According to the Legislative Budget Board (LBB), SB 2949 is not expected to have a significant fiscal impact on the state budget. While the bill authorizes both civil and criminal penalties—including a civil penalty of up to $25,000 for noncompliance with fuel transportation licensing requirements and daily penalties for unauthorized depot operations—the frequency of such violations is presumed to be low enough that any resulting revenue would be minimal or inconsistent. As such, the bill’s provisions are not anticipated to generate substantial revenue or incur major costs at the state level.

The bill includes several regulatory enhancements that could generate fines and involve enforcement activity, such as prohibiting certain motor fuel depot siting in border counties, enforcing route compliance for hazardous material transport, and establishing new licensing and reporting obligations. However, the LBB notes that the fiscal impact of such provisions would be contingent upon the number of violations and subsequent prosecutions. Any increase in court costs or enforcement resources is expected to be absorbable within existing capacities.

For local governments, including municipalities that may gain authority to restrict motor fuel depot locations, the LBB also anticipates no significant fiscal impact. Although enforcement, prosecution, or detention related to violations could result in some additional operational burden for local law enforcement and judicial systems, these are considered minor and manageable within existing resources.

In summary, SB 2949 is structured to improve regulatory oversight and public safety related to motor fuel transport and depot operations without placing a substantial financial burden on state or local governments. Its fiscal effects are expected to be limited and primarily dependent on the scope of enforcement and the number of violations encountered.

While SB 2949 is grounded in a legitimate public safety and economic security concern, its current form substantially increases the power and reach of state government without offering sufficient procedural safeguards or narrowly tailored standards. The legislation introduces sweeping authority for the Texas Comptroller to suspend licenses without prior notice or hearing, representing a notable due process concern. It also imposes a blanket prohibition on motor fuel depots operating in border counties, irrespective of their individual compliance status, zoning alignment, or safety record. This one-size-fits-all restriction risks encroaching on legitimate private property use and imposes burdens on lawful businesses that are not linked to illicit activity.

Additionally, the bill creates new civil penalties of up to $25,000 per day and establishes new felony-level criminal offenses for various violations, such as unauthorized overweight transport and falsifying shipping documents. The enforcement mechanisms, while aiming to disrupt illicit networks, contain language that is broad and subject to inconsistent application—especially where terms like "assisting in the operation" of a depot or “falsifying” transport records are concerned. These provisions may unintentionally penalize peripheral actors and small businesses operating in legal gray zones, adding to the regulatory uncertainty.

Despite these concerns, the underlying intent of the bill—to deter fuel smuggling, protect infrastructure, and reduce public safety risks—is reasonable and important. Therefore, with substantive amendments, the bill could be recalibrated to better align with the liberty principles of due process, limited government, and private property rights. Recommended amendments should include protections such as administrative hearings prior to license suspension, a narrowly tailored approach to regulating depot operations, and clear enforcement criteria for criminal and civil penalties.

Suggested Amendments:

• Due Process Protection for License Suspension: Amend Section 162.006 of the Tax Code to require that notice and an opportunity for a hearing be provided before the Comptroller may suspend a motor fuel transporter's license. This protects individual liberty and limited government by ensuring that license holders are not penalized without the ability to defend themselves or correct errors.
• Create an Exemption or Variance Process for Motor Fuel Depots: Amend Section 426.002, Government Code, to allow for a variance or exemption process for motor fuel depots in border counties, administered through a permitting authority or regulatory board, based on compliance with safety, tax, and environmental standards. This safeguards private property rights and free enterprise by allowing lawful, compliant businesses to operate, rather than imposing a blanket ban.
• Clarify “Assisting in the Operation” Language: Revise Section 426.002(b) to clarify that a person may only be found to be “assisting in the operation” of a motor fuel depot if they knowingly and materially participate in the business operations in violation of the law. This prevents the unintentional criminalization of passive actors (e.g., landlords, contractors) and protects individual liberty.
• Add Safe Harbor for Good-Faith Actors: Create a new section providing a safe harbor defense for individuals or companies that demonstrate good-faith efforts to comply with fuel transportation laws and who promptly correct violations upon notice. Encourages compliance and prevents over-penalizing well-intentioned actors, aligning with the principle of personal responsibility.
• Add Clear Criteria for Civil Penalty Assessment: Amend Section 426.005 to require that the Attorney General or enforcing agency consider intent, degree of harm, and history of violations when assessing civil penalties, and provide a right to appeal penalty assessments. Introduces regulatory balance and protects against arbitrary fines, supporting limited government.
• Target the Depot Ban More Narrowly: Instead of banning all motor fuel depots in border counties, amend the bill to prohibit Depots within a specific radius of ports of entry (e.g., 2 miles), and Depots found to be in violation of hazardous materials, tax, or export laws. A more targeted prohibition protects public safety while minimizing the burden on lawful businesses and property owners.
• Establish Legislative Sunset or Review Clause: Include a sunset provision or require a legislative review of the statute after a defined period (e.g., 4 years) to assess effectiveness and unintended consequences. This provides an accountability mechanism to ensure the law remains necessary and appropriately tailored, reinforcing limited government oversight.
• Strengthen Data and Privacy Protections: If mobile tracking devices or enhanced documentation are required, include language ensuring that collected data is used solely for compliance and enforcement purposes and protected under privacy law. Maintains individual liberty by limiting potential misuse of sensitive transportation data.

In conclusion, SB 2949 advances a compelling policy objective but does so through overbroad statutory mechanisms that risk excessive government overreach and erosion of constitutional protections. As such, Texas Policy Research recommends that lawmakers vote NO on SB 2949 unless amended as described above to protect due process and support limited government and private property rights.

• Individual Liberty: The bill grants broad new powers to state authorities—most notably the Texas Comptroller—to suspend motor fuel transporter licenses without prior notice or a hearing. This administrative action bypasses due process protections that are foundational to individual liberty. Additionally, individuals involved in fuel logistics may face steep fines and criminal charges, even when acting in good faith, due to the bill's broad and sometimes vague definitions (e.g., “assisting in the operation” of a depot). These provisions risk subjecting law-abiding individuals to government overreach.
• Personal Responsibility: The bill reinforces personal responsibility by requiring motor fuel transporters and their contractors to obtain proper hazardous materials licenses. It also places responsibility on fuel carriers and depot operators to comply with safety standards, documentation rules, and export procedures. This is in line with the principle that individuals and businesses should be accountable for complying with laws that protect public safety and market integrity.
• Free Enterprise: The bill imposes a substantial regulatory burden on fuel transporters, depot operators, and associated industries. It bans the operation of any motor fuel depot in Texas border counties, regardless of whether the business is complying with safety, tax, or environmental laws. This blanket restriction limits the ability of lawful businesses to enter or remain in the market and discourages investment in logistics infrastructure along the border. The threat of daily civil penalties of up to $25,000 adds further risk and uncertainty for operators, especially smaller or independent businesses.
• Private Property Rights: The prohibition on operating a motor fuel depot in a border county—even on privately owned land—constitutes a direct restriction on how property owners may use their land. There is no provision for exemption, variance, or appeal, which undermines the principle that property should be used freely unless demonstrably harmful. The bill also allows the state to pursue injunctive relief and daily civil penalties against landowners, even if their role in a violation is limited to passive lease agreements.
• Limited Government: The bill significantly expands the reach of state government by granting enforcement agencies new criminal, civil, and administrative powers without sufficient oversight. It expands prosecutorial tools, increases the Comptroller’s authority, and introduces state-level bans that override local discretion. While intended to combat organized crime, these measures are not sufficiently restrained to prevent misuse or overapplication, particularly in edge cases involving small business operators or landowners unaware of downstream violations.