September 12, 2006, Introduced by Rep. Emmons and referred to the Committee on Agriculture.
A bill to amend 1984 PA 44, entitled
"Motor fuels quality act,"
by amending sections 2, 5, and 7 (MCL 290.642, 290.645, and
290.647), sections 2 and 5 as amended by 2006 PA 104 and section 7
as amended by 1993 PA 236.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Additive" means any substance in gasoline other than
gasoline but does not include approved blending components, other
than lead, sodium, and phosphate components, introduced at
refineries or terminals as octane or product quality enhancers in
quantities of less than 1% of volume.
(b) "American society for testing and materials" means an
international nonprofit scientific and educational society devoted
to the promotion of knowledge of the materials of engineering and
the standardization of specification and methods of testing.
(c) "Antiknock index" or "AKI" means an index number arrived
at by adding the motor octane number and the research octane
number, then dividing by 2.
(d) "Blender" means a person who as an individual or through
his or her agent adds an oxygenate to a gasoline.
(e) "Bulk purchaser-end user" means a person who is an
ultimate consumer of gasoline and receives delivery of gasoline
into a storage tank of at least 550-gallon capacity substantially
under his or her control.
(f) "CARB" means the California air resources board.
(g) "Common carrier" means a person who serves solely as a
third party contractor for the transportation of gasoline at any
point between a gasoline refinery and a retail outlet or bulk
purchaser-end user facility.
(h) (g)
"Delivery vessel" means a tank truck, tank
equipped
trailer, or a similar vessel used for the delivery of gasoline to a
dispensing facility.
(i) (h)
"Department" means the department of
agriculture.
(j) (i)
"Director" means the director of the
department of
agriculture or his or her authorized representative.
(k) (j)
"Dispensing facility" means a site used
for gasoline
refueling.
(l) (k)
"Dispensing unit" means a device designed
for the
delivery of gasoline in which 1 nozzle equates to 1 dispensing
unit.
(m) (l) "Distributor" means a person who
purchases,
transports, or stores or causes the transportation or storage of
gasoline at any point between a gasoline refinery and a retail
outlet or bulk purchaser-end user facility.
(n) (m)
"E.P.A." means the United States
environmental
protection agency.
(o) (n)
"Gasoline" means any fuel sold in this
state that is
suitable for use in spark-ignition internal combustion engines, and
commonly or commercially known or sold as gasoline.
(p) (o)
"Leak" means liquid or vapor loss from the
gasoline
dispensing system or stage I vapor-recovery system as determined by
visual inspection or functional testing.
(q) (p)
"Modification" means any change, removal,
or
addition, other than an identical replacement, of any component
contained within a stage I vapor-recovery system. The resultant
modification must constitute an approved vapor-recovery system.
(r) (q)
"Motor octane number" or "MON"
means a knock
characteristic of gasoline determined by use of standard procedures
on a motor engine.
(s) (r)
"Operator" means a person who owns,
leases,
operates, manages, supervises, or controls, directly or indirectly,
a gasoline-dispensing facility.
(t) (s)
"Oxygenate" means an oxygen-containing,
ashless,
organic compound, such as alcohol or ether, that may be used as
fuel or fuel supplement.
(u) (t)
"Person" means an individual, sole
proprietorship,
partnership, corporation, association, or other legal entity.
(v) (u)
"Refiner" means a person who owns, leases,
operates,
controls, or supervises a refinery.
(w) (v)
"Refinery" means a plant at which gasoline
is
produced.
(x) (w)
"Research octane number" or
"RON" means a knock
characteristic of gasoline determined by use of standard procedures
on a research engine.
(y) (x)
"Retail dealer" means a person who owns,
leases,
operates, controls, or supervises a retail outlet.
(z) (y)
"Retail outlet" means an establishment at
which
gasoline is sold or offered for sale to the public.
(aa) (z)
"Rule" means a rule promulgated pursuant
to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(bb) (aa)
"Stage I vapor-recovery system" means a
vapor
tight collection system that is approved by the department and is
designed to capture the gasoline vapors displaced during delivery
into a stationary storage tank and to return not less than 90% of
the displaced vapors to the delivery vessel.
Sec. 5. (1) Except as provided by federal law or regulation,
in the manufacture of gasoline at any refinery in this state, a
refiner shall not manufacture gasoline at a refinery in this state
unless the gasoline meets the requirements in sections 3 and 10d.
Except as provided by federal law or regulation, a blender shall
not blend gasoline unless the finished blend meets the requirements
in sections 3 and 10d.
(2) Except as provided by federal law or regulation, a
distributor shall not sell or transfer to any distributor, retail
dealer, or bulk purchaser-end user any gasoline unless that
gasoline meets the requirements in sections 3 and 10d.
(3) A common carrier or an employee or agent of a carrier,
whether operating under contract or tariff, shall not cause
gasoline tendered to the carrier for shipment or transfer to
another carrier, distributor, or retail dealer to fail to comply,
at the time of delivery, with the requirements in sections 3 and
10d.
(4) A person shall not knowingly sell, dispense, or offer for
sale gasoline unless that gasoline meets the requirements in
sections 3 and 10d.
(5) A refiner or distributor shall not transfer, sell,
dispense, or offer gasoline for sale in this state to a distributor
or common carrier unless the refiner or distributor indicates on
each bill, invoice, or other instrument evidencing a delivery of
gasoline, the name of the wholesale distributor who received
delivery of the gasoline.
(6)
A distributor or refiner shall not transfer, sell,
dispense,
or offer gasoline for sale in this state to a retail
dealer
unless the distributor indicates on each bill, invoice, or
other
instrument evidencing a delivery of gasoline, the name and
license
number issued pursuant to this act, of the retail dealer
who
received delivery of the gasoline.
(6) (7)
A bill, invoice, or other instrument evidencing a
delivery
of gasoline issued by a refiner, or distributor,
or
common carrier for deliveries of gasoline to purchasers who are not
required to hold a license issued pursuant to the motor fuel tax
act, 2000 PA 403, MCL 207.1001 to 207.1170, or this act shall
clearly indicate the name and address and other information
necessary to identify the purchaser of the gasoline.
(7) (8)
A bill, invoice, or other instrument evidencing a
delivery
of gasoline required by subsection (5)
, or
(6) , or
(7)
shall include a guarantee that the
gasoline delivered meets
the requirements in sections 3 and 10d and shall indicate the
concentration range of alcohol in the gasoline, except for alcohols
or ethers that have a molecular weight greater than ethanol and are
not mixed with methanol or ethanol, or both, and shall indicate the
possible presence, without regard to concentration range, of any
alcohols or ethers that have a molecular weight greater than
ethanol and are not mixed with methanol or ethanol, or both.
(8) (9)
A refiner, distributor, common carrier, bulk
purchaser-end user, or retail dealer shall not transfer, sell,
dispense, or offer gasoline for sale unless that gasoline is
visibly free of undissolved water, sediments, and other suspended
matter and is clear and bright at an ambient temperature or 70
degrees Fahrenheit, whichever is greater.
(9) (10)
A person who violates this section or rules
promulgated under this section is liable for a civil fine not to
exceed $10,000.00 for each day of the continuance of the violation.
A civil fine ordered pursuant to this section shall be submitted to
the state treasurer for deposit in the gasoline inspection and
testing fund created by section 8.
Sec. 7. (1) The director shall establish a gasoline
inspection, investigation, and testing program. The purpose of the
inspection, investigation, and testing program is to determine
whether gasoline transferred, sold, dispensed, or offered for sale
in this state meets the requirements provided in this act, to
sample, to investigate allegations of fraud, to inspect and
investigate
violations of the weights and measures act of 1964,
Act
No. 283 of the Public Acts of 1964, being sections 290.601 to
290.634
of the Michigan Compiled Laws 1964
PA 283, MCL 290.601 to
290.634, and whether notice required by section 4 is provided. The
program shall provide for a regular system of monitoring gasoline
sold or offered for sale in this state. The department shall
implement the inspection, investigation, and testing program as
provided in subsection (8). The expenses of operating the program
shall be paid from money in the gasoline inspection and testing
fund created in section 8.
(2) As part of the inspection and testing program the director
shall maintain a 24-hour toll free consumer hot line to receive
consumer complaints regarding vapor-recovery systems and the purity
and quality of gasoline sold or offered for sale in this state.
(3) If the director has reason to believe a violation of
section 5 or rules promulgated under section 5 has occurred, the
director may require a refiner, common carrier, distributor,
storage facility, blender, bulk purchaser-end user, or retail
dealer to provide to the department the original documents
pertaining to the receipt, transfer, delivery, storage, or sale of
gasoline and to allow the original documents to remain in the
possession of the department. If original documents remain in the
possession of the department and the documents are necessary for
conducting business, the department shall provide copies of the
documents to the refiner, common carrier, distributor, blender,
bulk purchaser-end user, or retail dealer upon request. A refiner,
common carrier, distributor, bulk purchaser-end user, blender, or
retail dealer shall preserve information regarding the receipt,
transfer, delivery, or sale of gasoline, including loading tickets,
bills of lading, drop tickets, meter tickets, invoices, and
billings, for 3 years. A retail outlet shall retain on its premises
the original drop tickets and invoices for 1 month before transfer
to another location unless the storage location is easily
accessible from the retail outlet and the original records are
delivered to the retail outlet for receipt by the department within
24 hours after a written request for the records has been given to
the retail outlet.
(4) The director, upon presentation of appropriate
credentials, may do all of the following:
(a) Enter upon or through any retail outlet, bulk purchaser-
end user facility, dispensing facility, or the premises or property
of any refiner, common carrier, or distributor.
(b) Make inspections, take samples, and conduct tests during
any hours the business is operating.
(c) Examine records during normal business hours to determine
compliance with this act.
(5) In addition to the powers provided in this act, the
director has all the powers to enforce this act that the director
has
under the weights and measures act of 1964, Act No. 283 of the
Public
Acts of 1964, being sections 290.601 to 290.634 of the
Michigan
Compiled Laws 1964 PA 283,
MCL 290.601 to 290.634.
(6) The director may transmit any information obtained
pursuant to the inspection and testing program to any other agency
of this state if the information will assist the other agency to
carry out any of the agency's regulatory functions or
responsibilities related to the transfer, sale, dispensing, or
offering of gasoline for sale in this state.
(7) The director may promulgate rules for the purpose of
implementing and enforcing this act.
(8) The department shall implement the inspection and testing
program provided in subsection (1) as follows:
(a) Inspection and testing for standards regarding lead,
alcohol, free water, and sediments within 90 days after the
effective date of this act.
(b) Inspection and testing for any other standards by March
29, 1987.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6453(request no.
06618'06 *) of the 93rd Legislature is enacted into law.