86(R) HB 1695 - House Committee Report version

	86R22823 BEF-F

	By: Goldman	H.B. No. 1695

	Substitute the following for H.B. No. 1695:

	By: Larson	C.S.H.B. No. 1695

A BILL TO BE ENTITLED

AN ACT

relating to the transfer of the regulation of motor fuel metering

and motor fuel quality from the Department of Agriculture to the

Texas Department of Licensing and Regulation; providing civil and

administrative penalties; creating criminal offenses; requiring

occupational licenses; authorizing fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 14, Occupations Code, is

amended by adding Chapter 2310 to read as follows:

CHAPTER 2310. MOTOR FUEL METERING AND QUALITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2310.001. DEFINITIONS. (a) In this chapter:

(1) "Commercial weighing or measuring device" means a

weighing or measuring device used in a commercial transaction.

(2) "Commission" means the Texas Commission of

Licensing and Regulation.

(3) "Dealer" means a person who:

(A) is the operator of a service station or other

retail outlet; and

(B) delivers motor fuel into the fuel tanks of

motor vehicles or motor boats.

(4) "Department" means the Texas Department of

Licensing and Regulation.

(5) "Motor fuel" has the meaning assigned by Section

162.001, Tax Code.

(6) "Motor fuel metering device" means a commercial

weighing or measuring device used for motor fuel sales.

(7) "Operator" or "user" means a person in possession

or control of a weighing or measuring device.

(8) "Sell" includes barter or exchange.

(9) "Weighing or measuring device" means a scale or a

mechanical or electronic device used to dispense or deliver a motor

fuel by weight, volume, flow rate, or other measure or to compute

the charge for a service related to motor fuel.

(10) "Weight or measure of a motor fuel" means the

weight or measure of a motor fuel as determined by a weighing or

measuring device.

(b) A reference to the weight of a motor fuel in this chapter

is a reference to the net weight of the motor fuel.

Sec. 2310.002. ENFORCEMENT OF CHAPTER. (a)

Notwithstanding any other law, the department shall enforce the

provisions of this chapter and shall supervise all motor fuel

metering devices sold or offered for sale in this state. The

department may purchase apparatus as necessary for the

administration of this chapter.

(b) To the extent this chapter conflicts with Chapter 13,

Agriculture Code, with regard to motor fuel metering devices, this

chapter controls.

holders under Subchapter D of this chapter or Subchapter I, Chapter

13, Agriculture Code, to perform the department's duties under this

chapter related to motor fuel metering devices. A reference in this

chapter to the commission or department in the context of a

contracted service means the contractor.

Sec. 2310.003. CIVIL PENALTY; INJUNCTION. (a) A person who

violates Subchapter B or C or a rule adopted under Subchapter B or C

is liable to the state for a civil penalty not to exceed $500 for

each violation. Each day a violation continues may be considered a

separate violation for purposes of a civil penalty assessment.

(b) On request of the department, the attorney general or

the county attorney or district attorney of the county in which the

violation is alleged to have occurred shall file suit to collect the

penalty.

deposited in the state treasury to the credit of the general revenue

fund. A civil penalty recovered in a suit first instituted by one

or more local governments under this section shall be equally

divided between this state and each local government that first

instituted the suit, with 50 percent of the recovery deposited to

the credit of the general revenue fund and the other 50 percent

distributed equally to each local government.

(d) The department is entitled to appropriate injunctive

relief to prevent or abate a violation of this chapter or a rule

adopted under this chapter. On request of the department, the

attorney general or the county or district attorney of the county in

which the alleged violation is threatened or is occurring shall

file suit for the injunctive relief. Venue is in the county in

which the alleged violation is threatened or is occurring.

(e) The department and the attorney general may each recover

reasonable expenses incurred in obtaining injunctive relief and

civil penalties under this section, including investigative costs,

court costs, reasonable attorney's fees, witness fees, and

deposition expenses. The expenses recovered by the department may

be appropriated only to the department for the administration and

enforcement of this chapter. The expenses recovered by the

attorney general may be appropriated only to the attorney general.

SUBCHAPTER B. STANDARD WEIGHTS AND MEASURES FOR MOTOR FUEL

Sec. 2310.051. LEGAL STANDARDS. (a) The legal standard for

the weight or measure of a motor fuel in this state is the standard

weight or measure adopted and used by the government of the United

States for that motor fuel. If the United States does not provide a

standard weight or measure for a motor fuel, the standard for the

motor fuel is that established by this subchapter.

(b) The commission may adopt rules for the purpose of

administering this subchapter and bringing about uniformity

between the standards established under this subchapter and the

standards established by federal law.

contract for work or sales by weight or measure of a motor fuel

shall be construed in accordance with the standards of this

subchapter.

(d) The standards of this subchapter shall be the guide for

making any adjustment of weighing or measuring devices under the

law of this state.

Sec. 2310.052. STANDARD FOR LIQUID MOTOR FUEL. (a) This

section does not apply to compressed natural gas or liquefied

natural gas.

(b) The standard unit of measure of capacity for liquid

motor fuels is the gallon.

measures of capacity for liquid motor fuels are derived from the

gallon by continual division by two, making half gallons, quarts,

pints, half pints, and gills.

(d) A mechanism or machine that is adapted to measure and

deliver liquid motor fuels by volume and that indicates fractional

parts of a gallon shall indicate the fractional parts either in

terms of binary submultiple subdivisions or in terms of tenths of a

gallon.

(e) For purposes of the retail sale of motor fuel only, the

liquid gallon contains 231 cubic inches without adjustment based on

the temperature of the liquid.

Sec. 2310.053. EXEMPTION OF CERTAIN MOTOR FUEL METERING

DEVICES. (a) The commission by rule may exempt a motor fuel

metering device from a requirement established by this chapter if

the commission determines that imposing or enforcing the

requirement:

(1) is not cost-effective for the department;

(2) is not feasible with current resources or

standards; or

(3) will not substantially benefit or protect

consumers.

(b) A motor fuel metering device is exempt from the

requirements of this chapter if the motor fuel metering device is

not used to:

(1) calculate the amount of motor fuel sold in a

commercial transaction; or

(2) compute the charge for service.

Sec. 2310.054. SALE OF MOTOR FUEL BY PROPER MEASURE. (a)

Except as otherwise provided by this section, motor fuel shall be

sold by liquid measure.

(b) Compressed natural gas and liquefied natural gas shall

be sold by weight.

section, the person sells motor fuel by other than weight or liquid

measure.

Sec. 2310.055. PRICE ADVERTISEMENT; MISREPRESENTATION OF

PRICE OR QUANTITY. (a) If a price sign, card, tag, poster, or other

advertisement displaying the price of motor fuel includes a whole

number and a fraction, the figures in the fraction shall be of

proportionate size and legibility to those of the whole number.

(b) A person violates this chapter if the person:

(1) misrepresents the price of motor fuel sold or

offered or exposed for sale; or

(2) represents the price or the quantity of motor fuel

sold or offered or exposed for sale in a manner intended or tending

to mislead or deceive an actual or prospective customer.

Sec. 2310.056. FALSE REPRESENTATION OF MOTOR FUEL QUANTITY.

A person violates this chapter if the person or the person's

representative or agent:

(1) sells or offers or exposes for sale a quantity of

motor fuel that is less than the quantity the person represents; or

(2) as a buyer furnishing the weight or measure of a

motor fuel by which the amount of the motor fuel is determined,

takes or attempts to take more than the quantity the person

represents.

Sec. 2310.057. USE OF INCORRECT MOTOR FUEL METERING DEVICE.

(a) A person commits an offense if the person or the person's

representative or agent knowingly uses an incorrect weighing or

measuring device in:

(1) buying or selling motor fuel;

(2) computing a charge for services rendered on the

basis of weight or measure; or

(3) determining the weight or measure of motor fuel,

if a charge is made for the determination.

(b) For the purpose of this section, a weighing or measuring

device is incorrect if it:

(1) does not conform as closely as practicable to the

official standards;

(2) is not accurate;

(3) is of a construction that is not reasonably

permanent in adjustment or does not correctly repeat its

indications;

(4) facilitates the perpetration of fraud; or

(5) does not conform to the specifications and

tolerances established by the department under Section 2310.108.

Sec. 2310.058. SALE OF MOTOR FUEL IN VIOLATION OF

SUBCHAPTER. A person violates this chapter if the person or the

person's representative or agent sells or keeps, offers, or exposes

for sale motor fuel in violation of this subchapter.

Sec. 2310.059. TESTING BY DEPARTMENT. (a) The department

shall from time to time weigh or measure an amount of motor fuel

that is kept or offered for sale, sold, or in the process of

delivery, in order to determine:

(1) if the motor fuel is of the amount or quantity

represented; or

(2) if the motor fuel is being offered for sale or sold

in accordance with law.

(b) If the department finds that any lot of motor fuel

contains less of the motor fuel than the amount represented, the

department may seize the motor fuel as evidence.

person's employee or agent refuses to exhibit motor fuel being sold

or offered for sale at a given weight or quantity, or ordinarily

sold in that manner, to the department for testing and proving as to

quantity.

Sec. 2310.060. STOP-SALE ORDER. (a) If the department has

reason to believe that motor fuel is being sold or kept, offered, or

exposed for sale in violation of this chapter or that motor fuel is

being sold or offered for sale by or through the use of a motor fuel

metering device that is in violation of this chapter, the

department may issue and enforce a written or printed order to stop

the sale of the motor fuel. The department shall present the order

to the owner or custodian of the motor fuel or seller of the motor

fuel. The person receiving the order may not sell the motor fuel or

provide the service until discharged by a court under Subsection

(b) or until the commission finds that the motor fuel or motor fuel

metering device is in compliance with this chapter.

(b) The owner or custodian of motor fuel or a person selling

or offering for sale a service prohibited from sale by an order of

the department is entitled to sue in a court where the motor fuel is

found or the service is being sold or offered for sale for a

judgment as to the justification of the order and for the discharge

of the motor fuel in accordance with the findings of the court.

to proceed as authorized by other sections of this code.

Sec. 2310.061. PENALTIES; DEFENSE. (a) An offense under

Section 2310.057 or 2310.059 is a Class C misdemeanor.

(b) It is a defense to prosecution or to the imposition of a

civil or administrative penalty for a violation of Section 2310.057

or 2310.059 that a discrepancy between the actual weight or volume

at the time of sale to a consumer or a discrepancy between the fill

of a container and the capacity of the container is due to

unavoidable leakage, shrinkage, evaporation, waste, or causes

beyond the control of the seller acting in good faith.

SUBCHAPTER C. INSPECTION AND REGISTRATION OF MOTOR FUEL METERING

DEVICES

Sec. 2310.101. AUTHORITY TO INSPECT. (a) If the department

has reason to believe that a motor fuel metering device is being

used for a commercial transaction and the device is not registered

with the department, the department may inspect the device and the

records of the owner, operator, or user of the device that relate to

use of the device to determine whether the device is in compliance

with this chapter.

(b) The department has reason to believe a motor fuel

metering device is being used for a commercial transaction if:

(1) the motor fuel metering device is found in close

proximity to motor fuel being sold or offered for sale by weight or

measure and the device appears to be under the control or in the

possession of the person selling the motor fuel or offering the

motor fuel for sale; or

(2) other available evidence is sufficient for a

prudent person to believe that the motor fuel metering device is

being used for a commercial transaction.

Sec. 2310.105. REPAIR OR DESTRUCTION OF INCORRECT MOTOR

FUEL METERING DEVICES. (a) If, in the judgment of the department,

a motor fuel metering device found to be incorrect is not capable of

being repaired, the department may condemn, seize, and destroy the

device.

(b) If, in the judgment of the department, an incorrect

motor fuel metering device is capable of being repaired, the

department shall place on the device a tag or other mark with the

words "Out of Order." The owner or user of the motor fuel metering

device may not use it until it is reinspected and released for use

by the department or inspected and released for use in any other

manner authorized by department rule.

device may not destroy, replace, or otherwise dispose of a device

declared to be incorrect or condemned under this section except as

provided by department rule.

Sec. 2310.106. TESTS FOR STATE INSTITUTIONS. As requested

by the comptroller or the governing body of a state institution, the

department shall test each motor fuel metering device used by a

state institution for any purpose, including a motor fuel metering

device used in checking the receipt and distribution of supplies.

The department shall report results of the test to the chair of the

governing body of the institution.

Sec. 2310.107. STANDARDS USED IN INSPECTION. (a) The

standards of weights and measures maintained by the department and

certified by the National Institute of Standards and Technology or

a metrology laboratory certified by the National Institute of

Standards and Technology are the state's standards by which all

state and local standards of weights and measures for motor fuel are

tried, authenticated, proved, and certified.

(b) The department shall maintain the primary standards for

motor fuel in a safe and suitable place in the offices of the

department. The standards may not be moved except for repairs or

certification. The department shall maintain the standards in good

order and shall submit them to the National Institute of Standards

and Technology or to a laboratory approved by the National

Institute of Standards and Technology for certification at least

once each 10 years.

state, the department shall maintain a complete set of copies of the

original standards for use in adjusting local standards or in the

performance of other official duties. The department may purchase

additional sets of standards as necessary for use by a department

inspector or other department personnel.

(d) At the request of a municipality, the department shall

furnish the municipality with copies of the state's standards for

motor fuel or test and approve other standards acquired by the

municipality. The municipality shall reimburse the state for the

actual cost of the standards furnished, plus the costs of freight

and certification. All standards furnished to or tested for a

municipality shall be true and correct and certified by the

department. The copies used by a municipality may be of any

suitable material or construction that the municipality requests,

subject to approval by the department.

(e) The department, or a metrology laboratory certified by

the National Institute of Standards and Technology and approved by

the department, shall inspect and correct the standards for motor

fuel used by a department inspector, another department employee,

or an individual or business licensed by the department to perform

device maintenance activities under Subchapter D, or an individual

or business licensed under Subchapter I, Chapter 13, Agriculture

Code.

(f) The commission may adopt rules to regulate the frequency

and place of inspection and correction of the standards for motor

fuel used by an individual or business licensed by the department to

perform device maintenance activities under Subchapter D or an

individual or business licensed under Subchapter I, Chapter 13,

Agriculture Code.

(g) The department may inspect any standard for motor fuel

used by an individual or business licensed by the department to

perform device maintenance activities described by Subchapter D or

an individual or business licensed under Subchapter I, Chapter 13,

Agriculture Code, if the department has reason to believe a

standard is no longer in compliance with this chapter.

(h) The department shall keep a record of the inspection and

character of standards for motor fuel inspected under this section.

Sec. 2310.108. TOLERANCES. Specifications and tolerances

for motor fuel metering devices shall be the same as those

recommended by the National Institute of Standards and Technology.

Sec. 2310.109. FEES. (a) The commission by rule shall

establish fees in amounts reasonable and necessary to cover the

cost of administering this chapter.

(b) Notwithstanding any other law, the commission may not in

a state fiscal biennium increase a fee under Subsection (a) for a

motor fuel metering device by an amount that exceeds 10 percent of

the amount of the fee at the end of the preceding state fiscal

biennium.

Sec. 2310.110. REFUSING TO ALLOW TEST OF MOTOR FUEL

METERING DEVICE. (a) A person commits an offense if the person

refuses to allow a motor fuel metering device under the person's

control or in the person's possession to be inspected, tested, or

examined by the department, and the inspection, test, or

examination is required or authorized by this chapter.

(b) A person commits an offense if the person hinders or

obstructs in any way the department, a department inspector, or

other department employee in the performance of official duties.

obliterates a tag or device placed or required by the department to

be placed on a motor fuel metering device under this chapter.

Sec. 2310.111. SALE OR USE OF INCORRECT MOTOR FUEL METERING

DEVICE. (a) The department may condemn and prohibit the sale or

distribution of any incorrect motor fuel metering device that is

sold, offered for sale, or about to be sold in this state.

(b) A person commits an offense if the person or the

person's representative or agent knowingly:

(1) offers or exposes for sale, hire, or award or sells

an incorrect motor fuel metering device;

(2) possesses an incorrect motor fuel metering device;

(3) sells, offers for sale, uses, or possesses for the

purpose of sale or use a device or instrument to be used to falsify

or intended to falsify a weight or measure for motor fuel.

Sec. 2310.112. DISPOSING OF CONDEMNED MOTOR FUEL METERING

DEVICE. A person commits an offense if the person or the person's

representative or agent disposes of a motor fuel metering device

condemned under Section 2310.105 or 2310.111 in a manner contrary

to those sections.

Sec. 2310.113. PENALTIES. An offense under Section

2310.110, 2310.111, or 2310.112 is a Class C misdemeanor.

SUBCHAPTER D. LICENSING OF MOTOR FUEL METERING DEVICE SERVICE

TECHNICIANS AND MOTOR FUEL METERING DEVICE SERVICE COMPANIES

Sec. 2310.151. DEFINITIONS. In this subchapter:

(1) "Device maintenance activities" means activities

described by Section 2310.152.

(2) "License holder" means a person who holds a motor

fuel metering device service company license or a motor fuel

metering device service technician license.

(3) "Service company" means a person who holds a motor

fuel metering device service company license issued by the

department under this subchapter.

(4) "Service technician" means an individual who holds

a motor fuel metering device service technician license issued by

the department under this subchapter.

Sec. 2310.152. DEVICE MAINTENANCE ACTIVITIES. A person

performs device maintenance activities if the person or the

person's employee:

(1) places a motor fuel metering device in service;

(2) installs, calibrates, inspects, tests, or repairs

a motor fuel metering device; or

(3) removes an out-of-order tag, stop-sale order,

security seal, lock, condemnation notice, or other form of use

prohibition placed on a motor fuel metering device by the

department.

Sec. 2310.153. POWERS AND DUTIES OF DEPARTMENT. (a) To

verify compliance with licensing requirements, trade practices,

department rules, and this chapter, the department may periodically

or in response to a complaint or previous violation inspect an

applicant's or license holder's:

(1) facilities;

(2) inspecting and testing equipment and procedures;

(3) repair and calibration equipment, standards, and

procedures;

(4) transportation equipment; and

(5) invoices, work orders, and other records related

to device maintenance activities.

(b) The department may periodically or in response to a

complaint or previous violation monitor and inspect or test motor

fuel metering devices that have been inspected and tested by a

license holder and any standards used by the license holder during

an inspection or test.

requirements for the issuance of a license and for the denial of an

application for a license or renewal of a license. Rules adopted by

the commission under this subsection must be designed to protect

the public health, safety, and welfare and ensure the proper

inspection, testing, and operation of motor fuel metering devices.

(d) The commission may adopt other rules necessary for the

regulation of device maintenance activities, for the proper

operation of motor fuel metering devices, and to protect the

health, safety, and welfare of the public and license holders.

(e) The department may specify the date, time, and place for

any inspection authorized by this section.

Sec. 2310.154. EXEMPTIONS FROM LICENSE REQUIREMENTS. (a)

A person is not required to hold a license issued under this

subchapter if the person:

(1) is a department employee who is performing device

maintenance activities in the scope of the person's duties for the

department;

(2) is the owner or operator of a motor fuel metering

device or an employee of the owner or operator of a motor fuel

metering device and the person:

(A) completely removes the motor fuel metering

device from the location at which the device was installed,

including a device subject to an out-of-order tag, stop-sale order,

security seal, lock, condemnation notice, or other item placed on

the device by the department to prohibit use of the device; and

(B) notifies the department of the motor fuel

metering device's removal not later than the 10th day after the date

the device was removed in the manner provided by department rule;

(3) performs device maintenance activities only on a

motor fuel metering device that is:

(A) exempt from the registration requirements of

Section 2310.103 under department rules;

(B) exempt from the inspection requirements of

Section 2310.102 under department rules; and

department rules; or

(4) is a license holder under Subchapter I, Chapter

13, Agriculture Code.

(b) The department is not required to hold a license issued

under this subchapter or Subchapter I, Chapter 13, Agriculture

Code.

Sec. 2310.155. SERVICE TECHNICIAN LICENSE REQUIRED. Unless

the individual is exempt from the licensing requirement, an

individual may not perform or offer to perform device maintenance

activities unless the individual holds a service technician license

issued by the department under this subchapter.

Sec. 2310.156. SERVICE COMPANY LICENSE REQUIRED. (a)

Unless the person is exempt from the license requirement, a person

may not employ an individual who performs or offers to perform

device maintenance activities unless the person holds a service

company license issued by the department under this subchapter.

(b) Unless the individual is exempt from the licensing

requirement, an individual may not perform or offer to perform

device maintenance activities as a sole proprietor unless the

individual holds a service technician license and a service company

license issued by the department under this subchapter.

Sec. 2310.157. APPLICATION FOR LICENSE. An applicant for a

license under this subchapter must submit to the department:

(1) an application form prescribed by the department;

(2) any other information required by the department;

and

(3) a fee in an amount set by the department.

Sec. 2310.158. SERVICE TECHNICIAN LICENSE REQUIREMENTS.

(a) The department shall issue a license to each qualified

applicant who applies for a service technician license.

(b) The commission by rule may require an applicant for the

issuance or renewal of a service technician license to meet one or

more of the following requirements:

(1) provide to the department proof that the applicant

has completed an academic, trade, or professional course of

instruction approved by the department;

(2) pass a written test; or

(3) pass a practical skills test.

Sec. 2310.159. SERVICE COMPANY LICENSE REQUIREMENTS. (a)

The department shall issue a license to each qualified applicant

who applies for a service company license.

(b) An applicant for the issuance or renewal of a license

under this section must:

(1) submit to the department a certificate of

insurance evidencing that the applicant has an insurance policy

that meets the requirements of Section 2310.160 effective for the

period for which the license is to be issued or renewed; and

(2) meet any other requirements provided by department

rule.

Sec. 2310.160. INSURANCE POLICY REQUIRED FOR SERVICE

COMPANY. A service company shall maintain at all times while the

service company performs device maintenance activities a current

effective operations liability insurance policy issued by an

insurance company authorized to do business in this state or by a

surplus lines insurer that meets the requirements of Chapter 981,

Insurance Code, and rules adopted by the commissioner of insurance

in an amount set by the department and based on the type of licensed

activities to be performed.

Sec. 2310.161. TERM OF LICENSE. A license issued under this

subchapter is valid for one year unless a different term is

established by department rule.

Sec. 2310.162. LICENSE RENEWAL. A person licensed under

this subchapter must periodically renew the person's license. The

license expires unless the license holder submits an application

for renewal accompanied by the renewal fee set by the department or

by the late fee set by the department and meets the requirements for

renewal.

Sec. 2310.163. PRACTICE BY LICENSE HOLDER. (a) A license

holder shall perform device maintenance activities in compliance

with department rules.

(b) A license holder may use only equipment approved by the

department, as provided by department rules, when performing device

maintenance activities.

Sec. 2310.164. CRIMINAL PENALTY. (a) A person commits an

offense if the person violates Section 2310.155 or 2310.156 or

causes another person to violate Section 2310.155 or 2310.156.

(b) An offense under Subsection (a) is a Class B

misdemeanor, unless the person has been previously convicted of an

offense under this section, in which case the offense is a Class A

misdemeanor.

SUBCHAPTER E. SALE, DELIVERY, AND QUALITY OF MOTOR FUEL

Sec. 2310.201. NOTICE OF SALE OF ALCOHOL AND FUEL MIXTURE.

(a) A dealer may not sell or offer for sale motor fuel from a motor

fuel pump supplied by a storage tank into which motor fuel, in a

mixture in which at least one percent of the mixture measured by

volume is ethanol or methanol, has been delivered within the 60-day

period preceding the date of sale or offer of sale unless the dealer

prominently displays on the pump from which the mixture is sold a

sign that complies with Subsection (b).

(b) A sign required by Subsection (a) must:

(1) be displayed on each face of the motor fuel pump on

which the price of the motor fuel mixture sold from the pump is

displayed;

(2) state "Contains Ethanol" or "Contains Methanol,"

as applicable;

(3) appear in contrasting colors with block letters at

least one-half inch high and one-fourth inch wide; and

(4) be displayed in a clear, conspicuous, and

prominent manner, visible to customers using either side of the

pump.

alcohol or additive information. Other alcohol or additive

information and any relevant posting are subject to regulation by

the department.

Sec. 2310.202. MINIMUM MOTOR FUEL QUALITY AND TESTING

STANDARDS. (a) The commission by rule shall adopt minimum motor

fuel quality and testing standards for motor fuel that is sold or

offered for sale in this state. The standards must comply with the

nationally recognized minimum standards established by:

(1) the American Society for Testing and Materials,

for motor fuels other than motor fuels blended with ethanol; and

(2) the National Institute of Standards and

Technology, for motor fuels blended with ethanol.

(b) The commission may adopt rules as necessary to bring

about uniformity between the standards established under this

subchapter and the nationally recognized standards described by

Subsection (a).

Sec. 2310.203. TESTING OF MOTOR FUEL QUALITY. (a) The

department or a representative of the department may collect

samples and conduct testing at any location where motor fuel is

kept, transferred, sold, or offered for sale to verify that the

motor fuel complies with the minimum standards required by Section

2310.202.

(b) The collection of samples and conducting of testing at a

dealer's location must be performed by a license holder under

Subchapter D of this chapter or Subchapter I, Chapter 13,

Agriculture Code, under contract with the dealer. The license

holder is considered a representative of the department for

purposes of this section.

Subsection (a), a representative of the department shall notify the

owner or manager of the facility of the representative's presence

and purpose. The department representative shall follow the most

recent applicable procedures specified by ASTM International

Standard D4057, D4177, D5842, or D5854 for the collection,

sampling, and handling of fuel to prepare for laboratory analysis.

(d) A person commits an offense if the person refuses to

allow a department representative to collect samples or conduct

motor fuel testing under Subsection (a).

(e) An offense under Subsection (d) is a Class C

misdemeanor.

Sec. 2310.204. RULES; FEES. (a) The commission may adopt

rules consistent with this subchapter for the regulation of the

sale of motor fuels, including motor fuels that contain ethanol and

methanol.

(b) The commission by rule may impose a fee for testing,

inspection, or the performance of other services provided as

determined necessary by the commission in the administration of

this subchapter. A fee imposed under this subsection shall be

collected from each dealer, distributor, and supplier, as defined

by Section 162.001, Tax Code, on a periodic basis determined by the

commission without regard to whether the motor fuel is subject to

regulation under this subchapter.

reporting and remitting the fees imposed under this section.

(d) Fees collected under this section may be used only to

administer and enforce this subchapter.

Sec. 2310.205. CIVIL PENALTY. A person who sells or offers

for sale motor fuel in violation of this subchapter or a rule

adopted under this subchapter is liable to this state for a civil

penalty of not less than $200 and not more than $2,500.

Sec. 2310.206. ADMINISTRATIVE PENALTY. The commission may

impose an administrative penalty on a person under Subchapter F,

Chapter 51, if the person sells or offers for sale motor fuel in

violation of this subchapter or a rule adopted under this

subchapter.

SECTION 2. Sections 13.1015, 13.1016, and 13.1017,

Agriculture Code, are transferred to Subchapter C, Chapter 2310,

Occupations Code, as added by this Act, redesignated as Sections

2310.102, 2310.103, and 2310.104, Occupations Code, and amended to

read as follows:

Sec. 2310.102 [~~13.1015~~]. INSPECTION OF MOTOR FUEL METERING

DEVICES. (a) Unless a motor fuel metering device is exempt from

the application of this section by department rule, a motor fuel

metering device shall be inspected, tested, and calibrated for

correctness by a license holder under Subchapter D of this chapter

or Subchapter I, Chapter 13, Agriculture Code, at least once every

two years if the device is:

(1) kept for sale, sold, or used by a proprietor,

agent, lessee, or employee in proving the measure of motor fuel; or

(2) purchased, offered, or submitted by a proprietor,

agent, lessee, or employee for sale, hire, or award.

(b) Inspection, testing, and calibration under this section

must be performed by a license holder under Subchapter D of this

chapter or Subchapter I, Chapter 13, Agriculture Code, under

contract with the operator or user of the motor fuel metering

device.

Sec. 2310.103 [~~13.1016~~]. REQUIRED REGISTRATION OF MOTOR

FUEL METERING DEVICES. (a) Unless a motor fuel metering device is

exempt from the application of this section by department rule, a

person who owns or operates a motor fuel metering device shall

a commercial transaction.

(b) An application for a device registration must:

(1) be submitted to the department on a form

prescribed by the department;

(2) be accompanied by any other document or form

required by the department;

(3) include any fees [~~the registration fee~~] required

under Section 2310.109 [~~13.1151~~]; and

(4) include documentation of compliance with Section

2310.102 [~~13.1015~~].

unless a different period is established by department rule. The

registration must be renewed at or before the end of each

registration period and the application for renewal must include

documentation of compliance with Section 2310.102 [~~13.1015~~].

(d) If a person fails to register or renew a registration as

required by this section, the department may not issue a

certificate to operate the motor fuel metering device. The

department shall issue the certificate when the operator submits to

the department the items required by Subsection (b).

(e) The department may assess a late fee if the registration

of one or more devices located on a premises is renewed after the

end of the registration period because of a registration error,

including one or more devices not properly registered, failure to

previously registered device. The amount of the penalty may not

exceed $50 per device, with a maximum penalty amount of $500 per

year for the premises.

Sec. 2310.104 [~~13.1017~~]. COMPLAINTS REGARDING MOTOR FUEL

METERING DEVICES. (a) The department shall receive complaints

regarding motor fuel metering devices.

(b) After receiving a complaint regarding a motor fuel

metering device, the department shall determine the date the device

was last inspected under Section 2310.102 [~~13.1015~~] and the number

of complaints received by the department in the previous 12 months

regarding motor fuel metering devices at the premises where the

device subject to the complaint is located.

registered the motor fuel metering device and take no further

action on the complaint if:

(1) the motor fuel metering device was last inspected

not more than 18 months before the date the complaint is received;

and

(2) the department received not more than two

complaints in the previous 12 months regarding motor fuel metering

devices at the premises where the device is located.

(d) The department shall notify the person who last

registered the motor fuel metering device and require the device to

be inspected by a license holder under Section 2310.102 [~~13.1015~~]

not later than one month after the notification date if:

(1) the motor fuel metering device was last inspected

more than 18 months before the date the complaint is received; or

(2) the department received at least three complaints

in the previous 12 months regarding motor fuel metering devices at

the premises where the device is located.

SECTION 3. Section 12.020(c), Agriculture Code, is amended

to read as follows:

applicable penalty amounts are as follows:

Provision

Amount of Penalty

Chapters 13, 14A, [~~17,~~] 18, 19, 41, 46, 61, 72, 73, 74, 76, 94, 95, 101, 102, 103, 125, 132,

Chapters 13, 14A, [] 18, 19, 41, 46, 61, 72, 73, 74, 76, 94, 95, 101, 102, 103, 125, 132,

and 134

not more than $5,000

Subchapters A, B, and C, Chapter 71

not more than $5,000

Chapter 14

not more than $10,000

Chapter 1951, Occupations Code

not more than $5,000

Chapter 153, Natural Resources

Code

not more than $5,000

Section 91.009

not more than $5,000.

SECTION 4. Section 13.001, Agriculture Code, is amended by

adding Subsection (c) to read as follows:

fuel.

SECTION 5. Section 13.024(b), Agriculture Code, is amended

to read as follows:

(b) Except as provided by Subsection [~~Subsections~~] (c) [~~and~~

~~(d)~~], all other measures of capacity for liquids are derived from

the gallon by continual division by two, making half gallons,

quarts, pints, half pints, and gills.

SECTION 6. Section 13.114, Agriculture Code, is amended to

read as follows:

Sec. 13.114. TOLERANCES. The department shall establish

specifications and tolerances for commercial weighing or measuring

devices used in this state. The specifications and tolerances

shall be similar to those recommended by the National Institute of

Standards and Technology[~~, except that the specifications and~~

~~tolerances for motor fuel metering devices shall be the same as~~

~~those recommended by the National Institute of Standards and~~

~~Technology~~].

SECTION 7. Section 162.009, Tax Code, is amended to read as

follows:

Sec. 162.009. AUTHORITY TO STOP AND EXAMINE. To enforce

this chapter, the comptroller or a peace officer may stop a motor

vehicle that appears to be operating with or transporting motor

fuel to examine the shipping document, cargo manifest, or invoices

required to be carried, examine a license or copy of a license that

may be required to be carried, take samples from the fuel supply or

cargo tanks, and make any other investigation that could reasonably

be made to determine whether the taxes have been paid or accounted

for by a license holder or a person required to be licensed. The

comptroller, a peace officer, an employee of the attorney general's

office, an employee of the Texas Commission on Environmental

Quality, or an employee of the Texas Department of Licensing and

Regulation [~~Agriculture~~] may take samples of motor fuel from a

storage tank or container to:

(1) determine if the fuel contains hazardous waste or

is adulterated; or

(2) allow the comptroller to determine whether taxes

on the fuel have been paid or accounted for to this state.

SECTION 8. 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) 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;

(4) 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;

(5) 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;

(6) sells or delivers dyed diesel fuel for the

operation of a motor vehicle on a public highway;

(7) uses dyed diesel fuel for the operation of a motor

vehicle on a public highway except as allowed under Section

162.235;

(8) 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;

(9) 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;

(10) 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 Texas Department of Licensing and Regulation

[~~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;

(11) 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;

(12) is an importer who does not obtain an import

verification number when required by this chapter;

(13) 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;

(14) 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;

(15) 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;

(16) 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;

(17) 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;

(18) 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;

(19) 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;

(20) 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;

(21) 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;

(22) forges, falsifies, or alters an invoice or

shipping document prescribed by law;

(23) makes any statement, knowing said statement to be

false, in a claim for a tax refund filed with the comptroller;

(24) 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;

(25) holds an aviation fuel dealer's license and makes

a taxable sale or use of any gasoline or diesel fuel;

(26) fails to remit any tax funds collected or

required to be collected by a license holder, another user, or any

other person required to hold a license under this chapter;

(27) 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;

(28) makes a sale of gasoline tax-free to any person

who is not licensed as an aviation fuel dealer;

(29) purchases any motor fuel tax-free when not

authorized to make a tax-free purchase under this chapter;

(30) purchases motor fuel with the intent to evade any

tax imposed by this chapter or 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;

(31) 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;

(32) 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;

(33) 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;

(34) evades or attempts to evade in any manner a tax

imposed on motor fuel by this chapter;

(35) delivers compressed natural gas or liquefied

natural gas into the fuel supply tank of a motor vehicle and the

person does not hold a valid compressed natural gas and liquefied

natural gas dealer's license; or

(36) makes a tax-free delivery of compressed natural

gas or liquefied natural gas into the fuel supply tank of a motor

vehicle, unless the delivery is exempt from tax under Section

162.356.

SECTION 9. The following provisions of the Agriculture Code

are repealed:

(1) Section 13.001(a)(1-a);

(2) Section 13.024(d);

(3) Section 13.029(b);

(4) Section 13.101(e);

(5) Section 13.1011(e);

(6) Section 13.1151(b); and

(7) Chapter 17.

SECTION 10. (a) All rules, fees, policies, procedures,

decisions, and forms of the commissioner of agriculture or the

Department of Agriculture that relate to a program or activity

transferred under this Act and that are in effect on the effective

date of the transfer remain in effect until changed by the Texas

Commission of Licensing and Regulation.

(b) A license, permit, certificate of registration, or

other authorization issued by the Department of Agriculture for a

program or activity transferred under this Act is continued in

effect as a license, permit, certificate, or other authorization of

the Texas Department of Licensing and Regulation after the

effective date of the transfer.

proceeding before the commissioner of agriculture, the Department

of Agriculture, or the State Office of Administrative Hearings

relating to a program or activity transferred under this Act that is

pending on the effective date of the transfer is transferred

without change in status to the Texas Commission of Licensing and

Regulation or Texas Department of Licensing and Regulation, as

appropriate.

(d) All money, contracts, leases, property, records, and

obligations of the Department of Agriculture relating to a program

or activity transferred under this Act are transferred to the Texas

Department of Licensing and Regulation.

(e) The unexpended and unobligated balance of any money

appropriated by the legislature relating to a program or activity

transferred under this Act is transferred to the Texas Department

of Licensing and Regulation.

(f) Unless the context indicates otherwise, a reference in

law or administrative rule to the commissioner of agriculture or

the Department of Agriculture with respect to a program or activity

transferred under this Act means the Texas Commission of Licensing

and Regulation or Texas Department of Licensing and Regulation, as

appropriate.

SECTION 11. (a) As soon as practicable after the effective

date this Act, the Department of Agriculture and the Texas

Department of Licensing and Regulation shall adopt a transition

plan to provide for the orderly transfer of powers, duties,

functions, programs, and activities under this Act. The transition

plan must provide for the transfer to be completed not later than

September 1, 2020.

(b) The Department of Agriculture shall provide the Texas

Department of Licensing and Regulation with access to any systems,

facilities, or information necessary for the Texas Department of

Licensing and Regulation to accept a program or activity

transferred under this Act.

establish and lead a stakeholder workgroup to provide input,

advice, and recommendations to the Department of Agriculture and

Texas Department of Licensing and Regulation on the orderly

transfer of powers, duties, functions, programs, and activities

under this Act. The Texas Department of Licensing and Regulation

shall establish the size, composition, and scope of the stakeholder

workgroup.

(d) On the date specified in the transition plan required

under Subsection (a) of this section for the transfer of a program

or activity transferred by this Act to the Texas Department of

Licensing and Regulation, all full-time equivalent employee

positions at the Department of Agriculture that directly and

indirectly concern the administration or enforcement of the program

or activity being transferred become positions at the Texas

Department of Licensing and Regulation. The Texas Department of

Licensing and Regulation shall post the positions for hiring and,

when filling the positions, shall give consideration to, but is not

required to hire, an applicant who, immediately before the date of

the transfer, was an employee at the Department of Agriculture

involved in administering or enforcing the transferred program or

activity.

(e) Subsection (c) of this section and this subsection

expire October 1, 2020.

SECTION 12. (a) Except as provided by Subsection (b) of

this section, this Act takes effect September 1, 2020.

(b) Section 11 of this Act takes effect September 1, 2019.