AB742: Bill Text

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.

AB742, s. 18 Section 18. 168.05 (2) of the statutes is amended to read:

AB742,8,9 168.05 (2) If such petroleum fuel product is received on a regular business day between the hours of 7:45 a.m. and 4:30 p.m., such notice shall be given forthwith upon receipt of such petroleum fuel product. If received at any other time, such notice shall be given between the next succeeding hours of 7:45 a.m. and 10 a.m. of a regular business day. Provided, except that, if any petroleum fuel product is received on Saturday, Sunday, or any legal holiday, designated in s. 995.20, such notice shall be given on the next following regular business day between the hours of 7:45 a.m. and 10 a.m.

AB742, s. 19 Section 19. 168.05 (3) of the statutes is amended to read:

AB742,9,2 168.05 (3) If the inspector does not, upon proper notice, after a reasonable length of time, take such sample, the recipient of such petroleum fuel product may, in the presence of a disinterested witness, open such the original container and take a true sample of not less than 8 ounces of the contents thereof. Such of the original container. The sample shall be immediately placed in a clean container which that is in compliance with s. 168.11 (2) and (3) and tightly closed. The recipient shall record upon a label attached to such the container the means of conveyance, the type of original container, the product name and quantity of the contents thereof of the container, and such other information as the department reasonably requires for the proper identification of such the shipment. Such The sample thus taken shall be held for delivery, upon demand, to the inspector. After such the sample is taken such petroleum the fuel product may be unloaded, sold, offered for sale, or used the same as if sampled by the inspector. The inspector or the recipient may discard the sample 7 or more business days after the day on which the sample was taken.

Note: Clarifies that an inspector or a recipient may discard a fuel product sample 7 or more business days after the day on which the sample was taken.

AB742, s. 20 Section 20. 168.05 (4) of the statutes is amended to read:

AB742,9,11 168.05 (4) For the purpose of this section, the following department shall constitute determine what constitutes a reasonable length of time in which an inspector shall may take the a sample herein required: If notice is properly given to an inspector before the hour of 11:45 a.m., the inspector shall take such sample before the hour of 4:30 p.m. of the day; if notice is properly given between the hours of 11:45 a.m. and 4:30 p.m., such sample shall be taken before the hour of 11:45 a.m. of the next following regular business day. Saturdays, Sundays, and legal holidays, designated in s. 995.20, shall not be considered regular business days.

Note: Authorizes the Department of Commerce to determine what constitutes a reasonable length of time in which an inspector may take a fuel product sample, eliminating the current requirement that a sample be taken during a specified time.

AB742, s. 21 Section 21. 168.05 (5) of the statutes is amended to read:

AB742,9,19 168.05 (5) The department may permit a recipient to unload such petroleum the fuel product prior to inspection if the recipient submits an application setting forth good and sufficient reasons, and complies with requirements of sub. (3). The recipient may unload ships or boats without inspection if an emergency is declared by the U.S. coast guard. A recipient must notify the department as required by sub. (2) and the department shall revoke permission granted under this subsection if the recipient violates sub. (2).

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

AB742, s. 22 Section 22. 168.05 (6) of the statutes is created to read:

AB742,10,2 168.05 (6) This section does not apply to fuel products that are used in this state but that are not sold or offered for sale in this state.

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

AB742, s. 23 Section 23. 168.06 (1) of the statutes is amended to read:

AB742,10,16 168.06 (1) For the purposes of administering this chapter, inspectors may take samples of gasoline gasoline-alcohol fuel blends, kerosene, other refined oils, fuel oils and petroleum distillates products for tests and make inspections at any points within or without this state, and may open any original container containing gasoline, gasoline-alcohol fuel blends, kerosene, other refined oils, fuel oils and petroleum distillates products and take a true sample of not less than 8 ounces of the contents thereof, even though the original containers may still be in the possession of a common or contract carrier, provided the opening and sampling does not unduly inconvenience or hamper the transportation of the fuel products. After the original containers are opened and sampled the same, the inspector shall be resealed reseal the containers with seals furnished by the department for such purposes. The authority conferred by this section shall be in addition to, and not in limitation of, any of the provisions of s. 168.05.

AB742, s. 24 Section 24. 168.06 (2) of the statutes is amended to read:

AB742,10,23 168.06 (2) If any petroleum fuel product is emptied or transferred into any container in which is contained containing any other grade of petroleum fuel product, then the entire commingling shall be deemed considered uninspected and a sample of such the commingled petroleum product fuel products shall be taken before such the commingled petroleum product is fuel products are removed from such the container, sold, offered for sale, or used.

AB742, s. 25 Section 25. 168.06 (3) of the statutes is amended to read:

AB742,11,11 168.06 (3) Notice of such the commingling of any petroleum fuel products shall be given in the same manner and subject to the same conditions as notice of the receipts of petroleum fuel products as provided in s. 168.05. The sample of such the commingled petroleum fuel products shall be taken by the inspector within a reasonable length of time, as defined and set forth provided in s. 168.05, after notice. If such the inspector does not take such the sample within such that time, the commingler shall take a true sample of not less than 8 ounces of the commingled petroleum fuel products. The taking, sealing, and holding of such the sample by the commingler shall, so far as applicable, be governed by the provisions of s. 168.05 relating to the same by a person receiving a petroleum fuel product.

AB742, s. 26 Section 26. 168.07 (1) of the statutes is amended to read:

AB742,12,6 168.07 (1) The inspector shall may inspect each sample samples of petroleum product and if the inspector finds that it meets fuel products to determine whether the samples meet the minimum specifications prescribed by the department, the inspector shall issue an inspection certificate, except that inspections for particular grade specifications shall be at the discretion of. The inspector shall determine whether the samples meet grade specifications after the department tests the samples. If an inspector believes that a fuel product has been misidentified, an inspection shall be performed. If the inspector finds that the petroleum fuel product does not meet the minimum specifications prescribed by the department, the inspector shall notify the person for whom the inspection was made. After such notice, no person may sell or use the fuel product in this state or remove it from storage as long as it fails to meet the minimum specifications prescribed by the department or until satisfactory disposition is approved by the inspector. Any transporter, wholesaler, or distributor of petroleum fuel products who delivers or causes to be delivered a petroleum fuel product that fails to meet the minimum specifications prescribed by the department shall, at the direction of the department, remove the petroleum fuel product and dispose of it in a manner approved by the department. The department may contract for the performance of testing conducted under this subsection.

Note: Authorizes, rather than requires, an inspector to inspect fuel products to determine whether the samples meet minimum Department of Commerce specifications and eliminates the requirement that an inspector issue an inspection certificate.

AB742, s. 27 Section 27. 168.07 (2) of the statutes is amended to read: