CHAPTER 17. SALE AND REGULATION OF CERTAIN FUEL MIXTURES
AGRICULTURE CODE
TITLE 2. DEPARTMENT OF AGRICULTURE
CHAPTER 17. SALE AND REGULATION OF CERTAIN FUEL MIXTURES
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.
(c) If a motor fuel pump is supplied by a storage tank into
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.
(c) The commissioner by rule may prescribe the form of the
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.
(c) The commissioner or an authorized representative of the
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.
(c) The commissioner or an authorized representative of the
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.
(c) A person commits an offense if the person refuses to allow a
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.
(c) The commissioner by rule shall prescribe the form for
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.
(c) The court shall award to a motor fuel user who prevails in
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.
(c) An offense under Subsection (a) is a Class C misdemeanor.
(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.
(c) The amount of the penalty shall be based on:
(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.