CHAPTER 17. SALE AND REGULATION OF CERTAIN FUEL MIXTURES

State Codes and Statutes

Statutes > Texas > Agriculture-code > Title-2-department-of-agriculture > Chapter-17-sale-and-regulation-of-certain-fuel-mixtures

AGRICULTURE CODE

TITLE 2. DEPARTMENT OF AGRICULTURE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 17.001. DEFINITIONS. In this chapter:

(1) "Automotive fuel rating" has the meaning assigned by 15

U.S.C. Section 2821.

(2) "Dealer" means a person who:

(A) is the operator of a service station or other retail outlet;

and

(B) delivers motor fuel into the fuel tanks of motor vehicles or

motor boats.

(3) "Distributor" has the meaning assigned by Section 162.001,

Tax Code.

(4) "Jobber" means a person who purchases tax-paid gasoline for

resale or distribution at wholesale.

(5) "Motor fuel" has the meaning assigned by Section 162.001,

Tax Code.

(6) "Supplier" has the meaning assigned by Section 162.001, Tax

Code.

(7) "Wholesaler" means a person who purchases tax-paid gasoline

for resale or distribution at wholesale.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

SUBCHAPTER B. SALE OR DELIVERY OF MOTOR FUEL

Sec. 17.051. NOTICE OF SALE OF ALCOHOL AND FUEL MIXTURE. (a) A

dealer may not sell or offer for sale motor fuel from a motor

fuel pump supplied by a storage tank into which motor fuel, in a

mixture in which at least one percent of the mixture measured by

volume is ethanol or methanol, has been delivered within the

60-day period preceding the date of sale or offer of sale unless

the dealer prominently displays on the pump from which the

mixture is sold a sign that complies with Subsection (b).

(b) A sign required by Subsection (a) must:

(1) be displayed on each face of the motor fuel pump on which

the price of the motor fuel mixture sold from the pump is

displayed;

(2) state "Contains Ethanol" or "Contains Methanol," as

applicable;

(3) appear in contrasting colors with block letters at least

one-half inch high and one-fourth inch wide; and

(4) be displayed in a clear, conspicuous, and prominent manner,

visible to customers using either side of the pump.

which motor fuel containing at least 10 percent ethanol by volume

or at least five percent methanol by volume is delivered in the

60-day period preceding the date of the sale or offer of sale,

the sign required by Subsection (a) must also state the

percentage of ethanol or methanol by volume, to the nearest whole

percent, of the motor fuel having the highest percentage of

ethanol or methanol delivered into that storage tank during that

period.

(d) On request by a motor fuel user, a dealer shall reveal:

(1) the percentage of ethanol contained in motor fuel being

sold;

(2) the percentage of methanol contained in motor fuel being

sold; and

(3) if the motor fuel contains methanol, the types and

percentages of associated cosolvents contained in the motor fuel

being sold.

(e) This section does not prohibit the posting of any other

alcohol or additive information. Other alcohol or additive

information and any relevant posting are subject to regulation by

the commissioner.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.052. DOCUMENTATION OF MOTOR FUEL MIXTURE SALES. (a)

Except as provided by Subsection (b), a distributor, supplier,

wholesaler, or jobber of motor fuel may not deliver to an outlet

in this state a motor fuel mixture that contains ethanol or

methanol exceeding one percent by volume of the mixture unless,

at the time of the delivery of the mixture, the person also

delivers to the outlet receiving the delivery:

(1) signs required by Section 17.051 in a number sufficient for

the dealer receiving the mixture to comply with that section; and

(2) a manifest, bill of sale, bill of lading, or other document

evidencing delivery of the mixture, that:

(A) includes a statement containing:

(i) the percentage of ethanol or methanol contained in the

mixture; and

(ii) the types and percentages of any associated cosolvents

contained in the mixture; and

(B) evidences delivery of the signs required under Subdivision

(1).

(b) Subsection (a) does not apply to a delivery made into the

fuel supply tanks of a motor vehicle.

statement required by Subsection (a).

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.053. RECORD OF DELIVERY DOCUMENTS; INSPECTION

AUTHORIZED. (a) Each dealer shall keep a copy of each document

required to be delivered to the dealer by Section 17.052 until

the first anniversary of the delivery date. During the first 60

days following delivery of a fuel mixture subject to this

chapter, the dealer shall keep a copy at the station or retail

outlet where the motor fuel was delivered.

(b) Each distributor, supplier, wholesaler, and jobber of motor

fuel shall keep at the person's principal place of business a

copy of each document required to be delivered to the dealer by

Section 17.052 until the first anniversary of the delivery date.

commissioner may inspect documents described by this section.

(d) The commissioner by rule may prescribe:

(1) the manner of filing documents required to be kept under

this section; and

(2) the time, place, and manner of inspection of the documents.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.054. DOCUMENTS RELATING TO POSTING OR CERTIFICATION OF

AUTOMOTIVE FUEL RATINGS. (a) Each dealer shall keep for at

least one year a copy of:

(1) each delivery ticket or letter of certification on which the

dealer based a posting of the automotive fuel rating of motor

fuel contained in a motor fuel pump;

(2) each delivery ticket or letter of certification that is

required to be delivered to the dealer under 16 C.F.R. Part 306;

and

(3) records of any automotive fuel rating determination made by

the dealer under 16 C.F.R. Part 306.

(b) Each distributor or supplier shall keep for at least one

year at the distributor's or supplier's principal place of

business a copy of each delivery ticket or letter of

certification required to be delivered by the distributor or

supplier to a dealer in this state under 16 C.F.R. Part 306.

commissioner may inspect a document required to be kept under

this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.055. SALE OF MOTOR FUEL WITH INACCURATE AUTOMOTIVE FUEL

RATING. (a) A dealer may not sell or offer for sale from a

motor fuel pump motor fuel that has an automotive fuel rating

lower than the rating for that motor fuel posted on the pump.

(b) A distributor or supplier of motor fuel may not deliver or

transfer to a dealer in this state motor fuel that has an

automotive fuel rating lower than the certification of the rating

the distributor or supplier is required to make to the dealer

under federal law.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

SUBCHAPTER B-1. MOTOR FUEL QUALITY AND TESTING

Sec. 17.071. MINIMUM MOTOR FUEL QUALITY AND TESTING STANDARDS.

The department by rule shall adopt minimum motor fuel quality and

testing standards for motor fuel that is sold or offered for sale

in this state. The standards must comply with the nationally

recognized minimum standards established by:

(1) the American Society for Testing and Materials, as those

standards existed on September 1, 2009, for motor fuels other

than motor fuels blended with ethanol; and

(2) the National Institute of Standards and Technology, as those

standards existed on September 1, 2009, other than the standard

vapor to liquid ratio specification for motor fuels blended with

ethanol.

Added by Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 24, eff. January 1, 2010.

Sec. 17.072. TESTING OF MOTOR FUEL QUALITY. (a) The department

may collect samples and conduct testing at any location where

motor fuel is kept, transferred, sold, or offered for sale, to

verify that the motor fuel complies with the minimum standards

required by Section 17.071.

(b) On arriving at a facility to conduct testing under

Subsection (a), a representative of the department shall notify

the owner or manager of the facility of the representative's

presence and purpose.

department representative to collect samples or conduct motor

fuel testing under Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 24, eff. January 1, 2010.

Sec. 17.073. STOP-SALE ORDER. If the department has reason to

believe that motor fuel is in violation of this chapter or a rule

adopted under this chapter, the department may issue and enforce

a written order to stop the sale of the motor fuel. The

department shall present the order to the dealer, distributor,

jobber, supplier, or wholesaler who is in control of the motor

fuel at the time the motor fuel is tested. The person who

receives the order may not sell the motor fuel until the

department determines that the motor fuel is in compliance with

this chapter and department rules.

Added by Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 24, eff. January 1, 2010.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 17.101. COPIES OF DOCUMENTS; DELIVERY TO FEDERAL

GOVERNMENT. (a) The commissioner, an authorized representative

of the commissioner, or the attorney general may copy any

manifest, bill of sale, bill of lading, delivery ticket, letter

of certification, or other document that the commissioner or

attorney general is entitled to inspect under this chapter.

(b) The commissioner, an authorized representative of the

commissioner, or the attorney general may deliver a copy of a

document described by Subsection (a) to the federal government

for the purpose of prosecuting a person for a violation of

federal law relating to the sale or transfer of motor fuel.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.102. TESTING; RULES RELATING TO TESTING FREQUENCY. To

determine compliance with the standards and enforce rules adopted

under Sections 17.051, 17.052, 17.053, 17.055, and 17.103, the

commissioner or an authorized representative of the commissioner

may test any motor fuel sold in this state, regardless of the

existence of a complaint about the fuel. This section does not

prohibit the commissioner from adopting rules relating to the

frequency of testing motor fuels. In adopting the rules, the

commissioner shall consider:

(1) the nature of the violation;

(2) the history of past violations; and

(3) available funds under Section 17.104(d).

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.103. AUTHORITY OF COMMISSIONER TO LIMIT APPLICABILITY OF

LAW. If the commissioner determines that certain types of motor

fuel, such as diesel or liquefied petroleum gas, are not sold in

this state as mixtures with alcohol in sufficient quantities to

warrant regulation of deliveries of those types of motor fuel

under this chapter, the commissioner may limit the application of

Sections 17.051 and 17.052 to motor fuels sold in sufficient

quantity to warrant regulation.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.104. RULES; FEES. (a) The commissioner may adopt rules

consistent with this chapter for the regulation of the sale of

motor fuels, including motor fuels that contain ethanol and

methanol.

(b) The commissioner by rule may impose a fee for testing,

inspection, or the performance of other services provided as

determined necessary by the commissioner in the administration of

this chapter. A fee imposed under this subsection shall be

collected from each dealer, distributor, jobber, supplier, and

wholesaler on a periodic basis determined by the commissioner

without regard to whether the motor fuel is subject to regulation

under this chapter.

reporting and remitting the fees imposed under this section.

(d) Fees collected under this section may be used only to

administer and enforce this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 25, eff. September 1, 2009.

SUBCHAPTER D. ENFORCEMENT

Sec. 17.151. CONTRACT FOR ENFORCEMENT. The commissioner may

contract for the enforcement of this chapter after due notice.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.152. CIVIL ACTION. (a) If a dealer or a distributor,

supplier, wholesaler, or jobber of motor fuel violates Section

17.051, 17.052, 17.053, 17.054, or 17.055, a motor fuel user who

purchased the motor fuel and sustained damages or who has a

complaint about the product may bring an action against the

dealer, distributor, supplier, wholesaler, or jobber.

(b) The action may be brought, without regard to the specific

amount of damages, in the district court in any county in which:

(1) the dealer, distributor, supplier, wholesaler, or jobber

transacts business; or

(2) the dealer resides.

an action under this section:

(1) the amount of actual damages;

(2) equitable relief as determined by the court to be necessary

to remedy the effects of the violation, including a declaratory

judgment, permanent injunctive relief, and temporary injunctive

relief; and

(3) court costs and attorney's fees that are reasonable in

relation to the amount of work expended.

(d) In addition to the remedies provided under Subsection (c),

on finding that the defendant wilfully or knowingly violated

Section 17.051, 17.052, or 17.053, the trier of fact shall award

not more than three times the amount of actual damages.

(e) A violation of Section 17.051, 17.052, 17.053, 17.054, or

17.055 also constitutes a deceptive trade practice under

Subchapter E, Chapter 17, Business & Commerce Code.

(f) An action alleging a violation of Section 17.051, 17.052,

17.053, 17.054, or 17.055 must be commenced and prosecuted not

later than the second anniversary of the date on which the cause

of action accrues.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.153. CIVIL PENALTY. A dealer, distributor, supplier,

wholesaler, or jobber who violates Section 17.051, 17.052,

17.053, 17.054, or 17.055 is liable to this state for a civil

penalty of not less than $200 and not more than $10,000.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.154. CRIMINAL OFFENSES. (a) A person commits an

offense if the person knowingly violates Section 17.051, 17.052,

17.053, 17.054, or 17.055 or a rule adopted by the commissioner

to enforce or implement those sections.

(b) A person commits an offense if the person knowingly:

(1) refuses to permit a person authorized by Section 17.102 to

test any motor fuel sold or held for sale in this state;

(2) refuses to permit inspection of any document required to be

kept or delivered by this chapter on request of a person

authorized to inspect the documents under Section 17.053 or

17.054; or

(3) mutilates, destroys, secretes, forges, or falsifies any

document, record, report, or sign required to be delivered, kept,

filed, or posted by this chapter or any rule adopted by the

commissioner to enforce this chapter.

(d) An offense under Subsection (b) is a Class B misdemeanor.

(e) The commissioner or the authorized representative of the

commissioner may request the appropriate prosecuting attorney to

prosecute a violation of this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Sec. 17.155. ADMINISTRATIVE PENALTY. (a) The department may

impose an administrative penalty against a person regulated under

this chapter who violates this chapter or a rule or order adopted

under this chapter. Except as otherwise provided by this

section, an administrative penalty is imposed and collected in

the manner provided by Section 12.020.

(b) The penalty for a violation of this chapter or a rule or

order adopted under this chapter may not exceed $5,000 a day for

each violation. Each day a violation continues or occurs may be

considered a separate violation for purposes of imposing a

penalty.

(1) the seriousness of the violation, including the nature,

circumstances, extent, and gravity of any prohibited acts, and

the hazard or potential hazard created to the health, safety, or

economic welfare of the public;

(2) the economic harm to property or the environment caused by

the violation;

(3) the history of previous violations;

(4) the amount necessary to deter future violations;

(5) efforts to correct the violation; and

(6) any other matter that justice may require.

(d) An employee of the department designated by the commissioner

to act under this section who determines that a violation has

occurred may issue to the commissioner a report stating the

facts on which the determination is based and the designated

employee's recommendation on the imposition of a penalty,

including a recommendation on the amount of the penalty.

(e) Not later than the 14th day after the date the report is

issued, the designated employee shall give written notice of the

report to the person charged with the violation. The notice may

be given by certified mail. The notice must:

(1) include a brief summary of the alleged violation;

(2) include a statement of the amount of the recommended

penalty; and

(3) inform the person charged that the person has a right to a

hearing on the occurrence of the violation, the amount of the

penalty, or both the occurrence of the violation and the amount

of the penalty.

(f) Not later than the 20th day after the date the person

charged receives the notice, the person:

(1) in writing may accept the determination and recommended

penalty of the designated employee; or

(2) may make a written request for a hearing on the occurrence

of the violation, the amount of the penalty, or both the

occurrence of the violation and the amount of the penalty.

(g) If the person charged with the violation accepts the

determination and recommended penalty of the designated employee,

the commissioner by order shall approve the determination and

impose the recommended penalty.

(h) If the person charged requests a hearing or fails to respond

timely to the notice, the designated employee shall set a hearing

and give notice of the hearing to the person. The hearing shall

be held by an administrative law judge of the State Office of

Administrative Hearings. The administrative law judge shall make

findings of fact and conclusions of law and promptly issue to the

commissioner a proposal for a decision as to the occurrence of

the violation and the amount of a proposed penalty. Based on the

findings of fact, conclusions of law, and proposal for a

decision, the commissioner by order may find a violation has

occurred and impose a penalty or may find that no violation has

occurred.

(i) The notice of the commissioner's order under Chapter 2001,

Government Code, given to the person charged with the violation

must include a statement of the right of the person to judicial

review of the order.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.06, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 26, eff. September 1, 2009.

Sec. 17.156. TOLL-FREE NUMBER. The department shall provide a

toll-free telephone number for use by the public in reporting

violations of this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

913, Sec. 27, eff. September 1, 2009.

State Codes and Statutes

State Codes and Statutes

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State Codes and Statutes

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