South Carolina General Assembly
111th Session, 1995-1996

Bill 4825


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       4825
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19960327
Primary Sponsor:                   Boan 
All Sponsors:                      Boan 
Drafted Document Number:           bbm\10713jm96
Current Committee:                 Conference Committee 98
                                   HCC
Date of Last Amendment:            19960529
Subject:                           Gasoline and diesel fuel taxes,
                                   motor fuels



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19960612  Conference powers granted,               98 HCC  Keegan
                  appointed Reps. to Committee of                  Kinon
                  Conference                                       Robinson
Senate  19960612  Conference powers granted,               88 SCC  Moore
                  appointed Senators to Committee                  Rankin
                  of Conference                                    Alexander
Senate  19960612  Insists upon amendment
House   19960530  Non-concurrence in Senate amendment
Senate  19960529  Read third time, returned to House
                  with amendment
Senate  19960529  Reconsidered vote whereby
                  read third time and amendment No. 2
                  adopted; amendment No. 2 withdrawn
Senate  19960529  Amended, read third time, 
                  returned to House with amendment
Senate  19960523  Amended
Senate  19960516  Amended, read second time, 
                  ordered to third reading 
                  with notice of general amendments
Senate  19960509  Recalled from Committee,                 06 SF
                  placed on the Calendar
Senate  19960417  Introduced, read first time,             06 SF
                  referred to Committee
House   19960416  Read third time, sent to Senate
House   19960411  Amended, read second time
House   19960409  Committee report: Favorable with         30 HWM
                  amendment
House   19960327  Introduced, read first time,             30 HWM
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken
Indicates New Matter

AMENDED

May 29, 1996

H. 4825

Introduced by REP. Boan

S. Printed 5/29/96--S.

Read the first time April 17, 1996.

A BILL

TO AMEND SECTION 12-28-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TAX ON GASOLINE AND DIESEL FUEL, SO AS TO PROVIDE THAT THE LICENSE TAX IMPOSED BY THIS SECTION IS IN LIEU OF ALL SALES, USE, OR OTHER EXCISE TAX WHICH MAY OTHERWISE BE IMPOSED BY ANY MUNICIPALITY, COUNTY, OR OTHER LOCAL POLITICAL SUBDIVISION; TO AMEND SECTION 12-28-720, RELATING TO THE TAX ON MOTOR FUELS AND PERFECTION OF THE EXEMPTION FOR IMPORTS, SO AS TO PROVIDE THE EXEMPTION FOR EXPORTS, RATHER THAN IMPORTS; TO AMEND SECTION 12-28-740, RELATING TO THE TAX ON MOTOR FUELS AND PERFECTION OF THE EXEMPTION FOR THE FEDERAL GOVERNMENT AND STATE-OWNED BUSES AND VEHICLES USED IN AN EDUCATIONAL PROGRAM, SO AS TO CHANGE A STATUTORY REFERENCE REGARDING A VENDOR'S MAKING APPLICATION FOR A PERMIT PROVIDED FOR BY THIS SECTION; TO AMEND SECTION 12-28-795, RELATING TO THE TAX ON MOTOR FUELS AND INTEREST ON REFUND CLAIMS NOT ISSUED WITHIN THIRTY DAYS OF FILING, SO AS TO DELETE THE EXISTING PROVISIONS OF THIS SECTION AND PROVIDE THAT INTEREST ON A CLAIM FOR A REFUND MUST BE PAID AT THE RATE AND IN THE MANNER PROVIDED FOR IN SECTION 12-54-25; TO AMEND SECTION 12-28-905, RELATING TO THE TIME FOR PAYMENT OF THE MOTOR FUEL TAX ON GALLONS OF MOTOR FUEL IMPORTED FROM ANOTHER STATE, SO AS TO CHANGE CERTAIN STATUTORY REFERENCES WITHIN THIS SECTION; TO AMEND SECTION 12-28-915, RELATING TO THE TAX ON MOTOR FUELS, THE TAX COLLECTED AND REMITTED BY THE SUPPLIER, DUE DATE, AND LATE TAXES, SO AS TO PROVIDE THAT A SUPPLIER SHALL "GIVE NOTIFICATION OF", RATHER THAN "REMIT", LATE TAXES REMITTED TO THE SUPPLIER BY AN ELIGIBLE PURCHASER; TO AMEND SECTION 12-28-925, RELATING TO THE COLLECTION OF MOTOR FUEL TAX FROM A PURCHASER AND THE ELECTION TO DEFER THE TAX PAYMENT, SO AS TO DELETE CERTAIN PROVISIONS, AND TO PROVIDE THAT FAILURE OF A SUPPLIER OR BONDED IMPORTER TO COMPLY WITH THE REQUIREMENTS OF THIS SECTION MAY RESULT IN SUSPENSION OR REVOCATION OF LICENSE; TO AMEND SECTION 12-28-935, RELATING TO RECISION OF A PURCHASER'S ELIGIBILITY AND ELECTION TO DEFER PAYMENT OF THE TAX ON MOTOR FUELS, SO AS TO CHANGE A STATUTORY REFERENCE WITHIN THE CODE SECTION; TO AMEND SECTION 12-28-940, RELATING TO COMPUTING THE AMOUNT OF THE MOTOR FUEL TAX DUE, SO AS TO CHANGE A STATUTORY REFERENCE WITHIN THIS SECTION, AND TO SUBSTITUTE "CREDIT" FOR "DEDUCTION" IN ONE INSTANCE; TO AMEND SECTION 12-28-970, RELATING TO THE IMPOSITION OF A BACKUP TAX EQUAL TO THE TAX IMPOSED BY SECTION 12-28-310, SO AS TO PROVIDE FOR AN EXEMPTION FROM THE BACKUP TAX UPON THE DELIVERY IN THIS STATE INTO THE FUEL SUPPLY TANK OF A HIGHWAY VEHICLE OF "ALTERNATIVE FUELS"; TO AMEND SECTION 12-28-1130, RELATING TO THE TAX ON MOTOR FUELS AND THE TANK WAGON OPERATOR-IMPORTER LICENSE AND FEE, SO AS TO PROVIDE THAT "OPERATORS OF TANK WAGONS DELIVERING PRODUCTS", RATHER THAN "OPERATORS OF TANK WAGON DELIVERY PRODUCT", INTO THIS STATE MORE THAN TWENTY-FIVE MILES FROM THE BORDER SHALL APPLY FOR AN IMPORTER'S LICENSE UNDER SECTION 12-28-1125; TO AMEND SECTION 12-28-1135, RELATING TO THE FUEL VENDOR LICENSE AND FEE, SO AS TO, AMONG OTHER THINGS, SUBSTITUTE "TRANSPORTER" FOR "CARRIER" IN ONE INSTANCE AND CHANGE A STATUTORY REFERENCE; TO AMEND THE 1976 CODE BY ADDING SECTION 12-28-1139 SO AS TO REQUIRE EACH PERSON LIABLE FOR THE TAX IMPOSED BY SECTIONS 12-28-970 AND 12-28-990(C) WHO IS NOT LICENSED UNDER SECTIONS 12-28-1100 THROUGH 12-28-1135 TO OBTAIN A MISCELLANEOUS FUEL TAX LICENSE, AND TO PROVIDE THAT THERE IS NO REGISTRATION FEE FOR THIS LICENSE; TO AMEND SECTION 12-28-1150, RELATING TO THE TAX ON MOTOR FUELS, FINGERPRINTING, AND EXEMPTIONS, SO AS TO CHANGE A REFERENCE TO THE TITLE OF AN AGENCY HEAD; TO AMEND SECTION 12-28-1155, RELATING TO THE REQUIREMENT THAT AN APPLICATION FOR A LICENSE UNDER CHAPTER 28, TITLE 12, MUST BE FILED WITH A SURETY BOND OR CASH DEPOSIT, SO AS TO ADD LANGUAGE TO A PROVISION OF THIS SECTION TO THE EFFECT THAT FUEL VENDORS DEFINED IN SECTION 12-28-1135, OTHER THAN PERSONS REQUIRED TO BE LICENSED UNDER PROVISIONS OTHER THAN IN THOSE SECTIONS, AND MISCELLANEOUS FUEL TAX LICENSEES DEFINED IN SECTION 12-28-1139, ARE EXEMPT FROM THE BONDING REQUIREMENTS; TO AMEND SECTION 12-28-1180, RELATING TO THE TAX ON MOTOR FUELS, NOTICE OF PROPOSED DENIAL OF APPLICATION FOR A LICENSE NOTICE OF SUSPENSION OR REVOCATION OF LICENSE, AND CERTAIN HEARINGS, SO AS TO PROVIDE FOR THE SUSPENSION OR REVOCATION OF A LICENSE FOR FAILURE TO COMPLY WITH CHAPTER 28, TITLE 12, AFTER AT LEAST THIRTY DAYS' NOTICE, RATHER THAN TEN DAYS' NOTICE, TO THE LICENSEE AND A HEARING, IF REQUESTED, PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT; TO AMEND SECTION 12-28-1300, RELATING TO THE TAX ON MOTOR FUELS, VERIFIED STATEMENT BY A SUPPLIER, AND REPORTING OF INFORMATION, SO AS TO PROVIDE THAT THE REPORTS REQUIRED BY ARTICLE 13 OF CHAPTER 28, TITLE 12, RATHER THAN BY SECTION 12-28-1300, MUST BE FILED WITH RESPECT TO INFORMATION FOR THE PRECEDING CALENDAR MONTH "ON OR BEFORE", RATHER THAN "BEFORE", THE TWENTY-SECOND DAY OF THE CURRENT MONTH, AND TO CHANGE A STATUTORY REFERENCE WITHIN THIS SECTION; TO AMEND SECTION 12-28-1320, RELATING TO THE TAX ON MOTOR FUELS AND THE REQUIREMENT THAT A LICENSED TANK IMPORTER MUST FILE A MONTHLY VERIFIED SWORN STATEMENT OF OPERATIONS, SO AS TO REFER TO AND IMPOSE THE REQUIREMENT OF THIS SECTION UPON, A "LICENSED TANK WAGON OPERATOR IMPORTER", RATHER THAN A "LICENSED TANK IMPORTER"; TO AMEND SECTION 12-28-1390, RELATING TO THE TAX ON MOTOR FUELS AND A FUEL VENDOR'S REPORTS, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE FUEL VENDOR'S ANNUAL REPORT MUST BE FILED BEFORE FEBRUARY TWENTY-EIGHTH, RATHER THAN "BEFORE JANUARY TWENTY-FIRST", ANNUALLY FOR THE PRECEDING CALENDAR YEAR; TO AMEND THE 1976 CODE BY ADDING SECTION 12-28-1395 SO AS TO PROVIDE THAT A PERSON LICENSED AS A MISCELLANEOUS FUEL TAX LICENSEE IN SOUTH CAROLINA SHALL FILE MONTHLY A SWORN STATEMENT ON PRESCRIBED FORMS AND FURNISH ANY INFORMATION CONSIDERED NECESSARY BY THE ADMINISTERING AGENCY FOR THE ENFORCEMENT OF CHAPTER 28, TITLE 12; TO AMEND SECTION 12-28-1505, RELATING TO THE TAX ON MOTOR FUELS AND REQUIREMENTS RELATING TO SHIPPING DOCUMENTS, SO AS TO DELETE A CERTAIN REFERENCE TO "THE SECRETARY OF STATE" AND SUBSTITUTE "THE DEPARTMENT OF REVENUE AND TAXATION OR ITS AGENT"; TO AMEND SECTION 12-28-2110, RELATING TO SPECIALIZED COMPENSATING FUEL TAXES AND THE FUEL REPLACEMENT TAX, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN LANGUAGE AND PROVISIONS, AND TO REQUIRE THE COLLECTION OF THE TAX IMPOSED BY CHAPTER 28, TITLE 12; TO AMEND SECTION 12-28-2360, RELATING TO THE TAX ON MOTOR FUELS AND REFUND OF THE INSPECTION FEE ON PETROLEUM PRODUCTS, SO AS TO PROVIDE FOR PROOF OF CLAIM BEING SUBMITTED WITHIN THE TIME PERIOD PROVIDED FOR IN SECTION 12-54-85, RATHER THAN WITHIN SIX MONTHS FROM THE DATE SHOWN ON THE DELIVERY MANIFEST; TO AMEND SECTION 12-28-2380, RELATING TO THE TAX ON MOTOR VEHICLES, THE PROVISION THAT MOTOR FUELS USED IN THE OPERATION OF A MOTOR VEHICLE ARE TAXABLE, AND THE EXEMPTION FOR THE SELLER-USER OF LIQUEFIED PETROLEUM GAS, SO AS TO PROVIDE THAT ALL MOTOR FUELS PLACED INTO MOTOR VEHICLES FOR USE IN THEIR OPERATION OR FOR THE OPERATION OF THEIR PARTS OR ATTACHMENTS ARE SUBJECT TO THE "FEES", RATHER THAN THE "TAX", PROVIDED FOR IN ARTICLE 23 OF CHAPTER 28, TITLE 12, RATHER THAN "PROVIDED FOR IN CHAPTER 28, TITLE 12"; TO AMEND SECTION 12-28-2520, RELATING TO THE TAX ON MOTOR FUELS, REPORTS AND BOND REQUIREMENTS, AND OIL COMPANY BOND EXEMPTION BASED ON STATEMENT OF ASSETS AND LIABILITIES, SO AS TO PROVIDE THAT "A MOTOR FUEL LICENSEE", RATHER THAN "AN OIL COMPANY", MAY FURNISH A STATEMENT OF ASSETS AND LIABILITIES AND THAT IF IN THE JUDGMENT OF THE ADMINISTERING AGENCY, THE PROPERTY OWNED BY THE "MOTOR FUEL LICENSEE", RATHER THAN "THE OIL COMPANY", IS SUFFICIENT TO PROTECT THE STATE IN THE PAYMENT OF ALL "MOTOR FUEL TAXES", RATHER THAN "GASOLINE TAXES", DUE, A BOND IS NOT REQUIRED; AND TO REPEAL SECTION 12-28-2510, RELATING TO THE TAX ON MOTOR FUELS AND THE ANNUAL REPORTING REQUIREMENT OF GALLONS SOLD THROUGH RETAIL OUTLETS.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-28-310 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-310. Subject to the exemptions provided in this chapter, a tax of sixteen cents a gallon is imposed on all gasoline used or consumed in this State and upon all diesel fuel used or consumed in this State in producing or generating power for propelling motor vehicles. The tax levied on taxable motor fuel pursuant to this chapter is a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the State for the collection of the tax. This section does not affect the method of collecting the tax as provided in this chapter. The tax imposed by this section must be collected and paid at those times, in the manner, and by those persons specified in this chapter. The license tax imposed by this section shall be in lieu of all sales, use, or other excise tax which may otherwise be imposed by any municipality, county, or other local political subdivision of the State."

SECTION 2. Section 12-28-720 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-720. The exemption for imports exports:

(1) under Section 12-28-710(A)(1) must be perfected by a deduction on the report of the supplier which is otherwise responsible for tax on removal of the product from a terminal or refinery in this State;

(2) under Section 12-28-710(A)(2) and 12-28-710(A)(4) may be perfected at the option of the exporter by a refund claim if the claim in the aggregate month to date exceeds one thousand dollars, by a refund claimed on the licensed exporter report for that month's activity, or under Section 12-28-710(A)(3) if a diversion by an unlicensed exporter upon a refund application is made to the department within three years."

SECTION 3. Section 12-28-740(2)(a)(iv) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(iv) a list of government tax-exempt purchasers qualifying under subsubitem (iii) (c) of this subitem and estimated volumes for them;"

SECTION 4. Section 12-28-795 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-795. If a claim for refund is not issued within thirty days of the filing required by Section 12-28-785, the department shall pay interest at the rate provided for in Section 12-54-30 from the date of filing of the claim for refund until a date, determined by the director, that does not precede by more than thirty days, the date on which the refund is made. Interest on a claim for refund must be paid at the rate and in the manner provided for in Section 12-54-25."

SECTION 5. Section 12-28-905 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-905. (A) Except as otherwise provided in this chapter, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed occasional importer who has imported the nonexempt taxable motor fuel within three business days of the earlier of the time the nonexempt taxable motor fuel was entered into the State or the time a valid import verification number required by Section 12-28-1135 12-28-1125 was assigned by the department under regulations the department promulgates. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-920 12-28-915, and no import verification number is required.

(B) Except as otherwise provided in this section, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed bonded importer who has imported the nonexempt taxable motor fuel during a month before the twenty-second day of the following month unless the day falls upon a weekend or state or banking holiday, in which case the liability is due the next succeeding business day, if before the time of import the importer obtains a valid import verification number required by Section 12-28-1135 12-28-1125, assigned by the department under regulations promulgated by the department. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(3) 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-920 12-28-915, and no import verification number is required."

SECTION 6. Section 12-28-925 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-925. Each supplier and bonded importer who sells taxable motor fuel shall collect from the purchaser the motor fuel tax imposed under Section 12-28-310. At the election of an eligible purchaser evidenced by a written statement from the department as to the purchaser eligibility status as determined under Section 12-28-930, the seller may not require a payment of motor fuel tax on transport truckloads from the purchaser sooner than one business day before the date on which the tax is required to be remitted by the supplier or bonded importer under Section 12-28-915. This election is subject to a condition that the eligible purchaser's remittances of all amounts of tax due the seller must be paid by electronic funds transfer before the third preceding day before the date of the remittance by the supplier to the department. Failure of a supplier or bonded importer to comply with the requirements of this section may result in suspension or revocation of the license in accordance with Section 12-28-1180(B). The eligible purchaser's election under this subsection may be terminated by the seller if the eligible purchaser does not make timely payments to the seller as required by this section."

SECTION 7. Section 12-28-935 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-935. The department may rescind a purchaser's eligibility and election to defer taxable motor fuel tax remittances after a hearing and upon a showing of good cause, including failure to make timely tax deferred payment to a supplier of tax under Section 12-28-930 12-28-925 by sending written notice to all suppliers or publishing notice of the revocation pursuant to regulations. The department may require further assurance of the purchaser's financial responsibility, may increase the bond requirement for that purchaser, or may take other action to ensure remittance of the taxable motor fuel tax. The department shall follow the revocation procedures under Section 12-28-1180 in rescinding eligible purchaser status."

SECTION 8. Section 12-28-940 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-940. (A) In computing the amount of motor fuel tax due, the supplier is entitled to a credit against the tax payable in the amount of tax paid by the supplier that is uncollectible from an eligible purchaser.

(B) The supplier shall provide notice to the department of a failure to collect tax within ten days following the earliest date on which the supplier was entitled to collect the tax from the eligible purchaser under Section 12-28-925.

(C) The department shall promulgate regulations establishing the evidence a supplier shall provide to receive the credit.

(D) The credit must be claimed on the first return following the date of the failure of the eligible purchaser if the payment remains unpaid as of the filing date of that return or the deduction credit is disallowed.

(E) The claim for credit must identify the defaulting eligible purchaser and any tax liability that remains unpaid.

(F) If an eligible purchaser fails to make a timely payment of the amount of tax due, the supplier's credit is limited to the amount due from the purchaser, plus any tax that accrues from that purchaser for a period ending upon the date the supplier receives notice from the department of revocation of eligible purchaser status.

(G) No additional credit is allowed to a supplier under this section until the department authorizes the purchaser to make a new election under Section 12-28-930 12-28-925."

SECTION 9. Section 12-28-970(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) A backup tax equal to the tax imposed by Section 12-28-310 is imposed and must be administered in accordance with regulations promulgated by the department on the use on the highways of taxable motor fuel by an end user, including operators of state and local government vehicles, American Red Cross vehicles, and buses, and other persons exempted from the full federal highway tax, unless the person is exempted otherwise under Section 12-28-710(A)(12), upon the delivery in this State into the fuel supply tank of a highway vehicle of:

(1) diesel fuel that contains a dye;

(2) taxable motor fuel on which a claim for refund has been made;

(3) alternative fuels; or

(4) liquid on which tax previously has not been imposed by this chapter."

SECTION 10. Section 12-28-1130 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1130. Each person who is an importer of taxable motor fuel into this State by a tank wagon operating out of or controlling a bulk plant in another state, if the destination of that tank wagon is within twenty-five miles of the borders of South Carolina, shall make application for and obtain a license from the department before engaging in import activities. However, registration as a tank wagon operator-importer does not constitute authorization of the persons to acquire nonexempt motor fuel free of the tax imposed by this chapter at a terminal either within or outside this State for direct delivery to a location in South Carolina. A person who possesses a valid importer's license is eligible as a tank wagon operator-importer without issuance of a separate license if the importer also operates one or more bulk plants outside this State. The fee for a tank wagon operator-importer license is fifty dollars. Operators of tank wagon delivery product wagons delivering products into this State more than twenty-five miles from the border shall apply for an importer's license under Section 12-28-1125."

SECTION 11. Section 12-28-1135 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1135. (A) Each person who engages in the business of selling taxable motor fuel at wholesale or retail or storing or distributing taxable motor fuel for resale within this State first shall obtain a fuel vendor license which is operative for all locations controlled or operated by that licensee in this State or in any other state from which the person removes fuel for delivery and use in South Carolina.

(B) Each fuel vendor shall maintain detailed records of all purchases and sales for no less than three years.

(C) All fuel vendor records must be maintained in English and Arabic numerals or acceptable to electronic formats.

(D) Each fuel vendor shall make an annual report of taxable gallons sold at retail by county in accordance with Section 12-28-720 12-28-1390.

(E) In its discretion, the department may exempt from subsection (A) persons who possess a valid supplier, terminal operator, carrier transporter, importer, tank wagon operator, or exporter license. The fee for the full fuel vendor license is fifty dollars."

SECTION 12. The 1976 Code is amended by adding:

"Section 12-28-1139. Each person who is liable for the tax imposed by Sections 12-28-970 and 12-28-990(C) who is not licensed under Sections 12-28-1100 through 12-28-1135 shall obtain a miscellaneous fuel tax license. There is no registration fee for this license."

SECTION 13. Section 12-28-1150 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1150. Applicants, including corporate officers, partners, and individuals, for a license issued by the commissioner director, may be required to submit their fingerprints to the department at the time of applying. Officers of publicly-held corporations and their subsidiaries are exempt from this fingerprinting provision. Persons, other than applicants for an importer's license, who possessed licenses issued under a predecessor statute continuously for three years before the effective date of this chapter also are exempt from this provision. Fingerprints required by this section must be submitted on forms prescribed by the department. The department may forward to the Federal Bureau of Investigation or any other agency for processing all fingerprints submitted by license applicants. The receiving agency shall issue its findings to the department. The license application fee must be used to pay the cost of the investigation. The department or another state agency may maintain a file of fingerprints."

SECTION 14. Section 12-28-1155(D) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(D) Fuel vendors defined in Section 12-28-1135, other than persons required to be licensed under provisions other than in that section those sections, and miscellaneous fuel tax licensees defined in Section 12-28-1139, are exempt from the bonding requirements of this section."

SECTION 15. Section 12-28-1180(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(B) The department may suspend or revoke a license for failure to comply with this chapter after at least ten thirty days' notice to the licensee and a hearing, should such be requested, pursuant to the Administrative Procedures Act."

SECTION 16. Section 12-28-1300(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(B) The reports required by this section article must be filed with respect to information for the preceding calendar month on or before the twenty-second day of the current month."

SECTION 17. Section 12-28-1300(C)(13) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(13) corrections made by the supplier pursuant to Section 12-28-795 12-28-1525 for changes in destination state which affect the supplier's or his customer's tax liability to this State;"

SECTION 18. Section 12-28-1320 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1320. Each licensed tank wagon operator importer shall file with the department monthly a verified sworn statement of operations within this State plus other information in respect of the source and means of transportation of nonexempt taxable motor fuel as the department in its discretion may require on forms it prescribes and furnishes. A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days."

SECTION 19. Section 12-28-1390(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) A fuel vendor shall file an annual report of total gallons of all motor fuels sold at retail through a retail outlet accessible to the general public by that vendor by county before January twenty-first February twenty-eighth annually for the preceding calendar year."

SECTION 20. The 1976 Code is amended by adding:

"Section 12-28-1395. A person licensed as a miscellaneous fuel tax licensee in this State shall file monthly a sworn statement on forms prescribed by the department and furnish any information the department considers necessary to the enforcement of this chapter."

SECTION 21. Section 12-28-1505(A)(3)(b) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(b) receives from the Secretary of State Department of Revenue and Taxation or its agent a verification number authorizing the diversion;"

SECTION 22. Section 12-28-2360 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2360. A person may present to the department proof that he has paid an inspection fee on petroleum products in error or has paid an inspection fee on shipments of petroleum products subsequently diverted from the State, whereupon the department shall refund the amount of the inspection fee to the payee out of the petroleum products inspection fund, if the proof of the claim is submitted within six months from the date shown on the delivery manifest the time period provided for in Section 12-54-85."

SECTION 23. Section 12-28-2380 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2380. All motor fuels placed into motor vehicles for use in their operation or for the operation of their parts or attachments are subject to the tax fees provided in this chapter article. This section does not apply to a seller-user of liquefied petroleum gas."

SECTION 24. Section 12-28-2520 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2520. An oil company A motor fuel licensee may furnish the department with a statement of assets and liabilities, and if in the judgment of the department the property owned by the oil company motor fuel licensee is sufficient to protect the State in the payment of all gasoline motor fuel taxes due, a bond is not required."

SECTION 25. Section 12-28-1575 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1575. In general, a notice stating: "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE" must be:

(1) provided by the terminal operator to a person who receives dyed diesel fuel at a terminal rack of that terminal operator;

(2) provided by a seller of dyed diesel fuel to its buyer if the diesel fuel is located outside the bulk transfer/terminal system and is not sold from a retail pump or bulk plant posted in accordance with the requirements of item (3);

(3) posted by a seller on a retail pump or bulk plant where it sells dyed diesel fuel for use by its buyer."

SECTION 26. Section 12-28-710(A)(1)(c) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(c) which is destined for use other than for resale within the destination state for which an exemption has been made available by the destination state subject to procedural regulations promulgated by the department;"

SECTION 27. Section 12-28-710(A)(7) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(7) subject to determination by the department, that portion of diesel fuel taxable motor fuel used to operate equipment attached to a motor vehicle, if the diesel fuel taxable motor fuel was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment;"

SECTION 28. Section 12-28-2750 is amended to read:

"Section 12-28-2750. Subject to the provisions of Section 12-28-2910, the remainder of the proceeds from the gasoline fuel taxes levied and provided for in this chapter must be remitted to the State Highway Fund to be deposited to the credit of a special account to be designated as the State Highway Construction Debt Service Fund. All monies credited to the state Highway Construction Debt Service Fund must only be used for the exclusive purpose of defraying the costs incurred in the issuance of state highway construction bonds."

SECTION 29. This act takes effect May 1, 1996.

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