H.B. No. 2174
 
 
 
 
AN ACT
  relating to the regulation of motor fuel quality and motor fuel
  metering devices; authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 13.001(a), Agriculture Code, is amended
  by adding Subdivision (1-a) to read as follows:
               (1-a)  "Motor fuel metering device" means a commercial
  weighing or measuring device used for motor fuel sales with a
  maximum flow rate of 20 gallons per minute or less.
         SECTION 2.  Section 13.029, Agriculture Code, is amended to
  read as follows:
         Sec. 13.029.  EXEMPTION OF WEIGHING OR MEASURING DEVICES.
  (a) The department by rule may exempt a weighing or measuring device
  from a requirement established by this chapter if the department
  determines that imposing or enforcing the requirement:
               (1)  is not cost-effective for the department;
               (2)  is not feasible with current resources or
  standards; or
               (3)  will not substantially benefit or protect
  consumers.
         (b)  A motor fuel metering device is exempt from the
  requirements of this chapter if the motor fuel metering device is
  not used to:
               (1)  calculate the amount of fuel sold in a commercial
  transaction; or
               (2)  compute the charge for service.
         SECTION 3.  Section 13.101, Agriculture Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  This section does not apply to a motor fuel metering
  device.
         SECTION 4.  Section 13.1011, Agriculture Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  This section does not apply to a motor fuel metering
  device.
         SECTION 5.  Subchapter C, Chapter 13, Agriculture Code, is
  amended by adding Sections 13.1015, 13.1016, and 13.1017 to read as
  follows:
         Sec. 13.1015.  INSPECTION OF MOTOR FUEL METERING DEVICES.
  (a)  Unless a motor fuel metering device is exempt from the
  application of this section by department rule, a motor fuel
  metering device shall be inspected, tested, and calibrated for
  correctness by a license holder under Subchapter I at least once
  every two years if the device is:
               (1)  kept for sale, sold, or used by a proprietor,
  agent, lessee, or employee in proving the measure of motor fuel; or
               (2)  purchased, offered, or submitted by a proprietor,
  agent, lessee, or employee for sale, hire, or award.
         (b)  Inspection, testing, and calibration under this section
  must be performed by a license holder under Subchapter I under
  contract with the operator or user of the motor fuel metering
  device.
         Sec. 13.1016.  REQUIRED REGISTRATION OF MOTOR FUEL METERING
  DEVICES. (a) Unless a motor fuel metering device is exempt from
  the application of this section by department rule, a person who
  owns or operates a motor fuel metering device shall register the
  device with the department before using the device for a commercial
  transaction.
         (b)  An application for a device registration must:
               (1)  be submitted to the department on a form
  prescribed by the department;
               (2)  be accompanied by any other document or form
  required by the department;
               (3)  include the registration fee required under
  Section 13.1151; and
               (4)  include documentation of compliance with Section
  13.1015.
         (c)  A registration under this section is valid for one year
  unless a different period is established by department rule. The
  registration must be renewed at or before the end of each
  registration period and the application for renewal must include
  documentation of compliance with Section 13.1015.
         (d)  If a person fails to register or renew a registration as
  required by this section, the department may not issue a
  certificate to operate the motor fuel metering device. The
  department shall issue the certificate when the operator submits to
  the department the items required by Subsection (b).
         (e)  The department may assess a late fee if the registration
  of one or more devices located on a premises is renewed after the
  end of the registration period because of a registration error,
  including one or more devices not properly registered, failure to
  register the correct type of device, or failure to timely register a
  previously registered device.  The amount of the penalty may not
  exceed $50 per device, with a maximum penalty amount of $500 per
  year for the premises.
         Sec. 13.1017.  COMPLAINTS REGARDING MOTOR FUEL METERING
  DEVICES. (a)  The department shall receive complaints regarding
  motor fuel metering devices.
         (b)  After receiving a complaint regarding a motor fuel
  metering device, the department shall determine the date the device
  was last inspected under Section 13.1015 and the number of
  complaints received by the department in the previous 12 months
  regarding motor fuel metering devices at the premises where the
  device subject to the complaint is located.
         (c)  The department shall notify the person who last
  registered the motor fuel metering device and take no further
  action on the complaint if:
               (1)  the motor fuel metering device was last inspected
  not more than 18 months before the date the complaint is received;
  and
               (2)  the department received not more than two
  complaints in the previous 12 months regarding motor fuel metering
  devices at the premises where the device is located.
         (d)  The department shall notify the person who last
  registered the motor fuel metering device and require the device to
  be inspected by a license holder under Section 13.1015 not later
  than one month after the notification date if:
               (1)  the motor fuel metering device was last inspected
  more than 18 months before the date the complaint is received; or
               (2)  the department received at least three complaints
  in the previous 12 months regarding motor fuel metering devices at
  the premises where the device is located.
         SECTION 6.  Section 13.114, Agriculture Code, is amended to
  read as follows:
         Sec. 13.114.  TOLERANCES. The department shall establish
  specifications and tolerances for commercial weighing or measuring
  devices used in this state. The specifications and tolerances
  shall be similar to those recommended by the National Institute of
  Standards and Technology, except that the specifications and
  tolerances for motor fuel metering devices shall be the same as
  those recommended by the National Institute of Standards and
  Technology.
         SECTION 7.  Section 13.1151, Agriculture Code, is amended to
  read as follows:
         Sec. 13.1151.  FEES FOR REGISTRATION AND INSPECTION. (a)  
  The department may charge the owner or operator of a weighing or
  measuring device a fee, as provided by department rule, to recover
  the costs of registration and inspection of a weighing or measuring
  device required to be registered or inspected under this chapter.
         (b)  Notwithstanding any other law, the department may not in
  a state fiscal biennium increase a fee under Subsection (a) for a
  motor fuel metering device by an amount that exceeds 10 percent of
  the amount of the fee at the end of the preceding state fiscal
  biennium.
         SECTION 8.  Section 17.072, Agriculture Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (a-1) to
  read as follows:
         (a)  The department or a representative of 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.
         (a-1)  The collection of samples and conducting of testing at
  a dealer's location must be performed by a license holder under
  Subchapter I, Chapter 13, under contract with the dealer.  The
  license holder is considered a representative of the department for
  purposes of this section.
         (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. The department representative shall follow the most
  recent applicable procedures specified by ASTM International
  Standard D4057, D4177, D5842, or D5854 for the collection,
  sampling, and handling of fuel to prepare for laboratory analysis.
         SECTION 9.  Section 17.073(a), Agriculture Code, is amended
  to read as follows:
         (a)  If the department has laboratory results to confirm
  [reason to believe] that motor fuel is in violation of this chapter
  or a rule adopted under this chapter, or that the motor fuel is
  being sold or offered for sale in a manner that violates this
  chapter or a rule adopted under this chapter, the department may:
               (1)  issue and enforce a written order to stop the sale
  of the motor fuel;
               (2)  place on a device used to dispense the motor fuel a
  tag or other mark with the words "Out of Order"; or
               (3)  stop the sale of the motor fuel and mark a device
  used to dispense the motor fuel as out of order.
         SECTION 10.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2174 was passed by the House on May 3,
  2017, by the following vote:  Yeas 144, Nays 1, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2174 on May 25, 2017, by the following vote:  Yeas 134, Nays 11,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2174 was passed by the Senate, with
  amendments, on May 23, 2017, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor