81R3329 CBH-F
 
  By: Williams S.B. No. 1495
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the taxation of motor fuels.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 101.009(b), Tax Code, is amended to read
  as follows:
         (b)  Cigarette tax revenue allocated under Section
  154.603(b) [of this code] shall be allocated as provided by Section
  154.603 [of this code]. Motor fuel tax revenue shall be allocated
  and deposited as provided by Subchapter F, Chapter 162 [of Chapter
  153 of this code].
         SECTION 2.  Section 111.006(g), Tax Code, is amended to read
  as follows:
         (g)  Information made confidential by Subsection (a)(2) that
  relates to a taxpayer's responsibilities under Chapter 162 [153]
  may be examined by an official of another state or of the United
  States if:
               (1)  the official has information that would assist the
  comptroller in administering Chapter 162 [153];
               (2)  the comptroller is conducting or may conduct an
  examination or a criminal investigation of the taxpayer that is the
  subject of the information made confidential by Subsection (a)(2);
  and
               (3)  a reciprocal agreement exists allowing the
  comptroller to examine information under the control of the
  official in a manner substantially equivalent to the official's
  access to information under this subsection.
         SECTION 3.  Section 111.060(d), Tax Code, is amended to read
  as follows:
         (d)  Subsection (c) does not apply to the taxes imposed by
  Chapters 152 and 211 or under an agreement made under Section
  162.003 [153.017].
         SECTION 4.  Section 111.064(d), Tax Code, is amended to read
  as follows:
         (d)  This section does not apply to an amount paid to the
  comptroller under Title 6, Property Code, or under an agreement
  made under Section 162.003 [153.017].
         SECTION 5.  Section 111.107(a), Tax Code, is amended to read
  as follows:
         (a)  Except as otherwise expressly provided, a person may
  request a refund or a credit or the comptroller may make a refund or
  issue a credit for the overpayment of a tax imposed by this title at
  any time before the expiration of the period during which the
  comptroller may assess a deficiency for the tax and not thereafter
  unless the refund or credit is requested:
               (1)  under Subchapter B of Chapter 112 and the refund is
  made or the credit is issued under a court order;
               (2)  under the provision of Section 111.104(c)(3)
  applicable to a refund claim filed after a jeopardy or deficiency
  determination becomes final; or
               (3)  under Chapter 162 [153], except Section 162.126(f)
  [153.1195(e)], 162.128(d) [153.121(d)], 162.228(f) [153.2225(e)],
  or 162.230(d) [153.224(d)].
         SECTION 6.  Section 151.308, Tax Code, is amended to read as
  follows:
         Sec. 151.308.  ITEMS TAXED BY OTHER LAW. (a)  The following
  are exempted from the taxes imposed by this chapter:
               (1)  oil as taxed by Chapter 202;
               (2)  sulphur as taxed by Chapter 203;
               (3)  motor fuels and special fuels as defined, taxed,
  or exempted by Chapter 162 [153];
               (4)  cement as taxed by Chapter 181;
               (5)  motor vehicles, trailers, and semitrailers as
  defined, taxed, or exempted by Chapter 152, other than a mobile
  office as defined by Section 152.001(16);
               (6)  mixed beverages, ice, or nonalcoholic beverages
  and the preparation or service of these items if the receipts are
  taxable by Chapter 183;
               (7)  alcoholic beverages when sold to the holder of a
  private club registration permit or to the agent or employee of the
  holder of a private club registration permit if the holder or agent
  or employee is acting as the agent of the members of the club and if
  the beverages are to be served on the premises of the club;
               (8)  oil well service as taxed by Subchapter E, Chapter
  191; and
               (9)  insurance premiums subject to gross premiums
  taxes.
         (b)  Natural gas is exempted under Subsection (a)(3) only to
  the extent that the gas is taxed as a motor fuel under Chapter 162
  [153].
         SECTION 7.  Section 162.001, Tax Code, is amended by
  amending Subdivisions (9), (19), (20), (29), (31), (42), (43), and
  (55) and adding Subdivision (10-a) to read as follows:
               (9)  "Blending" means the mixing together of one or
  more [petroleum] products with other products [another product],
  regardless of the original character of the product blended, that
  produces a product that is offered for sale, sold, or used as a
  motor fuel or [if the product obtained by the blending] is capable
  of use as fuel [in the generation of power] for the propulsion of a
  motor vehicle. The term does not include mixing that occurs in the
  process of refining by the original refiner of crude petroleum or
  the commingling of products during transportation in a pipeline.
               (10-a)  "Bulk storage" means a container of more than
  10 gallons.
               (19)  "Diesel fuel" means kerosene or another liquid,
  or a combination of liquids blended together, offered for sale,
  sold, [that is suitable for or] used, or capable of use as fuel for
  the propulsion of a diesel-powered engine [motor vehicles]. The
  term includes products commonly referred to as kerosene, light
  cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel
  fuel, aviation jet fuel, biodiesel, distillate fuel, cutter stock,
  or heating oil, but does not include gasoline, aviation gasoline,
  or liquefied gas.
               (20)  "Distributor" means a person who [acquires motor
  fuel from a licensed supplier, permissive supplier, or another
  licensed distributor and who] makes sales of motor fuel at
  wholesale.  A distributor's [and whose] activities may also include
  sales of motor fuel at retail.
               (29)  "Gasoline" means any liquid or combination of
  liquids blended together, offered for sale, sold, [or] used, or
  capable of use as [the] fuel for the propulsion of a
  gasoline-powered engine. The term includes gasohol, aviation
  gasoline, and blending agents, but does not include racing
  gasoline, diesel fuel, aviation jet fuel, or liquefied gas.
               (31)  "Gasoline blended fuel" means a mixture composed
  of gasoline and other liquids, including gasoline blend stocks,
  gasohol, ethanol, methanol, fuel grade alcohol, and resulting
  blends, other than a de minimus amount of a product such as
  carburetor detergent or oxidation inhibitor, that is offered for
  sale, sold, [can be] used, or is capable of use as fuel for a
  gasoline-powered engine [gasoline in a motor vehicle].
               (42)  "Motor fuel" means gasoline, diesel fuel,
  liquefied gas, gasoline blended fuel, and other products that are
  offered for sale, sold, [can be] used, or are capable of use as fuel
  for the propulsion of [to propel] a motor vehicle.
               (43)  "Motor fuel transporter" means a person who
  transports  gasoline, diesel fuel, [or] gasoline blended fuel, or
  any other motor fuel, except liquefied gas, outside the bulk
  transfer/terminal system by means of a transport vehicle, a
  railroad tank car, or a marine vessel. The term does not include a
  person who:
                     (A)  is licensed under this chapter as a supplier,
  permissive supplier, or distributor; and
                     (B)  exclusively transports gasoline, diesel
  fuel, gasoline blended fuel, or any other motor fuel to which the
  person retains ownership while the fuel is being transported by the
  person.
               (55)  "Shipping document" means a delivery document
  issued [by a terminal or bulk plant operator] in conjunction with
  the sale, transfer, or transport [removal] of motor fuel [from the
  terminal or bulk plant]. A shipping document issued by a terminal
  operator shall be machine printed. All other shipping documents [A
  shipping document issued by a bulk plant] shall be typed or
  handwritten on a preprinted form or machine printed.
         SECTION 8.  Section 162.004, Tax Code, is amended by
  amending Subsections (a) and (b) and adding Subsections (a-1) and
  (h) to read as follows:
         (a)  A person may not transport in this state any motor fuel
  by barge, vessel, railroad tank car, or transport vehicle unless
  the person has a shipping document for the motor fuel that complies
  with this section.
         (a-1)  A terminal operator or operator of a bulk plant shall
  give a shipping document to the person who operates the barge,
  vessel, railroad tank car, or transport vehicle into which motor
  fuel is loaded at the terminal rack or bulk plant rack.
         (b)  A [The] shipping document [issued by the terminal
  operator or operator of a bulk plant] shall contain the following
  information and any other information required by the comptroller:
               (1)  the terminal control number of the terminal or
  physical address of the bulk plant from which the motor fuel was
  received;
               (2)  the name [and license number] of the purchaser;
               (3)  the date the motor fuel was loaded;
               (4)  the net gallons loaded, or the gross gallons
  loaded if the fuel was purchased from a bulk plant;
               (5)  the destination state of the motor fuel, as
  represented by the purchaser of the motor fuel or the purchaser's
  agent; and
               (6)  a description of the product being transported.
         (h)  This section does not apply to motor fuel that is
  delivered into the fuel supply tank of a motor vehicle.
         SECTION 9.  Sections 162.016(a), (b), (d), and (e), Tax
  Code, are amended to read as follows:
         (a)  A person may not import motor fuel to a destination in
  this state or export motor fuel to a destination outside this state
  by any means unless the person possesses a shipping document for
  that fuel [created by the terminal or bulk plant at which the fuel
  was received]. The shipping document must include:
               (1)  the name and physical address of the terminal or
  bulk plant from which the motor fuel was received for import or
  export;
               (2)  the name [and federal employer identification
  number, or the social security number if the employer
  identification number is not available,] of the carrier
  transporting the motor fuel;
               (3)  the date the motor fuel was loaded;
               (4)  the type of motor fuel;
               (5)  the number of gallons:
                     (A)  in temperature-adjusted gallons if purchased
  from a terminal for export or import; or
                     (B)  in temperature-adjusted gallons or in gross
  gallons if purchased from a bulk plant;
               (6)  the destination of the motor fuel as represented
  by the purchaser of the motor fuel and the number of gallons of the
  fuel to be delivered, if delivery is to only one state;
               (7)  the name [, federal employer identification
  number, license number,] and physical address of the purchaser of
  the motor fuel;
               (8)  the name of the person responsible for paying the
  tax imposed by this chapter, as given to the terminal by the
  purchaser if different from the licensed supplier or distributor;
  [and]
               (9)  the destination state of each portion of a split
  load of motor fuel if the motor fuel is to be delivered to more than
  one state; and
               (10)  any other information that, in the opinion of the
  comptroller, is necessary for the proper administration of this
  chapter.
         (b)  The [terminal or bulk plant shall provide the] shipping
  documents shall be provided to the importer or exporter.
         (d)  A seller, transporter, or receiver of [terminal, a bulk
  plant, the carrier, the licensed distributor or supplier, and the
  person that received the] motor fuel shall:
               (1)  retain a copy of the shipping document until at
  least the fourth anniversary of the date the fuel is received; and
               (2)  provide a copy of the document to the comptroller
  or any law enforcement officer not later than the 10th working day
  after the date a request for the copy is received.
         (e)  An importer or exporter shall keep in the person's
  possession the shipping document [issued by the terminal or bulk
  plant] when transporting motor fuel imported into this state or for
  export from this state. The importer or exporter shall show the
  document to the comptroller or a peace officer on request. The
  comptroller may delegate authority to inspect the document to other
  governmental agencies. The importer or exporter shall provide a
  copy of the shipping document to the person that receives the fuel
  when it is delivered.
         SECTION 10.  Sections 162.101(a) through (e), Tax Code, are
  amended to read as follows:
         (a)  A tax is imposed on the removal of gasoline from the
  terminal using the terminal rack, other than by bulk transfer. The
  supplier or permissive supplier is liable for and shall collect the
  tax imposed by this subchapter from the person who orders the
  withdrawal at the terminal rack.
         (b)  A tax is imposed at the time gasoline is imported into
  this state, other than by a bulk transfer, for delivery to a
  destination in this state. The supplier or permissive supplier is
  liable for and shall collect the tax imposed by this subchapter from
  the person who imports the gasoline into this state. If the seller
  is not a supplier or permissive supplier, then the person who
  imports the gasoline into this state is liable for and shall pay the
  tax.
         (c)  A tax is imposed on the removal [sale or transfer] of
  gasoline from [in] the bulk transfer/terminal system in this state
  [by a supplier to a person who does not hold a supplier's license].
  The supplier is liable for and shall collect the tax imposed by this
  subchapter from the person who orders the removal from [sale or
  transfer in] the bulk transfer terminal system.
         (d)  A tax is imposed on gasoline brought into this state in a
  motor fuel supply tank or tanks of a motor vehicle operated by a
  person required to be licensed as an interstate trucker. The
  interstate trucker is liable for and shall pay the tax.
         (e)  A tax is imposed on the blending of gasoline at the point
  gasoline blended fuel is made in this state outside the bulk
  transfer/terminal system. The blender is liable for and shall pay
  the tax. The number of gallons of gasoline blended fuel on which
  the tax is imposed is equal to the difference between the number of
  gallons of blended fuel made and the number of gallons of previously
  taxed gasoline used to make the blended fuel.
         SECTION 11.  Section 162.103(d), Tax Code, is amended to
  read as follows:
         (d)  A person who sells gasoline in this state, other than by
  a bulk transfer, on which tax has not been paid for any purpose
  other than a purpose exempt under Section 162.104 shall at the time
  of sale collect the tax from the purchaser or recipient of gasoline
  in addition to the selling price and is liable to this state for the
  taxes imposed [collected at the time and] in the manner provided by
  this chapter.
         SECTION 12.  Sections 162.112(b) and (c), Tax Code, are
  amended to read as follows:
         (b)  A licensed supplier, [or] permissive supplier, or
  distributor who sells gasoline tax-free to a person whose
  supplier's, [or] permissive supplier's, or aviation fuel dealer's
  license has been canceled or revoked under this chapter is liable
  for any tax due on gasoline sold after receiving notice of the
  cancellation or revocation.
         (c)  The comptroller shall notify all license holders under
  this chapter when a canceled or revoked license is subsequently
  reinstated and include in the notice the effective date of the
  reinstatement. Sales to the supplier, [or] permissive supplier, or
  aviation fuel dealer after the effective date of the reinstatement
  may be made tax-free.
         SECTION 13.  Section 162.115, Tax Code, is amended by adding
  Subsection (n) to read as follows:
         (n)  In addition to the records specifically required by this
  section, a license holder shall keep any other record required by
  the comptroller.
         SECTION 14.  Section 162.128(d), Tax Code, is amended to
  read as follows:
         (d)  A supplier, [or] permissive supplier, distributor,
  importer, exporter, or blender that determines taxes were
  erroneously reported and remitted or that paid more taxes than were
  due this state because of a mistake of fact or law may take a credit
  on the monthly tax report on which the error has occurred and tax
  payment made to the comptroller. The credit must be taken before
  the expiration of the applicable period of limitation as provided
  by Chapter 111.
         SECTION 15.  Sections 162.201(a) through (e), Tax Code, are
  amended to read as follows:
         (a)  A tax is imposed on the removal of diesel fuel from the
  terminal using the terminal rack other than by bulk transfer. The
  supplier or permissive supplier is liable for and shall collect the
  tax imposed by this subchapter from the person who orders the
  withdrawal at the terminal rack.
         (b)  A tax is imposed at the time diesel fuel is imported into
  this state, other than by a bulk transfer, for delivery to a
  destination in this state. The supplier or permissive supplier is
  liable for and shall collect the tax imposed by this subchapter from
  the person who imports the diesel fuel into this state. If the
  seller is not a supplier or permissive supplier, the person who
  imports the diesel fuel into this state is liable for and shall pay
  the tax.
         (c)  A tax is imposed on the removal [sale or transfer] of
  diesel fuel from [in] the bulk transfer/terminal system in this
  state [by a supplier to a person who does not hold a supplier's
  license]. The supplier is liable for and shall collect the tax
  imposed by this subchapter from the person who orders the removal
  from [sale or transfer in] the bulk transfer/terminal system.
         (d)  A tax is imposed on diesel fuel brought into this state
  in the motor fuel supply tank or tanks of a motor vehicle operated
  by a person required to be licensed as an interstate trucker. The
  interstate trucker is liable for and shall pay the tax.
         (e)  A tax is imposed on the blending of diesel fuel at the
  point blended diesel fuel is made in this state outside the bulk
  transfer/terminal system. The blender is liable for and shall pay
  the tax. The number of gallons of blended diesel fuel on which the
  tax is imposed is equal to the difference between the number of
  gallons of blended fuel made and the number of gallons of previously
  taxed diesel fuel used to make the blended fuel.
         SECTION 16.  Section 162.203(d), Tax Code, is amended to
  read as follows:
         (d)  A person who sells diesel fuel in this state, other than
  by a bulk transfer, on which tax has not been paid for any purpose
  other than a purpose exempt under Section 162.204 shall at the time
  of sale collect the tax from the purchaser or recipient of diesel
  fuel in addition to the selling price and is liable to this state
  for the taxes imposed [collected at the time and] in the manner
  provided by this chapter.
         SECTION 17.  Section 162.205(b), Tax Code, is amended to
  read as follows:
         (b)  A person must obtain a license as a dyed diesel fuel
  bonded user to purchase dyed diesel fuel in amounts that exceed the
  limitations prescribed by Section 162.206(c). This subsection does
  not affect the right of a purchaser to purchase not more than the
  number of [10,000] gallons of dyed diesel fuel prescribed by
  Section 162.206(c) each month for the purchaser's own use using a
  signed statement [under Section 162.206].
         SECTION 18.  Section 162.206, Tax Code, is amended by
  amending Subsections (c), (d), and (j) and adding Subsections
  (c-1), (g-1), and (k) to read as follows:
         (c)  A person may not make a tax-free purchase and a licensed
  supplier or distributor may not make a tax-free sale to a purchaser
  of any dyed diesel fuel under this section using a signed statement
  for the first sale or purchase and for any subsequent sale or
  purchase[:
               [(1)     for the purchase or the sale of more than 7,400
  gallons of dyed diesel fuel in a single delivery; or
               [(2)]  in a calendar month for [in which the person has
  previously purchased from all sources or in which the licensed
  supplier has previously sold to that purchaser] more than:
               (1) [(A)]  10,000 gallons of dyed diesel fuel;
               (2) [(B)]  25,000 gallons of dyed diesel fuel if the
  purchaser stipulates in the signed statement that all of the fuel
  will be consumed by the purchaser in the original production of, or
  to increase the production of, oil or gas and furnishes the licensed 
  supplier or distributor with a letter of exception issued by the
  comptroller; or
               (3) [(C)]  25,000 gallons of dyed diesel fuel if the
  purchaser stipulates in the signed statement that all of the fuel
  will be consumed by the purchaser in agricultural off-highway
  equipment.
         (c-1)  The monthly limitations prescribed by Subsection (c)
  apply regardless of whether the dyed diesel fuel is purchased in a
  single transaction during that month or in multiple transactions
  during that month.
         (d)  Any gallons purchased or sold in excess of the
  limitations prescribed by Subsection (c) constitute a taxable
  purchase or sale. [The purchaser paying the tax on dyed diesel fuel
  in excess of the limitations prescribed by Subsection (c) may claim
  a refund of the tax paid on any dyed diesel fuel used for nonhighway
  purposes under Section 162.227.] A purchaser that exceeds the
  limitations prescribed by Subsection (c) shall be required to
  obtain a dyed diesel fuel bonded user license.
         (g-1)  For purposes of this section, the purchaser is
  considered to have temporarily furnished the signed statement to
  the licensed supplier or distributor if the supplier or distributor
  verifies that the purchaser has an end user number issued by the
  comptroller. The licensed supplier or distributor shall use the
  comptroller's Internet website or other materials provided or
  produced by the comptroller to verify this information until the
  purchaser provides to the supplier or distributor a completed
  signed statement.
         (j)  A taxable use of any part of the dyed diesel fuel
  purchased under a signed statement shall, in addition to
  application of any criminal penalty, forfeit the right of the
  person to purchase dyed diesel fuel tax-free for a period of one
  year from the date of the offense. Any tax, interest, and penalty
  found to be due through false or erroneous execution or continuance
  of a promissory statement by the purchaser, if assessed to the
  licensed supplier or distributor, is a debt of the purchaser to the
  licensed supplier or distributor until paid and is recoverable at
  law in the same manner as the purchase price of the fuel. [The
  person may, however, claim a refund of the tax paid on any dyed
  diesel fuel used for nonhighway purposes under Section 162.227.]
         (k)  Properly completed signed statements should be in the
  possession of the licensed supplier or distributor at the time the
  sale of dyed diesel fuel occurs. If the licensed supplier or
  distributor is not in possession of the signed statements within 60
  days after the date written notice requiring possession of them is
  given to the licensed supplier or distributor by the comptroller,
  exempt sales claimed by the licensed supplier or distributor that
  require delivery of the signed statements shall be disallowed. If
  the licensed supplier or distributor delivers the signed statements
  to the comptroller within the 60-day period, the comptroller may
  verify the reason or basis for the signed statements before
  allowing the exempt sales. An exempt sale may not be granted on the
  basis of signed statements delivered to the comptroller after the
  60-day period.
         SECTION 19.  Sections 162.213(b) and (c), Tax Code, are
  amended to read as follows:
         (b)  A licensed supplier or permissive supplier who sells
  diesel fuel tax-free to a supplier, [or] permissive supplier, or
  aviation fuel dealer whose license has been canceled or revoked
  under this chapter, or who sells dyed diesel fuel to a distributor
  or dyed diesel fuel bonded user whose license has been canceled or
  revoked under this chapter, is liable for any tax due on diesel fuel
  sold after receiving notice of the cancellation or revocation.
         (c)  The comptroller shall notify all license holders under
  this chapter when a canceled or revoked license is subsequently
  reinstated and include in the notice the effective date of the
  reinstatement. Sales to a supplier, permissive supplier,
  distributor, aviation fuel dealer, or dyed diesel fuel bonded user
  after the effective date of the reinstatement may be made tax-free.
         SECTION 20.  Section 162.216, Tax Code, is amended by adding
  Subsection (o) to read as follows:
         (o)  In addition to the records specifically required by this
  section, a license holder shall keep any other record required by
  the comptroller.
         SECTION 21.  Section 162.230(d), Tax Code, is amended to
  read as follows:
         (d)  A supplier, [or] permissive supplier, distributor,
  importer, exporter, or blender that determines taxes were
  erroneously reported and remitted or that paid more taxes than were
  due to this state because of a mistake of fact or law may take a
  credit on the monthly tax report on which the error has occurred and
  tax payment made to the comptroller. The credit must be taken
  before the expiration of the applicable period of limitation as
  provided by Chapter 111.
         SECTION 22.  Sections 162.402(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  A person forfeits to the state a civil penalty of not
  less than $25 and not more than $200 if the person:
               (1)  refuses to stop and permit the inspection and
  examination of a motor vehicle transporting or using motor fuel on
  demand of a peace officer or the comptroller;
               (2)  operates a motor vehicle in this state without a
  valid interstate trucker's license or a trip permit when the person
  is required to hold one of those licenses or permits;
               (3)  operates a liquefied gas-propelled motor vehicle
  that is required to be licensed in this state, including motor
  vehicles equipped with dual carburetion, and does not display a
  current liquefied gas tax decal or multistate fuels tax agreement
  decal;
               (4)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle that does not display a
  current Texas liquefied gas tax decal;
               (5)  makes a taxable sale or delivery of liquefied gas
  without holding a valid dealer's license;
               (6)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle bearing out-of-state
  license plates;
               (7)  makes a delivery of liquefied gas into the fuel
  supply tank of a motor vehicle bearing Texas license plates and no
  Texas liquefied gas tax decal, unless licensed under a multistate
  fuels tax agreement;
               (8)  transports gasoline or diesel fuel in any cargo
  tank that has a connection by pipe, tube, valve, or otherwise with
  the fuel injector or carburetor of, or with the fuel supply tank
  feeding the fuel injector or carburetor of, the motor vehicle
  transporting the product;
               (9)  sells or delivers gasoline or diesel fuel from any
  fuel supply tank connected with the fuel injector or carburetor of a
  motor vehicle;
               (10)  owns or operates a motor vehicle for which
  reports or mileage records are required by this chapter without an
  operating odometer or other device in good working condition to
  record accurately the miles traveled;
               (11)  furnishes to a licensed supplier or distributor a
  signed statement for purchasing diesel fuel tax-free and then uses
  the tax-free diesel fuel to operate a diesel-powered motor vehicle
  on a public highway;
               (12)  fails or refuses to comply with or violates a
  provision of this chapter;
               (13)  fails or refuses to comply with or violates a
  comptroller's rule for administering or enforcing this chapter;
               (14)  is an importer who does not obtain an import
  verification number when required by this chapter; or
               (15)  purchases motor fuel for export, on which the tax
  imposed by this chapter has not been paid, and subsequently diverts
  or causes the motor fuel to be diverted to a destination in this
  state or any other state or country other than the originally
  designated state or country without first obtaining a diversion
  number.
         (d)  A person [operating a bulk plant or terminal] who issues
  a shipping document that does not conform with the requirements of
  Section 162.016(a) is liable to this state for a civil penalty of
  $2,000 or five times the amount of the unpaid tax, whichever is
  greater, for each occurrence.
         SECTION 23.  Section 162.403, Tax Code, is amended to read as
  follows:
         Sec. 162.403.  CRIMINAL OFFENSES.  Except as provided by
  Section 162.404, a person commits an offense if the person:
               (1)  refuses to stop and permit the inspection and
  examination of a motor vehicle transporting or using motor fuel on
  the demand of a peace officer or the comptroller;
               (2)  is required to hold a valid trip permit or
  interstate trucker's license, but operates a motor vehicle in this
  state without a valid trip permit or interstate trucker's license;
               (3)  operates a liquefied gas-propelled motor vehicle
  that is required to be licensed in this state, including a motor
  vehicle equipped with dual carburetion, and does not display a
  current liquefied gas tax decal or multistate fuels tax agreement
  decal;
               (4)  transports gasoline or diesel fuel in any cargo
  tank that has a connection by pipe, tube, valve, or otherwise with
  the fuel injector or carburetor or with the fuel supply tank feeding
  the fuel injector or carburetor of the motor vehicle transporting
  the product;
               (5)  sells or delivers gasoline or diesel fuel from a
  fuel supply tank that is connected with the fuel injector or
  carburetor of a motor vehicle;
               (6)  owns or operates a motor vehicle for which reports
  or mileage records are required by this chapter without an
  operating odometer or other device in good working condition to
  record accurately the miles traveled;
               (7)  sells or delivers dyed diesel fuel for the
  operation of a motor vehicle on a public highway;
               (8)  uses dyed diesel fuel for the operation of a motor
  vehicle on a public highway except as allowed under Section
  162.235;
               (9)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle that does not display a
  current Texas liquefied gas tax decal;
               (10)  makes a sale or delivery of liquefied gas on which
  the person knows the tax is required to be collected, if at the time
  the sale is made the person does not hold a valid dealer's license;
               (11)  makes a tax-free sale or delivery of liquefied
  gas into the fuel supply tank of a motor vehicle bearing
  out-of-state license plates;
               (12)  makes a delivery of liquefied gas into the fuel
  supply tank of a motor vehicle bearing Texas license plates and no
  Texas liquefied gas tax decal, unless licensed under a multistate
  fuels tax agreement;
               (13)  refuses to permit the comptroller or the attorney
  general to inspect, examine, or audit a book or record required to
  be kept by a license holder, other user, or any person required to
  hold a license under this chapter;
               (14)  refuses to permit the comptroller or the attorney
  general to inspect or examine any plant, equipment, materials, or
  premises where motor fuel is produced, processed, blended, stored,
  sold, delivered, or used;
               (15)  refuses to permit the comptroller, the attorney
  general, an employee of either of those officials, a peace officer,
  an employee of the Texas Commission on Environmental Quality, or an
  employee of the Department of Agriculture to measure or gauge the
  contents of or take samples from a storage tank or container on
  premises where motor fuel is produced, processed, blended, stored,
  sold, delivered, or used;
               (16)  is a license holder, a person required to be
  licensed, or another user and fails or refuses to make or deliver to
  the comptroller a report required by this chapter to be made and
  delivered to the comptroller;
               (17)  is an importer who does not obtain an import
  verification number when required by this chapter;
               (18)  purchases motor fuel for export, on which the tax
  imposed by this chapter has not been paid, and subsequently diverts
  or causes the motor fuel to be diverted to a destination in this
  state or any other state or country other than the originally
  designated state or country without first obtaining a diversion
  number;
               (19)  conceals motor fuel with the intent of engaging
  in any conduct proscribed by this chapter or refuses to make sales
  of motor fuel on the volume-corrected basis prescribed by this
  chapter;
               (20)  refuses, while transporting motor fuel, to stop
  the motor vehicle the person is operating when called on to do so by
  a person authorized to stop the motor vehicle;
               (21)  refuses to surrender a motor vehicle and cargo
  for impoundment after being ordered to do so by a person authorized
  to impound the motor vehicle and cargo;
               (22)  mutilates, destroys, or secretes a book or record
  required by this chapter to be kept by a license holder, other user,
  or person required to hold a license under this chapter;
               (23)  is a license holder, other user, or other person
  required to hold a license under this chapter, or the agent or
  employee of one of those persons, and makes a false entry or fails
  to make an entry in the books and records required under this
  chapter to be made by the person or fails to retain a document as
  required by this chapter;
               (24)  transports in any manner motor fuel under a false
  cargo manifest or shipping document, or transports in any manner
  motor fuel to a location without delivering at the same time a
  shipping document relating to that shipment;
               (25)  engages in a motor fuel transaction that requires
  that the person have a license under this chapter without then and
  there holding the required license;
               (26)  makes and delivers to the comptroller a report
  required under this chapter to be made and delivered to the
  comptroller, if the report contains false information;
               (27)  forges, falsifies, or alters an invoice
  prescribed by law;
               (28)  makes any statement, knowing said statement to be
  false, in a claim for a tax refund filed with the comptroller;
               (29)  furnishes to a licensed supplier or distributor a
  signed statement for purchasing diesel fuel tax-free and then uses
  the tax-free diesel fuel to operate a diesel-powered motor vehicle
  on a public highway;
               (30)  holds an aviation fuel dealer's license and makes
  a taxable sale or use of any gasoline or diesel fuel;
               (31)  fails to remit any tax funds collected by a
  license holder, another user, or any other person required to hold a
  license under this chapter;
               (32)  makes a sale of dyed diesel fuel tax-free into a
  storage facility of a person who:
                     (A)  is not licensed as a distributor, as an
  aviation fuel dealer, or as a dyed diesel fuel bonded user; or
                     (B)  does not furnish to the licensed supplier or
  distributor a signed statement prescribed in Section 162.206;
               (33)  makes a sale of gasoline tax-free to any person
  who is not licensed as an aviation fuel dealer;
               (34)  is a dealer who purchases any motor fuel tax-free
  when not authorized to make a tax-free purchase under this chapter;
               (35)  is a dealer who purchases motor fuel with the
  intent to evade any tax imposed by this chapter or who accepts a
  delivery of motor fuel by any means and does not at the same time
  accept or receive a shipping document relating to the delivery;
               (36)  transports motor fuel for which a cargo manifest
  or shipping document is required to be carried without possessing
  or exhibiting on demand by an officer authorized to make the demand
  a cargo manifest or shipping document containing the information
  required to be shown on the manifest or shipping document;
               (37)  imports, sells, uses, blends, distributes, or
  stores motor fuel within this state on which the taxes imposed by
  this chapter are owed but have not been first paid to or reported by
  a license holder, another user, or any other person required to hold
  a license under this chapter;
               (38)  blends products together to produce a blended
  fuel that is offered for sale, sold, or used and that expands the
  volume of the original product to evade paying applicable motor
  fuel taxes; or
               (39)  evades or attempts to evade in any manner a tax
  imposed on motor fuel by this chapter.
         SECTION 24.  The heading to Section 162.409, Tax Code, is
  amended to read as follows:
         Sec. 162.409.  ISSUANCE OF BAD CHECK TO LICENSED
  DISTRIBUTOR, [OR] LICENSED SUPPLIER, OR PERMISSIVE SUPPLIER.
         SECTION 25.  Sections 162.409(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  A person commits an offense if:
               (1)  the person issues or passes a check or similar
  sight order for the payment of money knowing that the issuer does
  not have sufficient funds in or on deposit with the bank or other
  drawee for the payment in full of the check or order as well as all
  other checks or orders outstanding at the time of issuance;
               (2)  the payee on the check or order is a licensed
  distributor, [or] licensed supplier, or permissive supplier; and
               (3)  the payment is for an obligation or debt that
  includes a tax under this chapter to be collected by the licensed
  distributor, [or] licensed supplier, or permissive supplier.
         (d)  A person who makes payment on an obligation or debt that
  includes a tax under this chapter and pays with an insufficient
  funds check issued to a licensed distributor, [or] licensed
  supplier, or permissive supplier may be held liable for a penalty
  equal to the total amount of tax not paid to the licensed
  distributor, [or] licensed supplier, or permissive supplier.
         SECTION 26.  Subchapter E, Chapter 162, Tax Code, is amended
  by adding Section 162.410 to read as follows:
         Sec. 162.410.  ELECTION OF OFFENSES. If a violation of a
  criminal offense provision of this chapter by a person constitutes
  another offense under the laws of this state, the state may elect
  the offense for which it will prosecute the person.
         SECTION 27.  Sections 20.002(b) and (d), Transportation
  Code, are amended to read as follows:
         (b)  This section applies to a person, other than a political
  subdivision, who:
               (1)  owns, controls, operates, or manages a commercial
  motor vehicle; and
               (2)  is exempt from the state diesel fuel tax under
  Section 162.204 [153.203], Tax Code.
         (d)  The fee imposed by this section is equal to 25 percent of
  the diesel fuel tax rate imposed under Section 162.202
  [153.202(b)], Tax Code.
         SECTION 28.  Section 26.3574(o), Water Code, is amended to
  read as follows:
         (o)  Chapters 101 and 111-113, and Sections 162.005
  [153.006], 162.007 [153.007], and 162.111(b)-(k) [153.116(b)-(j)],
  Tax Code, apply to the administration, payment, collection, and
  enforcement of fees under this section in the same manner that those
  chapters apply to the administration, payment, collection, and
  enforcement of taxes under Title 2, Tax Code.
         SECTION 29.  (a)  The change in law made by this Act applies
  only to an offense committed on or after the effective date of this
  Act. For purposes of this section, an offense is committed before
  the effective date of this Act if any element of the offense occurs
  before that date.
         (b)  An offense committed before the effective date of this
  Act is governed by the law in effect when the offense was committed,
  and the former law is continued in effect for that purpose.
         SECTION 30.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 31.  This Act takes effect September 1, 2009.