AB742: Bill Text

LRB-0636/1

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2009 - 2010 LEGISLATURE

2009 Assembly BILL 742

February 12, 2010 - Introduced by Law Revision Committee. Referred to Committee on Rules.

AB742,2,2 An Act to repeal 168.18; to renumber 168.12 (6) (a), 168.12 (6) (f) and 168.12 (6) (g); to renumber and amend 168.01 (2), 168.02, 168.03, 168.12 (title), 168.12 (1), 168.12 (1g), 168.12 (1r), 168.12 (5), 168.12 (6) (b), 168.12 (6) (c), 168.12 (6) (d), 168.12 (6) (e), 168.12 (6) (h), 168.12 (7), 168.12 (8) (a), 168.12 (8) (b), 168.12 (8) (c), 168.12 (8) (d), 168.12 (8) (e), 168.12 (9) and 168.125; to amend 20.566 (1) (s), 20.855 (4) (r), 25.47 (1), chapter 78 (title), subchapter IV (title) of chapter 78, 98.246 (title), (1) and (2), 101.02 (18m), 168.04 (3), 168.05 (title), 168.05 (1), 168.05 (2), 168.05 (3), 168.05 (4), 168.05 (5), 168.06 (1), 168.06 (2), 168.06 (3), 168.07 (1), 168.07 (2), 168.08 (intro.), 168.09, 168.10, 168.11 (1) (a), 168.11 (1) (b) 3., 168.11 (2) (intro.), 168.11 (2) (a), 168.11 (2) (b), 168.11 (2) (c), 168.11 (2) (d), 168.11 (3), 168.11 (4), 168.13, 168.14 (2), 168.14 (2m) (b) 3., 168.14 (2m) (c) 3., 168.15, 168.16 (2), 168.16 (3), 168.17, 227.01 (13) (zd), 341.45 (1g) (a), 341.45 (2), 341.45 (4m) and 341.45 (5); to repeal and recreate 168.14 (title); and to create subchapter V of chapter 78 [precedes 78.90], 78.90, 78.93, 78.94 and 168.05 (6) of the statutes; relating to: fuel products fees and inspection (suggested as remedial legislation by the Department of Commerce).

Analysis by the Legislative Reference Bureau

Under current law, the Department of Commerce (Commerce) prescribes standards for gasoline and similar fuels and administers laws regulating the inspection and sale of those fuels and other petroleum products. Current law also requires certain suppliers who receive petroleum products for sale in this state to pay a petroleum inspection fee. The Department of Revenue (DOR) administers the laws that relate to this fee. This bill reorganizes the statutes so that the petroleum inspection fee statutes are placed with other statutes that relate to vehicle fuel taxes and that are also administered by DOR. The bill also does the following:

1. Changes the term "petroleum products" to "fuel products" to more accurately describe the products covered under the laws administered by Commerce and DOR.

2. Clarifies that with regard to requirements for fuel product inspection, an inspector is not required to take a sample of every fuel product that is received in this state, and that the inspector may discard the sample seven or more days after taking the sample.

3. Authorizes Commerce to determine what constitutes a reasonable length of time in which an inspector may take a sample of a fuel product rather than requiring that the sample be taken during a specified time as required under current law.

4. Eliminates a requirement that a recipient of fuel products submit an application to Commerce if the recipient wants to unload the fuel products before inspection.

5. Clarifies that the requirements for inspection of fuel products do not apply to fuel products that are used in this state but that are not sold or offered for sale in this state.

6. Authorizes, rather than requires as under current law, an inspector to inspect fuel product samples to determine whether the samples meet minimum specifications prescribed by Commerce and eliminates the requirement that the inspector issue an inspection certificate.

7. Authorizes an inspector to enter the premises of a distributor of fuel products. Under current law, an inspector may enter only the premises of a manufacturer, vendor, dealer, or user of fuel products.

8. Requires that fuel product dispensing devices be marked or labeled in a conspicuous place with the octane rating, if any, of the fuel product being dispensed. Current law requires these devices to be marked only with the name and grade of the fuel product being dispensed.

9. Revises the testing method for determining the flash point of certain fuel products.

10. Establishes flash point and flammability standards for fuel products that are delivered, placed, or stored in a portable container and that are used in turbine engines. The standards are the same as those that apply under current law to such fuel products used in spark-ignition internal combustion engines.

11. Revises the exemptions to standards for delivering, placing, or storing fuel products in containers. The bill exempts fuel products in stationary tanks of 110 gallons capacity or more. Current law exempts containers of 275 gallons or more.

For further information, see the Notes provided by the Law Revision Committee of the Joint Legislative Council.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Law Revision Committee prefatory note: This bill is a remedial legislation proposal, requested by the Department of Commerce and introduced by the Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration of the various provisions of the bill, the Law Revision Committee has determined that this bill makes minor substantive changes in the statutes, and that these changes are desirable as a matter of public policy.

AB742, s. 1 Section 1. 20.566 (1) (s) of the statutes is amended to read:

AB742,3,4 20.566 (1) (s) Petroleum Fuel product inspection fee collection. From the petroleum inspection fund, the amounts in the schedule to cover the cost of collecting the petroleum fuel product inspection fee that is authorized under s. 168.12 78.91 (1).

AB742, s. 2 Section 2. 20.855 (4) (r) of the statutes is amended to read:

AB742,3,7 20.855 (4) (r) Petroleum allowance. From the petroleum inspection fund, a sum sufficient for the payment of allowances and interest under s. 168.12 (6) 78.91 (5).

AB742, s. 3 Section 3. 25.47 (1) of the statutes is amended to read:

AB742,3,9 25.47 (1) The fees imposed under s. 168.12 78.91 (1).

AB742, s. 4 Section 4. Chapter 78 (title) of the statutes is amended to read:

AB742,3,14 Chapter 78 MOTOR VEHICLE AND, GENERAL AVIATION FUEL TAXES, AND FUEL PRODUCT INSPECTION FEES

AB742, s. 5 Section 5. Subchapter IV (title) of chapter 78 of the statutes is amended to read:

AB742,4,3 Chapter 78

AB742,4,9 SUBCHAPTER IV PROVISIONS COMMON TO MOTOR VEHICLE FUEL TAX, GENERAL AVIATION FUEL TAX AND, ALTERNATE FUEL TAX, AND FUEL PRODUCT INSPECTION FEE

AB742, s. 6 Section 6. Subchapter V of chapter 78 [precedes 78.90] of the statutes is created to read:

AB742,4,12 CHAPTER 78

AB742,4,14 SUBCHAPTER V Fuel products INSPECTION FEES

AB742, s. 7 Section 7. 78.90 of the statutes is created to read:

AB742,4,16 78.90 Definitions. In this subchapter:

AB742,4,17 (1) "Department" means the department of revenue.

AB742,4,18 (2) "Fuel products" has the meaning given in s. 168.01 (3).

AB742, s. 8 Section 8. 78.93 of the statutes is created to read:

AB742,5,2 78.93 Required records. Every person receiving fuel products in this state shall keep books and records of all fuel products so received, together with bills of lading, waybills, and other pertinent documents. Such books and records and other papers and documents shall, at all times during business hours of the day, be subject to inspection by the department in regard to the fee under s. 78.91 (1). Such books, records, and other papers and documents shall be preserved for not less than 4 years, unless the department, and the department of commerce under s. 168.13, in writing, authorize their destruction or disposal at an earlier date.

AB742, s. 9 Section 9. 78.94 of the statutes is created to read:

AB742,5,11 78.94 Access to records. Every agent or employee of any railroad company or other transportation company and every person transporting fuel products having the custody of books or records showing the shipment or receipt of fuel products shall give and permit the department free access to such books and records for the purpose of determining the amount of fuel products shipped and received. All clerks, bookkeepers, express agents, railroad agents or officials, employees, or common carriers, or other persons shall provide all information in their possession when so requested in tracing and finding such shipments.

AB742, s. 10 Section 10. 98.246 (title), (1) and (2) of the statutes are amended to read:

AB742,5,14 98.246 (title) Petroleum Fuel product sales. (1) In this section, "petroleum fuel products" has the meaning given under s. 168.03 168.01 (3).

AB742,5,17 (2) Petroleum Fuel products may not be sold from a terminal or storage facility in this state on any basis other than gross volume without correction for temperature.

AB742, s. 11 Section 11. 101.02 (18m) of the statutes is amended to read:

AB742,6,2 101.02 (18m) The department may perform, or contract for the performance of, testing of petroleum fuel products other than testing provided under ch. 168. The department may establish a schedule of fees for such petroleum fuel product testing services. The department shall credit all revenues received from fees established under this subsection to the appropriation account under s. 20.143 (3) (ga). Revenues from fees established under this subsection may be used by the department to pay for testing costs, including laboratory supplies and equipment amortization, for such products.

AB742, s. 12 Section 12. 168.01 (2) of the statutes is renumbered 78.90 (3) and amended to read:

AB742,6,18 78.90 (3) "Supplier" includes a person who imports, or acquires immediately upon import, petroleum fuel products by pipeline or marine vessel from a state, territory, or possession of the United States or from a foreign country into a terminal and who is registered under 26 USC 4101 for tax-free transactions in gasoline. "Supplier" also includes a person who produces in this state; or imports into a terminal or bulk plant; or acquires immediately upon import by truck, railcar, or barge into a terminal; alcohol or alcohol derivative products. "Supplier" also includes a person who produces, manufactures or refines petroleum fuel products in this state. "Supplier" also includes a person who acquires petroleum fuel products pursuant to an industry terminal exchange agreement or by a 2-party exchange under section 4105 of the Internal Revenue Code. "Supplier" does not include a retail dealer or wholesaler who merely blends alcohol with gasoline before the sale or distribution of the product and does not include a terminal operator who merely handles in a terminal petroleum fuel products consigned to the terminal operator.

AB742, s. 13 Section 13. 168.02 of the statutes is renumbered 168.01 (4) and amended to read:

AB742,6,22 168.01 (4) Inspector defined. "Inspector" means a duly authorized petroleum fuel products inspector of the department.

AB742, s. 14 Section 14. 168.03 of the statutes is renumbered 168.01 (3) and amended to read:

AB742,7,2 168.01 (3) Petroleum products defined. "Petroleum "Fuel products" means gasoline, gasoline-alcohol fuel blends, kerosene, fuel oil, burner oil, and diesel fuel.

Note: Substitutes the term "fuel products" for "petroleum products" to better describe the products covered under applicable laws administered by the Department of Commerce and the Department of Revenue.

AB742, s. 15 Section 15. 168.04 (3) of the statutes is amended to read:

AB742,7,10 168.04 (3) Except as otherwise provided in this section, rules promulgated under this section shall be in conformity with nationally recognized standards, specifications, and classifications, such as those published by the American Society for Testing and Materials ASTM International, the Society of Automotive Engineers, and the U.S. Environmental Protection Agency. The department may not promulgate or enforce a rule prohibiting the placement of additional product information on the dispensing device.

AB742, s. 16 Section 16. 168.05 (title) of the statutes is amended to read:

AB742,7,12 168.05 (title) Inspection of petroleum fuel products.

AB742, s. 17 Section 17. 168.05 (1) of the statutes is amended to read:

AB742,7,23 168.05 (1) No petroleum fuel product imported into and received in this state or received from a manufacturer or refiner or from a marine or pipeline terminal within this state may be unloaded from its original container except as provided under sub. (5), sold, offered for sale, or used until a true sample of not less than 8 ounces is taken as provided in this chapter. This subsection does not apply if the department has previously inspected the petroleum fuel product at the refinery, marine or pipeline terminal. Each person importing or receiving a petroleum fuel product which that has not been previously inspected shall notify the inspector in the person's district of the receipt thereof, and the inspector shall take a sample of the petroleum product.

Note: Clarifies that an inspector is not required to take a sample of every fuel product that is received in this state.