SRC-TNM C.S.S.B. 665 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 665
By: Haywood
State Affairs
3-24-97
Committee Report (Substituted)


DIGEST 

Currently, the Federal Trade Commission (FTC) has the authority to test
fuel for octane content and bring enforcement actions against those
retailers selling sub-octane fuel.  However, because of budgetary
concerns, the FTC rarely tests fuel and instead limits enforcement to the
investigation of complaints. S.B. 665 would allow the Texas Department of
Agriculture to test motor fuel for octane content when it tests fuel
dispensers for accurate calibration. 

PURPOSE

As proposed, C.S.S.B. 665 outlines provisions and provides criminal,
administrative and civil penalties regarding the sale and delivery of
certain motor fuel. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of agriculture under
SECTIONS 2, 4, 5, and 10 (Sections 2, 4(c), 5(b), and 9(a), Article 8614,
V.T.C.S.), of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1,  Article 8614, V.T.C.S., to define
"automotive fuel rating."  Makes conforming changes. 

SECTION 2. Amends Section 2, Article 8614, V.T.C.S., to authorize the
commissioner of agriculture (commissioner), rather than the comptroller of
public accounts (comptroller), or an authorized representative of the
commissioner, rather than the comptroller, any law enforcement officer at
the direction of a prosecuting attorney, or the attorney general, to test
any motor fuel sold in this state in order to determine compliance with
the standards and for the enforcement of rules adopted under Sections 3,
3A, 3B, 4, and 5 of this Act.  Provides that nothing under this section
shall prohibit the commissioner from adopting rules relating to the
frequency of testing motor fuels. Requires the commissioner to consider
the nature of the violation, history of past violations, and funds
available as provided by Section 9(e) of this Act in adopting such rules. 

SECTION 3. Amends Article 8614, V.T.C.S., by adding Sections 3A and 3B, as
follows: 

Sec. 3A. SALE OF MOTOR FUEL WITH AUTOMOTIVE FUEL RATING LOWER THAN RATING
POSTED ON PUMP LABEL. Prohibits a motor fuel dealer in this state from
selling or offering for sale motor fuel from a motor fuel pump if the
motor fuel contains an automotive fuel rating that is lower than the
automotive fuel rating for that motor fuel posted on the motor fuel pump. 

Sec. 3B. DELIVERY OF MOTOR FUEL WITH AUTOMOTIVE FUEL RATING LOWER THAN
RATING CERTIFIED BY TRANSFER. Prohibits a distributor or supplier of motor
fuel, as those persons are defined by Section 153.001, Tax Code, from
delivering or transferring motor fuel to a motor fuel dealer in this state
if the fuel contains an automotive fuel rating the distributor or supplier
is required to make to the motor fuel dealer under federal law. 

SECTION 4. Amends Sections 4(c)-(e), Article 8614, V.T.C.S., to make
conforming changes. 
 
SECTION 5. Amends Section 5, Article 8614, V.T.C.S., to require each motor
dealer in this state to keep for one year, rather than four years, a copy
of certain documents.  Makes conforming changes. 

SECTION 6. Amends Article 8614, V.T.C.S., by adding Section 5A, as follows:

Sec. 5A. DOCUMENTS RELATING TO POSTINGS OR CERTIFICATION OF AUTOMOTIVE
FUEL RATINGS. Requires each motor fuel dealer in this state to keep a copy
of certain records for at least one year.  Requires each distributor or
supplier to keep, for at least one year at the principal place of
business, a copy of each delivery ticket or letter of certification
required to be delivered by the distributor or supplier to a motor fuel
dealer in this state under 16 C.F.R. Part 306.  Provides that a document
required to be kept under this section is subject to inspection by the
commissioner or an authorized representative of the commissioner. 

SECTION 7. Amends Section 6, Article 8614, V.T.C.S., to authorize any
motor fuel user who has purchased fuel and who has suffered damages or has
a complaint about the product obtained from a motor fuel dealer or a
distributer, supplier, wholesaler, or jobber of motor fuel in violation of
Section 3, 3A, 3B, 4, 5, or 5A to maintain a civil action against the
individual in violation.  Requires the trier of fact to award not more
than three times the amount of actual damages if the trier of fact finds
that a violation of Section 3, 4, or 5 of this Act was committed wilfully
or knowingly by the defendant.  Makes conforming changes. 

SECTION 8. Amends Section 7, Article 8614, V.T.C.S., to set forth
penalties for a violation of a provision of Section 3, 3A, 3B, 4, 5, or 5A
of this Act. 

SECTION 9. Amends Sections 8(a), (b), and (e), Article 8614, V.T.C.S., to
set forth instances in which a person commits an offense.  Authorizes the
commissioner, rather than the comptroller, or the authorized
representative of the commissioner, rather than the comptroller's
representative, to request the appropriate prosecuting attorney to
prosecute a violation of a provision of this Act, rather than authorizing
any law enforcement officer, or the attorney general to file a complaint
under this section.  Makes conforming changes. 

SECTION 10. Amends Sections 9(a)-(c), (e), and (f), Article 8614,
V.T.C.S., to authorize the comptroller, by rule, to impose fees for the
performance of services provided as determined necessary by the
commissioner in the administration of this Act.  Outlines provisions
regarding the fees collected under this section.  Deletes text authorizing
the fees collected under this section to be used only for the
administration and enforcement of this Act by the comptroller and
requiring the fees to be deposited in the Comptroller's Operating Fund
062.  Makes conforming changes. 

SECTION 11. Amends Section 10, Article 8614, V.T.C.S., to make conforming
changes. 

SECTION 12. Amends Article 8614, V.T.C.S., by adding Section 11, as
follows: 

Sec. 11. DELIVERY OF DOCUMENTS TO FEDERAL GOVERNMENT. Outlines provisions
regarding the duplication and delivery of certain documents to the federal
government. 

SECTION 13. Amends Section 12.020(c), Agriculture Code, to provide that
provisions of this code are subject to this section and to set forth
applicable penalty amounts.  

SECTION 14. Makes application of this Act prospective.

SECTION 15. Makes application of this Act prospective. 

SECTION 16. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 17. Emergency clause.
 
SUMMARY OF COMMITTEE CHANGES

Amends the proposed relating clause.

Amends SECTION 2, Section 2, Article 8614, V.T.C.S., regarding motor fuel
testing and rulemaking authority. 

Amends SECTION 5, Section 5, Article 8614, V.T.C.S., regarding the
archiving of dealer and delivery documents. 

Amends SECTION 6, Section 5A(c), Article 8614, V.T.C.S., to add text
regarding documents relating to postings or certification of automotive
fuel ratings. 

Amends SECTION 7, Section 6(a), (b), (d), and (e), Article 8614, V.T.C.S.,
regarding civil actions as a result of violations of certain sections. 

Amends SECTION 8, Section 7, Article 8614, V.T.C.S., regarding a civil
penalty as a result of violations of certain sections. 

Amends SECTION 9, Section 8, Article 8614, V.T.C.S., regarding violations
of certain sections or rules. 

Amends SECTION 13, Section 12.020(c), Agriculture Code, regarding penalty
amounts for violations of certain provisions.