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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of the motor fuel taxes on compressed natural |
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gas and liquefied natural gas and the exemption from sales and use |
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taxes of natural gas used as a motor fuel. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.317, Tax Code, is amended by adding |
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Subsection (f) to read as follows: |
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(f) Natural gas delivered into the fuel supply tank of a |
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motor vehicle is exempted from the taxes imposed by this chapter. |
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SECTION 2. Sections 162.001(4), (19), (29), (38), (39), |
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(42), and (43), Tax Code, are amended to read as follows: |
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(4) "Aviation fuel dealer" means a person who: |
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(A) is the operator of an aircraft servicing |
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facility; |
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(B) delivers gasoline or[,] diesel fuel[,
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compressed natural gas, or liquefied natural gas] exclusively into |
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the fuel supply tanks of aircraft or into equipment used solely for |
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servicing aircraft and used exclusively off-highway; and |
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(C) does not use, sell, or distribute gasoline |
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or[,] diesel fuel[, compressed natural gas, or liquefied natural
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gas] on which a fuel tax is required to be collected or paid to this |
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state. |
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(19) "Diesel fuel" means kerosene or another liquid, |
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or a combination of liquids blended together, offered for sale, |
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sold, used, or capable of use as fuel for the propulsion of a |
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diesel-powered engine. The term includes products commonly |
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referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel |
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fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable |
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diesel, biodiesel, distillate fuel, cutter stock, or heating oil, |
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but does not include [compressed natural gas, liquefied natural
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gas,] gasoline or[,] aviation gasoline[, or liquefied gas]. |
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(29) "Gasoline" means any liquid or combination of |
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liquids blended together, offered for sale, sold, used, or capable |
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of use as fuel for a gasoline-powered engine. The term includes |
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gasohol, aviation gasoline, and blending agents, but does not |
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include [compressed natural gas, liquefied natural gas,] racing |
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gasoline, diesel fuel, or aviation jet fuel[, or liquefied gas]. |
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(38) "License holder" means a person licensed by the |
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comptroller under Section 162.105 or[,] 162.205[, 162.357, or
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162.358]. |
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(39) "Liquefied gas" means all combustible gases that |
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exist in the gaseous state at 60 degrees Fahrenheit and at a |
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pressure of 14.7 pounds per square inch absolute, but does not |
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include [compressed natural gas, liquefied] natural gas, gasoline, |
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or diesel fuel. Liquefied gas is considered a special fuel for |
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purposes of Section 151.308. |
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(42) "Motor fuel" means gasoline, diesel fuel, |
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gasoline blended fuel, [compressed natural gas, liquefied natural
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gas,] and other products that are offered for sale, sold, used, or |
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capable of use as fuel for a gasoline-powered engine or a |
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diesel-powered engine. |
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(43) "Motor fuel transporter" means a person who |
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transports gasoline, diesel fuel, gasoline blended fuel, aviation |
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fuel, or any other motor fuel[, except liquefied gas, compressed
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natural gas, or liquefied natural gas,] outside the bulk |
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transfer/terminal system by means of a transport vehicle, a |
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railroad tank car, or a marine vessel. The term does not include a |
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person who: |
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(A) is licensed under this chapter as a supplier, |
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permissive supplier, or distributor; and |
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(B) exclusively transports gasoline, diesel |
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fuel, gasoline blended fuel, aviation fuel, or any other motor fuel |
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to which the person retains ownership while the fuel is being |
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transported by the person. |
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SECTION 3. Section 162.014, Tax Code, is amended to read as |
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follows: |
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Sec. 162.014. OTHER MOTOR FUEL TAXES PROHIBITED. The taxes |
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imposed by this chapter are in lieu of any other excise or |
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occupation tax imposed by a political subdivision of this state on |
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the sale, use, or distribution of gasoline or[,] diesel fuel[,
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compressed natural gas, liquefied natural gas, or liquefied gas]. |
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SECTION 4. Section 162.402(a), Tax Code, is amended to read |
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as follows: |
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(a) A person forfeits to the state a civil penalty of not |
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less than $25 and not more than $200 if the person: |
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(1) refuses to stop and permit the inspection and |
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examination of a motor vehicle transporting or using motor fuel on |
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demand of a peace officer or the comptroller; |
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(2) operates a motor vehicle in this state without a |
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valid interstate trucker's license or a trip permit when the person |
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is required to hold one of those licenses or permits; |
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(3) transports gasoline or diesel fuel in any cargo |
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tank that has a connection by pipe, tube, valve, or otherwise with |
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the fuel injector or carburetor of, or with the fuel supply tank |
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feeding the fuel injector or carburetor of, the motor vehicle |
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transporting the product; |
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(4) sells or delivers gasoline or diesel fuel from any |
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fuel supply tank connected with the fuel injector or carburetor of a |
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motor vehicle; |
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(5) owns or operates a motor vehicle for which reports |
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or mileage records are required by this chapter without an |
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operating odometer or other device in good working condition to |
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record accurately the miles traveled; |
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(6) furnishes to a licensed supplier or distributor a |
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signed statement for purchasing diesel fuel tax-free and then uses |
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the tax-free diesel fuel to operate a diesel-powered motor vehicle |
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on a public highway; |
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(7) fails or refuses to comply with or violates a |
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provision of this chapter; |
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(8) fails or refuses to comply with or violates a |
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comptroller's rule for administering or enforcing this chapter; |
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(9) is an importer who does not obtain an import |
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verification number when required by this chapter; or |
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(10) purchases motor fuel for export, on which the tax |
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imposed by this chapter has not been paid, and subsequently diverts |
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or causes the motor fuel to be diverted to a destination in this |
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state or any other state or country other than the originally |
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designated state or country without first obtaining a diversion |
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number[;
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[(11)
delivers compressed natural gas or liquefied
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natural gas into the fuel supply tank of a motor vehicle and the
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person does not hold a valid compressed natural gas and liquefied
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natural gas dealer's license; or
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[(12)
makes a tax-free delivery of compressed natural
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gas or liquefied natural gas into the fuel supply tank of a motor
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vehicle, unless the delivery is exempt from tax under Section
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162.356]. |
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SECTION 5. Section 162.403, Tax Code, is amended to read as |
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follows: |
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Sec. 162.403. CRIMINAL OFFENSES. Except as provided by |
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Section 162.404, a person commits an offense if the person: |
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(1) refuses to stop and permit the inspection and |
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examination of a motor vehicle transporting or using motor fuel on |
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the demand of a peace officer or the comptroller; |
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(2) is required to hold a valid trip permit or |
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interstate trucker's license, but operates a motor vehicle in this |
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state without a valid trip permit or interstate trucker's license; |
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(3) transports gasoline or diesel fuel in any cargo |
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tank that has a connection by pipe, tube, valve, or otherwise with |
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the fuel injector or carburetor or with the fuel supply tank feeding |
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the fuel injector or carburetor of the motor vehicle transporting |
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the product; |
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(4) sells or delivers gasoline or diesel fuel from a |
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fuel supply tank that is connected with the fuel injector or |
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carburetor of a motor vehicle; |
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(5) owns or operates a motor vehicle for which reports |
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or mileage records are required by this chapter without an |
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operating odometer or other device in good working condition to |
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record accurately the miles traveled; |
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(6) sells or delivers dyed diesel fuel for the |
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operation of a motor vehicle on a public highway; |
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(7) uses dyed diesel fuel for the operation of a motor |
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vehicle on a public highway except as allowed under Section |
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162.235; |
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(8) refuses to permit the comptroller or the attorney |
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general to inspect, examine, or audit a book or record required to |
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be kept by a license holder, other user, or any person required to |
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hold a license under this chapter; |
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(9) refuses to permit the comptroller or the attorney |
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general to inspect or examine any plant, equipment, materials, or |
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premises where motor fuel is produced, processed, blended, stored, |
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sold, delivered, or used; |
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(10) refuses to permit the comptroller, the attorney |
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general, an employee of either of those officials, a peace officer, |
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an employee of the Texas Commission on Environmental Quality, or an |
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employee of the Department of Agriculture to measure or gauge the |
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contents of or take samples from a storage tank or container on |
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premises where motor fuel is produced, processed, blended, stored, |
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sold, delivered, or used; |
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(11) is a license holder, a person required to be |
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licensed, or another user and fails or refuses to make or deliver to |
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the comptroller a report required by this chapter to be made and |
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delivered to the comptroller; |
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(12) is an importer who does not obtain an import |
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verification number when required by this chapter; |
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(13) purchases motor fuel for export, on which the tax |
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imposed by this chapter has not been paid, and subsequently diverts |
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or causes the motor fuel to be diverted to a destination in this |
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state or any other state or country other than the originally |
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designated state or country without first obtaining a diversion |
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number; |
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(14) conceals motor fuel with the intent of engaging |
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in any conduct proscribed by this chapter or refuses to make sales |
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of motor fuel on the volume-corrected basis prescribed by this |
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chapter; |
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(15) refuses, while transporting motor fuel, to stop |
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the motor vehicle the person is operating when called on to do so by |
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a person authorized to stop the motor vehicle; |
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(16) refuses to surrender a motor vehicle and cargo |
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for impoundment after being ordered to do so by a person authorized |
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to impound the motor vehicle and cargo; |
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(17) mutilates, destroys, or secretes a book or record |
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required by this chapter to be kept by a license holder, other user, |
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or person required to hold a license under this chapter; |
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(18) is a license holder, other user, or other person |
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required to hold a license under this chapter, or the agent or |
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employee of one of those persons, and makes a false entry or fails |
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to make an entry in the books and records required under this |
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chapter to be made by the person or fails to retain a document as |
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required by this chapter; |
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(19) transports in any manner motor fuel under a false |
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cargo manifest or shipping document, or transports in any manner |
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motor fuel to a location without delivering at the same time a |
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shipping document relating to that shipment; |
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(20) engages in a motor fuel transaction that requires |
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that the person have a license under this chapter without then and |
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there holding the required license; |
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(21) makes and delivers to the comptroller a report |
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required under this chapter to be made and delivered to the |
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comptroller, if the report contains false information; |
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(22) forges, falsifies, or alters an invoice or |
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shipping document prescribed by law; |
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(23) makes any statement, knowing said statement to be |
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false, in a claim for a tax refund filed with the comptroller; |
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(24) furnishes to a licensed supplier or distributor a |
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signed statement for purchasing diesel fuel tax-free and then uses |
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the tax-free diesel fuel to operate a diesel-powered motor vehicle |
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on a public highway; |
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(25) holds an aviation fuel dealer's license and makes |
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a taxable sale or use of any gasoline or diesel fuel; |
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(26) fails to remit any tax funds collected or |
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required to be collected by a license holder, another user, or any |
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other person required to hold a license under this chapter; |
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(27) makes a sale of dyed diesel fuel tax-free into a |
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storage facility of a person who: |
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(A) is not licensed as a distributor, as an |
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aviation fuel dealer, or as a dyed diesel fuel bonded user; or |
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(B) does not furnish to the licensed supplier or |
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distributor a signed statement prescribed in Section 162.206; |
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(28) makes a sale of gasoline tax-free to any person |
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who is not licensed as an aviation fuel dealer; |
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(29) purchases any motor fuel tax-free when not |
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authorized to make a tax-free purchase under this chapter; |
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(30) purchases motor fuel with the intent to evade any |
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tax imposed by this chapter or accepts a delivery of motor fuel by |
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any means and does not at the same time accept or receive a shipping |
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document relating to the delivery; |
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(31) transports motor fuel for which a cargo manifest |
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or shipping document is required to be carried without possessing |
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or exhibiting on demand by an officer authorized to make the demand |
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a cargo manifest or shipping document containing the information |
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required to be shown on the manifest or shipping document; |
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(32) imports, sells, uses, blends, distributes, or |
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stores motor fuel within this state on which the taxes imposed by |
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this chapter are owed but have not been first paid to or reported by |
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a license holder, another user, or any other person required to hold |
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a license under this chapter; |
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(33) blends products together to produce a blended |
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fuel that is offered for sale, sold, or used and that expands the |
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volume of the original product to evade paying applicable motor |
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fuel taxes; or |
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(34) evades or attempts to evade in any manner a tax |
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imposed on motor fuel by this chapter[;
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[(35)
delivers compressed natural gas or liquefied
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natural gas into the fuel supply tank of a motor vehicle and the
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person does not hold a valid compressed natural gas and liquefied
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natural gas dealer's license; or
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[(36)
makes a tax-free delivery of compressed natural
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gas or liquefied natural gas into the fuel supply tank of a motor
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vehicle, unless the delivery is exempt from tax under Section
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162.356]. |
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SECTION 6. Section 162.405(b), Tax Code, is amended to read |
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as follows: |
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(b) An offense under Section 162.403(8), (9), (10), (11), |
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(12), or (13)[, (35), or (36)] is a Class B misdemeanor. |
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SECTION 7. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 151.308(b); |
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(2) Sections 162.001(16), (19-a), (24-a), (29-a), and |
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(40-a); |
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(3) Subchapter D-1, Chapter 162; and |
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(4) Section 162.506. |
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SECTION 8. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 9. The change in law made by this Act applies only |
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to an offense committed on or after the effective date of this Act. |
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An offense committed before the effective date of this Act is |
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governed by the law in effect on the date the offense was committed, |
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and the former law is continued in effect for that purpose. For |
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purposes of this section, an offense was committed before the |
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effective date of this Act if any element of the offense occurred |
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before that date. |
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SECTION 10. This Act takes effect September 1, 2019. |