TITLE 16. ECONOMIC REGULATION

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 97. MOTOR FUEL METERING AND QUALITY

The Texas Department of Licensing and Regulation (Department) proposes the repeal of an existing rule at 16 Texas Administrative Code (TAC), Chapter 97, Subchapter A, §97.1, new rules at Subchapter A, §97.1; Subchapter B, §97.32; Subchapter C, §97.44 and §97.45; and Subchapter D, §97.61, and amendments to existing rules at Subchapter A, §97.2 and §97.3; Subchapter B, §97.29 and §97.30; Subchapter C, §§97.40, 97.42, 97.43; Subchapter D, §97.58 and §97.59; and Subchapter E, §97.71, regarding the Motor Fuel Metering and Quality program. These proposed changes are referred to as "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 97 implement Texas Occupations Code Chapter 2310, Texas Business and Commerce Code, Chapters 607, 607A, and Texas Government Code Chapter 426.

The proposed rules are necessary to implement Senate Bill (SB) 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and House Bill (HB) 4690, 89th Legislature, Regular Session (2025), which amend state law regarding motor fuel quality and testing standards, stop-sale orders, and skimmer reporting requirements for service technicians.

SECTION-BY-SECTION SUMMARY

The proposed rules repeal existing §97.1, Authority. The provisions in this repealed rule have been updated and supplemented under new §97.1, Authority.

The proposed rules add new §97.1, Authority. This new rule includes provisions from existing §97.1, which is being repealed, and updates and supplements the existing authority by adding Texas Business and Commerce Code Chapter 607A and Texas Government Code Chapter 426, to the list of applicable statutes authorizing the rules under Chapter 97.

The proposed rules amend §97.2, Definitions, by adding a definition for "Center"; amending the definitions for "Device," "Operator," and "Test standard" to remove references to "weighing" and "weight"; amending the definition for "Tamper-evident security" to correct punctuation; adding a definition for "Electronic terminal;" amending the definition for "Skimmer" to reference newly passed legislation, and renumbering the remaining provisions accordingly.

The proposed rules amend §97.3, Adoption of Standards by Reference, by removing and adding standards adopted by reference to bring the rules in line with the requirements of HB 4690; noting statutory exceptions to motor fuel quality standards; adopting standards for the collecting, sampling, and handling of motor fuel; and renumbering sections accordingly.

The proposed rules amend §97.29, Detection and Reporting of Skimmers, by removing the term "Payment Card" from the section title so that it reads "Detection and Reporting of Skimmers." The proposed rules also clarify that the section applies to skimmers on or in devices as defined by the proposed rules.

The proposed rules amend §97.30, Unauthorized Removal of Skimmers Prohibited, to clarify that the section applies to skimmers on or in devices as defined by the proposed rules.

The proposed rules add new §97.32, Device Specifications and Tolerances, to set the specifications and tolerances for devices under these proposed rules to be the same as the most recently adopted National Institute of Standards and Technology (NIST) standards, as required by HB 4690.

The proposed rules amend §97.40, Distributor, Supplier, Wholesaler--Certificate of Compliance, by removing the term "Jobber" from the section title so that it reads "Distributor, Supplier, Wholesaler--Certificate of Compliance" and removing the term "jobber" from the rule text.

The proposed rules amend §97.42, Stop-Sale Order; Appeal; Remediation, by revising the section title from "Stop-Sale Order" to "Stop-Sale Order; Appeal; Remediation"; amending subsection (a) to allow the Department, with the approval of the executive director, to issue a stop-sale order; amending subsection (b) to include offering to sell motor fuel as an act prohibited by a stop-sale order and to clarify that a stop-sale order is lifted if a dealer or operator prevails in an appeal of the order; and adding new subsection (c) to clarify the process for issuance of a remediation plan to violators following a stop-sale order and to explain the factors the Department may consider when lifting a stop-sale order.

The proposed rules amend §97.43, Fuel Delivery Records, to remove the term "jobbers" from the rule text.

The proposed rules add new §97.44, Methods and Procedures for Collecting, Sampling, and Handling Motor Fuel. The proposed new rule requires the Department or an authorized representative of the Department to collect, sample, and handle motor fuel following the methods and procedures set out in the applicable standards as prescribed under new §97.3(5) and subject to the needs of the Department.

The proposed rules add new §97.45, Methods and Procedures for Testing Motor Fuel Quality. The proposed new rule requires the Department or an authorized representative of the Department to test motor fuel according to the applicable standards as prescribed by §97.3(2).

The proposed rules amend §97.58, Test Standards and Laboratories, by revising the section title from "Test Standards" to "Test Standards and Laboratories"; and adding new subsection (d) to provide that a metrology laboratory certified by the NIST is approved by the Department to inspect and correct the standards for motor fuel used to perform device maintenance activities.

The proposed rules amend §97.59, Inspection for Skimmers, by removing the term "Payment Card" from the section title so that it reads "Inspection for Skimmers."

The proposed rules add new §97.61, Reporting Skimmers on Electronic Terminals. The proposed new rule requires service technicians, or the service company that employs them, to notify owners or operators of the presence of skimmers on electronic terminals and report the skimmer to the Financial Crimes Intelligence Center (FCIC).

The proposed rules amend §97.71, Distributor, Wholesaler, and Supplier Fees, by removing the term "jobber" from the section title so that it reads "Distributor, Wholesaler, and Supplier Fees"; removing the term "jobber" from the rule text; and renumbering the remaining provisions accordingly.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Senior Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rules.

Mr. Couvillon has determined that for each year of the first five years the proposed rules are in effect, there is no estimated increase or loss in revenue to local government, and no estimated increase in revenue to state government as a result of enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Because Mr. Couvillon has determined that the proposed rules will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFITS

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be that TDLR standards are aligned with industry standards for motor fuel quantity, quality, and testing practices; ensuring that fuel quality standards remain high and contaminated fuel can be quickly remediated; removing general references to standards and replacing them with specific standards; enhancing FCIC's ability to track and fight financial crimes by requiring service technicians to report skimmers on electronic terminals; clarifying the stop sale remediation process for licensees.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rules do not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rules require an increase or decrease in fees paid to the agency. The proposed rules require a decrease in fees paid to the agency by eliminating the jobber certificate of compliance.

5. The proposed rules create a new regulation. The proposed rules create a new regulation by creating exceptions to motor fuel quality standards; adding motor fuel collecting, sampling, handling, and testing standards and procedures, and device specifications and tolerances; and authorizing the provision of a remediation plan for a device or fuel subject to a stop-sale order.

6. The proposed rules expand, limit, or repeal an existing regulation. The proposed rules expand an existing regulation by stating a metrology laboratory certified by NIST is also approved by TDLR. The proposed rules repeal an existing regulation by eliminating the jobber certificate of compliance.

7. The proposed rules do not increase or decrease the number of individuals subject to the rules' applicability.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department is requesting public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rules. Please do not submit copyrighted, confidential, or proprietary information.

Comments on the proposed rules and responses to the request for information may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/FMQ_Rule_Making; by facsimile to (512) 475-3032; or by mail to Shamica Mason, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §97.1

STATUTORY AUTHORITY

The proposed repeal is proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed repeal are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed repeal.

The legislation that enacted the statutory authority under which the proposed repeal is proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.1. Authority.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600482

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750


16 TAC §§97.1 - 97.3

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.1. Authority.

This chapter is promulgated under the authority of Texas Occupations Code Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

§97.2. Definitions.

The following words and terms, when used in this chapter must have the following meanings, unless the context clearly indicates otherwise.

(1) ASTM--ASTM International; the national voluntary consensus standards organization formed for the development of standards on characteristics and performance of materials, products, systems and services and the promotion of related knowledge.

(2) Center--The Financial Crimes Intelligence Center established under Texas Government Code Chapter 426.

(3) [(2)] Code--The Texas Occupations Code, Chapter 2310, ["]Motor Fuel Metering and Quality.["]

(4) [(3)] Commission--Texas Commission of Licensing and Regulation.

(5) [(4)] Controlling person--An [an] individual who:

(A) is a sole proprietor;

(B) is a general partner of a partnership;

(C) is a controlling person of a business entity that is a general partner of a partnership;

(D) possesses direct or indirect control of at least 25 percent of the voting securities of a corporation;

(E) is the president, the secretary, or a director of a corporation; or

(F) possesses the authority to set policy or direct the management of a business entity.

(6) [(5)] Department--Texas Department of Licensing and Regulation.

(7) [(6)] Device--A [commercial weighing or measuring device used for motor fuel sales, also defined as a] motor fuel metering device as defined by §2310.001(7) of the Code.

(8) [(7)] Device performance review (DPR)--The comprehensive inspection and testing of a motor fuel metering device to ensure it is calibrated and operating according to NIST and Manufacturer specifications.

(9) Electronic terminal--This term has the meaning assigned by Texas Business and Commerce Code §607A.001 and does not include motor fuel metering devices as defined by §2310.001 of the Code or motor fuel unattended payment terminals as defined by Texas Business and Commerce Code §607.001.

(10) [(8)] Gasoline--A liquid or combination of liquids blended together, offered for sale, sold, used, or capable of use as fuel for a gasoline-powered engine. The term includes gasohol, aviation gasoline, and blending agents, but does not include compressed natural gas, liquefied natural gas, racing gasoline, diesel fuel, aviation jet fuel, or liquefied gas, as defined in §162.001(29) of the Texas Tax Code.

(11) [(9)] GPM--Gallons per minute.

(12) [(10)] ISO--International Organization for Standardization; an independent, non-governmental organization that develops voluntary international standards to facilitate world trade by providing common standards among nations.

(13) [(11)] Merchant--A person whose business includes the sale of motor fuel through motor fuel metering devices, as defined by §607.001(4) of the Texas Business and Commerce Code.

(14) [(12)] Motor fuel--Gasoline, diesel fuel, gasoline blended fuel, compressed natural gas, liquefied natural gas, and other products that are offered for sale, sold, used, or capable of use as fuel for a gasoline-powered engine or a diesel-powered engine, as defined in §162.001(42) of the Texas Tax Code.

(15) [(13)] NIST--The National Institute of Standards and Technology; a non-regulatory federal agency under the United States Department of Commerce, which certifies and provides standard reference materials used to perform instrument calibrations, verifies the accuracy of specific measurements and supports the development of new measurement methods.

(16) [(14)] Operator--A person in possession or control of a [weighing or] measuring device, as defined in § 2310.001(8) of the Code.

(17) [(15)] Skimmer--A wire or electronic device that is capable of unlawfully intercepting electronic communications or data to perpetrate fraud, as defined by §607.001(8) and 607A.001(11) of the Texas Business and Commerce Code.

(18) [(16)] Tamper-evident securitylabel--A [label""A] label or tape that, once applied to a surface, cannot be removed without self-destructing, or otherwise leaving a clear indication that the label or tape has been removed.

(19) [(17)] Test standard--A certified [weight or] measure used to test a device for accuracy.

§97.3. Adoption of Standards by Reference.

In accordance with [Chapter 2310 of] the Code, the department adopts the currently published edition of each of the following nationally recognized minimum standards with certain exceptions for the purpose of administering and enforcing this chapter:

(1) Legal standards for [weights and] measures. NIST Handbook 44, "Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices."

(2) Motor fuel quality [testing] standards.

(A) ASTM D4814, "Standard Specification for Automotive Spark-Ignition Engine Fuel," as the standard specifications for gasoline or gasoline blended with ethanol;

[(A) NIST Handbook 130, "Uniform Laws and Regulations in the Areas of Legal Metrology and Fuel Quality," relating to "Uniform Fuels and Automotive Lubricants Regulations," as standard specifications for ethanol blends with the following modifications:]

[(i) vapor pressure tolerance not exceeding one pound per square inch for motor fuels blended with up to 15 volume percent ethanol, excluding the time period from May 1 through October 1 for counties required to have low emissions fuels;]

[(ii) vapor pressure seasonal specifications may be extended for a maximum period of 15 days to allow for the disbursement of old stocks. However, new stocks of a higher volatility classification must not be offered for retail sale prior to the effective date of the higher volatility classification; and]

[(iii) the vapor/liquid ratio specification must be waived for motor fuels blended with ethanol.]

[(B) ASTM D4814, "Standard Specification for Automotive Spark-Ignition Engine Fuel," as the standard specifications for gasoline with the following modification, vapor pressure and vapor/liquid ratio seasonal specifications may be extended for a maximum period of 15 days to allow for the disbursement of old stocks. However, new stocks of a higher volatility classification must not be offered for retail sale prior to the effective date of the higher volatility classification.]

(B) [(C)] ASTM D975, "Standard Specification for Diesel Fuel," as the standard specifications for diesel motor fuels and renewable diesel fuels;

(C) [(D)] ASTM D5798, "Standard Specification for Ethanol Fuel Blends for Flexible-Fuel Automotive Spark-Ignition Engines," as the standard specifications for 51 volume percent to 83 volume percent ethanol fuel;

(D) [(E)] ASTM D6751, "Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels;"

(E) [(F)] ASTM D7467, "Standard Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20);" and

(F) [(G)] ASTM D7794, "Standard Practice for Blending Mid-Level Ethanol Fuel Blends for Flexible Fuel Vehicles with Automotive Spark-Ignition Engines," as the standard specification for gasoline ethanol blends containing 16 to 50 volume percent ethanol.

(3) Exceptions to motor fuel quality standards. Exceptions to motor fuel quality standards shall be those set out by §2310.2031 of the Code.

(4) [(3)] Automotive Fuel Rating. The testing methods, standards, and specifications used to determine the automotive fuel rating shall be those prescribed by the most current editions of:

(A) ASTM D2699, "Standard Test Method for Research Octane Number of Spark-Ignition Engine Fuel;"

(B) ASTM D2700, "Standard Test Method for Motor Octane Number of Spark-Ignition Engine Fuel;"

(C) ASTM D2885 "Standard Test Method for Determination of Octane Number of Spark-Ignition Engine Fuels by On-Line Direct Comparison Technique;" and

(D) ASTM D5599, "Standard Test Method for Determination of Oxygenates in Gasoline by Gas Chromatography and Oxygen Selective Flame Ionization Detection."

(5) Collecting, sampling, and handling motor fuel. The standards for collecting, sampling, and handling motor fuel shall be those prescribed by the most current edition of:

(A) ASTM D4057, "Standard Practice for Manual Sampling of Petroleum and Petroleum Products;"

(B) ASTM D5842, "Standard Practice for Sampling and Handling of Fuels for Volatility Measurement;" and

(C) ASTM D5854, "Standard Practice for Mixing and Handling of Liquid Samples of Petroleum and Petroleum Products."

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600483

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER B. MOTOR FUEL METERING DEVICES

16 TAC §§97.29, 97.30, 97.32

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.29. Detection and Reporting of [Payment Card] Skimmers.

(a) An owner or operator who discovers or is notified of the presence of a skimmer on or in a device by a service technician or employee must:

(1) immediately make a report to local law enforcement that a skimmer has been discovered and is still installed in the device;

(2) notify the department within 24 hours of the discovery on a form prescribed by the department;

(3) request the law enforcement report or case number and submit it in a manner prescribed by the department; and

(4) place each affected device out of service and block access to the dispenser to prevent tampering with evidence until the skimmer has been removed as authorized under this chapter.

(b) The owner or operator must cooperate with law enforcement, the department, and the Center in the investigation of a suspected or discovered skimmer.

(c) The owner or operator must provide a copy of available photographic and/or video surveillance of the retail facility to law enforcement.

§97.30. Unauthorized Removal of Skimmers Prohibited.

(a) In order to preserve evidence and the chain of custody, an owner or operator, retail facility employee, or unlicensed service technician is prohibited from removing a skimmer from a device unless instructed to do so by law enforcement or the department.

(b) If neither law enforcement nor the department has arrived to remove a skimmer from a device within 48 hours after the owner or operator has notified the department as required by §97.29(a)(2), the skimmer may be removed in accordance with subsection (c).

(c) When removing a skimmer under this section, an individual must:

(1) wear sterile gloves while removing the skimmer(s);

(2) place each skimmer in a clear plastic bag, seal the bag, and label the sealed bag with the date and time the skimmer was removed and bagged, along with the initials of the person removing the skimmer; and

(3) transfer the skimmer(s) to local law enforcement and request the law enforcement case or report number.

(d) The owner or operator must provide the law enforcement case or report number to the department in a manner prescribed by the department following transfer of the skimmer to law enforcement.

§97.32. Device Specifications and Tolerances.

Specifications and tolerances for devices under this chapter shall be the same as the most recently adopted NIST standards at the time the device is used.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600484

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER C. SALE, DELIVERY, AND QUALITY OF MOTOR FUEL

16 TAC §§97.40, 97.42 - 97.45

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.40. Distributor, [Jobber,] Supplier, Wholesaler--Certificate of Compliance.

(a) To be eligible for a certificate of compliance, a distributor, [jobber,] supplier, or wholesaler must:

(1) submit complete business, facility, and contact information in a manner prescribed by the department; and

(2) pay the fee required under §97.71.

(b) A change in the name or contact information of the owner or operator must be submitted to the department within 30 calendar days.

(c) A certificate of compliance is valid for two years from the date of issuance by the department.

§97.42. Stop-Sale Order; Appeal; Remediation.

(a) The [executive director of the] department, with the approval of the executive director, may issue an order to stop sale of:

(1) motor fuel sold or offered for sale in violation of this chapter; or

(2) motor fuel sold or offered for sale by or through a device that is in violation of this chapter.

(b) Motor fuel subject to a stop-sale order may not be sold or offered for sale until: [the order has been discharged by a court pursuant to §2310.060 of the Code, or]

(1) the [executive director receives notice acceptable to the] department finds that the motor fuel or device is in compliance with this chapter; or[.]

(2) the dealer or operator prevails in an appeal of the department's order as prescribed by §2310.060 of the Code.

(c) Following the issuance of a stop-sale order under subsection (a), the department may provide a license holder with a remediation plan that contains suggested measures to cure violations. To make a finding that the motor fuel or device is in compliance with this chapter under subsection (b)(1), the department may consider the license holder's compliance with any provided remediation plan. The department may evaluate evidence of remediation provided by the license holder or request additional information. The department or an authorized representative may conduct additional testing to verify the motor fuel or device is in compliance with this chapter.

§97.43. Fuel Delivery Records.

(a) Dealers, distributors, [jobbers,] suppliers, and wholesalers must keep the following records for four years:

(1) all invoices, receipts, or other transmittal records of the purchase, sale, delivery, or distribution of motor fuel; and

(2) any record or other document related to the sampling and testing of motor fuel purchased, sold, delivered, or distributed.

(b) All delivery tickets and letters of certification related to automotive fuel rating must be maintained by dealers, distributors, [jobbers,] suppliers, and wholesalers for one year.

(c) All records required to be maintained shall be made available upon request by the department or an authorized representative of the department.

§97.44. Methods and Procedures for Collecting, Sampling, and Handling Motor Fuel.

(a) The department or an authorized representative of the department shall collect, sample, and handle motor fuel following the methods and procedures set out in the applicable ASTM standards as prescribed under §97.3(5) and subject to the needs of the department.

(b) These procedures are used in conjunction with the stop-sale order requirements under §2310.060 of the Code and §97.42 of this chapter.

§97.45. Methods and Procedures for Testing Motor Fuel Quality.

(a) The department or an authorized 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 as prescribed under the most recently adopted or amended ASTM standard on the date of the test.

(b) The department or the authorized representative of the department will follow the methods and procedures set out in the applicable standards as prescribed under §97.3(2).

(c) These procedures are used in conjunction with the motor fuel quality testing requirements established by section 2310.203 of the Code.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600485

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER D. SERVICE COMPANIES AND SERVICE TECHNICIANS

16 TAC §§97.58, 97.59, 97.61

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.58. Test Standards and Laboratories.

(a) Test standards must be certified annually by a recognized or accredited laboratory that adheres to ISO 17025 standards. A service company must maintain at least one test standard per licensed device category as follows:

(1) Low flow: five-gallon or greater test measure or prover;

(2) High flow: prover with a capacity that exceeds the amount of liquid delivered by the device in one minute at the maximum flow rate.

(b) A test standard that becomes damaged must be taken out of operation immediately and recalibrated prior to use. A test standard that is beyond repair must be taken out of service permanently.

(c) A service company must maintain the minimum test standards per licensed device category at all times.

(d) For purposes of §2310.106(f) of the Code, a metrology laboratory certified by the National Institute of Standards and Technology is approved by the department.

§97.59. Inspection for [Payment Card] Skimmers.

(a) A service technician must inspect for the presence of a skimmer:

(1) during a device performance review; and

(2) each time a motor fuel dispenser is opened to perform device maintenance activities.

(b) A service technician or the service company that employs the technician must report the finding of a skimmer:

(1) immediately to the owner or operator; and

(2) within 24 hours to the department on a form prescribed by the department.

(c) In order to preserve evidence and the chain of custody, a service technician must not remove a skimmer unless instructed by law enforcement or the department.

(d) If neither law enforcement nor the department has arrived to remove a skimmer within 48 hours after the owner or operator has notified the department as required by §97.29, the skimmer may be removed in accordance with subsection (e).

(e) When removing a skimmer under this section, an individual must:

(1) wear sterile gloves while removing the skimmer(s);

(2) place each skimmer in a clear plastic bag, seal the bag, and label the sealed bag with the date and time the skimmer was removed and bagged, along with the initials of the person removing the skimmer; and

(3) transfer the skimmer(s) to local law enforcement and request the law enforcement case or report number.

(f) The service technician must provide the law enforcement case or report number to the department in a manner prescribed by the department following transfer of the skimmer to law enforcement.

§97.61. Reporting Skimmers On Electronic Terminals.

If a service technician discovers a skimmer in or on an electronic terminal, the service technician or service company that employs the technician shall notify the owner or operator of the presence of a skimmer and report the skimmer to the Center using the secure portal on its website, https://fcic.texas.gov.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600486

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER E. FEES

16 TAC §97.71

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

§97.71. Distributor, [Jobber,] Wholesaler, and Supplier Fees.

(a) Certificate of Compliance Fees:

(1) Distributor--$80.

[(2) Jobber--$80.]

(2) [(3)] Wholesaler--$80.

(3) [(4)] Supplier--$2600.

(b) Late fees do not apply to this section.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 2, 2026.

TRD-202600487

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: March 15, 2026

For further information, please call: (512) 463-7750