Texas 2025 - 89th Regular

Texas Senate Bill SB2949 Compare Versions

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	1	+	89R10930 JBD-F
1	2		By: Hinojosa of Hidalgo, Hinojosa of Nueces S.B. No. 2949
2		-	(In the Senate - Filed March 14, 2025; March 27, 2025, read
3		-	first time and referred to Committee on Border Security;
4		-	April 14, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 4, Nays 1; April 14, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 2949 By: Hinojosa of Hidalgo
9	3
10	4
11	5
12	6
13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15		-	relating to certain regulations involving motor fuels or other
16		-	hazardous materials, including the transportation of motor fuels
17		-	and other hazardous materials and restrictions on certain motor
18		-	fuel depots; creating criminal offenses; authorizing a civil
19		-	penalty.
	9	+	relating to the regulation of the transportation of motor fuels and
	10	+	other hazardous materials; creating a criminal offense.
20	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
21		-	ARTICLE 1. MOTOR FUEL TRANSPORTATION
22		-	SECTION 1.01. Section 162.001(23), Tax Code, is amended to
	12	+	SECTION 1. Article 18B.202(a), Code of Criminal Procedure,
	13	+	is amended to read as follows:
	14	+	(a) A district judge may issue an order for the installation
	15	+	and use of a mobile tracking device only on the application of:
	16	+	(1) an authorized peace officer; or
	17	+	(2) a peace officer commissioned by the comptroller
	18	+	for purposes of Section 162.008, Tax Code.
	19	+	SECTION 2. Section 162.001(23), Tax Code, is amended to
23	20		read as follows:
24		-	(23) "Export" means to ~~transfer [~~obtain] motor fuel in
25		-	~~this state~~ for sale or use in another state, territory, or foreign
26		-	~~country, whether by delivery from this state~~ to ~~another~~ state
27		-	~~within~~ the ~~United States or~~ by ~~direct delivery to a foreign country,~~
28		-	~~without altering the content of the load by~~ volume or composition.
29		-	SECTION ~~1.02~~. Sections 162.004(b) and (e), Tax Code, are
	21	+	(23) "Export" means to obtain motor fuel in this state
	22	+	for sale or use in another state, territory, or foreign country and
	23	+	to directly transport that motor fuel to the other state,
	24	+	territory, or country without altering the content of the load by
	25	+	volume or composition.
	26	+	SECTION 3. Sections 162.004(b) and (e), Tax Code, are
30	27		amended to read as follows:
31	28		(b) A shipping document shall contain the following
32	29		information and any other information required by the comptroller:
33	30		(1) the terminal control number of the terminal or
34	31		physical address of the terminal or bulk plant from which the motor
35	32		fuel was received;
36	33		(2) the name of the purchaser;
37	34		(3) the date the motor fuel was loaded;
38	35		(4) the net gallons loaded, or the gross gallons
39	36		loaded if the fuel was purchased from a bulk plant;
40	37		(5) the destination state of the motor fuel, as
41	38		represented by the purchaser of the motor fuel or the purchaser's
42	39		agent; [and]
43	40		(6) a description of the product being transported;
44	41		(7) the name and taxpayer number of the transportation
45	42		company; and
46	43		(8) the name of the operator of the barge, vessel,
47	44		railroad tank car, or transport vehicle into which the motor fuel
48	45		was loaded.
49	46		(e) A person to whom a shipping document was issued shall:
50	47		(1) carry the shipping document in the barge, vessel,
51	48		railroad tank car, or other transport vehicle for which the
52	49		document was issued when transporting the motor fuel described in
53	50		the document;
54	51		(2) show the shipping document on request to any law
55	52		enforcement officer, representative of the comptroller, or other
56	53		authorized individual, when transporting the motor fuel described;
57	54		(3) directly deliver the motor fuel to the destination
58	55		state printed on the shipping document unless the person:
59	56		(A) notifies the comptroller and the destination
60	57		state, if a diversion program is in place, before transporting the
61	58		motor fuel into a state other than the printed destination state,
62	59		that the person has received instructions after the shipping
63	60		document was issued to deliver the motor fuel to a different
64	61		destination state;
65	62		(B) receives from the comptroller and
66	63		destination state, if a diversion program is in place, a diversion
67	64		number authorizing the diversion; and
68	65		(C) writes on the shipping document the change in
69	66		destination state and the diversion number; and
70	67		(4) give a copy of the shipping document to the person
71	68		to whom the motor fuel is delivered.
72		-	SECTION 1.03. Section 162.006, Tax Code, is amended by
73		-	adding Subsection (a-1) to read as follows:
74		-	(a-1) The comptroller may suspend a motor fuel
75		-	transporter's license without notice or a hearing if the license
76		-	holder fails to ensure that all employees or independent
77		-	contractors who transport motor fuel under the transporter's
78		-	license hold the specific license or endorsements required to
79		-	transport hazardous materials required by the state, territory, or
80		-	country in which the employee or independent contractor resides.
81		-	SECTION 1.04. Section 162.104(a), Tax Code, is amended to
82		-	read as follows:
	69	+	SECTION 4. Section 162.104(a), Tax Code, is amended to read
	70	+	as follows:
83	71		(a) The tax imposed by this subchapter does not apply to
84	72		gasoline:
85	73		(1) sold to the United States for its exclusive use,
86	74		provided that the exemption does not apply with respect to fuel sold
87	75		or delivered to a person operating under a contract with the United
88	76		States;
89	77		(2) sold to a public school district in this state for
90	78		the district's exclusive use;
91	79		(3) sold to a commercial transportation company or a
92	80		metropolitan rapid transit authority operating under Chapter 451,
93	81		Transportation Code, that provides public school transportation
94	82		services to a school district under Section 34.008, Education Code,
95	83		and that uses the gasoline only to provide those services;
96		-	(4) exported by either a licensed supplier or a
97		-	licensed exporter from this state to any other state ~~within the~~
98		-	~~United States~~, provided ~~that the bill of lading indicates the~~
99		-	destination state and the ~~supplier collects the destination state~~
100		-	tax;
	84	+	(4) directly exported by either a licensed supplier or
	85	+	a licensed exporter from this state to any other state without
	86	+	altering the content of the load by volume or composition, provided
	87	+	that the bill of lading indicates the destination state and the
	88	+	supplier collects the destination state tax;
101	89		(5) moved by truck or railcar between licensed
102	90		suppliers or licensed permissive suppliers and in which the
103	91		gasoline removed from the first terminal comes to rest in the second
104	92		terminal, provided that the removal from the second terminal rack
105	93		is subject to the tax imposed by this subchapter;
106	94		(6) delivered or sold into a storage facility of a
107	95		licensed aviation fuel dealer from which gasoline will be delivered
108	96		solely into the fuel supply tanks of aircraft or aircraft servicing
109	97		equipment, or sold from one licensed aviation fuel dealer to
110	98		another licensed aviation fuel dealer who will deliver the aviation
111	99		fuel exclusively into the fuel supply tanks of aircraft or aircraft
112	100		servicing equipment;
113	101		(7) directly exported to a foreign country without
114	102		altering the content of the load by volume or composition if the
115	103		bill of lading or shipping documents indicate the foreign
116	104		destination and the fuel is actually exported to the foreign
117	105		country;
118	106		(8) sold to a volunteer fire department in this state
119	107		for the department's exclusive use;
120	108		(9) sold to a nonprofit entity that is organized for
121	109		the sole purpose of and engages exclusively in providing emergency
122	110		medical services and that uses the gasoline exclusively to provide
123	111		emergency medical services, including rescue and ambulance
124	112		services; or
125	113		(10) sold to a nonprofit food bank and delivered into:
126	114		(A) the fuel supply tank of a motor vehicle with a
127	115		gross vehicle weight rating of at least 25,000 pounds that is owned
128	116		by the nonprofit food bank and used to deliver food; or
129	117		(B) a storage facility from which gasoline will
130	118		be delivered solely into the fuel supply tanks of motor vehicles
131	119		described by Paragraph (A).
132		-	SECTION 1.05. Section 162.108(e), Tax Code, is amended to
133		-	read as follows:
134		-	(e) An applicant for a license as a motor fuel transporter
135		-	must list on the application each state from which and to which the
136		-	applicant intends to transport motor fuel and, if required by a
137		-	listed state, must be licensed or registered for gasoline tax
138		-	purposes in that state. If a listed state requires the applicant to
139		-	be licensed or registered, the applicant must provide the
140		-	applicant's license or registration number from that state. The
141		-	applicant must attest that any employee or independent contractor
142		-	who transports motor fuel under the applicant's license will hold
143		-	the specific license or endorsements required to transport
144		-	hazardous materials required by the state, territory, or country in
145		-	which the employee or independent contractor resides.
146		-	SECTION 1.06. Sections 162.110(a) and (c), Tax Code, are
	120	+	SECTION 5. Section 162.105, Tax Code, is amended to read as
	121	+	follows:
	122	+	Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. (a) A
	123	+	person shall obtain the appropriate license or licenses issued by
	124	+	the comptroller before conducting the activities of:
	125	+	(1) a supplier, who may also act as a distributor,
	126	+	importer, exporter, blender, motor fuel transporter, or aviation
	127	+	fuel dealer without securing a separate license, but who is subject
	128	+	to all other conditions, requirements, and liabilities imposed on
	129	+	those license holders;
	130	+	(2) a permissive supplier, who may also act as a
	131	+	distributor, importer, exporter, blender, motor fuel transporter,
	132	+	or aviation fuel dealer without securing a separate license, but
	133	+	who is subject to all other conditions, requirements, and
	134	+	liabilities imposed on those license holders;
	135	+	(3) a distributor, who may also act as an importer,
	136	+	exporter, blender, or motor fuel transporter without securing a
	137	+	separate license, but who is subject to all other conditions,
	138	+	requirements, and liabilities imposed on those license holders;
	139	+	(4) an importer, who may also act as an exporter,
	140	+	blender, or motor fuel transporter without securing a separate
	141	+	license, but who is subject to all other conditions, requirements,
	142	+	and liabilities imposed on those license holders;
	143	+	(5) a terminal operator;
	144	+	(6) an exporter;
	145	+	(7) a blender;
	146	+	(8) a motor fuel transporter;
	147	+	(9) an aviation fuel dealer; or
	148	+	(10) an interstate trucker.
	149	+	(b) Each individual operating as a motor fuel transporter
	150	+	must obtain the appropriate license as required by Subsection (a)
	151	+	and may not operate under the license of another person.
	152	+	SECTION 6. Sections 162.110(a) and (c), Tax Code, are
147	153		amended to read as follows:
148	154		(a) The license issued to a supplier, permissive supplier,
149	155		distributor, importer, exporter, terminal operator, or blender[,
150	156		or motor fuel transporter] is permanent and is valid during the
151	157		period the license holder has in force and effect the required bond
152	158		or security and furnishes timely reports and supplements as
153	159		required, or until the license is surrendered by the holder or
154	160		canceled by the comptroller. The comptroller shall cancel a
155	161		license under this subsection if a purchase, sale, or use of
156	162		gasoline has not been reported by the license holder during the
157	163		previous nine months.
158	164		(c) The license issued to an interstate trucker or motor
159	165		fuel transporter is valid from the date of its issuance through
160	166		December 31 of each calendar year or until the license is
161	167		surrendered by the holder or canceled by the comptroller. The
162	168		comptroller may renew the license for each ensuing calendar year if
163	169		the license holder furnishes timely reports as required.
164		-	SECTION 1.07. Section 162.1155, Tax Code, is amended by
165		-	adding Subsections (e) and (f) to read as follows:
166		-	(e) A person required to report a transaction under
167		-	Subsection (a) is not required to directly transport the exported
168		-	gasoline if:
169		-	(1) the gasoline is ultimately exported to another
170		-	state or territory of the United States or by direct delivery to a
171		-	foreign country without altering the content of the load by volume
172		-	or composition;
173		-	(2) the transaction is conducted between persons
174		-	licensed as exporters under this chapter and is reported to the
175		-	comptroller with documentation identifying:
176		-	(A) the location and nature of any intermediate
177		-	transfer or transloading activity; and
178		-	(B) the identity of the transporter, receiver,
179		-	and final destination within the United States, if applicable; and
180		-	(3) the transaction does not involve any of the
181		-	following prohibited conduct:
182		-	(A) the use of an unregistered or unpermitted
183		-	motor fuel depot, including any facility used for the transloading
184		-	of motor fuel into overweight vehicles for export to a foreign
185		-	country;
186		-	(B) the transfer of gasoline using a vehicle that
187		-	exceeds legal weight limits without a valid corridor or overweight
188		-	permit;
189		-	(C) the transportation of hazardous materials by
190		-	a person who does not have the required licenses or endorsements;
191		-	and
192		-	(D) the use of false, misleading, or incomplete
193		-	documentation regarding the gasoline's destination, transporter,
194		-	or ownership.
195		-	(f) Nothing in Subsection (e) shall be construed to
196		-	authorize the in-state diversion, storage, or resale of gasoline
197		-	under a claimed export exemption unless:
198		-	(1) the gasoline is ultimately exported to another
199		-	state or territory of the United States or delivered directly to a
200		-	foreign country without altering the content of the load by volume
201		-	or composition; and
202		-	(2) all transactions involving the gasoline are
203		-	reported in compliance with this chapter.
204		-	SECTION 1.08. Section 162.204(a), Tax Code, is amended to
205		-	read as follows:
	170	+	SECTION 7. Section 162.204(a), Tax Code, is amended to read
	171	+	as follows:
206	172		(a) The tax imposed by this subchapter does not apply to:
207	173		(1) diesel fuel sold to the United States for its
208	174		exclusive use, provided that the exemption does not apply to diesel
209	175		fuel sold or delivered to a person operating under a contract with
210	176		the United States;
211	177		(2) diesel fuel sold to a public school district in
212	178		this state for the district's exclusive use;
213	179		(3) diesel fuel sold to a commercial transportation
214	180		company or a metropolitan rapid transit authority operating under
215	181		Chapter 451, Transportation Code, that provides public school
216	182		transportation services to a school district under Section 34.008,
217	183		Education Code, and that uses the diesel fuel only to provide those
218	184		services;
219		-	(4) diesel fuel exported by either a licensed ~~supplier~~
220		-	or a licensed exporter from this state to any other state ~~within the~~
221		-	~~United States, provided that~~ the ~~bill~~ of ~~lading indicates the~~
222		-	~~destination state and~~ the ~~supplier collects~~ the destination state
223		-	tax;
	185	+	(4) diesel fuel directly exported by either a licensed
	186	+	supplier or a licensed exporter from this state to any other state
	187	+	without altering the content of the load by volume or composition,
	188	+	provided that the bill of lading indicates the destination state
	189	+	and the supplier collects the destination state tax;
224	190		(5) diesel fuel moved by truck or railcar between
225	191		licensed suppliers or licensed permissive suppliers and in which
226	192		the diesel fuel removed from the first terminal comes to rest in the
227	193		second terminal, provided that the removal from the second terminal
228	194		rack is subject to the tax imposed by this subchapter;
229	195		(6) diesel fuel delivered or sold into a storage
230	196		facility of a licensed aviation fuel dealer from which the diesel
231	197		fuel will be delivered solely into the fuel supply tanks of aircraft
232	198		or aircraft servicing equipment, or sold from one licensed aviation
233	199		fuel dealer to another licensed aviation fuel dealer who will
234	200		deliver the diesel fuel exclusively into the fuel supply tanks of
235	201		aircraft or aircraft servicing equipment;
236	202		(7) diesel fuel directly exported to a foreign country
237	203		without altering the content of the load by volume or composition if
238	204		the bill of lading or shipping documents indicate the foreign
239	205		destination and the fuel is actually exported to the foreign
240	206		country;
241	207		(8) dyed diesel fuel sold or delivered by a supplier to
242	208		another supplier and dyed diesel fuel sold or delivered by a
243	209		supplier or distributor into the bulk storage facility of a dyed
244	210		diesel fuel bonded user or to a purchaser who provides a signed
245	211		statement as provided by Section 162.206;
246	212		(9) the volume of water, fuel ethanol, renewable
247	213		diesel, biodiesel, or mixtures thereof that are blended together
248	214		with taxable diesel fuel when the finished product sold or used is
249	215		clearly identified on the retail pump, storage tank, and sales
250	216		invoice as a combination of diesel fuel and water, fuel ethanol,
251	217		renewable diesel, biodiesel, or mixtures thereof;
252	218		(10) dyed diesel fuel sold by a supplier or permissive
253	219		supplier to a distributor, or by a distributor to another
254	220		distributor;
255	221		(11) dyed diesel fuel delivered by a license holder
256	222		into the fuel supply tanks of railway engines, motorboats, or
257	223		refrigeration units or other stationary equipment powered by a
258	224		separate motor from a separate fuel supply tank;
259	225		(12) dyed kerosene when delivered by a supplier,
260	226		distributor, or importer into a storage facility at a retail
261	227		business from which all deliveries are exclusively for heating,
262	228		cooking, lighting, or similar nonhighway use;
263	229		(13) diesel fuel used by a person, other than a
264	230		political subdivision, who owns, controls, operates, or manages a
265	231		commercial motor vehicle as defined by Section 548.001,
266	232		Transportation Code, if the fuel:
267	233		(A) is delivered exclusively into the fuel supply
268	234		tank of the commercial motor vehicle; and
269	235		(B) is used exclusively to transport passengers
270	236		for compensation or hire between points in this state on a fixed
271	237		route or schedule;
272	238		(14) diesel fuel sold to a volunteer fire department
273	239		in this state for the department's exclusive use;
274	240		(15) diesel fuel sold to a nonprofit entity that is
275	241		organized for the sole purpose of and engages exclusively in
276	242		providing emergency medical services and that uses the diesel fuel
277	243		exclusively to provide emergency medical services, including
278	244		rescue and ambulance services; or
279	245		(16) diesel fuel sold to a nonprofit food bank and
280	246		delivered into:
281	247		(A) the fuel supply tank of a motor vehicle with a
282	248		gross vehicle weight rating of at least 25,000 pounds that is owned
283	249		by the nonprofit food bank and used to deliver food; or
284	250		(B) a storage facility from which diesel fuel
285	251		will be delivered solely into the fuel supply tanks of motor
286	252		vehicles described by Paragraph (A).
287		-	SECTION 1.09. Section 162.209(e), Tax Code, is amended to
288		-	read as follows:
289		-	(e) An applicant for a license as a motor fuel transporter
290		-	must list on the application each state from which and to which the
291		-	applicant intends to transport motor fuel and, if required by a
292		-	listed state, must be licensed or registered for diesel fuel tax
293		-	purposes in that state. If a listed state requires the applicant to
294		-	be licensed or registered, the applicant must provide the
295		-	applicant's license or registration number from that state. The
296		-	applicant must attest that any employee or independent contractor
297		-	who transports motor fuel under the applicant's license will hold
298		-	the specific license or endorsements required to transport
299		-	hazardous materials required by the state, territory, or country in
300		-	which the employee or independent contractor resides.
301		-	SECTION 1.10. Sections 162.211(a) and (c), Tax Code, are
	253	+	SECTION 8. Section 162.205, Tax Code, is amended by adding
	254	+	Subsection (c) to read as follows:
	255	+	(c) Each individual operating as a motor fuel transporter
	256	+	must obtain the appropriate license as required by Subsection (a)
	257	+	and may not operate under the license of another person.
	258	+	SECTION 9. Sections 162.211(a) and (c), Tax Code, are
302	259		amended to read as follows:
303	260		(a) The license issued to a supplier, permissive supplier,
304	261		distributor, importer, terminal supplier, exporter, blender,
305	262		[motor fuel transporter,] or dyed diesel fuel bonded user is
306	263		permanent and is valid during the period the license holder has in
307	264		force and effect the required bond or security and furnishes timely
308	265		reports and supplements as required, or until the license is
309	266		surrendered by the holder or canceled by the comptroller. The
310	267		comptroller shall cancel a license under this subsection if a
311	268		purchase, sale, or use of diesel fuel has not been reported by the
312	269		license holder during the previous nine months.
313	270		(c) The license issued to an interstate trucker or motor
314	271		fuel transporter is valid from the date of its issuance through
315	272		December 31 of each calendar year or until the license is
316	273		surrendered by the holder or canceled by the comptroller. The
317	274		comptroller may renew the license for each ensuing calendar year if
318	275		the license holder furnishes timely reports as required.
319		-	SECTION 1.11. Section 162.2165, Tax Code, is amended by
320		-	adding Subsections (e) and (f) to read as follows:
321		-	(e) A person required to report a transaction under
322		-	Subsection (a) is not required to directly transport the exported
323		-	diesel fuel if:
324		-	(1) the diesel fuel is ultimately exported to another
325		-	state or territory of the United States or by direct delivery to a
326		-	foreign country without altering the content of the load by volume
327		-	or composition;
328		-	(2) the transaction is conducted between persons
329		-	licensed as exporters under this chapter and is reported to the
330		-	comptroller with documentation identifying:
331		-	(A) the location and nature of any intermediate
332		-	transfer or transloading activity; and
333		-	(B) the identity of the transporter, receiver,
334		-	and final destination within the United States, if applicable; and
335		-	(3) the transaction does not involve any of the
336		-	following prohibited conduct:
337		-	(A) the use of an unregistered or unpermitted
338		-	motor fuel depot, including any facility used for the transloading
339		-	of motor fuel into overweight vehicles for export to a foreign
340		-	country;
341		-	(B) the transfer of diesel fuel using a vehicle
342		-	that exceeds legal weight limits without a valid corridor or
343		-	overweight permit;
344		-	(C) the transportation of hazardous materials by
345		-	a person who lacks required licenses or endorsements; and
346		-	(D) the use of false, misleading, or incomplete
347		-	documentation regarding the diesel fuel's destination,
348		-	transporter, or ownership.
349		-	(f) Nothing in Subsection (e) shall be construed to
350		-	authorize the in-state diversion, storage, or resale of diesel fuel
351		-	under a claimed export exemption unless:
352		-	(1) the diesel fuel is ultimately exported to another
353		-	state or territory of the United States or delivered directly to a
354		-	foreign country without altering the content of the load by volume
355		-	or composition; and
356		-	(2) all transactions involving the diesel fuel are
357		-	reported in compliance with this chapter.
358		-	SECTION 1.12. Section 162.402, Tax Code, is amended by
359		-	adding Subsection (f) to read as follows:
360		-	(f) A motor fuel transporter who fails to ensure that an
361		-	employee or independent contractor who transports motor fuel under
362		-	the transporter's license holds the specific license or
363		-	endorsements required to transport hazardous materials required by
364		-	the state, territory, or country in which the employee or
365		-	independent contractor resides is liable to this state for a civil
366		-	penalty in the amount of $25,000 for each occurrence.
367		-	SECTION 1.13. Section 162.403, Tax Code, is amended to read
368		-	as follows:
	276	+	SECTION 10. Section 162.403, Tax Code, is amended to read as
	277	+	follows:
369	278		Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
370	279		Section 162.404, a person commits an offense if the person:
371	280		(1) refuses to stop and permit the inspection and
372	281		examination of a motor vehicle transporting or using motor fuel on
373	282		the demand of a peace officer or the comptroller;
374	283		(2) is required to hold a valid trip permit or
375	284		interstate trucker's license, but operates a motor vehicle in this
376	285		state without a valid trip permit or interstate trucker's license;
377	286		(3) transports gasoline or diesel fuel in any cargo
378	287		tank that has a connection by pipe, tube, valve, or otherwise with
379	288		the fuel injector or carburetor or with the fuel supply tank feeding
380	289		the fuel injector or carburetor of the motor vehicle transporting
381	290		the product;
382	291		(4) sells or delivers gasoline or diesel fuel from a
383	292		fuel supply tank that is connected with the fuel injector or
384	293		carburetor of a motor vehicle;
385	294		(5) owns or operates a motor vehicle for which reports
386	295		or mileage records are required by this chapter without an
387	296		operating odometer or other device in good working condition to
388	297		record accurately the miles traveled;
389	298		(6) sells or delivers dyed diesel fuel for the
390	299		operation of a motor vehicle on a public highway;
391	300		(7) uses dyed diesel fuel for the operation of a motor
392	301		vehicle on a public highway except as allowed under Section
393	302		162.235;
394	303		(8) refuses to permit the comptroller or the attorney
395	304		general to inspect, examine, or audit a book or record required to
396	305		be kept by a license holder, other user, or any person required to
397	306		hold a license under this chapter;
398	307		(9) refuses to permit the comptroller or the attorney
399	308		general to inspect or examine any plant, equipment, materials, or
400	309		premises where motor fuel is produced, processed, blended, stored,
401	310		sold, delivered, or used;
402	311		(10) refuses to permit the comptroller, the attorney
403	312		general, an employee of either of those officials, a peace officer,
404	313		an employee of the Texas Commission on Environmental Quality, or an
405	314		employee of the Texas Department of Licensing and Regulation to
406	315		measure or gauge the contents of or take samples from a storage tank
407	316		or container on premises where motor fuel is produced, processed,
408	317		blended, stored, sold, delivered, or used;
409	318		(11) is a license holder, a person required to be
410	319		licensed, or another user and fails or refuses to make or deliver to
411	320		the comptroller a report required by this chapter to be made and
412	321		delivered to the comptroller;
413	322		(12) is an importer who does not obtain an import
414	323		verification number when required by this chapter;
415	324		(13) purchases motor fuel for export, on which the tax
416	325		imposed by this chapter has not been paid, and subsequently diverts
417	326		or causes the motor fuel to be diverted to a destination in this
418	327		state or any other state or country other than the originally
419	328		designated state or country without first obtaining a diversion
420	329		number;
421	330		(14) conceals motor fuel with the intent of engaging
422	331		in any conduct proscribed by this chapter or refuses to make sales
423	332		of motor fuel on the volume-corrected basis prescribed by this
424	333		chapter;
425	334		(15) refuses, while transporting motor fuel, to stop
426	335		the motor vehicle the person is operating when called on to do so by
427	336		a person authorized to stop the motor vehicle;
428	337		(16) refuses to surrender a motor vehicle and cargo
429	338		for impoundment after being ordered to do so by a person authorized
430	339		to impound the motor vehicle and cargo;
431	340		(17) mutilates, destroys, or secretes a book or record
432	341		required by this chapter to be kept by a license holder, other user,
433	342		or person required to hold a license under this chapter;
434	343		(18) is a license holder, other user, or other person
435	344		required to hold a license under this chapter, or the agent or
436	345		employee of one of those persons, and makes a false entry or fails
437	346		to make an entry in the books and records required under this
438	347		chapter to be made by the person or fails to retain a document as
439	348		required by this chapter;
440	349		(19) transports in any manner motor fuel under a false
441	350		cargo manifest or shipping document, or transports in any manner
442	351		motor fuel to a location without delivering at the same time a
443	352		shipping document relating to that shipment;
444	353		(20) engages in a motor fuel transaction that requires
445	354		that the person have a license under this chapter without then and
446	355		there holding the required license;
447		-	(21) makes and delivers or causes to be made and
448		-	delivered to the comptroller a report or application required under
449		-	this chapter to be made and delivered to the comptroller, if the
450		-	report or application contains false information;
	356	+	(21) makes and delivers to the comptroller a report
	357	+	required under this chapter to be made and delivered to the
	358	+	comptroller, if the report contains false information;
451	359		(22) forges, falsifies, or alters an invoice or
452	360		shipping document prescribed by law;
453	361		(23) makes any statement, knowing said statement to be
454	362		false, in a claim for a tax refund filed with the comptroller;
455	363		(24) furnishes to a licensed supplier or distributor a
456	364		signed statement for purchasing diesel fuel tax-free and then uses
457	365		the tax-free diesel fuel to operate a diesel-powered motor vehicle
458	366		on a public highway;
459	367		(25) holds an aviation fuel dealer's license and makes
460	368		a taxable sale or use of any gasoline or diesel fuel;
461	369		(26) fails to remit any tax funds collected or
462	370		required to be collected by a license holder, another user, or any
463	371		other person required to hold a license under this chapter;
464	372		(27) makes a sale of dyed diesel fuel tax-free into a
465	373		storage facility of a person who:
466	374		(A) is not licensed as a distributor, as an
467	375		aviation fuel dealer, or as a dyed diesel fuel bonded user; or
468	376		(B) does not furnish to the licensed supplier or
469	377		distributor a signed statement prescribed in Section 162.206;
470	378		(28) makes a sale of gasoline tax-free to any person
471	379		who is not licensed as an aviation fuel dealer;
472	380		(29) purchases any motor fuel tax-free when not
473	381		authorized to make a tax-free purchase under this chapter;
474	382		(30) purchases motor fuel with the intent to evade any
475	383		tax imposed by this chapter or accepts a delivery of motor fuel by
476	384		any means and does not at the same time accept or receive a shipping
477	385		document relating to the delivery;
478	386		(31) transports motor fuel without [for which] a cargo
479	387		manifest or shipping document or presents to a peace officer a
480	388		shipping document the contents of which are inconsistent with the
481	389		volume and content of the motor fuel being transported [is required
482	390		to be carried without possessing or exhibiting on demand by an
483	391		officer authorized to make the demand a cargo manifest or shipping
484	392		document containing the information required to be shown on the
485	393		manifest or shipping document];
486	394		(32) imports, sells, uses, blends, distributes, or
487	395		stores motor fuel within this state on which the taxes imposed by
488	396		this chapter are owed but have not been first paid to or reported by
489	397		a license holder, another user, or any other person required to hold
490	398		a license under this chapter;
491	399		(33) blends products together to produce a blended
492	400		fuel that is offered for sale, sold, or used and that expands the
493	401		volume of the original product to evade paying applicable motor
494	402		fuel taxes;
495	403		(34) evades or attempts to evade in any manner a tax
496	404		imposed on motor fuel by this chapter;
497	405		(35) delivers compressed natural gas or liquefied
498	406		natural gas into the fuel supply tank of a motor vehicle and the
499	407		person does not hold a valid compressed natural gas and liquefied
500	408		natural gas dealer's license; or
501	409		(36) makes a tax-free delivery of compressed natural
502	410		gas or liquefied natural gas into the fuel supply tank of a motor
503	411		vehicle, unless the delivery is exempt from tax under Section
504	412		162.356.
505		-	SECTION 1.14. The changes in law made by this article apply
506		-	only to an offense committed on or after the effective date of this
507		-	Act. An offense committed before the effective date of this Act is
508		-	governed by the law in effect on the date the offense was committed,
509		-	and the former law is continued in effect for that purpose. For
510		-	purposes of this section, an offense was committed before the
511		-	effective date of this Act if any element of the offense occurred
512		-	before that date.
513		-	SECTION 1.15. Sections 162.108, 162.110, 162.209, and
514		-	162.211, Tax Code, as amended by this article, apply to a license
515		-	issued to a motor fuel transporter, regardless of whether the
516		-	license was issued before, on, or after the effective date of this
517		-	Act.
518		-	ARTICLE 2. MOTOR FUEL DEPOTS
519		-	SECTION 2.01. The legislature finds that:
520		-	(1) the concentration of unregulated and lightly
521		-	regulated motor fuel depots near international ports of entry and
522		-	border crossings poses a growing threat to public safety, tax
523		-	enforcement, environmental protection, and the uninterrupted flow
524		-	of lawful trade;
525		-	(2) the Senate Committee on Border Security Interim
526		-	Report to the 89th Legislature documents patterns of misuse at
527		-	motor fuel depots located near the Texas-Mexico border, including
528		-	conduct that may:
529		-	(A) exploit exemptions for tax-free motor fuel
530		-	through fraudulent flash title sales;
531		-	(B) facilitate the cross-border movement of
532		-	untaxed or unaccounted-for motor fuel;
533		-	(C) bypass inspection and enforcement mechanisms
534		-	through the use of noncredentialed drivers and unlicensed
535		-	transporters; and
536		-	(D) stage motor fuel transfers involving
537		-	overweight vehicles operating outside regulated corridors;
538		-	(3) federal enforcement reports and investigative
539		-	findings indicate that certain transnational criminal networks
540		-	have incorporated motor fuel theft, laundering, and covert
541		-	distribution operations into broader illicit enterprises, using
542		-	motor fuel depots and logistics corridors to evade detection;
543		-	(4) the findings described by Subdivision (3) of this
544		-	section have been recognized by federal sanctions authorities due
545		-	to the threat such operations pose to economic stability and
546		-	security on both sides of the border;
547		-	(5) the Senate Committee on Border Security Interim
548		-	Report to the 89th Legislature further found that the proliferation
549		-	of motor fuel depots and motor fuel transloading sites near the
550		-	international border:
551		-	(A) enables falsified documentation of origin,
552		-	destination, or custody of motor fuel shipments;
553		-	(B) undermines the ability of state agencies to
554		-	verify compliance with export reporting and tax collection
555		-	requirements; and
556		-	(C) contributes to the development of
557		-	noncompliant or covert transloading operations in proximity to
558		-	critical infrastructure, posing risks to the health and safety of
559		-	surrounding communities;
560		-	(6) these motor fuel depots also pose environmental
561		-	and public health risks, including:
562		-	(A) the possibility of accidental spills or
563		-	explosions from hazardous materials transfers near populated
564		-	areas;
565		-	(B) the use of mobile or non-permitted storage
566		-	units without secondary containment systems; and
567		-	(C) the potential for contamination of surface
568		-	water or groundwater through unregulated motor fuel handling
569		-	practices;
570		-	(7) the risk that a hazardous incident involving motor
571		-	fuel storage or transloading near an international bridge or port
572		-	of entry could result in significant infrastructure damage is of
573		-	particular concern to national security;
574		-	(8) an event described by Subdivision (7) of this
575		-	section, whether accidental or intentional, could disrupt
576		-	cross-border freight and passenger traffic for an extended period,
577		-	with cascading effects on national and international trade routes,
578		-	and given the volume of daily commercial crossings, even a
579		-	temporary closure could result in substantial economic losses
580		-	affecting supply chains and markets well beyond the border region;
581		-	(9) these activities are concentrated near the
582		-	international border and operate in legal gray zones where federal,
583		-	state, and local authorities have overlapping or incomplete
584		-	jurisdiction;
585		-	(10) without clear and targeted legislation, motor
586		-	fuel depots operating in these corridors within border counties may
587		-	continue to pose systemic risks to national security;
588		-	(11) prohibiting the operation of motor fuel depots
589		-	within counties along the Texas-Mexico border is necessary to:
590		-	(A) prevent tax evasion and fraudulent export
591		-	practices;
592		-	(B) disrupt motor fuel-related trafficking to
593		-	prevent the use of stolen motor fuel as a revenue stream to finance
594		-	broader criminal enterprises and corruption;
595		-	(C) protect public health, safety, and
596		-	environmental quality;
597		-	(D) preserve the integrity and reliability of
598		-	commercial ports and critical freight corridors from transnational
599		-	criminal threats; and
600		-	(E) support lawful trade, infrastructure
601		-	investment, and economic security across Texas and beyond; and
602		-	(12) this article represents a valid and necessary
603		-	exercise of the state's police power to safeguard public safety,
604		-	commerce, transportation systems, and environmental health in
605		-	areas that are uniquely vulnerable to cross-border motor
606		-	fuel-related risks.
607		-	SECTION 2.02. Subtitle B, Title 4, Government Code, is
608		-	amended by adding Chapter 426 to read as follows:
609		-	CHAPTER 426. RESTRICTIONS RELATING TO MOTOR FUEL DEPOTS IN BORDER
610		-	COUNTIES
611		-	Sec. 426.001. DEFINITIONS. In this chapter:
612		-	(1) "Motor fuel" has the meaning assigned by Section
613		-	162.001, Tax Code.
614		-	(2) "Motor fuel depot" means any stationary or mobile
615		-	facility used for the temporary or permanent storage, staging,
616		-	transfer, transloading, or handling of motor fuel before
617		-	transportation or export, whether the motor fuel is stored in a
618		-	tank, container, or vehicle. The term does not include motor fuel
619		-	that is:
620		-	(A) stored exclusively for residential,
621		-	agricultural, or emergency purposes; or
622		-	(B) held in mobile tanks solely for direct
623		-	on-road delivery not involving interim storage or transfer.
624		-	(3) "Transloading" means the transfer of motor fuel
625		-	from one tank, container, or vehicle to another for purposes of
626		-	storage, redistribution, or export, including transfers between
627		-	transport vehicles at a motor fuel depot.
628		-	Sec. 426.002. MOTOR FUEL DEPOTS IN BORDER COUNTIES
629		-	PROHIBITED. (a) A person may not establish, operate, or assist in
630		-	the operation of a motor fuel depot located in a county that borders
631		-	the United Mexican States, regardless of whether the motor fuel
632		-	depot:
633		-	(1) is located on public or private property; or
634		-	(2) is intended for permanent or temporary operation.
635		-	(b) For purposes of Subsection (a), "assists in the
636		-	operation of a motor fuel depot" includes knowingly allowing a
637		-	motor fuel depot to operate on property owned or controlled by the
638		-	person.
639		-	Sec. 426.003. CERTAIN CONDUCT RELATED TO MOTOR FUEL
640		-	TRANSPORTATION PROHIBITED. A person may not knowingly:
641		-	(1) deliver motor fuel to a motor fuel depot located in
642		-	a county that borders the United Mexican States;
643		-	(2) transport motor fuel to or from a motor fuel depot
644		-	described by Subdivision (1) using an overweight vehicle that:
645		-	(A) exceeds the weight limitations provided by
646		-	law; and
647		-	(B) is not operating under a permit issued under
648		-	Subtitle E, Title 7, Transportation Code; or
649		-	(3) falsify a transport record, shipping document, or
650		-	bill of lading to disguise the origin or destination of motor fuel.
651		-	Sec. 426.004. CRIMINAL PENALTIES. (a) A person commits an
652		-	offense if the person violates Section 426.002 or 426.003.
653		-	(b) An offense under this section involving a violation of
654		-	Section 426.002 is a Class A misdemeanor, except that the offense
655		-	is:
656		-	(1) a state jail felony if the actor has been
657		-	previously convicted one time of an offense punishable under this
658		-	subsection; or
659		-	(2) a felony of the third degree if:
660		-	(A) the actor has been previously convicted two
661		-	or more times of an offense punishable under this subsection;
662		-	(B) the motor fuel depot is located within five
663		-	miles of an international bridge, port of entry, or border crossing
664		-	between this state and the United Mexican States; or
665		-	(C) it is shown on the trial of the offense that
666		-	the motor fuel depot is linked to environmental contamination or
667		-	organized criminal activity.
668		-	(c) An offense under this section involving a violation of
669		-	Section 426.003 is a felony of the second degree.
670		-	Sec. 426.005. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The
671		-	attorney general may institute an action for injunctive relief to
672		-	restrain a violation of this chapter.
673		-	(b) In addition to the injunctive relief provided by
674		-	Subsection (a), the attorney general may institute an action for a
675		-	civil penalty against a person who owns or controls property on
676		-	which a motor fuel depot is located if the person knowingly
677		-	established, operated, or assisted in the operation of the motor
678		-	fuel depot in violation of Section 426.002. A civil penalty
679		-	assessed under this subsection may not exceed $25,000 for each day
680		-	the motor fuel depot is operated in violation of Section 426.002.
681		-	Sec. 426.006. DISCIPLINARY ACTION BY REGULATORY AGENCY.
682		-	The appropriate regulatory agency may take disciplinary action
683		-	against a person who violates this chapter, including by suspending
684		-	or revoking a license or permit issued to the person.
685		-	SECTION 2.03. Article 59.01(2), Code of Criminal Procedure,
686		-	is amended to read as follows:
687		-	(2) "Contraband" means property of any nature,
688		-	including real, personal, tangible, or intangible, that is:
689		-	(A) used in the commission of:
690		-	(i) any first or second degree felony under
691		-	the Penal Code;
692		-	(ii) any felony under Section 15.031(b),
693		-	21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal
694		-	Code;
695		-	(iii) any felony under Chapter 43, Penal
696		-	Code, except as provided by Paragraph (B);
697		-	(iv) any felony under The Securities Act
698		-	(Title 12, Government Code); or
699		-	(v) any offense under Chapter 49, Penal
700		-	Code, that is punishable as a felony of the third degree or state
701		-	jail felony, if the defendant has been previously convicted three
702		-	times of an offense under that chapter;
703		-	(B) used or intended to be used in the commission
704		-	of:
705		-	(i) any felony under Chapter 481, Health
706		-	and Safety Code (Texas Controlled Substances Act);
707		-	(ii) any felony under Chapter 483, Health
708		-	and Safety Code;
709		-	(iii) a felony under Chapter 152, Finance
710		-	Code;
711		-	(iv) any felony under Chapter 20A or 34,
712		-	Penal Code;
713		-	(v) a Class A misdemeanor under Subchapter
714		-	B, Chapter 365, Health and Safety Code, if the defendant has been
715		-	previously convicted twice of an offense under that subchapter;
716		-	(vi) any felony under Chapter 32, Human
717		-	Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
718		-	involves a health care program, as defined by Section 35A.01, Penal
719		-	Code;
720		-	(vii) a Class B misdemeanor under Chapter
721		-	522, Business & Commerce Code;
722		-	(viii) a Class A misdemeanor under Section
723		-	306.051, Business & Commerce Code;
724		-	(ix) any offense under Section 42.10, Penal
725		-	Code;
726		-	(x) any offense under Section 46.06(a)(1)
727		-	or 46.14, Penal Code;
728		-	(xi) any offense under Chapter 71, Penal
729		-	Code;
730		-	(xii) any offense under Section 20.05,
731		-	20.06, 20.07, 43.04, or 43.05, Penal Code;
732		-	(xiii) an offense under Section 326.002,
733		-	Business & Commerce Code;
734		-	(xiv) any offense under Section 545.420,
735		-	Transportation Code; [or]
736		-	(xv) any offense punishable under Section
737		-	42.03(d) or (e), Penal Code; or
738		-	(xvi) any offense under Section 426.002,
739		-	Government Code;
740		-	(C) the proceeds gained from the commission of a
741		-	felony listed in Paragraph (A) or (B) of this subdivision, a
742		-	misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),
743		-	(xiv), or (xv) of this subdivision, or a crime of violence;
744		-	(D) acquired with proceeds gained from the
745		-	commission of a felony listed in Paragraph (A) or (B) of this
746		-	subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),
747		-	(xi), (xii), (xiv), or (xv) of this subdivision, or a crime of
748		-	violence;
749		-	(E) used to facilitate or intended to be used to
750		-	facilitate the commission of a felony under Section 15.031 or
751		-	Chapter 43, Penal Code; or
752		-	(F) used to facilitate or intended to be used to
753		-	facilitate the commission of an offense under Section 20.05, 20.06,
754		-	or 20.07 or Chapter 20A, Penal Code.
755		-	ARTICLE 3. MISCELLANEOUS PROVISIONS
756		-	SECTION 3.01. Article 18B.202(a), Code of Criminal
757		-	Procedure, is amended to read as follows:
758		-	(a) A district judge may issue an order for the installation
759		-	and use of a mobile tracking device only on the application of:
760		-	(1) an authorized peace officer; or
761		-	(2) a peace officer commissioned by the comptroller.
762		-	SECTION 3.02. Subchapter G, Chapter 621, Transportation
763		-	Code, is amended by adding Section 621.512 to read as follows:
764		-	Sec. 621.512. PROHIBITION ON OPERATING CERTAIN OVERWEIGHT
765		-	VEHICLES TRANSPORTING HAZARDOUS MATERIALS ON ROUTE OTHER THAN
766		-	DESIGNATED PERMIT ROUTE. (a) A person commits an offense if the
767		-	person operates or moves an overweight vehicle with three axles
768		-	that is transporting hazardous materials under a permit issued
769		-	under this subtitle on a public highway that is not included in the
770		-	route designated under the permit.
	413	+	SECTION 11. Subchapter G, Chapter 621, Transportation Code,
	414	+	is amended by adding Section 621.512 to read as follows:
	415	+	Sec. 621.512. PROHIBITION ON OPERATING OVERWEIGHT VEHICLE
	416	+	TRANSPORTING HAZARDOUS MATERIALS ON ROUTE OTHER THAN DESIGNATED
	417	+	PERMIT ROUTE. (a) A person commits an offense if the person
	418	+	operates or moves an overweight vehicle transporting hazardous
	419	+	materials under a permit issued under this subtitle on a public
	420	+	highway that is not included in the route designated under the
	421	+	permit.
771	422		(b) An offense under this section is a felony of the second
772	423		degree.
773	424		(c) It is an affirmative defense to prosecution under this
774	425		section that, at the time of the offense, the vehicle was being
775	426		operated or moved:
776	427		(1) under the immediate direction of a law enforcement
777	428		agency; or
778	429		(2) in compliance with a permit authorizing the
779	430		movement of the vehicle issued by the department or a political
780	431		subdivision of this state.
781		-	ARTICLE 4. EFFECTIVE DATE
782		-	SECTION 4.01. This Act takes effect September 1, 2025.
783		-	* * * * *
	432	+	SECTION 12. The changes in law made by this Act apply only
	433	+	to an offense committed on or after the effective date of this Act.
	434	+	An offense committed before the effective date of this Act is
	435	+	governed by the law in effect on the date the offense was committed,
	436	+	and the former law is continued in effect for that purpose. For
	437	+	purposes of this section, an offense was committed before the
	438	+	effective date of this Act if any element of the offense occurred
	439	+	before that date.
	440	+	SECTION 13. Sections 162.110 and 162.211, Tax Code, as
	441	+	amended by this Act, apply to a license issued to a motor fuel
	442	+	transporter, regardless of whether the license was issued before,
	443	+	on, or after the effective date of this Act.
	444	+	SECTION 14. This Act takes effect September 1, 2025.