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