Texas Senate Bill SB1496

Texas 2009 - 81st Regular

Caption

Relating to the revocation and reinstatement of an end user number for purposes of purchasing dyed diesel fuel.

Note

The bill is set to be effective starting September 1, 2009, which suggests that the legislature anticipates the need for these regulatory changes to be implemented in a timely manner.

Impact

The implementation of SB1496 represents a notable shift in how payment compliance is enforced within the industry, ensuring that only those who meet their legal and financial obligations can continue to operate in the dyed diesel fuel market. By making the end user number contingent on adherence to payment standards, the bill aims to protect licensed suppliers and distributors from financial losses caused by customer defaults.

Summary

SB1496 proposes amendments to the Texas Tax Code with a focus on the revocation and reinstatement of end user numbers for individuals purchasing dyed diesel fuel. The bill stipulates that if a purchaser is found in violation of payment obligations to a licensed supplier or distributor, their end user number will be revoked. This revocation process is tied to judicial actions, where a court judgment indicating non-payment triggers the comptroller's obligation to act by rescinding the end user's certification.

Contention

While the bill's primary focus is on compliance and accountability in the dyed diesel fuel sector, it may raise concerns among stakeholders regarding the fairness and transparency of the revocation process. Critics could argue that the bill does not provide sufficient safeguards for consumers, potentially resulting in undue penalties for those who may have legitimate reasons for payment delays. As such, discussions may arise around the necessary balance between regulation and fair treatment of purchasers.