.
	(c)  A county shall discontinue the imposition of a motor
	fuels tax under this chapter if:
	(1)  all of the mobility improvement projects approved
	by the voters of a county are accepted by the governmental entity
	that contracted for the projects;
	(2)  all of the bonds issued for mobility improvement
	projects are paid in full; and
	(3)  additional revenue from the continued imposition
	of the tax is not necessary for ongoing maintenance and operation of
	mobility improvement projects, including the financial impact a new
	mobility improvement project may have on an existing transit system
	as specified by an interlocal agreement.
	Sec. 616.102.  DUTIES OF COMPTROLLER RELATING TO COUNTY
	MOTOR FUELS TAX.  (a)  The comptroller shall administer, collect,
	and enforce a tax imposed on the sale of gasoline or diesel fuel
	approved in accordance with the provisions of this chapter. The tax
	shall be exclusively administered, collected, and enforced in
	conformance with Chapter 162, Tax Code, governing the tax assessed
	on the sale of gasoline and diesel fuel, except that Subchapter F,
	Chapter 162, Tax Code, does not apply. References in Chapter 162,
	Tax Code, to taxes imposed under that chapter also include taxes
	imposed under this section.
	(b)  The exemptions provided by Sections 162.104 and
	162.204, Tax Code, apply to the tax authorized by this section.
	(c)  Subject to Section 616.103, the comptroller may adopt
	reasonable rules and prescribe forms that are consistent with this
	chapter and Chapter 162, Tax Code, for the administration,
	collection, reporting, and enforcement of this section.
	(d)  Except as provided by Subsection (e), the tax authorized
	by this section takes effect on the first day of the first calendar
	quarter following the expiration of the first complete quarter
	occurring after the date of the election authorizing the order
	imposing the tax under Subchapter B.
	(e)  If the comptroller determines that an effective date
	provided by Subsection (d) will occur before the comptroller can
	reasonably take the action required to begin collecting the tax,
	the comptroller may delay the effective date until the first day of
	the first calendar quarter following the date the comptroller
	declares that the comptroller is ready to begin collecting the tax.
	(f)  Before making a distribution to a county under Section
	616.105, the comptroller shall deduct any costs incurred by the
	comptroller related to the comptroller's preparations to
	administer, collect, and enforce a tax on the sale of gasoline or
	diesel fuel approved in accordance with this chapter. Each county
	that approves the imposition of a tax on the sale of gasoline or
	diesel fuel shall be charged a pro rata amount for the comptroller's
	costs in preparing to administer, collect, and enforce the tax. If
	only one county elects to approve the imposition of a tax on the
	sale of gasoline or diesel fuel in its jurisdiction, that county
	shall bear all of the costs incurred by the comptroller but may
	recover pro rata shares of this cost from other counties that
	approve the imposition of the tax.
	Sec. 616.103.  ADOPTION OF RULES RELATING TO MOTOR FUELS
	TAX.  (a)  Before the comptroller may adopt rules under Section
	616.102, the comptroller must consult with representatives of:
	(1)  the entities that would be required to:
	(A)  collect and remit a motor fuels tax imposed
	under this chapter; and
	(B)  file reports with the comptroller relating to
	a motor fuels tax imposed under this chapter; and
	(2)  counties in which the voters have approved the
	imposition of a motor fuels tax under this chapter.
	(b)  Rules adopted under Section 616.102 must provide for the
	uniform administration and reporting of all motor fuels taxes
	imposed by a county under this chapter. A county may not impose
	requirements on an entity required to collect a motor fuels tax
	under this chapter that are not specifically authorized by the
	rules adopted under Section 616.102.
	(c)  Rules adopted under Section 616.102:
	(1)  may require the comptroller to report sufficient
	information to each county imposing a motor fuels tax under this
	chapter to ensure proper allocation of revenue by the county under
	this chapter;
	(2)  may not require the comptroller to report
	proprietary information collected from an individual taxpayer in a
	way that would be subject to public disclosure; and
	(3)  may not authorize a county imposing a motor fuels
	tax under this chapter to contract with a private entity to perform
	any duty or responsibility associated with the collection,
	enforcement, or administration of the tax.
	Sec. 616.104.  TRUST ACCOUNT.  The comptroller shall deposit
	the county taxes collected by the comptroller under this chapter
	and Chapter 162, Tax Code, in trust in the separate suspense account
	of the county for which the taxes were collected.
	Sec. 616.105.  DISTRIBUTION OF TRUST FUNDS. The comptroller
	shall each month distribute to the county treasurer, payable to the
	county and for deposit in the county mobility improvement fund, the
	county's share of the taxes collected by the comptroller under this
	chapter and Chapter 162, Tax Code.
	Sec. 616.106.  STATE'S SHARE.  Before making a distribution
	to a county under Section 616.105, the comptroller also shall
	deduct an amount not to exceed two percent of the amount of the
	taxes collected for the county during the period for which a
	distribution is made as the state's charge for its services. The
	comptroller shall credit the amount deducted to the general revenue
	fund.  The comptroller shall adjust the percentage of the amount
	deducted each state fiscal year considering the projected
	expenditures necessary for the collection, administrative, and
	enforcement functions related to the county motor fuels tax.
	Sec. 616.107.  AMOUNTS RETAINED IN TRUST ACCOUNT.  (a) The
	comptroller may retain in the suspense account of a county a portion
	of the county's share of the tax collected for the county under this
	chapter and Chapter 162, Tax Code, not to exceed five percent of the
	amount distributed to the county.  If the county has abolished the
	tax, the amount that may be retained may not exceed five percent of
	the final distribution to the county at the time of the termination
	of the collection of the tax.
	(b)  From the amounts retained in a county's suspense
	account, the comptroller may correct erroneous deposits to the
	account, make refunds for overpayments to the account, and redeem
	dishonored checks and drafts deposited to the credit of the
	account.
	(c)  Before the fourth anniversary of the effective date of
	the abolition of a county tax collected under this chapter and
	Chapter 162, Tax Code, the comptroller shall send to the county the
	remainder of the money in the county's account and shall close the
	account.
	Sec. 616.108.  INTEREST ON TRUST ACCOUNT. Interest earned
	on all deposits made by the comptroller under this subchapter shall
	be credited to the suspense account of the county.
	SUBCHAPTER D. FUND
	Sec. 616.151.  COUNTY MOBILITY IMPROVEMENT FUND. (a)  The
	commissioners court of each county that imposes a motor fuels tax
	under this chapter shall, by order, establish a county mobility
	improvement fund that is separate and apart from the county's
	general fund account.
	(b)  The county shall deposit in the fund money distributed
	to the county under Section 616.105.
	(c)  The county shall establish segregated accounts in the
	fund for each approved mobility improvement project.
	(d)  Money in the fund, including any interest earned, is the
	property of the county depositing the money and may be spent only as
	provided by Section 616.152.
	Sec. 616.152.  USE OF MONEY IN FUND; ISSUANCE OF BONDS.
	(a)  A county may use money in its county mobility improvement
	fund, to the extent permitted by the constitution of this state, to:
	(1)  reimburse or pay, without issuing bonds or other
	obligations or otherwise creating debt, the costs of planning,
	acquiring, establishing, developing, constructing, or renovating
	mobility improvement projects in the county that were approved at
	an election under this subchapter;
	(2)  pay the principal of, interest on, or other costs
	relating to bonds or other obligations the county issues for the
	purpose of financing mobility improvement projects in the county
	that were approved at an election under this subchapter;
	(3)  pay amounts due and owing to a transit authority or
	transportation authority under a contract or interlocal agreement
	between the county and the authority under which the authority
	agrees to provide, develop, construct, install, and operate
	advanced rapid transit facilities and services inside and outside
	the county and to issue bonds and other obligations that are secured
	by and payable from the amounts due from the county under the
	contract or interlocal agreement for the purpose of financing the
	capital costs of the facilities, if a county motor fuels tax was
	approved for that purpose at an election under this chapter;
	(4)  pay amounts due and owing to a municipality under a
	contract or interlocal agreement between the county and the
	municipality under which the municipality agrees to provide,
	develop, or construct mobility improvement projects located inside
	the municipality;
	(5)  pay amounts owed to a transit agency to accelerate
	the retirement of outstanding debt; and
	(6)  reimburse or pay the actual and customary costs of
	financial administration of the fund.
	(b)  A contract or interlocal agreement entered into between
	a county and a transit authority or transportation authority for
	the purposes described by Subsection (a)(3) may have those terms
	and provisions, and may impose and contain requirements, grants,
	and limitations, as the county and the transit authority or
	transportation authority may mutually agree, including the power of
	the transit authority or transportation authority to pledge as
	security for its bonds all amounts, less agreed costs of
	collection, deposited to the county's local option transportation
	fund, if such a pledge was approved at an election under this
	subchapter.
	(c)  Bonds or other obligations issued by a county under this
	section may be made payable from money in the county's county
	mobility improvement fund, subject to any limitations contained in
	a contract or interlocal agreement between the county and a transit
	authority or transportation authority, and from any other sources
	of revenue of the county that are lawfully available.  Bonds or
	other obligations issued by a transit authority or transportation
	authority under a contract or interlocal agreement shall be payable
	from and secured by the money in the county's county mobility
	improvement fund and the revenue received from the operation of the
	advanced rapid transit services financed by the bonds or other
	obligations and may not include any revenue the transit authority
	or transportation authority receives from a dedicated sales tax or
	the operation of any other advanced rapid transit or bus system or
	related services.
	(d)  Bonds or other obligations issued by a county under this
	section or by a transit authority or transportation authority under
	a contract or interlocal agreement may mature serially or otherwise
	not more than 30 years after the date of issuance.
	(e)  Any bonds or other obligations issued by a county or by a
	transit authority or transportation authority under this section,
	and the proceedings authorizing the bonds or other obligations,
	must be submitted to the attorney general for review and approval
	under Chapter 1202, Government Code.
	(f)  A county may not:
	(1)  use money in the fund to finance the construction
	of a mobility improvement project not permitted by the constitution
	of this state or not approved by the voters in an election under
	this chapter; or
	(2)  use funds approved for a particular mobility
	improvement project to fund a different project.
	SUBCHAPTER E. TRANSIT AND TRANSPORTATION AUTHORITIES
	Sec. 616.201.  TRANSIT AUTHORITY OR TRANSPORTATION
	AUTHORITY SERVICES NOT AUTHORIZED.  (a)  A county acting under this
	chapter may not directly operate or provide advanced rapid transit
	services or any service expressly reserved by a transit authority
	or a transportation authority that serves the county.
	(b)  This chapter does not authorize the creation of a
	transit authority or a transportation authority.
	SECTION 2.  Subchapter C, Chapter 791, Government Code, is
	amended by adding Section 791.038 to read as follows:
	Sec. 791.038.  CONTRACTS RELATED TO COUNTY MOTOR FUELS
	TAXES. (a)  The comptroller may enter into an interlocal contract
	with one or more local governments or political subdivisions to
	collect, administer, and enforce a county motor fuels tax enacted
	under Chapter 616, Local Government Code, and any other related
	law.
	(b)  This section expires January 1, 2022.
	SECTION 3.  Section 162.001, Tax Code, is amended by adding
	Subdivisions (16-a), (16-b), (56-a), (56-b), and (57-a) to read as
	follows:
	(16-a)  "County diesel fuel tax" means the tax imposed
	by Section 162.2011 or 162.2035.
	(16-b)  "County gasoline tax" means the tax imposed by
	Section 162.1011 or 162.1035.
	(56-a)  "State diesel fuel tax" means the tax imposed
	by Section 162.201 or 162.203.
	(56-b)  "State gasoline tax" means the tax imposed by
	Section 162.101 or 162.103.
	(57-a)  "Taxing county" means a destination county that
	has adopted the tax on motor vehicle fuel authorized by Chapter 616,
	Local Government Code.
	SECTION 4.  Sections 162.004(e) and (g), Tax Code, are
	amended to read as follows:
	(e)  A person to whom a shipping document was issued shall:
	(1)  carry the shipping document in the barge, vessel,
	railroad tank car, or other transport vehicle for which the
	document was issued when transporting the motor fuel described in
	the document;
	(2)  show the shipping document on request to any law
	enforcement officer, representative of the comptroller, or other
	authorized individual, when transporting the motor fuel described;
	(3)  deliver the motor fuel to the destination state
	printed on the shipping document unless the person:
	(A)  notifies the comptroller and the destination
	state, if a diversion program is in place, before transporting the
	motor fuel into a state other than the printed destination state,
	that the person has received instructions after the shipping
	document was issued to deliver the motor fuel to a different
	destination state;
	(B)  receives from the comptroller and
	destination state, if a diversion program is in place, a diversion
	number authorizing the diversion; and
	(C)  writes on the shipping document the change in
	destination state and the diversion number; [and]
	(4)  if delivering the motor fuel into a county in this
	state, denote on the shipping document the county to which the motor
	fuel will be delivered or, in the case of a split load, each county
	in which a portion of the motor fuel will be delivered; and
	(5)  give a copy of the shipping document to the person
	to whom the motor fuel is delivered.
	(g)  The person to whom motor fuel is delivered by barge,
	vessel, railroad tank car, or transport vehicle may not accept
	delivery of the motor fuel if the destination state shown on the
	shipping document for the motor fuel is a state other than this
	state, except that the person may accept the [that] delivery if the
	document contains a diversion number authorized by the comptroller
	and destination state, if applicable, and has received a properly
	completed shipping document listing the county in this state in
	which the person accepts delivery. The person to whom the motor
	fuel is delivered shall examine the shipping document to determine
	that the destination state is this state and the county in this
	state is the county in which the person accepts delivery, and shall
	retain a copy of the shipping document at the delivery location or
	another place until the fourth anniversary of the date of delivery.
	SECTION 5.  Section 162.005(e), Tax Code, is amended to read
	as follows:
	(e)  The comptroller may revoke a license if the license
	holder:
	(1)  purchases for export motor fuel on which the tax
	was not paid under this chapter and subsequently diverts or causes
	the motor fuel to be diverted to a destination in this state or to
	any destination other than the originally designated state or
	country without first obtaining a diversion number; or
	(2)  delivers motor fuel on which the county gasoline
	tax or county diesel fuel tax is due without issuing a properly
	completed shipping document listing the taxing county in which the
	delivery occurred.
	SECTION 6.  Section 162.006(a), Tax Code, is amended to read
	as follows:
	(a)  The comptroller may suspend a person's license without
	notice or a hearing for the person's failure to comply with this
	chapter or a rule adopted under this chapter or Chapter 616, Local
	Government Code, if the person's continued operation constitutes an
	immediate and substantial threat to the collection of taxes imposed
	by this chapter and attributable to the person's operation.
	SECTION 7.  Section 162.012, Tax Code, is amended to read as
	follows:
	Sec. 162.012.  PRESUMPTIONS. (a) A person licensed under
	this chapter or required to be licensed under this chapter, or other
	user, who fails to keep a record, issue an invoice, or file a return
	or report required by this chapter is presumed to have sold or used
	for taxable purposes all motor fuel shown by an audit by the
	comptroller to have been sold to the license holder or other
	user.  Motor fuel unaccounted for is presumed to have been sold or
	used for taxable purposes.
	(b)  If an exporter claims an exemption under Section
	162.104(a)(4) or 162.204(a)(4) and fails to report subsequent
	tax-free sales in this state of the motor fuel for which the
	exemption was claimed as required by Section 162.1155 or 162.2165,
	or to produce proof of payment of tax to the destination state or
	proof that the transaction was exempt in the destination state, the
	exporter is presumed to have not paid the destination state's tax or
	this state's tax on the motor fuel and the comptroller shall assess
	the tax imposed by this chapter on the motor fuel against the
	exporter.
	(c)  If a person claims an exemption from the county motor
	fuels tax and fails to produce proof of delivery to a nontaxing
	county, the person is presumed to have delivered the motor fuel to a
	taxing county that imposes the tax on motor vehicle fuels
	authorized by Chapter 616, Local Government Code.
	(d)  The comptroller may fix or establish the amount of
	taxes, penalties, and interest due this state from the records of
	deliveries or from any records or information available.  If a tax
	claim, as developed from this procedure, is not paid, after the
	opportunity to request a redetermination, the claim and any audit
	made by the comptroller or any report filed by the license holder or
	other user is evidence in any suit or judicial proceedings filed by
	the attorney general and is prima facie evidence of the correctness
	of the claim or audit.  A prima facie presumption of the
	correctness of the claim may be overcome at the trial by evidence
	adduced by the license holder or other user.
	(e) [(b)]  In the absence of records showing the number of
	miles actually operated per gallon of motor fuel consumed, it is
	presumed that not less than one gallon of motor fuel was consumed
	for every four miles traveled. An interstate trucker may produce
	evidence of motor fuel consumption to establish another mileage
	factor. If an examination or audit made by the comptroller from the
	records of an interstate trucker shows that a greater amount of
	motor fuel was consumed than was reported by the interstate trucker
	for tax purposes, the interstate trucker is liable for the tax,
	penalties, and interest on the additional amount shown or the
	trucker is entitled to a credit or refund on overpayments of tax
	established by the audit.
	SECTION 8.  Section 162.015, Tax Code, is amended to read as
	follows:
	Sec. 162.015.  ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
	On the effective date of an increase in the rate [rates] of a tax
	[the taxes] imposed by this chapter, a distributor or dealer that
	possesses for the purpose of sale 2,000 or more gallons of gasoline
	or diesel fuel at each business location on which a tax [the taxes]
	imposed by this chapter at a previous rate has [have] been paid
	shall report to the comptroller the volume of that gasoline and
	diesel fuel, and at the time of the report shall pay a tax on that
	gasoline and diesel fuel at a rate equal to the rate of the tax
	increase.
	(b)  On the effective date of a reduction of the rate [rates]
	of a tax [taxes] imposed by this chapter, a distributor or dealer
	that possesses for the purpose of sale 2,000 or more gallons of
	gasoline or diesel fuel at each business location on which a tax
	[the taxes] imposed by this chapter at the previous rate has [have]
	been paid becomes entitled to a refund in an amount equal to the
	difference in the amount of the tax [taxes] paid on that gasoline or
	diesel fuel at the previous rate and at the rate in effect on the
	effective date of the reduction in the tax rate [rates]. The rules
	of the comptroller shall provide for the method of claiming a refund
	under this chapter and may require that the refund for the dealer be
	paid through the distributor or supplier from whom the dealer
	received the fuel.
	SECTION 9.  Section 162.016, Tax Code, is amended by
	amending Subsection (a) and adding Subsection (g-1) to read as
	follows:
	(a)  A person may not import motor fuel to a destination in
	this state or export motor fuel to a destination outside this state
	by any means unless the person possesses a shipping document for
	that fuel.  The shipping document must include:
	(1)  the name and physical address of the terminal or
	bulk plant from which the motor fuel was received for import or
	export;
	(2)  the name of the carrier transporting the motor
	fuel;
	(3)  the date the motor fuel was loaded;
	(4)  the type of motor fuel;
	(5)  the number of gallons:
	(A)  in temperature-adjusted gallons if purchased
	from a terminal for export or import; or
	(B)  in temperature-adjusted gallons or in gross
	gallons if purchased from a bulk plant;
	(6)  the destination state and, if the destination
	state is this state, the county in this state to which the gasoline
	or diesel fuel will be delivered [of the motor fuel] as represented
	by the purchaser of the motor fuel and the number of gallons of the
	fuel to be delivered, if delivery is to only one state;
	(7)  the name and physical address of the purchaser of
	the motor fuel;
	(8)  the name of the person responsible for paying the
	tax imposed by this chapter, as given to the terminal by the
	purchaser if different from the licensed supplier or distributor;
	(9)  the destination state of each portion of a split
	load of motor fuel if the motor fuel is to be delivered to more than
	one state and, if a destination state is this state, the county in
	this state to which the gasoline or diesel fuel will be delivered;
	and
	(10)  any other information that, in the opinion of the
	comptroller, is necessary for the proper administration of this
	chapter.
	(g-1)  An importer or exporter who wants to deliver a single
	cargo tank of motor fuel to a county in this state must issue a
	properly completed shipping document denoting the county to which
	the motor fuel will be delivered or, in the case of a split load,
	each county to which a portion of the motor fuel will be delivered.
	SECTION 10.  The heading to Section 162.101, Tax Code, is
	amended to read as follows:
	Sec. 162.101.  POINT OF IMPOSITION OF STATE GASOLINE TAX.
	SECTION 11.  Sections 162.101(a), (b), (c), and (f), Tax
	Code, are amended to read as follows:
	(a)  A tax is imposed on the removal of gasoline from the
	terminal using the terminal rack, other than by bulk transfer.  The
	supplier or permissive supplier is liable for and shall collect the
	tax imposed by this section [subchapter] from the person who orders
	the withdrawal at the terminal rack.
	(b)  A tax is imposed at the time gasoline is imported into
	this state, other than by a bulk transfer, for delivery to a
	destination in this state.  The supplier or permissive supplier is
	liable for and shall collect the tax imposed by this section
	[subchapter] from the person who imports the gasoline into this
	state.  If the seller is not a supplier or permissive supplier,
	then the person who imports the gasoline into this state is liable
	for and shall pay the tax.
	(c)  A tax is imposed on the removal of gasoline from the bulk
	transfer/terminal system in this state.  The supplier is liable for
	and shall collect the tax imposed by this section [subchapter] from
	the person who orders the removal from the bulk transfer terminal
	system.
	(f)  A terminal operator in this state is considered a
	supplier for the purpose of the tax imposed by [under] this section
	[subchapter] unless at the time of removal:
	(1)  the terminal operator has a terminal operator's
	license issued for the facility from which the gasoline is
	withdrawn;
	(2)  the terminal operator verifies that the person who
	removes the gasoline has a supplier's license; and
	(3)  the terminal operator does not have a reason to
	believe that the supplier's license is not valid.
	SECTION 12.  Subchapter B, Chapter 162, Tax Code, is amended
	by adding Section 162.1011 to read as follows:
	Sec. 162.1011.  IMPOSITION OF COUNTY GASOLINE TAX; POINT OF
	COLLECTION.  (a)  In a county that imposes the tax on motor vehicle
	fuels authorized by Chapter 616, Local Government Code, a tax is
	imposed on the delivery of gasoline into the taxing county.
	(b)  A tax is imposed on gasoline that is otherwise exempt
	from taxation under Section 162.104(a)(4) or (7) if the gasoline is
	sold in this state to a person who does not hold a license under
	Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
	subsequently delivered into a taxing county. The person who
	delivered the gasoline into the taxing county is liable for and
	shall collect the tax.
	(c)  A tax is imposed on gasoline that is otherwise exempt
	from taxation under Section 162.104(a)(4) or (7) if before export
	the gasoline is sold in this state to a person who holds a license
	under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
	delivered into a taxing county. The person who delivered the
	gasoline into the taxing county is liable for and shall pay the tax.
	(d)  The distributor shall collect the tax imposed by this
	section from each person on delivery of gasoline into a taxing
	county.
	(e)  In each subsequent sale of gasoline on which the tax has
	been paid, the tax imposed by this section shall be collected from
	the purchaser so that the tax is paid ultimately by the person who
	uses the gasoline. Gasoline is considered to be used when it is
	delivered into a fuel supply tank.
	SECTION 13.  Section 162.102, Tax Code, is amended to read as
	follows:
	Sec. 162.102.  TAX RATES [RATE]. (a) The state gasoline tax
	rate is 20 cents for each net gallon or fractional part of a net
	gallon on which the tax is imposed under Section 162.101.
	(b)  In a taxing county, the county gasoline tax rate for
	each net gallon or fractional part of a net gallon is the rate
	established by Chapter 616, Local Government Code.
	SECTION 14.  The heading to Section 162.1025, Tax Code, is
	amended to read as follows:
	Sec. 162.1025.  SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
	FROM PURCHASER.
	SECTION 15.  Sections 162.1025(a), (b), and (c), Tax Code,
	are amended to read as follows:
	(a)  In each subsequent sale of gasoline on which the taxes
	imposed by this subchapter have [tax has] been paid, the taxes [tax
	imposed by this subchapter] shall be collected from the purchaser
	so that the taxes are [tax is] paid ultimately by the person who
	uses the gasoline. Gasoline is considered to be used when it is
	delivered into a fuel supply tank.
	(b)  The taxes [tax] imposed by this subchapter must be
	stated separately from the sales price of gasoline and identified
	as gasoline taxes [tax] on the invoice or receipt issued to a
	purchaser. Backup gasoline taxes [tax] may be identified as
	gasoline taxes [tax]. The taxes [tax] must be separately stated and
	identified in the same manner on a shipping document, if the
	shipping document includes the sales price of the gasoline.
	(c)  Except as provided by Subsection (d), the sales price of
	gasoline stated on an invoice, receipt, or shipping document is
	presumed to be exclusive of the taxes [tax] imposed by this
	subchapter.  The seller or purchaser may overcome the presumption
	by using the seller's records to show that the taxes [tax] imposed
	by this subchapter were [was] included in the sales price.
	SECTION 16.  The heading to Section 162.103, Tax Code, is
	amended to read as follows:
	Sec. 162.103.  BACKUP STATE GASOLINE TAX; LIABILITY.
	SECTION 17.  Sections 162.103(a) and (c), Tax Code, are
	amended to read as follows:
	(a)  A backup tax is imposed at the rate prescribed by
	Section 162.102(a) [162.102] on:
	(1)  a person who obtains a refund of tax on gasoline by
	claiming the gasoline was used for an off-highway purpose, but
	actually uses the gasoline to operate a motor vehicle on a public
	highway;
	(2)  a person who operates a motor vehicle on a public
	highway using gasoline on which tax has not been paid;
	(3)  a person who sells to the ultimate consumer
	gasoline on which tax has not been paid and who knew or had reason to
	know that the gasoline would be used for a taxable purpose; and
	(4)  a person, other than a person exempted under
	Section 162.104, who acquires gasoline on which tax has not been
	paid from any source in this state.
	(c)  The tax imposed by [under] Subsection (a)(3) is also
	imposed on the ultimate consumer.
	SECTION 18.  Subchapter B, Chapter 162, Tax Code, is amended
	by adding Section 162.1035 to read as follows:
	Sec. 162.1035.  BACKUP COUNTY GASOLINE TAX; LIABILITY. (a)
	A backup tax is imposed at the rate prescribed by Section 162.102(b)
	on:
	(1)  a person who, in a taxing county:
	(A)  delivers gasoline into the fuel supply tank
	of a motor vehicle;
	(B)  purchases or receives gasoline from another
	person; or
	(C)  sells or delivers gasoline to another person;
	and
	(2)  a person who obtains a refund of the tax imposed by
	Section 162.1011 for gasoline that the person delivered into the
	fuel supply tank of a motor vehicle, purchased or acquired, or sold
	or delivered in a taxing county.
	(b)  A person who sells gasoline subject to the tax imposed
	by this section shall at the time of sale collect the tax from the
	purchaser or recipient of the gasoline in addition to the selling
	price and is liable to this state for the taxes collected at the
	time and in the manner provided by this chapter.
	(c)  The following are exempt from the tax imposed by this
	section:
	(1)  gasoline on which the tax imposed by Section
	162.1011 has been paid; and
	(2)  gasoline exempt under Section 162.104.
	(d)  The tax imposed by this section is in addition to any
	penalty imposed under this chapter.
	SECTION 19.  Section 162.104(a), Tax Code, is amended to
	read as follows:
	(a)  The taxes [tax] imposed by this subchapter do [does] not
	apply to gasoline:
	(1)  sold to the United States for its exclusive use,
	provided that the exemption does not apply with respect to fuel sold
	or delivered to a person operating under a contract with the United
	States;
	(2)  sold to a public school district in this state for
	the district's exclusive use;
	(3)  sold to a commercial transportation company or a
	metropolitan rapid transit authority operating under Chapter 451,
	Transportation Code, that provides public school transportation
	services to a school district under Section 34.008, Education Code,
	and that uses the gasoline only to provide those services;
	(4)  exported by either a licensed supplier or a
	licensed exporter from this state to any other state, provided that
	the bill of lading indicates the destination state and the supplier
	collects the destination state tax;
	(5)  moved by truck or railcar between licensed
	suppliers or licensed permissive suppliers and in which the
	gasoline removed from the first terminal comes to rest in the second
	terminal, provided that the removal from the second terminal rack
	is subject to the state gasoline tax imposed by this subchapter;
	(6)  delivered or sold into a storage facility of a
	licensed aviation fuel dealer from which gasoline will be delivered
	solely into the fuel supply tanks of aircraft or aircraft servicing
	equipment, or sold from one licensed aviation fuel dealer to
	another licensed aviation fuel dealer who will deliver the aviation
	fuel exclusively into the fuel supply tanks of aircraft or aircraft
	servicing equipment;
	(7)  exported to a foreign country if the bill of lading
	indicates the foreign destination and the fuel is actually exported
	to the foreign country;
	(8)  sold to a volunteer fire department in this state
	for the department's exclusive use; or
	(9)  sold to a nonprofit entity that is organized for
	the sole purpose of and engages exclusively in providing emergency
	medical services and that uses the gasoline exclusively to provide
	emergency medical services, including rescue and ambulance
	services.
	SECTION 20.  Section 162.105, Tax Code, is amended to read as
	follows:
	Sec. 162.105.  PERSONS REQUIRED TO BE LICENSED. A person
	shall obtain the appropriate license or licenses issued by the
	comptroller before conducting the activities of:
	(1)  a supplier, who may also act as a distributor,
	importer, exporter, blender, motor fuel transporter, dealer, or
	aviation fuel dealer without securing a separate license, but who
	is subject to all other conditions, requirements, and liabilities
	imposed on those license holders;
	(2)  a permissive supplier, who may also act as a
	distributor, importer, exporter, blender, motor fuel transporter,
	dealer, or aviation fuel dealer without securing a separate
	license, but who is subject to all other conditions, requirements,
	and liabilities imposed on those license holders;
	(3)  a distributor, who may also act as an importer,
	exporter, blender, [or] motor fuel transporter, or dealer without
	securing a separate license, but who is subject to all other
	conditions, requirements, and liabilities imposed on those license
	holders;
	(4)  an importer, who may also act as an exporter,
	blender, [or] motor fuel transporter, or dealer without securing a
	separate license, but who is subject to all other conditions,
	requirements, and liabilities imposed on those license holders;
	(5)  a terminal operator;
	(6)  an exporter;
	(7)  a blender;
	(8)  a motor fuel transporter;
	(9)  an aviation fuel dealer; [or]
	(10)  an interstate trucker; or
	(11)  a dealer.
	SECTION 21.  Sections 162.107(a) and (b), Tax Code, are
	amended to read as follows:
	(a)  A person may elect to obtain a permissive supplier
	license to collect the state gasoline tax imposed by [under] this
	subchapter for gasoline that is removed at a terminal in another
	state and has this state as the destination state.
	(b)  With respect to gasoline that is removed by the licensed
	permissive supplier at a terminal located in another state and that
	has this state as the destination state, a licensed permissive
	supplier shall:
	(1)  collect the state gasoline tax due to this state on
	the gasoline;
	(2)  waive any defense that this state lacks
	jurisdiction to require the supplier to collect the state gasoline
	tax due to this state on the gasoline under this subchapter;
	(3)  report and pay the state gasoline tax and the
	county gasoline tax due on the gasoline in the same manner as if the
	removal had occurred at a terminal located in this state;
	(4)  keep records of the removal of the gasoline and
	submit to audits concerning the gasoline as if the removal had
	occurred at a terminal located in this state; and
	(5)  report sales by the permissive supplier to a
	person who is not licensed in this state.
	SECTION 22.  Section 162.108, Tax Code, is amended by adding
	Subsection (a-1) to read as follows:
	(a-1)  In addition to the information required by Subsection
	(a), an applicant for a license as a dealer must list on the
	application:
	(1)  the street address, city, county, and zip code of
	the location for which the applicant seeks a license to sell or
	dispense motor fuel at retail;
	(2)  the applicant's social security number, driver's
	license number, and federal employer identification number if the
	applicant is a natural person who is not licensed as a supplier,
	permissive supplier, or terminal operator; and
	(3)  if the applicant is a corporation, limited
	liability company, professional association, partnership, or other
	entity that is not licensed as a supplier, permissive supplier, or
	terminal operator and is not wholly owned by an entity that is
	licensed as a supplier, permissive supplier, or terminal operator,
	the physical address, mailing address, social security number, and
	driver's license number of:
	(A)  each natural person responsible for the
	purchase of motor fuel for sale by the applicant; and
	(B)  each officer, director, manager, member,
	shareholder, and partner of the applicant.
	SECTION 23.  Section 162.110(a), Tax Code, is amended to
	read as follows:
	(a)  The license issued to a supplier, permissive supplier,
	distributor, importer, exporter, terminal operator, blender, [or]
	motor fuel transporter, or dealer is permanent and is valid during
	the period the license holder has in force and effect the required
	bond or security and furnishes timely reports and supplements as
	required, or until the license is surrendered by the holder or
	canceled by the comptroller. The comptroller shall cancel a
	license under this subsection if a purchase, sale, or use of
	gasoline has not been reported by the license holder during the
	previous nine months.
	SECTION 24.  Section 162.111(a), Tax Code, is amended to
	read as follows:
	(a)  The comptroller shall determine the amount of security
	required of a supplier, permissive supplier, distributor,
	exporter, importer, dealer, or blender, taking into consideration
	the amount of tax that has or is expected to become due from the
	person, any past history of the person as a license holder under
	this chapter or its predecessor, and the necessity to protect this
	state against the failure to pay the tax as the tax becomes due.
	SECTION 25.  Sections 162.112(a) and (b), Tax Code, are
	amended to read as follows:
	(a)  The comptroller, on or before December 20 of each year,
	shall make available to all license holders an alphabetical list of
	licensed suppliers, permissive suppliers, distributors, aviation
	fuel dealers, importers, exporters, blenders, dealers, and
	terminal operators. A supplemental list of additions and deletions
	shall be made available to the license holders each month. A
	current and effective license or the list furnished by the
	comptroller is evidence of the validity of the license until the
	comptroller notifies license holders of a change in the status of a
	license holder.
	(b)  A licensed supplier, permissive supplier, dealer, or
	distributor who sells gasoline tax-free to a person whose
	supplier's, permissive supplier's, dealer's, or aviation fuel
	dealer's license has been canceled or revoked under this chapter is
	liable for any tax due on gasoline sold after receiving notice of
	the cancellation or revocation.
	SECTION 26.  Sections 162.113(d), (d-1), and (e), Tax Code,
	are amended to read as follows:
	(d)  The supplier or permissive supplier, after requesting a
	credit under this section, shall terminate the ability of the
	licensed distributor or licensed importer to defer the payment of
	state gasoline tax.  The supplier or permissive supplier may not
	reinstate the right of the licensed distributor or licensed
	importer to defer the payment of state gasoline tax until the first
	anniversary of the date the supplier or permissive supplier
	requested the credit, subject to Subsection (d-1).
	(d-1)  A supplier or permissive supplier may reinstate the
	right of a licensed distributor or licensed importer to defer the
	payment of state gasoline tax before the date prescribed by
	Subsection (d) if the comptroller determines that:
	(1)  the supplier or permissive supplier erroneously
	requested the credit that resulted in the termination of the
	licensed distributor's or licensed importer's right to defer
	payment; or
	(2)  the licensed distributor or licensed importer
	failed to pay state gasoline taxes due because of circumstances
	that may have been outside the distributor's or importer's control.
	(e)  A licensed distributor or licensed importer who makes
	timely payments of the state gasoline tax imposed by [under] this
	subchapter is entitled to retain an amount equal to 1.75 percent of
	the total state gasoline tax [taxes] to be paid to the supplier or
	permissive supplier to cover administrative expenses.
	SECTION 27.  Section 162.114(a), Tax Code, is amended to
	read as follows:
	(a)  Except as provided by Subsection (b), each person who is
	liable for the taxes [tax] imposed by this subchapter, a terminal
	operator, a dealer, and a licensed distributor shall file a return
	on or before the 25th day of the month following the end of each
	calendar month.
	SECTION 28.  Sections 162.115(b), (c), (e), (g), and (h),
	Tax Code, are amended to read as follows:
	(b)  A distributor shall keep:
	(1)  a record showing the number of gallons of:
	(A)  all gasoline inventories on hand at the first
	of each month;
	(B)  all gasoline blended;
	(C)  all gasoline purchased or received, showing
	the name of the seller and the date of each purchase or receipt;
	(D)  all gasoline sold, distributed, or used,
	showing:
	(i)  the name of the purchaser;
	(ii)  the county in this state to which the
	gasoline was delivered;
	(iii)  the amount of county gasoline tax
	collected from the purchaser; and
	(iv)  the date of the sale, distribution, or
	use; and
	(E)  all gasoline lost by fire, theft, or
	accident;
	(2)  an itemized statement showing by load the number
	of gallons of all gasoline:
	(A)  received during the preceding calendar month
	for export and the location of the loading;
	(B)  sold, distributed, or used, showing:
	(i)  the name of the purchaser;
	(ii)  the county or counties in this state;
	(iii)  the amount of county gasoline tax
	collected from the purchaser; and
	(iv)  the date of the sale, distribution, or
	use;
	(C)  exported from this state by destination state
	or country; and
	(D) [(C)]  imported during the preceding calendar
	month by state or country of origin; [and]
	(3)  for gasoline exported from this state, proof of
	payment of tax to the destination state in a form acceptable to the
	comptroller; and
	(4)  all shipping documents.
	(c)  An importer shall keep:
	(1)  a record showing the number of gallons of:
	(A)  all gasoline inventories on hand at the first
	of each month;
	(B)  all gasoline compounded or blended;
	(C)  all gasoline purchased or received, showing
	the name of the seller and the date of each purchase or receipt;
	(D)  all gasoline sold, distributed, or used,
	showing the name of the purchaser, the county in this state, and the
	date of the sale, distribution, or use; and
	(E)  all gasoline lost by fire, theft, or
	accident; and
	(2)  an itemized statement showing by load the number
	of gallons of all gasoline:
	(A)  received during the preceding calendar month
	for export and the location of the loading;
	(B)  sold, distributed, or used, showing the name
	of the purchaser, the county or counties in this state, and the date
	of the sale, distribution, or use;
	(C)  exported from this state by destination state
	or country; and
	(D) [(C)]  imported during the preceding calendar
	month by state or country of origin.
	(e)  A blender shall keep a record showing the number of
	gallons of:
	(1)  all gasoline inventories on hand at the first of
	each month;
	(2)  all gasoline compounded or blended;
	(3)  all gasoline purchased or received, showing the
	name of the seller and the date of each purchase or receipt;
	(4)  all gasoline sold, distributed, or used, showing
	the name of the purchaser, the county in this state, and the date of
	the sale or use; and
	(5)  all gasoline lost by fire, theft, or accident.
	(g)  A motor fuel transporter shall keep a complete and
	separate record of each intrastate and interstate transportation of
	gasoline, showing:
	(1)  the date of transportation;
	(2)  the name of the consignor and consignee;
	(3)  the means of transportation;
	(4)  the quantity and kind of gasoline transported;
	(5)  full data concerning the diversion of shipments,
	including the county in this state and the number of gallons
	diverted from interstate to intrastate and intrastate to interstate
	commerce; and
	(6)  the points of origin and destination, the county
	in this state, the number of gallons shipped or transported, the
	date, the consignee and the consignor, and the kind of gasoline that
	has been diverted.
	(h)  A dealer shall keep a record showing the number of
	gallons of:
	(1)  gasoline inventories on hand at the first of each
	month;
	(2)  all gasoline purchased or received, showing the
	name of the seller and the date of each purchase or receipt;
	(3)  all gasoline sold or used, showing the date of the
	sale or use; [and]
	(4)  all gasoline lost by fire, theft, or accident; and
	(5)  the shipping documents.
	SECTION 29.  Section 162.116(c), Tax Code, is amended to
	read as follows:
	(c)  A supplier or permissive supplier may take a credit for
	any state gasoline tax [taxes] that was [were] not remitted in a
	previous period to the supplier or permissive supplier by a
	licensed distributor or licensed importer as required by Section
	162.113. The supplier or permissive supplier is eligible to take
	the credit if the comptroller is notified of the default within 15
	days after the default occurs. If a license holder pays to a
	supplier or permissive supplier the tax owed, but the payment
	occurs after the supplier or permissive supplier has taken a credit
	on its return, the supplier or permissive supplier shall remit the
	payment to the comptroller with the next monthly return after
	receipt of the tax, plus a penalty of 10 percent of the amount of
	unpaid taxes and interest at the rate provided by Section 111.060
	beginning on the date the credit was taken.
	SECTION 30.  Section 162.118, Tax Code, is amended to read as
	follows:
	Sec. 162.118.  INFORMATION REQUIRED ON DISTRIBUTOR'S
	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a)  The monthly return
	and supplements of each distributor shall contain for the period
	covered by the return:
	(1)  the number of net gallons of gasoline received by
	the distributor during the month, sorted by product code, seller,
	point of origin, destination state, carrier, and receipt date;
	(2)  the number of net gallons of gasoline removed at a
	terminal rack by the distributor during the month, sorted by
	product code, seller, terminal code, and carrier;
	(3)  the number of net gallons of gasoline removed by
	the distributor during the month for export, sorted by product
	code, terminal code, bulk plant address, destination state, and
	carrier;
	(4)  the number of net gallons of gasoline removed by
	the distributor during the month from a terminal located in another
	state for conveyance to this state, as indicated on the shipping
	document for the gasoline, sorted by product code, seller, terminal
	code, bulk plant address, and carrier;
	(5)  the number of net gallons of gasoline the
	distributor sold during the month in transactions exempt under
	Section 162.104, sorted by product code and purchaser; [and]
	(6)  the number of net gallons delivered into a taxing
	county sorted by taxing county and purchaser; and
	(7)  any other information required by the comptroller.
	(b)  A distributor or importer who makes timely payments of
	the county tax imposed by this subchapter is entitled to retain an
	amount equal to two percent of the total county gasoline taxes
	remitted to the comptroller to cover administrative expenses.
	SECTION 31.  Section 162.123, Tax Code, is amended to read as
	follows:
	Sec. 162.123.  INFORMATION REQUIRED ON BLENDER'S RETURN.
	The monthly return and supplements of each blender shall contain
	for the period covered by the return:
	(1)  the number of net gallons of gasoline received by
	the blender during the month, sorted by product code, seller, point
	of origin, carrier, and receipt date;
	(2)  the number of net gallons of product blended with
	gasoline during the month, sorted by product code, type of blending
	agent if no product code exists, seller, and carrier;
	(3)  the number of net gallons of blended gasoline sold
	during the month and the license number or name, [and] address, and
	county in this state of the entity receiving the blended gasoline;
	and
	(4)  any other information required by the comptroller.
	SECTION 32.  Subchapter B, Chapter 162, Tax Code, is amended
	by adding Section 162.1235 to read as follows:
	Sec. 162.1235.  INFORMATION REQUIRED ON DEALER'S RETURN.
	The monthly return and supplements of each dealer shall contain for
	the period covered by the return:
	(1)  the number of gallons of gasoline inventories on
	hand at the first of each month, sorted by product code;
	(2)  the number of gallons of gasoline received by the
	dealer during the month, sorted by seller;
	(3)  the number of gallons of gasoline inventories on
	hand at the end of each month; and
	(4)  any other information required by the comptroller.
	SECTION 33.  Sections 162.125(g-1) and (g-2), Tax Code, are
	amended to read as follows:
	(g-1)  A volunteer fire department exempt from the taxes
	[tax] imposed under this subchapter that paid a tax on the purchase
	of gasoline is entitled to a refund of the tax paid, and the
	volunteer fire department may file a refund claim with the
	comptroller for that amount.
	(g-2)  A nonprofit entity exempted under Section
	162.104(a)(9) from the taxes [tax] imposed under this subchapter
	that paid a tax on the purchase of gasoline is entitled to a refund
	of the tax paid, and the entity may file a refund claim with the
	comptroller for that amount.
	SECTION 34.  Sections 162.127(a) and (d), Tax Code, are
	amended to read as follows:
	(a)  A refund claim must be filed on a form provided by the
	comptroller, be supported by the original invoice issued by the
	seller, and contain:
	(1)  the stamped or preprinted name and address,
	including county in this state, of the seller;
	(2)  the name and address of the purchaser;
	(3)  the date of delivery of the gasoline;
	(4)  the date of the issuance of the invoice, if
	different from the date of fuel delivery;
	(5)  the number of gallons of gasoline delivered;
	(6)  the amount of state or county gasoline taxes paid
	[tax], either separately stated from the selling price or stated
	with a notation that both state and county taxes are included if
	both apply [the selling price includes the tax]; and
	(7)  the type of vehicle or equipment, such as a
	motorboat, railway engine, motor vehicle, off-highway vehicle, or
	refrigeration unit or stationary engine, into which the fuel is
	delivered.
	(d)  A distributor or person who does not hold a license who
	files a valid refund claim with the comptroller shall be paid by a
	warrant issued by the comptroller. For purposes of this section, a
	distributor meets the requirement of filing a valid refund claim
	for state and county gasoline taxes if the distributor designates
	the gallons of gasoline sold or used that are the subject of the
	refund claim on the monthly report submitted by the distributor to
	the comptroller.
	SECTION 35.  The heading to Section 162.201, Tax Code, is
	amended to read as follows:
	Sec. 162.201.  POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
	SECTION 36.  Sections 162.201(a), (b), (c), and (f), Tax
	Code, are amended to read as follows:
	(a)  A tax is imposed on the removal of diesel fuel from the
	terminal using the terminal rack other than by bulk transfer.  The
	supplier or permissive supplier is liable for and shall collect the
	tax imposed by this section [subchapter] from the person who orders
	the withdrawal at the terminal rack.
	(b)  A tax is imposed at the time diesel fuel is imported into
	this state, other than by a bulk transfer, for delivery to a
	destination in this state.  The supplier or permissive supplier is
	liable for and shall collect the tax imposed by this section
	[subchapter] from the person who imports the diesel fuel into this
	state.  If the seller is not a supplier or permissive supplier, the
	person who imports the diesel fuel into this state is liable for and
	shall pay the tax.
	(c)  A tax is imposed on the removal of diesel fuel from the
	bulk transfer/terminal system in this state.  The supplier is
	liable for and shall collect the tax imposed by this section
	[subchapter] from the person who orders the removal from the bulk
	transfer/terminal system.
	(f)  The terminal operator in this state is considered a
	supplier for the purpose of the tax imposed under this section
	[subchapter] unless at the time of removal:
	(1)  the terminal operator has a terminal operator's
	license issued for the facility from which the diesel fuel is
	withdrawn;
	(2)  the terminal operator verifies that the person who
	removes the diesel fuel has a supplier's license; and
	(3)  the terminal operator does not have a reason to
	believe that the supplier's license is not valid.
	SECTION 37.  Subchapter C, Chapter 162, Tax Code, is amended
	by adding Section 162.2011 to read as follows:
	Sec. 162.2011.  COUNTY DIESEL FUEL TAX IMPOSED; POINT OF
	COLLECTION. (a) In a county that imposes the tax on motor vehicle
	fuels authorized by Chapter 616, Local Government Code, a tax is
	imposed on the delivery of diesel fuel into the taxing county.
	(b)  The distributor shall collect the tax imposed by this
	section from each person on delivery of diesel fuel into a taxing
	county.
	(c)  A tax is imposed on diesel fuel that is otherwise exempt
	from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
	is sold in this state to a person who does not hold a license under
	Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
	subsequently delivered into a taxing county.  The person who
	delivered the diesel fuel into the taxing county is liable for and
	shall collect the tax.
	(d)  A tax is imposed on diesel fuel that is otherwise exempt
	from taxation under Section 162.204(a)(4) or (7) if before export
	the diesel fuel is sold in this state to a person who holds a license
	under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
	fuel is subsequently delivered to a taxing county.  The person who
	delivered the diesel fuel into the taxing county is liable for and
	shall pay the tax.
	(e)  In each subsequent sale of diesel fuel on which the tax
	has been paid, the tax imposed by this section shall be collected
	from the purchaser so that the tax is paid ultimately by the person
	who uses the diesel fuel. Diesel fuel is considered to be used when
	it is delivered into a fuel supply tank.
	SECTION 38.  Section 162.202, Tax Code, is amended to read as
	follows:
	Sec. 162.202.  TAX RATES [RATE]. (a)  The state diesel fuel
	tax rate is 20 cents for each net gallon or fractional part of a net
	gallon on which the tax is imposed under Section 162.201.
	(b)  In a taxing county, the county diesel fuel tax rate for
	each net gallon or fractional part of a net gallon is the rate
	established by Chapter 616, Local Government Code.
	SECTION 39.  The heading to Section 162.2025, Tax Code, is
	amended to read as follows:
	Sec. 162.2025.  SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
	FROM PURCHASER.
	SECTION 40.  Sections 162.2025(a), (b), and (c), Tax Code,
	are amended to read as follows:
	(a)  In each subsequent sale of diesel fuel on which the
	taxes imposed by this subchapter have [tax has] been paid, the taxes
	[tax imposed by this subchapter] shall be collected from the
	purchaser so that the taxes are [tax is] paid ultimately by the
	person who uses the diesel fuel.  Diesel fuel is considered to be
	used when it is delivered into a fuel supply tank.
	(b)  The taxes [tax] imposed by this subchapter must be
	stated separately from the sales price of diesel fuel and
	identified as diesel fuel taxes [tax] on the invoice or receipt
	issued to a purchaser.  Backup diesel fuel taxes [tax] may be
	identified as diesel fuel taxes [tax].  The taxes [tax] must be
	separately stated and identified in the same manner on a shipping
	document, if the shipping document includes the sales price of the
	diesel fuel.
	(c)  Except as provided by Subsection (d), the sales price of
	diesel fuel stated on an invoice, receipt, or shipping document is
	presumed to be exclusive of the taxes [tax] imposed by this
	subchapter.  The seller or purchaser may overcome the presumption
	by using the seller's records to show that the taxes [tax] imposed
	by this subchapter were [was] included in the sales price.
	SECTION 41.  The heading to Section 162.203, Tax Code, is
	amended to read as follows:
	Sec. 162.203.  BACKUP STATE DIESEL FUEL TAX; LIABILITY.
	SECTION 42.  Sections 162.203(a) and (c), Tax Code, are
	amended to read as follows:
	(a)  A backup tax is imposed at the rate prescribed by
	Section 162.202(a) [162.202] on:
	(1)  a person who obtains a refund of tax on diesel fuel
	by claiming the diesel fuel was used for an off-highway purpose, but
	actually uses the diesel fuel to operate a motor vehicle on a public
	highway;
	(2)  a person who operates a motor vehicle on a public
	highway using diesel fuel on which tax has not been paid;
	(3)  a person who sells to the ultimate consumer diesel
	fuel on which a tax has not been paid and who knew or had reason to
	know that the diesel fuel would be used for a taxable purpose; and
	(4)  a person, other than a person exempted under
	Section 162.204, who acquires diesel fuel on which tax has not been
	paid from any source in this state.
	(c)  The tax imposed by [under] Subsection (a)(3) is also
	imposed on the ultimate consumer.
	SECTION 43.  Subchapter C, Chapter 162, Tax Code, is amended
	by adding Section 162.2035 to read as follows:
	Sec. 162.2035.  BACKUP COUNTY DIESEL FUEL TAX; LIABILITY.
	(a) A backup tax is imposed at the rate prescribed by Section
	162.202(b) on:
	(1)  a person who, in a taxing county:
	(A)  delivers diesel fuel into the fuel supply
	tank of a motor vehicle;
	(B)  purchases or receives diesel fuel from
	another person; or
	(C)  sells or delivers diesel fuel to another
	person; and
	(2)  a person who obtains a refund of the tax imposed by
	Section 162.2011 for diesel fuel that the person delivered into the
	fuel supply tank of a motor vehicle, purchased or acquired, or sold
	or delivered in a taxing county.
	(b)  A person who sells diesel fuel subject to the tax
	imposed by this section shall at the time of sale collect the tax
	from the purchaser or recipient of the diesel fuel in addition to
	the selling price and is liable to this state for the taxes
	collected at the time and in the manner provided by this chapter.
	(c)  The following are exempt from the tax imposed by this
	section:
	(1)  diesel fuel on which the tax imposed by Section
	162.2011 had been paid; and
	(2)  diesel fuel exempt under Section 162.204.
	(d)  The tax imposed by this section is in addition to any
	penalty imposed under this chapter.
	SECTION 44.  Sections 162.204(a) and (g), Tax Code, are
	amended to read as follows:
	(a)  The taxes [tax] imposed by this subchapter do [does] not
	apply to:
	(1)  diesel fuel sold to the United States for its
	exclusive use, provided that the exemption does not apply to diesel
	fuel sold or delivered to a person operating under a contract with
	the United States;
	(2)  diesel fuel sold to a public school district in
	this state for the district's exclusive use;
	(3)  diesel fuel sold to a commercial transportation
	company or a metropolitan rapid transit authority operating under
	Chapter 451, Transportation Code, that provides public school
	transportation services to a school district under Section 34.008,
	Education Code, and that uses the diesel fuel only to provide those
	services;
	(4)  diesel fuel exported by either a licensed supplier
	or a licensed exporter from this state to any other state, provided
	that the bill of lading indicates the destination state and the
	supplier collects the destination state tax;
	(5)  diesel fuel moved by truck or railcar between
	licensed suppliers or licensed permissive suppliers and in which
	the diesel fuel removed from the first terminal comes to rest in the
	second terminal, provided that the removal from the second terminal
	rack is subject to the state diesel fuel tax imposed by this
	subchapter;
	(6)  diesel fuel delivered or sold into a storage
	facility of a licensed aviation fuel dealer from which the diesel
	fuel will be delivered solely into the fuel supply tanks of aircraft
	or aircraft servicing equipment, or sold from one licensed aviation
	fuel dealer to another licensed aviation fuel dealer who will
	deliver the diesel fuel exclusively into the fuel supply tanks of
	aircraft or aircraft servicing equipment;
	(7)  diesel fuel exported to a foreign country if the
	bill of lading indicates the foreign destination and the fuel is
	actually exported to the foreign country;
	(8)  dyed diesel fuel sold or delivered by a supplier to
	another supplier and dyed diesel fuel sold or delivered by a
	supplier or distributor into the bulk storage facility of a dyed
	diesel fuel bonded user or to a purchaser who provides a signed
	statement as provided by Section 162.206;
	(9)  the volume of water, fuel ethanol, renewable
	diesel, biodiesel, or mixtures thereof that are blended together
	with taxable diesel fuel when the finished product sold or used is
	clearly identified on the retail pump, storage tank, and sales
	invoice as a combination of diesel fuel and water, fuel ethanol,
	renewable diesel, biodiesel, or mixtures thereof;
	(10)  dyed diesel fuel sold by a supplier or permissive
	supplier to a distributor, or by a distributor to another
	distributor;
	(11)  dyed diesel fuel delivered by a license holder
	into the fuel supply tanks of railway engines, motorboats, or
	refrigeration units or other stationary equipment powered by a
	separate motor from a separate fuel supply tank;
	(12)  dyed kerosene when delivered by a supplier,
	distributor, or importer into a storage facility at a retail
	business from which all deliveries are exclusively for heating,
	cooking, lighting, or similar nonhighway use;
	(13)  diesel fuel used by a person, other than a
	political subdivision, who owns, controls, operates, or manages a
	commercial motor vehicle as defined by Section 548.001,
	Transportation Code, if the fuel:
	(A)  is delivered exclusively into the fuel supply
	tank of the commercial motor vehicle; and
	(B)  is used exclusively to transport passengers
	for compensation or hire between points in this state on a fixed
	route or schedule;
	(14)  diesel fuel sold to a volunteer fire department
	in this state for the department's exclusive use; or
	(15)  diesel fuel sold to a nonprofit entity that is
	organized for the sole purpose of and engages exclusively in
	providing emergency medical services and that uses the diesel fuel
	exclusively to provide emergency medical services, including
	rescue and ambulance services.
	(g)  In lieu of claiming the exemption and complying with the
	labeling requirements provided by Subsection (a)(9), a person to
	whom Section 162.201 applies may elect to collect and remit the
	taxes [tax] otherwise imposed by [under] this subchapter on the
	materials described by Subsection (a)(9) as if the materials were
	taxable diesel fuel.  The labeling requirements provided by
	Subsection (a)(9) do not apply to a dealer who sells taxable diesel
	fuel blended with materials described by Subsection (a)(9) on which
	a tax has been paid as provided by this subsection.  Materials
	described by Subsection (a)(9) on which a tax has been paid as
	provided by this subsection are not exempt from taxation [tax]
	under Subsection (a)(9) on a subsequent sale, and a license holder
	or other purchaser is not entitled to a refund or credit under
	Subsection (a)(9) for a purchase of taxable diesel fuel blended
	with those materials.
	SECTION 45.  Section 162.205(a), Tax Code, is amended to
	read as follows:
	(a)  A person shall obtain the appropriate license or
	licenses issued by the comptroller before conducting the activities
	of:
	(1)  a supplier, who may also act as a distributor,
	importer, exporter, blender, motor fuel transporter, dealer, or
	aviation fuel dealer without securing a separate license, but who
	is subject to all other conditions, requirements, and liabilities
	imposed on those license holders;
	(2)  a permissive supplier, who may also act as a
	distributor, importer, exporter, blender, motor fuel transporter,
	dealer, or aviation fuel dealer without securing a separate license
	but who is subject to all other conditions, requirements, and
	liabilities imposed on those license holders;
	(3)  a distributor, who may also act as an importer,
	exporter, blender, [or] motor fuel transporter, or dealer without
	securing a separate license, but who is subject to all other
	conditions, requirements, and liabilities imposed on those license
	holders;
	(4)  an importer, who may also act as an exporter,
	blender, [or] motor fuel transporter, or dealer without securing a
	separate license, but who is subject to all other conditions,
	requirements, and liabilities imposed on those license holders;
	(5)  a terminal operator;
	(6)  an exporter;
	(7)  a blender;
	(8)  a motor fuel transporter;
	(9)  an aviation fuel dealer;
	(10)  an interstate trucker; [or]
	(11)  a dyed diesel fuel bonded user; or
	(12)  a dealer.
	SECTION 46.  Section 162.206(d), Tax Code, is amended to
	read as follows:
	(d)  Any gallons purchased or sold in excess of the
	limitations prescribed by Subsection (c) constitute a [taxable
	purchase or] sale subject to the taxes imposed by this chapter. A
	purchaser that exceeds the limitations prescribed by Subsection (c)
	shall be required to obtain a dyed diesel fuel bonded user license.
	SECTION 47.  Sections 162.208(a) and (b), Tax Code, are
	amended to read as follows:
	(a)  A person may elect to obtain a permissive supplier
	license to collect the state diesel fuel tax imposed by [under] this
	subchapter for diesel fuel that is removed at a terminal in another
	state and has this state as the destination state.
	(b)  With respect to diesel fuel that is removed by the
	licensed permissive supplier at a terminal located in another state
	and that has this state as the destination state, a licensed
	permissive supplier shall:
	(1)  collect the state diesel fuel tax due to this state
	on the diesel fuel;
	(2)  waive any defense that this state lacks
	jurisdiction to require the supplier to collect the state diesel
	fuel tax due to this state on the diesel fuel under this subchapter;
	(3)  report and pay the state diesel fuel tax due on the
	diesel fuel in the same manner as if the removal had occurred at a
	terminal located in this state;
	(4)  keep records of the removal of the diesel fuel and
	submit to audits concerning the diesel fuel as if the removal had
	occurred at a terminal located in this state; and
	(5)  report sales by the permissive supplier to a
	person who is not licensed in this state.
	SECTION 48.  Section 162.209, Tax Code, is amended by adding
	Subsection (a-1) to read as follows:
	(a-1)  In addition to the information required by Subsection
	(a), an applicant for a license as a dealer must list on the
	application:
	(1)  the street address, city, county, and zip code of
	the location for which the applicant seeks a license to sell or
	dispense motor fuel at retail;
	(2)  the applicant's social security number, driver's
	license number, and federal employer identification number if the
	applicant is a natural person who is not licensed as a supplier,
	permissive supplier, or terminal operator; and
	(3)  if the applicant is a corporation, limited
	liability company, professional association, partnership or other
	entity that is not licensed as a supplier, permissive supplier, or
	terminal operator and is not wholly owned by an entity that is
	licensed as a supplier, permissive supplier, or terminal operator,
	the physical address, mailing address, social security number, and
	driver's license number of:
	(A)  each natural person responsible for the
	purchase of motor fuel for sale by the applicant; and
	(B)  each officer, director, manager, member,
	shareholder, and partner of the applicant.
	SECTION 49.  Section 162.211(a), Tax Code, is amended to
	read as follows:
	(a)  The license issued to a supplier, permissive supplier,
	distributor, importer, terminal supplier, exporter, blender,
	dealer, motor fuel transporter, or dyed diesel fuel bonded user is
	permanent and is valid during the period the license holder has in
	force and effect the required bond or security and furnishes timely
	reports and supplements as required, or until the license is
	surrendered by the holder or canceled by the comptroller. The
	comptroller shall cancel a license under this subsection if a
	purchase, sale, or use of diesel fuel has not been reported by the
	license holder during the previous nine months.
	SECTION 50.  Section 162.212(a), Tax Code, is amended to
	read as follows:
	(a)  The comptroller shall determine the amount of security
	required of a supplier, permissive supplier, distributor,
	exporter, importer, dealer, blender, or dyed diesel fuel bonded
	user, taking into consideration the amount of tax that has or is
	expected to become due from the person, any past history of the
	person as a license holder under this chapter and its predecessor,
	and the necessity to protect this state against the failure to pay
	the tax as the tax becomes due.
	SECTION 51.  Section 162.213(a), Tax Code, is amended to
	read as follows:
	(a)  The comptroller, on or before December 20 of each year,
	shall make available to all license holders an alphabetical list of
	licensed suppliers, permissive suppliers, distributors, aviation
	fuel dealers, importers, exporters, blenders, dealers, terminal
	operators, and dyed diesel fuel bonded users. A supplemental list
	of additions and deletions shall be made available to the license
	holders each month. A current and effective license or the list
	furnished by the comptroller is evidence of the validity of the
	license until the comptroller notifies license holders of a change
	in the status of a license holder.
	SECTION 52.  Sections 162.214(c), (d), (d-1), and (e), Tax
	Code, are amended to read as follows:
	(c)  If the supplier or permissive supplier cannot secure
	from the licensed distributor or licensed importer payment of taxes
	due for state diesel fuel removed from the terminal during the
	previous reporting period and the supplier elects to take a credit
	against a subsequent payment of diesel fuel tax to this state for
	the taxes not remitted to the supplier or permissive supplier by the
	licensed distributor or licensed importer, the supplier or
	permissive supplier shall notify the comptroller of the licensed
	distributor's or licensed importer's failure to remit tax in
	conjunction with the report requesting a credit.
	(d)  The supplier or permissive supplier, after requesting a
	credit under this section, shall terminate the ability of the
	licensed distributor or licensed importer to defer the payment of
	state diesel fuel tax.  The supplier or permissive supplier may not
	reinstate the right of the licensed distributor or licensed
	importer to defer the payment of state diesel fuel tax until the
	first anniversary of the date the supplier or permissive supplier
	requested the credit, subject to Subsection (d-1).
	(d-1)  A supplier or permissive supplier may reinstate the
	right of a licensed distributor or licensed importer to defer the
	payment of state diesel fuel tax before the date prescribed by
	Subsection (d) if the comptroller determines that:
	(1)  the supplier or permissive supplier erroneously
	requested the credit that resulted in the termination of the
	licensed distributor's or licensed importer's right to defer
	payment; or
	(2)  the licensed distributor or licensed importer
	failed to pay state diesel fuel taxes due because of circumstances
	that may have been outside the distributor's or importer's control.
	(e)  A licensed distributor or licensed importer who makes
	timely payments of the state diesel fuel tax imposed by [under] this
	subchapter is entitled to retain an amount equal to 1.75 percent of
	the total state diesel fuel tax [taxes] to be paid to the supplier
	or permissive supplier to cover administrative expenses.
	SECTION 53.  Section 162.215(a), Tax Code, is amended to
	read as follows:
	(a)  Except as provided by Subsection (b), each person who is
	liable for the taxes [tax] imposed by this subchapter, a terminal
	operator, a dealer, and a licensed distributor shall file a return
	on or before the 25th day of the month following the end of each
	calendar month.
	SECTION 54.  Sections 162.216(b), (c), (e), (g), and (h),
	Tax Code, are amended to read as follows:
	(b)  A distributor shall keep:
	(1)  a record showing the number of gallons of:
	(A)  all diesel fuel inventories on hand at the
	first of each month;
	(B)  all diesel fuel blended;
	(C)  all diesel fuel purchased or received,
	showing the name of the seller and the date of each purchase or
	receipt;
	(D)  all diesel fuel sold, distributed, or used,
	showing:
	(i)  the name of the purchaser;
	(ii)  the county or counties in this state;
	(iii)  the amount of county diesel fuel
	collected from the purchaser; and
	(iv)  the date of the sale, distribution, or
	use; and
	(E)  all diesel fuel lost by fire, theft, or
	accident;
	(2)  an itemized statement showing by load the number
	of gallons of all diesel fuel:
	(A)  received during the preceding calendar month
	for export and the location of the loading;
	(B)  sold, distributed, or used, showing:
	(i)  the name of the purchaser;
	(ii)  the destination county or counties in
	this state;
	(iii)  the amount of county diesel fuel tax
	collected from the purchaser; and
	(iv)  the date of the sale, distribution, or
	use;
	(C)  exported from this state by destination state
	or country; and
	(D) [(C)]  imported during the preceding calendar
	month, by state or country of origin; [and]
	(3)  for diesel fuel exported outside this state, proof
	of payment of tax to the destination state, in a form acceptable to
	the comptroller; and
	(4)  all shipping documents.
	(c)  An importer shall keep:
	(1)  a record showing the number of gallons of:
	(A)  all diesel fuel inventories on hand at the
	first of each month;
	(B)  all diesel fuel compounded or blended;
	(C)  all diesel fuel purchased or received,
	showing the name of the seller and the date of each purchase or
	receipt;
	(D)  all diesel fuel sold, distributed, or used,
	showing the name of the purchaser, the county in this state, and the
	date of the sale, distribution, or use; and
	(E)  all diesel fuel lost by fire, theft, or
	accident; and
	(2)  an itemized statement showing by load the number
	of gallons of all diesel fuel:
	(A)  received during the preceding calendar month
	for export and the location of the loading;
	(B)  sold, distributed, or used, showing the name
	of the purchaser, the county or counties in this state, and the date
	of sale, distribution, or use;
	(C)  exported from this state, by destination
	state or country; and
	(D) [(C)]  imported during the preceding calendar
	month, by state or country of origin.
	(e)  A blender shall keep a record showing the number of
	gallons of:
	(1)  all diesel fuel inventories on hand at the first of
	each month;
	(2)  all diesel fuel compounded or blended;
	(3)  all diesel fuel purchased or received, showing the
	name of the seller and the date of each purchase or receipt;
	(4)  all diesel fuel sold, distributed, or used,
	showing the name of the purchaser, the county in this state, and the
	date of the sale, distribution, or use; and
	(5)  all diesel fuel lost by fire, theft, or accident.
	(g)  A motor fuel transporter shall keep a complete and
	separate record of each intrastate and interstate transportation of
	diesel fuel, showing:
	(1)  the date of transportation;
	(2)  the name of the consignor and consignee;
	(3)  the method of transportation;
	(4)  the quantity and kind of diesel fuel transported;
	(5)  full data concerning the diversion of shipments,
	including the county in this state and the number of gallons
	diverted from interstate to intrastate and intrastate to interstate
	commerce; and
	(6)  the points of origin and destination, the county
	in this state, the number of gallons shipped or transported, the
	date, the consignee and the consignor, and the kind of diesel fuel
	that has been diverted.
	(h)  A dealer shall keep a record showing the number of
	gallons of:
	(1)  diesel fuel inventories on hand at the first of
	each month;
	(2)  all diesel fuel purchased or received, showing the
	name of the seller and the date of each purchase or receipt;
	(3)  all diesel fuel sold or used, showing the date of
	the sale or use; [and]
	(4)  all diesel fuel lost by fire, theft, or accident;
	and
	(5)  all shipping documents.
	SECTION 55.  Section 162.217(c), Tax Code, is amended to
	read as follows:
	(c)  A supplier or permissive supplier may take a credit for
	any state gasoline tax [taxes] that was [were] not remitted in a
	previous period to the supplier or permissive supplier by a
	licensed distributor or licensed importer as required by Section
	162.214. The supplier or permissive supplier is eligible to take
	this credit if the comptroller is notified of the default within 15
	days after the default occurs. If a license holder pays to a
	supplier or permissive supplier the tax owed, but the payment
	occurs after the supplier or permissive supplier has taken a credit
	on its return, the supplier or permissive supplier shall remit the
	payment to the comptroller with the next monthly return after
	receipt of the tax, plus a penalty of 10 percent of the amount of
	unpaid taxes and interest at the rate provided by Section 111.060
	beginning on the date the credit is taken.
	SECTION 56.  Section 162.219, Tax Code, is amended to read as
	follows:
	Sec. 162.219.  INFORMATION REQUIRED ON DISTRIBUTOR'S
	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
	supplements of each distributor shall contain for the period
	covered by the return:
	(1)  the number of net gallons of diesel fuel received
	by the distributor during the month, sorted by product code,
	seller, point of origin, destination state, carrier, and receipt
	date;
	(2)  the number of net gallons of diesel fuel removed at
	a terminal rack by the distributor during the month, sorted by
	product code, seller, terminal code, and carrier;
	(3)  the number of net gallons of diesel fuel removed by
	the distributor during the month for export, sorted by product
	code, terminal code, bulk plant address, destination state, and
	carrier;
	(4)  the number of net gallons of diesel fuel removed by
	the distributor during the month from a terminal located in another
	state for conveyance to this state, as indicated on the shipping
	document for the diesel fuel, sorted by product code, seller,
	terminal code, bulk plant address, and carrier;
	(5)  the number of net gallons of diesel fuel the
	distributor sold during the month in transactions exempt under
	Section 162.204, dyed diesel fuel sold to a purchaser under a signed
	statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
	user, sorted by product code and by the entity receiving the diesel
	fuel; [and]
	(6)  the number of net gallons delivered into a taxing
	county sorted by taxing county and purchaser; and
	(7)  any other information required by the comptroller.
	(b)  A distributor or importer who makes timely payments of
	the county tax imposed by this subchapter is entitled to retain an
	amount equal to two percent of the total county diesel fuel taxes
	remitted to the comptroller to cover administrative expenses.
	SECTION 57.  Section 162.224, Tax Code, is amended to read as
	follows:
	Sec. 162.224.  INFORMATION REQUIRED ON BLENDER'S RETURN.
	The monthly return and supplements of each blender shall contain
	for the period covered by the return:
	(1)  the number of net gallons of diesel fuel received
	by the blender during the month, sorted by product code, seller,
	point of origin, carrier, and receipt date;
	(2)  the number of net gallons of product blended with
	diesel fuel during the month, sorted by product code, type of
	blending agent if no product code exists, seller, and carrier;
	(3)  the number of net gallons of blended diesel fuel
	sold during the month and the license number or name, [and] address,
	and county in this state of the entity receiving the blended diesel
	fuel; and
	(4)  any other information required by the comptroller.
	SECTION 58.  Subchapter C, Chapter 162, Tax Code, is amended
	by adding Section 162.2245 to read as follows:
	Sec. 162.2245.  INFORMATION REQUIRED ON DEALER'S RETURN. The
	monthly return and supplements of each dealer shall contain for the
	period covered by the return:
	(1)  the number of gallons of diesel fuel inventories
	on hand at the first of each month, sorted by product code;
	(2)  the number of gallons of diesel fuel received by
	the dealer during the month, sorted by seller;
	(3)  the number of gallons of diesel fuel inventories
	on hand at the end of each month; and
	(4)  any other information required by the comptroller.
	SECTION 59.  Sections 162.227(f-1) and (f-2), Tax Code, are
	amended to read as follows:
	(f-1)  A volunteer fire department exempt from the taxes
	[tax] imposed under this subchapter that paid a tax on the purchase
	of diesel fuel is entitled to a refund of the tax paid, and the
	volunteer fire department may file a refund claim with the
	comptroller for that amount.
	(f-2)  A nonprofit entity exempted under Section
	162.204(a)(15) from the taxes [tax] imposed under this subchapter
	that paid a tax on the purchase of diesel fuel is entitled to a
	refund of the tax paid, and the entity may file a refund claim with
	the comptroller for that amount.
	SECTION 60.  Sections 162.229(a) and (d), Tax Code, are
	amended to read as follows:
	(a)  A refund claim must be filed on a form provided by the
	comptroller, be supported by the original invoice issued by the
	seller, and contain:
	(1)  the stamped or preprinted name and address,
	including county, of the seller;
	(2)  the name and address of the purchaser;
	(3)  the date of delivery of the diesel fuel;
	(4)  the date of the issuance of the invoice, if
	different from the date of fuel delivery;
	(5)  the number of gallons of diesel fuel delivered;
	(6)  the amount of state or county diesel fuel taxes
	paid [tax], either separately stated from the selling price or
	stated with a notation that both state and county taxes are included
	if both apply [the selling price includes the tax]; and
	(7)  the type of vehicle or equipment into which the
	fuel is delivered.
	(d)  A distributor or person who does not hold a license who
	files a valid refund claim with the comptroller shall be paid by a
	warrant issued by the comptroller. For purposes of this section, a
	distributor meets the requirement of filing a valid refund claim
	for state and county diesel fuel taxes if the distributor
	designates the gallons of diesel fuel sold or used that are the
	subject of the refund claim on the monthly report submitted by the
	distributor to the comptroller.
	SECTION 61.  Sections 162.401(b), (c), and (f), Tax Code,
	are amended to read as follows:
	(b)  The comptroller may add a penalty of 75 percent of the
	amount of taxes, penalties, and interest due if failure to file the
	report or pay the tax when it becomes due is attributable to fraud
	or an intent to evade the application of this chapter or a rule
	adopted under this chapter, [or] Chapter 111 of this code, or
	Chapter 616, Local Government Code.
	(c)  The penalties provided by Subsection (b) are intended to
	be remedial in nature and are provided for the protection of state
	and taxing county revenue and to reimburse the state and taxing
	counties for expenses incurred as a result of fraud, including
	expenses incurred in conducting an investigation.
	(f)  In addition to any other penalty authorized by this
	section, a person who fails to pay the tax imposed by Section
	162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
	due shall pay a penalty equal to the greater of $2,000 or five times
	the amount of the taxes [tax] due on the motor fuel.
	SECTION 62.  Sections 162.402(a), (c), and (d), Tax Code,
	are amended to read as follows:
	(a)  A person forfeits to the state a civil penalty of not
	less than $25 and not more than $200 if the person:
	(1)  refuses to stop and permit the inspection and
	examination of a motor vehicle transporting or using motor fuel on
	demand of a peace officer or the comptroller;
	(2)  operates a motor vehicle in this state without a
	valid interstate trucker's license or a trip permit when the person
	is required to hold one of those licenses or permits;
	(3)  transports gasoline or diesel fuel in any cargo
	tank that has a connection by pipe, tube, valve, or otherwise with
	the fuel injector or carburetor of, or with the fuel supply tank
	feeding the fuel injector or carburetor of, the motor vehicle
	transporting the product;
	(4)  sells or delivers gasoline or diesel fuel from any
	fuel supply tank connected with the fuel injector or carburetor of a
	motor vehicle;
	(5)  owns or operates a motor vehicle for which reports
	or mileage records are required by this chapter without an
	operating odometer or other device in good working condition to
	record accurately the miles traveled;
	(6)  furnishes to a licensed supplier or distributor a
	signed statement for purchasing diesel fuel tax-free and then uses
	the tax-free diesel fuel to operate a diesel-powered motor vehicle
	on a public highway;
	(7)  fails or refuses to comply with or violates a
	provision of this chapter;
	(8)  fails or refuses to comply with or violates a
	comptroller's rule for administering or enforcing this chapter;
	(9)  is an importer who does not obtain an import
	verification number when required by this chapter;
	(10)  purchases motor fuel for export, on which the
	taxes [tax] imposed by this chapter have [has] not been paid, and
	subsequently diverts or causes the motor fuel to be diverted to a
	destination in this state or any other state or country other than
	the originally designated state or country without first obtaining
	a diversion number;
	(11)  delivers compressed natural gas or liquefied
	natural gas into the fuel supply tank of a motor vehicle and the
	person does not hold a valid compressed natural gas and liquefied
	natural gas dealer's license; [or]
	(12)  makes a tax-free delivery of compressed natural
	gas or liquefied natural gas into the fuel supply tank of a motor
	vehicle, unless the delivery is exempt from tax under Section
	162.356; or
	(13)  transports motor fuel to a county in this state
	other than the county stated on the shipping document.
	(c)  A person receiving motor fuel who accepts a shipping
	document that does not conform with the requirements of Section
	162.004 or 162.016(a) is liable to this state for a civil penalty of
	$2,000 or five times the amount of the unpaid tax, whichever is
	greater, for each occurrence.
	(d)  A person who issues a shipping document that does not
	conform with the requirements of Section 162.004 or 162.016(a) is
	liable to this state for a civil penalty of $2,000 or five times the
	amount of the unpaid tax, whichever is greater, for each
	occurrence.
	SECTION 63.  Section 162.403, Tax Code, is amended to read as
	follows:
	Sec. 162.403.  CRIMINAL OFFENSES.  Except as provided by
	Section 162.404, a person commits an offense if the person:
	(1)  refuses to stop and permit the inspection and
	examination of a motor vehicle transporting or using motor fuel on
	the demand of a peace officer or the comptroller;
	(2)  is required to hold a valid trip permit or
	interstate trucker's license, but operates a motor vehicle in this
	state without a valid trip permit or interstate trucker's license;
	(3)  transports gasoline or diesel fuel in any cargo
	tank that has a connection by pipe, tube, valve, or otherwise with
	the fuel injector or carburetor or with the fuel supply tank feeding
	the fuel injector or carburetor of the motor vehicle transporting
	the product;
	(4)  sells or delivers gasoline or diesel fuel from a
	fuel supply tank that is connected with the fuel injector or
	carburetor of a motor vehicle;
	(5)  owns or operates a motor vehicle for which reports
	or mileage records are required by this chapter without an
	operating odometer or other device in good working condition to
	record accurately the miles traveled;
	(6)  sells or delivers dyed diesel fuel for the
	operation of a motor vehicle on a public highway;
	(7)  uses dyed diesel fuel for the operation of a motor
	vehicle on a public highway except as allowed under Section
	162.235;
	(8)  refuses to permit the comptroller or the attorney
	general to inspect, examine, or audit a book or record required to
	be kept by a license holder, other user, or any person required to
	hold a license under this chapter;
	(9)  refuses to permit the comptroller or the attorney
	general to inspect or examine any plant, equipment, materials, or
	premises where motor fuel is produced, processed, blended, stored,
	sold, delivered, or used;
	(10)  refuses to permit the comptroller, the attorney
	general, an employee of either of those officials, a peace officer,
	an employee of the Texas Commission on Environmental Quality, or an
	employee of the Department of Agriculture to measure or gauge the
	contents of or take samples from a storage tank or container on
	premises where motor fuel is produced, processed, blended, stored,
	sold, delivered, or used;
	(11)  is a license holder, a person required to be
	licensed, or another user and fails or refuses to make or deliver to
	the comptroller a report required by this chapter to be made and
	delivered to the comptroller;
	(12)  is an importer who does not obtain an import
	verification number when required by this chapter;
	(13)  purchases motor fuel for export, on which the
	taxes [tax] imposed by this chapter have [has] not been paid, and
	subsequently diverts or causes the motor fuel to be diverted to a
	destination in this state or any other state or country other than
	the originally designated state or country without first obtaining
	a diversion number;
	(13-a) transports motor fuel to a county in this state
	other than the county stated on the shipping document;
	(14)  conceals motor fuel with the intent of engaging
	in any conduct proscribed by this chapter or refuses to make sales
	of motor fuel on the volume-corrected basis prescribed by this
	chapter;
	(15)  refuses, while transporting motor fuel, to stop
	the motor vehicle the person is operating when called on to do so by
	a person authorized to stop the motor vehicle;
	(16)  refuses to surrender a motor vehicle and cargo
	for impoundment after being ordered to do so by a person authorized
	to impound the motor vehicle and cargo;
	(17)  mutilates, destroys, or secretes a book or record
	required by this chapter to be kept by a license holder, other user,
	or person required to hold a license under this chapter;
	(18)  is a license holder, other user, or other person
	required to hold a license under this chapter, or the agent or
	employee of one of those persons, and makes a false entry or fails
	to make an entry in the books and records required under this
	chapter to be made by the person or fails to retain a document as
	required by this chapter;
	(19)  transports in any manner motor fuel under a false
	cargo manifest or shipping document, or transports in any manner
	motor fuel to a location without delivering at the same time a
	shipping document relating to that shipment;
	(20)  engages in a motor fuel transaction that requires
	that the person have a license under this chapter without then and
	there holding the required license;
	(21)  makes and delivers to the comptroller a report
	required under this chapter to be made and delivered to the
	comptroller, if the report contains false information;
	(22)  forges, falsifies, or alters an invoice or
	shipping document prescribed by law;
	(23)  makes any statement, knowing said statement to be
	false, in a claim for a tax refund filed with the comptroller;
	(24)  furnishes to a licensed supplier or distributor a
	signed statement for purchasing diesel fuel tax-free and then uses
	the tax-free diesel fuel to operate a diesel-powered motor vehicle
	on a public highway;
	(25)  holds an aviation fuel dealer's license and makes
	a taxable sale or use of any gasoline or diesel fuel;
	(26)  fails to remit any tax funds collected or
	required to be collected by a license holder, another user, or any
	other person required to hold a license under this chapter;
	(27)  makes a sale of dyed diesel fuel tax-free into a
	storage facility of a person who:
	(A)  is not licensed as a distributor, as an
	aviation fuel dealer, or as a dyed diesel fuel bonded user; or
	(B)  does not furnish to the licensed supplier or
	distributor a signed statement prescribed in Section 162.206;
	(28)  makes a sale of gasoline tax-free to any person
	who is not licensed as an aviation fuel dealer;
	(29)  purchases any motor fuel tax-free when not
	authorized to make a tax-free purchase under this chapter;
	(30)  purchases motor fuel with the intent to evade any
	tax imposed by this chapter or accepts a delivery of motor fuel by
	any means and does not at the same time accept or receive a shipping
	document relating to the delivery;
	(31)  transports motor fuel for which a cargo manifest
	or shipping document is required to be carried without possessing
	or exhibiting on demand by an officer authorized to make the demand
	a cargo manifest or shipping document containing the information
	required to be shown on the manifest or shipping document;
	(32)  imports, sells, uses, blends, distributes, or
	stores motor fuel within this state on which a tax [the taxes]
	imposed by this chapter is [are] owed but has [have] not been first
	paid to or reported by a license holder, another user, or any other
	person required to hold a license under this chapter;
	(33)  blends products together to produce a blended
	fuel that is offered for sale, sold, or used and that expands the
	volume of the original product to evade paying applicable motor
	fuel taxes;
	(34)  evades or attempts to evade in any manner a tax
	imposed on motor fuel by this chapter;
	(35)  delivers compressed natural gas or liquefied
	natural gas into the fuel supply tank of a motor vehicle and the
	person does not hold a valid compressed natural gas and liquefied
	natural gas dealer's license; or
	(36)  makes a tax-free delivery of compressed natural
	gas or liquefied natural gas into the fuel supply tank of a motor
	vehicle, unless the delivery is exempt from tax under Section
	162.356.
	SECTION 64.  Section 162.405(d), Tax Code, is amended to
	read as follows:
	(d)  An offense under Section 162.403(6), (13-a), (17),
	(18), (19), (20), (21), (22), (23), or (24) is a felony of the third
	degree.
	SECTION 65.  Section 20.002(d), Transportation Code, is
	amended to read as follows:
	(d)  The fee imposed by this section is equal to 25 percent of
	the diesel fuel tax rate imposed under Section 162.202(a)
	[162.202], Tax Code.
	SECTION 66.  (a)  A county may not impose a motor fuels tax
	under Chapter 616, Local Government Code, as added by this Act,
	before the effective date of rules adopted by the comptroller of
	public accounts under Section 616.102, Local Government Code, as
	added by this Act.
	(b)  The comptroller of public accounts shall adopt the rules
	required by Section 616.102, Local Government Code, as added by
	this Act, not later than December 1, 2019.
	SECTION 67.  If the constitution of this state requires that
	one-fourth of the county motor fuels tax authorized by this Act be
	allocated to the available school fund, the county shall deposit
	that money into an account separate from the money collected under
	other provisions of this Act and shall allocate the money to the
	comptroller of public accounts for deposit in the state treasury
	for the purpose required by the constitution.
	SECTION 68.  This Act takes effect September 1, 2019.