By: Hinojosa of Hidalgo S.B. No. 2949       Blanco, Hinojosa of Nueces     A BILL TO BE ENTITLED   AN ACT   relating to certain regulations involving motor fuels or other   hazardous materials, including the transportation of motor fuels   and other hazardous materials and restrictions on certain motor   fuel depots; creating criminal offenses; authorizing a civil   penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  MOTOR FUEL TRANSPORTATION          SECTION 1.01.  Section 162.001(23), Tax Code, is amended to   read as follows:                (23)  "Export" means to obtain motor fuel in this state   for delivery from this state to another state or territory within   the United States or by direct delivery to a foreign country without   altering the content of the load by volume or composition [sale or   use in another state, territory, or foreign country].          SECTION 1.02.  Sections 162.004(b) and (e), Tax Code, are   amended to read as follows:          (b)  A shipping document shall contain the following   information and any other information required by the comptroller:                (1)  the terminal control number of the terminal or   physical address of the terminal or bulk plant from which the motor   fuel was received;                (2)  the name of the purchaser;                (3)  the date the motor fuel was loaded;                (4)  the net gallons loaded, or the gross gallons   loaded if the fuel was purchased from a bulk plant;                (5)  the destination state of the motor fuel, as   represented by the purchaser of the motor fuel or the purchaser's   agent; [and]                (6)  a description of the product being transported;                (7)  the name and taxpayer number of the transportation   company;                (8)  the name of the operator of the barge, vessel,   railroad tank car, or transport vehicle into which the motor fuel   was loaded; and                (9)  if the motor fuel is being delivered by transport   vehicle to another country, the specific location at which the   motor fuel will cross the border.          (e)  A person to whom a shipping document was issued shall:                (1)  carry the shipping document in the barge, vessel,   railroad tank car, or other transport vehicle for which the   document was issued when transporting the motor fuel described in   the document;                (2)  show the shipping document on request to any law   enforcement officer, representative of the comptroller, or other   authorized individual, when transporting the motor fuel described;                (3)  directly deliver the motor fuel to the destination   state or, if the motor fuel is being delivered by transport vehicle   to another country, to that country through the specific border   crossing location, that is printed on the shipping document unless   the person:                      (A)  notifies the comptroller, the border   crossing location, and the destination state, if a diversion   program is in place, before transporting the motor fuel into a state   other than the printed destination state, that the person has   received instructions after the shipping document was issued to   deliver the motor fuel to a different destination state;                      (B)  receives from the comptroller, border   crossing location, and destination state, if a diversion program is   in place, a diversion number authorizing the diversion; and                      (C)  writes on the shipping document the change in   border crossing location, the destination state, and the diversion   number; and                (4)  give a copy of the shipping document to the person   to whom the motor fuel is delivered.          SECTION 1.03.  Section 162.006, Tax Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  The comptroller may suspend a motor fuel   transporter's license without notice or a hearing if the license   holder fails to ensure that all employees or independent   contractors who transport motor fuel under the transporter's   license hold the specific license or endorsements required to   transport hazardous materials required by the state, territory, or   country in which the employee or independent contractor resides.          SECTION 1.04.  Section 162.016, Tax Code, is amended by   adding Subsections (j) and (k) to read as follows:          (j)  An importer or exporter may not engage in a transaction   involving any of the following prohibited conduct:                (1)  using a motor fuel depot, as that term is defined   by Section 426.0015, Government Code;                (2)  transferring motor fuel using a vehicle that   exceeds the legal weight limit without a valid corridor or   overweight permit;                (3)  transporting hazardous materials by a person who   lacks the required license or endorsement; or                (4)  using false, misleading, or incomplete   documentation regarding the motor fuel's destination, transporter,   or ownership.          (k)  Nothing in Subsection (j) shall be construed to   authorize the in-state diversion, storage, or resale of motor fuel   under a claimed export exemption unless:                (1)  the motor fuel is ultimately exported to another   state or territory of the United States or delivered directly to a   foreign country without altering the content of the load by volume   or composition; and                (2)  each transaction involving the motor fuel is   reported in compliance with this chapter.          SECTION 1.05.  Section 162.104(a), Tax Code, is amended to   read as follows:          (a)  The tax imposed by this subchapter does not apply to   gasoline:                (1)  sold to the United States for its exclusive use,   provided that the exemption does not apply with respect to fuel sold   or delivered to a person operating under a contract with the United   States;                (2)  sold to a public school district in this state for   the district's exclusive use;                (3)  sold to a commercial transportation company or a   metropolitan rapid transit authority operating under Chapter 451,   Transportation Code, that provides public school transportation   services to a school district under Section 34.008, Education Code,   and that uses the gasoline only to provide those services;                (4)  exported by either a licensed supplier or a   licensed exporter from this state to any other state within the   United States, provided that the bill of lading indicates the   destination state and the supplier collects the destination state   tax;                (5)  moved by truck or railcar between licensed   suppliers or licensed permissive suppliers and in which the   gasoline removed from the first terminal comes to rest in the second   terminal, provided that the removal from the second terminal rack   is subject to the tax imposed by this subchapter;                (6)  delivered or sold into a storage facility of a   licensed aviation fuel dealer from which gasoline will be delivered   solely into the fuel supply tanks of aircraft or aircraft servicing   equipment, or sold from one licensed aviation fuel dealer to   another licensed aviation fuel dealer who will deliver the aviation   fuel exclusively into the fuel supply tanks of aircraft or aircraft   servicing equipment;                (7)  directly exported to a foreign country without   altering the content of the load by volume or composition if the   bill of lading or shipping documents meet the requirements of   Section 162.004 [indicate the foreign destination] and the fuel is   actually exported to the foreign country;                (8)  sold to a volunteer fire department in this state   for the department's exclusive use;                (9)  sold to a nonprofit entity that is organized for   the sole purpose of and engages exclusively in providing emergency   medical services and that uses the gasoline exclusively to provide   emergency medical services, including rescue and ambulance   services; or                (10)  sold to a nonprofit food bank and delivered into:                      (A)  the fuel supply tank of a motor vehicle with a   gross vehicle weight rating of at least 25,000 pounds that is owned   by the nonprofit food bank and used to deliver food; or                      (B)  a storage facility from which gasoline will   be delivered solely into the fuel supply tanks of motor vehicles   described by Paragraph (A).          SECTION 1.06.  Section 162.108(e), Tax Code, is amended to   read as follows:          (e)  An applicant for a license as a motor fuel transporter   must list on the application each state from which and to which the   applicant intends to transport motor fuel and, if required by a   listed state, must be licensed or registered for gasoline tax   purposes in that state. If a listed state requires the applicant to   be licensed or registered, the applicant must provide the   applicant's license or registration number from that state. The   applicant must attest that any employee or independent contractor   who transports motor fuel under the applicant's license will hold   the specific license or endorsements required to transport   hazardous materials required by the state, territory, or country in   which the employee or independent contractor resides.          SECTION 1.07.  Sections 162.110(a) and (c), Tax Code, are   amended to read as follows:          (a)  The license issued to a supplier, permissive supplier,   distributor, importer, exporter, terminal operator, or blender[,   or motor fuel transporter] is permanent and is valid during the   period the license holder has in force and effect the required bond   or security and furnishes timely reports and supplements as   required, or until the license is surrendered by the holder or   canceled by the comptroller. The comptroller shall cancel a   license under this subsection if a purchase, sale, or use of   gasoline has not been reported by the license holder during the   previous nine months.          (c)  The license issued to an interstate trucker or motor   fuel transporter is valid from the date of its issuance through   December 31 of each calendar year or until the license is   surrendered by the holder or canceled by the comptroller.  The   comptroller may renew the license for each ensuing calendar year if   the license holder furnishes timely reports as required.          SECTION 1.08.  Section 162.1155, Tax Code, is amended by   adding Subsections (e) and (f) to read as follows:          (e)  A person required to report a transaction under   Subsection (a) is not required to directly transport the exported   gasoline if:                (1)  the gasoline is ultimately exported to another   state or territory of the United States or by direct delivery to a   foreign country without altering the content of the load by volume   or composition; and                (2)  the transaction is conducted between persons   licensed as exporters under this chapter and is reported to the   comptroller as required by Subsection (b).          (f)  Nothing in Subsection (e) shall be construed to   authorize the in-state diversion, storage, or resale of gasoline   under a claimed export exemption unless:                (1)  the gasoline is ultimately exported to another   state or territory of the United States or delivered directly to a   foreign country without altering the content of the load by volume   or composition; and                (2)  all transactions involving the gasoline are   reported in compliance with this chapter.          SECTION 1.09.  Section 162.204(a), Tax Code, is amended to   read as follows:          (a)  The tax imposed by this subchapter does not apply to:                (1)  diesel fuel sold to the United States for its   exclusive use, provided that the exemption does not apply to diesel   fuel sold or delivered to a person operating under a contract with   the United States;                (2)  diesel fuel sold to a public school district in   this state for the district's exclusive use;                (3)  diesel fuel sold to a commercial transportation   company or a metropolitan rapid transit authority operating under   Chapter 451, Transportation Code, that provides public school   transportation services to a school district under Section 34.008,   Education Code, and that uses the diesel fuel only to provide those   services;                (4)  diesel fuel exported by either a licensed supplier   or a licensed exporter from this state to any other state within the   United States, provided that the bill of lading indicates the   destination state and the supplier collects the destination state   tax;                (5)  diesel fuel moved by truck or railcar between   licensed suppliers or licensed permissive suppliers and in which   the diesel fuel removed from the first terminal comes to rest in the   second terminal, provided that the removal from the second terminal   rack is subject to the tax imposed by this subchapter;                (6)  diesel fuel delivered or sold into a storage   facility of a licensed aviation fuel dealer from which the diesel   fuel will be delivered solely into the fuel supply tanks of aircraft   or aircraft servicing equipment, or sold from one licensed aviation   fuel dealer to another licensed aviation fuel dealer who will   deliver the diesel fuel exclusively into the fuel supply tanks of   aircraft or aircraft servicing equipment;                (7)  diesel fuel directly exported to a foreign country   without altering the content of the load by volume or composition if   the bill of lading or shipping documents meet the requirements of   Section 162.004 [indicate the foreign destination] and the fuel is   actually exported to the foreign country;                (8)  dyed diesel fuel sold or delivered by a supplier to   another supplier and dyed diesel fuel sold or delivered by a   supplier or distributor into the bulk storage facility of a dyed   diesel fuel bonded user or to a purchaser who provides a signed   statement as provided by Section 162.206;                (9)  the volume of water, fuel ethanol, renewable   diesel, biodiesel, or mixtures thereof that are blended together   with taxable diesel fuel when the finished product sold or used is   clearly identified on the retail pump, storage tank, and sales   invoice as a combination of diesel fuel and water, fuel ethanol,   renewable diesel, biodiesel, or mixtures thereof;                (10)  dyed diesel fuel sold by a supplier or permissive   supplier to a distributor, or by a distributor to another   distributor;                (11)  dyed diesel fuel delivered by a license holder   into the fuel supply tanks of railway engines, motorboats, or   refrigeration units or other stationary equipment powered by a   separate motor from a separate fuel supply tank;                (12)  dyed kerosene when delivered by a supplier,   distributor, or importer into a storage facility at a retail   business from which all deliveries are exclusively for heating,   cooking, lighting, or similar nonhighway use;                (13)  diesel fuel used by a person, other than a   political subdivision, who owns, controls, operates, or manages a   commercial motor vehicle as defined by Section 548.001,   Transportation Code, if the fuel:                      (A)  is delivered exclusively into the fuel supply   tank of the commercial motor vehicle; and                      (B)  is used exclusively to transport passengers   for compensation or hire between points in this state on a fixed   route or schedule;                (14)  diesel fuel sold to a volunteer fire department   in this state for the department's exclusive use;                (15)  diesel fuel sold to a nonprofit entity that is   organized for the sole purpose of and engages exclusively in   providing emergency medical services and that uses the diesel fuel   exclusively to provide emergency medical services, including   rescue and ambulance services; or                (16)  diesel fuel sold to a nonprofit food bank and   delivered into:                      (A)  the fuel supply tank of a motor vehicle with a   gross vehicle weight rating of at least 25,000 pounds that is owned   by the nonprofit food bank and used to deliver food; or                      (B)  a storage facility from which diesel fuel   will be delivered solely into the fuel supply tanks of motor   vehicles described by Paragraph (A).          SECTION 1.10.  Section 162.209(e), Tax Code, is amended to   read as follows:          (e)  An applicant for a license as a motor fuel transporter   must list on the application each state from which and to which the   applicant intends to transport motor fuel and, if required by a   listed state, must be licensed or registered for diesel fuel tax   purposes in that state.  If a listed state requires the applicant to   be licensed or registered, the applicant must provide the   applicant's license or registration number from that state.  The   applicant must attest that any employee or independent contractor   who transports motor fuel under the applicant's license will hold   the specific license or endorsements required to transport   hazardous materials required by the state, territory, or country in   which the employee or independent contractor resides.          SECTION 1.11.  Sections 162.211(a) and (c), Tax Code, are   amended to read as follows:          (a)  The license issued to a supplier, permissive supplier,   distributor, importer, terminal supplier, exporter, blender,   [motor fuel transporter,] or dyed diesel fuel bonded user is   permanent and is valid during the period the license holder has in   force and effect the required bond or security and furnishes timely   reports and supplements as required, or until the license is   surrendered by the holder or canceled by the comptroller. The   comptroller shall cancel a license under this subsection if a   purchase, sale, or use of diesel fuel has not been reported by the   license holder during the previous nine months.          (c)  The license issued to an interstate trucker or motor   fuel transporter is valid from the date of its issuance through   December 31 of each calendar year or until the license is   surrendered by the holder or canceled by the comptroller.  The   comptroller may renew the license for each ensuing calendar year if   the license holder furnishes timely reports as required.          SECTION 1.12.  Section 162.2165, Tax Code, is amended by   adding Subsections (e) and (f) to read as follows:          (e)  A person required to report a transaction under   Subsection (a) is not required to directly transport the exported   diesel fuel if:                (1)  the diesel fuel is ultimately exported to another   state or territory of the United States or by direct delivery to a   foreign country without altering the content of the load by volume   or composition; and                (2)  the transaction is conducted between persons   licensed as exporters under this chapter and is reported to the   comptroller as required by Subsection (b).          (f)  Nothing in Subsection (e) shall be construed to   authorize the in-state diversion, storage, or resale of diesel fuel   under a claimed export exemption unless:                (1)  the diesel fuel is ultimately exported to another   state or territory of the United States or delivered directly to a   foreign country without altering the content of the load by volume   or composition; and                 (2)  all transactions involving the diesel fuel are   reported in compliance with this chapter.          SECTION 1.13.  Section 162.402(b), Tax Code, is amended to   read as follows:          (b)  A person [An importer or exporter] that violates a   requirement of Section 162.016 is liable to this state for a civil   penalty of $2,000 or five times the amount of the unpaid tax,   whichever is greater, for each violation.          SECTION 1.14.  Section 162.402, Tax Code, is amended by   adding Subsection (f) to read as follows:          (f)  A motor fuel transporter who fails to ensure that an   employee or independent contractor who transports motor fuel under   the transporter's license holds the specific license or   endorsements required to transport hazardous materials required by   the state, territory, or country in which the employee or   independent contractor resides is liable to this state for a civil   penalty in the amount of $25,000 for each occurrence.          SECTION 1.15.  Section 162.403, Tax Code, is amended to read   as follows:          Sec. 162.403.  CRIMINAL OFFENSES.  Except as provided by   Section 162.404, a person commits an offense if the person:                (1)  refuses to stop and permit the inspection and   examination of a motor vehicle transporting or using motor fuel on   the demand of a peace officer or the comptroller;                (2)  is required to hold a valid trip permit or   interstate trucker's license, but operates a motor vehicle in this   state without a valid trip permit or interstate trucker's license;                (3)  transports gasoline or diesel fuel in any cargo   tank that has a connection by pipe, tube, valve, or otherwise with   the fuel injector or carburetor or with the fuel supply tank feeding   the fuel injector or carburetor of the motor vehicle transporting   the product;                (4)  sells or delivers gasoline or diesel fuel from a   fuel supply tank that is connected with the fuel injector or   carburetor of a motor vehicle;                (5)  owns or operates a motor vehicle for which reports   or mileage records are required by this chapter without an   operating odometer or other device in good working condition to   record accurately the miles traveled;                (6)  sells or delivers dyed diesel fuel for the   operation of a motor vehicle on a public highway;                (7)  uses dyed diesel fuel for the operation of a motor   vehicle on a public highway except as allowed under Section   162.235;                (8)  refuses to permit the comptroller or the attorney   general to inspect, examine, or audit a book or record required to   be kept by a license holder, other user, or any person required to   hold a license under this chapter;                (9)  refuses to permit the comptroller or the attorney   general to inspect or examine any plant, equipment, materials, or   premises where motor fuel is produced, processed, blended, stored,   sold, delivered, or used;                (10)  refuses to permit the comptroller, the attorney   general, an employee of either of those officials, a peace officer,   an employee of the Texas Commission on Environmental Quality, or an   employee of the Texas Department of Licensing and Regulation to   measure or gauge the contents of or take samples from a storage tank   or container on premises where motor fuel is produced, processed,   blended, stored, sold, delivered, or used;                (11)  is a license holder, a person required to be   licensed, or another user and fails or refuses to make or deliver to   the comptroller a report required by this chapter to be made and   delivered to the comptroller;                (12)  is an importer who does not obtain an import   verification number when required by this chapter;                (13)  purchases motor fuel for export, on which the tax   imposed by this chapter has not been paid, and subsequently diverts   or causes the motor fuel to be diverted to a destination in this   state or any other state or country other than the originally   designated state or country without first obtaining a diversion   number;                (14)  conceals motor fuel with the intent of engaging   in any conduct proscribed by this chapter or refuses to make sales   of motor fuel on the volume-corrected basis prescribed by this   chapter;                (15)  refuses, while transporting motor fuel, to stop   the motor vehicle the person is operating when called on to do so by   a person authorized to stop the motor vehicle;                (16)  refuses to surrender a motor vehicle and cargo   for impoundment after being ordered to do so by a person authorized   to impound the motor vehicle and cargo;                (17)  mutilates, destroys, or secretes a book or record   required by this chapter to be kept by a license holder, other user,   or person required to hold a license under this chapter;                (18)  is a license holder, other user, or other person   required to hold a license under this chapter, or the agent or   employee of one of those persons, and makes a false entry or fails   to make an entry in the books and records required under this   chapter to be made by the person or fails to retain a document as   required by this chapter;                (19)  transports in any manner motor fuel under a false   cargo manifest or shipping document, or transports in any manner   motor fuel to a location without delivering at the same time a   shipping document relating to that shipment;                (20)  engages in a motor fuel transaction that requires   that the person have a license under this chapter without then and   there holding the required license;                (21)  makes and delivers or causes to be made and   delivered to the comptroller a report or application required under   this chapter to be made and delivered to the comptroller, if the   report or application contains false information;                (22)  forges, falsifies, or alters an invoice or   shipping document prescribed by law;                (23)  makes any statement, knowing said statement to be   false, in a claim for a tax refund filed with the comptroller;                (24)  furnishes to a licensed supplier or distributor a   signed statement for purchasing diesel fuel tax-free and then uses   the tax-free diesel fuel to operate a diesel-powered motor vehicle   on a public highway;                (25)  holds an aviation fuel dealer's license and makes   a taxable sale or use of any gasoline or diesel fuel;                (26)  fails to remit any tax funds collected or   required to be collected by a license holder, another user, or any   other person required to hold a license under this chapter;                (27)  makes a sale of dyed diesel fuel tax-free into a   storage facility of a person who:                      (A)  is not licensed as a distributor, as an   aviation fuel dealer, or as a dyed diesel fuel bonded user; or                      (B)  does not furnish to the licensed supplier or   distributor a signed statement prescribed in Section 162.206;                (28)  makes a sale of gasoline tax-free to any person   who is not licensed as an aviation fuel dealer;                (29)  purchases any motor fuel tax-free when not   authorized to make a tax-free purchase under this chapter;                (30)  purchases motor fuel with the intent to evade any   tax imposed by this chapter or accepts a delivery of motor fuel by   any means and does not at the same time accept or receive a shipping   document relating to the delivery;                (31)  transports motor fuel without [for which] a cargo   manifest or shipping document or presents to a peace officer a   shipping document the contents of which are inconsistent with the   volume and content of the motor fuel being transported [is required   to be carried without possessing or exhibiting on demand by an   officer authorized to make the demand a cargo manifest or shipping   document containing the information required to be shown on the   manifest or shipping document];                (32)  imports, sells, uses, blends, distributes, or   stores motor fuel within this state on which the taxes imposed by   this chapter are owed but have not been first paid to or reported by   a license holder, another user, or any other person required to hold   a license under this chapter;                (33)  blends products together to produce a blended   fuel that is offered for sale, sold, or used and that expands the   volume of the original product to evade paying applicable motor   fuel taxes;                (34)  evades or attempts to evade in any manner a tax   imposed on motor fuel by this chapter;                (35)  delivers compressed natural gas or liquefied   natural gas into the fuel supply tank of a motor vehicle and the   person does not hold a valid compressed natural gas and liquefied   natural gas dealer's license; or                (36)  makes a tax-free delivery of compressed natural   gas or liquefied natural gas into the fuel supply tank of a motor   vehicle, unless the delivery is exempt from tax under Section   162.356.          SECTION 1.16.  The changes in law made by this article apply   only to an offense committed on or after the effective date of this   Act.  An offense committed before the effective date of this Act is   governed by the law in effect on the date the offense was committed,   and the former law is continued in effect for that purpose.  For   purposes of this section, an offense was committed before the   effective date of this Act if any element of the offense occurred   before that date.          SECTION 1.17.  Sections 162.108, 162.110, 162.209, and   162.211, Tax Code, as amended by this article, apply to a license   issued to a motor fuel transporter, regardless of whether the   license was issued before, on, or after the effective date of this   Act.   ARTICLE 2. MOTOR FUEL DEPOTS          SECTION 2.01.  The legislature finds that:                (1)  the concentration of unregulated and lightly   regulated motor fuel depots near international ports of entry and   border crossings poses a growing threat to public safety, tax   enforcement, environmental protection, and the uninterrupted flow   of lawful trade;                (2)  the Senate Committee on Border Security Interim   Report to the 89th Legislature documents patterns of misuse at   motor fuel depots located near the Texas-Mexico border, including   conduct that may:                      (A)  exploit exemptions for tax-free motor fuel   through fraudulent flash title sales;                      (B)  facilitate the cross-border movement of   untaxed or unaccounted-for motor fuel;                      (C)  bypass inspection and enforcement mechanisms   through the use of noncredentialed drivers and unlicensed   transporters; and                      (D)  stage motor fuel transfers involving   overweight vehicles operating outside regulated corridors;                (3)  federal enforcement reports and investigative   findings indicate that certain transnational criminal networks   have incorporated motor fuel theft, laundering, and covert   distribution operations into broader illicit enterprises, using   motor fuel depots and logistics corridors to evade detection;                (4)  the findings described by Subdivision (3) of this   section have been recognized by federal sanctions authorities due   to the threat such operations pose to economic stability and   security on both sides of the border;                (5)  the Senate Committee on Border Security Interim   Report to the 89th Legislature further found that the proliferation   of motor fuel depots and motor fuel transloading sites near the   international border:                      (A)  enables falsified documentation of origin,   destination, or custody of motor fuel shipments;                      (B)  undermines the ability of state agencies to   verify compliance with export reporting and tax collection   requirements; and                      (C)  contributes to the development of   noncompliant or covert transloading operations in proximity to   critical infrastructure, posing risks to the health and safety of   surrounding communities;                (6)  these motor fuel depots also pose environmental   and public health risks, including:                      (A)  the possibility of accidental spills or   explosions from hazardous materials transfers near populated   areas;                      (B)  the use of mobile or non-permitted storage   units without secondary containment systems; and                      (C)  the potential for contamination of surface   water or groundwater through unregulated motor fuel handling   practices;                (7)  the risk that a hazardous incident involving motor   fuel storage or transloading near an international bridge or port   of entry could result in significant infrastructure damage is of   particular concern to national security;                (8)  an event described by Subdivision (7) of this   section, whether accidental or intentional, could disrupt   cross-border freight and passenger traffic for an extended period,   with cascading effects on national and international trade routes,   and given the volume of daily commercial crossings, even a   temporary closure could result in substantial economic losses   affecting supply chains and markets well beyond the border region;                (9)  these activities are concentrated near the   international border and operate in legal gray zones where federal,   state, and local authorities have overlapping or incomplete   jurisdiction;                (10)  without clear and targeted legislation, motor   fuel depots operating in these corridors within border counties may   continue to pose systemic risks to national security;                (11)  prohibiting the operation of motor fuel depots   within counties along the Texas-Mexico border is necessary to:                      (A)  prevent tax evasion and fraudulent export   practices;                      (B)  disrupt motor fuel-related trafficking to   prevent the use of stolen motor fuel as a revenue stream to finance   broader criminal enterprises and corruption;                      (C)  protect public health, safety, and   environmental quality;                      (D)  preserve the integrity and reliability of   commercial ports and critical freight corridors from transnational   criminal threats; and                      (E)  support lawful trade, infrastructure   investment, and economic security across Texas and beyond; and                (12)  this article represents a valid and necessary   exercise of the state's police power to safeguard public safety,   commerce, transportation systems, and environmental health in   areas that are uniquely vulnerable to cross-border motor   fuel-related risks.          SECTION 2.02.  Subtitle B, Title 4, Government Code, is   amended by adding Chapter 426 to read as follows:   CHAPTER 426.  RESTRICTIONS RELATING TO MOTOR FUEL DEPOTS IN BORDER   COUNTIES          Sec. 426.001.  GENERAL DEFINITIONS. In this chapter:                (1)  "Bulk transfer/terminal system," "export," "motor   fuel," and "transport vehicle" have the meanings assigned by   Section 162.001, Tax Code.                (2)  "Transloading" means the transfer of motor fuel   from a railcar, tank, container, or transport vehicle into any   other railcar, tank, container, or transport vehicle for purposes   of storage, redistribution, or export.          Sec. 426.0015.  MOTOR FUEL DEPOTS. (a) In this chapter,   "motor fuel depot" means any stationary or mobile facility used for   the temporary or permanent storage, staging, transfer,   transloading, or handling of motor fuel for export, whether the   motor fuel is stored in a tank, container, or vehicle.          (b)  The term "motor fuel depot" does not include a facility   that:                (1)  is part of the bulk transfer/terminal system;                (2)  is operating under a valid license issued by the   comptroller; or                (3)  is used solely for lawful activities consistent   with this chapter and is not used to facilitate or conceal unlawful   transloading, tax evasion, or other violations of this chapter,   Chapter 162, Tax Code, or Section 26.3574, Water Code, regardless   of whether the user holds a license.          (c)  The motor fuel stored at a motor fuel depot is presumed   to be purchased and stored for export if the motor fuel was   purchased tax-free for export or any of the motor fuel stored at the   motor fuel depot is subsequently exported.          Sec. 426.002.  MOTOR FUEL DEPOTS IN BORDER COUNTIES   PROHIBITED. (a) A person may not establish, operate, or assist in   the operation of a motor fuel depot located in a county that borders   the United Mexican States, regardless of whether the motor fuel   depot:                (1)  is located on public or private property; or                 (2)  is intended for permanent or temporary operation.          (b)  For purposes of Subsection (a), "assists in the   operation of a motor fuel depot" includes knowingly allowing a   motor fuel depot to operate on property owned or controlled by the   person.          Sec. 426.003.  CERTAIN CONDUCT RELATED TO MOTOR FUEL   TRANSPORTATION PROHIBITED. A person may not knowingly:                (1)  deliver motor fuel to a motor fuel depot located in   a county that borders the United Mexican States; or                (2)  transport motor fuel to or from a motor fuel depot   described by Subdivision (1) using an overweight vehicle that:                      (A)  exceeds the weight limitations provided by   law; and                      (B)  is not operating under a permit issued under   Subtitle E, Title 7, Transportation Code.          Sec. 426.004.  CRIMINAL PENALTIES. (a) A person commits an   offense if the person violates Section 426.002 or 426.003.          (b)  An offense under this section involving a violation of   Section 426.002 is a Class A misdemeanor, except that the offense   is:                (1)  a state jail felony if the actor has been   previously convicted one time of an offense punishable under this   subsection; or                (2)  a felony of the third degree if:                      (A)  the actor has been previously convicted two   or more times of an offense punishable under this subsection;                      (B)  the motor fuel depot is located within five   miles of an international bridge, port of entry, or border crossing   between this state and the United Mexican States; or                      (C)  it is shown on the trial of the offense that   the motor fuel depot is linked to environmental contamination or   organized criminal activity.          (c)  An offense under this section involving a violation of   Section 426.003 is a felony of the second degree.          Sec. 426.005.  INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The   attorney general may institute an action for injunctive relief to   restrain a violation of this chapter.          (b)  In addition to the injunctive relief provided by   Subsection (a), the attorney general may institute an action for a   civil penalty against a person who owns or controls property on   which a motor fuel depot is located if the person knowingly   established, operated, or assisted in the operation of the motor   fuel depot in violation of Section 426.002. A civil penalty   assessed under this subsection may not exceed $25,000 for each day   the motor fuel depot is operated in violation of Section 426.002.          Sec. 426.006.  DISCIPLINARY ACTION BY ISSUING REGULATORY   AGENCY. (a) A regulatory agency that issues a license or permit to   a person subject to this chapter may take disciplinary action   against the person if the agency determines the person has violated   this chapter.          (b)  For purposes of this section, a regulatory agency may   use the following as evidence of a violation of this chapter:                (1)  a final conviction for an offense under this   chapter;                (2)  a final administrative enforcement order by the   agency issued under this chapter or other applicable law; or                (3)  a civil judgment finding a violation of this   chapter or other related motor fuel tax or environmental law.          SECTION 2.03.  Article 59.01(2), Code of Criminal Procedure,   is amended to read as follows:                (2)  "Contraband" means property of any nature,   including real, personal, tangible, or intangible, that is:                      (A)  used in the commission of:                            (i)  any first or second degree felony under   the Penal Code;                            (ii)  any felony under Section 15.031(b),   21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal   Code;                            (iii)  any felony under Chapter 43, Penal   Code, except as provided by Paragraph (B);                            (iv)  any felony under The Securities Act   (Title 12, Government Code); or                            (v)  any offense under Chapter 49, Penal   Code, that is punishable as a felony of the third degree or state   jail felony, if the defendant has been previously convicted three   times of an offense under that chapter;                      (B)  used or intended to be used in the commission   of:                            (i)  any felony under Chapter 481, Health   and Safety Code (Texas Controlled Substances Act);                            (ii)  any felony under Chapter 483, Health   and Safety Code;                            (iii)  a felony under Chapter 152, Finance   Code;                            (iv)  any felony under Chapter 20A or 34,   Penal Code;                            (v)  a Class A misdemeanor under Subchapter   B, Chapter 365, Health and Safety Code, if the defendant has been   previously convicted twice of an offense under that subchapter;                            (vi)  any felony under Chapter 32, Human   Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that   involves a health care program, as defined by Section 35A.01, Penal   Code;                            (vii)  a Class B misdemeanor under Chapter   522, Business & Commerce Code;                            (viii)  a Class A misdemeanor under Section   306.051, Business & Commerce Code;                            (ix)  any offense under Section 42.10, Penal   Code;                            (x)  any offense under Section 46.06(a)(1)   or 46.14, Penal Code;                            (xi)  any offense under Chapter 71, Penal   Code;                            (xii)  any offense under Section 20.05,   20.06, 20.07, 43.04, or 43.05, Penal Code;                            (xiii)  an offense under Section 326.002,   Business & Commerce Code;                            (xiv)  any offense under Section 545.420,   Transportation Code; [or]                            (xv)  any offense punishable under Section   42.03(d) or (e), Penal Code; or                            (xvi)  any offense under Section 426.002,   Government Code;                      (C)  the proceeds gained from the commission of a   felony listed in Paragraph (A) or (B) of this subdivision, a   misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),   (xiv), or (xv) of this subdivision, or a crime of violence;                      (D)  acquired with proceeds gained from the   commission of a felony listed in Paragraph (A) or (B) of this   subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),   (xi), (xii), (xiv), or (xv) of this subdivision, or a crime of   violence;                      (E)  used to facilitate or intended to be used to   facilitate the commission of a felony under Section 15.031 or   Chapter 43, Penal Code; or                      (F)  used to facilitate or intended to be used to   facilitate the commission of an offense under Section 20.05, 20.06,   or 20.07 or Chapter 20A, Penal Code.   ARTICLE 3. MISCELLANEOUS PROVISIONS          SECTION 3.01.  Article 18B.202(a), Code of Criminal   Procedure, is amended to read as follows:          (a)  A district judge may issue an order for the installation   and use of a mobile tracking device only on the application of:                (1)  an authorized peace officer; or                (2)  a peace officer commissioned by the comptroller.          SECTION 3.02.  Subchapter G, Chapter 621, Transportation   Code, is amended by adding Section 621.512 to read as follows:          Sec. 621.512.  PROHIBITION ON OPERATING CERTAIN OVERWEIGHT   VEHICLES TRANSPORTING HAZARDOUS MATERIALS ON ROUTE OTHER THAN   DESIGNATED PERMIT ROUTE. (a)  A person commits an offense if the   person operates or moves an overweight vehicle described by   Subsection (a-1) on a public highway:                (1)  that is not included in the route designated under   the permit under which the vehicle is operating; or                (2)  without a permit authorizing the movement of the   vehicle, and the vehicle exceeds the maximum gross weight   authorized for the vehicle by at least five percent.          (a-1)  Subsection (a) applies only to an overweight vehicle   with at least three axles that is transporting in a cargo tank   hazardous materials in a quantity requiring placarding by a   regulation issued under the Hazardous Materials Transportation Act   (49 U.S.C. Section 5101 et seq.).          (b)  An offense under this section is a felony of the second   degree.          (c)  It is an affirmative defense to prosecution under this   section that, at the time of the offense, the vehicle was being   operated or moved:                (1)  under the immediate direction of a law enforcement   agency; or                (2)  in compliance with a permit authorizing the   movement of the vehicle issued by the department or a political   subdivision of this state.   ARTICLE 4. EFFECTIVE DATE          SECTION 4.01.  This Act takes effect September 1, 2025.