By: Thierry, et al. H.B. No. 3599         (Senate Sponsor - Hinojosa, et al.)          (In the Senate - Received from the House May 9, 2023;   May 10, 2023, read first time and referred to Committee on Finance;   May 15, 2023, reported favorably by the following vote:  Yeas 16,   Nays 1; May 15, 2023, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to an exemption from certain motor fuel taxes for, and   registration fees for motor vehicles owned by, certain nonprofit   food banks.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 162.001, Tax Code, is amended by adding   Subdivision (45-a) to read as follows:                (45-a)  "Nonprofit food bank" means a nonprofit entity   that solicits, stores, and redistributes edible food to agencies   that feed needy families and individuals.          SECTION 2.  Section 162.104(a), Tax Code, is amended to read   as follows:          (a)  The tax imposed by this subchapter 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 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   or shipping documents indicate 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; or                (10)  sold to a nonprofit food bank and delivered into:                      (A)  the fuel supply tank of a motor vehicle with a   gross vehicle weight rating of at least 25,000 pounds that is owned   by the nonprofit food bank and used to deliver food; or                      (B)  a storage facility from which gasoline will   be delivered solely into the fuel supply tanks of motor vehicles   described by Paragraph (A).          SECTION 3.  Section 162.125(a), Tax Code, is amended to read   as follows:          (a)  A license holder may take a credit on a return for the   period in which the sale occurred if the license holder paid tax on   the purchase of gasoline and subsequently resells the gasoline   without collecting the tax to:                (1)  the United States government for its exclusive   use, provided that a credit is not allowed for gasoline used by a   person operating under contract with the United States;                (2)  a public school district in this state for the   district's exclusive use;                (3)  an exporter licensed under this subchapter if the   seller is a licensed supplier or distributor and the exporter   subsequently exports the gasoline to another state;                (4)  a licensed aviation fuel dealer if the seller is a   licensed distributor; [or]                (5)  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 exclusively to provide those services;   or                (6)  a nonprofit food bank that delivers or will   deliver the gasoline into the fuel supply tank of a motor vehicle   with a gross vehicle weight rating of at least 25,000 pounds that is   owned by the nonprofit food bank and used to deliver food.          SECTION 4.  Subchapter B, Chapter 162, Tax Code, is amended   by adding Section 162.1276 to read as follows:          Sec. 162.1276.  REFUND FOR CERTAIN NONPROFIT FOOD BANKS.   (a)  A nonprofit food bank is entitled to and may file a claim with   the comptroller for a refund in the amount provided by this section   of taxes paid under this subchapter for gasoline delivered into the   fuel supply tank of a motor vehicle with a gross vehicle weight   rating of at least 25,000 pounds that is owned by the nonprofit food   bank and used to deliver food.          (b)  The amount of the refund under Subsection (a) is equal   to the amount of tax paid under this subchapter for gasoline that   qualifies for the refund and is purchased by the nonprofit food   bank.          (c)  A nonprofit food bank that requests a refund under this   section shall maintain all supporting documentation relating to the   refund until the sixth anniversary of the date of the request.          SECTION 5.  Section 162.204(a), Tax Code, is amended to read   as follows:          (a)  The tax imposed by this subchapter does not apply to:                (1)  diesel fuel sold to the United States for its   exclusive use, provided that the exemption does not apply to diesel   fuel sold or delivered to a person operating under a contract with   the United States;                (2)  diesel fuel sold to a public school district in   this state for the district's exclusive use;                (3)  diesel fuel sold to a commercial transportation   company or a metropolitan rapid transit authority operating under   Chapter 451, Transportation Code, that provides public school   transportation services to a school district under Section 34.008,   Education Code, and that uses the diesel fuel only to provide those   services;                (4)  diesel fuel exported by either a licensed supplier   or a licensed exporter from this state to any other state, provided   that 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 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 or shipping documents indicate 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; or                (16)  diesel fuel sold to a nonprofit food bank and   delivered into:                      (A)  the fuel supply tank of a motor vehicle with a   gross vehicle weight rating of at least 25,000 pounds that is owned   by the nonprofit food bank and used to deliver food; or                      (B)  a storage facility from which diesel fuel   will be delivered solely into the fuel supply tanks of motor   vehicles described by Paragraph (A).          SECTION 6.  Section 162.227(a), Tax Code, is amended to read   as follows:          (a)  A license holder may take a credit on a return for the   period in which the sale occurred if the license holder paid tax on   the purchase of diesel fuel and subsequently resells the diesel   fuel without collecting the tax to:                (1)  the United States government for its exclusive   use, provided that a credit is not allowed for gasoline used by a   person operating under a contract with the United States;                (2)  a public school district in this state for the   district's exclusive use;                (3)  an exporter licensed under this subchapter if the   seller is a licensed supplier or distributor and the exporter   subsequently exports the diesel fuel to another state;                (4)  a licensed aviation fuel dealer if the seller is a   licensed distributor; [or]                (5)  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 exclusively to provide those   services; or                (6)  a nonprofit food bank that delivers or will   deliver the diesel fuel into the fuel supply tank of a motor vehicle   with a gross vehicle weight rating of at least 25,000 pounds that is   owned by the nonprofit food bank and used to deliver food.          SECTION 7.  Subchapter C, Chapter 162, Tax Code, is amended   by adding Section 162.2276 to read as follows:          Sec. 162.2276.  REFUND FOR CERTAIN NONPROFIT FOOD BANKS.   (a)  A nonprofit food bank is entitled to and may file a claim with   the comptroller for a refund in the amount provided by this section   of taxes paid under this subchapter for diesel fuel delivered into   the fuel supply tank of a motor vehicle with a gross vehicle weight   rating of at least 25,000 pounds that is owned by the nonprofit food   bank and used to deliver food.          (b)  The amount of the refund under Subsection (a) is equal   to the amount of tax paid under this subchapter for diesel fuel that   qualifies for the refund and is purchased by the nonprofit food   bank.          (c)  A nonprofit food bank that requests a refund under this   section shall maintain all supporting documentation relating to the   refund until the sixth anniversary of the date of the request.          SECTION 8.  Subchapter J, Chapter 502, Transportation Code,   is amended by adding Section 502.458 to read as follows:          Sec. 502.458.  VEHICLES USED BY NONPROFIT FOOD BANKS. (a)     In this section, "nonprofit food bank" has the meaning assigned by   Section 162.001, Tax Code.          (b)  The owner of a motor vehicle described by Section   162.104(a)(10)(A) or 162.204(a)(16)(A), Tax Code, may apply for   registration under Section 502.451 of this code and is exempt from   the payment of the registration fee that would otherwise be   required by this chapter if the vehicle is used by a nonprofit food   bank to deliver food.          (c)  An application for registration under this section must   include:                (1)  a statement by the owner of the vehicle that the   vehicle is used by a nonprofit food bank to deliver food; and                (2)  a statement signed by an officer of the nonprofit   food bank that the vehicle has been used by a nonprofit food bank to   deliver food and qualifies for registration under this section.          SECTION 9.  Chapter 162, Tax Code, as amended by this Act,   does not affect tax liability accruing before the effective date of   this Act.  That liability continues in effect as if this Act had not   been enacted, and the former law is continued in effect for the   collection of taxes due and for civil and criminal enforcement of   the liability for those taxes.          SECTION 10.  Section 502.458, Transportation Code, as added   by this Act, applies only to an application for registration   submitted on or after the effective date of this Act.          SECTION 11.  This Act takes effect September 1, 2023.     * * * * *