Texas 2021 - 87th Regular

Texas House Bill HB3408 Compare Versions

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1-By: Goldman (Senate Sponsor - Alvarado) H.B. No. 3408
2- (In the Senate - Received from the House May 3, 2021;
3- May 12, 2021, read first time and referred to Committee on Business &
4- Commerce; May 21, 2021, reported adversely, with favorable
5- Committee Substitute by the following vote: Yeas 9, Nays 0;
6- May 21, 2021, sent to printer.)
7-Click here to see the committee vote
8- COMMITTEE SUBSTITUTE FOR H.B. No. 3408 By: Hancock
1+87R18751 JES-F
2+ By: Goldman H.B. No. 3408
93
104
115 A BILL TO BE ENTITLED
126 AN ACT
137 relating to the regulation of motor fuel metering devices and motor
148 fuel quality.
159 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1610 SECTION 1. Section 2310.001(a), Occupations Code, is
1711 amended by amending Subdivisions (1), (3), (6), (7), and (8) and
1812 adding Subdivisions (1-a), (4-a), (5-a), (9-a), and (9-b) to read
1913 as follows:
2014 (1) "Automotive fuel rating" has the meaning assigned
2115 by 15 U.S.C. Section 2821.
2216 (1-a) "Commercial [weighing or] measuring device"
2317 means a [weighing or] measuring device used in a commercial
2418 transaction.
2519 (3) "Dealer" means a person who[:
2620 [(A)] is the operator of a [service station or
2721 other] retail motor fuel facility [outlet; and
2822 [(B) delivers motor fuel into the fuel tanks of
2923 motor vehicles or motor boats].
3024 (4-a) "Distributor" means a person who makes retail or
3125 wholesale sales of motor fuel.
3226 (5-a) "Measuring device" means a mechanical or
3327 electronic device used to:
3428 (A) dispense or deliver a motor fuel by volume,
3529 flow rate, or other measure; or
3630 (B) compute the charge for a service related to
3731 motor fuel.
3832 (6) "Motor fuel" means gasoline, diesel fuel, gasoline
3933 blended fuel, aviation gasoline, aviation jet fuel, compressed
4034 natural gas, liquefied natural gas, and other products that are
4135 capable of use as fuel for a gasoline-powered engine or a
4236 diesel-powered engine [has the meaning assigned by Section 162.001,
4337 Tax Code].
4438 (7) "Motor fuel metering device" means a commercial
4539 [weighing or] measuring device used for motor fuel sales.
4640 (8) "Operator" or "user" means a person in possession
4741 or control of a [weighing or] measuring device, including an owner,
4842 custodian, or seller.
4943 (9-a) "Supplier" has the meaning assigned by Section
5044 162.001, Tax Code.
5145 (9-b) "Wholesaler" means a person who purchases
5246 tax-paid motor fuel for resale or distribution at wholesale.
5347 SECTION 2. Section 2310.002(c), Occupations Code, is
5448 amended to read as follows:
5549 (c) The department may contract with one or more license
5650 holders under Subchapter D [of this chapter or Subchapter I,
5751 Chapter 13, Agriculture Code,] to perform the department's duties
5852 under this chapter related to motor fuel metering devices. A
5953 reference in this chapter to the commission or department in the
6054 context of a contracted service means the contractor.
6155 SECTION 3. Chapter 2310, Occupations Code, is amended by
6256 adding Subchapter A-1 to read as follows:
6357 SUBCHAPTER A-1. ADVISORY BOARD
6458 Sec. 2310.031. DEFINITION. In this subchapter, "board"
6559 means the Motor Fuel Metering and Quality Advisory Board.
6660 Sec. 2310.032. BOARD MEMBERSHIP. (a) The board consists of
6761 nine members appointed by the presiding officer of the commission,
6862 with the approval of the commission, as follows:
6963 (1) four members who are dealers or representatives
7064 designated by the dealers, including:
7165 (A) one dealer that has fewer than 501 motor fuel
7266 metering devices registered with the department;
7367 (B) one dealer that has more than 1,000 but fewer
7468 than 5,000 motor fuel metering devices registered with the
7569 department;
7670 (C) one dealer that has more than 5,000 motor
7771 fuel metering devices registered with the department; and
7872 (D) one dealer without regard to the dealer's
7973 number of motor fuel metering devices registered with the
8074 department;
8175 (2) two members who represent service companies, as
8276 defined by Section 2310.151;
8377 (3) one member who represents a wholesaler or
8478 distributor;
8579 (4) one member who represents a supplier; and
8680 (5) one member of the public.
8781 (b) The presiding officer of the commission, with the
8882 approval of the commission, shall appoint two ex officio nonvoting
8983 members of the board. An ex officio member is not counted as a
9084 member for purposes of establishing a quorum. The ex officio
9185 members must include:
9286 (1) one member who represents:
9387 (A) a financial institution, as defined by
9488 Section 277.001, Finance Code; or
9589 (B) a credit card issuer other than a financial
9690 institution; and
9791 (2) one member who represents a law enforcement
9892 agency.
9993 (c) Appointments to the board shall be made without regard
10094 to the race, color, disability, sex, religion, age, or national
10195 origin of the appointees.
10296 Sec. 2310.033. TERMS; VACANCY. (a) Members of the board
10397 serve staggered six-year terms, with the terms of three or four
10498 members expiring on February 1 of each odd-numbered year.
10599 (b) If a vacancy occurs during a member's term, the
106100 presiding officer of the commission, with the commission's
107101 approval, shall appoint a replacement to fill the unexpired term.
108102 Sec. 2310.034. PRESIDING OFFICER. The presiding officer of
109103 the commission, with the approval of the commission, shall appoint
110104 one of the board members to serve as presiding officer of the board
111105 for a term of one year.
112106 Sec. 2310.035. DUTIES. The board may advise the commission
113107 and department on:
114108 (1) the adoption of appropriate standards for the
115109 installation, maintenance, calibration, alteration, operation,
116110 testing, or inspection, as applicable, of:
117111 (A) motor fuel dispensing devices;
118112 (B) motor fuel metering devices; and
119113 (C) motor fuel;
120114 (2) education and curricula for applicants for a
121115 license issued under this chapter and license holders;
122116 (3) the content of examinations;
123117 (4) proposed rules and standards on technical issues
124118 related to motor fuel metering and quality and payment card
125119 skimmers; and
126120 (5) other issues affecting motor fuel metering and
127121 quality.
128122 Sec. 2310.036. MEETINGS. The advisory board shall meet at
129123 the call of the executive director or the presiding officer of the
130124 commission.
131125 SECTION 4. The heading to Subchapter B, Chapter 2310,
132126 Occupations Code, is amended to read as follows:
133127 SUBCHAPTER B. STANDARD [WEIGHTS AND] MEASURES FOR MOTOR FUEL
134128 SECTION 5. Sections 2310.051(a), (c), and (d), Occupations
135129 Code, are amended to read as follows:
136130 (a) The legal standard for the [weight or] measure of a
137131 motor fuel in this state is the standard [weight or] measure adopted
138132 and used by the government of the United States for that motor fuel.
139133 If the United States does not provide a standard [weight or] measure
140134 for a motor fuel, the standard for the motor fuel is that
141135 established by this subchapter.
142136 (c) Except as otherwise provided by an express contract, a
143137 contract for work or sales by [weight or] measure of a motor fuel
144138 shall be construed in accordance with the standards of this
145139 subchapter.
146140 (d) The standards of this subchapter shall be the guide for
147141 making any adjustment of [weighing or] measuring devices under the
148142 law of this state.
149143 SECTION 6. Section 2310.053, Occupations Code, is amended
150144 by adding Subsection (c) to read as follows:
151145 (c) Notwithstanding Section 2310.002, this chapter does not
152146 apply to a weighing or measuring device, as defined by Section
153147 13.001, Agriculture Code, that measures liquefied petroleum gas.
154- SECTION 7. Section 2310.054, Occupations Code, is amended
155- to read as follows:
156- Sec. 2310.054. SALE OF MOTOR FUEL BY PROPER MEASURE. (a)
157- Except as otherwise provided by this section, motor fuel shall be
158- sold by liquid measure.
159- (b) Compressed natural gas and liquefied natural gas shall
160- be sold by gallon equivalent [weight].
161- (c) A person violates this chapter if[, in violation of this
162- section,] the person sells motor fuel in a manner [by] other than
163- the manner required by this section [weight or liquid measure].
148+ SECTION 7. Sections 2310.054(a) and (c), Occupations Code,
149+ are amended to read as follows:
150+ (a) Motor [Except as otherwise provided by this section,
151+ motor] fuel shall be sold by liquid measure.
152+ (c) A person violates this chapter if, in violation of this
153+ section, the person sells motor fuel by other than [weight or]
154+ liquid measure.
164155 SECTION 8. Section 2310.056, Occupations Code, is amended
165156 to read as follows:
166157 Sec. 2310.056. FALSE REPRESENTATION OF MOTOR FUEL QUANTITY.
167158 A person violates this chapter if the person or the person's
168159 representative or agent:
169160 (1) sells or offers or exposes for sale a quantity of
170161 motor fuel that is less than the quantity the person represents; or
171162 (2) as a buyer furnishing the [weight or] measure of a
172163 motor fuel by which the amount of the motor fuel is determined,
173164 takes or attempts to take more than the quantity the person
174165 represents.
175166 SECTION 9. Section 2310.057, Occupations Code, is amended
176167 to read as follows:
177168 Sec. 2310.057. USE OF INCORRECT MOTOR FUEL METERING DEVICE.
178169 (a) A person commits an offense if the person or the person's
179170 representative or agent knowingly uses an incorrect [weighing or]
180171 measuring device in:
181172 (1) buying or selling motor fuel;
182173 (2) computing a charge for services rendered on the
183174 basis of [weight or] measure; or
184175 (3) determining the [weight or] measure of motor fuel,
185176 if a charge is made for the determination.
186177 (b) For the purpose of this section, a [weighing or]
187178 measuring device is incorrect if it:
188179 (1) does not conform as closely as practicable to the
189180 official standards;
190181 (2) is not accurate;
191182 (3) is of a construction that is not reasonably
192183 permanent in adjustment or does not correctly repeat its
193184 indications;
194185 (4) facilitates the perpetration of fraud; or
195186 (5) does not conform to the specifications and
196187 tolerances under Section 2310.107.
197188 SECTION 10. Sections 2310.059(a) and (c), Occupations Code,
198189 are amended to read as follows:
199190 (a) The department shall from time to time [weigh or]
200191 measure an amount of motor fuel that is kept or offered for sale,
201192 sold, or in the process of delivery, in order to determine:
202193 (1) if the motor fuel is of the amount or quantity
203194 represented; or
204195 (2) if the motor fuel is being offered for sale or sold
205196 in accordance with law.
206197 (c) A person commits an offense if the person or the
207198 person's employee or agent refuses to exhibit motor fuel being sold
208199 or offered for sale at a given [weight or] quantity, or ordinarily
209200 sold in that manner, to the department for testing and proving as to
210201 quantity.
211202 SECTION 11. Sections 2310.060(a) and (b), Occupations Code,
212203 are amended to read as follows:
213204 (a) If the department has reason to believe that motor fuel
214205 is being sold or kept, offered, or exposed for sale in violation of
215206 this chapter or that motor fuel is being sold or offered for sale by
216207 or through the use of a motor fuel metering device that is in
217208 violation of this chapter, the executive director may issue an
218209 order to stop the sale of the motor fuel. The executive director
219210 shall issue the order to the dealer or operator of the retail motor
220211 fuel facility selling [owner or custodian of] the motor fuel or
221212 offering the motor fuel for sale [or seller of the motor fuel]. The
222213 person receiving the order may not sell the motor fuel until
223214 discharged by a court under Subsection (b) or until the executive
224215 director finds that the motor fuel or motor fuel metering device is
225216 in compliance with this chapter.
226217 (b) A dealer or operator [The owner, custodian, or seller of
227218 motor fuel] prohibited from selling motor fuel [sale] by an order of
228219 the executive director is entitled to sue in a court where the motor
229220 fuel is found or is being sold or offered for sale for a judgment as
230221 to the justification of the order and for the discharge of the motor
231222 fuel in accordance with the findings of the court.
232223 SECTION 12. Section 2310.061(b), Occupations Code, is
233224 amended to read as follows:
234225 (b) It is a defense to prosecution or to the imposition of a
235226 civil or administrative penalty for a violation of Section 2310.057
236227 or 2310.059 that a discrepancy between the actual [weight or]
237228 volume at the time of sale to a consumer or a discrepancy between
238229 the fill of a container and the capacity of the container is due to
239230 unavoidable leakage, shrinkage, evaporation, waste, or causes
240231 beyond the control of the seller acting in good faith.
241232 SECTION 13. Section 2310.101(a), Occupations Code, is
242233 amended to read as follows:
243234 (a) If the department has reason to believe that a motor
244235 fuel metering device is being used for a commercial transaction and
245236 the device is not registered with the department or is being used to
246237 facilitate the perpetration of fraud, the department may inspect
247238 the device and the records [of the owner, operator, or user of the
248239 device] that relate to use of the device to determine whether the
249240 device is in compliance with this chapter.
250241 SECTION 14. Sections 2310.106(b), (c), (f), and (g),
251242 Occupations Code, are amended to read as follows:
252243 (b) The commission may adopt rules to regulate the frequency
253244 and place of inspection and correction of the standards for motor
254245 fuel used by an individual or business licensed by the department to
255246 perform device maintenance activities under Subchapter D [or an
256247 individual or business licensed under Subchapter I, Chapter 13,
257248 Agriculture Code].
258249 (c) The department may inspect any standard for motor fuel
259250 used by an individual or business licensed by the department to
260251 perform device maintenance activities described by Subchapter D [or
261252 an individual or business licensed under Subchapter I, Chapter 13,
262253 Agriculture Code], if the department has reason to believe a
263254 standard is no longer in compliance with this chapter.
264255 (f) The state metrology laboratory, or a metrology
265256 laboratory certified by the National Institute of Standards and
266257 Technology and approved by the department, shall inspect and
267258 correct the standards for motor fuel used by the [a] department or
268259 [inspector, another department employee,] an individual or
269260 business licensed by the department to perform device maintenance
270261 activities under Subchapter D[, or an individual or business
271262 licensed under Subchapter I, Chapter 13, Agriculture Code].
272263 (g) The department and the state metrology laboratory may
273264 [shall] enter into a memorandum of understanding to implement this
274265 section. The memorandum of understanding must provide department
275266 personnel and persons licensed under Subchapter D with access to
276267 state metrology laboratory services equal to the access provided to
277268 Department of Agriculture personnel and persons licensed under
278269 Subchapter I, Chapter 13, Agriculture Code, and under equivalent
279270 terms and conditions.
280271 SECTION 15. Section 2310.110(b), Occupations Code, is
281272 amended to read as follows:
282273 (b) A person commits an offense if the person or the
283274 person's representative or agent knowingly:
284275 (1) offers or exposes for sale, hire, or award or sells
285276 an incorrect motor fuel metering device;
286277 (2) possesses an incorrect motor fuel metering device;
287278 or
288279 (3) sells, offers for sale, uses, or possesses for the
289280 purpose of sale or use a device or instrument to be used to falsify
290281 or intended to falsify a [weight or] measure for motor fuel.
291282 SECTION 16. Section 2310.154(a), Occupations Code, is
292283 amended to read as follows:
293284 (a) A person is not required to hold a license issued under
294285 this subchapter if the person:
295286 (1) is a department employee who is performing device
296287 maintenance activities in the scope of the person's duties for the
297288 department;
298289 (2) is the owner or operator of a motor fuel metering
299290 device or an employee of the owner or operator of a motor fuel
300291 metering device and the person:
301292 (A) completely removes the motor fuel metering
302293 device from the location at which the device was installed,
303294 including a device subject to an out-of-order tag, stop-sale order,
304295 security seal, lock, condemnation notice, or other item placed on
305296 the device by the department to prohibit use of the device; and
306297 (B) notifies the department of the motor fuel
307298 metering device's removal not later than the 10th day after the date
308299 the device was removed in the manner provided by commission rule; or
309300 (3) performs device maintenance activities only on a
310301 motor fuel metering device that is:
311302 (A) exempt from the inspection and registration
312303 requirements of Sections 2310.102 and 2310.103 under commission
313304 rules; and
314305 (B) not required to be inspected by other
315306 commission rules[; or
316307 [(4) is a license holder under Subchapter I, Chapter
317308 13, Agriculture Code].
318309 SECTION 17. Section 2310.2012(a), Occupations Code, is
319310 amended to read as follows:
320311 (a) Except as provided by Subsection (b), a distributor,
321312 supplier, or wholesaler[, or jobber] of motor fuel may not deliver
322313 to an outlet in this state a motor fuel mixture that contains
323314 ethanol or methanol exceeding one percent by volume of the mixture
324315 unless, at the time of the delivery of the mixture, the person also
325316 delivers to the outlet receiving the delivery a manifest, bill of
326317 sale, bill of lading, or other document evidencing delivery of the
327318 mixture, that includes a statement containing:
328319 (1) the percentage of ethanol or methanol contained in
329320 the mixture; and
330321 (2) the types and percentages of any associated
331322 cosolvents contained in the mixture.
332323 SECTION 18. Sections 2310.2013(b), (c), and (d),
333324 Occupations Code, are amended to read as follows:
334325 (b) Each distributor, supplier, and wholesaler[, and
335326 jobber] of motor fuel shall keep a copy of each document required to
336327 be delivered to the dealer by Section 2310.2012 until the fourth
337328 anniversary of the delivery date.
338329 (c) The department or an authorized representative of the
339330 department may inspect documents described by this section. On
340331 written notice issued by the department or an authorized
341332 representative of the department to any employee at a dealer's
342333 [station or] retail motor fuel facility [outlet] or mailed to the
343334 principal place of business of a dealer, distributor, supplier, or
344335 wholesaler, [or jobber,] the dealer, distributor, supplier, or
345336 wholesaler[, or jobber] shall provide the department or authorized
346337 representative of the department with the documents described by
347338 this section within the period specified in the notice.
348339 (d) The commission by rule may:
349340 (1) require each dealer, distributor, supplier, and
350341 wholesaler[, and jobber] to maintain and make available to the
351342 department:
352343 (A) invoices, receipts, or other transmittal
353344 documents or records, including electronically stored information,
354345 showing or describing the purchase, sale, delivery, or distribution
355346 of motor fuel;
356347 (B) invoices, receipts, work orders, reports, or
357348 other documents, including electronically stored information,
358349 showing or describing the installation, maintenance, or repair of:
359350 (i) motor fuel dispensing devices; and
360351 (ii) any equipment used in connection with
361352 motor fuel dispensing devices to record, display, or produce
362353 receipts or audit trails concerning the purchase, sale, delivery,
363354 or distribution of motor fuel; and
364355 (C) any record or other document related to the
365356 sampling and testing of motor fuel purchased, sold, delivered, or
366357 distributed by the dealer, distributor, supplier, or wholesaler[,
367358 or jobber]; and
368359 (2) prescribe:
369360 (A) the manner of filing documents or records
370361 required to be kept under this section or by commission rule; and
371362 (B) the time, place, and manner of inspection of
372363 the documents or records.
373364 SECTION 19. Sections 2310.2014(b) and (c), Occupations
374365 Code, are amended to read as follows:
375366 (b) Each distributor, [or] supplier, or wholesaler shall
376367 keep for at least one year at the distributor's, [or] supplier's, or
377368 wholesaler's principal place of business a copy of each delivery
378369 ticket or letter of certification required to be delivered by the
379370 distributor, [or] supplier, or wholesaler to a dealer in this state
380371 under 16 C.F.R. Part 306.
381372 (c) The department or an authorized representative of the
382373 department may inspect a document required to be kept under this
383374 section. On written notice issued by the department or an
384375 authorized representative of the department to any employee at a
385376 dealer's [station or] retail motor fuel facility [outlet] or mailed
386377 to the dealer's principal place of business, the dealer shall
387378 provide the department or authorized representative of the
388379 department with the documents described by this section within the
389380 period specified in the notice.
390381 SECTION 20. Section 2310.2015(b), Occupations Code, is
391382 amended to read as follows:
392383 (b) A distributor, wholesaler, or supplier of motor fuel may
393384 not deliver or transfer to a dealer in this state motor fuel that
394385 has an automotive fuel rating lower than the certification of the
395386 rating the distributor, wholesaler, or supplier is required to make
396387 to the dealer under federal law.
397388 SECTION 21. Sections 2310.203(a), (c), and (d), Occupations
398389 Code, are amended to read as follows:
399390 (a) The department or an authorized [a] representative of
400391 the department may collect samples and conduct testing at any
401392 location where motor fuel is kept, transferred, sold, or offered
402393 for sale to verify that the motor fuel complies with the minimum
403394 standards required by Section 2310.202. A person who holds a
404395 license issued under Subchapter D is considered an authorized
405396 representative of the department for purposes of this section.
406397 (c) On arriving at a facility to conduct testing under
407398 Subsection (a), the department or an authorized [a] representative
408399 of the department shall notify the owner or manager of the facility
409400 of the department's or representative's presence and purpose. The
410401 department or representative shall follow the most recent
411402 applicable procedures specified by the American Society for Testing
412403 and Materials (ASTM) International Standard D4057, D4177, D5842, or
413404 D5854 for the collection, sampling, and handling of fuel to prepare
414405 for laboratory analysis.
415406 (d) A person commits an offense if the person refuses to
416407 allow the [a] department or an authorized representative of the
417408 department to collect samples or conduct motor fuel testing under
418409 Subsection (a).
419410 SECTION 22. Sections 2310.207(a) and (b), Occupations Code,
420411 are amended to read as follows:
421412 (a) If a dealer or a distributor, supplier, or wholesaler[,
422413 or jobber] of motor fuel violates Section 2310.201, 2310.2012,
423414 2310.2013, 2310.2014, or 2310.2015, a person [motor fuel user] who
424415 purchased the motor fuel and sustained damages or who has a
425416 complaint about the product may bring an action against the dealer,
426417 distributor, supplier, or wholesaler[, or jobber].
427418 (b) The action may be brought, without regard to the
428419 specific amount of damages, in the district court in any county in
429420 which:
430421 (1) the dealer, distributor, supplier, or
431422 wholesaler[, or jobber] transacts business; or
432423 (2) the dealer resides.
433424 SECTION 23. Section 2310.208, Occupations Code, is amended
434425 to read as follows:
435426 Sec. 2310.208. CIVIL PENALTY. A dealer, distributor,
436427 supplier, or wholesaler[, or jobber] who violates Section 2310.201,
437428 2310.2012, 2310.2013, 2310.2014, or 2310.2015 is liable to this
438429 state for a civil penalty of not less than $200 and not more than
439430 $10,000.
440431 SECTION 24. The following provisions of the Occupations
441432 Code are repealed:
442433 (1) Sections 2310.001(a)(10), (a)(11), and (b);
443- (2) Section 2310.101(b);
444- (3) Section 2310.106(e);
445- (4) Section 2310.2001; and
446- (5) Section 2310.203(b).
434+ (2) Section 2310.054(b);
435+ (3) Section 2310.101(b);
436+ (4) Section 2310.106(e);
437+ (5) Section 2310.2001; and
438+ (6) Section 2310.203(b).
447439 SECTION 25. (a) Not later than February 1, 2022, the
448440 presiding officer of the Texas Commission of Licensing and
449441 Regulation shall appoint members to the Motor Fuel Metering and
450442 Quality Advisory Board in accordance with Section 2310.032,
451443 Occupations Code, as added by this Act.
452444 (b) Notwithstanding Section 2310.033, Occupations Code, as
453445 added by this Act, in making the initial appointments to the Motor
454446 Fuel Metering and Quality Advisory Board, the presiding officer of
455447 the Texas Commission of Licensing and Regulation shall designate
456448 three members of the advisory board to serve terms expiring
457449 February 1, 2023, four members to serve terms expiring February 1,
458450 2025, and four members to serve terms expiring February 1, 2027.
459451 SECTION 26. (a) The changes in law made by this Act to
460452 Chapter 2310, Occupations Code, do not affect the validity of a
461453 proceeding pending before a court or other governmental entity on
462454 the effective date of this Act.
463455 (b) An offense or other violation committed before the
464456 effective date of this Act is governed by the law in effect on the
465457 date the offense or violation was committed, and the former law is
466458 continued in effect for that purpose. For purposes of this section,
467459 an offense or violation was committed before the effective date of
468460 this Act if any element of the offense or violation was committed
469461 before that date.
470462 SECTION 27. This Act takes effect September 1, 2021.
471- * * * * *