86(R) SB 2119 - Enrolled version



	S.B. No. 2119

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) "Executive director" means the executive director

of the department.

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

162.001, Tax Code.

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

weighing or measuring device used for motor fuel sales.

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

or control of a weighing or measuring device.

(9) "Sell" includes barter or exchange.

(10) "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.

(11) "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

administer and enforce the provisions of this chapter and shall

regulate 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 executive director, 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 executive director 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 executive

director, 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 under Section 2310.107.

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 executive

director may issue an order to stop the sale of the motor fuel. The

executive director shall issue 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 until discharged by a court

under Subsection (b) or until the executive director finds that the

motor fuel or motor fuel metering device is in compliance with this

chapter.

(b) The owner, custodian, or seller of motor fuel prohibited

from sale by an order of the executive director is entitled to sue

in a court where the motor fuel is found or 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 near 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;

(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. 2310.104. COMPLAINTS REGARDING MOTOR FUEL METERING

DEVICES. In accordance with Chapter 51, the executive director

shall establish methods by which consumers and service recipients

are notified of the name, mailing address, and telephone number of

the department for the purpose of directing complaints to the

department. The department shall provide to the person filing the

complaint and to each person who is a subject of the complaint

information about the department's policies and procedures

relating to complaint investigation and resolution.

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 commission 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 commission rule.

Sec. 2310.106. INSPECTION OF STANDARDS USED TO PERFORM

DEVICE MAINTENANCE ACTIVITIES. (a) In this section, "state

metrology laboratory" means the metrology laboratory maintained by

the Department of Agriculture under Subchapter C, Chapter 13,

Agriculture Code.

(b) 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.

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.

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

character of standards for motor fuel inspected under this section.

(e) The state metrology laboratory shall purchase

additional sets of standards as necessary for use by a department

inspector or other department personnel.

(f) The state metrology laboratory shall inspect and

correct the standards for motor fuel used by a department

inspector, another department employee, 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 and the state metrology laboratory shall

enter into a memorandum of understanding to implement this section.

The memorandum of understanding must provide department personnel

and persons licensed under Subchapter D with access to state

metrology laboratory services equal to the access provided to

Department of Agriculture personnel and persons licensed under

Subchapter I, Chapter 13, Agriculture Code, and under equivalent

terms and conditions.

Sec. 2310.107. 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. 2310.108. FEES. The commission by rule shall

establish fees in amounts reasonable and necessary to cover the

cost of administering this chapter.

Sec. 2310.109. 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. 2310.110. 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. 2310.111. 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 2310.110 in a manner contrary

to those sections.

Sec. 2310.112. PENALTIES. An offense under Section

2310.109, 2310.110, or 2310.111 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,

commission 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 commission rule;

(3) performs device maintenance activities only on a

motor fuel metering device that is:

(A) exempt from the inspection and registration

requirements of Sections 2310.102 and 2310.103 under commission

rules; and

(B) not required to be inspected by other

commission 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

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 exempt from the license requirement, a person may not

employ or contract with 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 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. (a) 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.

(b) The department shall conduct a criminal background

check on each applicant who submits an application for a license

under this subchapter and on any controlling person of the

applicant. The department may, as permitted by law:

(1) examine any criminal conviction, guilty plea, or

deferred adjudication of the applicant or controlling person; and

(2) obtain any criminal history or record of the

applicant or controlling person.

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:

(1) provide proof that the applicant has completed an

academic, trade, or professional course of instruction approved by

the department; and

(2) pass a written test, a practical skills test, or

both.

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 commission

rule.

Sec. 2310.160. INSURANCE POLICY REQUIRED FOR SERVICE

COMPANY. A service company shall maintain a current effective

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 commission rule 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 or two years as established by

commission rule.

Sec. 2310.162. LICENSE RENEWAL. The commission by rule

shall establish the requirements for renewing a license and issuing

a renewal license under this chapter, including payment of

applicable fees.

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

holder shall perform device maintenance activities in compliance

with commission rules.

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

department, as provided by commission 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:

(1) is displayed on each side of the motor fuel pump on

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

displayed;

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

as applicable;

(3) appears in contrasting colors with block letters

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

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

prominent manner, visible to customers using either side of the

pump.

(b) This section does not prohibit the posting of any other

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 the American Society for

Testing and Materials (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 and 13.1016, Agriculture Code,

are transferred to Subchapter C, Chapter 2310, Occupations Code, as

added by this Act, redesignated as Sections 2310.102 and 2310.103,

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 commission [~~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 commission

[~~department~~] rule, a person who owns or operates a motor fuel

metering device shall register the device with the department

before using the device for 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 2310.108 [~~13.1151~~]; and

(4) include documentation of compliance with Section

2310.102 [~~13.1015~~].

two years as [~~year unless a different period is~~] established by

commission [~~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 late fee [~~penalty~~]

may not exceed $50 per device, with a maximum penalty amount of $500

per year for the premises.

SECTION 3. Sections 17.001, 17.0515, 17.052, 17.053,

17.054, 17.055, 17.152, 17.153, and 17.154, Agriculture Code, are

transferred to Subchapter E, Chapter 2310, Occupations Code, as

added by this Act, redesignated as Sections 2310.2001, 2310.2011,

2310.2012, 2310.2013, 2310.2014, 2310.2015, 2310.207, 2310.208,

and 2310.209, Occupations Code, and amended to read as follows:

Sec. 2310.2001 [~~17.001~~]. DEFINITIONS. In this subchapter

[~~chapter~~]:

(1) "Automotive fuel rating" has the meaning assigned

by 15 U.S.C. Section 2821.

(2) "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.

(3) "Distributor" has the meaning assigned by Section

162.001, Tax Code.

(4) "Jobber" means a person who purchases tax-paid

gasoline for resale or distribution at wholesale.

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

162.001, Tax Code.

(6) "Supplier" has the meaning assigned by Section

162.001, Tax Code.

(7) "Wholesaler" means a person who purchases tax-paid

gasoline for resale or distribution at wholesale.

Sec. 2310.2011 [~~17.0515~~]. NOTICE OF MOTOR FUEL TAX RATES.

(a) The department shall display on each motor fuel pump from

which motor fuel is sold at retail a notice of the current rates of

the federal and state motor fuel taxes. The notice must:

(1) display the current rate of each tax, in cents per

gallon, for each type of motor fuel;

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

which the price of the motor fuel sold from the pump is displayed;

and

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

prominent manner.

(b) The department shall include the notice required under

Subsection (a) with any other notice displayed or required by

commission [~~department~~] rule to be displayed[~~, including a "Fuel~~

~~Feedback?" sticker~~].

Sec. 2310.2012 [~~17.052~~]. DOCUMENTATION OF MOTOR FUEL

MIXTURE SALES. (a) Except as provided by Subsection (b), a

distributor, supplier, wholesaler, or jobber of motor fuel may not

deliver to an outlet in this state a motor fuel mixture that

contains ethanol or methanol exceeding one percent by volume of the

mixture unless, at the time of the delivery of the mixture, the

person also delivers to the outlet receiving the delivery a

manifest, bill of sale, bill of lading, or other document

evidencing delivery of the mixture, that includes a statement

containing:

(1) the percentage of ethanol or methanol contained in

the mixture; and

(2) the types and percentages of any associated

cosolvents contained in the mixture.

(b) Subsection (a) does not apply to a delivery made into

the fuel supply tanks of a motor vehicle.

form of the statement required by Subsection (a).

Sec. 2310.2013 [~~17.053~~]. RECORD OF DELIVERY DOCUMENTS;

INSPECTION AUTHORIZED. (a) Each dealer shall keep a copy of each

document required to be delivered to the dealer by Section

2310.2012 [~~17.052~~] until the fourth anniversary of the delivery

date.

(b) Each distributor, supplier, wholesaler, and jobber of

motor fuel shall keep a copy of each document required to be

delivered to the dealer by Section 2310.2012 [~~17.052~~] until the

fourth anniversary of the delivery date.

representative of the department [~~commissioner~~] may inspect

documents described by this section. On written notice issued

[~~presented~~] by the department [~~commissioner~~] or an authorized

representative of the department [~~commissioner~~] to any employee at

a dealer's station or retail outlet or mailed to the principal place

of business of a dealer, distributor, supplier, wholesaler, or

jobber, the dealer, distributor, supplier, wholesaler, or jobber

shall provide the department [~~commissioner~~] or authorized

representative of the department [~~commissioner~~] with the documents

described by this section within the period specified in the

notice.

(d) The commission [~~commissioner~~] by rule may:

(1) require each dealer, distributor, supplier,

wholesaler, and jobber to maintain and make available to the

department:

(A) invoices, receipts, or other transmittal

documents or records, including electronically stored information,

showing or describing the purchase, sale, delivery, or distribution

of motor fuel;

(B) invoices, receipts, work orders, reports, or

other documents, including electronically stored information,

showing or describing the installation, maintenance, or repair of:

(i) motor fuel dispensing devices; and

(ii) any equipment used in connection with

motor fuel dispensing devices to record, display, or produce

receipts or audit trails concerning the purchase, sale, delivery,

or distribution of motor fuel; and

sampling and testing of motor fuel purchased, sold, delivered, or

distributed by the dealer, distributor, supplier, wholesaler, or

jobber; and

(2) prescribe:

(A) the manner of filing documents or records

required to be kept under this section or by commission

[~~department~~] rule; and

(B) the time, place, and manner of inspection of

the documents or records.

Sec. 2310.2014 [~~17.054~~]. DOCUMENTS RELATING TO POSTING OR

CERTIFICATION OF AUTOMOTIVE FUEL RATINGS. (a) Each dealer shall

keep for at least one year a copy of:

(1) each delivery ticket or letter of certification on

which the dealer based a posting of the automotive fuel rating of

motor fuel contained in a motor fuel pump;

(2) each delivery ticket or letter of certification

that is required to be delivered to the dealer under 16 C.F.R. Part

306; and

(3) records of any automotive fuel rating

determination made by the dealer under 16 C.F.R. Part 306.

(b) Each distributor or supplier shall keep for at least one

year at the distributor's or supplier's principal place of business

a copy of each delivery ticket or letter of certification required

to be delivered by the distributor or supplier to a dealer in this

state under 16 C.F.R. Part 306.

representative of the department [~~commissioner~~] may inspect a

document required to be kept under this section. On written notice

issued [~~presented~~] by the department [~~commissioner~~] or an

authorized representative of the department [~~commissioner~~] to any

employee at a dealer's station or retail outlet or mailed to the

dealer's principal place of business, the dealer shall provide the

department [~~commissioner~~] or authorized representative of the

department [~~commissioner~~] with the documents described by this

section within the period specified in the notice.

(d) The commission [~~commissioner~~] by rule may:

(1) require each dealer to maintain and make available

to the department:

(A) invoices, receipts, or other transmittal

documents or records, including electronically stored information,

showing or describing the purchase, sale, delivery, or distribution

of motor fuel;

(B) invoices, receipts, work orders, reports, or

other documents, including electronically stored information,

showing or describing the installation, maintenance, or repair of:

(i) motor fuel dispensing devices; and

(ii) any equipment used in connection with

motor fuel dispensing devices to record, display, or produce

receipts or audit trails concerning the purchase, sale, delivery,

or distribution of motor fuel; and

sampling and testing of motor fuel purchased, sold, delivered, or

distributed by the dealer; and

(2) prescribe:

(A) the manner of filing documents or records

required to be kept under this section or by commission

[~~department~~] rule; and

(B) the time, place, and manner of inspection of

the documents or records.

Sec. 2310.2015 [~~17.055~~]. SALE OF MOTOR FUEL WITH INACCURATE

AUTOMOTIVE FUEL RATING. (a) A dealer may not sell or offer for

sale from a motor fuel pump motor fuel that has an automotive fuel

rating lower than the rating for that motor fuel posted on the pump.

(b) A distributor or supplier of motor fuel may not deliver

or transfer to a dealer in this state motor fuel that has an

automotive fuel rating lower than the certification of the rating

the distributor or supplier is required to make to the dealer under

federal law.

Sec. 2310.207 [~~17.152~~]. CIVIL ACTION. (a) If a dealer or

a distributor, supplier, wholesaler, or jobber of motor fuel

violates Section 2310.201, 2310.2012, 2310.2013, 2310.2014, or

2310.2015 [~~17.051, 17.052, 17.053, 17.054, or 17.055~~], a motor fuel

user who purchased the motor fuel and sustained damages or who has a

complaint about the product may bring an action against the dealer,

distributor, supplier, wholesaler, or jobber.

(b) The action may be brought, without regard to the

specific amount of damages, in the district court in any county in

which:

(1) the dealer, distributor, supplier, wholesaler, or

jobber transacts business; or

(2) the dealer resides.

in an action under this section:

(1) the amount of actual damages;

(2) equitable relief as determined by the court to be

necessary to remedy the effects of the violation, including a

declaratory judgment, permanent injunctive relief, and temporary

injunctive relief; and

(3) court costs and attorney's fees that are

reasonable in relation to the amount of work expended.

(d) In addition to the remedies provided under Subsection

(c), on finding that the defendant wilfully or knowingly violated

Section 2310.201, 2310.2012, or 2310.2013 [~~17.051, 17.052, or~~

~~17.053~~], the trier of fact shall award not more than three times the

amount of actual damages.

(e) A violation of Section 2310.201, 2310.2012, 2310.2013,

2310.2014, or 2310.2015 [~~17.051, 17.052, 17.053, 17.054, or 17.055~~]

also constitutes a deceptive trade practice under Subchapter E,

Chapter 17, Business & Commerce Code.

(f) An action alleging a violation of Section 2310.201,

2310.2012, 2310.2013, 2310.2014, or 2310.2015 [~~17.051, 17.052,~~

~~17.053, 17.054, or 17.055~~] must be commenced and prosecuted not

later than the second anniversary of the date on which the cause of

action accrues.

Sec. 2310.208 [~~17.153~~]. CIVIL PENALTY. A dealer,

distributor, supplier, wholesaler, or jobber who violates Section

2310.201, 2310.2012, 2310.2013, 2310.2014, or 2310.2015 [~~17.051,~~

~~17.052, 17.053, 17.054, or 17.055~~] is liable to this state for a

civil penalty of not less than $200 and not more than $10,000.

Sec. 2310.209 [~~17.154~~]. CRIMINAL OFFENSES. (a) A person

commits an offense if the person knowingly violates Section

2310.201, 2310.2012, 2310.2013, 2310.2014, or 2310.2015 [~~17.051,~~

~~17.052, 17.053, 17.054, or 17.055~~] or a rule adopted by the

commission [~~commissioner~~] to enforce or implement those sections.

(b) A person commits an offense if the person knowingly:

(1) refuses to permit an authorized [a] person

[~~authorized by Section 17.102~~] to test any motor fuel sold or held

for sale in this state;

(2) refuses to permit inspection of any document

required to be kept or delivered by this subchapter [~~chapter~~] on

request of a person authorized to inspect the documents under

Section 2310.2013 or 2310.2014 [~~17.053 or 17.054~~]; or

(3) mutilates, destroys, secretes, forges, or

falsifies any document, record, report, or sign required to be

delivered, kept, filed, or posted by this subchapter [~~chapter~~] or

any rule adopted by the commission [~~commissioner~~] to enforce this

subchapter [~~chapter~~].

misdemeanor.

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

misdemeanor.

(e) The department or executive director [~~commissioner or~~

~~the authorized representative of the commissioner~~] may request the

appropriate prosecuting attorney to prosecute a violation of this

chapter.

SECTION 4. 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 5. Section 13.001, Agriculture Code, is amended by

adding Subsection (c) to read as follows:

fuel.

SECTION 6. 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 7. 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 8. 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 9. 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 10. 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 13.1017;

(7) Section 13.1151(b);

(8) the heading to Chapter 17;

(9) the heading to Subchapter A, Chapter 17;

(10) the heading to Subchapter B, Chapter 17;

(11) Section 17.051;

(12) Subchapter B-1, Chapter 17;

(13) Subchapter C, Chapter 17;

(14) the heading to Subchapter D, Chapter 17;

(15) Section 17.151;

(16) Section 17.155; and

(17) Section 17.156.

SECTION 11. (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 or Texas Department of

Licensing and Regulation, as appropriate. The Department of

Agriculture may not, on or after the effective date of this Act,

change a rule, fee, policy, procedure, decision, or form that

relates to a program or activity transferred under this Act.

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

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, notice, or other

authorization of the Texas Department of Licensing and Regulation

on and 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. The Department of Agriculture may not, on or after the

effective date of this Act, take any action on a complaint,

investigation, contested case, or other proceeding relating to a

program or activity transferred under this Act without the approval

of the executive director of the Texas Department of Licensing and

Regulation or a person designated by the executive director of that

department.

(d) All money, contracts, leases, property, software source

code and documentation, 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 on the effective date of the transfer of the program or

activity.

(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 on the effective date of the transfer of

the program or activity.

(f) Unless the context indicates otherwise, on or after the

effective date of the transfer 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 12. (a) As soon as practicable after the effective

date of 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 13. (a) Except as provided by Subsection (b) of

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

(b) Sections 10 and 11 of this Act take effect immediately

if this Act receives a vote of two-thirds of all the members elected

to each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

those sections of this Act to have immediate effect, those sections

take effect September 1, 2019.

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 2119 passed the Senate on

April 11, 2019, by the following vote: Yeas 27, Nays 4; and that

the Senate concurred in House amendments on May 23, 2019, by the

following vote: Yeas 27, Nays 4.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2119 passed the House, with

amendments, on May 16, 2019, by the following vote: Yeas 129,

Nays 10, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor