H.B. No. 3599

	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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3599 was passed by the House on May 8,
	2023, by the following vote:  Yeas 137, Nays 6, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3599 was passed by the Senate on May
	17, 2023, by the following vote:  Yeas 30, Nays 1.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor