76R15275 CBH-F                          
         By Bivins, et al.                                     S.B. No. 1547
         Substitute the following for S.B. No. 1547:
         By Oliveira                                       C.S.S.B. No. 1547
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the collection of the tax on motor fuels; providing
 1-3     penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 153.001, Tax Code, is amended by amending
 1-6     Subdivisions (8) and (19) and adding Subdivisions (28) through (36)
 1-7     to read as follows:
 1-8                 (8)  "Diesel tax prepaid user" means a person:
 1-9                       (A)  whose purchases of diesel fuel are
1-10     predominantly for agricultural nonhighway use;
1-11                       (B)  whose only diesel-powered motor vehicles are
1-12     passenger cars or light trucks; and
1-13                       (C)  who elects to prepay an annual diesel fuel
1-14     tax to the comptroller on each diesel-powered motor vehicle.
1-15                 (19)  "Motor fuel" includes gasoline, diesel fuel,
1-16     liquefied gas, and other products that are offered for sale, sold,
1-17     or used [usable] as propellants of a motor vehicle.
1-18                 (28)  "Blended fuel" means a mixture composed of
1-19     gasoline or diesel fuel and another liquid produced by a blending
1-20     process, other than a de minimis amount of a product such as
1-21     carburetor detergent or oxidation inhibitor, that can be offered
1-22     for sale, sold, or used as a fuel in a motor vehicle.
1-23                 (29)  "Blending" means the mixing together of one or
 2-1     more products with other products to produce a product that is
 2-2     offered for sale, sold, or used as a motor fuel.  The term does not
 2-3     include the blending that may occur during the refining process by
 2-4     the original refiner of crude petroleum or the commingling of
 2-5     products during transportation in a pipeline.
 2-6                 (30)  "Diversion number" means the number assigned by
 2-7     the comptroller, or by a person to whom the comptroller delegates
 2-8     or appoints the authority to assign the number, that relates to a
 2-9     single cargo tank delivery of motor fuel that is diverted from the
2-10     original destination state printed on the shipping document.
2-11                 (31)  "Dyed diesel fuel" means diesel fuel that is
2-12     required to be dyed under United States Environmental Protection
2-13     Agency and Internal Revenue Service rules or in accordance with
2-14     other subsequent requirements prescribed by the agency or service,
2-15     including any invisible marker requirements.
2-16                 (32)  "Export" means to deliver motor fuel to a point
2-17     outside this state.  For purposes of this definition, motor fuel
2-18     delivered outside this state:
2-19                       (A)  by or for the seller constitutes an export
2-20     by the seller; and
2-21                       (B)  by or for the purchaser constitutes an
2-22     export by the purchaser.
2-23                 (33)  "Import" means to deliver motor fuel to a point
2-24     inside this state from a point outside this state.  For purposes of
2-25     this definition, motor fuel delivered into this state from outside
2-26     this state:
2-27                       (A)  by or for the seller constitutes an import
 3-1     by the seller; and
 3-2                       (B)  by or for the purchaser constitutes an
 3-3     import by the purchaser.
 3-4                 (34)  "Import verification number" means the number
 3-5     assigned by the comptroller, or by a person to whom the comptroller
 3-6     delegates or appoints the authority to assign the number, that
 3-7     relates to a single cargo tank delivery into this state from
 3-8     another state after a request for an assigned number by an importer
 3-9     or by the common or contract carrier carrying taxable motor fuel
3-10     into this state for the account of an importer.
3-11                 (35)  "Shipping document" means a delivery document
3-12     issued by a terminal or bulk plant operator in conjunction with the
3-13     sale, transfer, or removal of motor fuel from the terminal or bulk
3-14     plant.
3-15                 (36)  "Undyed diesel fuel" means diesel fuel that is
3-16     not subject to the United States Environmental Protection Agency
3-17     requirements or has not been dyed in accordance with the Internal
3-18     Revenue Service fuel dying provisions.
3-19           SECTION 2.  Subsection (a), Section 153.003, Tax Code, is
3-20     amended to read as follows:
3-21           (a)  All common and contract carriers operating in this state
3-22     shall keep for four years, open to inspection by the comptroller, a
3-23     complete and separate record of each intrastate and interstate
3-24     transportation of motor fuel.  The records of each intrastate and
3-25     interstate transportation of motor fuel required under Subsection
3-26     (b) shall be compiled into a report and supplements in a form or
3-27     manner determined by the comptroller.  On or before the 25th day of
 4-1     the month following the end of each calendar quarter, a common or
 4-2     contract carrier shall file a report showing complete and detailed
 4-3     information on the transportation of motor fuel during the
 4-4     preceding quarter.  The report must be executed by the common or
 4-5     contract carrier or a representative of the carrier, and the
 4-6     penalties provided by this chapter apply to any violation relating
 4-7     to the report.  The comptroller by rule shall determine the
 4-8     registration requirements for common or contract carriers
 4-9     transporting motor fuel.
4-10           SECTION 3.  Subsection (d), Section 153.004, Tax Code, is
4-11     amended to read as follows:
4-12           (d)  Each person, other than a common carrier transporting
4-13     motor fuel under this chapter, shall also carry a copy of the
4-14     supplier, distributor, jobber, dyed diesel fuel bonded user, or
4-15     agricultural bonded user permit, or proof of tax payment on the
4-16     motor fuel being transported, unless the person is an end user
4-17     transporting the person's own motor fuel purchased under a signed
4-18     statement as provided by Section 153.205.
4-19           SECTION 4.  Section 153.006, Tax Code, is amended by adding
4-20     Subsection (e) to read as follows:
4-21           (e)  The comptroller may revoke a distributor's or supplier's
4-22     permit if the distributor or supplier purchases, for export, motor
4-23     fuel in this state on which the tax imposed by this chapter has not
4-24     been paid and subsequently diverts or causes the fuel to be
4-25     diverted to a destination in this state or to a destination in
4-26     another state or country other than the originally designated state
4-27     or country without first obtaining a diversion number.
 5-1           SECTION 5.  Section 153.010, Tax Code, is amended to read as
 5-2     follows:
 5-3           Sec. 153.010.  AUTHORITY TO STOP AND EXAMINE.  In order to
 5-4     enforce the provisions of this chapter, the comptroller or a peace
 5-5     officer may stop a motor vehicle that appears to be operating with
 5-6     or transporting motor fuel in order to examine the shipping
 5-7     document, cargo manifest, or invoices required to be carried,
 5-8     examine a permit or copy of a permit that may be required to be
 5-9     carried, take samples from the fuel supply or cargo tanks, and make
5-10     any other investigation that could reasonably be made to determine
5-11     whether the taxes have been paid or accounted for by a distributor,
5-12     supplier, dealer, dyed diesel fuel bonded user, agricultural bonded
5-13     user, jobber, or any person required to be so permitted.  The
5-14     comptroller, a peace officer, an employee of the attorney general's
5-15     office, an employee of the Texas Natural Resource Conservation
5-16     Commission, or an employee of the Department of Agriculture may
5-17     take samples of motor fuel from any storage tank or container to:
5-18                 (1)  determine if the fuel contains hazardous waste or
5-19     is adulterated; or
5-20                 (2)  allow the comptroller to determine whether taxes
5-21     on the fuel have been paid or accounted for to this state.
5-22           SECTION 6.  Subsection (a), Section 153.013, Tax Code, is
5-23     amended to read as follows:
5-24           (a)  A distributor, supplier, dealer, interstate trucker,
5-25     jobber, dyed diesel fuel bonded user, or agricultural bonded user
5-26     who fails to keep a record, issue an invoice, or file a report
5-27     required by this chapter, is presumed to have sold or used for
 6-1     taxable purposes all motor fuel shown by an audit by the
 6-2     comptroller to have been sold to the distributor, supplier, dealer,
 6-3     interstate trucker, jobber, dyed diesel fuel bonded user, or
 6-4     agricultural bonded user.  Motor fuel unaccounted for is presumed
 6-5     to have been sold or used for taxable purposes.  The comptroller
 6-6     may fix or establish the amount of taxes, penalties, and interest
 6-7     due the state from the records of deliveries or from any records or
 6-8     information available to him.  If a tax claim, as developed from
 6-9     this procedure, is not paid, after the opportunity to request a
6-10     redetermination, the claim and any audit made by the comptroller or
6-11     any report filed by the distributor, supplier, dealer, interstate
6-12     trucker, jobber, dyed diesel fuel bonded user, or agricultural
6-13     bonded user, are evidence in any suit or judicial proceedings filed
6-14     by the attorney general, and are prima facie evidence of the
6-15     correctness of the claim or audit.  A prima facie presumption of
6-16     the correctness of the claim may be overcome at the trial by
6-17     evidence adduced by the distributor, supplier, dealer, interstate
6-18     trucker, jobber, dyed diesel fuel bonded user, or agricultural
6-19     bonded user.
6-20           SECTION 7.  Subchapter A, Chapter 153, Tax Code, is amended
6-21     by adding Section 153.018 to read as follows:
6-22           Sec. 153.018.  IMPORTATION AND EXPORTATION OF MOTOR FUEL.
6-23     (a)  A person may not import motor fuel to a destination in this
6-24     state or export motor fuel to a destination outside this state by
6-25     any means unless the person possesses a shipping document for that
6-26     fuel created by the terminal or bulk plant at which the fuel was
6-27     received.  The shipping document must include:
 7-1                 (1)  the name and physical address of the terminal or
 7-2     bulk plant from which the motor fuel was received for import or
 7-3     export;
 7-4                 (2)  the name and federal employer identification
 7-5     number, or the social security number if the employer
 7-6     identification number is not available, of the carrier transporting
 7-7     the motor fuel;
 7-8                 (3)  the date the motor fuel was loaded;
 7-9                 (4)  the type of motor fuel;
7-10                 (5)  the number of gallons:
7-11                       (A)  in temperature-adjusted gallons if purchased
7-12     from a terminal for export or import; or
7-13                       (B)  in temperature-adjusted gallons or in gross
7-14     gallons if purchased from a bulk plant;
7-15                 (6)  the destination of the motor fuel as represented
7-16     by the purchaser of the motor fuel and the number of gallons of the
7-17     fuel to be delivered, if delivery is to only one state;
7-18                 (7)  the name, federal employer identification number,
7-19     permit number, and physical address of the purchaser of the motor
7-20     fuel;
7-21                 (8)  the name of the person responsible for paying the
7-22     tax imposed by this chapter, as given to the terminal by the
7-23     purchaser if different from the permitted supplier or distributor;
7-24     and
7-25                 (9)  any other information that, in the opinion of the
7-26     comptroller, is necessary for the proper administration of this
7-27     chapter.
 8-1           (b)  The terminal or bulk plant shall provide the shipping
 8-2     documents to the importer or exporter.
 8-3           (c)  If motor fuel is to be delivered to more than one state,
 8-4     the terminal shall document the split loads by issuing shipping
 8-5     documents that list the destination state of each portion of the
 8-6     motor fuel.
 8-7           (d)  A terminal, a bulk plant, the carrier, the permitted
 8-8     distributor or supplier, and the person that received the motor
 8-9     fuel shall:
8-10                 (1)  retain a copy of the shipping document until at
8-11     least the fourth anniversary of the date the fuel is received; and
8-12                 (2)  provide a copy of the document to the comptroller
8-13     or any law enforcement officer not later than the 10th working day
8-14     after the date a request for the copy is received.
8-15           (e)  An importer or exporter shall keep in the person's
8-16     possession the shipping document issued by the terminal or bulk
8-17     plant when transporting motor fuel imported into this state or for
8-18     export from this state.  The importer or exporter shall show the
8-19     document to the comptroller or a peace officer on request.  The
8-20     comptroller may delegate authority to inspect the document to other
8-21     governmental agencies.  The importer or exporter shall provide a
8-22     copy of the shipping document to the person that receives the fuel
8-23     when it is delivered.
8-24           (f)  The importer or exporter may deliver motor fuel only to
8-25     the destination state or states indicated on the shipping document.
8-26           (g)  An importer or exporter who wants to divert the delivery
8-27     of a single cargo tank of motor fuel from the destination state
 9-1     printed on the shipping document must obtain a diversion number
 9-2     from the comptroller before diverting the delivery.  The importer,
 9-3     exporter, or common or contract carrier must write the diversion
 9-4     number on the shipping document issued for the fuel.  A diversion
 9-5     number is required for each diverted delivery.  The comptroller may
 9-6     appoint a person to assign diversion numbers or may delegate that
 9-7     authority to another person.
 9-8           (h)  An importer that acquires motor fuel for import by cargo
 9-9     tank must obtain an import verification number from the comptroller
9-10     before importing the motor fuel.  The importer must write the
9-11     import verification number on the shipping document issued for the
9-12     fuel.  The importer must obtain a separate import confirmation
9-13     number for each cargo tank delivery of motor fuel into this state.
9-14     The comptroller may appoint a person to assign import verification
9-15     numbers or may delegate that authority to another person.
9-16           (i)  Each terminal shall post a notice in a conspicuous
9-17     location proximate to the point of receipt of shipping papers that
9-18     describes the duties of importers and exporters under this section.
9-19     The comptroller may prescribe the language, type, style, and format
9-20     of the notice.
9-21           SECTION 8.  Subsection (e), Section 153.105, Tax Code, is
9-22     amended to read as follows:
9-23           (e)  The tax on two percent of the taxable gallons of
9-24     gasoline sold in this state shall be allocated to the distributor
9-25     making the first taxable sale or use of the gasoline and timely
9-26     paying the tax to the state for the expenses of collecting,
9-27     accounting for, reporting, and remitting the tax collected and for
 10-1    keeping records.
 10-2          SECTION 9.  Subsection (a), Section 153.112, Tax Code, is
 10-3    amended to read as follows:
 10-4          (a)  A distributor's permit is permanent and is valid so long
 10-5    as the permittee has in force and effect the required bond or
 10-6    security and furnishes timely reports and supplements as required,
 10-7    or until the permit is surrendered by the holder or canceled by the
 10-8    comptroller.  The comptroller shall [may] cancel a distributor's
 10-9    permit if no purchase, sale, or use of gasoline has been reported
10-10    by the distributor for the prior nine [12] months.
10-11          SECTION 10.  Subsection (a), Section 153.117, Tax Code, is
10-12    amended to read as follows:
10-13          (a)  A distributor shall keep:
10-14                (1)  a record showing the number of gallons of:
10-15                      (A) [(1)]  all gasoline inventories on hand at
10-16    the first of each month;
10-17                      (B) [(2)]  all gasoline refined, compounded, or
10-18    blended;
10-19                      (C) [(3)]  all gasoline purchased or received,
10-20    showing the name of the seller and date of each purchase or
10-21    receipt;
10-22                      (D) [(4)]  all gasoline sold, distributed, or
10-23    used, showing the name of the purchaser and the date of the sale or
10-24    use; and
10-25                      (E) [(5)]  all gasoline lost by fire or other
10-26    accident; and
10-27                (2)  an itemized statement showing by load the number
 11-1    of gallons of all gasoline:
 11-2                      (A)  received during the preceding calendar month
 11-3    for export and the location of the loading;
 11-4                      (B)  exported from this state by destination
 11-5    state or country; and
 11-6                      (C)  imported during the preceding calendar month
 11-7    by destination state or country.
 11-8          SECTION 11.  Subsection (a), Section 153.118, Tax Code, is
 11-9    amended to read as follows:
11-10          (a)  On or before the 25th day of each month, a distributor
11-11    or other person liable to this state for payment of the tax imposed
11-12    under this chapter shall file all reports and supplements as
11-13    required by the comptroller, and remit the amount of tax required
11-14    to be collected during the preceding month.  The report shall be
11-15    executed by the distributor, the distributor's [or his]
11-16    representative, or any other person required to report and shall be
11-17    filed with the comptroller in a manner or on a form provided or
11-18    approved by the comptroller, containing complete and detailed
11-19    information not inconsistent with the requirements of this chapter
11-20    of gasoline transactions.  A distributor required to file a report
11-21    under this section who has not sold or used any gasoline during the
11-22    reporting period shall file with the comptroller the report setting
11-23    forth the facts or information.  The failure of a distributor or
11-24    other person to obtain forms or software from the comptroller is no
11-25    excuse for the failure to file a report containing all the
11-26    information required to be reported.
11-27          SECTION 12.  Section 153.203, Tax Code, is amended to read as
 12-1    follows:
 12-2          Sec. 153.203.  EXCEPTIONS.  The tax imposed by this
 12-3    subchapter does not apply to:
 12-4                (1)  diesel fuel delivered by a permitted supplier to a
 12-5    common or contract carrier, oceangoing vessel (including ship,
 12-6    tanker, or boat), or barge for export from this state, if the
 12-7    diesel fuel is moved forthwith outside this state;
 12-8                (2)  diesel fuel sold by a permitted supplier to the
 12-9    federal government for its exclusive use;
12-10                (3)  diesel fuel sold or delivered by a permitted
12-11    supplier to another permitted supplier or to the bulk storage
12-12    facility of an agricultural bonded user, or dyed diesel fuel sold
12-13    or delivered by a permitted supplier to the bulk storage facility
12-14    of a dyed diesel fuel bonded user, to the bulk storage facility of
12-15    a diesel tax prepaid user, or to a purchaser who provides a signed
12-16    statement as provided by Section 153.205 of this code, but not
12-17    including a delivery of tax-free diesel fuel into the fuel supply
12-18    tanks of a motor vehicle, except for a motor vehicle owned by the
12-19    federal government;
12-20                (4)  diesel fuel sold or delivered by a permitted
12-21    supplier into the storage facility of a permitted aviation fuel
12-22    dealer, from which diesel fuel will be sold or delivered solely
12-23    into the fuel supply tanks of aircraft or aircraft servicing
12-24    equipment;
12-25                (5)  diesel fuel sold or delivered by a permitted
12-26    supplier into fuel supply tanks of railway engines, motorboats, or
12-27    refrigeration units or other stationary equipment powered by a
 13-1    separate motor from a separate fuel supply tank;
 13-2                (6)  kerosene when delivered by a permitted supplier
 13-3    into a storage facility at a retail business from which all
 13-4    deliveries are exclusively for heating, cooking, lighting, or
 13-5    similar nonhighway use;
 13-6                (7)  diesel fuel sold or delivered by one aviation fuel
 13-7    dealer to another aviation fuel dealer who will deliver the diesel
 13-8    fuel exclusively into the supply tanks of aircraft or aircraft
 13-9    servicing equipment;
13-10                (8)  diesel fuel sold by a permitted supplier to a
13-11    public school district in this state for its exclusive use; or
13-12                (9)  diesel fuel sold by a permitted supplier to a
13-13    commercial transportation company that provides public school
13-14    transportation services to a school district under Section 34.008,
13-15    Education Code, and used by the company exclusively to provide
13-16    those services.
13-17          SECTION 13.  Section 153.205, Tax Code, is amended by
13-18    amending Subsections (a), (b), (c), (e), (i), and (j) and adding
13-19    Subsection (k) to read as follows:
13-20          (a)  The first sale or use of diesel fuel in this state is
13-21    taxable, except that sales [the sale] of dyed diesel fuel, or of
13-22    undyed diesel fuel if the fuel will be used for an agricultural
13-23    purpose, may be made without collecting the tax if the purchaser
13-24    furnishes to a permitted supplier a signed statement, including an
13-25    end user number or agricultural user exemption number issued by the
13-26    comptroller that stipulates that:
13-27                (1)  the purchaser does not operate any diesel-powered
 14-1    motor vehicles on the public highway;
 14-2                (2)  all of the diesel fuel will be consumed by the
 14-3    purchaser and no diesel fuel purchased on a signed statement will
 14-4    be resold; and
 14-5                (3)  none of the diesel fuel purchased in this state
 14-6    will be delivered or permitted by the purchaser to be delivered
 14-7    into fuel supply tanks of motor vehicles.
 14-8          (b)  A person may not make a tax-free purchase of any diesel
 14-9    fuel under this section using a signed statement:
14-10                (1)  for the purchase of more than 3,000 gallons of
14-11    dyed or undyed diesel fuel in a single transaction; or
14-12                (2)  in a calendar month in which the person has
14-13    previously purchased more than 10,000 gallons of dyed or undyed
14-14    diesel fuel from all sources.
14-15          (c)  The signed statement and end user number or agricultural
14-16    user exemption number from the purchaser relieves the permitted
14-17    supplier from the burden of proof that the sale of diesel fuel was
14-18    not taxable to the purchaser and remains in effect unless:
14-19                (1)  the statement is revoked in writing by the
14-20    purchaser or supplier;
14-21                (2)  the comptroller notifies the supplier in writing
14-22    that the purchaser may no longer make tax-free purchases; or
14-23                (3)  the supplier is put on notice by making taxable
14-24    sales of diesel fuel to a purchaser who has previously submitted a
14-25    signed statement to this supplier.
14-26          (e)  A taxable use of any part of the dyed or undyed diesel
14-27    fuel purchased under a signed statement shall, in addition to any
 15-1    criminal penalty, forfeit the right of the person to purchase dyed
 15-2    or undyed diesel fuel tax free for a period of one year from the
 15-3    date of the offense, and any tax, interest, and penalty found to be
 15-4    due through false or erroneous execution or continuance of a
 15-5    promissory statement by the purchaser, if assessed to the supplier,
 15-6    is a debt of the purchaser to the supplier until paid, and is
 15-7    recoverable at law in the same manner as the purchase price of the
 15-8    fuel.  The person may, however, claim a refund of the tax paid on
 15-9    any undyed diesel fuel used for nonhighway purposes under Section
15-10    153.222 [of this code].
15-11          (i)  A permitted supplier may not make a tax-free sale of
15-12    dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
15-13    to a purchaser using a signed statement:
15-14                (1)  for the sale of more than 3,000 gallons of dyed or
15-15    undyed diesel fuel in a single transaction; or
15-16                (2)  in a calendar month in which the supplier has
15-17    previously sold more than 10,000 gallons of dyed or undyed diesel
15-18    fuel to the purchaser.
15-19          (j)(1)  A sale of dyed diesel fuel, or undyed diesel fuel for
15-20    agricultural purposes, may be made without collecting tax from [to]
15-21    a purchaser who operates one or more motor vehicles on the public
15-22    highway and who furnishes to a permitted supplier a signed
15-23    statement and end user number or agricultural user exemption number
15-24    only as provided in this subsection.
15-25                (2)  The statement must stipulate that all the dyed or
15-26    undyed diesel fuel will be consumed by the purchaser for purposes
15-27    other than operating a motor vehicle on the public highway and that
 16-1    no dyed or undyed diesel fuel purchased on a signed statement will
 16-2    be resold or delivered into the fuel supply tanks of a motor
 16-3    vehicle.
 16-4                (3)  Diesel fuel which may be sold without collection
 16-5    of tax under this subsection must be of a type that may not be
 16-6    legally used by the purchaser for the operation of a motor vehicle
 16-7    on the public highway under state or federal law.
 16-8                (4)  Subsections (a), (c)(3), and (d) of this section
 16-9    do not apply to sales of fuel under this subsection.
16-10          (k)  A person who wants to use a signed statement to purchase
16-11    dyed diesel fuel must apply to the comptroller for an end user
16-12    number to be used in conjunction with a signed statement.  A person
16-13    who wants to use a signed statement to purchase dyed or undyed
16-14    diesel fuel for agricultural purposes must apply to the comptroller
16-15    for an agricultural user exemption number to be used in conjunction
16-16    with a signed statement.  A person may not make a tax-free sale of
16-17    any diesel fuel to a purchaser using a signed statement unless the
16-18    purchaser has an end user number or agricultural user exemption
16-19    number issued by the comptroller under this subsection.
16-20          SECTION 14.  Subsections (h) and (i), Section 153.206, Tax
16-21    Code, are amended to read as follows:
16-22          (h)  The tax on two percent of the taxable gallons of diesel
16-23    fuel sold in this state shall be allocated to the supplier making
16-24    the first taxable sale or use of the diesel fuel and timely paying
16-25    the tax to the state for the expenses of collecting, accounting
16-26    for, reporting, and remitting the tax collected and for keeping
16-27    records.
 17-1          (i)  A dyed diesel fuel bonded user, an agricultural bonded
 17-2    user, or a permitted interstate trucker is entitled to deduct
 17-3    one-half of one percent of the taxable gallons of diesel fuel on
 17-4    payment of the taxes to this state for the expense of
 17-5    recordkeeping, reporting, and remitting the tax.
 17-6          SECTION 15.  Subsection (a), Section 153.207, Tax Code, is
 17-7    amended to read as follows:
 17-8          (a)  A supplier, dyed diesel fuel bonded user, agricultural
 17-9    bonded user, interstate trucker, diesel tax prepaid user, aviation
17-10    fuel dealer, or diesel fuel jobber shall file an application with
17-11    the comptroller for one of the nonassignable permits provided for
17-12    in this subchapter.
17-13          SECTION 16.  Subsection (b), Section 153.208, Tax Code, is
17-14    amended to read as follows:
17-15          (b)  A supplier's permit authorizes a person to sell tax-free
17-16    diesel fuel to:
17-17                (1)  another supplier;
17-18                (2)  a dyed diesel fuel bonded user or agricultural
17-19    bonded user;
17-20                (3)  an aviation fuel dealer;
17-21                (4)  a diesel prepaid user if delivered into his bulk
17-22    storage facilities only; and
17-23                (5)  a person issuing a signed statement.
17-24          SECTION 17.  Section 153.209, Tax Code, is amended to read as
17-25    follows:
17-26          Sec. 153.209.  DYED DIESEL FUEL BONDED USER AND AGRICULTURAL
17-27    BONDED USER PERMITS [PERMIT].  (a)  A dyed diesel fuel bonded user
 18-1    permit authorizes a user to purchase more than 10,000 gallons a
 18-2    month of dyed diesel fuel for the user's own use [whose purchases
 18-3    of diesel fuel are predominantly for nonhighway use to purchase
 18-4    diesel fuel tax free from permitted suppliers and to report and pay
 18-5    taxes to this state on that part of the diesel fuel that is
 18-6    delivered into the fuel supply tanks of motor vehicles owned or
 18-7    operated by him].
 18-8          (b)  An agricultural bonded user permit authorizes a user to
 18-9    purchase more than 10,000 gallons of dyed and undyed diesel fuel
18-10    for the user's own use for agricultural purposes only.
18-11          SECTION 18.  Subsection (a), Section 153.210, Tax Code, is
18-12    amended to read as follows:
18-13          (a)  A diesel tax prepaid user permit authorizes a person
18-14    whose use of diesel fuel is predominantly for agricultural
18-15    nonhighway use, but who owns or operates one or more passenger cars
18-16    or light trucks only in the weight class shown in this section to
18-17    elect to prepay an annual tax on the fuel delivered from his own
18-18    tax-free storage rather than obtain an agricultural [a] bonded user
18-19    permit.  If he elects to obtain a diesel tax prepaid user permit,
18-20    he must prepay the tax at the rate prescribed for each motor
18-21    vehicle based on the class of registered gross weight.  A person
18-22    whose purchases of diesel fuel are predominantly for highway use
18-23    does not qualify for a diesel tax prepaid user permit.
18-24          SECTION 19.  Section 153.214, Tax Code, is amended to read as
18-25    follows:
18-26          Sec. 153.214.  SUPPLIER MAY PERFORM OTHER FUNCTIONS.  A
18-27    supplier may operate under the supplier's permit as a dyed diesel
 19-1    fuel bonded user, agricultural bonded user, dealer, or aviation
 19-2    fuel dealer without securing a separate permit, but is subject to
 19-3    all other conditions, requirements, and liabilities imposed on
 19-4    those permittees.
 19-5          SECTION 20.  Subsection (a), Section 153.215, Tax Code, is
 19-6    amended to read as follows:
 19-7          (a)  A supplier's permit, a dyed diesel fuel bonded user
 19-8    permit, and an agricultural bonded user permit are [is] permanent
 19-9    and valid as long as the permittee has in force and effect the
19-10    required bond or security and furnishes timely reports and
19-11    supplements as required, or until the permit is surrendered by the
19-12    holder or canceled by the comptroller.  The comptroller shall [may]
19-13    cancel a [supplier's or bonded user's] permit if no purchase, sale,
19-14    or use of diesel fuel has been reported by the permittee [supplier
19-15    or bonded user] for the prior nine [12] months.
19-16          SECTION 21.  Subsection (a), Section 153.217, Tax Code, is
19-17    amended to read as follows:
19-18          (a)  The comptroller, on or before December 20 of each
19-19    calendar year, shall mail or distribute to each supplier a printed
19-20    alphabetical list of permitted suppliers, dyed diesel fuel bonded
19-21    users, agricultural bonded users, aviation fuel dealers, and diesel
19-22    fuel jobbers.  A permitted supplier, an agricultural [a] bonded
19-23    user, and an aviation fuel dealer on the list are qualified to
19-24    purchase dyed or undyed diesel fuel tax free during the following
19-25    calendar year.  A dyed diesel fuel bonded user on the list is
19-26    qualified to purchase dyed diesel fuel tax free during the
19-27    following calendar year.  A diesel fuel jobber on the list is
 20-1    qualified to purchase diesel fuel tax-paid during the following
 20-2    calendar year.  A supplemental list of additions and deletions
 20-3    shall be delivered to each supplier each month.
 20-4          SECTION 22.  Subsections (a), (b), (c), and (j), Section
 20-5    153.218, Tax Code, are amended to read as follows:
 20-6          (a)  The comptroller shall determine the amount of security
 20-7    required of a supplier, dyed diesel fuel bonded user, agricultural
 20-8    bonded user, or diesel fuel jobber taking into consideration the
 20-9    amount of the tax that has or is expected to become due from the
20-10    person, any past history of the person as a supplier, dyed diesel
20-11    fuel bonded user, agricultural bonded user, or diesel fuel jobber,
20-12    and the necessity to protect the state against the failure to pay
20-13    the tax as it becomes due.
20-14          (b)  If it is determined that the posting of security is
20-15    necessary to protect the state, the comptroller may require a
20-16    supplier, dyed diesel fuel bonded user, or agricultural bonded user
20-17    to post a surety bond equal to two times the most amount of tax
20-18    that could accrue on tax-free diesel fuel purchased or acquired
20-19    during a reporting period.  A diesel fuel jobber shall post a bond
20-20    in an amount determined by the comptroller according to the past
20-21    payment history of the jobber.  The minimum bond for a supplier or
20-22    diesel fuel jobber is $30,000, and the maximum bond is $600,000.
20-23    The minimum bond for a dyed diesel fuel bonded user or agricultural
20-24    bonded user is $10,000, and the maximum bond is $600,000.  However,
20-25    if the comptroller determines there is undue risk of loss of tax
20-26    revenues, the comptroller may require one or more bonds or
20-27    securities in a total amount exceeding $600,000.
 21-1          (c)  A supplier, dyed diesel fuel bonded user, agricultural
 21-2    bonded user, or diesel fuel jobber who has filed a bond or other
 21-3    security under this subchapter is exempted from the bond or other
 21-4    security requirements of this subchapter and is entitled, on
 21-5    request, to have the comptroller return, refund, or release the
 21-6    bond or security if in the judgment of the comptroller the person
 21-7    has for four consecutive years continuously complied with the
 21-8    conditions of the bond or other security filed under this
 21-9    subchapter.  However, if the comptroller determines that the
21-10    revenues of the state would be jeopardized by the return, refund,
21-11    or release of the bond or security, the comptroller may elect not
21-12    to return, refund, or release the bond or security, and may
21-13    reimpose a requirement of a bond or other security as the
21-14    comptroller determines is necessary to protect the revenues of the
21-15    state.
21-16          (j)  The comptroller shall notify immediately the issuer of a
21-17    letter of credit of a final determination of the supplier's, dyed
21-18    diesel fuel bonded user's, or agricultural bonded user's delinquent
21-19    liability or a judgment secured in any action by this state to
21-20    recover diesel taxes, costs, penalties, and interest found to be
21-21    due this state by a supplier, dyed diesel fuel bonded user, or
21-22    agricultural bonded user in whose behalf the letter of credit was
21-23    issued.  The letter of credit allowed as security for the
21-24    remittance of taxes under this subchapter shall contain a statement
21-25    that the issuer agrees to respond to the comptroller's notice of
21-26    liability with amounts to satisfy the comptroller's delinquency
21-27    claim against the supplier, dyed diesel fuel bonded user, or
 22-1    agricultural bonded user.
 22-2          SECTION 23.  Section 153.219, Tax Code, is amended by
 22-3    amending Subsections (a) and (c) and adding Subsection (j) to read
 22-4    as follows:
 22-5          (a)  A supplier shall keep a record showing the number of
 22-6    gallons of:
 22-7                (1)  all diesel fuel inventories on hand at the first
 22-8    of each month;
 22-9                (2)  all diesel fuel refined, compounded, or blended;
22-10                (3)  all diesel fuel purchased or received, showing the
22-11    name of the seller, and the date of each purchase or receipt;
22-12                (4)  all diesel fuel sold, distributed, or used
22-13    showing the name of each [the] purchaser and the date of sale,
22-14    distribution, or use; and
22-15                (5)  all diesel fuel lost by fire or other accident.
22-16          (c)  A dyed diesel fuel bonded user, an agricultural bonded
22-17    user, or other user with nonhighway equipment uses who files a
22-18    claim for a refund shall keep a record showing the number of
22-19    gallons of:
22-20                (1)  inventories of all diesel fuel on hand at the
22-21    first of each month;
22-22                (2)  all diesel fuel purchased or received, showing the
22-23    name of the seller and the date of each purchase;
22-24                (3)  all diesel fuel deliveries into the fuel supply
22-25    tanks of motor vehicles;
22-26                (4)  diesel fuel used for other purposes, showing the
22-27    purpose for which used; and
 23-1                (5)  all diesel fuel lost by fire or other accident.
 23-2          (j)  A supplier shall keep:
 23-3                (1)  an itemized statement showing by load the number
 23-4    of gallons of all diesel fuel received during the preceding
 23-5    calendar month for export;
 23-6                (2)  an itemized statement showing by load the number
 23-7    of gallons of all diesel fuel exported from this state by
 23-8    destination state or country;
 23-9                (3)  an itemized statement showing by load the number
23-10    of gallons of all diesel fuel imported during the preceding
23-11    calendar month by destination state or country;
23-12                (4)  an itemized statement differentiating between dyed
23-13    and undyed diesel fuel and showing by purchaser, end user number,
23-14    or agricultural user exemption number the number of gallons of dyed
23-15    and undyed diesel fuel sold tax free to a purchaser using a signed
23-16    statement in accordance with Section 153.205; and
23-17                (5)  an itemized statement showing by purchaser and
23-18    permit number the number of gallons of dyed and undyed diesel fuel
23-19    sold tax free to dyed diesel fuel bonded users and agricultural
23-20    bonded users.
23-21          SECTION 24.  Subsection (a), Section 153.220, Tax Code, is
23-22    amended to read as follows:
23-23          (a)  A delivery of diesel fuel into the fuel supply tanks of
23-24    a motor vehicle operated for commercial purposes and described by
23-25    Section 153.001(12) shall be evidenced by an invoice issued in
23-26    duplicate by a dealer or an invoice or a distribution log issued by
23-27    a dyed diesel fuel bonded user, an agricultural bonded user, or
 24-1    other user.
 24-2          SECTION 25.  Subsections (a) and (b), Section 153.221, Tax
 24-3    Code, are amended to read as follows:
 24-4          (a)  On or before the 25th day of each month, a supplier, a
 24-5    dealer required to collect the tax under Section 153.206(b), or a
 24-6    user required to pay the tax under Section 153.206(c) shall file a
 24-7    report of diesel fuel transactions or of diesel fuel delivered by a
 24-8    user into the fuel tank of a motor vehicle owned or operated by the
 24-9    user and such supplements as the comptroller may require and remit
24-10    the amount of tax required to be collected or to be paid during the
24-11    preceding month.  A report must be filed on a form or in a manner
24-12    provided by the comptroller and contain information required by the
24-13    comptroller, showing complete and detailed information of diesel
24-14    fuel transactions or use during the preceding month.  A supplier
24-15    required to file a report under this section who has not sold,
24-16    used, or distributed any diesel fuel during the reporting period
24-17    shall file with the comptroller the report setting forth the facts
24-18    or information.  The failure of a supplier, dealer, or user to
24-19    obtain forms or software from the comptroller is no excuse for the
24-20    failure to file a report.  The report must be executed by the
24-21    supplier, dealer, or user, or his representative and is subject to
24-22    the penalties provided in this chapter.
24-23          (b)  On or before the 25th day of the month following the end
24-24    of each calendar quarter, a dyed diesel fuel bonded user, an
24-25    agricultural bonded user, or an interstate trucker shall file a
24-26    report and remit the amount of tax due [except as provided by
24-27    Subsection (d) of this section].  A report must be executed and
 25-1    filed with the comptroller and contain complete and detailed
 25-2    information on diesel fuel transactions during the preceding
 25-3    calendar quarter and other information required by the comptroller
 25-4    on forms or in a manner provided for that purpose.  A dyed diesel
 25-5    fuel bonded user, an agricultural bonded user, or an interstate
 25-6    trucker required to file a report under this section who has not
 25-7    sold, used, or distributed any diesel fuel during the reporting
 25-8    period shall file with the comptroller the report setting forth the
 25-9    facts or information.  The failure of a dyed diesel fuel bonded
25-10    user, an agricultural bonded user, or an interstate trucker to
25-11    obtain forms or software from the comptroller is no excuse for the
25-12    failure to file a report containing all the information required to
25-13    be reported.
25-14          SECTION 26.  Subsection (d), Section 153.222, Tax Code, is
25-15    amended to read as follows:
25-16          (d)  If the quantity of diesel fuel used in Texas by
25-17    auxiliary power units or power take-off equipment on any motor
25-18    vehicle can be accurately measured while the motor vehicle is
25-19    stationary by any metering or other measuring device or method
25-20    designed to measure the fuel separately from fuel used to propel
25-21    the motor vehicle, the comptroller may approve and adopt the use of
25-22    any device as a basis for determining the quantity of diesel fuel
25-23    consumed in those operations for tax credit or tax refund.  If no
25-24    separate metering device or other approved measuring method is
25-25    provided, the following credit or refund procedures are authorized.
25-26    A permitted supplier, a dyed diesel fuel bonded user, or an
25-27    agricultural bonded user who operates diesel-powered motor vehicles
 26-1    equipped with a power take-off or a diesel-powered auxiliary power
 26-2    unit mounted on the motor vehicle and using the fuel supply tank of
 26-3    the motor vehicle may be allowed a deduction from the taxable
 26-4    gallons used in this state in each motor vehicle so equipped.  The
 26-5    comptroller shall determine the percentage of the deduction.  A
 26-6    user who is required to pay the tax on diesel fuel used in motor
 26-7    vehicles so equipped may file a claim for a refund not to exceed
 26-8    the percentage allowed by the comptroller of the total taxable fuel
 26-9    used in this state in each motor vehicle so equipped.
26-10          SECTION 27.  Subsection (a), Section 153.223, Tax Code, is
26-11    amended to read as follows:
26-12          (a)  A refund claim must be filed with the comptroller on
26-13    forms provided by the comptroller and show the date of filing, the
26-14    period covered in the claim, the number of gallons of diesel fuel
26-15    subject to refund, and other information required by the
26-16    comptroller.  A claim must be supported by one or more original
26-17    invoices issued to or by the claimant, or such other information as
26-18    the comptroller deems necessary.  A permitted supplier may not file
26-19    a claim for a refund of taxes paid by a purchaser of undyed diesel
26-20    fuel.
26-21          SECTION 28.  Subsection (d), Section 153.224, Tax Code, is
26-22    amended to read as follows:
26-23          (d)  A permitted supplier, a dyed diesel fuel bonded user, or
26-24    an agricultural bonded user that determines taxes were erroneously
26-25    reported or that paid more taxes than were due this state because
26-26    of a mistake of fact or law may take a credit on the supplier, dyed
26-27    diesel fuel bonded user, or agricultural bonded user tax report on
 27-1    which the error has occurred and tax payment made to the
 27-2    comptroller.  The credit must be taken before the expiration of the
 27-3    applicable period of limitation as provided by Chapter 111.
 27-4          SECTION 29.  Subchapter C, Chapter 153, Tax Code, is amended
 27-5    by adding Sections 153.226 through 153.230 to read as follows:
 27-6          Sec. 153.226.  NOTICE REGARDING DYED DIESEL FUEL.  A notice
 27-7    stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
 27-8    USE" must be:
 27-9                (1)  provided by a permitted supplier to a person who
27-10    receives dyed diesel fuel;
27-11                (2)  provided by a seller of dyed diesel fuel to the
27-12    person's buyer; and
27-13                (3)  posted by a seller on a retail pump or bulk plant
27-14    at which the person sells dyed diesel fuel for use by the person's
27-15    buyers.
27-16          Sec. 153.227.  DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
27-17    DOCUMENTS, BILLS OF LADING, AND INVOICES.  The form of notice
27-18    required by Sections 153.226(1) and (2) must be provided when the
27-19    dyed diesel fuel is removed or sold and must appear on each
27-20    shipping document, bill of lading, cargo manifest, and invoice
27-21    accompanying the sale or removal of the dyed diesel fuel.
27-22          Sec. 153.228.  UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL.
27-23    (a)  A person may not sell or hold for sale dyed diesel fuel for
27-24    any use that the person knows or has reason to know is a taxable
27-25    use of the diesel fuel.
27-26          (b)  A person may not use or hold for use dyed diesel fuel
27-27    for a use other than a nontaxable use if the person knows or has
 28-1    reason to know that the diesel fuel is dyed diesel fuel.
 28-2          Sec. 153.229.  ALTERATION OF DYE OR MARKER IN DYED DIESEL
 28-3    FUEL PROHIBITED.  A person, with the intent to evade payment of
 28-4    tax, may not alter or attempt to alter the strength or composition
 28-5    of a dye or marker in dyed diesel fuel.
 28-6          Sec. 153.230.  USE OF DYED FUEL PROHIBITED.  (a)  A person
 28-7    may not operate a motor vehicle on a public highway in this state
 28-8    with taxable motor fuel that contains dye in the fuel supply tank
 28-9    of the motor vehicle.
28-10          (b)  This section does not apply to a use of dyed fuel that
28-11    is  lawful under the Internal Revenue Code and implementing
28-12    regulations, including use in state and local government vehicles
28-13    or buses, unless otherwise prohibited by this chapter.
28-14          SECTION 30.  Subsection (a), Section 153.401, Tax Code, is
28-15    amended to read as follows:
28-16          (a)  If a person having a permit as a distributor, supplier,
28-17    dyed diesel fuel bonded user, agricultural bonded user, dealer, or
28-18    interstate trucker fails to file a report as required by this
28-19    chapter or fails to pay a tax imposed by this chapter when due, the
28-20    person forfeits five percent of the amount due as a penalty, and if
28-21    the person fails to file the report or pay the tax within 30 days
28-22    after the day on which the tax or report is due, the person
28-23    forfeits an additional five percent.
28-24          SECTION 31.  Section 153.402, Tax Code, is amended to read as
28-25    follows:
28-26          Sec. 153.402.  PROHIBITED ACTS; CIVIL PENALTIES.  (a)  A
28-27    person forfeits to the state a civil penalty of not less than $25
 29-1    nor more than $200 if the person:
 29-2                (1)  refuses to stop and permit the inspection and
 29-3    examination of a motor vehicle transporting or using motor fuel on
 29-4    demand of a peace officer or the comptroller;
 29-5                (2)  operates a motor vehicle in this state without a
 29-6    valid interstate trucker's or a trip permit when the person is
 29-7    required to hold one of those permits;
 29-8                (3)  operates a liquefied gas-propelled motor vehicle
 29-9    that is required to be licensed in Texas, including motor vehicles
29-10    equipped with dual carburetion, and does not display a current
29-11    liquefied gas tax decal or multistate fuels tax agreement decal;
29-12                (4)  makes a tax-free sale or delivery of liquefied gas
29-13    into the fuel supply tank of a motor vehicle that does not display
29-14    a current Texas liquefied gas tax decal;
29-15                (5)  makes a taxable sale or delivery of liquefied gas
29-16    without holding a valid dealer's permit;
29-17                (6)  makes a tax-free sale or delivery of liquefied gas
29-18    into the fuel supply tank of a motor vehicle bearing out-of-state
29-19    license plates;
29-20                (7)  makes a delivery of liquefied gas into the fuel
29-21    supply tank of a motor vehicle bearing Texas license plates and no
29-22    Texas liquefied gas tax decal, unless licensed under a multistate
29-23    fuels tax agreement;
29-24                (8)  transports gasoline or diesel fuel in any cargo
29-25    tank that has a connection by pipe, tube, valve, or otherwise with
29-26    the fuel injector or carburetor or with the fuel supply tank
29-27    feeding the fuel injector or carburetor of the motor vehicle
 30-1    transporting the product;
 30-2                (9)  sells or delivers gasoline or diesel fuel from any
 30-3    fuel supply tank connected with the fuel injector or carburetor of
 30-4    a motor vehicle;
 30-5                (10)  owns or operates a motor vehicle for which
 30-6    reports or mileage records are required by this chapter without an
 30-7    operating odometer or other device in good working condition to
 30-8    record accurately the miles traveled;
 30-9                (11)  furnishes a signed statement to a supplier for
30-10    purchasing diesel fuel of a type that may be legally used by the
30-11    purchaser for the operation of a motor vehicle on the public
30-12    highway under state or federal law tax free when he owns, operates,
30-13    or acquires a diesel-powered motor vehicle;
30-14                (12)  fails or refuses to comply with or violates a
30-15    provision of this chapter; [or]
30-16                (13)  fails or refuses to comply with or violates a
30-17    comptroller's rule for administering or enforcing this chapter;
30-18                (14)  is an importer who does not obtain an import
30-19    verification number when required by this chapter; or
30-20                (15)  purchases motor fuel for export, on which the tax
30-21    imposed by this chapter has not been paid, and subsequently diverts
30-22    or causes the motor fuel to be diverted to a destination in this
30-23    state or any other state or country other than the originally
30-24    designated state or country without first obtaining a diversion
30-25    number.
30-26          (b)  An importer or exporter that violates a requirement of
30-27    Section 153.018 is liable to this state for a civil penalty of
 31-1    $2,000 or five times the amount of the unpaid tax, whichever is
 31-2    greater, for each violation.
 31-3          (c)  A person receiving motor fuel who accepts a shipping
 31-4    document that does not conform with the requirements of Section
 31-5    153.018(a) is liable to this state for a civil penalty of $2,000 or
 31-6    five times the amount of the unpaid tax, whichever is greater, for
 31-7    each occurrence.
 31-8          (d)  A person operating a bulk plant or terminal who issues a
 31-9    shipping document that does not conform with the requirements of
31-10    Section 153.018(a) is liable to this state for a civil penalty of
31-11    $2,000 or five times the amount of the unpaid tax, whichever is
31-12    greater, for each occurrence.
31-13          (e)  A person operating a terminal or bulk plant who does not
31-14    post notice as required by Section 153.018(i) is liable to this
31-15    state for a civil penalty of $100 for each day the notice is not
31-16    posted as required by Section 153.018(i).
31-17          SECTION 32.  Section 153.403, Tax Code, is amended to read as
31-18    follows:
31-19          Sec. 153.403.  CRIMINAL OFFENSES.  Except as provided by
31-20    Section 153.404 of this code, a person commits an offense if the
31-21    person:
31-22                (1)  refuses to stop and permit the inspection and
31-23    examination of a motor vehicle transporting or using motor fuel on
31-24    the demand of a peace officer or the comptroller;
31-25                (2)  is required to hold a valid trip permit or
31-26    interstate trucker's permit, but operates a motor vehicle in this
31-27    state without a valid trip permit or interstate trucker's permit;
 32-1                (3)  operates a liquefied gas-propelled motor vehicle
 32-2    that is required to be licensed in Texas, including a motor vehicle
 32-3    equipped with dual carburetion, and does not display a current
 32-4    liquefied gas tax decal or multistate fuels tax agreement decal;
 32-5                (4)  transports gasoline or diesel fuel in any cargo
 32-6    tank that has a connection by pipe, tube, valve, or otherwise with
 32-7    the fuel injector or carburetor or with the fuel supply tank
 32-8    feeding the fuel injector or carburetor of the motor vehicle
 32-9    transporting the product;
32-10                (5)  sells or delivers gasoline or diesel fuel from a
32-11    fuel supply tank that is connected with the fuel injector or
32-12    carburetor of a motor vehicle;
32-13                (6)  owns or operates a motor vehicle for which reports
32-14    or mileage records are required by this chapter without an
32-15    operating odometer or other device in good working condition to
32-16    record accurately the miles traveled;
32-17                (7)  as a diesel tax prepaid user fails to prepay the
32-18    tax on every diesel-powered motor vehicle owned or operated by him;
32-19                (8)  uses dyed diesel fuel, on which a tax is required
32-20    to be paid, for the operation of a motor vehicle on a public
32-21    highway;
32-22                (9)  makes a tax-free sale or delivery of liquefied gas
32-23    into the fuel supply tank of a motor vehicle that does not display
32-24    a current Texas liquefied gas tax decal;
32-25                (10) [(9)]  makes a sale or delivery of liquefied gas
32-26    on which the person knows the tax is required to be collected, if
32-27    at the time the sale is made the person does not hold a valid
 33-1    dealer's permit;
 33-2                (11) [(10)]  makes a tax-free sale or delivery of
 33-3    liquefied gas into the fuel supply tank of a motor vehicle bearing
 33-4    out-of-state license plates;
 33-5                (12) [(11)]  makes a delivery of liquefied gas into the
 33-6    fuel supply tank of a motor vehicle bearing Texas license plates
 33-7    and no Texas liquefied gas tax decal, unless licensed under a
 33-8    multistate fuels tax agreement;
 33-9                (13) [(12)]  refuses to permit the comptroller or the
33-10    attorney general to inspect, examine, or audit a book or record
33-11    required to be kept by a distributor, supplier, dyed diesel fuel
33-12    bonded user, agricultural bonded user, dealer, interstate trucker,
33-13    aviation fuel dealer, jobber, common or contract carrier, or any
33-14    person required to hold a permit under this chapter;
33-15                (14) [(13)]  refuses to permit the comptroller or the
33-16    attorney general to inspect or examine any plant, equipment,
33-17    materials, or premises where motor fuel is produced, processed,
33-18    stored, sold, delivered, or used;
33-19                (15) [(14)]  refuses to permit the comptroller or the
33-20    attorney general to measure or gauge the contents of or take
33-21    samples from a storage tank or container on premises where motor
33-22    fuel is produced, processed, stored, sold, delivered, or used;
33-23                (16) [(15)]  is a distributor, dyed diesel fuel bonded
33-24    user, agricultural bonded user, interstate trucker, or supplier and
33-25    fails or refuses to make or deliver to the comptroller a report
33-26    required by this chapter to be made and delivered to the
33-27    comptroller;
 34-1                (17)  is an importer who does not obtain an import
 34-2    verification number when required by this chapter;
 34-3                (18)  purchases motor fuel for export, on which the tax
 34-4    imposed by this chapter has not been paid, and subsequently diverts
 34-5    or causes the motor fuel to be diverted to a destination in this
 34-6    state or any other state or country other than the originally
 34-7    designated state or country without first obtaining a diversion
 34-8    number;
 34-9                (19) [(16)]  conceals motor fuel with the intent of
34-10    engaging in any conduct proscribed by this chapter or refuses to
34-11    make sales of motor fuel on the volume-corrected basis prescribed
34-12    by this chapter;
34-13                (20) [(17)]  refuses, while transporting motor fuel, to
34-14    stop the motor vehicle he is operating when called on to do so by a
34-15    person authorized to stop the motor vehicle;
34-16                (21) [(18)]  refuses to surrender a motor vehicle and
34-17    cargo for impoundment after being ordered to do so by a person
34-18    authorized to impound the motor vehicle and cargo;
34-19                (22) [(19)  transports motor fuel for which a cargo
34-20    manifest is required to be carried without possessing or exhibiting
34-21    on demand by an officer authorized to make the demand a cargo
34-22    manifest containing the information required to be shown on the
34-23    manifest;]
34-24                [(20)]  mutilates, destroys, or secretes a book or
34-25    record required by this chapter to be kept by a distributor,
34-26    supplier, dyed diesel fuel bonded user, agricultural bonded user,
34-27    dealer, interstate trucker, aviation fuel dealer, jobber, or person
 35-1    required to hold a permit under this chapter;
 35-2                (23) [(21)]  is a distributor, supplier, dyed diesel
 35-3    fuel bonded user, agricultural bonded user, dealer, interstate
 35-4    trucker, aviation fuel dealer, jobber, or other person required to
 35-5    hold a permit under this chapter, or the agent or employee of one
 35-6    of those persons and makes a false entry or fails to make an entry
 35-7    in the books and records required under this chapter to be made by
 35-8    the person or fails to retain a document as required by this
 35-9    chapter;
35-10                (24) [(22)]  transports in any manner motor fuel under
35-11    a false cargo manifest or shipping document, or transports in any
35-12    manner motor fuel to a location without delivering at the same time
35-13    a shipping document relating to that shipment;
35-14                (25) [(23)]  engages in a motor fuel transaction that
35-15    requires that the person have a permit under this chapter without
35-16    then and there holding the required permit;
35-17                (26) [(24)]  makes and delivers to the comptroller a
35-18    report required under this chapter to be made and delivered to the
35-19    comptroller, if the report contains false information;
35-20                (27) [(25)]  forges, falsifies, or alters an invoice
35-21    prescribed by law;
35-22                (28) [(26)]  makes any statement, knowing said
35-23    statement to be false, in a claim for a tax refund filed with the
35-24    comptroller;
35-25                (29) [(27)]  furnishes to a supplier a signed statement
35-26    for purchasing diesel fuel of a type that may be legally used by
35-27    the purchaser for the operation of a motor vehicle on the public
 36-1    highway under state or federal law tax free when he owns, operates,
 36-2    or acquires a diesel-powered motor vehicle;
 36-3                (30) [(28)]  holds an aviation fuel dealer's permit and
 36-4    makes a taxable sale or use of any gasoline or diesel fuel;
 36-5                (31) [(29)]  fails to remit any tax funds collected by
 36-6    a distributor, supplier, dyed diesel fuel bonded user, agricultural
 36-7    bonded user, dealer, interstate trucker, jobber, or any other
 36-8    person required to hold a permit under this chapter;
 36-9                (32) [(30)]  makes a sale of diesel fuel tax free into
36-10    a storage facility of a person who:
36-11                      (A)  is not permitted as a supplier, as an
36-12    aviation fuel dealer, as a dyed diesel fuel bonded user, as an
36-13    agricultural bonded user, or as a diesel tax prepaid user of diesel
36-14    fuel; or
36-15                      (B)  does not furnish to the permitted supplier a
36-16    signed statement prescribed in Section 153.205 of this code;
36-17                (33) [(31)]  makes a sale of gasoline tax free to any
36-18    person who is not permitted as either a distributor or an aviation
36-19    fuel dealer;
36-20                (34) [(32)]  is a dealer who purchases any motor fuel
36-21    tax free when not authorized to make a tax-free purchase under this
36-22    chapter; [or]
36-23                (35) [(33)]  is a dealer who purchases motor fuel with
36-24    the intent to evade any tax imposed by this chapter, or who accepts
36-25    a delivery of motor fuel by any means and does not at the same time
36-26    accept or receive a shipping document relating to the delivery;
36-27                (36)  transports motor fuel for which a cargo manifest
 37-1    or shipping document is required to be carried without possessing
 37-2    or exhibiting on demand by an officer authorized to make the demand
 37-3    a cargo manifest or shipping document containing the information
 37-4    required to be shown on the manifest or shipping document;
 37-5                (37)  imports, sells, uses, distributes, or stores
 37-6    motor fuel within this state on which the taxes imposed by this
 37-7    chapter are owed but have not been first paid to or reported by the
 37-8    holder of a distributor, supplier, liquefied gas dealer, interstate
 37-9    trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
37-10    agricultural bonded user permit;
37-11                (38)  blends products together to produce a blended
37-12    fuel that is offered for sale, sold, or used that expands the
37-13    volume of the original product to evade paying applicable motor
37-14    fuel taxes; or
37-15                (39)  evades or attempts to evade in any manner a tax
37-16    imposed on motor fuel by this chapter.
37-17          SECTION 33.  Article 12.01, Code of Criminal Procedure, is
37-18    amended to read as follows:
37-19          Art. 12.01.  FELONIES.  Except as provided in Article 12.03,
37-20    felony indictments may be presented within these limits, and not
37-21    afterward:
37-22                (1)  no limitation:  murder and manslaughter;
37-23                (2)  ten years from the date of the commission of the
37-24    offense:
37-25                      (A)  theft of any estate, real, personal or
37-26    mixed, by an executor, administrator, guardian or trustee, with
37-27    intent to defraud any creditor, heir, legatee, ward, distributee,
 38-1    beneficiary or settlor of a trust interested in such estate;
 38-2                      (B)  theft by a public servant of government
 38-3    property over which he exercises control in his official capacity;
 38-4                      (C)  forgery or the uttering, using or passing of
 38-5    forged instruments; or
 38-6                      (D)  indecency with a child under Section
 38-7    21.11(a)(2), Penal Code;
 38-8                (3)  seven years from the date of the commission of the
 38-9    offense:
38-10                      (A)  misapplication of fiduciary property or
38-11    property of a financial institution;
38-12                      (B)  securing execution of document by deception;
38-13    or
38-14                      (C)  a violation under Sections 153.403(22)-(39),
38-15    Tax Code;
38-16                (4)  five years from the date of the commission of the
38-17    offense:
38-18                      (A)  theft, burglary, robbery;
38-19                      (B)  arson; or
38-20                      (C)  sexual assault, except as provided in
38-21    Subsection (5) of this article;
38-22                (5)  ten years from the 18th birthday of the victim of
38-23    the offense:
38-24                      (A)  indecency with a child under Section
38-25    21.11(a)(1), Penal Code;
38-26                      (B)  sexual assault under Section 22.011(a)(2),
38-27    Penal Code;
 39-1                      (C)  aggravated sexual assault under Section
 39-2    22.021(a)(1)(B), Penal Code; or
 39-3                (6)  three years from the date of the commission of the
 39-4    offense:  all other felonies.
 39-5          SECTION 34.  Subsections (b), (c), and (d), Section 153.404,
 39-6    Tax Code, are amended to read as follows:
 39-7          (b)  Each day that a refusal prohibited under Section
 39-8    153.403(13), [153.403(12), (13), or] (14), or (15) [of this code]
 39-9    continues is a separate offense.
39-10          (c)  The prohibition under Section 153.403(32) [153.403(30)
39-11    of this code] does not apply to the tax-free sale or distribution
39-12    of diesel fuel authorized by Section 153.203(1), (2), or (5) [of
39-13    this code].
39-14          (d)  The prohibition under Section 153.403(33) [153.403(31)
39-15    of this code] does not apply to the tax-free sale or distribution
39-16    of gasoline under Section 153.104(2) or (4) [of this code].
39-17          SECTION 35.  Section 153.405, Tax Code, is amended to read as
39-18    follows:
39-19          Sec. 153.405.  CRIMINAL PENALTIES.  (a)  An offense under
39-20    Section 153.403(1), (2), (3), (4), (5), (6), [or] (7), or (8) [of
39-21    this code] is a Class C misdemeanor.
39-22          (b)  An offense under Section 153.403(9) [153.403(8), (9)],
39-23    (10), (11), (12), (13), (14), [or] (15), (16), (17), or (18) [of
39-24    this code] is a Class B misdemeanor.
39-25          (c)  An offense under Section 153.403(19), (20), or (21)
39-26    [153.403(16), (17), (18), or (19) of this code] is a Class A
39-27    misdemeanor.
 40-1          (d)  An offense under Section 153.403(22) [153.403(20), (21),
 40-2    (22)], (23), (24), (25), (26), [or] (27), (28), or (29) [of this
 40-3    code] is a felony of the third degree.
 40-4          (e)  An offense under Section 153.403(30) [153.403(28), (29),
 40-5    (30)], (31), (32), [or] (33), (34), (35), (36), (37), (38), or (39)
 40-6    [of this code] is a felony of the second degree.
 40-7          (f)  Violations of three or more separate offenses under
 40-8    Sections 153.403(22) [153.403(20)] through (29) [(27) of this code]
 40-9    committed pursuant to one scheme or continuous course of conduct
40-10    may be considered as one offense and punished as a felony of the
40-11    second degree.
40-12          SECTION 36.  The change in law made by this Act does not
40-13    apply to an offense if the prosecution of the offense became barred
40-14    by limitation before the effective date of this Act.  The
40-15    prosecution of that offense remains barred as though this Act had
40-16    not taken effect.
40-17          SECTION 37.  If Article 12.01, Code of Criminal Procedure, as
40-18    amended by this Act conflicts with Article 12.01 of that code, as
40-19    amended by S.B. No. 70, Acts of the 76th Legislature, Regular
40-20    Session, 1999, the change in law made by this Act to Article 12.01
40-21    controls over the change made by S.B. No. 70.
40-22          SECTION 38.  This Act takes effect September 1, 2000, and
40-23    applies to motor fuel that is imported or exported on or after that
40-24    date or on which the first sale occurs on or after that date.
40-25    Motor fuel imported or exported before that date or for which the
40-26    first sale occurs before that date is governed by the law in effect
40-27    when the motor fuel was imported, exported, or first sold, and that
 41-1    law is continued in effect for that purpose.
 41-2          SECTION 39.  The importance of this legislation and the
 41-3    crowded condition of the calendars in both houses create an
 41-4    emergency and an imperative public necessity that the
 41-5    constitutional rule requiring bills to be read on three several
 41-6    days in each house be suspended, and this rule is hereby suspended.