By Oliveira                                           H.B. No. 3659
         76R4652 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sales and use tax on gasoline, diesel fuel, and
 1-3     liquefied gas; providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
 1-6     adding Chapter 161 to read as follows:
 1-7                       CHAPTER 161.  MOTOR FUEL TAXES
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 161.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Aviation fuel dealer" means a person who:
1-11                       (A)  is the operator of an aircraft servicing
1-12     facility;
1-13                       (B)  delivers gasoline or diesel fuel exclusively
1-14     into the fuel supply tanks of aircraft or into equipment used
1-15     solely for servicing aircraft and used exclusively off-highway; and
1-16                       (C)  does not use, sell, or distribute gasoline
1-17     or diesel fuel on which a fuel tax is required to be collected or
1-18     paid to this state.
1-19                 (2)  "Blended fuel" means the resultant accountable
1-20     product produced by the blending process, other than a de minimis
1-21     amount of a product such as carburetor detergent or oxidation
1-22     inhibitor, that can be used as a fuel in a motor vehicle.
1-23                 (3)  "Blending" means the mixing together by any
1-24     process of any one or more products with other products regardless
 2-1     of the original character of the products blended if the resulting
 2-2     product  obtained is suitable or practicable for use or is used as
 2-3     a motor fuel.  The term does not include the blending that may
 2-4     occur in the process known as refining by the original refiner of
 2-5     crude petroleum or the commingling of products during
 2-6     transportation in a pipeline.
 2-7                 (4)  "Bulk end user" means a person who receives
 2-8     delivery of motor fuel into the person's own storage facilities
 2-9     exclusively for the person's own consumption.
2-10                 (5)  "Bulk plant" means a reportable motor fuel storage
2-11     and distribution facility that is supplied by other than a pipeline
2-12     or vessel and from which reportable motor fuel may be removed at a
2-13     rack.
2-14                 (6)  "Bulk transfer" means a transfer of motor fuel
2-15     from one location to another by pipeline or vessel within a bulk
2-16     transfer or terminal transfer system.
2-17                 (7)  "Bulk transfer system" means the motor fuel
2-18     distribution system that consists of refineries, pipelines,
2-19     vessels, and terminals.  For purposes of this chapter, petroleum in
2-20     a refinery, pipeline, vessel, or terminal is in the bulk transfer
2-21     system.  Taxable motor fuel in the fuel supply tank of an engine,
2-22     or in a tank car, rail car, trailer, truck, or other equipment
2-23     suitable for ground transportation, is not in the bulk transfer
2-24     system.
2-25                 (8)  "Dealer" means a person who is the operator of a
2-26     service station or other retail outlet and who delivers motor fuel
2-27     into the fuel supply tanks of motor vehicles or motorboats.
 3-1                 (9)  "Destination state" means any state, territory,
 3-2     foreign country, or sovereign nation to which any reportable motor
 3-3     fuel is directed for delivery into a storage facility, receptacle,
 3-4     container, or type of transportation equipment for the purpose of
 3-5     resale or use.
 3-6                 (10)  "Diesel fuel" means any liquid that is commonly
 3-7     known, offered for sale, or used as a fuel in diesel engines,
 3-8     including any blended fuel used for the propulsion of
 3-9     diesel-powered motor vehicles.  The term includes products commonly
3-10     referred to as kerosene, light cycle oil, number two fuel oil,
3-11     distillate fuel, cutter stock, or heating oil.  It does not include
3-12     aviation diesel if the buyer is registered to purchase aviation
3-13     diesel free of tax and the seller obtains certification of that
3-14     fact before making the sale.
3-15                 (11)  "Diversion number" means the tracking and
3-16     registration number assigned by the comptroller to a single
3-17     transport truck delivery of motor fuel diverted from its original
3-18     destination.
3-19                 (12)  "Dyed diesel fuel" means diesel fuel that is
3-20     required to be dyed under regulations of the United States
3-21     Environmental Protection Agency and Internal Revenue Service  or
3-22     under any other requirements prescribed by the agency or service,
3-23     including any invisible marker requirements.
3-24                 (13)  "Eligible purchaser" means a person who has been
3-25     authorized by the comptroller to make an election to defer payment
3-26     of taxes to a supplier or bonded importer.
3-27                 (14)  "End user" means a person who uses taxable motor
 4-1     fuel.
 4-2                 (15)  "Export" means to obtain motor fuel in this state
 4-3     for sale or other distribution in another state.  For purposes of
 4-4     this definition, motor fuel delivered out of state:
 4-5                       (A)  by or for the seller constitutes an export
 4-6     by the seller; and
 4-7                       (B)  by or for the purchaser constitutes an
 4-8     export by the purchaser.
 4-9                 (16)  "Exporter" means a person who engages in the
4-10     practice of exporting motor fuels.
4-11                 (17)  "Fractionator" means a small distillation unit
4-12     that separates hydrocarbons based on their boiling points that is
4-13     used to separate transmix into gasoline and diesel fuels.
4-14                 (18)  "Fuel transportation vehicle" means a vehicle
4-15     that is designed for public highway use to transport taxable motor
4-16     fuels and that is used for that purpose.  The term includes
4-17     transport trucks and tank wagons.
4-18                 (19)  "Gasohol" means blended fuel composed of gasoline
4-19     and fuel alcohol.
4-20                 (20)  "Gasoline" means all products commonly or
4-21     commercially known or sold as gasoline, including any liquid or
4-22     blended fuel offered for sale, sold, or used as the fuel for a
4-23     gasoline-powered engine.  The term does not include aviation
4-24     gasoline if the buyer is registered to purchase aviation gasoline
4-25     free of tax and the seller obtains certification of that fact
4-26     before making the sale.
4-27                 (21)  "Gross gallons" means the total product measured
 5-1     in United States gallons without temperature or barometric pressure
 5-2     adjustments.
 5-3                 (22)  "Heating oil" means any distillate fuel oil sold
 5-4     and used for heating or industrial processing purposes.
 5-5                 (23)  "Import" means to bring motor fuel into this
 5-6     state for sale, use, or storage by any means of conveyance other
 5-7     than the fuel supply tank of a motor vehicle.  For purposes of this
 5-8     definition, motor fuel delivered into this state from outside this
 5-9     state:
5-10                       (A)  by or for the seller constitutes an import
5-11     by the seller; or
5-12                       (B)  by or for the purchaser constitutes an
5-13     import by the purchaser.
5-14                 (24)  "Import verification number" means the tracking
5-15     and registration number assigned by the comptroller with respect to
5-16     a single transport truck delivery into this state.
5-17                 (25)  "Importer" means any person engaged in the
5-18     practice of importing motor fuel.
5-19                 (26)  "Interstate trucker" means a person who, for
5-20     commercial purposes, operates in this state, another state, or
5-21     another country a motor vehicle that:
5-22                       (A)  has two axles and a registered gross weight
5-23     of more than 26,000 pounds;
5-24                       (B)  has three or more axles; or
5-25                       (C)  is used in combination and the registered
5-26     gross weight of the combination is more than 26,000 pounds.
5-27                 (27)  "Invoiced gallons" means the gallons actually
 6-1     billed on an invoice in payment to a supplier.
 6-2                 (28)  "Kerosene" means the petroleum fraction
 6-3     containing hydrocarbons that are slightly heavier than those found
 6-4     in gasoline and naphtha and that has  a boiling point range of
 6-5     approximately 180 to 300 degrees Celsius.
 6-6                 (29)  "Lessor" means a person:
 6-7                       (A)  whose principal business is the leasing or
 6-8     renting of motor vehicles for compensation to the general public;
 6-9                       (B)  who maintains established places of
6-10     business; and
6-11                       (C)  whose lease or rental contracts require the
6-12     motor vehicles to be returned to the established places of business
6-13     at the termination of the lease.
6-14                 (30)  "Liquefied gas" means any motor fuel other than
6-15     gasoline, gasohol, diesel fuel, dyed diesel fuel, kerosene, or dyed
6-16     kerosene.  The term includes all forms of fuel commonly or
6-17     commercially known or sold as butane, propane, liquefied petroleum
6-18     gas, compressed natural gas product, or a combination of liquefied
6-19     petroleum gas and a compressed natural gas product used in an
6-20     internal combustion engine or motor to propel any form of vehicle,
6-21     machine, or mechanical contrivance.
6-22                 (31)  "Liquefied gas tax decal user" means a person who
6-23     owns or operates on the public highways of this state a motor
6-24     vehicle:
6-25                       (A)  equipped with a liquefied gas carburetion
6-26     system;
6-27                       (B)  required to be registered by the Texas
 7-1     Department of Transportation; and
 7-2                       (C)  required to have a Texas certificate of
 7-3     inspection.
 7-4                 (32)  "Motor fuel" includes gasoline, gasohol, diesel
 7-5     fuel, blended fuel, liquefied gas, and other products that are
 7-6     usable as propellants of a motor vehicle.
 7-7                 (33)  "Motor fuel transporter" means a person who
 7-8     transports motor fuel outside the terminal transfer system by
 7-9     transport truck, railroad tank car, or marine vessel.
7-10                 (34)  "Motor vehicle" means a vehicle that is propelled
7-11     by an internal combustion engine or motor, licensed for public
7-12     highway use,  or designed for mobile use on public highways.  The
7-13     term does not include:
7-14                       (A)  farm machinery, including machinery designed
7-15     for off-road use but capable of movement on roads at low speeds;
7-16                       (B)  a vehicle operated on rails; or
7-17                       (C)  machinery designed principally for off-road
7-18     use.
7-19                 (35)  "Motorboat" means a vessel propelled by
7-20     machinery, whether or not the machinery is the principal source of
7-21     propulsion.
7-22                 (36)  "Net gallons" means the remaining product after
7-23     all considerations and deductions have been made, as  measured in
7-24     United States gallons, corrected to a temperature of 60 degrees
7-25     Fahrenheit (13 degrees Celsius) and a pressure of 14-7/10 pounds a
7-26     square inch.
7-27                 (37)  "Permissive supplier" means a supplier who:
 8-1                       (A)  is from outside this state;
 8-2                       (B)  is an Internal Revenue Service qualified
 8-3     supplier required by the Internal Revenue Service to register;
 8-4                       (C)  is not an importer or exporter;
 8-5                       (D)  elects to collect and remit motor fuel tax
 8-6     to the destination state; and
 8-7                       (E)  is not required to have a supplier's license
 8-8     in this state.
 8-9                 (38)  "Pipeline" means a fuel distribution system that
8-10     moves products in bulk through a pipe, either from a refinery to a
8-11     terminal or from a terminal to another terminal.
8-12                 (39)  "Point of delivery"  means the specific address
8-13     of delivery, including the customer's name, street, city, state,
8-14     and zip code, to which reportable motor fuel is dispensed into any
8-15     storage facility, receptacle, or container or any type of
8-16     transportation equipment.
8-17                 (40)  "Position holder" means the person who holds the
8-18     inventory position in motor fuel in a terminal, as reflected on the
8-19     records of the terminal operator.  A person holds the inventory
8-20     position in motor fuel if that person has a contract with the
8-21     terminal operator for the use of storage facilities and terminaling
8-22     services for fuel at the terminal.  The term includes a terminal
8-23     operator who owns fuel in the terminal.
8-24                 (41)  "Public highway" means a way or place of whatever
8-25     nature open to the use of the public for the purpose of vehicular
8-26     travel, even if the way or place is temporarily closed for the
8-27     purpose of construction, maintenance, or repair.
 9-1                 (42)  "Qualified terminal" means a qualified terminal
 9-2     as defined under the regulations and practices prescribed by the
 9-3     Internal Revenue Code of 1986, as amended, that has been assigned a
 9-4     terminal control number by the Internal Revenue Service.
 9-5                 (43)  "Rack" means a mechanism used to dispense motor
 9-6     fuel from a refinery, terminal, or bulk plant into a transport
 9-7     truck, a railroad tank car, or another means of transport for bulk
 9-8     transfer outside of the bulk transfer or terminal transfer system.
 9-9                 (44)  "Refiner" means a person who owns, operates, or
9-10     otherwise controls a refinery.
9-11                 (45)  "Refinery" means a facility used to process crude
9-12     oil, unfinished oils, natural gas liquids, or other hydrocarbons
9-13     into any motor fuel and from which taxable motor fuel may be
9-14     removed by pipeline, by vessel, or at a rack.
9-15                 (46)  "Removal" means a physical transfer of motor fuel
9-16     from the custody of customs or from a terminal, manufacturing
9-17     plant, pipeline, marine vessel, including a barge or tanker,
9-18     refinery, or any receptacle that stores taxable motor fuel.
9-19                 (47)  "Sale" means a transfer of title, exchange, or
9-20     barter of motor fuel, but does not include a transfer of possession
9-21     of motor fuel on consignment.
9-22                 (48)  "Supplier" means a person, other than a terminal
9-23     operator who only handles taxable motor fuel consigned to the
9-24     operator within the terminal, who:
9-25                       (A)  is required to collect and remit tax on
9-26     motor fuel removed from a terminal loading rack;
9-27                       (B)  is required to register and is registered
 10-1    under Section 4101, Internal Revenue Code of 1986, as amended, to
 10-2    engage in transactions in taxable motor fuels in the bulk transfer
 10-3    and terminal distribution system; and
 10-4                      (C)  is:
 10-5                            (i)  the position holder in a terminal or
 10-6    refinery in this state;
 10-7                            (ii)  the importer of taxable motor fuel
 10-8    into this state from a foreign country;
 10-9                            (iii)  the acquirer of taxable motor fuel
10-10    from a terminal or refinery in this state from a position holder
10-11    under a two-party exchange; or
10-12                            (iv)  the position holder in a terminal or
10-13    refinery outside this state with respect to taxable motor fuel that
10-14    the person imports into this state on the person's account.
10-15                (49)  "Tank wagon" means a straight truck having
10-16    multiple compartments designed or used to carry liquid motor fuel.
10-17                (50)  "Taxable motor fuel" means gasoline, diesel fuel,
10-18    kerosene, blended fuel, and liquefied gas.
10-19                (51)  "Terminal" means a motor fuel storage and
10-20    distribution facility that is supplied by a pipeline or vessel,
10-21    from which reportable motor fuel may be removed at a rack, and that
10-22    is required to be registered and has been registered as a qualified
10-23    terminal by the Internal Revenue Service.  The term also includes
10-24    bulk plants that store reportable motor fuel for other persons.
10-25                (52)  "Terminal bulk transfers" include:
10-26                      (A)  movement of fuel by a marine barge from a
10-27    refinery or terminal to a terminal;
 11-1                      (B)  movement of fuel by a pipeline from a
 11-2    refinery or terminal to a terminal;
 11-3                      (C)  book transfers of products within a terminal
 11-4    between suppliers before completion of removal across the rack; and
 11-5                      (D)  two-party exchanges between licensed
 11-6    suppliers.
 11-7                (53)  "Terminal operator"  means a person who owns,
 11-8    operates, or otherwise controls a terminal.
 11-9                (54)  "Terminal transfer system" means the motor fuel
11-10    distribution system consisting of refineries, pipelines, marine
11-11    vessels, and terminals.  For purposes of this chapter, petroleum in
11-12    a refinery, pipeline, vessel, or terminal is in the terminal
11-13    transfer system.  Taxable motor fuel in the fuel supply tank of an
11-14    engine or in a tank car, rail car, trailer, truck, or other
11-15    equipment suitable for ground transportation is not in the terminal
11-16    transfer system.
11-17                (55)  "Transit company" means a business that:
11-18                      (A)  transports in a political subdivision
11-19    persons in carriers designed for 12 or more passengers;
11-20                      (B)  holds a franchise from a political
11-21    subdivision; and
11-22                      (C)  has its rates regulated by the political
11-23    subdivision or is owned or operated by the political subdivision.
11-24                (56)  "Transmix" means a motor fuel that results from
11-25    the natural mixing of products at both the beginning and the end of
11-26    each batch of motor fuel shipped in a pipeline.
11-27                (57)  "Transport truck" means a semitrailer combination
 12-1    rig designed or used to transport loads of motor fuel over a public
 12-2    highway.
 12-3                (58)  "Transporter" means  a person who operates  a
 12-4    pipeline, barge, railroad car, or transport truck engaged in the
 12-5    business of transporting taxable motor fuels.
 12-6                (59)  "Two-party exchange" means a transaction in which
 12-7    motor fuel is transferred from one licensed supplier to another
 12-8    licensed supplier under an exchange agreement in which a supplier
 12-9    agrees to deliver motor fuel to the other supplier or the other
12-10    supplier's customer at the rack of the terminal at which the
12-11    delivering supplier is the position holder.
12-12                (60)  "Vehicle supply tank" means a receptacle on a
12-13    motor vehicle from which fuel is supplied for the propulsion of the
12-14    motor vehicle.
12-15                (61)  "Vendor" means a person who sells fuel, including
12-16    a refiner, supplier, permissive supplier, importer, exporter,
12-17    transporter, interstate carrier, bulk dealer, dealer, wholesaler,
12-18    aviation fuel dealer, liquefied fuel dealer, tank wagon, and bulk
12-19    plant.
12-20                (62)  "Wholesaler" means a person who acquires motor
12-21    fuel from a supplier or another wholesaler for subsequent sale and
12-22    distribution at wholesale by tank car or motor vehicle, or both.
12-23          Sec. 161.002.  AUDITS AND INSPECTIONS.  (a)  For the purpose
12-24    of determining the amount of tax collected and payable to this
12-25    state, the amount of tax accruing and due, and whether a tax
12-26    liability has been incurred under this chapter, the comptroller, or
12-27    an authorized deputy, employee, or agent, may audit and examine the
 13-1    records, books, invoices, papers, shipping papers, and equipment of
 13-2    a supplier, importer, wholesaler, bulk purchaser, terminal
 13-3    operator, fuel vendor, or private or common carrier of motor fuel,
 13-4    to verify the completeness and accuracy of any statement or report.
 13-5          (b)  The comptroller or the comptroller's representative,
 13-6    including a federal government employee or a person contracting
 13-7    with the state, may inspect the premises of a fuel vendor, motor
 13-8    fuel transporter, or bulk purchaser and may require the immediate
 13-9    disclosure of any shipping paper required by this chapter to be
13-10    maintained at the physical location at which the request is made,
13-11    including any location at which motor fuel is stored or held for
13-12    sale or transportation.
13-13          (c)  The comptroller may inspect all records of a person
13-14    doing business in this state to determine information relating to
13-15    the sale, transportation, or possession of motor fuels.  A person
13-16    must keep legible records, including shipping papers and invoices
13-17    recording each transaction of fuel, at the point of origin or at a
13-18    reasonable approved proximity for auditing purposes. A terminal
13-19    operator or supplier may maintain records at an approved central
13-20    recordkeeping facility within or outside this state.
13-21          Sec. 161.003.  INSPECTION OF FUEL AND SHIPPING PAPERS.  (a)
13-22    The comptroller or the comptroller's representative, including a
13-23    federal government employee or a person contracting with the state,
13-24    may conduct inspections and remove samples of fuel to determine
13-25    coloration of diesel fuel or to identify shipping paper violations
13-26    at any place at which taxable fuel is or may be produced, stored,
13-27    or loaded into transport vehicles. An inspector may:
 14-1                (1)  physically inspect, examine, or otherwise search a
 14-2    tank, reservoir, or other container that can or may be used to
 14-3    produce, store, or transport fuel;
 14-4                (2)  inspect equipment used for or in connection with
 14-5    the production, storage, or transportation of fuel; and
 14-6                (3)  demand that a person transporting fuel produce for
 14-7    immediate inspection the shipping papers, documents, and records
 14-8    required to be kept by the person.
 14-9          (b)  The premises at which business is conducted for purposes
14-10    of this section and that are subject to inspection include:
14-11                (1)  a terminal;
14-12                (2)  a fuel storage facility that is not a terminal;
14-13                (3)  a retail fuel facility;
14-14                (4)  a highway rest stop; or
14-15                (5)  a fixed or mobile designated inspection site such
14-16    as a state highway or waterway inspection station, weigh station,
14-17    agricultural inspection station, mobile station, or other location
14-18    designated by the comptroller.
14-19          (c)  In addition to their other defined duties, an officer of
14-20    the  Department of Public Safety, a motor carrier inspector in this
14-21    state, and other law enforcement officers and agents of the
14-22    comptroller may conduct inspections to determine violations under
14-23    this chapter using procedures established by the comptroller.
14-24    Agents of the comptroller have the same power and authority
14-25    provided to the comptroller to carry out inspections under this
14-26    chapter.
14-27          (d)  An inspector may detain a person or equipment
 15-1    transporting fuel in or through this state to determine whether the
 15-2    person is operating in compliance with this chapter and any rules
 15-3    adopted under this chapter.  An inspector may detain a person or
 15-4    equipment only for the period necessary to determine whether the
 15-5    person or equipment is in compliance.
 15-6          Sec. 161.004.  OPERATION OF PERMANENT OR PORTABLE WEIGH
 15-7    STATIONS.  (a)  The comptroller may assign qualified persons who
 15-8    are not state peace officers to supervise or operate permanent or
 15-9    portable weigh stations.
15-10          (b)  A person assigned under this section may stop, inspect,
15-11    and issue citations for violations of this chapter to operators of
15-12    trucks, trailers, barges, or vessels having a declared gross weight
15-13    of 11,000 pounds or more, and buses.  The person may perform this
15-14    duty at a permanent weigh station or other inspection point or
15-15    while operating a clearly marked state police vehicle.
15-16          Sec. 161.005.  ANALYSTS, CHEMISTS, AND INSPECTORS APPOINTED.
15-17    The comptroller shall appoint analysts, chemists, and inspectors
15-18    required to carry out this chapter.  The analysts, chemists, and
15-19    inspectors may:
15-20                (1)  examine all barrels, tanks, or other vessels
15-21    containing motor fuels to determine if they are tagged properly;
15-22                (2)  collect and test samples of motor fuels offered
15-23    for sale in this state; and
15-24                (3)  collect and send samples to the Texas Department
15-25    of Agriculture for examination if instructed to.
15-26          Sec. 161.006.  LAW ENFORCEMENT ASSISTANCE.  On request of the
15-27    comptroller, the Department of Public Safety or another law
 16-1    enforcement agency may assist in enforcing all laws relating to the
 16-2    inspection of motor fuels.
 16-3          Sec. 161.007.  STANDARDS FOR MOTOR FUELS; TESTING.  The Texas
 16-4    Department of Agriculture may adopt rules prescribing standards for
 16-5    motor fuel and methods for testing the fuel, including any
 16-6    requirements relating to the chain of custody.
 16-7          Sec. 161.008.  RECORDS OF RECEIPT AND SHIPMENT OF MOTOR
 16-8    FUELS.  (a)  A person who sells motor fuel or offers motor fuel for
 16-9    sale in this state shall keep an accurate record of each lot of
16-10    shipment of motor fuels received by the person and of the motor
16-11    fuels shipped by the person.
16-12          (b)  Each original or copy of a delivery shall include the
16-13    actual origin and destination of motor fuel by federal employer
16-14    identification number or other identifier acceptable to the
16-15    comptroller before the load leaves the terminal or location of
16-16    origination.
16-17          Sec. 161.009.  COMPTROLLER TO ADOPT RULES AND PRESCRIBE
16-18    FORMS.  The comptroller shall adopt rules and prescribe forms in
16-19    conformance with approved Federation of Tax Administrators
16-20    uniformity standards as necessary to carry out this chapter.
16-21          Sec. 161.010.  AGREEMENTS WITH POLITICAL SUBDIVISIONS OR
16-22    INDIAN TRIBES.  (a)  In this section, "Indian tribe" means any
16-23    organized nation, tribe, band, or community recognized as an Indian
16-24    tribe by the United States Department of the Interior.
16-25          (b)  The comptroller shall enter into agreements on behalf of
16-26    this state with political subdivisions or Indian tribes necessary
16-27    to improve motor fuel tax collection and to facilitate the
 17-1    recording of transactions.
 17-2          (c)  The comptroller may enter into agreements with Indian
 17-3    tribes to provide a method or formula to refund taxes paid on
 17-4    tax-exempt motor fuel purchases or uses under this chapter.
 17-5          Sec. 161.011.  AGREEMENTS WITH OTHER STATES.  (a)  The
 17-6    comptroller may enter into a cooperative agreement with another
 17-7    state for the exchange of information and to audit end users of
 17-8    motor fuel in fleets of motor vehicles that are operated or
 17-9    intended to operate interstate.  An agreement or amendment of an
17-10    agreement takes effect according to its terms, except that an
17-11    agreement or amendment may not take effect until the proposed
17-12    agreement or amendment is published in the Texas Register.  An
17-13    agreement may prescribe:
17-14                (1)  the method of determining the base state for motor
17-15    fuel end users;
17-16                (2)  end user record requirements;
17-17                (3)  audit procedures;
17-18                (4)  methods for exchanges of information;
17-19                (5)  persons eligible for tax licensing;
17-20                (6)  licensing and license revocation procedures,
17-21    licenses, penalties, and fees;
17-22                (7)  the method of defining qualified motor vehicles;
17-23                (8)  the method of determining bonding procedures,
17-24    types, and amounts;
17-25                (9)  reporting requirements and periods;
17-26                (10)  refund procedures and limitations, including the
17-27    payment of interest;
 18-1                (11)  uniform penalties, fees, and interest rates;
 18-2                (12)  methods for collecting motor fuel taxes and for
 18-3    collecting and forwarding motor fuel taxes, other than penalties,
 18-4    due to another jurisdiction;
 18-5                (13)  the temporary remittal of funds, equal to the
 18-6    amount of the taxes and interest due another jurisdiction but not
 18-7    otherwise collected, subject to appropriation of funds for that
 18-8    purpose; and
 18-9                (14)  other provisions necessary to facilitate the
18-10    administration of the agreement.
18-11          (b)  The comptroller may, as required by the terms of an
18-12    agreement, forward to an officer of another state any information
18-13    in the comptroller's possession relating to the manufacture,
18-14    receipt, sale, use, transportation, or shipment of motor fuel by
18-15    any person.  The comptroller may disclose to an officer of another
18-16    state the location of officers, motor vehicles, and other real and
18-17    personal property of end users of motor fuel.
18-18          (c)  An agreement with another state may require each state
18-19    to audit the records of a person based in the state to determine if
18-20    the motor fuel taxes due each state that is a party to the
18-21    agreement are properly reported and paid.  An agreement may require
18-22    each state to forward the findings of an audit performed on a
18-23    person based in the state to each other state in which the person
18-24    has taxable use of motor fuel.  The comptroller may use an audit
18-25    performed by another state to make an assessment of motor fuel
18-26    taxes against a person not based in this state who has taxable use
18-27    of motor fuel in this state.
 19-1          (d)  Any agreement entered into under this section does not
 19-2    affect the authority of the comptroller to audit any person under
 19-3    any other law.
 19-4          (e)  An agreement entered into under this section prevails
 19-5    over an inconsistent rule of the comptroller.  Except as otherwise
 19-6    provided by this section, a statute of this state prevails over an
 19-7    inconsistent provision of an agreement entered into under this
 19-8    section.
 19-9          (f)  The comptroller may segregate in a separate fund or
19-10    account the amount of motor fuel taxes, other than penalties,
19-11    estimated to be due to other jurisdictions, motor fuel taxes
19-12    subject to refund during the fiscal year, licensing fees, and other
19-13    costs collected under the agreement.  On a determination of an
19-14    amount held that is due to be remitted to another jurisdiction, the
19-15    comptroller may issue a warrant or make an electronic transfer of
19-16    the amount as necessary to carry out the purposes of the agreement.
19-17    An auditing cost, membership fee, and other cost associated with
19-18    the agreement may be paid from interest earned on funds segregated
19-19    under this subsection.  Any interest earnings in excess of the
19-20    costs associated with the agreement shall be credited to the
19-21    general revenue fund.
19-22          (g)  The comptroller may enter into motor fuel tax agreements
19-23    with other jurisdictions that may provide for the temporary
19-24    remittal of amounts due other jurisdictions that exceed the amounts
19-25    collected.  The comptroller shall ensure that reasonable measures
19-26    are developed to recover motor fuel taxes and other amounts due
19-27    this state during each biennium.
 20-1          Sec. 161.012.  TAX ON CONSUMER.  (a)  The tax imposed on
 20-2    taxable motor fuel under this chapter is a levy and assessment on
 20-3    the consumer, and a person required to remit a tax under this
 20-4    chapter acts as an agent of this state for the collection of the
 20-5    tax.
 20-6          (b)  This section does not affect the method of collecting
 20-7    the tax prescribed by this chapter.  The tax imposed by this
 20-8    chapter must be collected and paid at the times, in the manner, and
 20-9    by the persons prescribed by this chapter.
20-10          Sec. 161.013.  OTHER MOTOR VEHICLE TAXES PROHIBITED.  The
20-11    taxes imposed by this chapter are in lieu of any other occupation
20-12    or sales, use, or other excise tax imposed by a municipality,
20-13    county, or other political subdivision of this state on the sale,
20-14    use, or distribution of gasoline, diesel fuel, or liquefied gas.
20-15          Sec. 161.014.  FOREIGN ENTITIES.  A person with a business
20-16    based outside the political boundaries of the United States can be
20-17    liable for state motor fuel taxes due.
20-18          Sec. 161.015.  PRESUMPTIONS RELATING TO USE OF FUEL.  (a)
20-19    Except as provided by Section 161.161, there is a rebuttable
20-20    presumption that all taxable motor fuel delivered into a motor
20-21    vehicle fuel supply tank in this state is to be used or consumed to
20-22    produce or generate power for propelling the motor vehicle on the
20-23    public highways of this state.
20-24          (b)  Except as provided by Section 161.161, there is a
20-25    rebuttable presumption that all taxable motor fuel that is removed
20-26    from a terminal in this state, imported into this state by other
20-27    than a bulk transfer within the bulk transfer system or terminal
 21-1    transfer system, or delivered into an end user's storage tank is to
 21-2    be used or consumed to produce or generate power for propelling
 21-3    motor vehicles on the public highways of this state.
 21-4          Sec. 161.016.  PRESUMPTION OF TAX DUE.  (a)  A person who
 21-5    fails to keep a record, issue an invoice, or file a report required
 21-6    by this chapter is presumed to have sold or used for taxable
 21-7    purposes all motor fuel shown by an audit by the comptroller to
 21-8    have been sold to the person.  Motor fuel unaccounted for is
 21-9    presumed to have been sold or used for taxable purposes. The
21-10    comptroller may set or establish the amount of taxes, penalties,
21-11    and interest due this state from the records of deliveries or from
21-12    any records or information available to the comptroller.  If a tax
21-13    claim developed under this section is not paid after the
21-14    opportunity to request a redetermination, the claim and any audit
21-15    made by the comptroller, or any report filed by the person, are
21-16    evidence in any suit or judicial proceedings filed by the attorney
21-17    general and are prima facie evidence of the correctness of the
21-18    claim or audit.  A prima facie presumption of the correctness of
21-19    the claim may be overcome at trial by evidence produced by the
21-20    person.
21-21          (b)  In the absence of records showing the number of miles
21-22    actually operated per gallon of motor fuel consumed, it is presumed
21-23    that not less than one gallon of motor fuel was consumed for every
21-24    four miles traveled.  An importer or transporter may produce
21-25    evidence of motor fuel consumption to establish another mileage
21-26    factor. If an examination or audit made by the comptroller of the
21-27    records of an importer or transporter shows that a greater amount
 22-1    of motor fuel was consumed than was reported by the importer or
 22-2    transporter for tax purposes, the importer or transporter is liable
 22-3    for the tax, penalties, and interest on the additional amount
 22-4    shown.  Conversely, an importer or transporter is entitled to a
 22-5    credit or refund on overpayments of tax established by the audit.
 22-6          Sec. 161.017.  FUTURE INCREASES IN MOTOR FUEL TAX RATES.  (a)
 22-7    On the effective date of an increase in the rate of a tax imposed
 22-8    by this chapter, a dealer or other person who possesses for the
 22-9    purpose of sale 2,000 or more gallons of gasoline or diesel fuel at
22-10    each business location on which the taxes imposed by this chapter
22-11    at a previous rate have been paid shall report to the comptroller
22-12    the volume of that gasoline and diesel fuel and, at the time of the
22-13    report, shall pay a tax on that gasoline and diesel fuel at a rate
22-14    equal to the rate of the tax increase.
22-15          (b)  On the effective date of a reduction in the rate of a
22-16    tax imposed by this chapter, a dealer who possesses for the purpose
22-17    of sale 2,000 or more gallons of gasoline or diesel fuel at each
22-18    business location on which the taxes imposed by this chapter at the
22-19    previous rate have been paid becomes entitled to a refund in an
22-20    amount equal to the difference in the amount of taxes paid on that
22-21    gasoline or diesel fuel at the previous rate and at the rate in
22-22    effect on the effective date of the reduction in the tax rate.  The
22-23    comptroller shall adopt rules prescribing the method for claiming a
22-24    refund under this section and may require that the refund be paid
22-25    through the person from whom the dealer received the fuel.
22-26             (Sections 161.018-161.050 reserved for expansion
22-27         SUBCHAPTER B.  TAXES IMPOSED ON GASOLINE AND DIESEL FUEL
 23-1          Sec. 161.051.  TAX ON GASOLINE.  (a)  Subject to the
 23-2    exemptions provided by this chapter, a tax is imposed on all
 23-3    gasoline used or consumed in this state in producing or generating
 23-4    power for propelling a motor vehicle on the public highways of this
 23-5    state.
 23-6          (b)  Except as provided by Subsection (c), the gasoline tax
 23-7    rate is 20 cents a gallon.
 23-8          (c)  The gasoline tax rate for gasoline sold to a transit
 23-9    company for exclusive use in its transit carrier vehicles under an
23-10    exemption certificate promulgated by the comptroller is 19 cents a
23-11    gallon.
23-12          Sec. 161.052.  TAX ON DIESEL FUEL.  (a)  Subject to the
23-13    exemptions provided by this chapter, a tax is imposed on all diesel
23-14    fuel used or consumed in this state in producing or generating
23-15    power for propelling a motor vehicle on the public highways of this
23-16    state.
23-17          (b)  Except as provided by Subsection (c), the diesel fuel
23-18    tax rate is 20 cents a gallon.
23-19          (c)  The diesel fuel tax rate for gasoline sold to a transit
23-20    company for exclusive use in its transit carrier vehicles under an
23-21    exemption certificate promulgated by the comptroller is 19.5 cents
23-22    a gallon.
23-23          Sec. 161.053.  TAX ON IMPORTED MOTOR FUEL.  The tax imposed
23-24    by this chapter on the use of taxable gasoline or diesel fuel
23-25    imported into this state by a licensed importer for delivery to a
23-26    destination in this state, other than by a bulk transfer, shall
23-27    arise at the time the product enters this state.  The amount of the
 24-1    tax shall be measured by invoiced gallons received outside this
 24-2    state at a refinery, terminal, or bulk plant.
 24-3          Sec. 161.054.  MEASUREMENT OF TAX ON MOTOR FUEL.  (a)  Except
 24-4    as provided by  Section 161.053, the tax imposed by this chapter on
 24-5    the use of taxable gasoline or diesel fuel is measured by invoiced
 24-6    gallons of taxable gasoline or diesel fuel removed:
 24-7                (1)  from a qualified terminal or refinery within this
 24-8    state, other than by a bulk transfer, by a licensed supplier; and
 24-9                (2)  from a qualified terminal or refinery outside this
24-10    state for delivery to a location in this state as represented on
24-11    the shipping papers, if the supplier imports the taxable motor fuel
24-12    for the supplier's own account or the supplier has made a tax
24-13    precollection election under Section 161.062.
24-14          (b)  The tax on motor fuel shall otherwise be determined in
24-15    the same manner as the tax imposed by Section 4081, Internal
24-16    Revenue Code of 1986, as amended, and applicable regulations in the
24-17    Code of Federal Regulations, as amended.
24-18          Sec. 161.055.  PAYMENT OF TAX ON MOTOR FUEL IMPORTED FROM
24-19    ANOTHER STATE.  (a)  Except as otherwise provided by this chapter,
24-20    a tax imposed by this chapter on taxable motor fuel imported by a
24-21    licensed occasional importer from another state must be paid by
24-22    that licensed occasional importer.  The licensed occasional
24-23    importer must make the payment not later than the third business
24-24    day after the earlier of the time the nonexempt taxable motor fuel
24-25    entered the state or the date a valid import verification number
24-26    required by Section 161.207 was assigned by the comptroller.
24-27          (b)  Except as otherwise provided by this section, a tax
 25-1    imposed by this chapter on taxable motor fuel imported by a
 25-2    licensed bonded importer from another state must be paid by the
 25-3    licensed bonded importer who imported the nonexempt taxable motor
 25-4    fuel during the month. The tax that accrues during a month is due
 25-5    and payable:
 25-6                (1)  on or before the 9th day of each month for taxes
 25-7    collected from the 25th day of the previous month to the 8th day of
 25-8    the month of payment; and
 25-9                (2)  on or before the 25th day of each month for taxes
25-10    collected from the 9th to the 24th day of each month.
25-11          (c)  If the date the taxes are due and payable is on a
25-12    weekend or  on a state or banking holiday, the tax is due and
25-13    payable on the next succeeding business day.
25-14          (d)  A supplier who has made a blanket election to precollect
25-15    tax under Section 161.056 is jointly liable with the importer for
25-16    the tax and shall remit the tax to the comptroller on behalf of the
25-17    importer under the same terms as a supplier payment is made under
25-18    Section 161.057, except that an import verification number is not
25-19    required and the supplier may retain the  net percentage of the tax
25-20    collected that a supplier may retain under Section 161.066.
25-21          Sec. 161.056.  BLANKET ELECTION TO TREAT ALL REMOVALS FROM
25-22    OUT-OF-STATE TERMINALS AS REMOVALS FROM IN-STATE TERMINALS.  (a)  A
25-23    licensed supplier or licensed permissive supplier may make a
25-24    blanket election to treat all removals from the supplier's
25-25    out-of-state terminals with a destination in this state, as shown
25-26    on the terminal-issued shipping paper, as if the removals were
25-27    removed across the rack by the supplier from a terminal in this
 26-1    state.
 26-2          (b)  An election under this section must be made by filing a
 26-3    notice of election with the comptroller as provided by this
 26-4    section.
 26-5          (c)  The comptroller shall release a list of electing
 26-6    suppliers on request of any person.
 26-7          (d)  A supplier who makes the election provided by this
 26-8    section shall precollect the tax imposed by this chapter on all
 26-9    removals from a qualified terminal on the supplier's account as a
26-10    position holder or as a person receiving fuel from a position
26-11    holder under a two-party exchange agreement, without regard to the
26-12    license status of the person acquiring the fuel from the supplier,
26-13    the point or terms of sale, or the character of delivery.
26-14          Sec. 161.057.  TAX COLLECTED AND REMITTED BY SUPPLIER OR
26-15    PERMISSIVE SUPPLIER; DUE DATE; LATE TAXES.  (a)  The tax imposed by
26-16    this chapter on gasoline or diesel fuel removed by a licensed
26-17    supplier from a terminal or refinery in this state, other than by a
26-18    bulk transfer, must be collected and remitted to the state by the
26-19    supplier who removes the taxable gallons, as shown in the terminal
26-20    operator's records.
26-21          (b)  The supplier and each reseller shall list the amount of
26-22    the tax as a separate line item on all invoices or billings.
26-23          (c)  All tax to be paid by a supplier with respect to gallons
26-24    removed on the supplier's account is due and payable:
26-25                (1)  on or before the 9th day of each month for taxes
26-26    collected from the 25th day of the previous month to the 8th day of
26-27    the month of payment; and
 27-1                (2)  on or before the 25th day of each month for taxes
 27-2    collected from the 9th to the 24th day of each month.
 27-3          (d)  The supplier shall pay the taxes in concurrence with
 27-4    payments to the Internal Revenue Service for federal excise taxes
 27-5    due.
 27-6          (e)  If the date the taxes are due and payable is on a
 27-7    weekend or  on a state or banking holiday, the tax is due and
 27-8    payable on the next succeeding business day.
 27-9          (f)  A supplier shall timely notify the comptroller of:
27-10                (1)  late taxes remitted to the supplier by an eligible
27-11    purchaser; and
27-12                (2)  late remittances, if the supplier previously gave
27-13    notice to the comptroller of an uncollectible tax amount under
27-14    Section 161.064.
27-15          Sec. 161.058.  LIABILITY OF TERMINAL OPERATOR FOR MOTOR FUEL
27-16    TAXES.  (a)  The terminal operator of a terminal in this state is
27-17    jointly and severally liable for the tax imposed under this chapter
27-18    on gasoline and diesel fuel and shall remit payment to this state
27-19    if:
27-20                (1)  the supplier of the taxable motor fuel is a person
27-21    other than the terminal operator and is not a licensed supplier; or
27-22                (2)  in connection with the removal of diesel fuel that
27-23    is not dyed and marked in accordance with Internal Revenue Service
27-24    requirements, the terminal operator provides a person with a bill
27-25    of lading, shipping paper, or similar document indicating that the
27-26    diesel fuel is dyed and marked in accordance with Internal Revenue
27-27    Service requirements.
 28-1          (b)  A terminal operator is relieved of liability in a
 28-2    situation described by Subsection (a)(1) if the operator
 28-3    establishes that the terminal operator:
 28-4                (1)  has a terminal operator's license issued for the
 28-5    facility from which the motor fuel is withdrawn;
 28-6                (2)  has an unexpired notification certificate from the
 28-7    supplier as required by the comptroller or the Internal Revenue
 28-8    Service; and
 28-9                (3)  does not have a reason to believe that any
28-10    information on the certificate is false.
28-11          (c)  The terminal operator is jointly and severally liable
28-12    for the tax imposed by this chapter that is not allocable to a
28-13    licensed supplier.  The terminal operator shall remit the tax due
28-14    with the annual report required by  Section 161.256(d).  The
28-15    operator may not take a collection credit or deduction with respect
28-16    to payment of a tax on lost gallons.  If the number of gallons lost
28-17    or unaccounted for exceeds an amount equal to five percent of the
28-18    gallons removed from that terminal across the rack, the terminal
28-19    operator shall pay a penalty equal to 100 percent of the tax
28-20    otherwise due.
28-21          (d)  Tax is not due if the terminal operator can establish
28-22    that the gallons lost were diesel fuel that was dyed before receipt
28-23    by that terminal operator.
28-24          Sec. 161.059.  PAYMENT OF TAX BY LICENSED TANK WAGON
28-25    OPERATOR-IMPORTER.  (a)  A licensed tank wagon operator-importer is
28-26    liable for the tax imposed by this chapter on nonexempt gasoline
28-27    and diesel fuel imported by a tank wagon if the tax has not
 29-1    previously been paid to a supplier.
 29-2          (b)  The person shall remit the tax for the preceding month's
 29-3    import activities with the person's monthly report of activities.
 29-4          (c)  A licensed tank wagon operator-importer may retain a
 29-5    percentage of the tax as an administrative credit in accordance
 29-6    with Section 161.067(b).
 29-7          Sec. 161.060.  PAYMENT OF TAX BY LICENSED EXPORTER.  (a)  A
 29-8    licensed exporter carrying in a transport truck, tank wagon, or
 29-9    similar vehicle nonexempt gasoline or diesel fuel for which tax has
29-10    not previously been paid to a supplier shall remit the motor fuel
29-11    tax for the destination state to the comptroller with the
29-12    exporter's monthly report of activities.
29-13          (b)  If the comptroller does not have an agreement with the
29-14    destination state for collection of state motor fuel taxes, the tax
29-15    shall  be collected at the applicable rate prescribed by this
29-16    subchapter and shall be refunded when the licensed exporter
29-17    provides proof that the destination state taxes have been paid.
29-18          Sec. 161.061.  COLLECTION OF TAX FROM ELIGIBLE PURCHASER;
29-19    ELECTION TO DEFER TAX PAYMENT.  (a)  A supplier or bonded importer
29-20    who sells taxable gasoline or diesel fuel shall collect from the
29-21    purchaser the motor fuel tax imposed under this chapter.
29-22          (b)  The seller may not require an eligible purchaser to pay
29-23    the tax on transport truckloads of gasoline or diesel fuel before
29-24    payment for the fuel is due or before one business day before the
29-25    date the tax is required to be remitted by the supplier or bonded
29-26    importer under this subchapter.
29-27          (c)  Failure of a supplier or bonded importer to comply with
 30-1    this section may result in suspension or revocation of the person's
 30-2    license.
 30-3          (d)  An eligible purchaser may deduct from the amount of tax
 30-4    otherwise payable to a supplier or bonded importer an amount equal
 30-5    to:
 30-6                (1)  the difference between the tax rate prescribed by
 30-7    Sections 161.051(b) and (c) on gasoline that the eligible purchaser
 30-8    received from the supplier or bonded importer and resold to a
 30-9    transit company under an authorization letter issued by the
30-10    comptroller; and
30-11                (2)  the difference between the tax rate prescribed by
30-12    Sections 161.052(b) and (c) on diesel fuel that the eligible
30-13    purchaser received from the supplier or bonded importer and resold
30-14    to a transit company under an authorization letter issued by the
30-15    comptroller.
30-16          Sec. 161.062.  ELECTION OF PURCHASER.  (a)  A person who
30-17    elects to be an eligible purchaser and to defer payment of taxes
30-18    shall present evidence to the comptroller that the applicant:
30-19                (1)  was a permittee in good standing under Chapter 153
30-20    as it existed on December 31, 2000, under which the person properly
30-21    remitted tax to the comptroller; or
30-22                (2)  meets the financial responsibility and bonding
30-23    requirements imposed by this chapter.
30-24          (b)  The election is subject to a requirement that the
30-25    eligible purchaser's remittances of all amounts of tax due the
30-26    seller must be paid by electronic funds transfer.  The eligible
30-27    purchaser's election under this section may be terminated by the
 31-1    seller if the eligible purchaser does not make timely payments to
 31-2    the seller.
 31-3          (c)  The comptroller may require an eligible purchaser who
 31-4    pays the tax to a supplier to file with the comptroller a surety
 31-5    bond payable to the state on which the eligible purchaser is the
 31-6    obligor or to file other financial security in an amount
 31-7    satisfactory to the comptroller. The comptroller may require that
 31-8    the bond indemnify the comptroller against uncollectible tax
 31-9    credits claimed by the supplier under Section 161.064.
31-10          Sec. 161.063.  RESCISSION OF ELIGIBLE PURCHASER'S ELECTION TO
31-11    DEFER PAYMENT OF TAX.  (a)   The comptroller may rescind an
31-12    eligible purchaser's election to defer remitting motor fuel taxes
31-13    to a supplier or bonded importer by sending written notice to all
31-14    suppliers and bonded importers or by publishing notice of the
31-15    rescission in at least one newspaper of general circulation in this
31-16    state.  The comptroller may rescind the election after a hearing
31-17    and on a showing of good cause such as failure to make timely
31-18    tax-deferred payments to a supplier or bonded importer.
31-19          (b)  Instead of rescinding an election, the comptroller may
31-20    require further assurance of the purchaser's financial
31-21    responsibility, may increase the bond requirement under Section
31-22    161.217 for that purchaser, or may take other action to ensure
31-23    remittance of the taxable motor fuel tax.
31-24          (c)  The comptroller shall follow the revocation procedures
31-25    prescribed by this chapter in rescinding an eligible purchaser's
31-26    election.
31-27          Sec. 161.064.  CREDITS FOR LICENSED SUPPLIERS, PERMISSIVE
 32-1    SUPPLIERS, AND BONDED IMPORTERS.  (a)  In computing the amount of
 32-2    motor fuel tax due, a supplier or bonded importer is entitled to a
 32-3    credit against the tax payable in an amount equal to the  amount of
 32-4    tax paid by the supplier or bonded importer that is uncollectible
 32-5    from an eligible purchaser.
 32-6          (b)  The supplier or bonded importer shall provide notice to
 32-7    the comptroller of a failure to collect tax not later than the 10th
 32-8    day after the  earliest date the supplier or bonded importer was
 32-9    entitled to collect the tax from the eligible purchaser under this
32-10    subchapter.
32-11          (c)  The comptroller by rule shall establish the evidence a
32-12    supplier or bonded importer must provide to receive the credit.
32-13          (d)  A supplier or bonded importer must claim the credit on
32-14    the first return after the date the eligible purchaser fails to pay
32-15    the tax if the payment remains unpaid as of the filing date of that
32-16    return.
32-17          (e)  The claim for the credit must identify the defaulting
32-18    eligible purchaser and any tax liability that remains unpaid.
32-19          (f)  The supplier's or bonded importer's credit is limited to
32-20    the amount due from the eligible purchaser, plus any tax due from
32-21    that purchaser for the period ending on the date the supplier or
32-22    bonded importer receives notice from the comptroller that the
32-23    eligible purchaser's election has been rescinded.
32-24          (g)  A supplier or bonded importer may not receive an
32-25    additional credit under this section in relation to a particular
32-26    purchaser after the purchaser's election is rescinded unless the
32-27    comptroller authorizes the purchaser to make a new election.
 33-1          Sec. 161.065.  PAYMENT OF TAX BY ELECTRONIC FUNDS TRANSFER. A
 33-2    supplier or bonded importer required to remit  motor fuel taxes
 33-3    shall remit the taxes due by electronic funds transfer in the
 33-4    manner required by the comptroller on or before the date the taxes
 33-5    are due.
 33-6          Sec. 161.066.  RETENTION FOR ADMINISTRATIVE COSTS.  (a)  A
 33-7    supplier or permissive supplier who properly remits taxes under
 33-8    this chapter may retain each month an amount equal to three-fourths
 33-9    of one percent of the taxes collected and remitted by that supplier
33-10    in accordance with this chapter to cover administrative costs,
33-11    including reporting, audit compliance, dye injection, and shipping
33-12    paper preparation costs.
33-13          (b)  A licensed bonded importer who properly remits taxes
33-14    under this chapter may retain an amount equal to one-half of one
33-15    percent of the taxes collected and remitted by that importer in
33-16    accordance with this chapter, provided that the importer may not
33-17    retain more than $2,000 each month.  The importer may retain the
33-18    amount to cover administrative costs, including reporting, audit
33-19    compliance, and shipping paper preparation costs.
33-20          Sec. 161.067.  ELIGIBLE PURCHASERS AND SUPPLIERS TO SHARE
33-21    ADMINISTRATIVE CREDITS.  (a)  An eligible purchaser who lawfully
33-22    engages in the distribution of tax-paid motor fuel within this
33-23    state shall receive on removal of the taxable motor fuel from the
33-24    terminal a credit from the terminal in an amount equal to one-half
33-25    of one percent of the tax due to offset the cost of recordkeeping
33-26    and electronic transmission of those records. However, the credit
33-27    is not applicable more than once to any taxable motor fuel.  The
 34-1    supplier may choose not to transfer the credit to an eligible
 34-2    purchaser that is also a company store.
 34-3          (b)  A supplier who makes a sale of tax-paid motor fuel to a
 34-4    person who is not an eligible purchaser is entitled to the
 34-5    allowance provided by Subsection (a).  The supplier shall receive
 34-6    the allowance through a credit against tax remittances due to this
 34-7    state and payable by the person.
 34-8          Sec. 161.068.  TAX COLLECTED ON MOTOR FUEL BELONGS TO STATE
 34-9    AND IS HELD IN TRUST BY COLLECTOR.  (a)  The tax that a person
34-10    collects on the sale of taxable motor fuel belongs to this state
34-11    and the person holds the money in trust for this state and for
34-12    payment to the comptroller as provided by this chapter.
34-13          (b)  Each officer, employee, or agent of a corporation or
34-14    partnership has a duty to collect the tax and is personally liable
34-15    for the tax, penalty, and interest.
34-16          Sec. 161.069.  DIVERSION OF TAXABLE MOTOR FUEL.  (a)  An
34-17    exporter who diverts taxable motor fuel removed from a terminal in
34-18    this state from an intended destination outside this state, as
34-19    shown on the terminal-issued shipping papers, to a destination
34-20    within this state shall:
34-21                (1)  notify this state of the diversion and obtain a
34-22    diversion or import verification number required by Subsection (g);
34-23    and
34-24                (2)  pay the tax imposed by this chapter to this state,
34-25    if the tax has not been paid, on the same terms as if the exporter
34-26    were an occasional importer licensed under Section 161.207, without
34-27    deducting the allowances provided by Section 161.066.
 35-1          (b)  An exporter who removes from a bulk plant in this state
 35-2    taxable motor fuel on which the tax imposed by this chapter
 35-3    previously has been paid may apply for a refund of the tax. The
 35-4    comptroller shall issue a refund of that tax, without including the
 35-5    allowance provided by Section 161.066, on a showing of proof of
 35-6    export that satisfies the comptroller.
 35-7          (c)  An unlicensed importer who diverts taxable motor fuel
 35-8    from a destination outside this state to a destination inside this
 35-9    state after having removed the product from a terminal outside this
35-10    state shall:
35-11                (1)  notify this state of the diversion and obtain a
35-12    diversion or import verification number under Subsection (g); and
35-13                (2)  pay the tax imposed by this chapter to this state,
35-14    on the same terms and conditions as if the unlicensed importer were
35-15    a licensed occasional importer subject to Section 161.207, without
35-16    deducting the allowances provided by Section 161.066.
35-17          (d)  A licensed importer shall report and pay tax on
35-18    diversions into this state of imported taxable motor fuel in
35-19    accordance with the rules that apply to that license class.  A
35-20    licensed importer may not take an allowance under  Section 161.066
35-21    for diverted shipments.
35-22          (e)  An importer who purchases the product from a licensed
35-23    supplier, by mutual agreement with the supplier, may permit the
35-24    supplier to assume the importer's liability and adjust the
35-25    importer's taxes payable to the supplier.
35-26          (f)  If a monthly report is filed or the amount due is
35-27    remitted after the date required by this chapter, the tax remitter
 36-1    shall pay to the comptroller all of the motor fuel tax the remitter
 36-2    collected from the sale of taxable motor fuel during the taxable
 36-3    period in addition to penalties and interest.
 36-4          (g)  Under all circumstances, diverted loads and imported
 36-5    loads must obtain a diversion or import verification number from
 36-6    the comptroller before:
 36-7                (1)  leaving this state;
 36-8                (2)  entering this state; or
 36-9                (3)  being delivered.
36-10          Sec. 161.070.  PERSONS BLENDING OR FRACTIONATING UNTAXED
36-11    MATERIALS;  PAYMENT OF TAX.  (a)  A person blending untaxed
36-12    materials, including blendstocks and additives, with taxable motor
36-13    fuels shall pay and remit any unpaid tax imposed by this chapter.
36-14          (b)  A person fractionating fuels shall:
36-15                (1)  comply with the requirements of Section 161.316
36-16    relating to correct fuel formulation; and
36-17                (2)  pay and remit any unpaid tax imposed by this
36-18    chapter.
36-19          (c)  A fuel vendor required to pay a tax under Subsection (a)
36-20    shall remit the tax with the report required by Section 161.261(b)
36-21    or otherwise required from a person who is a miscellaneous fuel tax
36-22    license holder.
36-23          (d)  A person, other than a fuel vendor required to pay tax
36-24    under Subsection (a), shall remit the tax directly to the
36-25    comptroller not later than the 30th day after the blending event in
36-26    accordance with comptroller rules.
36-27          Sec. 161.071.  BACK-UP TAX COLLECTION.  (a)  A tax is imposed
 37-1    by this chapter on tax-exempt motor fuel that is used in a taxable
 37-2    or illegal manner  and on a tax-exempt end user who uses tax-exempt
 37-3    fuel in a taxable or illegal manner.
 37-4          (b)  The ultimate vendor of taxable motor fuel is jointly and
 37-5    severably liable for the tax imposed by this section if the
 37-6    ultimate vendor knows or has reason to know that the tax-exempt
 37-7    motor fuel is or will be used in a manner that will make the fuel
 37-8    subject to taxation under this section.
 37-9             (Sections 161.072-161.100 reserved for expansion
37-10               SUBCHAPTER C. TAXES IMPOSED ON LIQUEFIED GAS
37-11          Sec. 161.101.  LIQUEFIED GAS.  (a)  Subject to the exemptions
37-12    provided by this chapter, a tax is imposed on all liquefied gas
37-13    used or consumed in this state in producing or generating power for
37-14    propelling a motor vehicle on the public highways of this state.
37-15          (b)  The liquefied gas tax rate is 15 cents a gallon.
37-16          Sec. 161.102.  PAYMENT OF TAX.  (a)  A person using a
37-17    liquefied gas-propelled motor vehicle,  including a motor vehicle
37-18    equipped to use liquefied gas interchangeably with another motor
37-19    fuel, that is required to be licensed in this state for use on the
37-20    public highways of this state shall prepay the liquefied gas tax to
37-21    the comptroller on an annual basis.  A person who holds a motor
37-22    vehicle dealer's liquefied gas tax decal or an interstate trucker
37-23    whose vehicle is registered in this state but who may operate in
37-24    other states under a multistate fuels tax agreement shall pay the
37-25    tax to a permitted dealer at the time the fuel is delivered into
37-26    the fuel supply tank of the motor vehicle.
37-27          (b)  An interstate trucker operating a motor vehicle licensed
 38-1    in a base state other than this state and any other out-of-state
 38-2    user shall pay the tax on delivery of the liquefied gas into the
 38-3    fuel supply tanks of a motor vehicle.
 38-4          Sec. 161.103.  LICENSES; APPLICATION; DISPLAY.  (a)  A dealer
 38-5    who sells taxable liquefied gas, an interstate trucker, a liquefied
 38-6    gas tax decal user, or a motor vehicle dealer's liquefied gas tax
 38-7    decal license holder shall file an application with the comptroller
 38-8    for the kind and class of a nonassignable license required by this
 38-9    subchapter.
38-10          (b)  An application for a license must be filed on a form
38-11    provided by the comptroller showing the kind and class of license
38-12    desired, the odometer reading of a Class A through Class F motor
38-13    vehicle, and other information required by the comptroller.
38-14          (c)  A license shall be posted in a conspicuous place or kept
38-15    available for inspection at the principal place of business of the
38-16    owner.  A license holder shall reproduce the license and keep a
38-17    copy on display at each additional place of business from which
38-18    liquefied gas is sold, delivered, or used in motor vehicles.  A
38-19    person holding an interstate trucker's license shall reproduce the
38-20    license and carry a copy with each motor vehicle being operated
38-21    into or from this state.  The liquefied gas tax decal user shall
38-22    affix the decal in the lower right corner of the front windshield
38-23    of the passenger side of the vehicle.
38-24          Sec. 161.104.  DEALER'S LICENSE.  A dealer's license
38-25    authorizes a dealer to collect and remit taxes on liquefied gas
38-26    delivered into the fuel supply tank of a motor vehicle displaying
38-27    an out-of-state license plate, the motor vehicle of an interstate
 39-1    trucker licensed under an agreement entered into under Section
 39-2    161.011, or a motor vehicle displaying a motor vehicle dealer's
 39-3    liquefied gas tax decal.
 39-4          Sec. 161.105.  LIQUEFIED GAS TAX DECAL LICENSE.  (a)  A
 39-5    person who uses liquefied gas in producing or generating power  for
 39-6    propelling a motor vehicle on the public highways of this state
 39-7    shall pay in advance annually, on each motor vehicle owned,
 39-8    operated, and registered in this state by that person, a tax based
 39-9    on the registered gross weight and mileage driven the previous year
39-10    in the following schedule:
39-11                                    Less    5,000   10,000  15,000
39-12                                    Than    to      to      Miles
39-13                                    5,000   9,999   14,999  and
39-14                                    Miles   Miles   Miles   Over
39-15          Class A:  Less than 4,000  $30     $60     $90    $120
39-16          pounds
39-17          Class B:  4,000 to 10,000  $42     $84    $126    $168
39-18          pounds
39-19          Class C:  10,001 to        $48     $96    $144    $192
39-20          15,000 pounds
39-21          Class D:  15,001 to        $84    $168    $252    $336
39-22          27,500 pounds
39-23          Class E:  27,501 to       $126    $252    $378    $504
39-24          43,500 pounds
39-25          Class F:  43,501 pounds   $186    $372    $558    $744
39-26          and over
39-27          (b)  The first issuance of a liquefied gas tax decal for a
 40-1    Class A through Class F motor vehicle shall be issued on the basis
 40-2    of the number of miles estimated to be driven during the period
 40-3    ending on the first anniversary of the date of issuance of the
 40-4    decal.
 40-5          (c)  A special use liquefied gas tax decal and tax shall be
 40-6    required in accordance with this subsection for the following types
 40-7    of vehicles:
 40-8          Class T: Transit carrier vehicles operated by a transit
 40-9          company ........................................ $444. 
40-10          (d)  An entity holding a registration under Chapter 503,
40-11    Transportation Code, may obtain a decal for each
40-12    liquefied-gas-powered motor vehicle held for sale or resale and pay
40-13    the tax on each gallon to a licensed dealer on each delivery of
40-14    liquefied gas into the fuel supply tank of the motor vehicle. An
40-15    interstate trucker is not required to prepay the tax under
40-16    Subsection (a)  for a motor vehicle operated for commercial
40-17    purposes.
40-18          Sec. 161.106.  LICENSES:  PERIODS OF VALIDITY.  (a)  A
40-19    dealer's license is permanent and valid as long as  the license
40-20    holder provides timely reports to the comptroller as required, or
40-21    until the license is surrendered by the holder or canceled by the
40-22    comptroller.
40-23          (b)  A liquefied gas tax decal license is valid from the date
40-24    of its initial issuance through the last day of the same month of
40-25    the year following the year it was issued, unless the motor vehicle
40-26    for which the tax is prepaid is sold or no longer used on a public
40-27    highway.  After its initial issuance, a liquefied gas tax decal
 41-1    license shall be issued annually and is valid until the first
 41-2    anniversary of the date of its issuance unless the motor vehicle
 41-3    for which the tax is prepaid is sold or no longer used on a public
 41-4    highway.  A liquefied gas tax decal license holder must apply for a
 41-5    new license each year.  The ending odometer reading must be
 41-6    provided on the renewal application.  In the absence of an ending
 41-7    odometer reading, the previous year's mileage of the motor vehicle
 41-8    shall be presumed to be at least 15,000 miles.
 41-9          (c)  A motor vehicle dealer's liquefied gas tax decal license
41-10    shall be issued annually and is valid from the date of its issuance
41-11    through December 31 of each calendar year unless the motor vehicle
41-12    is sold, at which time the decal shall be removed by the dealer
41-13    from the motor vehicle.  A motor vehicle dealer's liquefied gas tax
41-14    decal license holder must make application for a new license each
41-15    year. The fee for a dealer's license is $50.
41-16          Sec. 161.107.  COMPUTATION OF TAXES; ALLOWANCES.  (a)  A
41-17    licensed dealer who makes a sale or delivery of liquefied gas into
41-18    a fuel supply tank of a motor vehicle on which the tax is required
41-19    to be collected is liable to this state for the tax imposed and
41-20    shall report and pay the tax in the manner required by this
41-21    subchapter.
41-22          (b)  The tax on one-half of one percent of the taxable
41-23    gallons of liquefied gas sold in this state by a licensed dealer
41-24    shall be allocated to the licensed dealer for the expense of
41-25    collecting, accounting for, reporting, and remitting the taxes
41-26    collected and keeping the records.  The allocation allowance shall
41-27    be deducted by the licensed dealer in the payment to this state.
 42-1          (c)  The tax on one-half of one percent of the taxable
 42-2    gallons of liquefied gas sold in this state to a person licensed as
 42-3    an interstate trucker shall be allocated to the interstate trucker
 42-4    making the use of the liquefied gas for the expense of accounting
 42-5    for, reporting, and remitting the taxes due.
 42-6          Sec. 161.108.  RECORDS.  (a)  Each taxable sale or delivery
 42-7    of liquefied gas into the fuel supply tank of a motor vehicle,
 42-8    including deliveries by interstate truckers from bulk storage, must
 42-9    be covered by an invoice.  The invoice must be printed and contain:
42-10                (1)  the preprinted or stamped name and address of the
42-11    licensed dealer or interstate trucker;
42-12                (2)  the date;
42-13                (3)  the number of gallons delivered;
42-14                (4)  the mileage recorded on the odometer;
42-15                (5)  the state and state highway license number;
42-16                (6)  the signature of the driver of the motor vehicle;
42-17    and
42-18                (7)  the amount of tax paid or accounted for separately
42-19    from the selling price.
42-20          (b)  The invoice must be carried with the vehicle, and the
42-21    invoice serves as a trip permit.
42-22          (c)  A liquefied gas tax decal license holder required to
42-23    report beginning and ending odometer readings may deduct the miles
42-24    traveled outside this state from the total miles traveled.  A
42-25    record of miles traveled by the vehicle in states other than this
42-26    state must be maintained and submitted with the renewal each year.
42-27    A decal may not be renewed for an amount less than the rate for
 43-1    4,999 miles annually.
 43-2          Sec. 161.109.  REPORTS AND PAYMENTS.  (a)  A licensed dealer,
 43-3    on or before the 25th day of the month following the end of each
 43-4    calendar quarter, shall file a report and remit the amount of tax
 43-5    due.
 43-6          (b)  A licensed dealer who has not made taxable sales during
 43-7    the reporting period shall file with the comptroller a report that
 43-8    includes the facts or information.
 43-9          Sec. 161.110.  REFUNDS; TRANSFER OF DECALS.  (a)  If a motor
43-10    vehicle with a liquefied gas tax decal is sold or transferred, the
43-11    seller and purchaser shall promptly notify the comptroller of the
43-12    sale or transfer, and a new decal shall be issued in the new
43-13    purchaser's name.
43-14          (b)  If a motor vehicle with a liquefied gas tax decal is
43-15    destroyed or the liquefied gas carburetor system is removed, the
43-16    owner is entitled to a refund of the unused portion of the advance
43-17    taxes paid for that year.  The owner or operator shall submit to
43-18    the comptroller an affidavit identifying the vehicle, the license
43-19    number, the decal number assigned to the vehicle, the circumstances
43-20    entitling the person to a refund, and all other information
43-21    required by the comptroller.  On receipt of the affidavit, and if
43-22    satisfied as to the circumstances, the comptroller shall refund
43-23    that portion of the tax payment that corresponds to the number of
43-24    complete months remaining in the year for which the tax has been
43-25    paid, beginning with the month following the date the vehicle or
43-26    the liquefied gas carburetor was not used.  The comptroller may not
43-27    make a refund if the use of the vehicle ceased within the last
 44-1    month of the year.
 44-2             (Sections 161.111-161.130 reserved for expansion
 44-3              SUBCHAPTER D.  INTERNATIONAL FUEL TAX AGREEMENT
 44-4          Sec. 161.131.  INTERNATIONAL FUEL TAX AGREEMENT LICENSE
 44-5    REQUIREMENT.  (a)  An interstate trucker who imports motor fuel
 44-6    into this state in the fuel supply tanks of a motor vehicle
 44-7    described in the definition of "interstate trucker" in Section
 44-8    161.001 that is operated for commercial purposes shall obtain a
 44-9    license as an interstate trucker to:
44-10                (1)  report and pay the tax due on motor fuel that is
44-11    imported and used on the public highways in this state; or
44-12                (2)  claim a credit or refund of the tax paid on motor
44-13    fuel purchased in this state and used in other states.
44-14          (b)  An interstate trucker's license is valid:
44-15                (1)  from the date of issuance through December 31 of
44-16    that year; or
44-17                (2)  until the trucker surrenders the license or the
44-18    comptroller cancels the license.
44-19          (c)  The comptroller may renew the license each year if the
44-20    license holder reports as required by the comptroller.
44-21          (d)  The comptroller shall determine from the information on
44-22    the application or from other investigations the kind or class of
44-23    license or permit to be issued.
44-24          (e)  The comptroller shall issue a license to an applicant on
44-25    approval of the application.
44-26          (f)  A person who holds an interstate trucker's license shall
44-27    reproduce the license and carry a photocopy in each vehicle the
 45-1    person operates into or from this state.
 45-2          (g)  A license is not transferable.
 45-3          Sec. 161.132.  TRIP PERMIT.  (a)  Instead of obtaining an
 45-4    annual interstate trucker's license, an interstate trucker may
 45-5    obtain a trip permit.
 45-6          (b)  The trip permit must be obtained before or at the time
 45-7    of entry into this state.
 45-8          (c)  The comptroller may not issue more than five trip
 45-9    permits for a person during a calendar year.  The comptroller shall
45-10    collect a fee for each trip permit in the amount of $50 for each
45-11    vehicle for each trip.
45-12          (d)  A report is not required with respect to that vehicle.
45-13          (e)  A trip permit is not transferable.
45-14          Sec. 161.133.  OPERATING WITHOUT LICENSE OR PERMIT.  An
45-15    interstate trucker who operates a motor vehicle without an
45-16    interstate trucker's license or trip permit may be subject to a
45-17    penalty under Subchapter I.
45-18          Sec. 161.134.  RECORD REQUIREMENT.  (a)  An interstate
45-19    trucker shall keep a record of:
45-20                (1)  the total miles traveled in all states by all
45-21    vehicles traveling into or from this state and the total quantity
45-22    of motor fuel consumed in those vehicles; and
45-23                (2)  the total miles traveled in this state and the
45-24    total quantity of motor fuel purchased in this state, showing both
45-25    tax-paid fuel delivered into the fuel supply tanks of motor
45-26    vehicles and tax-free fuel delivered into storage facilities in
45-27    this state.
 46-1          (b)  The interstate trucker shall keep the records required
 46-2    for four years.  The records are open to inspection at all times by
 46-3    the comptroller and the attorney general.
 46-4          Sec. 161.135.  REPORTS.  (a)  On or before the 25th day of
 46-5    the month following the end of each calendar quarter, an
 46-6    interstate trucker shall file a report on forms provided by the
 46-7    comptroller.
 46-8          (b)  The report must include complete and detailed
 46-9    information required by the comptroller, including the number of
46-10    miles traveled in this state and the number of miles traveled
46-11    outside this state.
46-12          (c)  An interstate trucker who has not used any motor fuel
46-13    during the reporting period shall file with the comptroller a
46-14    report stating that fact.
46-15          (d)  The failure of an interstate trucker to obtain forms
46-16    from the comptroller is not an excuse for the failure to file a
46-17    report containing the information required to be reported.
46-18          (e)  The comptroller may waive a report required by this
46-19    section if substantially similar data is available from federal
46-20    government sources.
46-21          Sec. 161.136.  PAYMENT OF TAX.  (a)  An interstate trucker
46-22    may not make tax-free purchases of motor fuel.
46-23          (b)  An interstate trucker shall remit the amount of tax due
46-24    with the report required by  Section 161.135.
46-25          (c)  An interstate trucker shall remit all taxes due by the
46-26    trucker based on the applicable tax rate for each gallon of motor
46-27    fuel consumed in this state at the time the report is filed.
 47-1          (d)  A licensed interstate trucker is entitled to deduct an
 47-2    amount equal to one-half of one percent of the taxable gallons of
 47-3    motor fuel on payment of taxes to this state for the expense of
 47-4    recordkeeping, reporting, and remitting the tax.
 47-5          Sec. 161.137.  CREDIT FOR MOTOR FUEL CONSUMED OUTSIDE STATE.
 47-6    (a)  A licensed interstate trucker is entitled to a credit equal to
 47-7    the tax rate for each gallon on all tax-paid motor fuel that is
 47-8    consumed in a vehicle outside this state.
 47-9          (b)  An interstate trucker may accumulate credits for four
47-10    successive calendar quarters, but must take the credit or claim a
47-11    refund on a report filed on or after the 25th day after the end of
47-12    the fourth quarter.
47-13          (c)  If the amount of a credit to which the interstate
47-14    trucker is entitled for a calendar quarter exceeds the amount of
47-15    tax for which the interstate trucker is liable for motor fuel
47-16    consumed in the person's vehicles during the reporting period, the
47-17    comptroller may allow the trucker to claim the excess as a credit
47-18    or refund on a timely filed quarterly report against tax for which
47-19    the interstate trucker would be otherwise liable for any of the
47-20    next three quarters.
47-21          (d)  An interstate trucker claiming a tax refund or credit
47-22    must provide evidence of the mileage traveled and gallons consumed
47-23    and the payment of the tax on a form required by or satisfactory to
47-24    the comptroller.
47-25          (e)  An interstate trucker must file a claim for a credit or
47-26    refund not later than the first anniversary of the day after the
47-27    first day of the calendar month following the purchase or use.
 48-1          Sec. 161.138.  INTERSTATE TRUCKERS AND LESSORS; PAYMENT OF
 48-2    TAX.  (a) Unless a lessor is  liable under Subsection (b), an
 48-3    interstate trucker is liable for the tax on motor fuel imported
 48-4    into this state in the fuel supply tanks of motor vehicles leased
 48-5    to the trucker and used on the public highways of this state to the
 48-6    same extent and in the same manner as the trucker is liable for the
 48-7    tax on motor fuel imported in the trucker's own motor vehicles and
 48-8    used on the public highways of this state.
 48-9          (b)  A lessor who regularly engages in the business of
48-10    leasing motor vehicles and equipment for compensation to carriers
48-11    or other lessees for interstate  operation may be considered to be
48-12    the end user or interstate trucker if the lessor supplies or pays
48-13    for the motor fuel consumed in those vehicles.  A lessor may be
48-14    issued a license as an interstate trucker if an application is
48-15    properly filed with and approved by the comptroller.
48-16          (c)  A lessee may exclude a motor vehicle that the person
48-17    leases from the person's reports and liabilities under this
48-18    chapter, but only if the motor vehicle has been leased from a
48-19    lessor who holds a license as a bonded interstate trucker for the
48-20    calendar year.
48-21          (d)  A lessor described by Subsection (b) may file with the
48-22    person's application for an interstate trucker license one copy of
48-23    the form lease or service contract the person enters into with the
48-24    lessees of the person's motor vehicles.  On approval of the
48-25    license, the lessor may make and assign to each motor vehicle the
48-26    person leases for interstate operation a photocopy of the license
48-27    to be carried in the cab compartment of the motor vehicle.  The
 49-1    photocopy of the license must have typed or printed on the back the
 49-2    unit or motor number of the motor vehicle to which it is assigned
 49-3    and the name of the lessee.  The lessor is responsible for the
 49-4    proper use of the photocopy of the license issued and for its
 49-5    return to the lessor with the motor vehicle to which it is
 49-6    assigned.
 49-7             (Sections 161.139-161.160 reserved for expansion
 49-8              SUBCHAPTER E. EXEMPTIONS, REFUNDS, AND CREDITS
 49-9          Sec. 161.161.  EXEMPTIONS FROM TAX ON MOTOR FUEL.  (a)
49-10    Subject to the conditions and prohibitions imposed by this chapter,
49-11    the following are exempt from the tax on motor fuel imposed by this
49-12    chapter:
49-13                (1)  aviation fuels delivered to or by a licensed
49-14    aviation fuels dealer exclusively for the supply tanks of aircraft
49-15    or aircraft servicing equipment;
49-16                (2)  red-dyed diesel fuel;
49-17                (3)  taxable diesel fuel that has been contaminated by
49-18    dye so as to be unsellable or unusable as public highway fuel;
49-19                (4)  kerosene sold at retail through barricaded
49-20    dispensers designed and constructed to prevent delivery directly
49-21    from the dispenser into a vehicle's fuel supply tank;
49-22                (5)  kerosene sold at retail through nonbarricaded
49-23    dispensers in quantities of not more than 21 gallons for use other
49-24    than for public highway purposes;
49-25                (6)  red-dyed kerosene in accordance with federal
49-26    regulations;
49-27                (7)  motor fuel brought into this state in the fuel
 50-1    supply tank of a vehicle operated by a person not required to be
 50-2    licensed as an importer or transporter;
 50-3                (8)  motor fuel sales to the federal government or a
 50-4    public school district for its exclusive use;
 50-5                (9)  motor fuel sold to a commercial transportation
 50-6    company that provides public school transportation services to a
 50-7    school district under Section 34.008, Education Code, and used by
 50-8    the company exclusively to provide those services;
 50-9                (10)  liquefied gas sold to a county government for its
50-10    exclusive use;
50-11                (11)  motor fuel sold for export, including motor fuel
50-12    that is:
50-13                      (A)  sold by a supplier for immediate export to a
50-14    state for which the destination state's motor fuel tax has been
50-15    paid to a supplier licensed to remit the tax to the destination
50-16    state;
50-17                      (B)  destined for use other than for resale
50-18    within the destination state and for which an exemption has been
50-19    made available by the destination state;
50-20                      (C)  exported by refineries and transported by
50-21    pipeline, railroad car, marine barge, or oceangoing vessel; or
50-22                      (D)  acquired by a licensed or unlicensed
50-23    exporter for which the tax imposed by this chapter has previously
50-24    been paid or accrued, and placed into storage in this state and
50-25    subsequently exported by transport truck by or on behalf of the
50-26    exporter;
50-27                (12)  motor fuel imports that have valid shipping
 51-1    papers with a registered terminal listed as the destination if the
 51-2    terminal is licensed as a permissive supplier by this state; or
 51-3                (13)  motor fuel exchanged as part of a two-party motor
 51-4    fuel exchange that occurs at or above the terminal level in the
 51-5    bulk transfer system.
 51-6          (b)  Motor fuel delivered to a farm or ranch for agricultural
 51-7    purposes shall be delivered tax-free if the fuel is delivered in
 51-8    quantities of 3,000 gallons or less per delivery, with a maximum of
 51-9    10,000 gallons in any month.   The ultimate vendor shall pay the
51-10    tax on behalf of the farm or ranch and may request a refund under
51-11    Section 161.162.
51-12          Sec. 161.162.  REFUNDS OF MOTOR FUEL TAX PAID.  (a)  A person
51-13    who has paid tax on  motor fuel that is used for a nontaxable
51-14    purpose described by this subsection may apply to the comptroller
51-15    for a refund using a form prescribed by the comptroller.  The
51-16    comptroller shall make the refund for taxes paid on motor fuel used
51-17    for the following purposes on receipt of the application and proof
51-18    the comptroller considers acceptable:
51-19                (1)  motor fuel exempted under Section 161.161(a)(3),
51-20    (8),  (9), (10), (11), or (12);
51-21                (2)  motor fuel used in a motor vehicle that is
51-22    operated exclusively off-road, including motor fuel described by
51-23    Section 161.161(b); and
51-24                (3)  motor fuel used in auxiliary power take-off
51-25    equipment and other off-road stationary engines, if accurately
51-26    metered or documented according to rules adopted by the
51-27    comptroller.
 52-1          (b)  A person who files a claim for a tax refund forfeits the
 52-2    person's right to the entire amount of the claim if:
 52-3                (1)  the claim is filed for motor fuel used for a
 52-4    purpose for which a tax refund is not authorized; or
 52-5                (2)  the person files an invoice supporting a refund
 52-6    claim on which the date, computations, or any material information
 52-7    has been falsified or altered.
 52-8          (c)  The comptroller may grant all or part of a refund under
 52-9    Subsection (b) if the person provides proof satisfactory to the
52-10    comptroller that the incorrect refund claim was filed because of  a
52-11    clerical or mathematical computation error.
52-12          (d)  The comptroller shall credit or pay a refund directly to
52-13    the person who paid the tax.  A credit or refund is not assignable
52-14    or transferable.
52-15          Sec. 161.163.  CLAIM FOR REFUND ON TAXES PAID ON EXEMPT SALES
52-16    TO GOVERNMENTAL ENTITIES.  (a)  This section applies to:
52-17                (1)  a sale of taxable motor fuel for use by the
52-18    federal government or a public school district;
52-19                (2)  taxable motor fuel sold to a commercial
52-20    transportation company that provides public school transportation
52-21    to a school district under Section 34.008, Education Code, and used
52-22    by the company exclusively to provide those services; and
52-23                (3)  liquefied gas sold to a county for its exclusive
52-24    use.
52-25          (b)  The licensed fuel vendor that made a sale described by
52-26    Subsection (a)  as an ultimate vendor to an exempt government end
52-27    user may apply for a refund on behalf of the exempt end user.
 53-1          (c)  The licensed fuel  vendor shall apply directly with the
 53-2    comptroller in accordance with the rules and forms prescribed by
 53-3    the comptroller.
 53-4          (d)  An ultimate vendor may apply for a government exempt
 53-5    bulk sales permit that entitles the vendor to make purchases of
 53-6    gasoline tax-free for resale to an exempt government end user.  The
 53-7    ultimate vendor must apply on a form acceptable to the comptroller
 53-8    and include on or with the application:
 53-9                (1)  proof of financial responsibility or a bond in an
53-10    amount not to exceed the tax on the total gallons to be purchased
53-11    tax-exempt in any year;
53-12                (2)  an estimate of total tax-exempt gallons to be sold
53-13    under the permit on an annual basis;
53-14                (3)  the name of the suppliers from which the applicant
53-15    will make tax-exempt purchases under the permit;
53-16                (4)  a list of government tax-exempt purchasers
53-17    qualifying under Subsection (f) and estimated volumes for each
53-18    purchaser; and
53-19                (5)  any other information the comptroller requires by
53-20    rule.
53-21          (e)  If the comptroller determines that tax collections would
53-22    not be jeopardized by issuance of a government exempt bulk sales
53-23    permit, the comptroller shall issue a permit to the applicant that
53-24    authorizes the applicant to make tax-exempt sales of motor fuel
53-25    during the year in an amount not to exceed the estimate included on
53-26    the application. The comptroller shall provide a copy of the permit
53-27    to each supplier named by the applicant under Subsection (d)(3).
 54-1          (f)  A governmental entity may not qualify as a purchaser
 54-2    eligible for tax-exempt sales under this section unless the
 54-3    ultimate vendor:
 54-4                (1)  obtains a properly completed federal Form 1094,
 54-5    its state equivalent, or a successor form from the governmental
 54-6    entity;
 54-7                (2)  sends a copy of the form to the comptroller; and
 54-8                (3)  includes with the copy an estimate of the annual
 54-9    quantity of taxable motor fuel to be supplied to that purchaser.
54-10          (g)  The comptroller shall assign an approval number for the
54-11    governmental entity and ultimate vendor location described by
54-12    Subsection (f).
54-13          (h)  The comptroller may not require that the identical
54-14    gallons purchased by the ultimate vendor under the permit be
54-15    delivered to the eligible entity under this section.  The
54-16    comptroller may require that the total gallons purchased tax-exempt
54-17    under the permit equal the total gallons delivered to all eligible
54-18    entities.
54-19          (i)  If the ultimate vendor fails to deliver purchased
54-20    tax-exempt motor fuel to an eligible entity under this section, the
54-21    ultimate vendor is liable for the tax on that motor fuel.  If the
54-22    number of tax-exempt gallons purchased tax-free exceeds the number
54-23    of gallons sold for tax-exempt use by 10 percent or more, the
54-24    comptroller may levy a penalty equal to 10 percent of the tax due.
54-25          (j)  If the ultimate vendor needs to purchase more gallons
54-26    than the amount the vendor included in the estimate prescribed by
54-27    Subsection (d) to fulfill the vendor's commitments, the vendor
 55-1    shall notify the comptroller.  If the comptroller is satisfied with
 55-2    the reports previously submitted by the vendor that account for the
 55-3    tax-exempt fuel, the comptroller shall increase the quantity
 55-4    authorized on the permit and shall notify each supplier of the
 55-5    increase.
 55-6          (k)  If an ultimate vendor makes a sale of taxable motor fuel
 55-7    to an eligible entity under this section at a fixed retail pump
 55-8    available to the general public without including the tax, the
 55-9    ultimate vendor who made the sale may:
55-10                (1)  apply to the comptroller for a refund in
55-11    accordance with Subsections (b) and (c); or
55-12                (2)  apply to the comptroller for a refund or a credit
55-13    against its liabilities otherwise arising under this chapter if the
55-14    purchase is charged to a credit card issued to the eligible entity
55-15    and the issuer of the card elects to be the ultimate vendor.
55-16          (l)  If an ultimate vendor makes a sale of taxable motor fuel
55-17    to an eligible entity under this section at a fixed retail pump
55-18    available to the general public and includes the tax, the entity
55-19    may apply for a refund from the comptroller.  The entity must
55-20    submit with the application any supporting documentation the
55-21    comptroller prescribes by rule.
55-22          Sec. 161.164.  REFUND OF MOTOR FUEL TAX ERRONEOUSLY PAID.
55-23    (a) If any taxes, interest, or penalties imposed by this chapter
55-24    have been erroneously paid or illegally collected, the comptroller
55-25    shall  permit the person who paid the tax to:
55-26                (1)  take a credit against a subsequent tax report for
55-27    the amount erroneously or illegally paid; or
 56-1                (2)  apply for a refund.
 56-2          (b)  An election to take a credit must be made not later than
 56-3    the first anniversary of the date of the erroneous collection or
 56-4    payment.
 56-5          Sec. 161.165.  REFUND CLAIMS.  (a)  Except as otherwise
 56-6    provided by this chapter, to claim a refund under Sections
 56-7    161.162-161.164, a person must:
 56-8                (1)  file the claim not later than the first
 56-9    anniversary of the date the taxable motor fuel was purchased;
56-10                (2)  list on the claim the total amount of taxable
56-11    motor fuel purchased and used for an exempt purpose;
56-12                (3)  state on the claim that payment for the purchase
56-13    has been made and that the amount of tax paid on the purchase has
56-14    been remitted to the seller; and
56-15                (4)  verify in writing that the claim is made under
56-16    penalties of perjury.
56-17          (b)  The comptroller shall investigate a claim as the
56-18    comptroller considers necessary before issuing a refund.  The
56-19    comptroller may also investigate a refund after the refund has been
56-20    issued and within the period for making adjustments to the tax
56-21    under this chapter.
56-22          (c)  If a refund is payable to a supplier, the supplier may
56-23    claim a credit instead of the refund.
56-24          (d)  To facilitate efficient administration and instead of an
56-25    individual refund procedure, the comptroller by rule may provide an
56-26    alternative election by the applicant for a refund by allowing a
56-27    credit against state tax liability.
 57-1          (e)  The comptroller shall deduct from a refund the amount
 57-2    originally deducted under Subchapter B by the licensed entity
 57-3    making the sale.
 57-4          Sec. 161.166.  INTEREST ON REFUND.  The comptroller shall pay
 57-5    interest on a claim for refund at the rate and in the manner
 57-6    provided by comptroller rules.
 57-7             (Sections 161.167-161.200 reserved for expansion
 57-8                          SUBCHAPTER F. LICENSING
 57-9          Sec. 161.201.  REQUIREMENT FOR LICENSE.  A person who wants
57-10    to engage in any form of fuel storage, transportation, purchase,
57-11    sale, or delivery in this state must notify the comptroller of that
57-12    intent and obtain an appropriate license.
57-13          Sec. 161.202.  SUPPLIER'S LICENSE; FEE.  (a)  A person who
57-14    wants to be engaged in business in this state as a supplier must
57-15    obtain a supplier's license.
57-16          (b)  The fee for a supplier's license is $2,000.
57-17          Sec. 161.203.  PERMISSIVE SUPPLIER'S LICENSE; FEE.  (a)  A
57-18    person who wants to collect the tax imposed by this chapter as a
57-19    supplier and who meets the definition of a permissive supplier may
57-20    obtain a permissive supplier's license.
57-21          (b)  Application for or possession of a permissive supplier's
57-22    license does not by itself subject the applicant or license holder
57-23    to the jurisdiction of this state for a purpose other than
57-24    administration and enforcement of this chapter.
57-25          (c)  The fee for a permissive supplier's license is $250.
57-26          Sec. 161.204.  TERMINAL OPERATOR'S LICENSE; FEE.  (a)  A
57-27    person, other than a supplier licensed under Section 161.202, who
 58-1    wants to be engaged in business in this state as a terminal
 58-2    operator must obtain a terminal operator's license for each
 58-3    terminal site.
 58-4          (b)  The fee for a terminal operator's license is $100.
 58-5          Sec. 161.205.   EXPORTER'S LICENSE; FEE.  (a)  The
 58-6    comptroller may require a person to obtain an exporter's license if
 58-7    the person  exports products to another state without first paying
 58-8    that destination state's motor fuel tax to the supplier.
 58-9          (b)  The fee for an exporter's license is $250.
58-10          Sec. 161.206.  TRANSPORTER'S LICENSE; FEE.  (a)  A person who
58-11    is not licensed as a supplier or as an aviation fuel dealer must
58-12    obtain a transporter's license before transporting taxable motor
58-13    fuel, whether from a point outside this state to a point inside
58-14    this state or from a point inside this state to a point outside
58-15    this state, regardless of whether the person is engaged for hire in
58-16    interstate or intrastate commerce.
58-17          (b)  Leased vehicles must be registered to transport motor
58-18    fuel within the state in the same manner as owned vehicles.
58-19          (c)  The fee for a transporter's license is $100.
58-20          Sec. 161.207.  OCCASIONAL IMPORTER'S LICENSE (TRIP LICENSE)
58-21    OR BONDED IMPORTER'S LICENSE; FEES.  (a)  A person  shall apply for
58-22    and obtain an occasional importer's license or a bonded importer's
58-23    license, at the discretion of the applicant, if:
58-24                (1)  the person wants to cause taxable motor fuel to be
58-25    delivered into this state on the person's behalf, for the person's
58-26    own account, or for resale to a purchaser in this state;
58-27                (2)  the motor fuel is delivered from another state in
 59-1    a fuel transport truck or in a pipeline or barge shipment into
 59-2    storage facilities that are not a qualified terminal; and
 59-3                (3)  the person has not entered into an agreement to
 59-4    prepay this state's taxable motor fuel tax to the supplier or
 59-5    permissive supplier with respect to the imports.
 59-6          (b)  This section does not apply to a person who:
 59-7                (1)  exclusively imports taxable motor fuel that is
 59-8    exempted because it has been dyed; or
 59-9                (2)  imports nonexempt taxable motor fuel:
59-10                      (A)  that is subject to one or more tax
59-11    precollection agreements with suppliers under Section 161.056; and
59-12                      (B)  for which the prior collection of the motor
59-13    fuel tax by the supplier is expressly evidenced on the
59-14    terminal-issued shipping paper provided under Section 161.301.
59-15          (c)  A person described by Subsection (a)  shall obtain:
59-16                (1)  an occasional importer's license for the fee of
59-17    $500 that allows for a maximum of 10 trips each year; or
59-18                (2)  a bonded importer's license for the fee of $2,000,
59-19    subject to the bonding requirements of Section 161.216(b).
59-20          (d)  A person required to obtain a license under this section
59-21    shall:
59-22                (1)  obtain, not later than 24 hours before entering
59-23    this state, an import verification number from the comptroller for
59-24    each separate import into this state; and
59-25                (2)  display the import verification number on the
59-26    terminal-issued shipping papers required by Section 161.301.
59-27          (e)  An importer's license issued under this section must be
 60-1    specific to each state that is the source of supply.
 60-2          Sec. 161.208.  TANK WAGON OPERATOR-IMPORTER LICENSE; FEE.
 60-3    (a) A  person must obtain a tank wagon operator-importer license
 60-4    from the comptroller before the person imports motor fuel by tank
 60-5    wagon if the destination of that tank wagon is within 25 miles of a
 60-6    border of this state.
 60-7          (b)  Registration as a tank wagon operator-importer does not
 60-8    constitute authorization to acquire nonexempt motor fuel free of
 60-9    the tax imposed by this chapter at a terminal either in or outside
60-10    this state for direct delivery to a location in this state.
60-11          (c)  A person who possesses a valid importer's license may
60-12    act as a tank wagon operator-importer without issuance of a
60-13    separate license if the importer also operates one or more bulk
60-14    plants outside this state.
60-15          (d)  A person who operates a tank wagon that delivers
60-16    products into this state must also obtain an importer's license
60-17    under Section 161.207.
60-18          (e)  The fee for a tank wagon operator-importer license is
60-19    $150.
60-20          Sec. 161.209.  FUEL VENDOR'S LICENSE; FEE.  (a)  A person who
60-21    wants to engage in the business of selling taxable motor fuel at
60-22    wholesale or retail or  in storing or distributing taxable motor
60-23    fuel for resale within this state must obtain a fuel vendor's
60-24    license.
60-25          (b)  A fuel vendor shall maintain detailed records of all
60-26    purchases and sales at all locations in this state until the third
60-27    anniversary of the date  of the transaction.  All fuel vendor
 61-1    records must be maintained in English and Arabic numerals or in a
 61-2    manner acceptable to electronic formats.
 61-3          (c)  A fuel vendor shall make an annual report of taxable
 61-4    gallons sold at retail in accordance with Section 161.261.
 61-5          (d)  The comptroller may exempt from the requirements of
 61-6    Subsection (a)  a person who possesses a valid supplier's, terminal
 61-7    operator's, transporter's, importer's, tank wagon
 61-8    operator-importer, or exporter's license.
 61-9          (e)  The fee for a fuel vendor's license is $50.
61-10          Sec. 161.210.  AVIATION FUEL DEALER'S LICENSE; FEE.  (a)  A
61-11    person who wants to engage in business in this state as a dealer,
61-12    wholesaler, vendor, or transporter of aviation fuels or who stores
61-13    those fuels shall obtain an aviation fuel dealer's license for each
61-14    business site.
61-15          (b)  An aviation fuel dealer's license authorizes a person to
61-16    deliver gasoline or diesel fuel exclusively into the fuel supply
61-17    tanks of aircraft or aircraft servicing equipment.  The holder of
61-18    an aviation fuel dealer's license may sell or deliver diesel fuel
61-19    to another aviation fuel dealer who will deliver the diesel fuel
61-20    exclusively into the fuel supply tanks of aircraft or aircraft
61-21    servicing equipment.  The holder of an aviation fuel dealer's
61-22    license may not act as a supplier of gasoline or diesel fuel other
61-23    than as allowed by this section.
61-24          (c)  The fee for an aviation fuel dealer's license is $50.
61-25          Sec. 161.211.  MISCELLANEOUS FUEL TAX LICENSE; FEE.  Each
61-26    person who is liable for the tax imposed by this chapter but is not
61-27    licensed under Sections 161.202-161.210 shall obtain a
 62-1    miscellaneous fuel tax license.  There is no fee for this license.
 62-2          Sec. 161.212.  APPLICATION FOR LICENSE.  (a)  To obtain a
 62-3    license, an applicant must file an application with the comptroller
 62-4    on a form prescribed by the comptroller that requires information
 62-5    relating to:
 62-6                (1)  the name under which the applicant transacts or
 62-7    intends to transact business;
 62-8                (2)  the applicant's principal office, residence, or
 62-9    place of business in this state;
62-10                (3)  if the applicant is not an individual, the name of
62-11    each principal officer or partner and the office and street number
62-12    of each individual; and
62-13                (4)  other information required by the comptroller.
62-14          (b)  A person may not apply for a license as a refiner,
62-15    supplier, terminal operator, importer, exporter, blender, or
62-16    transporter unless the person:
62-17                (1)  is incorporated in this state or authorized to
62-18    transact business in this state, if the person is a corporation;
62-19                (2)  is organized in this state or authorized to
62-20    transact business in this state, if the person is a limited
62-21    liability company;
62-22                (3)  is formed in this state or authorized to transact
62-23    business in this state, if the person is a limited partnership; or
62-24                (4)  designates an agent for service of process and
62-25    gives the agent's name and address, if the person is an individual
62-26    or general partnership.
62-27          (c)  A person may not apply for a license as a refiner,
 63-1    supplier, permissive supplier, or terminal operator  unless the
 63-2    person has a federal certificate of registry that is issued under
 63-3    Section 4101, Internal Revenue Code of 1986, as amended, that
 63-4    authorizes the person to enter into federal tax-free transactions
 63-5    in taxable motor fuel in the terminal transfer system.  The
 63-6    applicant must include the registration number of the certificate
 63-7    on the license application.
 63-8          (d)  A person applying for a license as an importer who has a
 63-9    federal certificate of registry that is issued under Section 4101,
63-10    Internal Revenue Code of 1986, as amended, must include the
63-11    registration number of the certificate on the license application.
63-12          (e)  A person applying for a license as an importer must
63-13    include on the application a list of each state from which the
63-14    applicant intends to import motor fuel.  If a listed state requires
63-15    a license, the person must be licensed in that state to obtain a
63-16    license in this state.
63-17          (f)  A person applying for a license as an exporter must
63-18    include on the application a list of each state to which the
63-19    applicant intends to export motor fuel that is received in this
63-20    state by a transfer outside the terminal transfer system.  If a
63-21    listed state requires a license, the person must be licensed in
63-22    that state to obtain a license in this state.
63-23          Sec. 161.213.  INVESTIGATION OF APPLICANT FOR LICENSE.  The
63-24    comptroller shall investigate each applicant for a license under
63-25    this chapter.  The comptroller may not issue a license to a person
63-26    if the comptroller determines that:
63-27                (1)  the applicant is not the real party in interest;
 64-1                (2)  the license of the real party in interest has been
 64-2    canceled for cause;
 64-3                (3)  the applicant has a prior conviction for motor
 64-4    fuel tax evasion;
 64-5                (4)  with respect to an exporter's license the
 64-6    applicant is not licensed in the intended specific state of
 64-7    destination; or
 64-8                (5)  there is another reasonable cause for not issuing
 64-9    the license.
64-10          Sec. 161.214.  REQUIREMENT FOR FINANCIAL STATEMENTS.  (a)
64-11    The comptroller may require a license holder or an applicant for a
64-12    license to provide current financial statements that have been
64-13    verified by a certified public accountant.
64-14          (b)  The comptroller may make an independent inquiry into the
64-15    financial condition of the applicant and is not required to accept
64-16    as accurate financial statements that have not been certified or
64-17    independently audited.
64-18          (c)  If the comptroller determines that a license holder's
64-19    financial condition warrants an increase in a bond or cash deposit,
64-20    the comptroller may require the license holder to provide the
64-21    increased bond or cash deposit.
64-22          Sec. 161.215.  FINGERPRINTING REQUIREMENT; EXEMPTIONS.  (a)
64-23    The comptroller may require an applicant for a license, including a
64-24    corporate officer, partner, or individual, to submit the person's
64-25    fingerprints to the comptroller when applying for the license.
64-26          (b)  The following people are exempt from the requirement
64-27    prescribed by Subsection (a):
 65-1                (1)  an officer of a publicly held corporation or of a
 65-2    subsidiary of such a corporation; and
 65-3                (2)  an applicant for an  importer's license who
 65-4    continuously possessed a license or permit issued under Chapter
 65-5    153, as it existed on December 31, 2000, from at least January 1,
 65-6    1995.
 65-7          (c)  A person required to submit fingerprints must submit the
 65-8    fingerprints on forms prescribed by the comptroller.  The
 65-9    comptroller may forward all fingerprints submitted by license
65-10    applicants to the Federal Bureau of Investigation or any other
65-11    agency for processing.  The receiving agency shall issue the
65-12    agency's  findings to the comptroller.  The comptroller shall use
65-13    the license application fee to pay the cost of the investigation.
65-14          (d)  The comptroller or another state agency may maintain a
65-15    file of fingerprints.
65-16          Sec. 161.216.  APPLICATION MUST BE FILED WITH SURETY BOND OR
65-17    CASH DEPOSIT.  (a)  Except as otherwise provided by this section,
65-18    concurrently with the filing of an application for a license under
65-19    this chapter, the comptroller shall require the applicant to file
65-20    with the comptroller a surety bond or cash deposit that:
65-21                (1)  is in an amount determined by the comptroller of
65-22    not less than $2,000, or not more than a three-month tax liability
65-23    for the applicant, as estimated by the comptroller; and
65-24                (2)  is conditioned on the keeping of records and the
65-25    making of full and complete reports and payments as required by
65-26    this chapter.
65-27          (b)  A supplier or bonded importer shall post a bond of not
 66-1    less than $2 million.  If a person is registered as a taxable fuel
 66-2    registrant under Section 4101, Internal Revenue Code of 1986, as
 66-3    amended, the comptroller may reduce the bond to not less than $1
 66-4    million.  A  person may show proof of financial responsibility
 66-5    instead of posting of bond.  Proof of a net worth of at least $5
 66-6    million constitutes evidence of financial responsibility in the
 66-7    absence of circumstances indicating to the comptroller that
 66-8    collection of the taxes from the applicant is at risk.
 66-9          (c)  If the applicant files a bond, the bond must:
66-10                (1)  name the applicant as the principal and this state
66-11    as the obliged;
66-12                (2)  be with a surety company approved by the
66-13    comptroller, which may be an affiliate in the business of assuring
66-14    the obligations; and
66-15                (3)  be in the form prescribed by the comptroller.
66-16          (d)  A person is exempt from the bonding requirements of this
66-17    section if the person is:
66-18                (1)  a fuel vendor licensed under Section 161.209 who
66-19    is not  required to be licensed under another section; or
66-20                (2)  a person who holds a miscellaneous fuel tax
66-21    license under Section 161.211.
66-22          Sec. 161.217.  REQUIREMENT FOR LICENSE HOLDER TO FILE NEW
66-23    BOND OR ADDITIONAL DEPOSIT.  (a)  The comptroller may require a
66-24    license holder to file a new bond with a satisfactory surety in the
66-25    same form and amount if:
66-26                (1)  the liability on the previous bond is discharged
66-27    or reduced by a judgment rendered or payment made or the amount of
 67-1    the bond otherwise becomes unsatisfactory; or
 67-2                (2)  in the opinion of the comptroller, a surety on the
 67-3    previous bond becomes insufficient.
 67-4          (b)  If the new bond is unsatisfactory, the comptroller shall
 67-5    cancel the person's license.  If the new bond is satisfactory, the
 67-6    comptroller shall release in writing the surety on the previous
 67-7    bond from liability accruing after the effective date of the new
 67-8    bond.
 67-9          (c)  If a license holder has a cash deposit with the
67-10    comptroller and the deposit is reduced by a judgment rendered or
67-11    payment made or the amount otherwise becomes insufficient, the
67-12    comptroller may require the license holder  to make a new deposit
67-13    equal to the amount of the insufficiency.
67-14          Sec. 161.218.  AMOUNT OF BOND OR DEPOSIT; CANCELLATION OF
67-15    LICENSE.  (a)  A license holder shall file a new bond or increase a
67-16    cash deposit if the comptroller:
67-17                (1)  determines that the amount of the existing bond or
67-18    cash deposit is insufficient to ensure payment to this state of the
67-19    tax and of any penalty and interest for which the license holder is
67-20    or may become liable; and
67-21                (2)  makes a written demand for the new bond or
67-22    increased deposit.
67-23          (b)  The comptroller shall allow the license holder at least
67-24    15 days to secure the increased bond or cash deposit.
67-25          (c)  The new bond or cash deposit must meet the requirements
67-26    prescribed by this chapter.
67-27          (d)  If the new bond or cash deposit required under this
 68-1    section is unsatisfactory, the comptroller shall cancel the
 68-2    person's license.
 68-3          Sec. 161.219.  ISSUANCE OF LICENSE.  If the applicant and
 68-4    bond are approved, the comptroller shall issue:
 68-5                (1)  a license for the applicant; and
 68-6                (2)  a number of copies equal to the number of places
 68-7    of business that the person has for which a license is required.
 68-8          Sec. 161.220.  RECORDS OF LICENSE HOLDERS IN THIS STATE.  (a)
 68-9    Not later than the 20th day of each month, the comptroller will
68-10    update the list of all motor fuel license holders in this state by
68-11    category.
68-12          (b)  The list must:
68-13                (1)  indicate changes from the previous month; and
68-14                (2)  include each purchaser who is eligible to share
68-15    the terminal administrative credit under Section 161.067.
68-16          (c)  The comptroller shall make the list available by mail if
68-17    requested.
68-18          (d)  A current and effective license or the list provided by
68-19    the comptroller is evidence of the validity of the license until
68-20    the comptroller notifies suppliers and bonded importers of a change
68-21    in the status of a license holder.
68-22          Sec. 161.221.  LICENSE IS NONTRANSFERABLE.  (a)  A license
68-23    may not be transferred to another person or to another place of
68-24    business.
68-25          (b)  For purposes of this section, a transfer means the
68-26    transfer of a majority interest in a business association, other
68-27    than a publicly held association, including a corporation,
 69-1    partnership, trust, joint venture, and any other business
 69-2    association, to another person.
 69-3          Sec. 161.222.  LICENSE MUST BE DISPLAYED AT PLACE OF
 69-4    BUSINESS.  Each license must be preserved and conspicuously
 69-5    displayed at the place of business for which it is issued.  The
 69-6    comptroller may waive this requirement for any class of license
 69-7    holder.
 69-8          Sec. 161.223.  SURRENDER OF LICENSE ON DISCONTINUANCE OR
 69-9    RELOCATION.  A license holder who discontinues conducting business
69-10    at a location or changes a business location shall immediately
69-11    surrender the license issued for the location to  the comptroller.
69-12          Sec. 161.224.  NOTICE THAT LICENSE HOLDER HAS DISCONTINUED,
69-13    SOLD, OR TRANSFERRED BUSINESS.  (a)  If a license holder
69-14    discontinues, sells, or transfers the person's business, the person
69-15    shall immediately notify the comptroller in writing of the
69-16    discontinuance, sale, or transfer.
69-17          (b)  In addition to the notice required by Subsection (a), a
69-18    person who discontinues, sells, or transfers the person's business
69-19    shall file a final report as required by Section 161.263.
69-20          (c)  The notice must give the date of discontinuance, sale,
69-21    or transfer and, for the sale or transfer of the business, the name
69-22    and address of the purchaser or transferee.
69-23          (d)  The license holder is liable for all taxes, interest,
69-24    and penalties that accrue or may be owing and for any criminal
69-25    liability for misuse of the license that occurs before issuance of
69-26    the notice.
69-27          Sec. 161.225.  CANCELLATION OR REFUSAL OF LICENSE.  (a)  The
 70-1    comptroller may cancel or refuse to issue or reissue a motor fuel
 70-2    license to a person who has violated or has failed to comply with
 70-3    this chapter or a rule of the comptroller.
 70-4          (b)  Before a license may be canceled or the issuance or
 70-5    reissuance refused, the comptroller shall give the license holder
 70-6    or license applicant not less than 10 days notice of a hearing at
 70-7    the office of the comptroller in Austin, or at a specified
 70-8    comptroller's field office, granting the license holder or
 70-9    applicant an opportunity to show cause before the comptroller why
70-10    the proposed action should not be taken.  If a license is in
70-11    effect, the license remains in force pending the determination of
70-12    the show-cause hearing.  Notice must be in writing and may be
70-13    mailed by registered or certified mail to the license holder or
70-14    applicant at the person's last known address or may be delivered by
70-15    the comptroller to the license holder or applicant.  Other notice
70-16    is not necessary. In case of service by mail of a notice required
70-17    by this chapter, the service is complete at the time of deposit in
70-18    the United States mail.
70-19          (c)  The comptroller may prescribe rules of procedure and
70-20    evidence for the hearings in accordance with Chapter 2001,
70-21    Government Code.
70-22          (d)  If, after the hearing or the opportunity to be heard,
70-23    the license is canceled or the issuance or reissuance refused by
70-24    the comptroller, all taxes that have been collected or that have
70-25    accrued, although the taxes are not then due and payable to the
70-26    state, except by the provisions of this chapter, shall become due
70-27    and payable concurrently with the notice of cancellation of the
 71-1    license.  The license holder shall within five days make a report
 71-2    covering the period not covered by a preceding report filed by the
 71-3    license holder and ending with the date of cancellation and shall
 71-4    remit and pay to the comptroller all taxes that have been collected
 71-5    and that have accrued from the sale, use, or distribution of motor
 71-6    fuel in this state.
 71-7          Sec. 161.226.  SUMMARY SUSPENSION OF LICENSE.  (a)  The
 71-8    comptroller may suspend a person's license without notice or a
 71-9    hearing if:
71-10                (1)  the person fails to comply with this chapter or a
71-11    rule adopted under this chapter; or
71-12                (2)  the person's continued operation constitutes an
71-13    immediate and substantial threat to the collection of taxes imposed
71-14    by this chapter, and the threat is attributable to the person's
71-15    operation.
71-16          (b)  If the comptroller summarily suspends a person's
71-17    license, proceedings for a preliminary hearing before the
71-18    comptroller or the comptroller's representative must be initiated
71-19    simultaneously with the summary suspension.  The preliminary
71-20    hearing shall be set for a date not later than the 10th day after
71-21    the date of the summary suspension, unless the parties agree to a
71-22    later date.
71-23          (c)  At the preliminary hearing, the license holder must show
71-24    cause why the license should not remain suspended pending a final
71-25    hearing on suspension or revocation.
71-26          (d)  To initiate a proceeding to summarily suspend a person's
71-27    license, the comptroller shall serve notice on the license holder
 72-1    informing that person of the right to a preliminary hearing before
 72-2    the comptroller or the comptroller's representative and of the time
 72-3    and place of the preliminary hearing.  The notice must be
 72-4    personally served on the license holder, or an officer, employee,
 72-5    or agent of the license holder, or sent by certified or registered
 72-6    mail, return receipt requested, to the license holder's mailing
 72-7    address as it appears on the comptroller's records.  The notice
 72-8    must state the alleged violations that constitute the grounds for
 72-9    summary suspension. The suspension is effective when the notice is
72-10    served.  If the notice is served in person, the license holder
72-11    shall immediately surrender the license to the comptroller or to
72-12    the comptroller's representative.  If notice is served by mail, the
72-13    license holder shall immediately return the license to the
72-14    comptroller.
72-15          (e)  Chapter 2001, Government Code, does not apply to a
72-16    summary suspension under this section.
72-17          Sec. 161.227.  ENFORCEMENT OF LICENSE CANCELLATION,
72-18    SUSPENSION, OR REFUSAL.  (a)  The comptroller may examine any
72-19    business books and records of a person whose license has been
72-20    canceled or suspended on the person's failure to file a report
72-21    required by this chapter or to remit all taxes due.  The
72-22    comptroller shall issue an audit deficiency determination of the
72-23    amount of delinquent taxes, penalties, and interest, containing a
72-24    demand for payment. The deficiency determination shall provide that
72-25    if neither a payment is made nor a request for a redetermination is
72-26    filed within 30 days after the date of the notice of the
72-27    deficiency, the amount of the determination becomes due and
 73-1    payable.  If the amount is not paid before the 45th day after the
 73-2    date of service of the notice of deficiency determination, the bond
 73-3    or other security required under this chapter is forfeited.  The
 73-4    demand for payment shall be addressed to the person who owes the
 73-5    delinquency and to any surety of that person.
 73-6          (b)  If the forfeiture of the bond or other security does not
 73-7    satisfy the delinquency, the comptroller shall certify the taxes,
 73-8    penalty, and interest delinquent to the attorney general, who may
 73-9    file suit against the person, the person's surety, or both, to
73-10    collect the amount due.  After being given notice of an order of
73-11    cancellation or summary suspension, it shall be unlawful for any
73-12    person to continue to operate the person's business under a
73-13    canceled or suspended license.  The attorney general may file suit
73-14    to enjoin the person from continuing to operate under the person's
73-15    license until the comptroller reissues the license.
73-16          (c)  An appeal from an order of the comptroller canceling or
73-17    suspending or refusing the issuance or reissuance of a license may
73-18    be taken to a district court of Travis County by the aggrieved
73-19    license holder.  The trial shall be de novo under the same rules as
73-20    ordinary civil suits, except that:
73-21                (1)  an appeal must be perfected and filed not later
73-22    than the 30th day after the effective date of the order, decision,
73-23    or ruling of the comptroller;
73-24                (2)  the trial of the case shall begin not later than
73-25    the 10th day after its filing; and
73-26                (3)  the order, decision, or ruling of the comptroller
73-27    may be suspended or modified by the court pending a  trial on the
 74-1    merits.
 74-2             (Sections 161.228-161.250 reserved for expansion
 74-3                           SUBCHAPTER G. REPORTS
 74-4          Sec. 161.251.  CONTENT AND FORMAT OF REQUIRED INFORMATION.
 74-5    (a)  A report required by this chapter must conform to the content
 74-6    approved by the Federation of Tax Administrators and must
 74-7    specifically indicate the federal employer identification number of
 74-8    each handler of a load of fuel, including a common or private
 74-9    carrier, broker, or contractor.
74-10          (b)  The comptroller may adopt rules prescribing reporting
74-11    requirements for a person engaged in more than one activity for
74-12    which a license is required.  The comptroller shall ensure that
74-13    each report is as simple and standardized as possible and requires
74-14    the minimum amount of information necessary for the comptroller's
74-15    compliance and enforcement activities.
74-16          (c)  Except as otherwise provided by this chapter, each
74-17    person who holds a license under this chapter shall file a monthly
74-18    report with the comptroller on or before the 25th day of each month
74-19    that covers the tax liabilities that accrued during the preceding
74-20    calendar month.
74-21          (d)  In addition to the monthly report, each person who holds
74-22    a license under this chapter shall file an annual report with the
74-23    comptroller on or before January 25 that covers the tax liabilities
74-24    that accrued in the preceding calendar year.
74-25          (e)  A person who holds a license as a supplier, permissive
74-26    supplier, or  bonded importer must submit each report required by
74-27    this chapter in an electronic format that conforms to the standards
 75-1    approved by the Federation of Tax Administrators for electronic
 75-2    data interchange.
 75-3          (f)  On or after January 1, 2004, the comptroller may require
 75-4    other license holders to submit records electronically or by
 75-5    electronic data interchange if the comptroller determines that the
 75-6    requirement is in the best interests of this state.  The
 75-7    comptroller shall allow a person who is required to file in
 75-8    accordance with this subsection to take a suitable tax credit to
 75-9    accommodate the costs of installing equipment necessary to comply.
75-10          (g)  The comptroller may waive a reporting requirement if
75-11    substantially similar data is readily available to this state from
75-12    an electronic federal excise tax report.
75-13          Sec. 161.252.  INVENTORY RECORDS.  A license holder shall
75-14    maintain inventory records as required by the comptroller for
75-15    purposes of reporting and determining tax liability under this
75-16    chapter.
75-17          Sec. 161.253.  VERIFIED STATEMENT BY SUPPLIER; REPORTING OF
75-18    INFORMATION.  (a)  A supplier shall include in a monthly report
75-19    required by this subchapter the following information relating to
75-20    billed gallons of taxable motor fuel:
75-21                (1)  each shipment of taxable motor fuel removed from a
75-22    terminal in this state on  which the tax imposed by this chapter
75-23    previously was paid or accrued for direct delivery outside this
75-24    state by the exporter;
75-25                (2)  removal of gallons of diesel fuel or heating oil
75-26    from a terminal to which dye has been added by the reporting
75-27    terminal to indicate the tax-exempt status of the fuel in
 76-1    accordance with Internal Revenue Service and United States
 76-2    Environmental Protection Agency dyeing standards;
 76-3                (3)  removal of gallons of motor fuel, tax-exempt in
 76-4    this state, from terminals in this state by the reporting supplier
 76-5    for export from this state by that supplier and as to which the
 76-6    proper motor fuel tax for the destination state has been collected
 76-7    or accrued by the reporting supplier at the time of removal from
 76-8    the terminal, sorted by state of destination;
 76-9                (4)  removal of gallons of motor fuel, tax-exempt in
76-10    the destination state, from terminals in this state by the
76-11    reporting supplier for export by the person, sorted by destination
76-12    state, under a claim of destination state tax exemption for an
76-13    exempt use recognized by the comptroller under Section 161.161;
76-14                (5)  removal of gallons of motor fuel, tax-exempt in
76-15    this state, from terminals in this state by the reporting supplier
76-16    for sale to exporters and as to which the proper motor fuel tax for
76-17    the destination state has been collected or accrued by the
76-18    reporting supplier at the time of removal from the terminal, sorted
76-19    by state of destination;
76-20                (6)  removal of gallons of motor fuel from terminals in
76-21    this state for sale by the reporting supplier directly to the
76-22    federal government;
76-23                (7)  removal of gallons of motor fuel from terminals in
76-24    this state for sale by the reporting supplier directly to end users
76-25    other than the federal government for any other exempt use for
76-26    which the end users have properly assigned refund claims to the
76-27    ultimate vendor and each supplier in the chain, including the
 77-1    reporting supplier;
 77-2                (8)  total removals in this state;
 77-3                (9)  removal of gallons of motor fuel from a terminal
 77-4    in another state by the reporting supplier, for tax-exempt sale to
 77-5    a licensed importer for import into this state by that licensed
 77-6    importer;
 77-7                (10)  removal of gallons of motor fuel from a terminal
 77-8    in another state by the reporting supplier for import other than by
 77-9    bulk transfer by that supplier into this state, or for sale by the
77-10    reporting supplier to a person for import into this state by that
77-11    person, and in either case, as to which this state's tax was
77-12    accrued by the reporting supplier at the time of removal from the
77-13    out-of-state terminal;
77-14                (11)  removal of gallons of diesel fuel or heating oil
77-15    from a terminal in another state by the reporting supplier for
77-16    import or for sale for import into this state and as to which dye
77-17    has been added in accordance with Internal Revenue Service and
77-18    United States Environmental Protection Agency dyeing standards;
77-19                (12)  total removals from out-of-state terminals with
77-20    this state as the destination state;
77-21                (13)  corrections made by the supplier under Section
77-22    161.306 for changes in the destination state that affect the
77-23    supplier's or a customer's tax liability to this state;
77-24                (14)  gallons removed by the supplier from a terminal
77-25    in or outside this state and sold to another supplier for resale to
77-26    an end user for an exempt purpose and as to which a refund claim
77-27    has been assigned by all parties to the supplier; and
 78-1                (15)  other information that the comptroller determines
 78-2    is reasonably required to determine tax liability under this
 78-3    chapter.
 78-4          (b)  The supplier must report the information required by
 78-5    Subsection (a) in the aggregate and must identify whether the
 78-6    billed gallons are net or gross.
 78-7          (c)  A licensed supplier or permissive supplier shall
 78-8    separately include  as part of the report required by this section
 78-9    information that discloses and identifies any removal and sale, as
78-10    shown by the terminal-issued shipping paper, from the bulk transfer
78-11    system or terminal system in another state by that supplier to a
78-12    person other than a licensed supplier, permissive supplier, or
78-13    importer, of gallons of taxable motor fuel destined for this state
78-14    on which the tax imposed by this chapter has not been collected or
78-15    accrued by the supplier on removal.  This subsection does not apply
78-16    to  diesel fuel dyed in accordance with Internal Revenue Service
78-17    and United States Environmental Protection Agency dyeing standards.
78-18          (d)  A supplier shall separately identify each tax-free sale
78-19    of K-1 kerosene, other than dyed diesel fuel, in accordance with
78-20    reporting requirements established by the comptroller.
78-21          Sec. 161.254.  VERIFIED STATEMENT OF LICENSED OCCASIONAL
78-22    IMPORTER.  (a)  A licensed occasional importer shall include in a
78-23    monthly report required under this subchapter information relating
78-24    to:
78-25                (1)  taxable gallons tax prepaid to a supplier on
78-26    removal from an out-of-state terminal;
78-27                (2)  taxable gallons subject to the three-day payment
 79-1    rule prescribed by Section 161.055, sorted by source state, by
 79-2    supplier, by terminal, or by bulk plant location; and
 79-3                (3)  other information relating to the source and means
 79-4    of transportation of nonexempt taxable motor fuel as the
 79-5    comptroller may require on forms prescribed by the comptroller.
 79-6          (b)  The comptroller may waive the reporting requirement
 79-7    prescribed by this section if the comptroller determines that one
 79-8    or more states bordering this state have adopted and implemented
 79-9    reciprocal terminal report requirements adequate to assure the
79-10    comptroller that the comptroller receives complete information
79-11    relating to motor fuel removed by and on behalf of suppliers from
79-12    terminals in border states that is destined for this state.
79-13          Sec. 161.255.  VERIFIED STATEMENT OF LICENSED BONDED
79-14    IMPORTER.  (a)  A licensed bonded importer shall include in a
79-15    monthly report required under this subchapter information relating
79-16    to:
79-17                (1)  taxable gallons tax prepaid to a supplier on
79-18    removal from an out-of-state terminal; and
79-19                (2)  taxable gallons subject to tax remittance by the
79-20    bonded importer under Section 161.055, sorted by source state, by
79-21    supplier, by terminal, or by bulk plant location.
79-22          (b)  The comptroller may waive a reporting requirement
79-23    prescribed by this section if the comptroller determines that one
79-24    or more states bordering this state have adopted and implemented
79-25    reciprocal terminal report requirements adequate to assure the
79-26    comptroller that the comptroller receives complete information
79-27    relating to motor fuel removed by and on behalf of suppliers from
 80-1    terminals in border states that is destined for this state.
 80-2          Sec. 161.256.  TERMINAL OPERATOR STATEMENT OF OPERATIONS;
 80-3    ANNUAL REPORT.  (a)  A person operating a terminal in this state
 80-4    shall include in a monthly report required under this subchapter
 80-5    the following information for each terminal location in this state:
 80-6                (1)  the terminal code assigned by the Internal Revenue
 80-7    Service;
 80-8                (2)  the total inventory at the terminal operated by
 80-9    the terminal operator;
80-10                (3)  detailed schedules of receipts by shipment,
80-11    including:
80-12                      (A)  carrier name or alpha code;
80-13                      (B)  carrier federal employer identification
80-14    number;
80-15                      (C)  mode of transportation;
80-16                      (D)  date received;
80-17                      (E)  document number;
80-18                      (F)  net gallons received; and
80-19                      (G)  product type; and
80-20                (4)  detailed schedules of removals by shipment,
80-21    including:
80-22                      (A)  carrier name or alpha code;
80-23                      (B)  carrier federal employer identification
80-24    number;
80-25                      (C)  mode of transportation;
80-26                      (D)  destination state;
80-27                      (E)  supplier federal employer identification
 81-1    number;
 81-2                      (F)  date removed from terminal;
 81-3                      (G)  document number;
 81-4                      (H)  net gallons; and
 81-5                      (I)  gross gallons.
 81-6          (b)  The information must be transferred to this state
 81-7    electronically.  If sufficient and reliable information can be
 81-8    obtained from Internal Revenue Service databases such as the Excise
 81-9    Files Information Retrieval System or Excise Summary Terminal
81-10    Activity Reporting System, the comptroller may waive requiring a
81-11    separate electronic submission to this state.
81-12          (c)  If the Internal Revenue Service provides a common system
81-13    of assigning carriers alphanumeric codes instead of names, the
81-14    operator shall provide the appropriate codes instead of carrier
81-15    names.
81-16          (d)  A person operating a terminal in this state shall
81-17    include in an annual report required under this subchapter
81-18    information relating to:
81-19                (1)  the net amount of monthly temperature adjusted,
81-20    net gallons, gains or losses;
81-21                (2)  total net gallons removed from the terminal in
81-22    bulk and across the rack during the calendar year;
81-23                (3)  total net gallons removed across the terminal rack
81-24    during the calendar year and other information as the comptroller
81-25    considers necessary to determine the tax liability of the terminal
81-26    operator under this chapter; and
81-27                (4)  the amount of tax due.
 82-1          Sec. 161.257.  TERMINAL REPORTS REGARDING SOURCE STATE.  (a)
 82-2    If a source state does not require a terminal report that provides
 82-3    information substantially similar to the information required by
 82-4    Section 161.256, a terminal operator subject to the jurisdiction of
 82-5    this state who operates a terminal outside this state shall provide
 82-6    to the comptroller a report that includes information relating to
 82-7    gallons removed from the source state as to which the operator
 82-8    issued a shipping paper indicating this state as the destination
 82-9    state.
82-10          (b)  The report must include the information required by
82-11    Section 161.256.
82-12          (c)  This section does not apply if substantially similar
82-13    information is readily available to this state from a federal
82-14    terminal report or from the source state.
82-15          Sec. 161.258.  AVIATION FUEL DEALER MONTHLY REPORTS.  (a)  An
82-16    aviation fuel dealer shall keep a record showing the number of
82-17    gallons of:
82-18                (1)  all aviation fuel inventories on hand at the first
82-19    of each month;
82-20                (2)  all aviation fuel purchased or received, showing
82-21    the name of the seller and date of each purchase or receipt;
82-22                (3)  all aviation fuel for use in aircraft or aircraft
82-23    servicing equipment; and
82-24                (4)  all aviation fuel lost by fire or other accident.
82-25          (b)  The records of an aviation fuel dealer made under
82-26    Subsection (a) must show:
82-27                (1)  the name of the purchaser or end user of the fuel;
 83-1                (2)  the date of the sale or use of the fuel; and
 83-2                (3)  the registration or "N" number of the airplane or
 83-3    a description or number of the aircraft or aircraft servicing
 83-4    equipment in which the fuel is used.
 83-5          (c)  The records must be kept for at least four years.
 83-6          Sec. 161.259.  LICENSED EXPORTER REPORTS.  (a)  A person
 83-7    licensed as an exporter shall include in a monthly report required
 83-8    under this subchapter the following information relating to  the
 83-9    amount of taxable motor fuel exported from this state, other than
83-10    diesel fuel dyed in accordance with the Internal Revenue Code of
83-11    1986, as amended:
83-12                (1)  all shipments of taxable motor fuel removed from a
83-13    terminal in this state for direct delivery outside of this state by
83-14    the exporter and as to which the tax imposed by this chapter
83-15    previously was paid or accrued;
83-16                (2)  all shipments of taxable motor fuel acquired free
83-17    of this state's motor fuel tax at a terminal in this state for
83-18    direct delivery outside of this state, but as to which the
83-19    destination state's motor fuel tax was paid or accrued to the
83-20    supplier at the time of removal from the terminal;
83-21                (3)  gallons delivered to taxing jurisdictions outside
83-22    this state out of bulk plant storage and whether by transport truck
83-23    or tank wagon;
83-24                (4)  the name and federal employer identification
83-25    number of the person receiving the exported taxable motor fuel from
83-26    the exporter;
83-27                (5)  the date of the shipments;
 84-1                (6)  the carrier name or alpha code and carrier federal
 84-2    employer identification number; and
 84-3                (7)  the person who is responsible for paying taxes.
 84-4          (b)  The comptroller may waive the reporting requirement
 84-5    prescribed by this section if the comptroller determines that the
 84-6    report is not necessary to administer this chapter.
 84-7          Sec. 161.260.  PERSONS PURCHASING GALLONS TAX-EXEMPT FOR
 84-8    RESALE TO GOVERNMENTAL ENTITIES MUST FILE REPORT.  A person who
 84-9    purchases gallons tax-exempt under Section 161.163 for resale to
84-10    governmental entities exempted under Section 161.161 shall include
84-11    in a monthly report required under this subchapter:
84-12                (1)  the total volume of net gallons acquired from
84-13    authorized suppliers tax-exempt;
84-14                (2)  information identifying each authorized supplier;
84-15                (3)  a detailed listing of the bulk deliveries to each
84-16    tax-exempt person, segregated by authorization code;
84-17                (4)  dates of deliveries;
84-18                (5)  volume delivered;
84-19                (6)  the amount by which tax-exempt gallons sold exceed
84-20    purchases or the amount by which tax-exempt purchases exceed sales;
84-21                (7)  the amount of any penalty required under Section
84-22    161.163(i);
84-23                (8)  a sworn statement by the vendor as to the accuracy
84-24    of the information contained in the report; and
84-25                (9)  any other information the comptroller requires.
84-26          Sec. 161.261.  REPORTS BY FUEL VENDORS.  (a)  A fuel vendor
84-27    shall file a quarterly report that lists total gallons of motor
 85-1    fuel by fuel type sold by the vendor through a retail outlet
 85-2    accessible to the general public.  The vendor shall file the report
 85-3    on or before the 25th day of the first month after the end of a
 85-4    calendar quarter.
 85-5          (b)  A person who makes a sale of, or otherwise causes the
 85-6    transfer of ownership of, kerosene, blendstocks, or transmix shall
 85-7    file monthly with the comptroller a report in accordance with
 85-8    Section 161.251.   The vendor shall remit with the report any tax
 85-9    payable under this chapter.
85-10          (c)  In addition to the monthly report, a person described by
85-11    Subsection (b) shall keep a record of those sales or transfers for
85-12    at least three months in accordance with comptroller rules.
85-13          (d)  A person who makes a sale as a vendor and is not
85-14    required to report under this subchapter shall maintain on the
85-15    premises for three months invoices and shipping papers indicating
85-16    the amount and source of each load of fuel sold or transferred to
85-17    the vendor.  Each invoice must clearly state:
85-18                (1)  from whom the fuel was purchased or transferred;
85-19                (2)  the vendor's federal employer identification
85-20    number, name, and address;
85-21                (3)  the amount and type of fuel; and
85-22                (4)  the agent who is responsible for payment of taxes.
85-23          (e)  The vendor shall make the records required by Subsection
85-24    (d) available to the comptroller or to the comptroller's agent
85-25    during normal business hours without prior notification.
85-26          (f)  A person who makes a sale as a vendor shall retain for
85-27    four years purchase invoices for taxable motor fuels.  The invoices
 86-1    must clearly designate the amount of tax paid to this state as a
 86-2    separate line item that is described generally as a "Texas Motor
 86-3    Fuel Tax." If the vendor does not retain the invoices that relate
 86-4    to these disclosures, the fuel vendor is jointly liable for the tax
 86-5    imposed by this chapter and the comptroller may proceed against the
 86-6    fuel vendor to collect the tax.
 86-7          (g)  A person who makes a sale as a vendor shall retain for
 86-8    four years all terminal-issued shipping papers received from the
 86-9    transporter for every shipment of taxable motor fuel that is
86-10    delivered to that vendor's retail outlets.  The vendor shall keep
86-11    these documents at any location prescribed by comptroller rules.
86-12          Sec. 161.262.  RECORDS.  (a)  A person who sells or transfers
86-13    motor fuel shall keep for four years a complete record of all motor
86-14    fuel sold or delivered for taxable purposes. The record is open to
86-15    inspection at all times by the comptroller and the attorney
86-16    general.  The record must include shipping papers and invoices from
86-17    all transactions completed either  directly or through a broker or
86-18    contractor.
86-19          (b)  Each taxable sale or delivery of motor fuel, including a
86-20    delivery by an interstate trucker from bulk storage, shall be
86-21    covered by an invoice.  The invoice must be printed and include:
86-22                (1)  the preprinted or stamped name and address of the
86-23    licensed dealer or interstate trucker;
86-24                (2)  the date;
86-25                (3)  the number of gallons delivered;
86-26                (4)  the mileage recorded on the odometer;
86-27                (5)  the state and state highway license number;
 87-1                (6)  the signature of the driver of the motor vehicle;
 87-2    and
 87-3                (7)  the amount of tax paid or accounted for separately
 87-4    from the selling price.
 87-5          (c)  The invoice serves as a trip permit and  must be carried
 87-6    with the vehicle.
 87-7          Sec. 161.263.  FINAL REPORT AND PAYMENT BY LICENSE HOLDER.
 87-8    A license holder who discontinues, sells, or transfers the person's
 87-9    business or who has the person's license canceled, revoked, or
87-10    terminated by law under this chapter shall:
87-11                (1)  file a report as required by this chapter not
87-12    later than the 30th day after the event;
87-13                (2)  mark the report as a  "Final Report"; and
87-14                (3)  pay all motor fuel taxes and penalties that may be
87-15    due the state except as otherwise provided by law.
87-16             (Sections 161.264-161.300 reserved for expansion
87-17                    SUBCHAPTER H. SHIPPING REQUIREMENTS
87-18          Sec. 161.301.  MACHINE-PRINTED SHIPPING PAPERS; EXEMPTIONS.
87-19    (a)  A person operating a refinery, terminal, or bulk plant in this
87-20    state shall prepare and provide to the driver of every fuel
87-21    transportation vehicle that receives taxable motor fuel into the
87-22    vehicle storage tank at the facility an automated machine-printed
87-23    shipping paper that includes on its face:
87-24                (1)  the name and address of the terminal or bulk plant
87-25    from which the motor fuel was removed;
87-26                (2)  the name of the responsible taxpaying agent and
87-27    amount of tax paid;
 88-1                (3)  the date the motor fuel was removed;
 88-2                (4)  the actual gallons and net gallons of motor fuel
 88-3    removed;
 88-4                (5)  the destination state as represented to the
 88-5    terminal operator by the transporter, the shipper, or the shipper's
 88-6    agent;
 88-7                (6)  the federal employer identification number of the
 88-8    place of origin and destination;
 88-9                (7)  the type of motor fuel removed by the transporter;
88-10                (8)  the name and address of the position holder,
88-11    exporter, supplier, wholesaler, or other buyer of the motor fuel
88-12    removed by the transporter;
88-13                (9)  the name of the transporter removing the fuel and
88-14    the name of the driver operating the transport truck removing the
88-15    motor fuel;
88-16                (10)  any other information required by this
88-17    subchapter; and
88-18                (11)  any other information required by the comptroller
88-19    to enforce this chapter.
88-20          (b)  A terminal operator may manually prepare shipping papers
88-21    if, as a result of extraordinary and unforeseen circumstances,
88-22    including an act of God, the terminal operator is temporarily
88-23    unable to issue automated machine-generated shipping papers.
88-24    However, before manually preparing the papers, the terminal
88-25    operator shall provide notice to the comptroller by telephone and
88-26    obtain a service interruption authorization number.  The operator
88-27    shall add this number to the manually prepared papers before
 89-1    removal of an affected transport load from the terminal. The
 89-2    service interruption authorization number is valid for use by the
 89-3    terminal operator for not more than 24 hours.  If the interruption
 89-4    is not solved within the 24-hour period, the operator shall provide
 89-5    additional notices to the comptroller and the comptroller may issue
 89-6    additional interruption authorization numbers on explanation by the
 89-7    terminal operator that is satisfactory to the comptroller.
 89-8          (c)  This section does not apply to an operator of a bulk
 89-9    plant in this state that delivers taxable motor fuel into a tank
89-10    wagon for subsequent delivery to an end user in this state.
89-11          (d)  A terminal operator may load split loads of motor fuel
89-12    in which a portion is destined for sale or use in this state and a
89-13    portion is destined for sale or use in another state.  However, the
89-14    terminal operator shall document the split loads removed by issuing
89-15    shipping papers designating the destination state  for each portion
89-16    of the fuel.
89-17          (e)  Each terminal operator shall post a conspicuous notice,
89-18    proximally located to the point of receipt of shipping papers by
89-19    transport truck operators, that describes in clear and concise
89-20    terms the duties of the transport operator and retail dealer under
89-21    Section 161.302.  The comptroller by rule may establish the format
89-22    of the notice.
89-23          (f)  A person who violates this section commits an offense.
89-24    An offense under this section is a felony of the third degree.
89-25          Sec. 161.302.  REQUIREMENTS RELATING TO SHIPPING PAPERS.  (a)
89-26    A person may not transport taxable motor fuel in a fuel
89-27    transportation vehicle on the public highways of this state unless
 90-1    the person carries on board the vehicle the shipping paper issued
 90-2    by the terminal operator or the bulk plant operator of the facility
 90-3    at which the taxable motor fuel was obtained, regardless of whether
 90-4    the facility is inside or outside this state.  The shipping paper
 90-5    must state on its face the destination state  of the taxable motor
 90-6    fuel transported in the vehicle, as represented to the terminal
 90-7    operator when the fuel transportation vehicle was loaded or as
 90-8    otherwise prescribed by Subsection (c).
 90-9          (b)  A person described by Subsection (a)  shall produce and
90-10    allow inspection and duplication of the shipping paper on request
90-11    of a law enforcement officer or representative of the comptroller
90-12    at any time while transporting, holding, or off-loading the motor
90-13    fuel described in the shipping paper.
90-14          (c)  A person described by Subsection (a) may deliver taxable
90-15    motor fuel described in the shipping paper only to a point in the
90-16    destination state shown on the face of the document, unless the
90-17    person or the person's agent:
90-18                (1)  notifies the comptroller, before the earlier of
90-19    the time of removal from the state in which the shipment originated
90-20    or the time of initiation of delivery, that the person received
90-21    instructions after the shipping paper was issued to deliver the
90-22    motor fuel to a different destination state;
90-23                (2)  receives from the comptroller or the comptroller's
90-24    agent a diversion number authorizing the diversion; and
90-25                (3)  writes on the shipping paper the change in
90-26    destination state and the diversion number for the diversion.
90-27          (d)  A person described by Subsection (a)  shall:
 91-1                (1)  provide a copy of the shipping paper to the person
 91-2    who controls the facility to which the motor fuel is delivered; and
 91-3                (2)  comply with any other requirement or  condition
 91-4    the comptroller may require to enforce this chapter.
 91-5          Sec. 161.303.  TERMINAL-ISSUED SHIPPING PAPER PROVIDED ON
 91-6    DELIVERY OF SHIPMENT.  A person who transports taxable motor fuel
 91-7    in a motor vehicle on the public highways of this state shall
 91-8    provide the original or a copy of the terminal-issued shipping
 91-9    paper accompanying the shipment to the operator of the retail
91-10    outlet, bulk plant, or end user bulk storage facility to which
91-11    delivery of the shipment is made.
91-12          Sec. 161.304.  INSPECTION AND RETENTION OF TERMINAL-ISSUED
91-13    SHIPPING PAPER BY RECEIVER OF TAXABLE MOTOR FUEL.  (a)  An operator
91-14    of a taxable motor fuel retail outlet, bulk plant, or end user's
91-15    bulk storage facility shall receive and examine the terminal-issued
91-16    shipping paper received from the transporter for every shipment of
91-17    taxable motor fuel that is delivered to that location.
91-18          (b)  The person shall retain the shipping paper for at least
91-19    90 days after the date of delivery at the delivery location.  After
91-20    the 90th day, the person shall retain the shipping paper until the
91-21    fourth anniversary of the date of delivery at any location allowed
91-22    by comptroller rules.
91-23          Sec. 161.305.  ACCEPTANCE OF DELIVERY WITHOUT PROPER SHIPPING
91-24    PAPER PROHIBITED.  A retail dealer, bulk plant operator,
91-25    wholesaler, or bulk end user may not accept delivery of taxable
91-26    motor fuel into bulk storage facilities in this state if the
91-27    delivery is not accompanied by a shipping paper issued by the
 92-1    terminal operator or bulk plant operator that includes on its face:
 92-2                (1)  a statement that this state is the destination
 92-3    state of the taxable motor fuel or a diversion verification number
 92-4    under Section 161.306; and
 92-5                (2)  any other information required by Sections 161.309
 92-6    and 161.310.
 92-7          Sec. 161.306.  RELIEF IN CASE OF IMPROPERLY COMPLETED
 92-8    SHIPPING PAPER; NOTIFICATION OF DIVERSION OR CORRECTION;
 92-9    VERIFICATION NUMBER.  (a)  The comptroller shall provide for relief
92-10    in a situation in which a shipment of taxable motor fuel
92-11    legitimately is diverted from the represented destination state
92-12    after the shipping paper has been issued by the terminal operator
92-13    or in which the terminal operator failed to cause proper
92-14    information to be printed on the shipping paper.
92-15          (b)  The relief provisions must include a provision requiring
92-16    that the shipper, the transporter, or an agent of either person
92-17    notify the comptroller of the intended diversion or correction
92-18    before the diversion or correction occurs and that a diversion
92-19    number be assigned and manually added to the face of the
92-20    terminal-issued shipping paper.
92-21          (c)  The relief provisions must establish a protest procedure
92-22    that a person found to be in violation of Section 161.301 or
92-23    161.304 may use to establish a defense to a civil penalty imposed
92-24    under this chapter for violation of one or both of those sections.
92-25    The procedure must allow a person to establish, by substantial
92-26    evidence satisfactory to the comptroller, that the violation was
92-27    the result of an honest error made in good faith and that the
 93-1    person made a reasonable effort to properly account for and report
 93-2    fuel shipments and taxes.
 93-3          (d)  The comptroller shall make reasonable efforts to
 93-4    coordinate with neighboring states and the Federation of Tax
 93-5    Administrators for the operation of a common telephonic diversion
 93-6    or verification number assignment system, including its shared
 93-7    burdens.
 93-8          Sec. 161.307.  RELIANCE ON REPRESENTATIONS REGARDING
 93-9    DESTINATION, TAX-EXEMPT USE, OR SUPPLIER'S OBLIGATION TO COLLECT
93-10    TAX.  (a)  The supplier and the terminal operator may rely for all
93-11    purposes on the representation by the transporter, the shipper, or
93-12    the shipper's agent as to the shipper's intended destination state
93-13    and whether the use of the motor fuel is tax-exempt.
93-14          (b)  The shipper, the importer, the transporter, the
93-15    shipper's agent, and a purchaser are jointly liable for any tax
93-16    otherwise due to this state as a result of a diversion of the
93-17    taxable motor fuel from the represented destination state.  The
93-18    supplier and terminal operator are not liable.
93-19          (c)  A terminal operator may rely on the representation of a
93-20    licensed supplier with respect to the supplier's obligation to
93-21    collect tax and the related shipping paper representation to be
93-22    shown on the shipping paper as provided by Section 161.309(a).  The
93-23    terminal operator or supplier must report any improbable or
93-24    patently false destination state information to the comptroller.
93-25          Sec. 161.308.  UNLAWFUL SALE, USE, DELIVERY, OR STORAGE OF
93-26    TAXABLE MOTOR FUEL PROHIBITED; EXCEPTIONS.  (a)  Except as
93-27    expressly provided by Subsection (b), a person may not sell, use,
 94-1    deliver, or store in this state, or import for sale, use, delivery,
 94-2    or storage in this state, taxable motor fuel on which the tax
 94-3    imposed by this chapter has not previously been paid to or accrued
 94-4    by a licensed supplier or permissive supplier at the time of
 94-5    removal from a terminal or from a licensed importer.
 94-6          (b)  Subsection (a)  does not apply to:
 94-7                (1)  a supplier with respect to taxable motor fuel that
 94-8    was manufactured in this state or imported into this state in a
 94-9    bulk transfer and that is held within the bulk transfer system or
94-10    terminal system in this state;
94-11                (2)  an end user with respect to taxable motor fuel
94-12    placed in that person's vehicle supply tank outside this state;
94-13                (3)  any person with respect to dyed diesel fuel;
94-14                (4)  taxable motor fuel in the process of exportation
94-15    by a licensed exporter in accordance with the shipping papers
94-16    required by Section 161.302, and as to which the destination state
94-17    tax has been paid or accrued to the supplier, if a statement
94-18    complying with Section 161.309(a)(2) is shown on the shipping
94-19    papers;
94-20                (5)  gasoline used in aircraft;
94-21                (6)  fuel in the possession of an end user to whom a
94-22    refund has been issued;
94-23                (7)  federal government exempt fuel under Section
94-24    161.161; or
94-25                (8)  a licensed importer who complies with Section
94-26    161.310.
94-27          Sec. 161.309.  REQUIRED NOTATIONS ON TERMINAL-ISSUED SHIPPING
 95-1    PAPER; EXCEPTIONS.  (a)  Except as provided by Subsections (c) and
 95-2    (d), a person may not operate a transport truck that is engaged in
 95-3    the shipment of taxable motor fuel on the public highways of this
 95-4    state without having on board a terminal-issued shipping paper that
 95-5    has, in addition to the information otherwise required by this
 95-6    subchapter, a notation indicating, with respect to:
 95-7                (1)  diesel fuel acquired under a claim of exempt use,
 95-8    a statement indicating the fuel is "DYED DIESEL FUEL, NONTAXABLE
 95-9    USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate
95-10    portion of the load; or
95-11                (2)  any other taxable motor fuel, a notation
95-12    indicating  "(supplier name) responsible (state name) motor fuel
95-13    tax," or any other annotation acceptable to the comptroller that
95-14    otherwise indicates that the tax imposed by this chapter, or by the
95-15    destination state, has been paid to the supplier with respect to
95-16    the entire load or the appropriate portion of it.
95-17          (b)  A person violates Subsection (a)  if the person boards
95-18    the vehicle with a shipping paper that does not meet the
95-19    requirements prescribed by this section.
95-20          (c)  A licensed importer or a transporter acting on the
95-21    transporter's behalf is exempt from the application of Subsection
95-22    (a)(2) if the person is otherwise required to comply with Section
95-23    161.310.  However, the person is not exempt from the application of
95-24    this  section with respect to shipments sourced to a state that has
95-25    adopted reciprocal legislation that has been recognized by the
95-26    comptroller.
95-27          (d)  The comptroller may provide an advance notification
 96-1    procedure with respect to documentation for imported motor fuel for
 96-2    which the importer is unable to obtain terminal-issued shipping
 96-3    papers that comply with this section.
 96-4          Sec. 161.310.  REQUIREMENTS FOR LICENSED IMPORTER REGARDING
 96-5    FUEL THAT HAS NOT BEEN DYED AND ON WHICH TAX HAS NOT BEEN PAID OR
 96-6    ACCRUED BY THE SUPPLIER.  (a)  This section applies to taxable
 96-7    motor fuel destined for this state:
 96-8                (1)  that has not been dyed in accordance with the
 96-9    Internal Revenue Code of 1986, as amended, and the regulations
96-10    issued under the code; or
96-11                (2)  on which the tax has not been paid to or accrued
96-12    by the supplier at the time of removal from the out-of-state
96-13    terminal.
96-14          (b)  A licensed importer who acquires motor fuel described by
96-15    Subsection (a)  or the transporter operating on the importer's
96-16    behalf may not enter the motor fuel onto the public highways of
96-17    this state by loaded transport truck unless:
96-18                (1)  the importer or the transporter obtains an import
96-19    verification number from the comptroller at least 24 hours before
96-20    entering this state;
96-21                (2)  the import verification number is stated
96-22    prominently and indelibly on the face of each copy of the
96-23    terminal-issued shipping paper carried on board the transport
96-24    truck;
96-25                (3)  the terminal origin and the importer's name and
96-26    address are also stated prominently on the face of each copy of the
96-27    terminal-issued shipping paper;
 97-1                (4)  the terminal-issued shipping paper information
 97-2    otherwise required by this chapter is present; and
 97-3                (5)  all taxes imposed by this chapter with respect to
 97-4    previously requested import verification number activity on the
 97-5    account of the importer or the transporter have been remitted in a
 97-6    timely manner.
 97-7          (c)  A person who violates this section commits an offense.
 97-8    An offense under this section is a felony of the third degree.
 97-9          Sec. 161.311.  REQUIREMENTS FOR EXPORTING FUEL.  (a)  A
97-10    person may not export motor fuel from this state without first
97-11    paying the applicable destination state or this state's motor fuel
97-12    tax to the supplier unless the motor fuel complies with the export
97-13    exempt criteria prescribed by Section 161.161.  The person must
97-14    also  demonstrate proof of exporting in the form of a destination
97-15    state bill of lading.
97-16          (b)  A person who violates this section commits an offense.
97-17    An offense under this section is a felony of the third degree.
97-18          (c)  This section does not apply to an end user who exports
97-19    fuel in a vehicle fuel supply tank incident to interstate
97-20    transportation.
97-21          Sec. 161.312.  NOTICE REGARDING DYED DIESEL FUEL.  A notice
97-22    stating: "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR
97-23    TAXABLE USE" must be:
97-24                (1)  provided by the terminal operator to a person who
97-25    receives dyed diesel fuel at a terminal rack of that terminal
97-26    operator;
97-27                (2)  provided by a seller of dyed diesel fuel to a
 98-1    buyer if the diesel fuel is located outside the bulk transfer
 98-2    system or terminal system and is not sold from a retail pump or
 98-3    bulk plant that has the notice posted in accordance with
 98-4    Subdivision (3); and
 98-5                (3)  posted by a seller on a retail pump or bulk plant
 98-6    at which the person sells dyed diesel fuel for use by the person's
 98-7    buyer.
 98-8          Sec. 161.313.  DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
 98-9    PAPERS, BILLS OF LADING, AND INVOICES.  The form of notice required
98-10    by Sections 161.312(1) and (2) must be provided by the time of the
98-11    removal or sale and must appear on:
98-12                (1)  shipping papers;
98-13                (2)  bills of lading; and
98-14                (3)  invoices accompanying the sale or removal of the
98-15    dyed diesel fuel.
98-16          Sec. 161.314.  UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL
98-17    PROHIBITED.  (a)  A person may not sell or hold for sale dyed
98-18    diesel fuel for any use that the person knows or has reason to know
98-19    is not a tax-exempt use of the diesel fuel.
98-20          (b)  A person may not use or hold for use dyed diesel fuel
98-21    for a use other than a tax-exempt use if the person knows or has
98-22    reason to know that the diesel fuel is dyed.
98-23          Sec. 161.315.  ALTERATION OF DYE OR MARKER IN DYED DIESEL
98-24    FUEL PROHIBITED.  A person, with intent to evade tax, may not alter
98-25    or attempt to alter the strength or composition of a dye or marker
98-26    in dyed diesel fuel.
98-27          Sec. 161.316.  FUEL MUST MEET AMERICAN SOCIETY OF TESTING AND
 99-1    MATERIALS STANDARDS.  (a)  A person may not sell or purchase a
 99-2    product for general public highway use in the supply tank of a
 99-3    motor vehicle that does not meet the standards of the American
 99-4    Society of Testing and Materials as published in the annual Book of
 99-5    Standards and its supplements, unless the standards are amended or
 99-6    modified by the comptroller.
 99-7          (b)  The transporter and the transporter's agent and customer
 99-8    have the exclusive duty to dispose in the manner provided by
 99-9    federal and state law of any product that does not meet the
99-10    standards prescribed by this section.
99-11          (c)  A person who violates this section commits an offense.
99-12    An offense under this section is a felony of the third degree.
99-13          Sec. 161.317.  USE OF DYED DIESEL FUEL PROHIBITED;
99-14    EXCEPTIONS; PENALTIES.  (a)  A person may not operate a motor
99-15    vehicle on a public highway in this state with diesel fuel in the
99-16    fuel supply tank of the motor vehicle that contains dye.
99-17          (b)  This section does not apply to:
99-18                (1)  a person operating a motor vehicle who received
99-19    fuel into the vehicle's fuel supply tank in a jurisdiction outside
99-20    of this state that permits the introduction of dyed taxable diesel
99-21    fuel of that color and type into the fuel supply tanks of vehicles
99-22    operated on public highways; or
99-23                (2)  a use of dyed fuel that is legal under the
99-24    Internal Revenue Code of 1986, as amended, and any implementing
99-25    regulations, including uses in state and local government vehicles
99-26    and buses, unless that use is otherwise prohibited by this chapter.
99-27          (c)  A person who violates this section  commits an offense.
 100-1   An offense under this section is a felony of the third degree.
 100-2         Sec. 161.318.  DOING BUSINESS WITHOUT LICENSE; PENALTIES.
 100-3   (a)  A person may not engage in a business activity in this state
 100-4   for which a license is required by Subchapter F unless the person
 100-5   first obtains the license.
 100-6         (b)  A person who violates this section commits an offense.
 100-7   An offense under this section is a Class B misdemeanor.
 100-8         Sec. 161.319.  INVOICED SALES.  (a)  A person who sells or
 100-9   transfers a load of motor fuel must issue an invoice to the retail
100-10   outlet that:
100-11               (1)  states the federal employer identification number,
100-12   name, and address of the seller or transferor; and
100-13               (2)  clearly indicates the amount of tax paid, who paid
100-14   the tax, and on what product the tax was paid.
100-15         (b)  A retail outlet may not accept a load of motor fuel
100-16   unless the outlet acquires an invoice that complies with Subsection
100-17   (a).
100-18         Sec. 161.320.  FALSE STATEMENT ON SHIPPING PAPER REGARDING
100-19   LIABILITY FOR TAX; PENALTIES.  (a)  A terminal operator may not
100-20   imprint, and a supplier may not permit a terminal operator to
100-21   imprint on the supplier's behalf, a statement on a shipping paper
100-22   relating to motor fuel to be delivered to this state or to a state
100-23   having substantially the same shipping paper legending requirements
100-24   with respect to:
100-25               (1)  a supplier's responsibility or liability for
100-26   payment of the tax imposed by this chapter; or
100-27               (2)  the tax-paid or tax-collected status of a taxable
 101-1   motor fuel unless the supplier or supplier's representative first
 101-2   provides the terminal operator with a representation or direction
 101-3   to make the statement on behalf of the supplier.
 101-4         (b)  A terminal operator who imprints a statement in
 101-5   violation of this section is subject to a penalty in an amount
 101-6   prescribed by the comptroller. A penalty provided by this section
 101-7   is in addition to any other tax, fine, penalty, or sanction that
 101-8   may be imposed.
 101-9         (c)  A supplier who violates this section is jointly liable
101-10   with the terminal operator.
101-11         Sec. 161.321.  METERING DEVICE REQUIRED FOR FUEL DISPENSER
101-12   ACCESSIBLE BY PUBLIC; TAMPERING PROHIBITED.  (a)  A person
101-13   operating taxable motor fuel dispenser equipment accessible by the
101-14   general public shall:
101-15               (1)  provide metering devices for each dispenser; and
101-16               (2)  maintain records sufficient to enable the
101-17   comptroller to determine the volumes dispensed through that
101-18   equipment with reasonable accuracy.
101-19         (b)  A person may not exchange, replace, roll back, or
101-20   otherwise tamper with the metering equipment in a manner that does
101-21   not comply with comptroller rules relating to legitimate
101-22   maintenance, repairs, and replacement purposes.
101-23         (c)  A person who violates this section commits an offense.
101-24   An offense under this section is a felony of the third degree.
101-25         Sec. 161.322.  TAMPER-RESISTANT SHIPPING PAPERS REQUIRED.  A
101-26   terminal operator in this state, and every supplier licensed by
101-27   this state for the collection of tax on taxable motor fuel, shall
 102-1   ensure that terminal-issued shipping papers meet tamper resistance
 102-2   standards the comptroller by rule may require, including messages
 102-3   that identify whether shipping papers have been photocopied,
 102-4   numbering systems, nonreproducible coding, and other devices.
 102-5         Sec. 161.323.  TANK WAGONS MUST HAVE INTERNATIONAL FUEL TAX
 102-6   AGREEMENT REGISTRATION; EXCEPTION.  (a)  A person may not operate a
 102-7   tank wagon in this state unless the tank wagon:
 102-8               (1)  is registered under the International Fuel Tax
 102-9   Agreement for use on the public highways of this state; and
102-10               (2)  has displayed on the vehicle an International Fuel
102-11   Tax Agreement sticker designating the vehicle for use in this
102-12   state.
102-13         (b)  This section does not apply to a  vehicle registered in
102-14   this state that is exempt from the International Fuel Tax Agreement
102-15   regulations.
102-16            (Sections 161.324-161.350 reserved for expansion
102-17                        SUBCHAPTER I.   PENALTIES
102-18         Sec. 161.351.  LIABILITY OF BUSINESS ENTITIES, PARTICIPATING
102-19   OFFICERS, EMPLOYEES, AND AGENTS.  A business entity and its
102-20   officers, employees, and agents who wilfully participate in an
102-21   activity that violates Section 161.314 or 161.315 are jointly and
102-22   severally liable for the penalty imposed by Section 6715, Internal
102-23   Revenue Code of 1986, as amended, for a violation of those
102-24   sections.
102-25         Sec. 161.352.  LIABILITY FOR UNCOLLECTED AND UNPAID TAX;
102-26   PENALTIES.  A supplier, permissive supplier, or importer who fails
102-27   to collect and timely remit tax otherwise required to be paid to
 103-1   the comptroller as required by Section 161.055 or 161.057, or  as
 103-2   required by a tax precollection agreement under Section 161.056, is
 103-3   liable for the uncollected tax plus the penalties as imposed by the
 103-4   comptroller.
 103-5         Sec. 161.353.  PENALTIES.  (a)  A person liable for the tax
 103-6   who files a false or fraudulent return must pay in addition to the
 103-7   tax a penalty in an amount equal to 75 percent of the taxes, other
 103-8   penalties, and interest due.
 103-9         (b)  The comptroller shall impose a civil penalty of $1,000
103-10   for a person's first violation relating to transporting taxable
103-11   motor fuel without adequate shipping papers that are annotated as
103-12   required by  Section 161.302 or 161.309.
103-13         (c)  The comptroller shall impose a civil penalty of $2,000
103-14   on the operator of a vehicle for the first violation in a calendar
103-15   year of the prohibition on use of dyed diesel fuel on the public
103-16   highways of this state.  Each subsequent offense in a calendar year
103-17   is subject to a civil penalty of $5,000.
103-18         (d)  A supplier who makes a sale of taxable motor fuel for
103-19   export to a person who does not have an appropriate export license,
103-20   or without collecting the destination state's tax on taxable motor
103-21   fuel nonexempt in the destination state, is subject to a civil
103-22   penalty equal to the amount of the destination state's motor fuel
103-23   tax in addition to the tax due to this state.
103-24         (e)  The comptroller may impose a penalty against a terminal
103-25   operator who wilfully fails to comply with the shipping paper
103-26   issuance requirements prescribed by  Sections 161.058, 161.301, and
103-27   161.312 in an amount prescribed by the comptroller.
 104-1         (f)  The comptroller shall impose a penalty in an amount
 104-2   equal to the penalty prescribed by Section 6715, Internal Revenue
 104-3   Code of 1986, as amended, on the operator of a vehicle who violates
 104-4   the prohibition on the sale or use of dyed diesel fuel on the
 104-5   public highways of this state.
 104-6         (g)  An importer or transporter who imports undyed taxable
 104-7   motor fuel in a transport truck without a valid importer license or
 104-8   supplier license and an import verification number or a shipping
 104-9   paper showing on its face, as required by this chapter, that this
104-10   state's motor fuel tax is not due is subject to a penalty of
104-11   $10,000 for each occurrence.  This subsection does not apply to a
104-12   person who  transports taxable motor fuel through this state in
104-13   interstate commerce.
104-14         Sec. 161.354.  IMPOUNDMENT AND SEIZURE OF VEHICLE AND CARGO
104-15   FOR VIOLATION OF SHIPPING PAPER REQUIREMENTS.  (a)  A motor vehicle
104-16   and the vehicle's cargo are subject to impoundment, seizure, and
104-17   subsequent sale and forfeiture in accordance with the general laws
104-18   of this state relating to seizure and forfeiture if a person is
104-19   found operating the motor vehicle in violation of the shipping
104-20   paper requirements prescribed by Sections 161.302, 161.309,
104-21   161.310, and 161.312.  The failure of the operator of a motor
104-22   vehicle to have on board when loaded a terminal-issued bill of
104-23   lading that has the destination state machine-printed on the face
104-24   of the bill of lading as required by Section 161.302, or that fails
104-25   to meet the descriptive annotation requirements prescribed by
104-26   Sections 161.309, 161.310, and 161.312, if applicable, is
104-27   presumptive evidence of a violation sufficient to warrant
 105-1   impoundment and seizure of the vehicle and its cargo.
 105-2         (b)  If after examination or other investigation the
 105-3   comptroller believes that the owner or operator of a motor vehicle
 105-4   or cargo tank, or a person receiving, possessing, delivering, or
 105-5   selling gasoline or diesel fuel, has not paid all motor fuel taxes
 105-6   due or does not have a valid license entitling that person to
 105-7   possess or transport tax-free motor fuel, the comptroller or any
 105-8   peace officer may impound the fuel, the motor vehicle, cargo tanks,
 105-9   storage tanks, equipment, paraphernalia, or other tangible personal
105-10   property used for or incident to the storage, sale, or
105-11   transportation of that motor fuel.
105-12         (c)  The comptroller may demand payment of all taxes,
105-13   penalties, interest due to this state, and all costs of impoundment
105-14   unless the comptroller receives proof not later than the third
105-15   working day after the beginning of impoundment that:
105-16               (1)  the owner, operator, or other person has paid the
105-17   taxes established to be due on the gasoline or diesel fuel stored,
105-18   sold, used, or transported and any other taxes due to this state;
105-19   or
105-20               (2)  the owner, operator, or other person holds a
105-21   license to possess or transport tax-free motor fuel.
105-22         (d)  The comptroller may seize the impounded property to
105-23   satisfy the tax liability if the owner or operator does not produce
105-24   the required documentation or required license  or does not pay the
105-25   taxes, penalties, interest, and costs due not later than the third
105-26   working day after the beginning of the impoundment.
105-27         (e)  The comptroller may seize:
 106-1               (1)  all motor fuel on which taxes are imposed by this
 106-2   chapter that is found in the possession, custody, or control of a
 106-3   person for the purpose of being sold, transported, removed, or used
 106-4   by the person in violation of this chapter;
 106-5               (2)  all motor fuel that is removed from, or deposited,
 106-6   stored, or concealed in, any place with the intent to avoid payment
 106-7   of taxes;
 106-8               (3)  any automobile, truck, tank truck, boat, trailer
 106-9   conveyance, or other vehicle used to  remove or transport the motor
106-10   fuel to avoid payment of taxes; and
106-11               (4)  all equipment, paraphernalia, storage tanks, or
106-12   tangible personal property incident to and used to avoid payment of
106-13   taxes and found in the place, building, or vehicle in which the
106-14   motor fuel is found.
106-15         Sec. 161.355.  SALE OF SEIZED PROPERTY.  (a)  The comptroller
106-16   may sell property seized under Section 161.354.
106-17         (b)  Notice of the time and place of a sale shall be given to
106-18   the delinquent person in writing by certified mail, not later than
106-19   the 20th day before the date set for the sale.  The notice shall be
106-20   enclosed in an envelope addressed to the person at the person's
106-21   last known address or place of business.  The notice shall be
106-22   deposited in the United States mail, postage prepaid.  The notice
106-23   shall also be published once a week for two consecutive weeks
106-24   before the date of the sale in a newspaper of general circulation
106-25   published in the county in which the property seized is to be sold.
106-26   If there is not a newspaper of general circulation in the county,
106-27   notice shall be posted in three public places in the county not
 107-1   later than the 14th day before the date set for the sale.  The
 107-2   notice must contain:
 107-3               (1)  a description of the property to be sold;
 107-4               (2)  a statement of the amount due, including interest,
 107-5   penalties, and costs;
 107-6               (3)  the name of the delinquent person; and
 107-7               (4)  a statement that unless the amount due, including
 107-8   any interest, penalties, and costs, is paid on or before the time
 107-9   prescribed in the notice for the sale, the property, or as much of
107-10   the property as may be necessary, will be sold at public auction in
107-11   accordance with the law and the notice.
107-12         (c)  At the sale, the comptroller shall sell the property and
107-13   shall deliver to the purchaser a bill of sale for personal property
107-14   or a deed for real property sold.  The bill of sale or deed vests
107-15   the interest or title of the person liable for the amount in the
107-16   purchaser.  The unsold portion of any property seized may be left
107-17   at the place of sale at the risk of the person liable for the
107-18   amount.
107-19         (d)  The proceeds of a sale shall be allocated according to
107-20   the following priorities:
107-21               (1)  the payment of expenses of seizure, appraisal,
107-22   custody, advertising, auction, and any other expenses incident to
107-23   the seizure and sale;
107-24               (2)  the payment of the tax, penalty, and interest; and
107-25               (3)  the repayment of the remaining balance to the
107-26   person liable for the amount, unless a claim is presented before
107-27   the sale by any other person who has an ownership interest in the
 108-1   property, as evidenced by a financing statement or lien, in which
 108-2   case the comptroller shall withhold the remaining balance pending a
 108-3   determination of the rights of the respective parties.
 108-4         Sec. 161.356.  FAILURE TO PAY TAX OR REPORT.  (a)  A person
 108-5   who holds a license under this chapter, is required to pay tax
 108-6   under this chapter, and fails to file a report as required by this
 108-7   chapter or fails to pay a tax imposed by this chapter when due
 108-8   shall forfeit an amount equal to five percent of the amount due as
 108-9   a penalty.  If the person fails to file the report or pay the tax
108-10   not later than the 30th day after the day the tax or report is due,
108-11   the person forfeits an additional five percent.
108-12         (b)  The comptroller may add a penalty in an amount equal to
108-13   75 percent of the amount of taxes, other penalties, and interest
108-14   due if failure to file the report or pay the tax when it becomes
108-15   due is attributable to fraud or an intent to evade the application
108-16   of this chapter or a rule adopted under this chapter or Chapter
108-17   111.
108-18         Sec. 161.357.  PROHIBITED ACTS; CIVIL PENALTIES.  A person
108-19   forfeits to the state a civil penalty of not less than $25 nor more
108-20   than $250 if the person:
108-21               (1)  operates a motor vehicle in this state without a
108-22   bonded importer's or occasional importer's license if the person is
108-23   required to hold one of those licenses;
108-24               (2)  operates a liquefied gas-propelled motor vehicle
108-25   that is required to be registered in this state, including a motor
108-26   vehicle equipped with dual carburetion, and does not display a
108-27   current liquefied gas tax decal or multistate fuels tax agreement
 109-1   decal;
 109-2               (3)  makes a tax-free sale or delivery of liquefied gas
 109-3   into the fuel supply tank of a motor vehicle that does not display
 109-4   a current liquefied gas tax decal from this state;
 109-5               (4)  makes a taxable sale or delivery of liquefied gas
 109-6   without holding a valid dealer's license;
 109-7               (5)  makes a tax-free sale or delivery of liquefied gas
 109-8   into the fuel supply tank of a motor vehicle that has out-of-state
 109-9   license plates;
109-10               (6)  makes a delivery of liquefied gas into the fuel
109-11   supply tank of a motor vehicle that has license plates from this
109-12   state but does not have a liquefied gas tax decal from this state,
109-13   unless the motor vehicle is licensed under a multistate fuels tax
109-14   agreement;
109-15               (7)  transports gasoline or diesel fuel in any cargo
109-16   tank that has a connection by pipe, tube, valve, or otherwise with
109-17   the fuel injector or carburetor or with the fuel supply tank
109-18   feeding the fuel injector or carburetor of the motor vehicle
109-19   transporting the product;
109-20               (8)  sells or delivers gasoline or diesel fuel from any
109-21   fuel supply tank connected with the fuel injector or carburetor of
109-22   a motor vehicle; or
109-23               (9)  owns or operates a motor vehicle, for which
109-24   reports or mileage records are required by this chapter, without an
109-25   operating odometer or other device in good working condition to
109-26   record accurately the miles traveled.
109-27         Sec. 161.358.  CRIMINAL OFFENSES.  A person commits an
 110-1   offense if the person:
 110-2               (1)  refuses to stop and permit the inspection and
 110-3   examination of a motor vehicle transporting or using motor fuel on
 110-4   the demand of a peace officer or the comptroller or the
 110-5   comptroller's agent;
 110-6               (2)  is required to hold a valid occasional importer's
 110-7   license or importer's license, but operates a motor vehicle in this
 110-8   state without a valid occasional importer's license or importer's
 110-9   license;
110-10               (3)  operates a liquefied gas-propelled motor vehicle
110-11   that is required to be licensed in this state, including a motor
110-12   vehicle equipped with dual carburetion, and does not display a
110-13   current liquefied gas tax decal or multistate fuels tax agreement
110-14   decal;
110-15               (4)  transports gasoline or diesel fuel in any tank,
110-16   except the fuel supply tank, that has a connection by pipe, tube,
110-17   valve, or otherwise with the fuel injector or carburetor or with
110-18   the fuel supply tank feeding the fuel injector or carburetor of the
110-19   motor vehicle transporting the product;
110-20               (5)  sells or delivers gasoline or diesel fuel from a
110-21   fuel supply tank that is connected with the fuel injector or
110-22   carburetor of a motor vehicle;
110-23               (6)  owns or operates a motor vehicle for which reports
110-24   or mileage records are required by this chapter without an
110-25   operating odometer or other device in good working condition to
110-26   record accurately the miles traveled;
110-27               (7)  makes a tax-free sale or delivery of liquefied gas
 111-1   into the fuel supply tank of a motor vehicle that does not display
 111-2   a current liquefied gas tax decal from this state;
 111-3               (8)  makes a sale or delivery of liquefied gas on which
 111-4   the person knows the tax is required to be collected, if at the
 111-5   time the sale is made the person does not hold a valid dealer's
 111-6   license;
 111-7               (9)  makes a tax-free sale or delivery of liquefied gas
 111-8   into the fuel supply tank of a motor vehicle that has out-of-state
 111-9   license plates;
111-10               (10)  makes a delivery of liquefied gas into the fuel
111-11   supply tank of a motor vehicle that has license plates from this
111-12   state but does not have a liquefied gas tax decal from this state,
111-13   unless the motor vehicle is licensed under a multistate fuels tax
111-14   agreement;
111-15               (11)  refuses to permit the comptroller or the attorney
111-16   general to inspect, examine, or audit a book or record required to
111-17   be kept by a person required to hold a license under this chapter;
111-18               (12)  refuses to permit the comptroller or the attorney
111-19   general to inspect or examine a plant, equipment, materials, or
111-20   premises at which motor fuel is produced, processed, stored, sold,
111-21   delivered, or used;
111-22               (13)  refuses to permit the comptroller or the attorney
111-23   general to measure or gauge the contents of or take samples from a
111-24   storage tank or container on premises at which motor fuel is
111-25   produced, processed, stored, sold, delivered, or used;
111-26               (14)  is a license holder under this chapter and fails
111-27   or refuses to make or deliver to the comptroller a report required
 112-1   by this chapter to be made and delivered to the comptroller;
 112-2               (15)  conceals motor fuel with the intent of engaging
 112-3   in conduct prohibited by this chapter or acts to avoid or evade
 112-4   motor fuel taxes or engages in fraud with regard to motor fuel
 112-5   taxes;
 112-6               (16)  refuses, while transporting motor fuel, to stop
 112-7   the motor vehicle the person is operating on demand by a person
 112-8   authorized to stop the motor vehicle;
 112-9               (17)  refuses to surrender a motor vehicle and cargo
112-10   for impoundment on demand by a person authorized to impound the
112-11   motor vehicle and cargo;
112-12               (18)  transports motor fuel for which a shipping paper
112-13   is required to be carried without possessing or exhibiting on
112-14   demand by an officer authorized to make the demand a shipping paper
112-15   containing the information required to be shown on the document;
112-16               (19)  mutilates, destroys, or secretes a book or record
112-17   required by this chapter to be kept by a person required to hold a
112-18   license under this chapter;
112-19               (20)  is a person required to hold a license under this
112-20   chapter, or is the agent or employee of such a person, and makes a
112-21   false entry or fails to make an entry in the books and records
112-22   required by this chapter to be made by the person or fails to
112-23   retain a record as required by this chapter;
112-24               (21)  is a transporter of motor  fuel and fails to
112-25   provide as required to the operator of the retail outlet, bulk
112-26   plant, or end user bulk storage facility, to which delivery of the
112-27   shipment is made, a shipping paper issued by the refinery or bulk
 113-1   plant from which the  fuel was removed by the transporter;
 113-2               (22)  is an operator of a retail outlet, bulk plant, or
 113-3   end user bulk storage facility to which delivery of a shipment of
 113-4   motor fuel is made and accepts that shipment without also receiving
 113-5   from the transporter at the time of delivery a shipping paper
 113-6   issued by the refinery, terminal, or bulk plant from which the fuel
 113-7   was removed by the  transporter;
 113-8               (23)  transports in any manner motor fuel under a false
 113-9   shipping paper;
113-10               (24)  engages in a motor fuel transaction that requires
113-11   that the person have a license under this chapter if the person
113-12   does not hold the required license;
113-13               (25)  makes and delivers to the comptroller a report
113-14   required by this chapter to be made and delivered to the
113-15   comptroller that contains false information;
113-16               (26)  forges, falsifies, or alters an invoice
113-17   prescribed by law;
113-18               (27)  makes any statement that the person knows is
113-19   false in a claim for a tax refund filed with the comptroller;
113-20               (28)  provides to a supplier a signed statement for
113-21   purchasing diesel fuel of a type that may be legally used by the
113-22   purchaser for the operation of a motor vehicle on the public
113-23   highways under state or federal law tax-free if the person owns,
113-24   operates, or acquires a diesel-powered motor vehicle;
113-25               (29)  holds an aviation fuel dealer's license and makes
113-26   a  taxable sale or use of any gasoline or diesel fuel;
113-27               (30)  fails to remit any tax funds collected by a
 114-1   person required to hold a license under this chapter and to pay the
 114-2   tax;
 114-3               (31)  makes a sale of diesel fuel tax-free into a
 114-4   storage facility of a person who is not licensed as a supplier or
 114-5   as an aviation fuel dealer;
 114-6               (32)  makes a sale of gasoline tax-free to a person who
 114-7   is not licensed as an aviation fuel dealer;
 114-8               (33)  is a dealer who purchases any motor fuel tax-free
 114-9   when not authorized to make a tax-free purchase under this chapter;
114-10   or
114-11               (34)  is a dealer who purchases motor fuel with the
114-12   intent to evade a tax imposed by this chapter.
114-13         Sec. 161.359.  CRIMINAL OFFENSES: SPECIAL PROVISIONS AND
114-14   EXCEPTIONS.  (a)  A person does not commit an offense under Section
114-15   161.358 unless the person intentionally or knowingly engages in
114-16   conduct that is prohibited under Section 161.358, except that a
114-17   culpable mental state is not required for an offense described by
114-18   Section 161.358(6).
114-19         (b)  Each day that a refusal prohibited under Section
114-20   161.358(11), (12), or (13) continues is a separate offense.
114-21         (c)  The prohibition prescribed by Section 161.358(31) does
114-22   not apply to the tax-free sale or distribution of diesel fuel
114-23   authorized by Section 161.161.
114-24         (d)  The prohibition under Section 161.358(32) does not apply
114-25   to the tax-free sale or distribution of gasoline authorized by
114-26   Section 161.161.
114-27         Sec. 161.360.  CRIMINAL PENALTIES.  (a)  An offense under
 115-1   Section 161.358(1), (2), (3), (4), (5), or (6) is a Class C
 115-2   misdemeanor.
 115-3         (b)  An offense under Section 161.358(7), (8), (9), (10),
 115-4   (11), (12), (13), or (14)  is a Class B misdemeanor.
 115-5         (c)  An offense under Section 161.358(15), (16), (17), or
 115-6   (18) is a Class A misdemeanor.
 115-7         (d)  An offense under Section 161.358(19), (20), (21), (22),
 115-8   (23), (24), (25), (26), (27), or (28) is a felony of the third
 115-9   degree.
115-10         (e)  An offense under Section 161.358(29), (30), (31), (32),
115-11   (33), or (34) is a felony of the second degree.
115-12         (f)  Violations of three or more separate offenses under
115-13   Sections 161.358(19)-(28) committed under one scheme or continuous
115-14   course of conduct may be considered as one offense and punished as
115-15   a felony of the second degree.
115-16         Sec. 161.361.  CRIMINAL PENALTIES: CORPORATIONS AND
115-17   ASSOCIATIONS.  (a)  Except as provided by Subsection (b),
115-18   Subchapter E, Chapter 12, Penal Code, applies to an offense under
115-19   this chapter committed by a corporation or association.
115-20         (b)  The court may not fine a corporation or association
115-21   under Section 12.51(c), Penal Code, unless the amount of the fine
115-22   under that subsection is greater than the amount that could be
115-23   assessed by the court under Section 12.51(b), Penal Code.
115-24         (c)  In addition to a sentence imposed on a corporation, the
115-25   court shall give notice of the conviction to the attorney general
115-26   as required by Article 17A.09, Code of Criminal Procedure.
115-27         Sec. 161.362.  VENUE OF TAX COLLECTION SUITS.  The venue of a
 116-1   suit, injunction, or other proceeding at law available for the
 116-2   establishment or collection of a claim for delinquent taxes,
 116-3   penalties, or interest accruing under this chapter and the
 116-4   enforcement of the terms and provisions of this chapter is in
 116-5   Travis County or in any other county having venue under applicable
 116-6   venue statutes.
 116-7         Sec. 161.363.  ASSESSED PENALTIES ARE NOT ASSIGNABLE.
 116-8   Penalties assessed as a result of this subchapter are not
 116-9   assignable or transferable.
116-10         Sec. 161.364.  NEGATION OF EXCEPTION: INFORMATION, COMPLAINT,
116-11   OR INDICTMENT.  An information, complaint, or indictment charging a
116-12   violation of this chapter need not negate an exception to an act
116-13   prohibited by this chapter, but the exception may be urged by the
116-14   defendant as a defense to the offense charged.
116-15         Sec. 161.365.  ISSUANCE OF BAD CHECK TO LICENSED SUPPLIER OR
116-16   BONDED IMPORTER.  (a)  A person commits an offense if:
116-17               (1)  the person issues or passes a check or similar
116-18   sight  order for the payment of money knowing that the issuer does
116-19   not have sufficient funds in or on deposit with the bank or other
116-20   drawee for the payment in full of the check or order as well as all
116-21   other checks or orders outstanding at the time of issuance;
116-22               (2)  the payee on the check or order is a licensed
116-23   supplier or bonded importer; and
116-24               (3)  the payment is for an obligation or debt that
116-25   includes a tax under this chapter to be collected by the licensed
116-26   supplier or bonded importer.
116-27         (b)  Sections 32.41(b), (c), (d), (e), and (g), Penal Code,
 117-1   apply to an offense under this section in the same manner as those
 117-2   provisions are applicable to the offense under Section 32.41(a),
 117-3   Penal Code.
 117-4         (c)  An offense under this section is a Class C misdemeanor.
 117-5         (d)  A person who makes payment on an obligation or debt that
 117-6   includes a tax under this chapter and pays with an insufficient
 117-7   funds check issued to a licensed supplier or bonded importer may be
 117-8   held liable for a penalty equal to the total amount of tax not paid
 117-9   to the licensed supplier or bonded importer.
117-10            (Sections 161.366-161.400 reserved for expansion
117-11                SUBCHAPTER J.  DEPOSITS AND DISTRIBUTIONS
117-12         Sec. 161.401.  TAX ADMINISTRATION FUND.  (a)  Before any
117-13   other allocation of the taxes collected under this chapter is made,
117-14   one percent of the gross amount of the taxes shall be deposited in
117-15   the state treasury in a special fund, subject to the use of the
117-16   comptroller in the administration and enforcement of this chapter.
117-17         (b)  The unexpended portion of the special fund shall revert,
117-18   at the end of the fiscal year, to the other funds to which revenue
117-19   is allocated by this subchapter in proportion to the amounts
117-20   originally derived from the respective sources.
117-21         Sec. 161.402.  ALLOCATION OF UNCLAIMED REFUNDABLE GASOLINE
117-22   TAXES.  (a)  On or before the fifth workday after the end of each
117-23   month, the comptroller, after making the deductions for refund
117-24   purposes, shall determine as accurately as possible, for the period
117-25   since the latest determination under this subsection, the number of
117-26   gallons of fuel used in motorboats on which the gasoline tax has
117-27   been paid to this state, and on which refund of the tax has not
 118-1   been made and against which limitation has run for filing claim for
 118-2   refund of the tax.  From the number of gallons so determined the
 118-3   comptroller shall compute the amount of taxes that would have been
 118-4   refunded under the law had refund claims been filed in accordance
 118-5   with the law.
 118-6         (b)  The comptroller shall allocate and deposit these
 118-7   unclaimed refunds as follows:
 118-8               (1)  25 percent of the revenue based on unclaimed
 118-9   refunds of taxes paid on motor fuel used in motorboats shall be
118-10   deposited to the credit of the available school fund; and
118-11               (2)  the remaining 75 percent of the revenue shall be
118-12   deposited to the credit of the general revenue fund.
118-13         (c)  Money deposited to the credit of the general revenue
118-14   fund under Subsection (b)(2) may be appropriated only to the Parks
118-15   and Wildlife Department for any lawful purpose.
118-16         Sec. 161.403.  ALLOCATION OF OTHER UNCLAIMED REFUNDABLE
118-17   NONDEDICATED TAXES.  (a)  The comptroller by rule shall devise a
118-18   method of determining as accurately as possible the:
118-19               (1)  number of gallons of fuel that is not used to
118-20   propel a motor vehicle on the public highways; and
118-21               (2)  amount of taxes collected under this chapter from
118-22   fuel that is not used to propel a motor vehicle on the public
118-23   highways that would have been refunded under this chapter if refund
118-24   claims had been filed in accordance with this chapter and that is
118-25   not subject to allocation under Section 161.402.
118-26         (b)  The comptroller shall allocate to the general revenue
118-27   fund the amount determined under Subsection (a)(2).
 119-1         (c)  The determination and allocation shall be made
 119-2   periodically as prescribed by rule.
 119-3         Sec. 161.404.  ALLOCATION OF GASOLINE TAX.  On or before the
 119-4   fifth workday after the end of each month, the comptroller, after
 119-5   making all deductions for refund purposes and for the amounts
 119-6   allocated under Sections 161.402 and 161.403, shall allocate the
 119-7   net remainder of the taxes collected on gasoline as follows:
 119-8               (1)  25 percent of the tax shall be deposited to the
 119-9   credit of the available school fund;
119-10               (2)  50 percent of the tax shall be deposited to the
119-11   credit of the state highway fund for the construction and
119-12   maintenance of the state road system under existing law; and
119-13               (3)  from the remaining 25 percent of the tax the
119-14   comptroller shall:
119-15                     (A)  deposit to the credit of the county and road
119-16   district highway fund all the remaining tax receipts until a total
119-17   of $7,300,000 has been credited to the fund each fiscal year; and
119-18                     (B)  after the amount required to be deposited to
119-19   the county and road district highway fund has been deposited,
119-20   deposit to the credit of the state highway fund the remainder of
119-21   the 25 percent of the tax, the amount to be provided on the basis
119-22   of allocations made each month of the fiscal year, which sum shall
119-23   be used by the Texas Department of Transportation for the
119-24   construction, improvement, and maintenance of farm-to-market roads.
119-25         Sec. 161.405.  ALLOCATION OF DIESEL FUEL TAX.  On or before
119-26   the fifth workday after the end of each month, the comptroller,
119-27   after making deductions for refund purposes, for the administration
 120-1   and enforcement of this chapter, and for the amounts allocated
 120-2   under Section 161.403, shall allocate the remainder of the taxes
 120-3   collected on diesel fuel  as follows:
 120-4               (1)  25 percent of the taxes shall be deposited to the
 120-5   credit of the available school fund; and
 120-6               (2)  75 percent of the taxes shall be deposited to the
 120-7   credit of the state highway fund.
 120-8         Sec. 161.406.  ALLOCATION OF LIQUEFIED GAS TAX.  On or before
 120-9   the fifth workday after the end of each month, the comptroller,
120-10   after making deductions for refund purposes and for the
120-11   administration and enforcement of this chapter, shall allocate the
120-12   remainder of the taxes collected on liquefied gas as follows:
120-13               (1)  25 percent of the taxes shall be deposited to the
120-14   credit of the available school fund; and
120-15               (2)  75 percent of the taxes shall be deposited to the
120-16   credit of the state highway fund.
120-17         SECTION 2.  (a)  Chapter 153, Tax Code, is repealed.
120-18         (b)  A reference in law to Chapter 153, Tax Code, or to a
120-19   motor fuel tax imposed under Chapter 153, Tax Code, means Chapter
120-20   161, Tax Code, as added by this Act, and the motor fuels tax
120-21   imposed under Chapter 161, Tax Code.
120-22         SECTION 3.  (a)  This Act takes effect January 1, 2001.
120-23         (b)  Not later than January 25, 2001, each person who
120-24   possessed a permit as a distributor to sell taxable motor fuel at
120-25   wholesale or had a permit requiring the remittance of taxes to this
120-26   state under Chapter 153, Tax Code, as it existed immediately before
120-27   the effective date of this Act,  shall file a report with the
 121-1   comptroller in accordance with the final report requirements
 121-2   prescribed by  Section 161.263, Tax Code, as added by this Act. The
 121-3   person shall compute any remaining taxes due and remit the taxes
 121-4   with the report.
 121-5         (c)  As part of the final report required under Subsection
 121-6   (b) of this section, the person making the report shall compute the
 121-7   tax on all inventory held outside of the bulk transfer system, as
 121-8   that term is defined by Section 161.001, Tax Code, as added by this
 121-9   Act, on the effective date of this Act and subject to reporting
121-10   under Subsection (a) of this section.  The person is not required
121-11   to pay the tax on the inventory but is required to list the
121-12   computation of the tax as a separate line item on the report.
121-13         (d)  A vendor, as that term is defined by Section 161.001,
121-14   Tax Code, as added by this Act,  who possessed a permit to sell
121-15   taxable motor fuel at wholesale or at retail under Chapter 153, Tax
121-16   Code, as it existed immediately before the effective date of this
121-17   Act, shall compute all remaining taxes due as provided by
121-18   Subsection (a) of this section.  On or before January 25, 2001, the
121-19   vendor shall pay the tax in not more than 24 equal monthly
121-20   installments.
121-21         SECTION 4.  (a)  Beginning on the effective date of this Act,
121-22   and ending on December 31, 2002, each person who possessed a
121-23   permit as a distributor to sell taxable motor fuel at wholesale
121-24   under Chapter 153, Tax Code, as it existed immediately before the
121-25   effective date of this Act, shall receive a credit from the
121-26   supplier for a terminal transfer under Section 161.067, Tax Code,
121-27   as added by this Act, of two percent instead of one-half of one
 122-1   percent if the person:
 122-2               (1)  obtains a license before January 1, 2001, to
 122-3   operate under Chapter 161, Tax Code, as added by this Act, as an
 122-4   eligible purchaser; and
 122-5               (2)  submits the final report required by Section 3(b)
 122-6   of this Act not later than January 10, 2001.
 122-7         (b)  A supplier who pays a credit under Subsection (a)  of
 122-8   this section shall receive a credit for remitting taxes under
 122-9   Section 161.066, Tax Code, as added by this Act, of 2.25 percent,
122-10   instead of three-fourths of one percent.
122-11         SECTION 5.  The comptroller shall immediately allow a person
122-12   who held a permit under Chapter 153, Tax Code, as it existed
122-13   immediately before the effective date of this Act, to apply for
122-14   eligible purchaser status under Sections 161.061 and 161.062, Tax
122-15   Code, as added by this Act.  The comptroller may allow a person to
122-16   act as an eligible purchaser until the date the person receives
122-17   approval of that status or is rejected.
122-18         SECTION 6.  The importance of this legislation and the
122-19   crowded condition of the calendars in both houses create an
122-20   emergency and an imperative public necessity that the
122-21   constitutional rule requiring bills to be read on three several
122-22   days in each house be suspended, and this rule is hereby suspended.