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80C400(2) MCK

CONFORMING AMENDMENT.

Title 2, Agriculture Code, is amended by adding

Chapter 17 to read as follows:

CHAPTER 17.

SALE AND REGULATION OF CERTAIN FUEL MIXTURES

SUBCHAPTER A.

GENERAL PROVISIONS

Revised Law

DEFINITIONS.

In this chapter:

"Automotive fuel rating" has the meaning assigned by 15 U.S.C.

Section 2821.

"Dealer" means a person who:

is the operator of a service station or other retail outlet; and

delivers motor fuel into the fuel tanks of motor vehicles or motor boats.

"Distributor" has the meaning assigned by

Section 162.001, Tax Code.

"Jobber" means a person who purchases tax-paid gasoline for resale or distribution at wholesale.

"Motor fuel" has the meaning assigned by

Section 162.001, Tax Code.

"Supplier" has the meaning assigned by

Section 162.001, Tax Code.

"Wholesaler" means a person who purchases tax-paid gasoline for resale or distribution at wholesale.

(V.A.C.S. Art. 8614, Secs. 1, 3B (part), 4(a) (part).)

Source Law

In this Act:

"Automotive fuel rating" has the meaning assigned by 15 U.S.C.

Section 2821.

"Dealer" means a person who is the operator of a service station or other retail outlet and who delivers motor fuel into the fuel tanks of motor vehicles or motor boats.

"Motor fuel" has the meaning given that term by

Section 153.001, Tax Code.

A distributor or supplier of motor fuel, as those persons are defined by

Section 153.001, Tax Code,

A distributor, supplier, wholesaler, or jobber of motor fuel, as those persons are defined by

Section 153.001, Tax Code,

Revisor's Note

Section 1, V.A.C.S.

Article 8614, provides that "motor fuel" has the meaning given by

Section 153.001, Tax Code.

Sections 3B and 4(a), V.A.C.S.

Article 8614, refer to "[a] distributor [or] supplier

as those persons are defined by

Section 153.001, Tax Code."

In 2003, the legislature enacted

Chapter 199, Acts of the 78th Legislature, Regular Session, which added

Chapter 162, Tax Code, repealed

Chapter 153, Tax Code, and provided that a reference in law to

Chapter 153, Tax Code, means

Chapter 162, Tax Code.

The

definitions for

Chapter 162 are in

Section 162.001, Tax Code.

For that reason, the revised law substitutes a reference to

Section 162.001, Tax Code, for the reference to

Section 153.001, Tax Code, in the

definitions of "motor fuel," "distributor," and "supplier."

Section 4(a), V.A.C.S.

Article 8614, refers to "[a] wholesaler [or] jobber of motor fuel, as those persons are defined by

Section 153.001, Tax Code."

Section 4(

a) was added to V.A.C.S.

Article 8614 by

Chapter 1033, Acts of the 71st Legislature, Regular Session, 1989.

During the same legislative session, the definition of "wholesaler or jobber" in

Section 153.001(25), Tax Code, was repealed by

Chapter 168, Acts of the 71st Legislature, Regular Session, 1989.

Before the repeal of that provision,

Section 153.001(25) defined "wholesaler or jobber" as "a person who purchases tax-paid gasoline for resale or distribution at wholesale."

It is clear that the legislature intended to refer to those persons in

Section 4(a),

Article 8614.

For that reason, the revised law uses the definition of "wholesaler or jobber" as that definition existed before its repeal by

Chapter 168.

[Sections 17.002-17.050 reserved for expansion]

SUBCHAPTER B.

SALE OR DELIVERY OF MOTOR FUEL

Revised Law

NOTICE OF SALE OF ALCOHOL AND FUEL MIXTURE.

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).

A sign required by Subsection (

a) must:

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;

state "Contains Ethanol" or "Contains Methanol," as applicable;

appear in contrasting colors with block letters at least one-half inch high and one-fourth inch wide; and

be displayed in a clear, conspicuous, and prominent manner, visible to customers using either side of the pump.

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.

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

the percentage of ethanol contained in motor fuel being sold;

the percentage of methanol contained in motor fuel being sold; and

if the motor fuel contains methanol, the types and percentages of associated cosolvents contained in the motor fuel being sold.

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.

(V.A.C.S. Art. 8614, Secs. 3, 4(b).)

Source Law

A motor fuel dealer in this state may not sell or offer for sale any motor fuel from a motor fuel pump that is supplied by a storage tank into which motor fuel containing ethanol in a mixture in which one percent or more of the mixture measured by volume is ethanol or into which motor fuel containing methanol in a mixture in which one percent or more of the mixture measured by volume is methanol has been delivered within the 60-day period preceding the day 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 the requirements of Subsection (

b) of this section.

The sign required under Subsection (

a) of this

section must 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.

The sign must state "Contains Ethanol" or "Contains Methanol," as applicable.

The sign must appear in contrasting colors with block letters at least one-half inch in height and one-fourth inch in width and shall be displayed in a clear, conspicuous, and prominent manner, visible to customers using either side of the pump.

In addition to the requirements of Subsection (b)(1) of this section, if a motor fuel pump is supplied by a storage tank into which motor fuel containing 10 percent or more ethanol by volume or five percent or more methanol by volume has been delivered within the 60-day period preceding the day of the sale or offer of sale, the sign shall 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 within the 60-day period.

This subsection does not prohibit the posting of other alcohol or additive information, the information and posting being subject to regulations by the commissioner of agriculture.

On the request of any motor fuel user, a dealer must reveal the percentage of ethanol contained in motor fuel being sold, the percentage of methanol contained in motor fuel being sold, and, if the motor fuel contains methanol, the types and percentages of associated cosolvents contained in the motor fuel being sold.

Revisor's Note

Section 3, V.A.C.S.

Article 8614, refers to "a motor fuel dealer."

Throughout this chapter, the revised law substitutes the defined term "dealer" for "motor fuel dealer" because it is clear from the context that the legislature intended to use the defined term.

Revised Law

DOCUMENTATION OF MOTOR FUEL MIXTURE SALES.

Except as provided by Subsection (b), a distributor, supplier, wholesaler, or jobber of mo