HB 316

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
positive
Property Rights
positive
Personal Responsibility
neutral
Limited Government
neutral
Individual Liberty
Digest
HB 316 creates a new second-degree felony offense for interfering with a motor fuel metering device or an unattended motor fuel payment terminal. The bill targets conduct commonly associated with fuel pump tampering and payment terminal fraud by prohibiting the intentional interception, disruption, or modification of fuel pumps or payment terminals, as well as the manufacture, possession, sale, or attempted sale of motor fuel manipulation devices. It also makes it a criminal offense to knowingly benefit from either the unlawful interference with these devices or the sale of manipulation equipment. The bill provides limited affirmative defenses for licensed service technicians, authorized employees of the Texas Department of Licensing and Regulation, and law enforcement officers acting within the scope of their official duties.

In addition to creating the new standalone offense, the bill amends the organized crime statute in Section 71.02, Penal Code, by adding the new offense to the list of predicate crimes that may support a charge of engaging in organized criminal activity. This allows prosecutors to pursue enhanced organized crime charges when fuel pump or payment terminal interference is committed as part of a criminal combination or street gang. By incorporating the offense into Texas' organized crime framework, the legislation is intended to address increasingly organized schemes involving fuel theft, payment card skimming, and related financial crimes.

The bill applies prospectively, meaning only offenses committed on or after its effective date are subject to the new law, while offenses committed before that date remain governed by existing law.
Author (1)
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal impact of HB 316 cannot be determined because there is insufficient data to estimate how frequently the conduct prohibited by the bill occurs or how many additional prosecutions would result from creating the new criminal offense.

The bill creates a new second-degree felony offense for interfering with a motor fuel metering device or unattended payment terminal and makes that offense eligible for prosecution as organized criminal activity when committed as part of a criminal enterprise. Because the bill establishes new felony penalties, it could increase demands on state correctional resources through additional prison commitments or community supervision placements. However, the LBB concluded that the magnitude of those impacts cannot be estimated with available data.

The Office of Court Administration anticipates that the bill would have no significant fiscal impact on the state court system. At the local level, the fiscal impact is likewise indeterminate, although counties could experience increased costs associated with jail populations, community supervision, and prosecution resulting from the creation of the new offense. Because the number of potential cases is unknown, the LBB did not estimate either state or local costs.

Vote Recommendation Notes

HB 316 creates a new second-degree felony offense targeting the intentional manipulation of motor fuel metering devices and unattended fuel payment terminals, conduct associated with organized fuel theft, payment card fraud, and related criminal enterprises. The bill also authorizes prosecutors to pursue organized criminal activity charges when these offenses are committed as part of a criminal combination or street gang. It is narrowly focused on criminal conduct and includes affirmative defenses for licensed service technicians, authorized Texas Department of Licensing and Regulation personnel, and law enforcement officers acting within the scope of their official duties, ensuring legitimate maintenance and enforcement activities are not criminalized.

From a limited-government perspective, the bill does modestly expand the scope of the criminal code by creating a new felony offense and adding it to the list of predicate offenses for organized criminal activity. However, it does not establish a new state agency, regulatory program, licensing requirement, or grant additional rulemaking authority. Instead, it relies on existing law enforcement, prosecutorial, and judicial structures to address a specific criminal scheme that existing statutes may not fully cover. As such, the growth in government authority is limited to criminal enforcement rather than administrative expansion.

The bill is also unlikely to materially increase the burden on taxpayers. The LBB concluded that the fiscal impact is indeterminate because there is insufficient data to estimate how often the new offense would be prosecuted. While additional felony prosecutions could modestly increase demands on correctional resources, the Office of Court Administration anticipates no significant fiscal impact on the state court system, and the bill does not require new appropriations or ongoing government programs.

Finally, the bill imposes no new regulatory burden on lawful individuals or businesses. It does not create new compliance obligations, reporting requirements, permits, inspections, or business regulations. Rather, it criminalizes intentional tampering with fuel pumps and payment terminals and the manufacture, possession, or sale of devices designed for that unlawful purpose. Legitimate fuel retailers, service companies, and technicians are expressly protected through statutory affirmative defenses.

Overall, although HB 316 modestly expands criminal enforcement authority, it does so in a targeted manner without creating new bureaucracy, materially increasing taxpayer obligations, or imposing additional regulatory burdens on legitimate businesses or individuals. Because it addresses a specific and organized form of fraud using existing governmental institutions, Texas Policy Research recommends that lawmakers vote YES on HB 316.

  • Individual Liberty: The bill creates new criminal penalties, expanding the state's authority to prosecute specific conduct. However, it is narrowly targeted at intentional fraud and theft involving motor fuel metering devices and payment terminals rather than restricting otherwise lawful behavior. It also includes affirmative defenses for authorized technicians, regulators, and law enforcement to protect legitimate activities.
  • Personal Responsibility: The bill reinforces personal accountability by imposing significant criminal consequences on individuals who intentionally tamper with fuel pumps or payment terminals or manufacture and distribute devices used to facilitate fuel theft. It places responsibility on offenders rather than shifting costs or obligations to taxpayers or businesses.
  • Free Enterprise: Fuel theft and payment terminal manipulation impose direct costs on fuel retailers and distort the marketplace by allowing criminals to obtain fuel unlawfully. By targeting these criminal schemes without imposing new regulations or compliance requirements on legitimate businesses, the bill helps protect lawful commerce and fair competition.
  • Private Property Rights: The bill strengthens protections for private property by deterring theft of motor fuel and damage or interference with privately owned fuel dispensing equipment and payment terminals. It provides additional legal tools to protect business owners from property-related crimes.
  • Limited Government: The bill modestly expands the criminal code by creating a new felony offense and adding it as a predicate offense for organized criminal activity. However, it does not create a new agency, regulatory program, licensing requirement, or rulemaking authority, and it relies on existing law enforcement and judicial institutions. While enforcement responsibilities may increase slightly, the bill does not materially expand the administrative size or scope of government.
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