By Horn                                               H.B. No. 2520
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sale of certain motor fuel; providing criminal and
    1-3  civil penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 1, Chapter 1033, Acts of the 71st
    1-6  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
    1-7  Civil Statutes), is amended by adding Subdivision (3) to read as
    1-8  follows:
    1-9              (3)  "Automotive fuel rating" has the meaning assigned
   1-10  by 15 U.S.C.  Section 2821, as amended.
   1-11        SECTION 2.  Section 2, Chapter 1033, Acts of the 71st
   1-12  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
   1-13  Civil Statutes), is amended to read as follows:
   1-14        Sec. 2.  Testing.  In order to determine compliance with the
   1-15  standards and for the enforcement of rules adopted under Sections
   1-16  3, 3A, 3B, 4, and 5 of this Act, the commissioner of agriculture
   1-17  <comptroller of public accounts> or an authorized representative of
   1-18  the commissioner of agriculture <comptroller>, any law enforcement
   1-19  officer at the direction of a prosecuting attorney, or the attorney
   1-20  general may test any motor fuel sold in this state, with or without
   1-21  a complaint about the fuel.
   1-22        SECTION 3.  Chapter 1033, Acts of the 71st Legislature,
   1-23  Regular Session, 1989 (Article 8614, Vernon's Texas Civil
   1-24  Statutes), is amended by adding Sections 3A and 3B to read as
    2-1  follows:
    2-2        Sec. 3A.  SALE OF MOTOR FUEL WITH AUTOMOTIVE FUEL RATING
    2-3  LOWER THAN RATING POSTED ON PUMP LABEL.  A motor fuel dealer in
    2-4  this state may not sell or offer for sale motor fuel from a motor
    2-5  fuel pump if the motor fuel contains an automotive fuel rating that
    2-6  is lower than the automotive fuel rating for that motor fuel posted
    2-7  on the motor fuel pump.
    2-8        Sec. 3B.  DELIVERY OF MOTOR FUEL WITH AUTOMOTIVE FUEL RATING
    2-9  LOWER THAN RATING CERTIFIED BY TRANSFER.  A distributor or supplier
   2-10  of motor fuel, as those persons are defined by Section 153.001, Tax
   2-11  Code, may not deliver or transfer motor fuel to a motor fuel dealer
   2-12  in this state if the fuel contains an automotive fuel rating that
   2-13  is lower than the certification of the automotive fuel rating the
   2-14  distributor or supplier is required to make to the motor fuel
   2-15  dealer under federal law.
   2-16        SECTION 4.  Sections 4(c), (d), and (e), Chapter 1033, Acts
   2-17  of the 71st Legislature, Regular Session, 1989 (Article 8614,
   2-18  Vernon's Texas Civil Statutes), are amended to read as follows:
   2-19        (c)  The commissioner of agriculture <comptroller> by rule
   2-20  may prescribe the form of the statement required by Subsection (a)
   2-21  of this section.
   2-22        (d)  The signs required to be posted by a motor fuel dealer
   2-23  under Section 3 of this Act and delivered to a motor fuel dealer
   2-24  under this section shall be obtained from the commissioner of
   2-25  agriculture <comptroller>.
   2-26        (e)  If the commissioner of agriculture <comptroller>
   2-27  determines that certain types of motor fuel, such as diesel or
    3-1  liquefied petroleum gas, are not sold in this state as mixtures
    3-2  with alcohol in sufficient quantities to warrant regulation of
    3-3  those deliveries under this Act, the commissioner of agriculture
    3-4  <comptroller> may limit the application of Section 3 of this Act
    3-5  and this section to motor fuels sold in sufficient quantity to
    3-6  warrant regulation.
    3-7        SECTION 5.  Section 5, Chapter 1033, Acts of the 71st
    3-8  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
    3-9  Civil Statutes), is amended to read as follows:
   3-10        Sec. 5.  Dealer and delivery documents.  (a)  Each motor fuel
   3-11  dealer in this state shall keep for four years a copy of each
   3-12  manifest, bill of sale, bill of lading, or any other document
   3-13  required to be delivered to the dealer by Section 4 of this Act.
   3-14  During the first 60 days following delivery of a fuel mixture
   3-15  covered by this Act, the dealer shall keep at the station or retail
   3-16  outlet where the motor fuel was delivered a copy of each manifest,
   3-17  bill of sale, bill of lading, or any other document required to be
   3-18  delivered to the dealer by Section 4 of this Act.  Each
   3-19  distributor, supplier, wholesaler, or jobber of motor fuel shall
   3-20  keep for four years at the principal place of business a copy of
   3-21  each manifest, bill of sale, bill of lading, or any other document
   3-22  required to be delivered to the dealer by Section 4 of this Act.
   3-23  The documents are subject to inspection by the commissioner of
   3-24  agriculture <comptroller> or an authorized representative of the
   3-25  commissioner of agriculture <comptroller>, any law enforcement
   3-26  officer, or the attorney general.
   3-27        (b)  The commissioner of agriculture <comptroller> by rule
    4-1  may prescribe the manner of filing documents required to be kept
    4-2  under Subsection (a) of this section, and the time, place, and
    4-3  manner of inspection of the documents.
    4-4        SECTION 6.  Chapter 1033, Acts of the 71st Legislature,
    4-5  Regular Session, 1989 (Article 8614, Vernon's Texas Civil
    4-6  Statutes), is amended by adding Section 5A to read as follows:
    4-7        Sec. 5A.  DOCUMENTS RELATING TO POSTINGS OR CERTIFICATION OF
    4-8  AUTOMOTIVE FUEL RATINGS.  (a)  Each motor fuel dealer in this state
    4-9  shall keep for at least one year a copy of:
   4-10              (1)  each delivery ticket or letter of certification on
   4-11  which the motor fuel dealer based a posting of the automotive fuel
   4-12  rating of motor fuel contained in a motor fuel pump;
   4-13              (2)  records of any automotive fuel rating
   4-14  determination made by the motor fuel dealer under 16 CFR Part 306,
   4-15  as amended; and
   4-16              (3)  each delivery ticket or letter of certification
   4-17  that is required to be delivered to the dealer under 16 CFR Part
   4-18  306.
   4-19        (b)  Each distributor or supplier shall keep for at least one
   4-20  year at the principal place of business a copy of each delivery
   4-21  ticket or letter of certification required to be delivered by the
   4-22  distributor or supplier to a motor fuel dealer in this state under
   4-23  16 CFR Part 306, as amended.
   4-24        (c)  A document required to be kept under this section is
   4-25  subject to inspection by the commissioner of agriculture or an
   4-26  authorized representative of the commissioner of agriculture, any
   4-27  law enforcement officer, or the attorney general.
    5-1        SECTION 7.  Section 6, Chapter 1033, Acts of the 71st
    5-2  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
    5-3  Civil Statutes), is amended to read as follows:
    5-4        Sec. 6.  Civil action.  (a)  If a motor fuel dealer or a
    5-5  distributor, supplier, wholesaler, or jobber of motor fuel violates
    5-6  Section 3, 3A, 3B, 4, or 5 of this Act, any motor fuel user who has
    5-7  purchased the fuel and who has suffered damages or has a complaint
    5-8  about the product may maintain a civil action against the motor
    5-9  fuel dealer or the distributor, supplier, wholesaler, or jobber of
   5-10  motor fuel.  The action may be brought, without regard to any
   5-11  specific amount in damages, in the district court in any county in
   5-12  which the motor fuel dealer, distributor, supplier, wholesaler, or
   5-13  jobber is doing business or in which the motor fuel user resides.
   5-14        (b)  In any action under this section, the court shall award
   5-15  to the motor fuel user who prevails the amount of actual damages
   5-16  and grant such equitable relief as the court determines is
   5-17  necessary to remedy the effects of the motor fuel dealer's
   5-18  violation or the distributor, supplier, wholesaler, or jobber's
   5-19  violation of the provisions of Section 3, 3A, 3B, 4, or 5 of this
   5-20  Act, including declaratory judgment, permanent injunctive relief,
   5-21  and temporary injunctive relief.  In addition, the court shall
   5-22  award to the motor fuel user who prevails in an action brought
   5-23  hereunder court costs and attorney's fees that are reasonable in
   5-24  relation to the amount of work expended.
   5-25        (c)  In addition to the remedies provided in Subsection (b)
   5-26  of this section, if the trier of fact finds that the violation  of
   5-27  Section 3, 4, or 5 of this Act was committed wilfully or knowingly
    6-1  by the defendant, the trier of fact shall award not more than three
    6-2  times the amount of actual damages.
    6-3        (d)  A violation of Section 3, 3A, 3B, 4, or 5 of this Act is
    6-4  also a deceptive trade practice under Subchapter E, Chapter 17,
    6-5  Business & Commerce Code.
    6-6        (e)  Any action alleging a violation of Section 3, 3A, 3B, 4,
    6-7  or 5 of this Act shall be commenced and prosecuted within two years
    6-8  after the date the cause of action accrued.
    6-9        SECTION 8.  Section 7, Chapter 1033, Acts of the 71st
   6-10  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
   6-11  Civil Statutes), is amended to read as follows:
   6-12        Sec. 7.  Civil penalty.  A motor fuel dealer or a
   6-13  distributor, supplier, wholesaler, or jobber of motor fuel who
   6-14  violates a provision of Section 3, 3A, 3B, 4, or 5 of this Act
   6-15  forfeits to the state a civil penalty of not less than $200 <$25>
   6-16  nor more than $10,000 <$200>.
   6-17        SECTION 9.  Sections 8(a), (b), and (e), Chapter 1033, Acts
   6-18  of the 71st Legislature, Regular Session, 1989 (Article 8614,
   6-19  Vernon's Texas Civil Statutes), are amended to read as follows:
   6-20        (a)  A person commits an offense if the person intentionally
   6-21  or knowingly violates Section 3, 3A, 3B, 4, or 5 of this Act or any
   6-22  rule of the commissioner of agriculture <comptroller> prescribed to
   6-23  enforce or implement those sections of this Act.
   6-24        (b)  A person commits an offense if the person intentionally
   6-25  or knowingly:
   6-26              (1)  refuses to permit a person authorized by Section 2
   6-27  of this Act to test any motor fuel sold or held for sale in this
    7-1  state;
    7-2              (2)  refuses to permit inspection of any document
    7-3  required to be kept or delivered by this Act upon request of a
    7-4  person authorized to inspect such documents by Section 5 or 5A of
    7-5  this Act; or
    7-6              (3)  mutilates, destroys, secretes, forges, or
    7-7  falsifies any document, record, report, or sign required to be
    7-8  delivered, kept, filed, or posted by this Act or any rule
    7-9  prescribed by the comptroller for the enforcement of this Act.
   7-10        (e)  A user, the commissioner of agriculture <comptroller> or
   7-11  the <comptroller's> authorized representative of the commissioner
   7-12  of agriculture, any law enforcement officer, or the attorney
   7-13  general may file a complaint under this section.
   7-14        SECTION 10.  Sections 9(a) and (f), Chapter 1033, Acts of the
   7-15  71st Legislature, Regular Session, 1989 (Article 8614, Vernon's
   7-16  Texas Civil Statutes), are amended to read as follows:
   7-17        (a)  The commissioner of agriculture <comptroller> may adopt
   7-18  rules not inconsistent with this Act for the regulation of the sale
   7-19  of motor fuels containing ethanol and methanol.
   7-20        (f)  The fees collected under this section may be used only:
   7-21              (1)  by the comptroller to defray the cost of
   7-22  collecting the fees and penalties imposed by this Act and not to
   7-23  exceed $25,000 annually; or
   7-24              (2)  by the commissioner of agriculture for the
   7-25  administration and enforcement of this Act <by the comptroller and
   7-26  shall be deposited in the Comptroller's Operating Fund 062>.
   7-27        SECTION 11.  Section 10, Chapter 1033, Acts of the 71st
    8-1  Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
    8-2  Civil Statutes), is amended to read as follows:
    8-3        Sec. 10.  CONTRACTING FOR ENFORCEMENT.  The commissioner of
    8-4  agriculture <comptroller> may contract for the enforcement of this
    8-5  Act after due notice.
    8-6        SECTION 12.  Chapter 1033, Acts of the 71st Legislature,
    8-7  Regular Session, 1989 (Article 8614, Vernon's Texas Civil
    8-8  Statutes), is amended by adding Section 11 to read as follows:
    8-9        Sec. 11.  DELIVERY OF DOCUMENTS TO FEDERAL GOVERNMENT.  The
   8-10  commissioner of agriculture, an authorized representative of the
   8-11  commissioner of agriculture, or the attorney general may make a
   8-12  copy of any manifest, bill of sale, bill of lading, delivery
   8-13  ticket, letter of certification, or other document the commissioner
   8-14  or attorney general is entitled to inspect under this Act.  The
   8-15  commissioner of agriculture, an authorized representative of the
   8-16  commissioner of agriculture, or the attorney general may deliver
   8-17  the copy of a document described by this section to the federal
   8-18  government for purposes of prosecuting persons for violations of
   8-19  federal law relating to the sale or transfer of motor fuel.
   8-20        SECTION 13.  The changes in law made by this Act relating to
   8-21  a penalty that may be imposed apply only to a violation that occurs
   8-22  on or after the effective date of this Act.  A violation occurs on
   8-23  or after the effective date of this Act if each element of the
   8-24  violation occurs on or after that date.  A violation that occurs
   8-25  before the effective date of this Act is covered by the law in
   8-26  effect when the violation occurred, and the former law is continued
   8-27  in effect for that purpose.
    9-1        SECTION 14.  All rules adopted by the comptroller
    9-2  specifically for the administration of Chapter 1033, Acts of the
    9-3  71st Legislature, Regular Session, 1989 (Article 8614, Vernon's
    9-4  Texas Civil Statutes), in effect on the effective date of this Act
    9-5  remain in effect until amended or repealed by the commissioner of
    9-6  agriculture under authority granted to the commissioner of
    9-7  agriculture by a change in law made by this Act or other law.
    9-8        SECTION 15.  This Act takes effect September 1, 1995, and
    9-9  applies only to deliveries, transfers, or sales, as applicable, of
   9-10  motor fuel that occur on or after that date.
   9-11        SECTION 16.  The importance of this legislation and the
   9-12  crowded condition of the calendars in both houses create an
   9-13  emergency and an imperative public necessity that the
   9-14  constitutional rule requiring bills to be read on three several
   9-15  days in each house be suspended, and this rule is hereby suspended.