68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 322

                         House Bill 2365

Sponsored by Representative COURTNEY


                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Allows Director of Agriculture to establish testing procedures
for inspecting motor vehicle fuels for compliance with fuel
quality standards.
  Prohibits retail dealer from selling or offering for sale motor
vehicle fuel that violates rules adopted pursuant to Act.
  Requires retail dealer to display sign on or near dispensing
device that accurately identifies motor vehicle fuel dispensed
from device.
  Provides for inspection fee.
  Appropriates moneys to Department of Agriculture to enforce
provisions of Act.
  Imposes maximum $15,000 civil penalty for violation of fuel
standards, notice requirements or rules under this Act.

                        A BILL FOR AN ACT
Relating to vehicle fuels; creating new provisions; amending ORS
  561.144 and 646.905; and appropriating money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 646.905 is amended to read:
  646.905. As used in ORS 646.910 to 646.920:
  (1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
  (2) 'Co-solvent' means an alcohol other than methanol which is
blended with either methanol or ethanol or both to minimize phase
separation in gasoline.
   { +  (3) 'Director' means the Director of Agriculture. + }
    { - (3) - }   { + (4) + } 'Ethanol' means ethyl alcohol, a
flammable liquid having the formula C2H5OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
    { - (4) - }   { + (5) + } 'Gasoline' means any fuel sold for
use in spark ignition engines whether leaded or unleaded.
    { - (5) - }   { + (6) + } 'Methanol' means methyl alcohol, a
flammable liquid having the formula CH3OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
   { +  (7) 'Motor vehicle fuel' means gasoline, diesel or any
other liquid product used for the generation of power in an
internal combustion engine, except aviation jet fuels, liquified
petroleum or natural gases. + }
    { - (6) - }   { + (8) + } 'Motor vehicles' means all
vehicles, vessels, watercraft, engines, machines or mechanical
contrivances that are propelled by internal combustion engines or
motors.
    { - (7) - }   { + (9) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which gasoline is sold or offered for sale to the public.
    { - (8) - }   { + (10) + } 'Wholesale dealer' means any
person engaged in the sale of gasoline if the seller knows or has
reasonable cause to believe the buyer intends to resell the
gasoline in the same or an altered form to another.
  SECTION 2.  { + Sections 3 to 15 of this Act are added to and
made a part of ORS 646.910 to 646.920. + }
  SECTION 3.  { + Notwithstanding ORS 646.910 to 646.920, it is
unlawful for:
  (1) A retail dealer to sell or offer for sale any motor vehicle
fuel which violates any rule or standard adopted pursuant to
section 7 of this 1995 Act.
  (2) A retail dealer to sell or offer for sale any motor vehicle
fuel from a dispensing device which does not have a sign
displayed which accurately identifies the motor vehicle fuel
being dispensed from that device in violation of section 4 of
this 1995 Act. + }
  SECTION 4.  { + A retail dealer who sells or offers for sale
any motor vehicle fuel shall conspicuously display a sign on or
near each dispensing device, using descriptive commercial terms,
that accurately identifies the motor vehicle fuel being dispensed
from that device. The sign shall be posted in such a manner as
the Director of Agriculture determines will adequately inform the
purchaser of the motor vehicle fuel's identity. + }
  SECTION 5.  { + (1) The Director of Agriculture may, upon the
signed complaint of a consumer or motor club, test motor fuel for
the purpose of inspecting the motor fuel supply of any service
station, business or other establishment which sells or offers
for sale motor vehicle fuel, for compliance with the fuel quality
standards outlined in ORS 646.910 to 646.920.
  (2) The director or the director's authorized agent shall have
access during normal business hours to all places where motor
vehicle fuel is marketed for the purpose of examination,
inspection and investigation of the establishment's motor vehicle
fuel supply and shall collect or cause to be collected samples of
such motor vehicle fuel, and shall test or analyze such samples
for compliance with fuel quality standards outlined in ORS
646.910 to 646.920 and in the annual book of standards for the
American Society for Testing and Materials and any supplements or
revisions thereto, as amended or modified by the director. + }
  SECTION 6.  { + (1) The Director of Agriculture may issue a
stop-use order, hold order or removal order for any motor vehicle
fuel offered or exposed for sale, or in the process of delivery
or susceptible to commercial use, which is found not to be in
compliance with the fuel quality standards prescribed in ORS
646.910 to 646.920. The director may rescind the stop-use, hold
or removal order if the fuel is brought into full compliance with
motor vehicle fuel standards.
  (2) No person shall use, remove from the premises specified or
fail to remove from the premises specified any motor vehicle fuel
in a manner contrary to the terms of a stop-use order, hold order
or removal order issued under authority of this section. + }
  SECTION 7.  { + (1) For the purpose of administering the
provisions of sections 3 to 6 of this 1995 Act, the Director of
Agriculture is authorized to adopt rules necessary for such
administration and shall base such rules on the most current
motor fuel standards set forth in the annual book of standards
for the American Society for Testing and Materials and any
supplements and revisions thereto. However, the director may
amend or modify such motor fuel standards in adopting rules under
this section.
  (2) Rules adopted by the director under this section may
include, but are not limited to, motor fuel grade advertising,
pump grade labeling, minimum standards for motor fuels and
identification requirements for motor fuels. + }
  SECTION 8.  { + As used in sections 8 to 15 of this 1995 Act:
  (1) 'Bulk facility' means a facility, including pipeline
terminals, refinery terminals, rail and barge terminals and
associated underground and aboveground tanks, connected or
separate, from which petroleum products are withdrawn from bulk
and delivered into a cargo tank or barge used to transport those
products.
  (2) 'Cargo tank' means an assembly used for transporting,
hauling or delivering petroleum products and consisting of a tank
having one or more compartments mounted on a wagon, truck,
trailer, truck-trailer, railcar or wheels. 'Cargo tank' does not
include any assembly used for transporting, hauling or delivering
petroleum products that hold less than 100 gallons in individual,
separable containers.
  (3) 'Department' means the Department of Revenue.
  (4) 'Person' means an individual, trust, firm, joint stock
company, corporation, partnership, joint venture, consortium,
association, state, municipality, commission, political
subdivision of a state or any interstate body, any commercial
entity and the Federal Government or any agency of the Federal
Government.
  (5) 'Petroleum product' means a petroleum product that is
obtained from distilling and processing crude oil and that is
capable of being used as a fuel for the propulsion of a motor
vehicle or aircraft, including motor gasoline, gasohol, other
alcohol-blended fuels, aviation gasoline, kerosene, distillate
fuel oil and number 1 and number 2 diesel. The term does not
include naphtha-type jet fuel, kerosene-type jet fuel, or a
petroleum product distilled for use in chemical manufacturing or
feedstock of that manufacturing or fuel sold to vessels engaged
in interstate or foreign commerce.
  (6) 'Withdrawal from bulk' means the removal of a petroleum
product from a bulk facility for delivery directly into a cargo
tank or a barge to be transported to another location other than
another bulk facility for use or sale in this state. + }
  SECTION 9.  { + The Department of Revenue shall collect a fee
equal to the actual cost of inspection from the facility being
inspected plus administration expenses. + }
  SECTION 10.  { + The Department of Revenue, for good cause, may
extend for a period of time not to exceed one year, the time for
payment of the fee due under section 9 of this 1995 Act. The
extension may be granted at any time if a written request is
filed with the department within or prior to the period for which
the extension may be granted. If the time for payment is extended
at the request of a person, interest at the rate established
under ORS 305.220, for each month, or a fraction of a month, from
the time the payment was originally due to the time payment is
actually made, shall be added to the required payment. + }
  SECTION 11.  { + (1) Each operator of a bulk facility and each
person who imports petroleum products into this state shall keep
at the person's registered place of business complete and
accurate records of any petroleum products sold, purchased by or
brought into or caused to be brought into the place of business.
  (2) The Department of Revenue, upon oral or written reasonable
notice, may make such examinations of the books, papers, records
and equipment required to be kept under this section as it may
deem necessary in carrying out the provisions of section 9 of
this 1995 Act. + }

  SECTION 12.  { + The Department of Revenue is authorized to
establish those rules and procedures for the implementation and
enforcement of section 9 of this 1995 Act that are consistent
with its provisions and are considered necessary and
appropriate. + }
  SECTION 13.  { + The provisions of ORS chapters 305 and 314 as
to liens, delinquencies, claims for refund, issuance of refunds,
conferences, appeals to the Director of the Department of
Revenue, appeals to the Oregon Tax Court, stay of collection
pending appeal, cancellation, waiver, reduction or compromise of
fees, penalties or interest, subpoenaing and examining witnesses
and books and papers, and the issuance of warrants and the
procedures relating thereto, shall apply to the collection of
fees, penalties and interest by the Department of Revenue under
section 9 of this 1995 Act, except where the context requires
otherwise. + }
  SECTION 14.  { + All moneys received by the Department of
Revenue under section 9 of this 1995 Act shall be deposited in
the State Treasury and credited to a suspense account established
under ORS 293.445. After payment of administration expenses
incurred by the department in the administration of section 9 of
this 1995 Act and of refunds or credits arising from erroneous
overpayments, the balance of the money shall be credited to the
Motor Fuel Inspection Program Account of the Department of
Agriculture Service Fund. Such moneys are continuously
appropriated to the Department of Agriculture for the purposes of
enforcing the provisions of this 1995 Act. + }
  SECTION 15.  { + (1) In addition to any other penalty provided
by law, any person who violates a provision of section 3, 4 or 6
of this 1995 Act or any rule or order adopted or entered under
section 6 or 7 of this 1995 Act, shall incur a civil penalty not
to exceed $15,000.
  (2) For the purposes of this section, each day of violation is
a separate offense and the penalties provided in subsection (1)
of this section apply to each such offense.
  (3) Any civil penalty imposed under subsection (1) of this
section shall be established, imposed, collected and appealed in
the same manner prescribed in ORS 616.900, except that a penalty
collected under this section shall be deposited in the Motor Fuel
Inspection Program Account of the Department of Agriculture
Service Fund, which account is hereby created. + }
  SECTION 16. ORS 561.144 is amended to read:
  561.144. (1) The State Treasurer shall establish a Department
of Agriculture Service Fund which shall be a trust fund separate
from the General Fund and included under ORS 293.115 (6), and
which shall not be subject to ORS 293.105 and 293.110. The
department shall deposit all license and service fees paid to it
under the provisions of the statutes identified in subsection (3)
of this section in the Department of Agriculture Service Fund.
The State Treasurer is the custodian of this trust fund which
shall be deposited by the treasurer in such depositories as are
authorized to receive deposits of the General Fund, and which may
be invested by the treasurer in the same manner as authorized by
ORS 293.701 to 293.820.
  (2) Notwithstanding ORS 293.140, interest received on deposits
credited to the Department of Agriculture Service Fund shall
accrue to and become a part of the Department of Agriculture
Service Fund.
  (3) The license and service fees subject to this section are
those described in ORS 561.400, 571.057, 571.063, 571.145,
583.004, 583.046, 583.445, 583.510, 583.610, 585.050, 586.270,
586.580, 586.650, 596.030, 596.311, 599.235, 599.269, 599.406,
599.610, 600.030, 601.040, 602.090, 603.025, 603.075, 616.706,
618.115, 618.136, 619.031, 621.072, 621.166, 621.266, 621.297,
621.335, 621.730, 622.080, 625.180, 628.240, 632.211, 632.336,
632.425, 632.600, 632.720, 632.730, 632.741, 632.940, 632.945,
633.015, 633.029, 633.361, 633.460, 633.680, 633.700, 633.720,
634.016, 634.116, 634.122, 634.126, 634.132, 634.136,
634.212 { + , + }
  { - and - }  635.030  { + and section 9 of this 1995 Act + }.
                         ----------