| 1 | 1 | | 86R7666 BEF-D |
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| 2 | 2 | | By: Zaffirini S.B. No. 1781 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the repeal of the motor fuel taxes on compressed natural |
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| 8 | 8 | | gas and liquefied natural gas and the exemption from sales and use |
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| 9 | 9 | | taxes of natural gas used as a motor fuel. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 151.317, Tax Code, is amended by adding |
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| 12 | 12 | | Subsection (f) to read as follows: |
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| 13 | 13 | | (f) Natural gas delivered into the fuel supply tank of a |
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| 14 | 14 | | motor vehicle is exempted from the taxes imposed by this chapter. |
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| 15 | 15 | | SECTION 2. Sections 162.001(4), (19), (29), (38), (39), |
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| 16 | 16 | | (42), and (43), Tax Code, are amended to read as follows: |
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| 17 | 17 | | (4) "Aviation fuel dealer" means a person who: |
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| 18 | 18 | | (A) is the operator of an aircraft servicing |
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| 19 | 19 | | facility; |
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| 20 | 20 | | (B) delivers gasoline or[,] diesel fuel[, |
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| 21 | 21 | | compressed natural gas, or liquefied natural gas] exclusively into |
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| 22 | 22 | | the fuel supply tanks of aircraft or into equipment used solely for |
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| 23 | 23 | | servicing aircraft and used exclusively off-highway; and |
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| 24 | 24 | | (C) does not use, sell, or distribute gasoline |
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| 25 | 25 | | or[,] diesel fuel[, compressed natural gas, or liquefied natural |
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| 26 | 26 | | gas] on which a fuel tax is required to be collected or paid to this |
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| 27 | 27 | | state. |
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| 28 | 28 | | (19) "Diesel fuel" means kerosene or another liquid, |
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| 29 | 29 | | or a combination of liquids blended together, offered for sale, |
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| 30 | 30 | | sold, used, or capable of use as fuel for the propulsion of a |
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| 31 | 31 | | diesel-powered engine. The term includes products commonly |
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| 32 | 32 | | referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel |
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| 33 | 33 | | fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable |
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| 34 | 34 | | diesel, biodiesel, distillate fuel, cutter stock, or heating oil, |
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| 35 | 35 | | but does not include [compressed natural gas, liquefied natural |
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| 36 | 36 | | gas,] gasoline or[,] aviation gasoline[, or liquefied gas]. |
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| 37 | 37 | | (29) "Gasoline" means any liquid or combination of |
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| 38 | 38 | | liquids blended together, offered for sale, sold, used, or capable |
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| 39 | 39 | | of use as fuel for a gasoline-powered engine. The term includes |
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| 40 | 40 | | gasohol, aviation gasoline, and blending agents, but does not |
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| 41 | 41 | | include [compressed natural gas, liquefied natural gas,] racing |
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| 42 | 42 | | gasoline, diesel fuel, or aviation jet fuel[, or liquefied gas]. |
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| 43 | 43 | | (38) "License holder" means a person licensed by the |
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| 44 | 44 | | comptroller under Section 162.105 or[,] 162.205[, 162.357, or |
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| 45 | 45 | | 162.358]. |
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| 46 | 46 | | (39) "Liquefied gas" means all combustible gases that |
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| 47 | 47 | | exist in the gaseous state at 60 degrees Fahrenheit and at a |
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| 48 | 48 | | pressure of 14.7 pounds per square inch absolute, but does not |
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| 49 | 49 | | include [compressed natural gas, liquefied] natural gas, gasoline, |
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| 50 | 50 | | or diesel fuel. Liquefied gas is considered a special fuel for |
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| 51 | 51 | | purposes of Section 151.308. |
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| 52 | 52 | | (42) "Motor fuel" means gasoline, diesel fuel, |
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| 53 | 53 | | gasoline blended fuel, [compressed natural gas, liquefied natural |
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| 54 | 54 | | gas,] and other products that are offered for sale, sold, used, or |
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| 55 | 55 | | capable of use as fuel for a gasoline-powered engine or a |
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| 56 | 56 | | diesel-powered engine. |
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| 57 | 57 | | (43) "Motor fuel transporter" means a person who |
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| 58 | 58 | | transports gasoline, diesel fuel, gasoline blended fuel, aviation |
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| 59 | 59 | | fuel, or any other motor fuel[, except liquefied gas, compressed |
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| 60 | 60 | | natural gas, or liquefied natural gas,] outside the bulk |
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| 61 | 61 | | transfer/terminal system by means of a transport vehicle, a |
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| 62 | 62 | | railroad tank car, or a marine vessel. The term does not include a |
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| 63 | 63 | | person who: |
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| 64 | 64 | | (A) is licensed under this chapter as a supplier, |
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| 65 | 65 | | permissive supplier, or distributor; and |
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| 66 | 66 | | (B) exclusively transports gasoline, diesel |
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| 67 | 67 | | fuel, gasoline blended fuel, aviation fuel, or any other motor fuel |
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| 68 | 68 | | to which the person retains ownership while the fuel is being |
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| 69 | 69 | | transported by the person. |
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| 70 | 70 | | SECTION 3. Section 162.014, Tax Code, is amended to read as |
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| 71 | 71 | | follows: |
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| 72 | 72 | | Sec. 162.014. OTHER MOTOR FUEL TAXES PROHIBITED. The taxes |
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| 73 | 73 | | imposed by this chapter are in lieu of any other excise or |
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| 74 | 74 | | occupation tax imposed by a political subdivision of this state on |
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| 75 | 75 | | the sale, use, or distribution of gasoline or[,] diesel fuel[, |
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| 76 | 76 | | compressed natural gas, liquefied natural gas, or liquefied gas]. |
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| 77 | 77 | | SECTION 4. Section 162.402(a), Tax Code, is amended to read |
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| 78 | 78 | | as follows: |
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| 79 | 79 | | (a) A person forfeits to the state a civil penalty of not |
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| 80 | 80 | | less than $25 and not more than $200 if the person: |
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| 81 | 81 | | (1) refuses to stop and permit the inspection and |
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| 82 | 82 | | examination of a motor vehicle transporting or using motor fuel on |
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| 83 | 83 | | demand of a peace officer or the comptroller; |
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| 84 | 84 | | (2) operates a motor vehicle in this state without a |
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| 85 | 85 | | valid interstate trucker's license or a trip permit when the person |
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| 86 | 86 | | is required to hold one of those licenses or permits; |
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| 87 | 87 | | (3) transports gasoline or diesel fuel in any cargo |
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| 88 | 88 | | tank that has a connection by pipe, tube, valve, or otherwise with |
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| 89 | 89 | | the fuel injector or carburetor of, or with the fuel supply tank |
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| 90 | 90 | | feeding the fuel injector or carburetor of, the motor vehicle |
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| 91 | 91 | | transporting the product; |
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| 92 | 92 | | (4) sells or delivers gasoline or diesel fuel from any |
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| 93 | 93 | | fuel supply tank connected with the fuel injector or carburetor of a |
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| 94 | 94 | | motor vehicle; |
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| 95 | 95 | | (5) owns or operates a motor vehicle for which reports |
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| 96 | 96 | | or mileage records are required by this chapter without an |
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| 97 | 97 | | operating odometer or other device in good working condition to |
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| 98 | 98 | | record accurately the miles traveled; |
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| 99 | 99 | | (6) furnishes to a licensed supplier or distributor a |
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| 100 | 100 | | signed statement for purchasing diesel fuel tax-free and then uses |
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| 101 | 101 | | the tax-free diesel fuel to operate a diesel-powered motor vehicle |
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| 102 | 102 | | on a public highway; |
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| 103 | 103 | | (7) fails or refuses to comply with or violates a |
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| 104 | 104 | | provision of this chapter; |
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| 105 | 105 | | (8) fails or refuses to comply with or violates a |
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| 106 | 106 | | comptroller's rule for administering or enforcing this chapter; |
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| 107 | 107 | | (9) is an importer who does not obtain an import |
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| 108 | 108 | | verification number when required by this chapter; or |
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| 109 | 109 | | (10) purchases motor fuel for export, on which the tax |
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| 110 | 110 | | imposed by this chapter has not been paid, and subsequently diverts |
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| 111 | 111 | | or causes the motor fuel to be diverted to a destination in this |
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| 112 | 112 | | state or any other state or country other than the originally |
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| 113 | 113 | | designated state or country without first obtaining a diversion |
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| 114 | 114 | | number[; |
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| 115 | 115 | | [(11) delivers compressed natural gas or liquefied |
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| 116 | 116 | | natural gas into the fuel supply tank of a motor vehicle and the |
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| 117 | 117 | | person does not hold a valid compressed natural gas and liquefied |
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| 118 | 118 | | natural gas dealer's license; or |
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| 119 | 119 | | [(12) makes a tax-free delivery of compressed natural |
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| 120 | 120 | | gas or liquefied natural gas into the fuel supply tank of a motor |
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| 121 | 121 | | vehicle, unless the delivery is exempt from tax under Section |
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| 122 | 122 | | 162.356]. |
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| 123 | 123 | | SECTION 5. Section 162.403, Tax Code, is amended to read as |
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| 124 | 124 | | follows: |
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| 125 | 125 | | Sec. 162.403. CRIMINAL OFFENSES. Except as provided by |
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| 126 | 126 | | Section 162.404, a person commits an offense if the person: |
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| 127 | 127 | | (1) refuses to stop and permit the inspection and |
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| 128 | 128 | | examination of a motor vehicle transporting or using motor fuel on |
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| 129 | 129 | | the demand of a peace officer or the comptroller; |
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| 130 | 130 | | (2) is required to hold a valid trip permit or |
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| 131 | 131 | | interstate trucker's license, but operates a motor vehicle in this |
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| 132 | 132 | | state without a valid trip permit or interstate trucker's license; |
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| 133 | 133 | | (3) transports gasoline or diesel fuel in any cargo |
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| 134 | 134 | | tank that has a connection by pipe, tube, valve, or otherwise with |
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| 135 | 135 | | the fuel injector or carburetor or with the fuel supply tank feeding |
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| 136 | 136 | | the fuel injector or carburetor of the motor vehicle transporting |
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| 137 | 137 | | the product; |
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| 138 | 138 | | (4) sells or delivers gasoline or diesel fuel from a |
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| 139 | 139 | | fuel supply tank that is connected with the fuel injector or |
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| 140 | 140 | | carburetor of a motor vehicle; |
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| 141 | 141 | | (5) owns or operates a motor vehicle for which reports |
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| 142 | 142 | | or mileage records are required by this chapter without an |
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| 143 | 143 | | operating odometer or other device in good working condition to |
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| 144 | 144 | | record accurately the miles traveled; |
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| 145 | 145 | | (6) sells or delivers dyed diesel fuel for the |
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| 146 | 146 | | operation of a motor vehicle on a public highway; |
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| 147 | 147 | | (7) uses dyed diesel fuel for the operation of a motor |
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| 148 | 148 | | vehicle on a public highway except as allowed under Section |
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| 149 | 149 | | 162.235; |
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| 150 | 150 | | (8) refuses to permit the comptroller or the attorney |
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| 151 | 151 | | general to inspect, examine, or audit a book or record required to |
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| 152 | 152 | | be kept by a license holder, other user, or any person required to |
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| 153 | 153 | | hold a license under this chapter; |
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| 154 | 154 | | (9) refuses to permit the comptroller or the attorney |
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| 155 | 155 | | general to inspect or examine any plant, equipment, materials, or |
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| 156 | 156 | | premises where motor fuel is produced, processed, blended, stored, |
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| 157 | 157 | | sold, delivered, or used; |
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| 158 | 158 | | (10) refuses to permit the comptroller, the attorney |
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| 159 | 159 | | general, an employee of either of those officials, a peace officer, |
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| 160 | 160 | | an employee of the Texas Commission on Environmental Quality, or an |
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| 161 | 161 | | employee of the Department of Agriculture to measure or gauge the |
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| 162 | 162 | | contents of or take samples from a storage tank or container on |
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| 163 | 163 | | premises where motor fuel is produced, processed, blended, stored, |
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| 164 | 164 | | sold, delivered, or used; |
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| 165 | 165 | | (11) is a license holder, a person required to be |
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| 166 | 166 | | licensed, or another user and fails or refuses to make or deliver to |
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| 167 | 167 | | the comptroller a report required by this chapter to be made and |
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| 168 | 168 | | delivered to the comptroller; |
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| 169 | 169 | | (12) is an importer who does not obtain an import |
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| 170 | 170 | | verification number when required by this chapter; |
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| 171 | 171 | | (13) purchases motor fuel for export, on which the tax |
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| 172 | 172 | | imposed by this chapter has not been paid, and subsequently diverts |
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| 173 | 173 | | or causes the motor fuel to be diverted to a destination in this |
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| 174 | 174 | | state or any other state or country other than the originally |
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| 175 | 175 | | designated state or country without first obtaining a diversion |
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| 176 | 176 | | number; |
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| 177 | 177 | | (14) conceals motor fuel with the intent of engaging |
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| 178 | 178 | | in any conduct proscribed by this chapter or refuses to make sales |
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| 179 | 179 | | of motor fuel on the volume-corrected basis prescribed by this |
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| 180 | 180 | | chapter; |
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| 181 | 181 | | (15) refuses, while transporting motor fuel, to stop |
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| 182 | 182 | | the motor vehicle the person is operating when called on to do so by |
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| 183 | 183 | | a person authorized to stop the motor vehicle; |
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| 184 | 184 | | (16) refuses to surrender a motor vehicle and cargo |
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| 185 | 185 | | for impoundment after being ordered to do so by a person authorized |
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| 186 | 186 | | to impound the motor vehicle and cargo; |
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| 187 | 187 | | (17) mutilates, destroys, or secretes a book or record |
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| 188 | 188 | | required by this chapter to be kept by a license holder, other user, |
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| 189 | 189 | | or person required to hold a license under this chapter; |
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| 190 | 190 | | (18) is a license holder, other user, or other person |
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| 191 | 191 | | required to hold a license under this chapter, or the agent or |
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| 192 | 192 | | employee of one of those persons, and makes a false entry or fails |
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| 193 | 193 | | to make an entry in the books and records required under this |
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| 194 | 194 | | chapter to be made by the person or fails to retain a document as |
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| 195 | 195 | | required by this chapter; |
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| 196 | 196 | | (19) transports in any manner motor fuel under a false |
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| 197 | 197 | | cargo manifest or shipping document, or transports in any manner |
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| 198 | 198 | | motor fuel to a location without delivering at the same time a |
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| 199 | 199 | | shipping document relating to that shipment; |
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| 200 | 200 | | (20) engages in a motor fuel transaction that requires |
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| 201 | 201 | | that the person have a license under this chapter without then and |
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| 202 | 202 | | there holding the required license; |
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| 203 | 203 | | (21) makes and delivers to the comptroller a report |
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| 204 | 204 | | required under this chapter to be made and delivered to the |
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| 205 | 205 | | comptroller, if the report contains false information; |
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| 206 | 206 | | (22) forges, falsifies, or alters an invoice or |
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| 207 | 207 | | shipping document prescribed by law; |
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| 208 | 208 | | (23) makes any statement, knowing said statement to be |
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| 209 | 209 | | false, in a claim for a tax refund filed with the comptroller; |
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| 210 | 210 | | (24) furnishes to a licensed supplier or distributor a |
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| 211 | 211 | | signed statement for purchasing diesel fuel tax-free and then uses |
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| 212 | 212 | | the tax-free diesel fuel to operate a diesel-powered motor vehicle |
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| 213 | 213 | | on a public highway; |
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| 214 | 214 | | (25) holds an aviation fuel dealer's license and makes |
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| 215 | 215 | | a taxable sale or use of any gasoline or diesel fuel; |
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| 216 | 216 | | (26) fails to remit any tax funds collected or |
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| 217 | 217 | | required to be collected by a license holder, another user, or any |
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| 218 | 218 | | other person required to hold a license under this chapter; |
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| 219 | 219 | | (27) makes a sale of dyed diesel fuel tax-free into a |
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| 220 | 220 | | storage facility of a person who: |
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| 221 | 221 | | (A) is not licensed as a distributor, as an |
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| 222 | 222 | | aviation fuel dealer, or as a dyed diesel fuel bonded user; or |
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| 223 | 223 | | (B) does not furnish to the licensed supplier or |
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| 224 | 224 | | distributor a signed statement prescribed in Section 162.206; |
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| 225 | 225 | | (28) makes a sale of gasoline tax-free to any person |
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| 226 | 226 | | who is not licensed as an aviation fuel dealer; |
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| 227 | 227 | | (29) purchases any motor fuel tax-free when not |
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| 228 | 228 | | authorized to make a tax-free purchase under this chapter; |
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| 229 | 229 | | (30) purchases motor fuel with the intent to evade any |
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| 230 | 230 | | tax imposed by this chapter or accepts a delivery of motor fuel by |
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| 231 | 231 | | any means and does not at the same time accept or receive a shipping |
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| 232 | 232 | | document relating to the delivery; |
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| 233 | 233 | | (31) transports motor fuel for which a cargo manifest |
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| 234 | 234 | | or shipping document is required to be carried without possessing |
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| 235 | 235 | | or exhibiting on demand by an officer authorized to make the demand |
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| 236 | 236 | | a cargo manifest or shipping document containing the information |
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| 237 | 237 | | required to be shown on the manifest or shipping document; |
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| 238 | 238 | | (32) imports, sells, uses, blends, distributes, or |
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| 239 | 239 | | stores motor fuel within this state on which the taxes imposed by |
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| 240 | 240 | | this chapter are owed but have not been first paid to or reported by |
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| 241 | 241 | | a license holder, another user, or any other person required to hold |
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| 242 | 242 | | a license under this chapter; |
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| 243 | 243 | | (33) blends products together to produce a blended |
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| 244 | 244 | | fuel that is offered for sale, sold, or used and that expands the |
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| 245 | 245 | | volume of the original product to evade paying applicable motor |
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| 246 | 246 | | fuel taxes; or |
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| 247 | 247 | | (34) evades or attempts to evade in any manner a tax |
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| 248 | 248 | | imposed on motor fuel by this chapter[; |
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| 249 | 249 | | [(35) delivers compressed natural gas or liquefied |
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| 250 | 250 | | natural gas into the fuel supply tank of a motor vehicle and the |
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| 251 | 251 | | person does not hold a valid compressed natural gas and liquefied |
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| 252 | 252 | | natural gas dealer's license; or |
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| 253 | 253 | | [(36) makes a tax-free delivery of compressed natural |
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| 254 | 254 | | gas or liquefied natural gas into the fuel supply tank of a motor |
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| 255 | 255 | | vehicle, unless the delivery is exempt from tax under Section |
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| 256 | 256 | | 162.356]. |
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| 257 | 257 | | SECTION 6. Section 162.405(b), Tax Code, is amended to read |
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| 258 | 258 | | as follows: |
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| 259 | 259 | | (b) An offense under Section 162.403(8), (9), (10), (11), |
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| 260 | 260 | | (12), or (13)[, (35), or (36)] is a Class B misdemeanor. |
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| 261 | 261 | | SECTION 7. The following provisions of the Tax Code are |
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| 262 | 262 | | repealed: |
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| 263 | 263 | | (1) Section 151.308(b); |
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| 264 | 264 | | (2) Sections 162.001(16), (19-a), (24-a), (29-a), and |
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| 265 | 265 | | (40-a); |
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| 266 | 266 | | (3) Subchapter D-1, Chapter 162; and |
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| 267 | 267 | | (4) Section 162.506. |
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| 268 | 268 | | SECTION 8. The change in law made by this Act does not |
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| 269 | 269 | | affect tax liability accruing before the effective date of this |
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| 270 | 270 | | Act. That liability continues in effect as if this Act had not been |
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| 271 | 271 | | enacted, and the former law is continued in effect for the |
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| 272 | 272 | | collection of taxes due and for civil and criminal enforcement of |
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| 273 | 273 | | the liability for those taxes. |
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| 274 | 274 | | SECTION 9. The change in law made by this Act applies only |
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| 275 | 275 | | to an offense committed on or after the effective date of this Act. |
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| 276 | 276 | | An offense committed before the effective date of this Act is |
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| 277 | 277 | | governed by the law in effect on the date the offense was committed, |
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| 278 | 278 | | and the former law is continued in effect for that purpose. For |
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| 279 | 279 | | purposes of this section, an offense was committed before the |
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| 280 | 280 | | effective date of this Act if any element of the offense occurred |
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| 281 | 281 | | before that date. |
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| 282 | 282 | | SECTION 10. This Act takes effect September 1, 2019. |
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