BILL ANALYSIS C.S.H.B. 955 By: BRIMER April 11, 1995 Committee Report (Substituted) BACKGROUND While traveling the highways of the State of Texas, many motorists, both natives of and visitors to Texas have encountered problems while attempting to purchase motor vehicle fuel. These motorists have dispensed the fuel into their vehicle only to find that the price indicated on the pump is different from what they are asked to pay. This is due to the way the motorist has decided to pay. They find out that the cost on the pump is only for cash, and that the price for credit cards is different. PURPOSE To make the price listed on the pump or any sign on the premises the highest price a customer can be required to pay for motor vehicle fuel, regardless of method of payment. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 4, Title 132, of Vernon's Texas Civil Statutes (Revised) by adding Article 8615 which regulates transactions for payment to a retail seller of motor vehicle fuel as follows: Sec. 1. Prohibits a retail seller of motor vehicle fuel from: 1) charging the buyer a higher price than what is on the pump or any other display on the property; or, 2) charging the buyer a surcharge. Sec. 2. Stipulates that a person commits a "Class C" misdemeanor if found guilty of violating this article. Sec. 3. Defines the term "person" as an individual, association, or corporation in the business of selling motor vehicle fuel at retail. SECTION 2. Effective Date: September 1, 1995. SECTION 3. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill required the price for gas to be the same for cash or credit payment and prohibited rebates to customers who pay cash. The substitute deletes the cash rebate prohibition. Also the original bill required the price on the pump to be the only price charged, regardless of payment method. The substitute allows that the price listed on the pump be the HIGHEST price paid; thus allowing rebates for cash customers. The substitute also requires that other advertising on the property be consistent with the price on the fuel pumps. SUMMARY OF COMMITTEE ACTION H.B. 955 was considered by the Energy Resources Committee in a public hearing on February 20, 1995. Tom Smith of Public Citizen testified in favor of the bill. Rob Looney, representing Texas Mid-Continent Oil & Gas testified on the bill. The bill was referred to a subcommittee consisting of Representatives Jackson (Chair), Hawley, and Torres. H.B. 955 was considered by the subcommittee in a formal meeting on March 23, 1995. The subcommittee considered a complete substitute to the bill. The substitute was adopted without objection. The bill was reported favorably as substituted to the full committee by a record vote of 3 ayes, 0 nays, 0 PNV, and 0 absent. H.B. 955 was considered on subcommittee report by the Energy Resources Committee in a public hearing on April 10, 1995. The substitute was adopted by the committee without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 PNV, and 3 absent.