By: Hinojosa of Hidalgo, Hinojosa of Nueces S.B. No. 2949
(In the Senate - Filed March 14, 2025; March 27, 2025, read
first time and referred to Committee on Border Security;
April 14, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 4, Nays 1; April 14, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 2949 By: Hinojosa of Hidalgo
A BILL TO BE ENTITLED
AN ACT
relating to certain regulations involving motor fuels or other
hazardous materials, including the transportation of motor fuels
and other hazardous materials and restrictions on certain motor
fuel depots; creating criminal offenses; authorizing a civil
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. MOTOR FUEL TRANSPORTATION
SECTION 1.01. Section 162.001(23), Tax Code, is amended to
read as follows:
(23) "Export" means to transfer [obtain] motor fuel in
this state for sale or use in another state, territory, or foreign
country, whether by delivery from this state to another state
within the United States or by direct delivery to a foreign country,
without altering the content of the load by volume or composition.
SECTION 1.02. 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 1.03. Section 162.006, Tax Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) The comptroller may suspend a motor fuel
transporter's license without notice or a hearing if the license
holder fails to ensure that all employees or independent
contractors who transport motor fuel under the transporter's
license hold the specific license or endorsements required to
transport hazardous materials required by the state, territory, or
country in which the employee or independent contractor resides.
SECTION 1.04. 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) exported by either a licensed supplier or a
licensed exporter from this state to any other state within the
United States, 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 1.05. Section 162.108(e), Tax Code, is amended to
read as follows:
(e) An applicant for a license as a motor fuel transporter
must list on the application each state from which and to which the
applicant intends to transport motor fuel and, if required by a
listed state, must be licensed or registered for gasoline tax
purposes in that state. If a listed state requires the applicant to
be licensed or registered, the applicant must provide the
applicant's license or registration number from that state. The
applicant must attest that any employee or independent contractor
who transports motor fuel under the applicant's license will hold
the specific license or endorsements required to transport
hazardous materials required by the state, territory, or country in
which the employee or independent contractor resides.
SECTION 1.06. 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 1.07. Section 162.1155, Tax Code, is amended by
adding Subsections (e) and (f) to read as follows:
(e) A person required to report a transaction under
Subsection (a) is not required to directly transport the exported
gasoline if:
(1) the gasoline is ultimately exported to another
state or territory of the United States or by direct delivery to a
foreign country without altering the content of the load by volume
or composition;
(2) the transaction is conducted between persons
licensed as exporters under this chapter and is reported to the
comptroller with documentation identifying:
(A) the location and nature of any intermediate
transfer or transloading activity; and
(B) the identity of the transporter, receiver,
and final destination within the United States, if applicable; and
(3) the transaction does not involve any of the
following prohibited conduct:
(A) the use of an unregistered or unpermitted
motor fuel depot, including any facility used for the transloading
of motor fuel into overweight vehicles for export to a foreign
country;
(B) the transfer of gasoline using a vehicle that
exceeds legal weight limits without a valid corridor or overweight
permit;
(C) the transportation of hazardous materials by
a person who does not have the required licenses or endorsements;
and
(D) the use of false, misleading, or incomplete
documentation regarding the gasoline's destination, transporter,
or ownership.
(f) Nothing in Subsection (e) shall be construed to
authorize the in-state diversion, storage, or resale of gasoline
under a claimed export exemption unless:
(1) the gasoline is ultimately exported to another
state or territory of the United States or delivered directly to a
foreign country without altering the content of the load by volume
or composition; and
(2) all transactions involving the gasoline are
reported in compliance with this chapter.
SECTION 1.08. 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 exported by either a licensed supplier
or a licensed exporter from this state to any other state within the
United States, 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 1.09. Section 162.209(e), Tax Code, is amended to
read as follows:
(e) An applicant for a license as a motor fuel transporter
must list on the application each state from which and to which the
applicant intends to transport motor fuel and, if required by a
listed state, must be licensed or registered for diesel fuel tax
purposes in that state. If a listed state requires the applicant to
be licensed or registered, the applicant must provide the
applicant's license or registration number from that state. The
applicant must attest that any employee or independent contractor
who transports motor fuel under the applicant's license will hold
the specific license or endorsements required to transport
hazardous materials required by the state, territory, or country in
which the employee or independent contractor resides.
SECTION 1.10. 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 1.11. Section 162.2165, Tax Code, is amended by
adding Subsections (e) and (f) to read as follows:
(e) A person required to report a transaction under
Subsection (a) is not required to directly transport the exported
diesel fuel if:
(1) the diesel fuel is ultimately exported to another
state or territory of the United States or by direct delivery to a
foreign country without altering the content of the load by volume
or composition;
(2) the transaction is conducted between persons
licensed as exporters under this chapter and is reported to the
comptroller with documentation identifying:
(A) the location and nature of any intermediate
transfer or transloading activity; and
(B) the identity of the transporter, receiver,
and final destination within the United States, if applicable; and
(3) the transaction does not involve any of the
following prohibited conduct:
(A) the use of an unregistered or unpermitted
motor fuel depot, including any facility used for the transloading
of motor fuel into overweight vehicles for export to a foreign
country;
(B) the transfer of diesel fuel using a vehicle
that exceeds legal weight limits without a valid corridor or
overweight permit;
(C) the transportation of hazardous materials by
a person who lacks required licenses or endorsements; and
(D) the use of false, misleading, or incomplete
documentation regarding the diesel fuel's destination,
transporter, or ownership.
(f) Nothing in Subsection (e) shall be construed to
authorize the in-state diversion, storage, or resale of diesel fuel
under a claimed export exemption unless:
(1) the diesel fuel is ultimately exported to another
state or territory of the United States or delivered directly to a
foreign country without altering the content of the load by volume
or composition; and
(2) all transactions involving the diesel fuel are
reported in compliance with this chapter.
SECTION 1.12. Section 162.402, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) A motor fuel transporter who fails to ensure that an
employee or independent contractor who transports motor fuel under
the transporter's license holds the specific license or
endorsements required to transport hazardous materials required by
the state, territory, or country in which the employee or
independent contractor resides is liable to this state for a civil
penalty in the amount of $25,000 for each occurrence.
SECTION 1.13. 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 or causes to be made and
delivered to the comptroller a report or application required under
this chapter to be made and delivered to the comptroller, if the
report or application 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 1.14. The changes in law made by this article 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 1.15. Sections 162.108, 162.110, 162.209, and
162.211, Tax Code, as amended by this article, 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.
ARTICLE 2. MOTOR FUEL DEPOTS
SECTION 2.01. The legislature finds that:
(1) the concentration of unregulated and lightly
regulated motor fuel depots near international ports of entry and
border crossings poses a growing threat to public safety, tax
enforcement, environmental protection, and the uninterrupted flow
of lawful trade;
(2) the Senate Committee on Border Security Interim
Report to the 89th Legislature documents patterns of misuse at
motor fuel depots located near the Texas-Mexico border, including
conduct that may:
(A) exploit exemptions for tax-free motor fuel
through fraudulent flash title sales;
(B) facilitate the cross-border movement of
untaxed or unaccounted-for motor fuel;
(C) bypass inspection and enforcement mechanisms
through the use of noncredentialed drivers and unlicensed
transporters; and
(D) stage motor fuel transfers involving
overweight vehicles operating outside regulated corridors;
(3) federal enforcement reports and investigative
findings indicate that certain transnational criminal networks
have incorporated motor fuel theft, laundering, and covert
distribution operations into broader illicit enterprises, using
motor fuel depots and logistics corridors to evade detection;
(4) the findings described by Subdivision (3) of this
section have been recognized by federal sanctions authorities due
to the threat such operations pose to economic stability and
security on both sides of the border;
(5) the Senate Committee on Border Security Interim
Report to the 89th Legislature further found that the proliferation
of motor fuel depots and motor fuel transloading sites near the
international border:
(A) enables falsified documentation of origin,
destination, or custody of motor fuel shipments;
(B) undermines the ability of state agencies to
verify compliance with export reporting and tax collection
requirements; and
(C) contributes to the development of
noncompliant or covert transloading operations in proximity to
critical infrastructure, posing risks to the health and safety of
surrounding communities;
(6) these motor fuel depots also pose environmental
and public health risks, including:
(A) the possibility of accidental spills or
explosions from hazardous materials transfers near populated
areas;
(B) the use of mobile or non-permitted storage
units without secondary containment systems; and
(C) the potential for contamination of surface
water or groundwater through unregulated motor fuel handling
practices;
(7) the risk that a hazardous incident involving motor
fuel storage or transloading near an international bridge or port
of entry could result in significant infrastructure damage is of
particular concern to national security;
(8) an event described by Subdivision (7) of this
section, whether accidental or intentional, could disrupt
cross-border freight and passenger traffic for an extended period,
with cascading effects on national and international trade routes,
and given the volume of daily commercial crossings, even a
temporary closure could result in substantial economic losses
affecting supply chains and markets well beyond the border region;
(9) these activities are concentrated near the
international border and operate in legal gray zones where federal,
state, and local authorities have overlapping or incomplete
jurisdiction;
(10) without clear and targeted legislation, motor
fuel depots operating in these corridors within border counties may
continue to pose systemic risks to national security;
(11) prohibiting the operation of motor fuel depots
within counties along the Texas-Mexico border is necessary to:
(A) prevent tax evasion and fraudulent export
practices;
(B) disrupt motor fuel-related trafficking to
prevent the use of stolen motor fuel as a revenue stream to finance
broader criminal enterprises and corruption;
(C) protect public health, safety, and
environmental quality;
(D) preserve the integrity and reliability of
commercial ports and critical freight corridors from transnational
criminal threats; and
(E) support lawful trade, infrastructure
investment, and economic security across Texas and beyond; and
(12) this article represents a valid and necessary
exercise of the state's police power to safeguard public safety,
commerce, transportation systems, and environmental health in
areas that are uniquely vulnerable to cross-border motor
fuel-related risks.
SECTION 2.02. Subtitle B, Title 4, Government Code, is
amended by adding Chapter 426 to read as follows:
CHAPTER 426. RESTRICTIONS RELATING TO MOTOR FUEL DEPOTS IN BORDER
COUNTIES
Sec. 426.001. DEFINITIONS. In this chapter:
(1) "Motor fuel" has the meaning assigned by Section
162.001, Tax Code.
(2) "Motor fuel depot" means any stationary or mobile
facility used for the temporary or permanent storage, staging,
transfer, transloading, or handling of motor fuel before
transportation or export, whether the motor fuel is stored in a
tank, container, or vehicle. The term does not include motor fuel
that is:
(A) stored exclusively for residential,
agricultural, or emergency purposes; or
(B) held in mobile tanks solely for direct
on-road delivery not involving interim storage or transfer.
(3) "Transloading" means the transfer of motor fuel
from one tank, container, or vehicle to another for purposes of
storage, redistribution, or export, including transfers between
transport vehicles at a motor fuel depot.
Sec. 426.002. MOTOR FUEL DEPOTS IN BORDER COUNTIES
PROHIBITED. (a) A person may not establish, operate, or assist in
the operation of a motor fuel depot located in a county that borders
the United Mexican States, regardless of whether the motor fuel
depot:
(1) is located on public or private property; or
(2) is intended for permanent or temporary operation.
(b) For purposes of Subsection (a), "assists in the
operation of a motor fuel depot" includes knowingly allowing a
motor fuel depot to operate on property owned or controlled by the
person.
Sec. 426.003. CERTAIN CONDUCT RELATED TO MOTOR FUEL
TRANSPORTATION PROHIBITED. A person may not knowingly:
(1) deliver motor fuel to a motor fuel depot located in
a county that borders the United Mexican States;
(2) transport motor fuel to or from a motor fuel depot
described by Subdivision (1) using an overweight vehicle that:
(A) exceeds the weight limitations provided by
law; and
(B) is not operating under a permit issued under
Subtitle E, Title 7, Transportation Code; or
(3) falsify a transport record, shipping document, or
bill of lading to disguise the origin or destination of motor fuel.
Sec. 426.004. CRIMINAL PENALTIES. (a) A person commits an
offense if the person violates Section 426.002 or 426.003.
(b) An offense under this section involving a violation of
Section 426.002 is a Class A misdemeanor, except that the offense
is:
(1) a state jail felony if the actor has been
previously convicted one time of an offense punishable under this
subsection; or
(2) a felony of the third degree if:
(A) the actor has been previously convicted two
or more times of an offense punishable under this subsection;
(B) the motor fuel depot is located within five
miles of an international bridge, port of entry, or border crossing
between this state and the United Mexican States; or
(C) it is shown on the trial of the offense that
the motor fuel depot is linked to environmental contamination or
organized criminal activity.
(c) An offense under this section involving a violation of
Section 426.003 is a felony of the second degree.
Sec. 426.005. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The
attorney general may institute an action for injunctive relief to
restrain a violation of this chapter.
(b) In addition to the injunctive relief provided by
Subsection (a), the attorney general may institute an action for a
civil penalty against a person who owns or controls property on
which a motor fuel depot is located if the person knowingly
established, operated, or assisted in the operation of the motor
fuel depot in violation of Section 426.002. A civil penalty
assessed under this subsection may not exceed $25,000 for each day
the motor fuel depot is operated in violation of Section 426.002.
Sec. 426.006. DISCIPLINARY ACTION BY REGULATORY AGENCY.
The appropriate regulatory agency may take disciplinary action
against a person who violates this chapter, including by suspending
or revoking a license or permit issued to the person.
SECTION 2.03. Article 59.01(2), Code of Criminal Procedure,
is amended to read as follows:
(2) "Contraband" means property of any nature,
including real, personal, tangible, or intangible, that is:
(A) used in the commission of:
(i) any first or second degree felony under
the Penal Code;
(ii) any felony under Section 15.031(b),
21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal
Code;
(iii) any felony under Chapter 43, Penal
Code, except as provided by Paragraph (B);
(iv) any felony under The Securities Act
(Title 12, Government Code); or
(v) any offense under Chapter 49, Penal
Code, that is punishable as a felony of the third degree or state
jail felony, if the defendant has been previously convicted three
times of an offense under that chapter;
(B) used or intended to be used in the commission
of:
(i) any felony under Chapter 481, Health
and Safety Code (Texas Controlled Substances Act);
(ii) any felony under Chapter 483, Health
and Safety Code;
(iii) a felony under Chapter 152, Finance
Code;
(iv) any felony under Chapter 20A or 34,
Penal Code;
(v) a Class A misdemeanor under Subchapter
B, Chapter 365, Health and Safety Code, if the defendant has been
previously convicted twice of an offense under that subchapter;
(vi) any felony under Chapter 32, Human
Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
involves a health care program, as defined by Section 35A.01, Penal
Code;
(vii) a Class B misdemeanor under Chapter
522, Business & Commerce Code;
(viii) a Class A misdemeanor under Section
306.051, Business & Commerce Code;
(ix) any offense under Section 42.10, Penal
Code;
(x) any offense under Section 46.06(a)(1)
or 46.14, Penal Code;
(xi) any offense under Chapter 71, Penal
Code;
(xii) any offense under Section 20.05,
20.06, 20.07, 43.04, or 43.05, Penal Code;
(xiii) an offense under Section 326.002,
Business & Commerce Code;
(xiv) any offense under Section 545.420,
Transportation Code; [or]
(xv) any offense punishable under Section
42.03(d) or (e), Penal Code; or
(xvi) any offense under Section 426.002,
Government Code;
(C) the proceeds gained from the commission of a
felony listed in Paragraph (A) or (B) of this subdivision, a
misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),
(xiv), or (xv) of this subdivision, or a crime of violence;
(D) acquired with proceeds gained from the
commission of a felony listed in Paragraph (A) or (B) of this
subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),
(xi), (xii), (xiv), or (xv) of this subdivision, or a crime of
violence;
(E) used to facilitate or intended to be used to
facilitate the commission of a felony under Section 15.031 or
Chapter 43, Penal Code; or
(F) used to facilitate or intended to be used to
facilitate the commission of an offense under Section 20.05, 20.06,
or 20.07 or Chapter 20A, Penal Code.
ARTICLE 3. MISCELLANEOUS PROVISIONS
SECTION 3.01. 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.
SECTION 3.02. Subchapter G, Chapter 621, Transportation
Code, is amended by adding Section 621.512 to read as follows:
Sec. 621.512. PROHIBITION ON OPERATING CERTAIN OVERWEIGHT
VEHICLES 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 with three axles
that is 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.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. This Act takes effect September 1, 2025.
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