89R10930 JBD-F
By: Hinojosa of Hidalgo, Hinojosa of Nueces S.B. No. 2949
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of the transportation of motor fuels and
other hazardous materials; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 18B.202(a), Code of Criminal Procedure,
is amended to read as follows:
(a) A district judge may issue an order for the installation
and use of a mobile tracking device only on the application of:
(1) an authorized peace officer; or
(2) a peace officer commissioned by the comptroller
for purposes of Section 162.008, Tax Code.
SECTION 2. Section 162.001(23), Tax Code, is amended to
read as follows:
(23) "Export" means to obtain motor fuel in this state
for sale or use in another state, territory, or foreign country and
to directly transport that motor fuel to the other state,
territory, or country without altering the content of the load by
volume or composition.
SECTION 3. Sections 162.004(b) and (e), Tax Code, are
amended to read as follows:
(b) A shipping document shall contain the following
information and any other information required by the comptroller:
(1) the terminal control number of the terminal or
physical address of the terminal or bulk plant from which the motor
fuel was received;
(2) the name of the purchaser;
(3) the date the motor fuel was loaded;
(4) the net gallons loaded, or the gross gallons
loaded if the fuel was purchased from a bulk plant;
(5) the destination state of the motor fuel, as
represented by the purchaser of the motor fuel or the purchaser's
agent; [and]
(6) a description of the product being transported;
(7) the name and taxpayer number of the transportation
company; and
(8) the name of the operator of the barge, vessel,
railroad tank car, or transport vehicle into which the motor fuel
was loaded.
(e) A person to whom a shipping document was issued shall:
(1) carry the shipping document in the barge, vessel,
railroad tank car, or other transport vehicle for which the
document was issued when transporting the motor fuel described in
the document;
(2) show the shipping document on request to any law
enforcement officer, representative of the comptroller, or other
authorized individual, when transporting the motor fuel described;
(3) directly deliver the motor fuel to the destination
state printed on the shipping document unless the person:
(A) notifies the comptroller and the destination
state, if a diversion program is in place, before transporting the
motor fuel into a state other than the printed destination state,
that the person has received instructions after the shipping
document was issued to deliver the motor fuel to a different
destination state;
(B) receives from the comptroller and
destination state, if a diversion program is in place, a diversion
number authorizing the diversion; and
(C) writes on the shipping document the change in
destination state and the diversion number; and
(4) give a copy of the shipping document to the person
to whom the motor fuel is delivered.
SECTION 4. Section 162.104(a), Tax Code, is amended to read
as follows:
(a) The tax imposed by this subchapter does not apply to
gasoline:
(1) sold to the United States for its exclusive use,
provided that the exemption does not apply with respect to fuel sold
or delivered to a person operating under a contract with the United
States;
(2) sold to a public school district in this state for
the district's exclusive use;
(3) sold to a commercial transportation company or a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that provides public school transportation
services to a school district under Section 34.008, Education Code,
and that uses the gasoline only to provide those services;
(4) directly exported by either a licensed supplier or
a licensed exporter from this state to any other state without
altering the content of the load by volume or composition, provided
that the bill of lading indicates the destination state and the
supplier collects the destination state tax;
(5) moved by truck or railcar between licensed
suppliers or licensed permissive suppliers and in which the
gasoline removed from the first terminal comes to rest in the second
terminal, provided that the removal from the second terminal rack
is subject to the tax imposed by this subchapter;
(6) delivered or sold into a storage facility of a
licensed aviation fuel dealer from which gasoline will be delivered
solely into the fuel supply tanks of aircraft or aircraft servicing
equipment, or sold from one licensed aviation fuel dealer to
another licensed aviation fuel dealer who will deliver the aviation
fuel exclusively into the fuel supply tanks of aircraft or aircraft
servicing equipment;
(7) directly exported to a foreign country without
altering the content of the load by volume or composition if the
bill of lading or shipping documents indicate the foreign
destination and the fuel is actually exported to the foreign
country;
(8) sold to a volunteer fire department in this state
for the department's exclusive use;
(9) sold to a nonprofit entity that is organized for
the sole purpose of and engages exclusively in providing emergency
medical services and that uses the gasoline exclusively to provide
emergency medical services, including rescue and ambulance
services; or
(10) sold to a nonprofit food bank and delivered into:
(A) the fuel supply tank of a motor vehicle with a
gross vehicle weight rating of at least 25,000 pounds that is owned
by the nonprofit food bank and used to deliver food; or
(B) a storage facility from which gasoline will
be delivered solely into the fuel supply tanks of motor vehicles
described by Paragraph (A).
SECTION 5. Section 162.105, Tax Code, is amended to read as
follows:
Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. (a) A
person shall obtain the appropriate license or licenses issued by
the comptroller before conducting the activities of:
(1) a supplier, who may also act as a distributor,
importer, exporter, blender, motor fuel transporter, or aviation
fuel dealer without securing a separate license, but who is subject
to all other conditions, requirements, and liabilities imposed on
those license holders;
(2) a permissive supplier, who may also act as a
distributor, importer, exporter, blender, motor fuel transporter,
or aviation fuel dealer without securing a separate license, but
who is subject to all other conditions, requirements, and
liabilities imposed on those license holders;
(3) a distributor, who may also act as an importer,
exporter, blender, or motor fuel transporter without securing a
separate license, but who is subject to all other conditions,
requirements, and liabilities imposed on those license holders;
(4) an importer, who may also act as an exporter,
blender, or motor fuel transporter without securing a separate
license, but who is subject to all other conditions, requirements,
and liabilities imposed on those license holders;
(5) a terminal operator;
(6) an exporter;
(7) a blender;
(8) a motor fuel transporter;
(9) an aviation fuel dealer; or
(10) an interstate trucker.
(b) Each individual operating as a motor fuel transporter
must obtain the appropriate license as required by Subsection (a)
and may not operate under the license of another person.
SECTION 6. Sections 162.110(a) and (c), Tax Code, are
amended to read as follows:
(a) The license issued to a supplier, permissive supplier,
distributor, importer, exporter, terminal operator, or blender[,
or motor fuel transporter] is permanent and is valid during the
period the license holder has in force and effect the required bond
or security and furnishes timely reports and supplements as
required, or until the license is surrendered by the holder or
canceled by the comptroller. The comptroller shall cancel a
license under this subsection if a purchase, sale, or use of
gasoline has not been reported by the license holder during the
previous nine months.
(c) The license issued to an interstate trucker or motor
fuel transporter is valid from the date of its issuance through
December 31 of each calendar year or until the license is
surrendered by the holder or canceled by the comptroller. The
comptroller may renew the license for each ensuing calendar year if
the license holder furnishes timely reports as required.
SECTION 7. Section 162.204(a), Tax Code, is amended to read
as follows:
(a) The tax imposed by this subchapter does not apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district's exclusive use;
(3) diesel fuel sold to a commercial transportation
company or a metropolitan rapid transit authority operating under
Chapter 451, Transportation Code, that provides public school
transportation services to a school district under Section 34.008,
Education Code, and that uses the diesel fuel only to provide those
services;
(4) diesel fuel directly exported by either a licensed
supplier or a licensed exporter from this state to any other state
without altering the content of the load by volume or composition,
provided that the bill of lading indicates the destination state
and the supplier collects the destination state tax;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the tax imposed by this subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel directly exported to a foreign country
without altering the content of the load by volume or composition if
the bill of lading or shipping documents indicate the foreign
destination and the fuel is actually exported to the foreign
country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel bonded user or to a purchaser who provides a signed
statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, renewable
diesel, biodiesel, or mixtures thereof that are blended together
with taxable diesel fuel when the finished product sold or used is
clearly identified on the retail pump, storage tank, and sales
invoice as a combination of diesel fuel and water, fuel ethanol,
renewable diesel, biodiesel, or mixtures thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of railway engines, motorboats, or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use;
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule;
(14) diesel fuel sold to a volunteer fire department
in this state for the department's exclusive use;
(15) diesel fuel sold to a nonprofit entity that is
organized for the sole purpose of and engages exclusively in
providing emergency medical services and that uses the diesel fuel
exclusively to provide emergency medical services, including
rescue and ambulance services; or
(16) diesel fuel sold to a nonprofit food bank and
delivered into:
(A) the fuel supply tank of a motor vehicle with a
gross vehicle weight rating of at least 25,000 pounds that is owned
by the nonprofit food bank and used to deliver food; or
(B) a storage facility from which diesel fuel
will be delivered solely into the fuel supply tanks of motor
vehicles described by Paragraph (A).
SECTION 8. Section 162.205, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) Each individual operating as a motor fuel transporter
must obtain the appropriate license as required by Subsection (a)
and may not operate under the license of another person.
SECTION 9. Sections 162.211(a) and (c), Tax Code, are
amended to read as follows:
(a) The license issued to a supplier, permissive supplier,
distributor, importer, terminal supplier, exporter, blender,
[motor fuel transporter,] or dyed diesel fuel bonded user is
permanent and is valid during the period the license holder has in
force and effect the required bond or security and furnishes timely
reports and supplements as required, or until the license is
surrendered by the holder or canceled by the comptroller. The
comptroller shall cancel a license under this subsection if a
purchase, sale, or use of diesel fuel has not been reported by the
license holder during the previous nine months.
(c) The license issued to an interstate trucker or motor
fuel transporter is valid from the date of its issuance through
December 31 of each calendar year or until the license is
surrendered by the holder or canceled by the comptroller. The
comptroller may renew the license for each ensuing calendar year if
the license holder furnishes timely reports as required.
SECTION 10. 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 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 without [for which] a cargo
manifest or shipping document or presents to a peace officer a
shipping document the contents of which are inconsistent with the
volume and content of the motor fuel being transported [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 11. Subchapter G, Chapter 621, Transportation Code,
is amended by adding Section 621.512 to read as follows:
Sec. 621.512. PROHIBITION ON OPERATING OVERWEIGHT VEHICLE
TRANSPORTING HAZARDOUS MATERIALS ON ROUTE OTHER THAN DESIGNATED
PERMIT ROUTE. (a) A person commits an offense if the person
operates or moves an overweight vehicle transporting hazardous
materials under a permit issued under this subtitle on a public
highway that is not included in the route designated under the
permit.
(b) An offense under this section is a felony of the second
degree.
(c) It is an affirmative defense to prosecution under this
section that, at the time of the offense, the vehicle was being
operated or moved:
(1) under the immediate direction of a law enforcement
agency; or
(2) in compliance with a permit authorizing the
movement of the vehicle issued by the department or a political
subdivision of this state.
SECTION 12. The changes in law made by this Act apply only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 13. Sections 162.110 and 162.211, Tax Code, as
amended by this Act, apply to a license issued to a motor fuel
transporter, regardless of whether the license was issued before,
on, or after the effective date of this Act.
SECTION 14. This Act takes effect September 1, 2025.