Text: SF00479                           Text: SF00481
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

Senate File 480

Partial Bill History

• Bill Introduced: S.J. 1187
• Committee Report Issued: S.J. 1186
• Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 323.1, subsection 4, Code 1995, is
  1  2 amended to read as follows:
  1  3    4.  "Distributor" means a person who holds a motor fuel
  1  4 distributor's license or a special fuel distributor's license
  1  5 issued as provided as defined in chapter 452A.
  1  6    Sec. 2.  Section 323.2, Code 1995, is amended to read as
  1  7 follows:
  1  8    323.2  DISCONTINUING DISTRIBUTOR FRANCHISE.
  1  9    Notwithstanding the terms, provisions or conditions of any
  1 10 distributor franchise, a franchiser shall not terminate or
  1 11 refuse to renew a distributor franchise except as provided in
  1 12 this chapter.  A franchiser shall not terminate or refuse to
  1 13 renew a distributor franchise unless the franchiser gives to
  1 14 the distributor thirty days' written notice of franchiser's
  1 15 intent to terminate or not renew.  Notice shall be given by
  1 16 restricted certified mail, as defined in section 618.15.  If a
  1 17 distributor, within thirty days after the date of delivery of
  1 18 the notice from the franchiser, applies to the department for
  1 19 a hearing under this chapter, the distributor franchise shall
  1 20 remain in effect pending a final order by the department.  The
  1 21 application filed by the distributor shall state, under oath,
  1 22 that the distributor's license as a motor fuel or special fuel
  1 23 distributor, as the case may be, has not been canceled
  1 24 pursuant to the provisions of chapter 452A, that the
  1 25 distributor has not filed a petition in bankruptcy or been
  1 26 declared bankrupt within six months preceding the filing of
  1 27 the application, that the franchiser has not withdrawn
  1 28 entirely from the sale for resale of motor fuel and special
  1 29 fuel in this state, that there are no past due sums owing by
  1 30 the distributor to the franchiser, and that the distributor
  1 31 has not consented in writing to the termination or nonrenewal
  1 32 of the distributor franchise.
  1 33    Sec. 3.  Section 323.6, subsection 3, Code 1995, is amended
  1 34 to read as follows:
  1 35    3.  The sale or change of ownership of the distributor's
  2  1 business, unless the transfer of the distributor's license
  2  2 pursuant to chapter 452A is denied or the new owner is unable
  2  3 to obtain a license under chapter 452A.
  2  4    Sec. 4.  Section 327A.1, subsection 4, Code 1995, is
  2  5 amended to read as follows:
  2  6    4.  "Transportation for compensation" shall, in addition to
  2  7 include all public transportation, also include and
  2  8 transportation primarily for others by a person, not a
  2  9 distributor licensed, but does not include a distributor as
  2 10 defined under chapter 452A, even though as an incident thereto
  2 11 the person buys the liquids at the point where the
  2 12 transportation originates and sells it at a delivered price at
  2 13 destination and, except as otherwise provided,.  However,
  2 14 transportation for compensation shall include transportation
  2 15 for others by a distributor licensed as defined under chapter
  2 16 452A or liquid products not owned by the distributor.
  2 17    Sec. 5.  Section 327A.15, Code 1995, is amended to read as
  2 18 follows:
  2 19    327A.15  VEHICLES EXCEPTED.
  2 20    Sections 327A.1 to 327A.14 shall not apply to (1)
  2 21 transportation in bulk by a vehicle having a total cargo tank
  2 22 shell capacity of two thousand gallons or less, (2)
  2 23 transportation by a distributor licensed as defined under
  2 24 chapter 452A incidental to and in the regular course of the
  2 25 business as a distributor of petroleum products, or (3)
  2 26 reciprocal exchange between distributors licensed as defined
  2 27 under chapter 452A of transportation pursuant to an exchange
  2 28 of products between distributors so licensed.
  2 29    Sec. 6.  Section 422.110, unnumbered paragraph 1, Code
  2 30 1995, is amended to read as follows:
  2 31    In lieu of the fuel tax refund provided in sections 452A.17
  2 32 to 452A.19, a person or corporation subject to taxation under
  2 33 divisions II or III of this chapter, except persons or
  2 34 corporations licensed under section 452A.4 or 452A.36, may
  2 35 elect to receive an income tax credit for tax years beginning
  3  1 on or after January 1, 1975.  The person or corporation which
  3  2 elects to receive an income tax credit shall cancel its refund
  3  3 permit obtained under section 452A.18 within thirty days after
  3  4 the first day of its tax year or the permit becomes invalid at
  3  5 that time.  For the purposes of this section, "person"
  3  6 includes a person claiming a tax credit based upon the
  3  7 person's pro rata share of the earnings from a partnership or
  3  8 corporation which is not subject to a tax under division II or
  3  9 III of this chapter as a partnership or corporation.  If the
  3 10 election to receive an income tax credit has been made, it
  3 11 remains effective for at least one tax year, and for
  3 12 subsequent tax years unless a change is requested and a new
  3 13 refund permit applied for within thirty days after the first
  3 14 day of the person's or corporation's tax year.  The income tax
  3 15 credit shall be the amount of the Iowa fuel tax paid on fuel
  3 16 purchased by the person or corporation and used as follows:
  3 17    Sec. 7.  Section 422.110, subsection 2, Code 1995, is
  3 18 amended to read as follows:
  3 19    2.  Special fuel as defined in section 452A.33, subsection
  3 20 7, 452A.2 used for the purpose of operation of corn shellers,
  3 21 roller mills and feed grinders mounted on trucks.  
  3 22    Sec. 8.  Section 452A.1, Code 1995, is amended to read as
  3 23 follows:
  3 24    452A.1  SHORT TITLE.
  3 25    This division, plus applicable provisions of division IV of
  3 26 this chapter and any amendments to either shall be known and
  3 27 may be cited as the "Motor Fuel and Special Fuel Tax Law," and
  3 28 as so constituted is hereinafter referred to as this division.
  3 29    Sec. 9.  Section 452A.2, subsections 2 and 5, Code 1995,
  3 30 are amended by striking the subsections and inserting in lieu
  3 31 thereof the following:
  3 32    2.  "Dealer" means a person, other than a distributor, who
  3 33 engages in the business of selling or distributing motor fuel
  3 34 or special fuel to the end user in this state.
  3 35    5.  "Distributor" means a person who acquires tax paid
  4  1 motor fuel or special fuel from a supplier, restrictive
  4  2 supplier or importer, or another distributor for subsequent
  4  3 sale at wholesale and distribution by tank cars or tank trucks
  4  4 or both.  The department may require that the distributor be
  4  5 registered to have terminal purchase rights.
  4  6    Sec. 10.  Section 452A.2, subsection 7, Code 1995, is
  4  7 amended to read as follows:
  4  8    7.  "Licensee" shall mean and include means any a person
  4  9 holding an uncanceled distributor's supplier's, restrictive
  4 10 supplier's, importer's, exporter's, dealer's, user's, or
  4 11 blender's license issued by the department under this division
  4 12 or any prior motor fuel tax law or any other person who
  4 13 possesses fuel for which the tax has not been paid.
  4 14    Sec. 11.  Section 452A.2, subsection 8, Code 1995, is
  4 15 amended to read as follows:
  4 16    8.  "Motor fuel" shall mean (a) all means both of the
  4 17 following:
  4 18    a.  All products commonly or commercially known or sold as
  4 19 gasoline (including casinghead and absorption or natural
  4 20 gasoline) regardless of their classifications or uses; and (b)
  4 21 any.
  4 22    b.  Any liquid advertised, offered for sale, sold for use
  4 23 as, or commonly or commercially used as a fuel for propelling
  4 24 motor vehicles, which when subjected to distillation of
  4 25 gasoline, naphtha, kerosene and similar petroleum products
  4 26 (American Society of Testing Materials Designation D-86), show
  4 27 not less than ten per centum distilled (recovered) below three
  4 28 hundred forty-seven degrees Fahrenheit (one hundred seventy-
  4 29 five degrees Centigrade) and not less than ninety-five per
  4 30 centum distilled (recovered) below four hundred sixty-four
  4 31 degrees Fahrenheit (two hundred forty degrees Centigrade);
  4 32 provided, that the term "motor.
  4 33    "Motor fuel" shall does not include special fuel as defined
  4 34 in section 452A.33, subsection 7, and shall does not include
  4 35 liquefied gases which would not exist as liquids at a
  5  1 temperature of sixty degrees Fahrenheit and a pressure of
  5  2 fourteen and seven-tenths pounds per square inch absolute, nor
  5  3 or naphthas and solvents as hereinafter defined unless the
  5  4 liquefied gases or naphthas and solvents are used as a
  5  5 component in the manufacture, compounding, or blending of a
  5  6 liquid within (b) above paragraph "b", in which event the
  5  7 resulting product shall be deemed to be motor fuel.
  5  8    Sec. 12.  Section 452A.2, subsection 9, Code 1995, is
  5  9 amended by striking the subsection.
  5 10    Sec. 13.  Section 452A.2, Code 1995, is amended by adding
  5 11 the following new subsections:
  5 12    NEW SUBSECTION.  1A.  "Blender" means a person who owns and
  5 13 blends alcohol with gasoline to produce ethanol blended
  5 14 gasoline and blends the product at a nonterminal location.
  5 15 The blender is not restricted to blending alcohol with
  5 16 gasoline.  Products blended with other than grain alcohol are
  5 17 treated and taxed as gasoline.  "Blender" also means a person
  5 18 blending two or more special fuel products at a nonterminal
  5 19 location where the tax has not been paid on all of the
  5 20 products blended.  The blend is taxed as a special fuel.
  5 21    NEW SUBSECTION.  1B.  "Common carrier" or "contract
  5 22 carrier" means a person involved in the movement of motor fuel
  5 23 or special fuel from the terminal or movement of the motor
  5 24 fuel or special fuel imported into this state, who is not an
  5 25 owner of the motor fuel or special fuel.
  5 26    NEW SUBSECTION.  5A.  "Eligible purchaser" means a
  5 27 distributor of motor fuel or special fuel or an end user of
  5 28 special fuel who has purchased a minimum of two hundred forty
  5 29 thousand gallons of special fuel each year in the preceding
  5 30 two years.  Eligible purchasers who elect to make delayed
  5 31 payments to a licensed supplier shall use electronic funds
  5 32 transfer.  Additional requirements for qualifying as an
  5 33 eligible purchaser shall be established by rule.
  5 34    NEW SUBSECTION.  6A.  "Export" means delivery across the
  5 35 boundaries of this state by or for the seller or purchaser
  6  1 from a place of origin in this state.
  6  2    NEW SUBSECTION.  6B.  "Exporter" means a person or other
  6  3 entity who acquires fuel in this state exclusively for export
  6  4 to another state.
  6  5    NEW SUBSECTION.  6C.  "Import" means delivery across the
  6  6 boundaries of this state by or for the seller or purchaser
  6  7 from a place of origin outside this state.
  6  8    NEW SUBSECTION.  6D.  "Importer" means a person who imports
  6  9 motor fuel or undyed special fuel in bulk or transport load
  6 10 into the state by truck, rail, or barge.
  6 11    NEW SUBSECTION.  6E.  "Licensed compressed natural gas and
  6 12 liquefied petroleum gas dealer" means a person in the business
  6 13 of handling untaxed compressed natural gas or liquefied
  6 14 petroleum gas who delivers any part of the fuel into a fuel
  6 15 supply tank of any motor vehicle.
  6 16    NEW SUBSECTION.  6F.  "Licensed compressed natural gas and
  6 17 liquefied petroleum gas user" means a person licensed by the
  6 18 department who dispenses compressed natural gas or liquefied
  6 19 petroleum gas, upon which the special tax has not been
  6 20 previously paid, for highway use from fuel sources owned and
  6 21 controlled by the person into the fuel supply tank of a motor
  6 22 vehicle, or commercial vehicle owned or controlled by the
  6 23 person.
  6 24    NEW SUBSECTION.  11A.  "Restrictive supplier" means a
  6 25 person who imports motor fuel or undyed special fuel into this
  6 26 state in tank wagons or in small tanks not otherwise licensed
  6 27 as an importer.
  6 28    NEW SUBSECTION.  11B.  "Special fuel" means fuel oils and
  6 29 all combustible gases and liquids suitable for the generation
  6 30 of power for propulsion of motor vehicles or turbine-powered
  6 31 aircraft, and includes any substance used for that purpose,
  6 32 except that it does not include motor fuel.
  6 33    NEW SUBSECTION.  11C.  "Supplier" means a person who
  6 34 acquires motor fuel or special fuel by pipeline or marine
  6 35 vessel from a state, territory, or possession of the United
  7  1 States, or from a foreign country for storage at and
  7  2 distribution from a terminal and who is registered under 26
  7  3 U.S.C. } 4101 for tax-free transactions in gasoline, a person
  7  4 who produces in this state or acquires by truck, railcar, or
  7  5 barge for storage at and distribution from a terminal, alcohol
  7  6 or alcohol derivative substances, or a person who produces,
  7  7 manufactures, or refines motor fuel or special fuel in this
  7  8 state.  "Supplier" includes a person who does not meet the
  7  9 jurisdictional connection to this state but voluntarily agrees
  7 10 to act as a supplier for purposes of collecting and reporting
  7 11 the motor fuel or special fuel tax.  "Supplier" does not
  7 12 include a retail dealer or wholesaler who merely blends
  7 13 alcohol with gasoline before the sale or distribution of the
  7 14 product or a terminal operator who merely handles, in a
  7 15 terminal, motor fuel or special fuel consigned to the terminal
  7 16 operator.
  7 17    NEW SUBSECTION.  11D.  "Terminal" means a motor fuel or
  7 18 special fuel storage and distribution facility that is
  7 19 supplied by a pipeline or a marine vessel and from which the
  7 20 fuel may be removed at a rack.  "Terminal" does not include a
  7 21 facility at which motor fuel or special fuel blend stocks and
  7 22 additives are used in the manufacture of products other than
  7 23 motor fuel or special fuel and from which no motor fuel or
  7 24 special fuel are removed.
  7 25    NEW SUBSECTION.  11E.  "Terminal operator" means the person
  7 26 who by ownership or contractual agreement is charged with the
  7 27 responsibility for, or physical control over, and operation of
  7 28 a terminal.  If co-venturers own a terminal, "terminal
  7 29 operator" means the person who is appointed to exercise the
  7 30 responsibility for, or physical control over, and operation of
  7 31 the terminal.
  7 32    NEW SUBSECTION.  12A.  "Use" means the receipt, delivery,
  7 33 or placing of liquefied petroleum gas by a licensed liquefied
  7 34 petroleum gas user into a fuel supply tank of a motor vehicle
  7 35 while the vehicle is in the state, except that with respect to
  8  1 natural gas used as a special fuel, "use" means the receipt,
  8  2 delivery, or placing of the natural gas into equipment for
  8  3 compressing the gas for subsequent delivery into the fuel
  8  4 supply tank of a motor vehicle.
  8  5    NEW SUBSECTION.  12B.  "Withdrawn from terminal" means
  8  6 physical movement from a supplier to a distributor or eligible
  8  7 end user and includes an importer going out of state and
  8  8 obtaining fuel from a terminal and bringing the fuel into the
  8  9 state, and a restrictive supplier bringing fuel into the state
  8 10 even though not purchased directly from a terminal.
  8 11    Sec. 14.  Section 452A.3, Code 1995, is amended by striking
  8 12 the section and inserting in lieu thereof the following:
  8 13    452A.3  LEVY OF EXCISE TAX.
  8 14    1.  For the privilege of operating motor vehicles in this
  8 15 state, an excise tax of twenty cents per gallon is imposed
  8 16 upon the use of all motor fuel used for any purpose except
  8 17 aviation gasoline and except motor fuel containing at least
  8 18 ten percent alcohol distilled from cereal grains grown in the
  8 19 United States for the period ending June 30, 2000, and except
  8 20 as otherwise provided in this division.  For the privilege of
  8 21 operating aircraft in this state an excise tax of eight cents
  8 22 per gallon is imposed on the use of all aviation gasoline.
  8 23    2.  For the privilege of operating motor vehicles in this
  8 24 state, an excise tax of nineteen cents per gallon until June
  8 25 30, 2000, is imposed upon the use of motor fuel containing at
  8 26 least ten percent alcohol distilled from cereal grains grown
  8 27 in the United States and used for any purpose except as
  8 28 otherwise provided in this division.
  8 29    3.  For the privilege of operating motor vehicles or
  8 30 aircraft in this state, there is imposed an excise tax on the
  8 31 use of special fuel in a motor vehicle or aircraft.  The tax
  8 32 rate on special fuel for diesel engines of motor vehicles is
  8 33 twenty-two and one-half cents per gallon.  The rate of tax on
  8 34 special fuel for aircraft is three cents per gallon.  On all
  8 35 other special fuel the per gallon rate is the same as the
  9  1 motor fuel tax.  Indelible dye meeting United States
  9  2 environmental protection agency and internal revenue service
  9  3 regulations must be added to fuel before or upon withdrawal at
  9  4 a terminal or refinery rack for that fuel to be exempt from
  9  5 tax and may be used only for an exempt purpose.
  9  6    4.  For compressed natural gas used as a special fuel, the
  9  7 rate of tax that is equivalent to the motor fuel tax shall be
  9  8 sixteen cents per hundred cubic feet adjusted to a base
  9  9 temperature of sixty degrees Fahrenheit and a pressure of
  9 10 fourteen and seventy-three hundredths pounds per square inch
  9 11 absolute.
  9 12    5.  The tax shall be paid by the following:
  9 13    a.  The supplier, upon the invoiced gross gallonage of all
  9 14 motor fuel or undyed special fuel withdrawn from a terminal
  9 15 for delivery in this state.
  9 16    b.  The person who owns or causes the fuel to be brought
  9 17 into the state by a restrictive supplier or importer, upon the
  9 18 invoiced gross gallonage of motor fuel or undyed special fuel
  9 19 imported.
  9 20    c.  The blender on total invoiced gross gallonage of
  9 21 alcohol or other product sold to be blended with gasoline or
  9 22 special fuel.
  9 23    d.  Any other person who possesses taxable fuel upon which
  9 24 the tax has not been paid to a licensee.
  9 25    However, the tax shall not be imposed or collected under
  9 26 this division with respect to motor fuel or special fuel sold
  9 27 for export or exported from this state to any other state,
  9 28 territory, or foreign country.
  9 29    6.  Thereafter, except as otherwise provided in this
  9 30 division, the per gallon amount of the tax shall be added to
  9 31 the selling price of every gallon of such motor fuel or undyed
  9 32 special fuel sold in this state and shall be collected from
  9 33 the purchaser so that the ultimate consumer bears the burden
  9 34 of the tax.
  9 35    Sec. 15.  Section 452A.4, Code 1995, is amended to read as
 10  1 follows:
 10  2    452A.4  DISTRIBUTOR'S SUPPLIER'S, RESTRICTIVE SUPPLIER'S,
 10  3 IMPORTER'S, EXPORTER'S, DEALER'S, AND USER'S LICENSE.
 10  4    1.  It shall be unlawful for any person to receive sell
 10  5 motor fuel or undyed special fuel within this state or to
 10  6 otherwise act as a distributor supplier, restrictive supplier,
 10  7 importer, exporter, dealer, or user unless the person holds an
 10  8 uncanceled distributor's license issued by the department.  To
 10  9 procure a license a distributor supplier, restrictive
 10 10 supplier, importer, exporter, dealer, or user shall file with
 10 11 the department an application signed under penalty for false
 10 12 certificate and in such form as the department may prescribe,
 10 13 setting forth and complying with all of the following:
 10 14    1. a.  The name under which the distributor licensee will
 10 15 transact business in the this state of Iowa.
 10 16    2. b.  The location, with street number address, of the
 10 17 principal office or place of business of the distributor
 10 18 licensee within this state.
 10 19    3. c.  The name and complete residence address of the owner
 10 20 or the names and addresses of the partners, if the distributor
 10 21 licensee is a partnership, or the names and addresses of the
 10 22 principal officers, if the distributor licensee is a
 10 23 corporation or association.
 10 24    d.  A dealer's or user's license shall be required for each
 10 25 separate place of business or location where compressed
 10 26 natural gas or liquefied petroleum gas is delivered or placed
 10 27 into the fuel supply tank of a motor vehicle.
 10 28    e.  An applicant for an exporter's license shall provide
 10 29 verification as required by the department that the applicant
 10 30 has the appropriate license valid in the state or states into
 10 31 which the motor fuel or undyed special fuel will be exported.
 10 32    2.  a.  The department may deny the issuance of a license
 10 33 to an applicant who is substantially delinquent in the payment
 10 34 of a tax due, or the interest or penalty on the tax,
 10 35 administered by the department.  If the applicant is a
 11  1 partnership, a license may be denied if a partner owes any
 11  2 delinquent tax, interest, or penalty.  If the applicant is a
 11  3 corporation, a license may be denied if any officer having a
 11  4 substantial legal or equitable interest in the ownership of
 11  5 the corporation owes any delinquent tax, interest, or penalty
 11  6 of the applicant corporation.
 11  7    b.  If (a) any The department may deny the issuance of a
 11  8 license if an application for a license to transact business
 11  9 as a distributor supplier, restrictive supplier, importer,
 11 10 exporter, dealer, or user in this state shall be is filed by
 11 11 any a person whose license shall have or registration has been
 11 12 canceled for cause at any time theretofore under the
 11 13 provisions of the this chapter or any prior motor fuel tax
 11 14 law, or (b) if the department shall be of the opinion has
 11 15 reason to believe that such the application is not filed in
 11 16 good faith, or (c) if the application is filed by some person
 11 17 as a subterfuge for the real person in interest whose license
 11 18 or registration shall theretofore have has been canceled for
 11 19 cause under the provisions of this chapter or any prior motor
 11 20 fuel tax law, the department, after a hearing of which the
 11 21 applicant shall have been given fifteen days' notice in
 11 22 writing and in which said.  The applicant shall be given
 11 23 fifteen days' notice in writing of the date of the hearing and
 11 24 shall have the right to appear in person or by counsel and
 11 25 present testimony, shall have and is hereby given the right
 11 26 and authority to refuse to issue to the applicant a
 11 27 distributor's license.
 11 28    Upon the filing of the application, a filing fee of ten
 11 29 dollars shall be paid to the department.
 11 30    3.  a.  The application in proper form having been accepted
 11 31 for filing, the filing fee paid and the other conditions and
 11 32 requirements of this section and division IV having been
 11 33 complied with, the department shall issue to the applicant a
 11 34 license to transact business as a distributor supplier,
 11 35 restrictive supplier, importer, exporter, dealer, or user in
 12  1 this state.  The license shall remain in full force and effect
 12  2 until canceled as provided in this chapter.
 12  3    b.  The license shall not be assignable and shall be valid
 12  4 only for the distributor licensee in whose name it is issued.
 12  5    c.  The department shall keep and file all applications and
 12  6 bonds with an alphabetical index thereof, together with and a
 12  7 record of all licensees.
 12  8    Sec. 16.  Section 452A.5, Code 1995, is amended by striking
 12  9 the section and inserting in lieu thereof the following:
 12 10    452A.5  DISTRIBUTION ALLOWANCE.
 12 11    A supplier shall retain a distribution allowance of not
 12 12 more than one and six-tenths percent of all gallons of motor
 12 13 fuel and a distribution allowance of not more than seven-
 12 14 tenths percent of all gallons of undyed special fuel removed
 12 15 from the terminal during the reporting period for purposes of
 12 16 tax computation under section 452A.8.
 12 17    The distribution allowance shall be prorated between the
 12 18 supplier and the distributor as follows:
 12 19    1.  Motor fuel:  four-tenths percent retained by the
 12 20 supplier, one and two-tenths percent to the distributor.
 12 21    2.  Undyed special fuel:  thirty-five hundredths percent
 12 22 retained by the supplier, thirty-five hundredths percent to
 12 23 the distributor or dealer purchasing directly from a supplier.
 12 24 Gallons exported outside of the state shall not be included in
 12 25 the calculation of the distribution.
 12 26    Sec. 17.  Section 452A.6, Code 1995, is amended to read as
 12 27 follows:
 12 28    452A.6  ETHANOL BLENDED GASOLINE BLENDER'S LICENSE.
 12 29    A person other than a distributor supplier, restrictive
 12 30 supplier, or importer licensed under this division, who blends
 12 31 motor fuel containing at least ten percent gasoline with
 12 32 alcohol distilled from agricultural products cereal grains so
 12 33 that the blend contains at least ten percent alcohol distilled
 12 34 from cereal grains, shall obtain a blender's license.  The
 12 35 license shall be obtained by following the procedure as set
 13  1 forth in under section 452A.4 and the license is subject to
 13  2 the same restrictions as contained in that section.  Each A
 13  3 blender shall maintain records as required by section 452A.10
 13  4 as to motor fuel, alcohol, and ethanol blended gasoline.
 13  5    Sec. 18.  NEW SECTION.  452A.7  FOREIGN SUPPLIERS.
 13  6    The director, upon application, may authorize the
 13  7 collection and reporting of the tax by any supplier not having
 13  8 jurisdictional connections with this state.  A foreign
 13  9 supplier shall be issued a license to collect and report the
 13 10 tax and shall be subject to the same regulations and
 13 11 requirements as suppliers having a jurisdictional connection
 13 12 with the state, or other regulations and agreements as
 13 13 prescribed by the director.
 13 14    Sec. 19.  Section 452A.8, Code 1995, is amended by striking
 13 15 the section and inserting in lieu thereof the following:
 13 16    452A.8  TAX REPORTS &endash; COMPUTATION AND PAYMENT OF TAX &endash;
 13 17 CREDITS.
 13 18    1.  For the purpose of determining the amount of the
 13 19 supplier's, restrictive supplier's, or importer's tax
 13 20 liability, a supplier or restrictive supplier shall file, not
 13 21 later than the last day of the month following the month in
 13 22 which this division becomes effective and not later than the
 13 23 last day of each calendar month thereafter, and an importer
 13 24 shall file a report semi-monthly with the department, signed
 13 25 under penalty for false certification.  For an importer for
 13 26 the reporting period from the first day of the month through
 13 27 the fifteenth of the month, the report is due on the last day
 13 28 of the month.  For an importer for the reporting period from
 13 29 the sixteenth of the month through the last day of the month
 13 30 the report is due on the fifteenth day of the following month.
 13 31 The reports shall include the following:
 13 32    a.  A statement of the number of invoiced gallons of motor
 13 33 fuel and undyed special fuel withdrawn from the terminal by
 13 34 the licensee within this state during the preceding calendar
 13 35 month in such detail as determined by the department.  This
 14  1 includes on-site blending reports at the terminal.
 14  2    b.  For information purposes only, a supplier, restrictive
 14  3 supplier, or importer shall show the number of invoiced
 14  4 gallons of dyed special fuel withdrawn from the terminal.
 14  5    c.  A statement showing the deductions authorized in this
 14  6 division in such detail and with such supporting evidence as
 14  7 required by the department.
 14  8    d.  Any other information the department may require for
 14  9 the enforcement of this chapter.
 14 10    2.  At the time of filing of a report, a supplier,
 14 11 restrictive supplier, or importer shall pay to the department
 14 12 the full amount of the fuel tax due for the preceding calendar
 14 13 month computed as follows:
 14 14    a.  From the total number of invoiced gallons of motor fuel
 14 15 or undyed special fuel withdrawn from the terminal by the
 14 16 licensee within the state during the preceding calendar month
 14 17 the following deductions shall be made:
 14 18    (1)  The gallonage of motor fuel or undyed special fuel
 14 19 withdrawn from a terminal by a licensee and exported outside
 14 20 Iowa.
 14 21    (2)  For suppliers only, the one and six-tenths percent of
 14 22 the number of gallons of motor fuel or seven-tenths percent of
 14 23 the number of gallons of undyed special fuel of the invoiced
 14 24 gallons of motor fuel or undyed special fuel withdrawn from a
 14 25 terminal within this state during the preceding calendar
 14 26 month.
 14 27    b.  The number of invoiced gallons remaining after the
 14 28 deductions in paragraph "a" shall be multiplied by the per
 14 29 gallon fuel tax rate.
 14 30    c.  The tax due under paragraph "b" shall be the amount of
 14 31 fuel tax due from the supplier, restrictive supplier, or
 14 32 importer for the preceding reporting period.  The director may
 14 33 require by rule that the payment of taxes by suppliers,
 14 34 restrictive suppliers, and importers be made by electronic
 14 35 funds transfer.  The director may allow a tax float by rule
 15  1 where the eligible purchaser is not required to pay the tax to
 15  2 the supplier until one business day prior to the date the tax
 15  3 is due.  Any credit calculated by the supplier, restrictive
 15  4 supplier, or importer may be applied against the amount due.
 15  5 A licensed supplier who is unable to recover the tax from an
 15  6 eligible purchaser is not liable for the tax, upon proper
 15  7 documentation, and may credit the amount of unpaid tax against
 15  8 a later remittance of tax.  Under this provision, a supplier
 15  9 does not qualify for a credit if the purchaser did not elect
 15 10 to use the eligible purchaser status, or otherwise does not
 15 11 qualify to be an eligible purchaser.  To qualify for the
 15 12 credit, the supplier must notify the department of the
 15 13 uncollectible account no later than ten calendar days after
 15 14 the due date for payment of the tax.  If a supplier sells
 15 15 additional motor fuel or undyed special fuel to a delinquent
 15 16 eligible purchaser after notifying the department that the
 15 17 supplier has an uncollectible debt with that eligible
 15 18 purchaser, the limited liability provision does not apply to
 15 19 the additional fuel.  The supplier is liable for tax collected
 15 20 from the purchaser.
 15 21    d.  The director may require by rule that reports be filed
 15 22 by electronic transmission.
 15 23    e.  The tax for compressed natural gas and liquefied
 15 24 petroleum gas delivered by a licensed compressed natural gas
 15 25 or liquefied petroleum gas dealer for use in this state shall
 15 26 attach at the time of the delivery and shall be collected by
 15 27 the dealer from the consumer and paid to the department as
 15 28 provided in this chapter.  The tax, with respect to compressed
 15 29 natural gas and liquefied petroleum gas acquired by a consumer
 15 30 in any manner other than by delivery by a licensed compressed
 15 31 natural gas or liquefied petroleum gas dealer into a fuel
 15 32 supply tank of a motor vehicle, attaches at the time of the
 15 33 use of the fuel and shall be paid over to the department by
 15 34 the consumer as provided in this chapter.
 15 35    The department shall adopt rules governing the dispensing
 16  1 of compressed natural gas and liquefied petroleum gas by
 16  2 licensed dealers and licensed users.  For purposes of this
 16  3 paragraph "dealer" and "user" means a licensed compressed
 16  4 natural gas or liquefied petroleum gas dealer or user and
 16  5 "fuel" means compressed natural gas or liquefied petroleum
 16  6 gas.  The department shall require that all pumps located at
 16  7 dealer locations and user locations through which liquefied
 16  8 petroleum gas can be dispensed, metered, inspected, tested for
 16  9 accuracy, and sealed and licensed by the state department of
 16 10 agriculture and land stewardship, and that fuel delivered into
 16 11 the fuel supply tank of any motor vehicle shall be dispensed
 16 12 only through tested metered pumps and may be sold without
 16 13 temperature correction or corrected to a temperature of sixty
 16 14 degrees.  If the metered gallonage is to be temperature-
 16 15 corrected, only a temperature-compensated meter shall be used.
 16 16 Natural gas used as fuel shall be delivered into compressing
 16 17 equipment through sealed meters certified for accuracy by the
 16 18 department of agriculture and land stewardship.
 16 19    All gallonage which is not for highway use, dispensed
 16 20 through metered pumps as licensed under this section on which
 16 21 fuel tax is not collected, must be substantiated by exemption
 16 22 certificates as provided by the department or by valid
 16 23 exemption certificates provided by the dealers, signed by the
 16 24 purchaser, and retained by the dealer.  A "valid exemption
 16 25 certificate provided by a dealer" is an exemption certificate
 16 26 which is in the form prescribed by the director to assist a
 16 27 dealer to properly account for fuel dispensed for which tax is
 16 28 not collected and which is complete and correct according to
 16 29 the requirements of the director.
 16 30    For the privilege of purchasing liquefied petroleum gas,
 16 31 dispensed through licensed metered pumps, on a basis exempt
 16 32 from the tax, the purchaser shall sign exemption certificates
 16 33 for the gallonage claimed which is not for highway use.
 16 34    The department shall disallow all sales of gallonage which
 16 35 is not for highway use unless proof is established by the
 17  1 certificate.  Exemption certificates shall be retained by the
 17  2 dealer for a period of three years.
 17  3    (1)  For the purpose of determining the amount of liability
 17  4 for fuel tax, each dealer and each user shall file with the
 17  5 department not later than the last day of the month following
 17  6 the month in which this division becomes effective and not
 17  7 later than the last day of each calendar month thereafter a
 17  8 monthly tax return certified under penalties for false
 17  9 certification.  The return shall show, with reference to each
 17 10 location at which fuel is delivered or placed by the dealer or
 17 11 user into a fuel supply tank of any motor vehicle during the
 17 12 next preceding calendar month, information as required by the
 17 13 department.
 17 14    (2)  The amount of tax due shall be computed by multiplying
 17 15 the appropriate tax rate per gallon by the number of gallons
 17 16 of fuel delivered or placed by the dealer or user into supply
 17 17 tanks of motor vehicles.
 17 18    (3)  The return shall be accompanied by remittance in the
 17 19 amount of the tax due for the month in which the fuel was
 17 20 placed into the supply tanks of motor vehicles.
 17 21    3.  For the purpose of determining the amount of the tax
 17 22 liability on alcohol blended to produce ethanol blended
 17 23 gasoline, each licensed blender shall, not later than the last
 17 24 day of each month following the month in which the blending is
 17 25 done, file with the department a monthly report, signed under
 17 26 penalty for false certificate, containing information required
 17 27 by rules adopted by the director.
 17 28    4.  A person who possesses fuel or uses fuel in a motor
 17 29 vehicle upon which no tax has been paid by a licensee in this
 17 30 state is subject to reporting and paying the applicable tax.
 17 31    Sec. 20.  Section 452A.9, Code 1995, is amended to read as
 17 32 follows:
 17 33    452A.9  REPORT FROM PERSONS NOT LICENSED AS DISTRIBUTORS
 17 34 SUPPLIERS, RESTRICTIVE SUPPLIERS, OR IMPORTERS.
 17 35    Every person other than a licensed distributor supplier,
 18  1 restrictive supplier, or importer, who shall purchase
 18  2 purchases, bring brings into this state, or otherwise acquire
 18  3 acquires within this state motor fuel or undyed special fuel,
 18  4 not otherwise exempted, with respect to which such the person
 18  5 has knowingly not paid or incurred liability to pay either to
 18  6 a licensee or to a dealer the motor fuel or special fuel tax,
 18  7 shall be subject with respect to the motor fuel to all the
 18  8 provisions of this division that apply to distributors on
 18  9 suppliers, restrictive suppliers, and importers of motor fuel
 18 10 received by them in this state or undyed special fuel and
 18 11 shall make the same reports and tax payments thereon and be
 18 12 subject to the same penalties for delinquent reporting or
 18 13 nonreporting or delinquent payment or nonpayment as apply to
 18 14 distributors suppliers, restrictive suppliers, and importers.
 18 15    Sec. 21.  Section 452A.10, Code 1995, is amended to read as
 18 16 follows:
 18 17    452A.10  REQUIRED DISTRIBUTOR AND DEALER RECORDS.
 18 18    Each A motor fuel distributor or special fuel supplier,
 18 19 restrictive supplier, importer, exporter, blender, dealer,
 18 20 user, common carrier, contract carrier, or terminal shall
 18 21 maintain and keep for a period of three years, records of all
 18 22 transactions by which the distributor receives, uses, sells,
 18 23 delivers or otherwise disposes of motor fuel within this
 18 24 state, supplier, restrictive supplier, or importer withdraws
 18 25 from a terminal within this state or imports into this state
 18 26 motor fuel or undyed special fuel together with invoices,
 18 27 bills of lading, and other pertinent records and papers as may
 18 28 reasonably be required by the department for the
 18 29 administration of this division.
 18 30    If in the normal conduct of a distributor's supplier's,
 18 31 restrictive supplier's, importer's, exporter's, blender's,
 18 32 dealer's, user's, common carrier's, contract carrier's, or
 18 33 terminal's business the distributor's records are maintained
 18 34 and kept at an office outside the this state, of Iowa, it
 18 35 shall be a sufficient compliance with this section if the
 19  1 records are shall be made available for audit and examination
 19  2 by the department at the office outside Iowa this state, but
 19  3 such the audit and examination outside Iowa shall be without
 19  4 expense to the this state.
 19  5    Each dealer distributor handling motor fuel or special fuel
 19  6 in this state shall maintain and keep for a period of two
 19  7 three years records of all motor fuel or undyed special fuel
 19  8 purchased or otherwise acquired by the dealer distributor,
 19  9 together with delivery tickets, invoices, and bills of lading,
 19 10 and such any other pertinent records as required by the
 19 11 department shall require.
 19 12    The department, after an audit and examination of the
 19 13 records of a distributor or dealer required to be maintained
 19 14 under this section, may authorize their disposal, the
 19 15 authorization to be in writing after upon the written request
 19 16 by of the supplier, restrictive supplier, importer, exporter,
 19 17 blender, dealer, user, carrier, terminal, or distributor or
 19 18 dealer.
 19 19    Sec. 22.  Section 452A.12, Code 1995, is amended to read as
 19 20 follows:
 19 21    452A.12  LOADING AND DELIVERY EVIDENCE ON TRANSPORTATION
 19 22 EQUIPMENT.
 19 23    1.  There A serially numbered manifest shall be carried on
 19 24 every vehicle, except small tank wagons, while in use in
 19 25 transportation service, a serially numbered manifest in form
 19 26 satisfactory to the department on which shall be entered the
 19 27 following information as to the cargo of motor fuel or special
 19 28 fuel being moved in the vehicle:  The date and place of
 19 29 loading, the place to be unloaded, the person for whom it is
 19 30 to be delivered, the nature and kind of product, the amount of
 19 31 product, and other information called for in the forms
 19 32 prescribed or approved required by the department.  The
 19 33 manifest for small tank wagons shall be retained at the home
 19 34 office.  The manifest covering each load transported, upon
 19 35 consummation of the delivery, shall be completed by showing
 20  1 the date and place of actual delivery and the person to whom
 20  2 actually delivered and shall be kept as a permanent record for
 20  3 a period of three years.  However, the record of the manifest
 20  4 of past cargoes need not be carried on the conveyance but must
 20  5 shall be preserved by the carrier for the inspection of by the
 20  6 department.  A carrier subject to this subsection when
 20  7 distributing for a licensee may with the approval of the
 20  8 department when distributing for a licensee substitute the
 20  9 loading and delivery evidence required in subsection 2 for the
 20 10 manifest.
 20 11    2.  Every distributor or other A person while transporting
 20 12 motor fuel or undyed special fuel from a refinery or marine or
 20 13 pipeline terminal in this state or from a point outside this
 20 14 state via over the highways of this state in service other
 20 15 than that covered in under subsection 1 of this section shall
 20 16 carry in the vehicle a loading invoice showing the true name
 20 17 and address of the seller or consignor, the date and place of
 20 18 loading and the kind and quantity of motor fuel or special
 20 19 fuel loaded, together with invoices showing the kind and
 20 20 quantity of each delivery therefrom, and the name and address
 20 21 of each purchaser or consignee.
 20 22    Sec. 23.  Section 452A.15, Code 1995, is amended to read as
 20 23 follows:
 20 24    452A.15  TRANSPORTATION REPORTS &endash; REFINERY AND PIPELINE
 20 25 AND MARINE TERMINAL REPORTS.
 20 26    1.  Every railroad and common carrier or contract motor
 20 27 carrier transporting motor fuel or special fuel either in
 20 28 interstate or intrastate commerce within this state and every
 20 29 person transporting motor fuel or special fuel by whatever
 20 30 manner from a point outside this state to any point in this
 20 31 into this state shall, subject to penalties for false
 20 32 certificate, report to the department on forms prescribed by
 20 33 the department all deliveries of motor fuel or special fuel to
 20 34 points within this state other than refineries or marine or
 20 35 pipeline terminals.  If any supplier, restrictive supplier,
 21  1 importer, or distributor or dealer is also engaged in the
 21  2 transportation of motor fuel or special fuel for others, the
 21  3 supplier, restrictive supplier, importer, or distributor or
 21  4 dealer shall make the same reports as required of common
 21  5 carriers and contract carriers.
 21  6    The report shall cover monthly periods and shall show as to
 21  7 each delivery:
 21  8    a.  The name and address of the person to whom delivery was
 21  9 actually and in fact made.
 21 10    b.  The name and address of the originally named consignee,
 21 11 if delivered to any other than the originally named consignee.
 21 12    c.  The point of origin, the point of delivery, and the
 21 13 date of delivery.
 21 14    d.  The number and initials of each tank car and the number
 21 15 of gallons contained therein in the tank car, if shipped by
 21 16 rail.
 21 17    e.  The name of the boat, barge, or vessel, and the number
 21 18 of gallons contained therein in the boat, barge, or vessel, if
 21 19 shipped by water.
 21 20    f.  The registration number of each tank truck and the
 21 21 number of gallons contained therein in the tank truck, if
 21 22 transported by motor truck.
 21 23    g.  The manner, if delivered by other means, in which the
 21 24 delivery is made.
 21 25    h.  Such additional Additional information relative to
 21 26 shipments of motor fuel or special fuel as the department may
 21 27 require.
 21 28    If any a person required under this section to file
 21 29 transportation reports is a licensee under this division and
 21 30 if the information required in the transportation report is
 21 31 contained in any other report rendered by the person under
 21 32 this division, no a separate transportation report of that
 21 33 information shall not be required.
 21 34    2.  Every A person operating storage facilities at a
 21 35 refinery or at a marine or pipeline terminal in this state
 22  1 shall monthly make an a monthly accounting to the department
 22  2 on forms prescribed by the department of all motor fuel,
 22  3 alcohol, and undyed special fuel withdrawn from the refinery
 22  4 storage and all motor fuel, alcohol, and undyed special fuel
 22  5 delivered into, withdrawn from and on hand in the refinery or
 22  6 terminal storage.
 22  7    3.  The reports required in this section shall be for
 22  8 information purposes only and the department may in its
 22  9 discretion waive the filing of any of these reports not
 22 10 necessary for proper administration of this division.  The
 22 11 reports required in this section shall be certified under
 22 12 penalty for false certificate and filed with the department
 22 13 within the time allowed for filing of distributors' suppliers'
 22 14 and restrictive suppliers' reports of motor fuel received or
 22 15 special fuel withdrawn from a terminal within this state or
 22 16 imported into this state.
 22 17    Sec. 24.  Section 452A.17, Code 1995, is amended to read as
 22 18 follows:
 22 19    452A.17  REFUND TO NONLICENSEE &endash; FUEL USED OTHER THAN IN
 22 20 WATERCRAFT, AIRCRAFT, OR MOTOR VEHICLES REFUNDS.
 22 21    1.  A person other than a distributor, dealer or user
 22 22 licensed under this chapter who uses motor fuel or undyed
 22 23 special fuel for any of the purpose of operating or propelling
 22 24 farm tractors, corn shellers, roller mills, truck-mounted feed
 22 25 grinders, stationary gas engines, for producing denatured
 22 26 alcohol within the state, for cleaning or dyeing or for any
 22 27 purpose other than in watercraft or aircraft or for propelling
 22 28 motor vehicles operated or intended to be operated upon the
 22 29 public highways nontaxable purposes listed in this subsection,
 22 30 and who has paid the motor fuel or special fuel tax on the
 22 31 fuel either directly to the department or by having the tax
 22 32 added to the price of the fuel, and who has a refund permit,
 22 33 upon presentation to and approval by the department of a claim
 22 34 for refund, shall be reimbursed and repaid the amount of the
 22 35 tax which the claimant has paid on the gallonage so used,
 23  1 except that the amount of a refund payable under this division
 23  2 may be applied by the department against any tax liability
 23  3 outstanding on the books of the department against the
 23  4 claimant.
 23  5    a.  The refund is allowable for motor fuel or undyed
 23  6 special fuel sold to or used for the following:
 23  7    (1)  The United States or any agency or instrumentality of
 23  8 the United States or where collection of the tax would be
 23  9 prohibited by the Constitution of the United States or the
 23 10 laws of the United States or by the Constitution of the State
 23 11 of Iowa.
 23 12    (2)  An Iowa urban transit system which is used for a
 23 13 purpose specified in section 452A.57, subsection 6.
 23 14    (3)  A regional transit system, the state, any of its
 23 15 agencies, or any political subdivision of the state which is
 23 16 used for a purpose specified in section 452A.57, subsection
 23 17 11, or for public purposes, including fuel sold for the
 23 18 transportation of pupils of approved public and nonpublic
 23 19 schools by a carrier who contracts with the public school
 23 20 under section 285.5.
 23 21    (4)  Fuel used in unlicensed vehicles, stationary engines,
 23 22 and implements used in agricultural production.
 23 23    (5)  Fuel used for producing denatured alcohol.
 23 24    (6)  Fuel used for idle time, power takeoffs, reefer units,
 23 25 pumping credits, transport diversions, fuel lost through
 23 26 casualty, exports by eligible purchasers, and blending errors
 23 27 for special fuel.  The department shall adopt rules setting
 23 28 forth specific requirements relating to refunds for idle time,
 23 29 power takeoffs, reefer units, pumping credits and transport
 23 30 diversions, fuel lost through casualty, and blending errors
 23 31 for special fuel.
 23 32    (7)  A bona fide commercial fisher, licensed and operating
 23 33 under an owner's certificate for commercial fishing gear
 23 34 issued pursuant to section 482.4.
 23 35    (8)  For motor fuel or special fuel placed in motor
 24  1 vehicles and used, other than on a public highway, in the
 24  2 extraction and processing of natural deposits, without regard
 24  3 to whether the motor vehicle was registered under section
 24  4 321.18.  An applicant under this subparagraph shall maintain
 24  5 adequate records for a period of three years beyond the date
 24  6 of the claim.
 24  7    b.  Every A claim for refund is subject to the following
 24  8 conditions:
 24  9    1. (1)  The claim shall be on a form prescribed by the
 24 10 department and be certified by the claimant under penalty for
 24 11 false certificate.
 24 12    2. (2)  The claim shall have attached thereto the original
 24 13 invoice or other include proof as prescribed by the department
 24 14 showing the purchase of the motor fuel or undyed special fuel
 24 15 on which a refund is claimed.
 24 16    3. (3)  An invoice shall not be acceptable in support of a
 24 17 claim for refund unless it is a separate serially numbered
 24 18 invoice covering no more than one purchase of motor fuel or
 24 19 undyed special fuel, prepared by the seller on a form approved
 24 20 by the department which will prevent erasure or alteration;
 24 21 nor and unless it is legibly written with no corrections or
 24 22 erasures and shows the date of sale, the name and address of
 24 23 the seller and of the purchaser, the kind of fuel, the
 24 24 gallonage in figures, the per gallon price of the motor fuel
 24 25 or undyed special fuel, the total purchase price including the
 24 26 Iowa motor fuel or undyed special fuel tax and that the total
 24 27 purchase price including tax has been paid; provided, that as.
 24 28 However, with respect to refund invoices made on a billing
 24 29 machine, the department may waive any of the requirements of
 24 30 this subsection subparagraph.
 24 31    4. (4)  The claim shall state the gallonage of motor fuel
 24 32 or undyed special fuel that was used or will be used by the
 24 33 claimant other than in watercraft or aircraft or to propel
 24 34 motor vehicles, the manner in which the motor fuel or undyed
 24 35 special fuel was used or will be used and the equipment in
 25  1 which it was used or will be used.
 25  2    5. (5)  The claim shall also state whether or not the
 25  3 claimant used fuel for watercraft or aircraft or to propel
 25  4 motor vehicles from the same tanks or receptacles in which the
 25  5 claimant kept the motor fuel or undyed special fuel on which
 25  6 the refund is claimed.
 25  7    6.  A refund shall not be paid with respect to any motor
 25  8 fuel or special fuel taken out of this state in fuel supply
 25  9 tanks of watercraft, aircraft, or motor vehicles.
 25 10    7.  A refund shall not be paid with respect to motor fuel
 25 11 or special fuel purchased more than four calendar months prior
 25 12 to the date the claim was filed with the department.
 25 13    8.  A refund shall not be paid with respect to motor fuel
 25 14 or special fuel used in the performance of a contract which is
 25 15 paid out of state funds unless the contract for the work
 25 16 contains a certificate made under penalty for false
 25 17 certificate that the estimate, bid or price to be paid for the
 25 18 work includes no amount representing motor fuel or special
 25 19 fuel tax subject to refund.
 25 20    9. (6)  If an original invoice is lost or destroyed the
 25 21 department may in its discretion accept a copy identified and
 25 22 certified by the seller as being a true copy of the original.
 25 23    10. (7)  The right of a person to a refund under this
 25 24 section shall not be assignable.  Claim shall be made by and
 25 25 the amount of the refund when determined by the department
 25 26 shall be paid to the person who purchased the motor fuel or
 25 27 undyed special fuel as shown in the supporting invoice unless
 25 28 that person designates another person as an agent for purposes
 25 29 of filing and receiving the refund for idle time, power
 25 30 takeoff, reefer units, pumping credits, and transport
 25 31 diversions.
 25 32    11. (8)  In order to verify the validity of a claim for
 25 33 refund the department shall have the right to require the
 25 34 claimant to furnish such additional proof of validity as the
 25 35 department may determine and to examine the books and records
 26  1 of the claimant.  Failure of a claimant to furnish the
 26  2 claimant's books and records for examination shall constitute
 26  3 a waiver of all rights to refund related to the transaction in
 26  4 question.
 26  5    12.  Refunds shall be made of motor vehicle fuel taxes paid
 26  6 on motor fuel or special fuel placed in motor vehicles and
 26  7 used, other than on public highways, in the extraction and
 26  8 processing of natural deposits, without regard to whether such
 26  9 motor vehicles are registered under section 321.18.  An
 26 10 applicant for a refund under this subsection must maintain
 26 11 adequate records for a period of three years beyond the filing
 26 12 of the claim.  The department will pay the claim upon the
 26 13 presentation of proof which may reasonably be required.
 26 14    13.  A bona fide commercial fisher, licensed and operating
 26 15 under an owner's certificate for commercial fishing gear
 26 16 issued pursuant to section 482.4 is entitled to receive a
 26 17 motor fuel or special fuel tax refund under this section.
 26 18    14. 4.  In lieu of the refund provided in this section, a
 26 19 person may receive an income tax credit as provided in chapter
 26 20 422, division IX, but only as to motor fuel or undyed special
 26 21 fuel not used in motor vehicles, aircraft, or watercraft.
 26 22    5.  a.  A claim for refund shall not be allowed which is in
 26 23 an amount of less than ten dollars unless the claimant has
 26 24 accumulated sixty dollars in credits for one calendar year.  A
 26 25 claim for refund may be filed anytime the sixty dollar minimum
 26 26 has been met within the calendar year.  If the sixty dollar
 26 27 minimum has not been met in the calendar year, the credit
 26 28 shall be claimed on the taxpayer's income tax return unless
 26 29 the claimant is not required to file an income tax return in
 26 30 which case a refund shall be allowed.  Once the sixty dollar
 26 31 minimum has been met, the claim for refund must be filed
 26 32 within one year.
 26 33    b.  A refund shall be be paid with respect to any motor
 26 34 fuel or undyed special fuel taken out of this state in supply
 26 35 tanks of watercraft, aircraft, or motor vehicles.
 27  1    c.  A refund shall not be paid with respect to motor fuel
 27  2 or special fuel used in the performance of a contract which is
 27  3 paid out of state funds unless the contract for the work
 27  4 contains a certificate made under penalty for false
 27  5 certificate that the estimate, bid, or price to be paid for
 27  6 the work does not include any amount representing motor fuel
 27  7 or special fuel tax subject to refund.
 27  8    Sec. 25.  Section 452A.18, Code 1995, is amended to read as
 27  9 follows:
 27 10    452A.18  REFUND PERMIT.
 27 11    A person shall not claim a refund under section 452A.17 or
 27 12 section 452A.21 until the person has obtained a refund permit
 27 13 from the department.  A special permit shall be obtained by
 27 14 applicants an applicant claiming a refund under this chapter
 27 15 on account of for motor fuel used to blend ethanol blended
 27 16 gasoline.  Application for a refund permit shall be made to
 27 17 the department on a form provided by the department, shall be
 27 18 certified by the applicant under penalty for false
 27 19 certificate, and shall contain among other things, the name,
 27 20 address, and occupation of the applicant, the nature of the
 27 21 applicant's business, and a sufficient description for
 27 22 identification of the machines and equipment in which is to be
 27 23 used the motor fuel for which refund may be claimed under the
 27 24 permit or undyed special fuel is to be used.  Each permit
 27 25 shall bear a separate number and each claim for refund shall
 27 26 bear the number of the permit under which it is made.  The
 27 27 department shall keep a permanent record of all permits issued
 27 28 and a cumulative record of the amount of refund claimed and
 27 29 paid under each.  A refund permit shall continue in effect
 27 30 until it is revoked or becomes invalid.
 27 31    Sec. 26.  Section 452A.21, Code 1995, is amended to read as
 27 32 follows:
 27 33    452A.21  REFUND &endash; CREDIT &endash; PENALTY.
 27 34    Persons other than distributors not licensed under this
 27 35 division who blend motor fuel and alcohol to produce ethanol
 28  1 blended gasoline may file for a refund for the difference
 28  2 between taxes paid on the motor fuel purchased to produce
 28  3 ethanol blended gasoline and the tax due on the ethanol
 28  4 blended gasoline blended.  If, during any month, a person
 28  5 licensed as a distributor under this division uses tax paid
 28  6 motor fuel to blend ethanol blended gasoline and the refund
 28  7 otherwise due under this section is greater than the
 28  8 distributor's licensee's total tax liability for that month,
 28  9 the distributor will be licensee is entitled to a credit.  The
 28 10 claim for credit shall be filed as part of the report required
 28 11 by section 452A.8.
 28 12    In order to obtain the refund established by this section,
 28 13 the person shall do all of the following:
 28 14    1.  Obtain a blender's permit as provided in section
 28 15 452A.18.
 28 16    2.  File a refund claim containing the information as
 28 17 required by the department and certified by the claimant under
 28 18 penalty for false certificate.
 28 19    3.  Retain invoices meeting the requirements of section
 28 20 452A.17, subsection 3 1, paragraph "b", subparagraph (3), for
 28 21 the motor fuel purchased.
 28 22    4.  Retain invoices for the purchase of alcohol.
 28 23    A refund or credit memorandum will not be issued unless the
 28 24 claim is filed within ninety days following the end of the
 28 25 month during which the ethanol blended gasoline was actually
 28 26 blended.
 28 27    If a person files an incorrect refund claim, there shall be
 28 28 added a penalty of five percent to the amount by which the
 28 29 amount claimed and refunded exceeds the amount actually due.
 28 30 If a fraudulent refund claim is filed with intent to evade the
 28 31 tax, the penalty shall be fifty percent in lieu of five
 28 32 percent.  The person shall also pay interest on the excess
 28 33 refunded at a rate of three-fourths of one percent per month
 28 34 counting each fraction of a month as an entire month, computed
 28 35 from the date the refund was issued to the date the excess
 29  1 refund is repaid to the state.
 29  2    Sec. 27.  Section 452A.54, unnumbered paragraph 1, Code
 29  3 1995, is amended to read as follows:
 29  4    Fuel tax liability under this division shall be computed on
 29  5 the total number of gallons of each kind of motor fuel and
 29  6 special fuel consumed in the operation in Iowa by commercial
 29  7 motor vehicles subject to this division at the same rate for
 29  8 each kind of fuel as would be applicable if taxed under
 29  9 division I or division II of this chapter.  A refund against
 29 10 the fuel tax liability so computed shall be allowed, on excess
 29 11 Iowa motor fuel purchased, in the amount of fuel tax paid at
 29 12 the prevailing rate per gallon set out under division I or
 29 13 division II of this chapter on motor fuel and special fuel
 29 14 consumed by commercial motor vehicles, the operation of which
 29 15 is subject to this division.
 29 16    Sec. 28.  Section 452A.57, subsections 1 and 5, Code 1995,
 29 17 are amended to read as follows:
 29 18    1.  "Appropriate state agency" or "state agency" means the
 29 19 department of revenue and finance or the state department of
 29 20 transportation, whichever is responsible for control,
 29 21 maintenance, or supervision of the power, requirement, or duty
 29 22 referred to in the provision.  The department of revenue and
 29 23 finance shall administer the provisions of divisions division
 29 24 I and II of this chapter, and the state department of
 29 25 transportation shall administer the provisions of division
 29 26 III.  The state department of transportation shall have
 29 27 enforcement authority for division I as agreed upon by the
 29 28 director of revenue and finance and the director of
 29 29 transportation.
 29 30    5.  "Fuel taxes" means and includes the per gallon excise
 29 31 taxes imposed under divisions division I, II and III of this
 29 32 chapter with respect to motor fuel and undyed special fuel.
 29 33    Sec. 29.  Section 452A.59, Code 1995, is amended to read as
 29 34 follows:
 29 35    452A.59  ADMINISTRATIVE RULES.
 30  1    The department of revenue and finance is and the state
 30  2 department of transportation are authorized and empowered to
 30  3 make such reasonable adopt rules under chapter 17A, relating
 30  4 to the administration and enforcement of this chapter as the
 30  5 department may deem needful deemed necessary by the
 30  6 departments.  These rules shall be effective when the
 30  7 provisions of chapter 17A have been complied with.
 30  8    Sec. 30.  Section 452A.60, Code 1995, is amended to read as
 30  9 follows:
 30 10    452A.60  FORMS OF REPORT, REFUND CLAIM AND RECORDS.
 30 11    The department of revenue and finance or the state
 30 12 department of transportation shall prescribe and furnish all
 30 13 forms, as applicable, upon which reports and applications
 30 14 shall be made and claims for refund presented under this
 30 15 chapter and may prescribe forms of record to be kept by motor
 30 16 fuel distributors, motor fuel dealers, motor fuel suppliers,
 30 17 restrictive suppliers, importers, exporters, blenders, common
 30 18 carriers, contract carriers, special fuel licensed compressed
 30 19 natural gas and liquefied petroleum gas dealers, special fuel
 30 20 and users, terminal operators, and interstate commercial motor
 30 21 vehicle operators.
 30 22    Whenever in this chapter the The department of revenue and
 30 23 finance or the state department of transportation is
 30 24 authorized to prescribe the form of record to be kept, the
 30 25 appropriate state agency may in lieu thereof approve the a
 30 26 form of record being kept, and shall approve the form of
 30 27 record where it furnishes in, other than a prescribed form, if
 30 28 the required information is presented in a reasonably
 30 29 accessible form the information which is required and which
 30 30 substantially complies with the prescribed form.
 30 31    Sec. 31.  Section 452A.62, Code 1995, is amended to read as
 30 32 follows:
 30 33    452A.62  INSPECTION OF RECORDS.
 30 34    The department of revenue and finance or the state
 30 35 department of transportation, whichever is applicable, is
 31  1 hereby given the authority within the time prescribed for
 31  2 keeping records (1) to do the following:
 31  3    1.  to To examine, during the usual business hours of the
 31  4 day, the records, books, papers, receipts, invoices, storage
 31  5 tanks, and any other equipment of (a) any of the following:
 31  6    a.  A distributor, dealer, purchaser, or supplier,
 31  7 restrictive supplier, importer, exporter, blender, terminal
 31  8 operator, common, contract or other carrier, or contract
 31  9 carrier, pertaining to motor fuel received, used, sold,
 31 10 delivered, or otherwise disposed of, or (b) of any special
 31 11 fuel or undyed special fuel withdrawn from a terminal or
 31 12 brought into this state.
 31 13    b.  A licensed compressed natural gas or liquefied
 31 14 petroleum gas dealer, special fuel user, or person supplying
 31 15 special fuel compressed natural gas or liquefied petroleum gas
 31 16 to any a licensed compressed natural gas or liquefied
 31 17 petroleum gas dealer or user of special fuel and (c) of any.
 31 18    c.  An interstate operator of motor vehicles to verify the
 31 19 truth and accuracy of any statement, report, or return, or to
 31 20 ascertain whether or not the taxes imposed by this chapter
 31 21 have been paid; (d).
 31 22    d.  any Any person selling fuel oil fuels that can be used
 31 23 for highway use; and (2).
 31 24    2.  to To examine the records, books, papers, receipts, and
 31 25 invoices of any distributor, special fuel dealer or special
 31 26 fuel user supplier, restrictive supplier, importer, exporter,
 31 27 terminal operator, licensed compressed natural gas or
 31 28 liquefied petroleum gas dealer or user, or any other person
 31 29 who possesses fuel upon which the tax has not been paid to
 31 30 determine financial responsibility for the payment of the
 31 31 taxes imposed by this chapter.
 31 32    If any a person within the purview of under this section
 31 33 shall refuse refuses access to pertinent records, books,
 31 34 papers, receipts, invoices, storage tanks, or any other
 31 35 equipment, then the appropriate state agency shall certify the
 32  1 names and facts to any court of competent jurisdiction, and
 32  2 the said court shall enter such an order in the premises as
 32  3 the enforcement of to enforce this chapter and justice shall
 32  4 require.
 32  5    Sec. 32.  Section 452A.63, unnumbered paragraph 1, Code
 32  6 1995, is amended to read as follows:
 32  7    All information obtained by the department of revenue and
 32  8 finance or the state department of transportation from the
 32  9 examining of reports or records required to be filed or kept
 32 10 under the provisions of this chapter shall be treated as
 32 11 confidential and shall not be divulged except to other state
 32 12 officers, a member or members of the general assembly, or any
 32 13 duly appointed committee of either or both houses of the
 32 14 general assembly, or to a representative of the state having
 32 15 some responsibility in connection with the collection of the
 32 16 taxes imposed or in proceedings brought under the provisions
 32 17 of this chapter; provided, however, that the appropriate state
 32 18 agency shall make available for public information on or
 32 19 before the last day of the month following the month in which
 32 20 the tax is required to be paid the names of the distributors
 32 21 and as to each of them the total gallons received in the state
 32 22 and separately, the received gallons (1) exported or sold for
 32 23 export, (2) sold tax-free in the state to entities that are
 32 24 exempt from the tax and (3) sold tax-free in the state to
 32 25 entities required to report and account for the tax.  The
 32 26 department of revenue and finance shall also make available to
 32 27 the public information with respect to special fuel dealers
 32 28 and users and as to each of them the gallonage used and taxes
 32 29 paid.  The department of revenue and finance or the state
 32 30 department of transportation, upon request of officials
 32 31 entrusted with enforcement of the motor vehicle fuel tax laws
 32 32 of the federal government or any other state, may forward to
 32 33 such officials any pertinent information which the appropriate
 32 34 state agency may have relative to motor fuel and special fuel
 32 35 provided the officials of the other state furnish like
 33  1 information.
 33  2    Sec. 33.  Section 452A.71, Code 1995, is amended to read as
 33  3 follows:
 33  4    452A.71  REFUNDS TO PERSONS OTHER THAN DISTRIBUTORS AND
 33  5 SPECIAL FUEL COMPRESSED NATURAL GAS AND LIQUEFIED PETROLEUM
 33  6 GAS DEALERS AND USERS.
 33  7    Except as provided in section 452A.54, any person other
 33  8 than a licensed distributor, licensed special fuel dealer or
 33  9 licensed special fuel user person who has paid or has had
 33 10 charged to the person's account with a distributor, dealer, or
 33 11 special fuel dealer user fuel taxes imposed under this chapter
 33 12 with respect to motor fuel or undyed special fuel in excess of
 33 13 one hundred gallons, which is subsequently lost or destroyed,
 33 14 while the person is the owner, through leakage, fire,
 33 15 explosion, lightning, flood, storm, or other casualty, except
 33 16 evaporation, shrinkage, or unknown causes, the person shall be
 33 17 entitled to a refund of the tax so paid or charged.  To
 33 18 qualify for the refund, the person shall notify the department
 33 19 of revenue and finance in writing of the loss or destruction
 33 20 and the gallonage lost or destroyed within ten days from the
 33 21 date of discovery of the loss or destruction.  Within sixty
 33 22 days after filing the notice, the person shall file with the
 33 23 department of revenue and finance an affidavit sworn to by the
 33 24 person having immediate custody of the motor fuel or undyed
 33 25 special fuel at the time of the loss or destruction setting
 33 26 forth in full the circumstances and amount of the loss or
 33 27 destruction and such other information as the department of
 33 28 revenue and finance may require.  Any refund payable under
 33 29 this section may be applied by the department against any tax
 33 30 liability outstanding on the books of the department against
 33 31 the claimant.
 33 32    Sec. 34.  Section 452A.73, Code 1995, is amended to read as
 33 33 follows:
 33 34    452A.73  EMBEZZLEMENT OF FUEL TAX MONEY &endash; PENALTY.
 33 35    Every sale of motor fuel in this state and every sale of
 34  1 undyed special fuel dispensed by the seller into a fuel supply
 34  2 tank of a motor vehicle shall, unless otherwise provided, be
 34  3 presumed to include as a part of the purchase price the fuel
 34  4 tax due the state of Iowa under the provisions of this
 34  5 chapter.  Every person collecting fuel tax money as part of
 34  6 the selling price of motor fuel or undyed special fuel, shall
 34  7 hold the tax money in trust for the state of Iowa unless the
 34  8 fuel tax on the fuel has been previously paid to the state of
 34  9 Iowa.  Any person receiving fuel tax money in trust and
 34 10 failing to remit it to the department of revenue and finance
 34 11 on or before time required shall be guilty of theft.
 34 12    Sec. 35.  Section 452A.74, Code 1995, is amended to read as
 34 13 follows:
 34 14    452A.74  UNLAWFUL ACTS &endash; PENALTY.
 34 15    It shall be unlawful:
 34 16    1.  For any person to knowingly fail, neglect, or refuse to
 34 17 make any required return or statement or pay over fuel taxes
 34 18 as herein required under this section.
 34 19    2.  For any person to knowingly make any false, incorrect,
 34 20 or materially incomplete record required to be kept or made
 34 21 under the provisions of this chapter, to refuse to offer
 34 22 required books and records to the department of revenue and
 34 23 finance or the state department of transportation for
 34 24 inspection on demand or to refuse to permit the department of
 34 25 revenue and finance or the state department of transportation
 34 26 to examine the person's motor fuel or undyed special fuel
 34 27 storage tanks and handling or dispensing equipment.
 34 28    3.  For any seller to issue or any purchaser to receive and
 34 29 retain any incorrect or false invoice or sales ticket in
 34 30 connection with the sale or purchase of motor fuel or undyed
 34 31 special fuel.
 34 32    4.  For any claimant to alter any invoice or sales ticket,
 34 33 whether the invoice or sales ticket is to be used to support a
 34 34 claim for refund or income tax credit or not, provided,
 34 35 however, if a claimant's refund permit shall have has been
 35  1 revoked for cause as provided in section 452A.19 such the
 35  2 revocation shall be serve as a bar to prosecution for
 35  3 violation of this subsection.
 35  4    5.  For any person to act as a motor fuel distributor,
 35  5 special fuel supplier, restrictive supplier, importer,
 35  6 exporter, blender, compressed natural gas or liquefied
 35  7 petroleum gas dealer or special fuel user without the required
 35  8 license.
 35  9    6.  For any person to use motor fuel or, undyed special
 35 10 fuel, or illegal use of dyed special fuel in the fuel supply
 35 11 tank of a vehicle with respect to which the person knowingly
 35 12 has not paid or had charged to the person's account with a
 35 13 distributor or dealer, or with respect to which does not
 35 14 within the time required in this chapter report and pay the
 35 15 applicable fuel tax.
 35 16    7.  For any special fuel licensed compressed natural gas or
 35 17 liquefied petroleum gas dealer or user to dispense special
 35 18 fuel compressed natural gas or liquefied petroleum gas into
 35 19 the fuel supply tank of any motor vehicle without collecting
 35 20 the fuel tax.
 35 21    8.  For special fuel dealers or special fuel distributors
 35 22 to deliver special fuel on a tax paid basis into a tank with a
 35 23 capacity greater than one thousand fifty gallons.
 35 24    9. 8.  Any delivery by a distributor of special fuel
 35 25 compressed natural gas or liquefied petroleum gas to a
 35 26 compressed natural gas or liquefied petroleum gas dealer or
 35 27 user for the purpose of evading the state tax on special fuels
 35 28 compressed natural gas or liquefied petroleum gas, into
 35 29 facilities other than those licensed above knowing that said
 35 30 the fuel will be used as special fuel for highway use shall
 35 31 constitute a violation of this section.  Any compressed
 35 32 natural gas or liquefied petroleum gas dealer or user for
 35 33 purposes of evading the state tax on special fuel compressed
 35 34 natural gas or liquefied petroleum gas, who allows a
 35 35 distributor to place special fuel compressed natural gas or
 36  1 liquefied petroleum gas for highway use in facilities other
 36  2 than those licensed above will, shall also be deemed in
 36  3 violation of this section.
 36  4    A person found guilty of an offense specified in this
 36  5 section is guilty of a fraudulent practice.  For purposes of
 36  6 determining the place of trial, the situs of an offense
 36  7 specified in this section is in the county of the residence of
 36  8 the person charged with the offense.  However, if the person
 36  9 is a nonresident or the person's residence cannot be
 36 10 determined, the situs of the offense is in Polk county.
 36 11 Prosecution for an offense specified in this section shall be
 36 12 commenced within six years following its commission.
 36 13    Sec. 36.  NEW SECTION.  452A.74A  PENALTY AND ENFORCEMENT
 36 14 PROVISIONS.
 36 15    In addition to the tax or additional tax, the following
 36 16 fines and penalties shall apply:
 36 17    1.  ILLEGAL USE OF DYED FUEL.  The illegal use of dyed fuel
 36 18 in the supply tank of a motor vehicle shall result in a civil
 36 19 penalty assessed against the owner or operator of the motor
 36 20 vehicle as follows:
 36 21    a.  A two hundred dollar fine for the first violation.
 36 22    b.  A five hundred dollar fine for a second violation
 36 23 within three years of the first violation.
 36 24    c.  A one thousand dollar fine for third and subsequent
 36 25 violations within three years of the first violation.
 36 26    2.  ILLEGAL IMPORTATION OF UNTAXED FUEL.  A person who
 36 27 illegally imports motor fuel or undyed special fuel without a
 36 28 valid importer's license or supplier's license shall be
 36 29 assessed a civil penalty as provided in this subsection.
 36 30 However, the owner or operator of the importing vehicle shall
 36 31 not be guilty of violating this subsection if it is shown by
 36 32 the owner or operator that the owner or operator reasonably
 36 33 did not know or reasonably should not have known of the
 36 34 illegal importation.
 36 35    a.  For a first violation, the importing vehicle shall be
 37  1 detained and a fine of two thousand dollars shall be paid
 37  2 before the vehicle will be released.  The owner or operator of
 37  3 the importing vehicle or the owner of the fuel may be held
 37  4 liable for payment of the fine.
 37  5    b.  For a second violation, the importing vehicle shall be
 37  6 detained and a fine of five thousand dollars shall be paid
 37  7 before the vehicle will be released.  The owner or operator of
 37  8 the importing vehicle or the owner of the fuel may be held
 37  9 liable to pay the fine.
 37 10    c.  For third and subsequent violations, the importing
 37 11 vehicle and the fuel shall be seized and a fine of ten
 37 12 thousand dollars shall be paid before the vehicle will be
 37 13 released.  The owner or operator of the importing vehicle or
 37 14 the owner of the fuel may be held liable to pay the fine.
 37 15    d.  If the owner or operator of the importing vehicle or
 37 16 the owner of the fuel fail to pay the tax and fine for a first
 37 17 or second offense, the importing vehicle and the fuel may be
 37 18 seized.  The department of revenue and finance, the state
 37 19 department of transportation, or any peace officer, at the
 37 20 request of either department, may seize the vehicle and the
 37 21 fuel.
 37 22    e.  If the operator or owner of the importing vehicle or
 37 23 the owner of the fuel move the vehicle or the fuel after the
 37 24 vehicle has been detained and a sticker has been placed on the
 37 25 vehicle stating that "This vehicle cannot be moved until the
 37 26 tax, penalty, and interest have been paid to the Department of
 37 27 Revenue and Finance", an additional penalty of five thousand
 37 28 dollars shall be assessed against the operator or owner of the
 37 29 importing vehicle or the owner of the fuel.
 37 30    f.  For purposes of this subsection, "vehicle" means as
 37 31 defined in secton 321.1.
 37 32    3.  IMPROPER RECEIPT OF FUEL CREDIT OR REFUND.  If a person
 37 33 files an incorrect refund claim, in addition to the amount of
 37 34 the claim, a penalty of ten percent shall be added to the
 37 35 amount by which the amount claimed and refunded exceeds the
 38  1 amount actually due and shall be paid to the department.  If a
 38  2 person knowingly files a fraudulent refund claim with the
 38  3 intent to evade the tax, the penalty shall be seventy-five
 38  4 percent in lieu of the ten percent.  The person shall also pay
 38  5 interest on the excess refunded at the rate per month
 38  6 specified in section 421.7, counting each fraction of a month
 38  7 as an entire month, computed from the date the refund was
 38  8 issued to the date the excess refund is repaid to the state.
 38  9    4.  ILLEGAL HEATING OF FUEL.  The deliberate heating of
 38 10 taxable motor fuel or special fuel by dealers prior to
 38 11 consumer sale is a simple misdemeanor.
 38 12    5.  PREVENTION OF INSPECTION.  The department of revenue
 38 13 and finance or the state department of transportation may
 38 14 conduct inspections for coloration, markers, and shipping
 38 15 papers at any place where taxable fuel is or may be loaded
 38 16 into transport vehicles, produced, or stored.  Any attempts by
 38 17 a person to prevent, stop, or delay an inspection of fuel or
 38 18 shipping papers by authorized personnel shall be subject to a
 38 19 civil penalty of not more than one thousand dollars per
 38 20 occurrence.  Any law enforcement officer or department of
 38 21 revenue and finance or state department of transportation
 38 22 employee may physically inspect, examine or otherwise search
 38 23 any tank, reservoir, or other container that can or may be
 38 24 used for the production, storage, or transportation of any
 38 25 type of fuel.
 38 26    6.  FAILURE TO CONSPICUOUSLY LABEL A FUEL PUMP.  A retailer
 38 27 who does not conspicuously label a fuel pump or other delivery
 38 28 facility as required by the internal revenue service, that
 38 29 dispenses dyed diesel fuel so as to notify customers that it
 38 30 contains dyed diesel fuel, shall pay to the department a
 38 31 penalty of one hundred dollars per occurrence.
 38 32    7.  FALSE OR FRAUDULENT RETURN.  Any person, including an
 38 33 officer of a corporation or a manager of a limited liability
 38 34 company, who is required to make, render, sign, or verify any
 38 35 report or return required by this chapter and who makes a
 39  1 false or fraudulent report, or who fails to file a report or
 39  2 return with the intent to evade the tax, shall be guilty of a
 39  3 fraudulent practice.  Any person who aids, abets, or assists
 39  4 another person in making any false or fraudulent return or
 39  5 false statement in any return with the intent to evade payment
 39  6 of tax shall be guilty of a fraudulent practice.
 39  7    Sec. 37.  Section 452A.76, Code 1995, is amended to read as
 39  8 follows:
 39  9    452A.76  ENFORCEMENT AUTHORITY.
 39 10    Authority is given to the department of revenue and finance
 39 11 to enforce the provisions of this chapter except division III.
 39 12 Employees of the department of revenue and finance designated
 39 13 as enforcement employees have the power of peace officers in
 39 14 the performance of such duties.
 39 15    Authority to enforce division III is given to the state
 39 16 department of transportation.  Employees of the department of
 39 17 transportation designated enforcement employees have the power
 39 18 of peace officers in the performance of their duties; however,
 39 19 they shall not be considered members of the Iowa highway
 39 20 safety patrol.  The department of transportation shall furnish
 39 21 enforcement employees with necessary equipment and supplies in
 39 22 the same manner as provided in section 80.18, including
 39 23 uniforms which are distinguishable in color and design from
 39 24 those of the Iowa highway safety patrol.  Enforcement
 39 25 employees shall be furnished and shall conspicuously display
 39 26 badges of authority.
 39 27    It is the duty of all peace officers to see that the
 39 28 provisions of this chapter are not violated, and to respond to
 39 29 the call of the department of revenue and finance and state
 39 30 department of transportation to make investigations in their
 39 31 respective counties and report to the department of revenue
 39 32 and finance and state department of transportation.  Peace
 39 33 officers are authorized to stop a conveyance suspected to be
 39 34 illegally transporting motor fuel on the highways, to
 39 35 investigate the cargo for that purpose and to seize and
 40  1 impound the cargo and conveyance when it appears that the
 40  2 conveyance is being operated in violation of the provisions of
 40  3 this chapter.
 40  4    Authority is given to the department of revenue and
 40  5 finance, the state department of transportation, the
 40  6 department of public safety, and any peace officer as
 40  7 requested by such departments to enforce the provisions of
 40  8 division I and this division of this chapter.  The department
 40  9 of revenue and finance shall adopt rules providing for
 40 10 enforcement under division I and this division of this chapter
 40 11 regarding the use of motor fuel or special fuel in implements
 40 12 of husbandry.  Enforcement personnel or requested peace
 40 13 officers are authorized to stop a conveyance suspected to be
 40 14 illegally transporting motor fuel or special fuel on the
 40 15 highways, to investigate the cargo and also have the authority
 40 16 to inspect or test the fuel in the supply tank of a conveyance
 40 17 to determine if legal fuel is being used to power the
 40 18 conveyance.  The operator of any vehicle transporting motor
 40 19 fuel or special fuel shall, upon request, produce and offer
 40 20 for inspection the manifest or loading and delivery invoices
 40 21 pertaining to the load and trip in question and shall permit
 40 22 the authority to inspect and measure the contents of the
 40 23 vehicle.  If the vehicle operator fails to produce the
 40 24 evidence or if, when produced, the evidence fails to contain
 40 25 the required information and it appears that there is an
 40 26 attempt to evade payment of the fuel tax, the vehicle operator
 40 27 will be subject to the penalty provisions contained in section
 40 28 452A.74A.  For purposes of this section, "vehicle" means as
 40 29 defined in section 321.1.
 40 30    Sec. 38.  Section 452A.80, Code 1995, is amended to read as
 40 31 follows:
 40 32    452A.80  MICROFILM OR PHOTOGRAPHIC COPIES &endash; ORIGINALS
 40 33 DESTROYED.
 40 34    The appropriate state agency shall have the power and
 40 35 authority to record, copy or reproduce by any photographic,
 41  1 photostatic, microfilm, microcard, miniature photographic or
 41  2 other process which accurately reproduces or forms a durable
 41  3 medium for so reproducing the original of any forms or records
 41  4 pertaining to motor fuel tax or undyed special fuel tax, or
 41  5 any paper or document with respect to refund of such the tax,
 41  6 and when such.  If the forms and records shall have been so
 41  7 reproduced in accordance with this section, the state agency
 41  8 shall have the power to may destroy the originals and such the
 41  9 reproductions shall be competent evidence in any court in
 41 10 accordance with the provision of section 622.30.
 41 11    Sec. 39.  Section 452A.84, Code 1995, is amended to read as
 41 12 follows:
 41 13    452A.84  TRANSFER TO STATE GENERAL FUND.
 41 14    The treasurer of state shall transfer from the motor fuel
 41 15 tax fund to the general fund of the state that portion of
 41 16 moneys collected under this chapter attributable to motor fuel
 41 17 used in watercraft computed as follows:
 41 18    1.  Determine monthly the total amount of motor fuel tax
 41 19 collected under this chapter and multiply the amount by nine-
 41 20 tenths of one percent.
 41 21    2.  Subtract from the figure computed pursuant to
 41 22 subsection 1 of this section three percent of the figure for
 41 23 administrative costs and further subtract from the figure the
 41 24 amounts refunded to commercial fishers pursuant to section
 41 25 452A.17, subsection 13 1, paragraph "a", subparagraph (7).
 41 26 All moneys remaining after claims for refund and the cost of
 41 27 administration have been made shall be transferred to the
 41 28 general fund of the state.
 41 29    Sec. 40.  Section 452A.85, Code 1995, is amended to read as
 41 30 follows:
 41 31    452A.85  TAX PAYMENT FOR STORED MOTOR FUEL, ETHANOL BLENDED
 41 32 GASOLINE, AND SPECIAL FUEL, COMPRESSED NATURAL GAS, AND
 41 33 LIQUEFIED PETROLEUM GAS &endash; PENALTY.
 41 34    1.  Persons having title to motor fuel, ethanol blended
 41 35 gasoline, or undyed special fuel, compressed natural gas, or
 42  1 liquefied petroleum gas in storage and held for sale on the
 42  2 effective date of an increase in the excise tax rate imposed
 42  3 on motor fuel, ethanol blended gasoline, or undyed special
 42  4 fuel, compressed natural gas, or liquefied petroleum gas under
 42  5 this chapter shall be subject to an inventory tax based upon
 42  6 the gallonage in storage as of the close of the business day
 42  7 next preceding the effective date of the increased excise tax
 42  8 rate of motor fuel, ethanol blended gasoline, or undyed
 42  9 special fuel, compressed natural gas, or liquefied petroleum
 42 10 gas which will be subject to the increased excise tax rate.
 42 11    2.  Persons subject to the tax imposed under this section
 42 12 shall take an inventory to determine the gallonage in storage
 42 13 for purposes of determining the tax and shall report that the
 42 14 gallonage on forms provided by the department of revenue and
 42 15 finance and pay the tax due within thirty days of the
 42 16 prescribed inventory date.  The department of revenue and
 42 17 finance shall adopt rules pursuant to chapter 17A as are
 42 18 necessary to carry out the provisions of administer this
 42 19 section.
 42 20    3.  The amount of the inventory tax is equal to the
 42 21 inventory tax rate times the gallonage in storage as
 42 22 determined under subsection 1.  The inventory tax rate is
 42 23 equal to the difference of the increased excise tax rate less
 42 24 the previous excise tax rate.
 42 25    Sec. 41.  Section 452A.86, Code 1995, is amended to read as
 42 26 follows:
 42 27    452A.86  METHOD OF DETERMINING GALLONAGE.
 42 28    The exclusive method of determining gallonage of any
 42 29 purchases or sales of motor fuel and, undyed special fuel,
 42 30 compressed natural gas, or liquefied petroleum gas as defined
 42 31 in this chapter and distillate fuels shall be on a gross
 42 32 volume basis.  A temperature-adjusted or other method shall
 42 33 not be used, except as it applies to liquefied petroleum gas
 42 34 and the sale or exchange of petroleum products between
 42 35 petroleum refiners.  All invoices, bills of lading, or other
 43  1 records of sale or purchase and all reports or records
 43  2 required to be made, kept, and maintained by a distributor or
 43  3 dealer supplier, restrictive supplier, importer, exporter,
 43  4 blender, or compressed natural gas or liquefied petroleum gas
 43  5 dealer or user shall be made, kept, and maintained on the
 43  6 gross volume basis.  For purposes of this section, "distillate
 43  7 fuels" means any fuel oil, gas oil, topped crude oil, or other
 43  8 petroleum oils derived by refining or processing crude oil or
 43  9 unfinished oils which have a boiling range at atmospheric
 43 10 pressure which falls completely or in part between five
 43 11 hundred fifty and twelve hundred degrees Fahrenheit.
 43 12    Sec. 42.  INVENTORY OF UNDYED SPECIAL FUEL.  Licensed
 43 13 dealers and users shall take inventory of the gallonage of
 43 14 undyed special fuel held in storage as of the effective date
 43 15 of this Act and pay to the department of revenue and finance,
 43 16 as specified in section 452A.85, subsection 2, a tax of
 43 17 twenty-two and one-half cents per gallon.
 43 18    Sec. 43.  Sections 452A.13, 452A.16, 452A.20, and 452A.31
 43 19 through 452A.38, Code 1995, are repealed.
 43 20    Sec. 44.  This Act takes effect January 1, 1996.  All
 43 21 licenses and permits existing prior to the effective date of
 43 22 this Act, except for licenses and permits issued under
 43 23 division III of chapter 452A, shall be canceled at that time,
 43 24 notwithstanding the provisions of chapter 17A.  
 43 25                           EXPLANATION
 43 26    This bill changes the point of taxation for motor fuel and
 43 27 special fuel.  Current law requires that a distributor of
 43 28 motor fuel be licensed and that the motor fuel tax be imposed
 43 29 upon and collected from the distributor based upon a formula
 43 30 as provided in section 452A.8.  The bill makes it unlawful for
 43 31 any person to sell motor fuel or undyed special fuel within
 43 32 the state or to otherwise act as a supplier, restrictive
 43 33 supplier, importer, exporter, dealer, or user unless the
 43 34 person has a supplier's, restrictive supplier's, importer's,
 43 35 exporter's, dealer's, or user's license issued by the
 44  1 department of revenue and finance.  It adds new definitions
 44  2 for a blender, common or contract carrier, eligible purchaser,
 44  3 export, exporter, import, importer, licensed compressed
 44  4 natural gas and liquefied petroleum gas dealer, licensed
 44  5 compressed natural gas and liquefied petroleum gas user,
 44  6 restrictive supplier, special fuel, supplier, terminal,
 44  7 terminal operator, use, and withdrawn from terminal.
 44  8    This bill provides that tax on all motor fuel or undyed
 44  9 special fuel will be collected by the person who owns the fuel
 44 10 immediately prior to being withdrawn from the terminal or by
 44 11 the person who causes the fuel to be imported into this state.
 44 12 This bill provides that motor fuel tax be imposed in
 44 13 accordance with the following:
 44 14    1. For a supplier, upon the invoiced gallonage of all motor
 44 15 fuel or undyed special fuel withdrawn from a terminal for
 44 16 delivery in this state.
 44 17    2. For a person who owns or causes fuel to be brought into
 44 18 the state by a restrictive supplier or importer, upon the
 44 19 invoiced gross gallonage of motor fuel or undyed special fuel
 44 20 that is imported.
 44 21    3.  For the blender, on total invoiced gross gallonage of
 44 22 alochol or other product sold to be blended with motor fuel or
 44 23 special fuel.
 44 24    4.  Any other person who possesses taxable fuel upon which
 44 25 the tax has not been paid to a licensee.  The bill allows the
 44 26 department of revenue and finance to assume responsibility for
 44 27 collection of the fuel tax from the purchaser if the seller is
 44 28 unable to collect the tax.
 44 29    The bill provides that indelible dye meeting United States
 44 30 environmental protection agency and internal revenue service
 44 31 regulations must be added to fuel before or upon withdrawl at
 44 32 a terminal or refinery rack in order for the fuel to be exempt
 44 33 from the motor fuel tax and may be used only for exempt
 44 34 purposes.
 44 35    Suppliers and distributors are allowed to prorate a
 45  1 distribution allowance of not more than one and six-tenths
 45  2 percent of all gallons of motor fuel, with four-tenths percent
 45  3 retained by the supplier and one and two-tenths percent to the
 45  4 distributor and a distribution allowance of not more than
 45  5 seven-tenths percent of all gallons of undyed special fuel
 45  6 removed from a terminal during the reporting period, with
 45  7 thirty-five hundredths percent retained by the supplier and
 45  8 thirty-five hundreths percent to the distributor or dealer
 45  9 purchasing directly from the supplier.
 45 10    The bill requires that terminal operators report the state
 45 11 of destination, date, terminal, purchaser, purchaser's federal
 45 12 identification number, bill of lading number, product sold and
 45 13 total gallons sold for each load of fuel removed from the
 45 14 terminal.  Suppliers and restrictive suppliers are required to
 45 15 submit a monthly report showing state of destination, date,
 45 16 terminal, purchaser, purchaser's federal identification
 45 17 number, bill of lading number, product sold and total gallons
 45 18 sold for each load of fuel removed from the terminal.
 45 19 Exchanges within a terminal are tax free.  Importers are
 45 20 required to submit reports twice monthly, blenders are
 45 21 required to submit a supplier/importer report for fuel blended
 45 22 off-site of the terminal.  All reports are due on the last day
 45 23 of the month following the month the fuel was removed from the
 45 24 terminal or imported except for importers, and the director of
 45 25 revenue and finance may require that reports be filed by
 45 26 electronic transmission.  A supplier, restrictive supplier, or
 45 27 importer is required to pay the amount of tax due at the time
 45 28 of filing the report.
 45 29    Current law allowed for a claim for a refund if the amount
 45 30 was greater than $10.  This bill allows a claim for a refund
 45 31 when the claimant has accumulated $60 in credits and provides
 45 32 that if the $60 credit has not been met in the calendar year,
 45 33 the credit may be claimed on the taxpayer's income tax return.
 45 34    The bill provides penalties and enforcement provisions.
 45 35 For the illegal use of dyed fuel in the supply tank of a
 46  1 vehicle, the owner or operator shall be assessed a civil
 46  2 penalty of $200 for the first violation, $500 for the second
 46  3 violation within three years of the first violation, and
 46  4 $1,000 for a third and subsequent violation within three years
 46  5 of the first violation.  For the illegal importation of motor
 46  6 fuel or undyed special fuel without a valid importer's or
 46  7 supplier's license, the owner or operator of the importing
 46  8 vehicle or the owner of the fuel shall be subject to a $2,000
 46  9 civil penalty and detention of the importing vehicle until the
 46 10 fine is paid.  However, the owner of operator of the importing
 46 11 vehicle will not be guilty if the owner or operator reasonably
 46 12 did not know or reasonably should not have known of the
 46 13 illegal importation.  For a second violation, the importing
 46 14 vehicle is detained and a fine of $5,000 must be paid before
 46 15 the vehicle will be released.  For a third and subsequent
 46 16 violation, the importing vehicle and the fuel will be seized
 46 17 and a fine of $10,000 must be paid before the vehicle is
 46 18 released.  An additional $5,000 fine is imposed if the vehicle
 46 19 or the fuel is moved before the tax, penalty, and interest is
 46 20 paid.  The bill provides that a person who files an incorrect
 46 21 refund claim shall be subject to a 10 percent penalty for the
 46 22 amount by which the amount claimed and refunded exceeds the
 46 23 amount due.  If a person files a fraudulent refund claim, the
 46 24 penalty is 75 percent of the amount by which the amount
 46 25 claimed and refunded exceeds the amount due.  The bill
 46 26 provides that the deliberate heating of taxable motor fuel or
 46 27 special fuel by dealers prior to consumer sale is a simple
 46 28 misdemeanor and that anyone who attempts to prevent, stop, or
 46 29 delay an inspection of fuel or shipping papers is subject to a
 46 30 civil penalty of not more than $1,000.  The bill provides that
 46 31 a retailer who does not conspicuously label a fuel pump or
 46 32 other delivery facility is subject to a $100 penalty.  
 46 33 LSB 2317SV 76
 46 34 js/jj/8
     

Text: SF00479                           Text: SF00481
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

Iowa General Assembly

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