By: Canales H.B. No. 3418       A BILL TO BE ENTITLED   AN ACT   relating to the implementation by the Texas Department of   Transportation of a vehicle mileage user fee pilot program and a   task force to assist in developing and evaluating the program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 502, Transportation Code, is amended by   adding Subchapter M to read as follows:   SUBCHAPTER M. VEHICLE MILEAGE USER FEE PILOT PROGRAM          Sec. 502.501.  LEGISLATIVE PURPOSE. (a)  The purpose of this   subchapter is to assess the feasibility of eliminating the state   gasoline and diesel tax, also known as the motor fuel taxes, and   other user fees for transportation.          Sec. 502.502.  DEFINITIONS. In this subchapter:                (1)  "Motor fuel taxes" means the motor fuel taxes   imposed under Chapter 162, Tax Code.                (2)  "Pilot program" means the vehicle mileage user fee   pilot program.                (3)  "Task force" means the vehicle mileage user fee   task force.          Sec. 502.503.  TASK FORCE. (a)  The vehicle mileage user fee   task force is established to guide the development and evaluation   of the vehicle mileage user fee pilot program to assess the   potential for mileage-based revenue as an alternative to the   current system of taxing highway use through motor fuel taxes.          (b)  The task force shall consist of seven members appointed   as follows:                (1)  one member appointed by the lieutenant governor;                (2)  one member appointed by the speaker of the house of   representatives;                (3)  one member appointed by the chair of the standing   committee of the house of representatives having primary   jurisdiction over transportation;                (4)  one member appointed by the chair of the standing   committee of the senate having primary jurisdiction over   transportation; and                (5)  three members appointed by the governor.          (c)  The task force shall:                (1)  conduct at least three public hearings gather   public comment on issues and concerns related to the pilot program;                (2)  make recommendations to the department on the   design and on the criteria to be used to evaluate the pilot program   and other alternative approaches to motor fuel taxes; and                (3)  evaluate the pilot program.          (d)  In conducting hearings under Subsection (c)(1), the   task force shall:                (1)  publish notice in accordance with Government Code   551, referred to as "The Open Meetings Act"; and                (2)  publish notice on the department's website; and                (3)  provide interested persons with an opportunity to   submit their opinions orally and in writing.          (e)  The department may create and maintain a website to   allow members of the public to submit comments electronically.          (f)  On request, the department shall assist the task force   in implementing this subchapter.          Sec. 502.504.  PILOT PROGRAM.  (a) The department, in   consultation with the Texas Department of Motor Vehicles and the   Texas A&M Transportation Institute, shall develop and implement a   statewide pilot program to assess a user fee on owners of commercial   motor vehicles that is based on the number of miles traveled on   public highways in this state by those vehicles.          (b)  The pilot program must:                (1)  include not more than 300 commercial motor   vehicles, the operators of which will have on-board   vehicle-mileage-counting equipment added to their vehicles,   administered in a manner the department considers appropriate;                (2)  test the reliability, ease of use, cost, and   public acceptance of technology and methods for:                      (A)  counting the number of miles traveled by   motor vehicles;                      (B)  reporting the number of miles traveled by   particular vehicles; and                      (C)  collecting payments from participants in the   pilot program; and                (3)  analyze and evaluate the ability of different   technologies and methods to:                      (A)  protect the integrity of data collected and   reported;                      (B)  ensure operators' privacy; and                      (C)  vary pricing based on the time of driving,   type of public highway, proximity to transit, vehicle fuel   efficiency, participation in car-sharing or pooling, or the income   of the operator.          (c)  The pilot program may not last less than one year.          Sec. 502.505.  COMPENSATION OF PARTICIPANTS. The department   by rule shall establish a process to ensure that participants in the   pilot program are not required to spend more on fees or taxes   associated with road usage than if they had not participated in the   program.  A process adopted under this section may include a refund   of motor fuel taxes paid by the participant or other compensation.          Sec. 502.506.  CONFIDENTIALITY OF INFORMATION. Identifying   information about participants in the pilot program is confidential   and is not subject to disclosure under Chapter 552, Government   Code.          Sec. 502.507.  REPORT. Not later than September 1, 2026, the   department shall submit to the legislature a report summarizing the   results of the pilot program, including:                (1)  the feasibility of permanently assessing a vehicle   mileage user fee;                (2)  an evaluation of the impacts of a vehicle mileage   user fee on the economy, the environment, and traffic congestion;                (3)  a comparison to other alternative approaches or   supplements to motor fuel taxes; and                (4)  the department's recommendations together with   suggested legislation necessary to implement the recommendations.          Sec. 502.508.  APPLICATION FOR FEDERAL FUNDING. The   department shall submit an application to the United States   Department of Transportation for funding in federal fiscal year   2023 for the Surface Transportation System Funding Alternatives   Program established in the Fixing America's Surface Transportation   Act (Pub. L. No. 114-94) to help fund the pilot program.  If the   application is not successful, the department shall apply in each   federal fiscal year in which grants are made available for   demonstration projects under this federal program or until the   application results in full or partial funding for a vehicle   mileage user fee pilot program, whichever first occurs.          Sec. 502.509.  EXPIRATION OF SUBCHAPTER.  This subchapter   expires November 1, 2026.          SECTION 2.  This Act takes effect September 1, 2023.