Substitute House Bill No. 5660
Substitute House Bill No. 5660
PUBLIC ACT NO. 98-128
AN ACT REDUCING THE MOTOR VEHICLE FUELS TAX AND
REQUIRING REDUCTIONS TO BE REFLECTED IN THE RETAIL
PRICE OF MOTOR FUELS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subdivision (2) of subsection (a)
of section 12-458 of the general statutes, as
amended by section 2 of public act 97-281 and
section 1 of public act 97-309, is repealed and
the following is substituted in lieu thereof:
(2) On said date and coincident with the
filing of such return each distributor shall pay
to the commissioner for the account of the
purchaser or consumer a tax (A) on each gallon of
such fuels sold or used in this state during the
preceding calendar month of twenty-six cents on
and after January 1, 1992, twenty-eight cents on
and after January 1, 1993, twenty-nine cents on
and after July 1, 1993, thirty cents on and after
January 1, 1994, thirty-one cents on and after
July 1, 1994, thirty-two cents on and after
January 1, 1995, thirty-three cents on and after
July 1, 1995, thirty-four cents on and after
October 1, 1995, thirty-five cents on and after
January 1, 1996, thirty-six cents on and after
April 1, 1996, thirty-seven cents on and after
July 1, 1996, thirty-eight cents on and after
October 1, 1996, thirty-nine cents on and after
January 1, 1997, thirty-six cents on and after
July 1, 1997, and [thirty-three] THIRTY-TWO cents
on and after July 1, 1998; and (B) in lieu of said
taxes, each distributor shall pay a tax on each
gallon of gasohol, as defined in section 14-1,
sold or used in this state during such preceding
calendar month, of twenty-five cents on and after
January 1, 1992, twenty-seven cents on and after
January 1, 1993, twenty-eight cents on and after
July 1, 1993, twenty-nine cents on and after
January 1, 1994, thirty cents on and after July 1,
1994, thirty-one cents on and after January 1,
1995, thirty-two cents on and after July 1, 1995,
thirty-three cents on and after October 1, 1995,
thirty-four cents on and after January 1, 1996,
thirty-five cents on and after April 1, 1996,
thirty-six cents on and after July 1, 1996,
thirty-seven cents on and after October 1, 1996,
thirty-eight cents on and after January 1, 1997,
thirty-five cents on and after July 1, 1997, and
[thirty-two] THIRTY-ONE cents on and after July 1,
1998; and (C) in lieu of such rate, on each gallon
of diesel fuel, propane or natural gas sold or
used in this state on and after September 1, 1991,
during such preceding calendar month, of eighteen
cents.
Sec. 2. (NEW) Notwithstanding the provisions
of section 13b-61 of the general statutes, the
Commissioner of Motor Vehicles shall deposit into
the Special Transportation Fund established under
section 13b-68 of the general statutes, as amended
by this act, funds received by the state from the
tax imposed under section 12-431 of the general
statutes attributable to motor vehicles under said
section 12-431, in accordance with the following
schedule: (1) Ten million dollars of the amount
received by the state for the fiscal year ending
June 30, 2000; (2) twenty million dollars of the
amount received by the state for the fiscal year
ending June 30, 2001; (3) thirty million dollars
of the amount received by the state for the fiscal
year ending June 30, 2002; and (4) forty million
dollars of the amount received by the state for
the fiscal year ending June 30, 2003, and each
fiscal year thereafter.
Sec. 3. Section 14-319 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No person shall sell or offer for sale
any gasoline or other product intended for use in
the propelling of motor vehicles using combustion
type engines over the highways of this state
without having applied for and received from the
commissioner a license to sell such gasoline or
other product. [; and each] EACH person applying
for any such license shall, in such application,
state the location of each place or station where
[he] SUCH PERSON intends to sell or offer for sale
any such gasoline or other product. Each such
license shall be renewed annually. A license fee
for each such place or station shall be charged as
follows: For each station containing one pump,
fifty dollars; and, for each station containing
more than one pump, fifty dollars, plus fourteen
dollars for each pump in excess of one. The fees
shall be paid to the commissioner.
(b) The commissioner shall not refuse to
grant or renew any [such] license UNDER THIS
SECTION on the ground that (1) any licensed
activity shall be conducted by the licensee on
real property on which shall also be located one
or more other businesses, enterprises, or
activities, whether or not licensed under section
14-52, owned or operated by one or more persons,
other than the licensee, or (2) the licensee shall
make use of any common areas or facilities
together with the owner or operator of any such
other business, enterprise or activity.
(c) IN DETERMINING WHETHER TO GRANT OR TO
RENEW ANY LICENSE UNDER THIS SECTION, THE
COMMISSIONER SHALL CONSIDER WHETHER THE APPLICANT
OR LICENSEE HAS BEEN FOUND IN ANY JUDICIAL OR
ADMINISTRATIVE PROCEEDING TO HAVE VIOLATED THE
REQUIREMENTS OF SUBSECTION (c) OF SECTION 14-332a,
AS AMENDED BY THIS ACT.
Sec. 4. Section 14-332 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The commissioner may [make] ADOPT
regulations, IN ACCORDANCE WITH CHAPTER 54,
governing the administration of all statutes
relating to gasoline or any other product intended
as a fuel for motor vehicles or internal
combustion engines or relating to the sale of such
gasoline or such other product, EXCEPT AS PROVIDED
IN SUBSECTION (b) OF THIS SECTION.
(b) THE COMMISSIONER, IN CONSULTATION WITH
THE SECRETARY OF THE OFFICE OF POLICY AND
MANAGEMENT, SHALL ADOPT EMERGENCY REGULATIONS, IN
ACCORDANCE WITH CHAPTER 54, TO ESTABLISH A PROGRAM
TO MONITOR AND ENFORCE COMPLIANCE WITH THE
REQUIREMENTS OF SUBSECTION (c) OF SECTION 14-332a,
AS AMENDED BY THIS ACT.
Sec. 5. Section 14-332a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in SUBSECTION (b) OF this
section: [(1) "Retail dealer" means retail dealer
as defined in section 14-318. (2)] (1) "Surcharge"
means any charge by a retail dealer to any person
for the pumping or sale of gasoline or other
product intended for use in the propelling of
motor vehicles using combustion type engines which
exceeds the amount of the posted retail price
displayed on such price signs as may be required
by law; [. (3) "Tie-in-sale"] AND (2)
"TIE-IN-SALE" means any sale by a retail dealer of
any petroleum product, except gasoline, or of any
other product or merchandise or of any service
which is made a condition for the purchase of
gasoline.
(b) Any retail dealer [who] THAT adds a
surcharge to the price of gasoline or other
product intended for use in the propelling of
motor vehicles using combustion type engines sold
by him at retail, or requires a tie-in-sale as a
condition of such sale, shall be subject to the
penalties provided in section 14-331. Nothing in
this subsection shall be construed to prohibit any
charge for financing in accordance with sections
36a-675 to 36a-685, inclusive.
(c) (1) DURING THE PERIOD COMMENCING ON JULY
1, 1998, AND ENDING ON OCTOBER 1, 1998, UPON THE
REDUCTION IN THE TAX REQUIRED BY SECTION 12-458,
AS AMENDED BY THIS ACT, THAT IS EFFECTIVE JULY 1,
1998, EACH RETAIL DEALER SHALL, IN ACCORDANCE WITH
SUBDIVISION (2) OF THIS SUBSECTION, REDUCE THE
PER-GALLON PRICE OF GASOLINE OR OTHER PRODUCT
INTENDED FOR USE IN THE PROPELLING OF MOTOR
VEHICLES USING COMBUSTION TYPE ENGINES SOLD BY
SUCH RETAIL DEALER AT RETAIL IN AN AMOUNT EQUAL TO
THE AMOUNT OF THE REDUCTION IN SUCH TAX THAT IS
IMPOSED ON EACH GALLON OF SUCH GASOLINE OR OTHER
PRODUCT. SUCH RETAIL DEALER SHALL MAINTAIN ANY
SUCH PRICE REDUCTION IN EFFECT FOR A PERIOD OF NOT
LESS THAN NINETY DAYS AFTER SUCH TAX REDUCTION.
(2) THE PRICE REDUCTION REQUIRED BY
SUBDIVISION (1) OF THIS SUBSECTION SHALL TAKE
EFFECT NOT LATER THAN (A) TWO DAYS FOLLOWING THE
EFFECTIVE DATE OF THE APPLICABLE TAX REDUCTION, OR
(B) THE CLOSE OF BUSINESS ON THE BUSINESS DAY ON
WHICH THE RETAIL DEALER HAS COMPLETED THE SALE OF
AN AMOUNT OF SUCH GASOLINE OR OTHER PRODUCT EQUAL
TO THE TOTAL NUMBER OF GALLONS OF SUCH GASOLINE OR
OTHER PRODUCT IN THE INVENTORY OF THE RETAIL
DEALER AT MIDNIGHT ON THE EFFECTIVE DATE OF SUCH
TAX REDUCTION, WHICHEVER IS LATER.
(3) ANY RETAIL DEALER THAT VIOLATES THIS
SUBSECTION SHALL BE SUBJECT TO THE PENALTIES SET
FORTH IN SECTION 14-331. A VIOLATION OF THIS
SUBSECTION SHALL BE DEEMED AN UNFAIR OR DECEPTIVE
TRADE PRACTICE UNDER SUBSECTION (a) OF SECTION
42-110b.
(4) THE FOLLOWING SHALL BE AFFIRMATIVE
DEFENSES TO ANY ACTION OR ADMINISTRATIVE
PROCEEDING BROUGHT AGAINST A RETAIL DEALER UNDER
SECTION 14-331 OR CHAPTER 735a FOR AN ALLEGED
VIOLATION OF THIS SUBSECTION: (A) AN INCREASE IN
THE WHOLESALE PRICE OF SUCH GASOLINE OR OTHER
PRODUCT THAT OCCURS AFTER ANY SUCH TAX REDUCTION;
(B) AN INCREASE IN ANY OTHER TAX IMPOSED ON SUCH
GASOLINE OR OTHER PRODUCT THAT OCCURS AFTER ANY
SUCH TAX REDUCTION; OR (C) ANY OTHER BONA FIDE
BUSINESS COST INCREASE INCURRED BY A RETAIL DEALER
AND UPON WHICH THE RETAIL DEALER RELIED IN MAKING
THE DECISION TO FOREGO THE IMPLEMENTATION OR
CONTINUATION OF ANY SUCH PRICE REDUCTION IN WHOLE
OR IN PART.
Sec. 6. Section 16a-15 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Each person shall publicly display and
maintain on each pump or other dispensing device
from which any gasoline or other product intended
as a fuel for aircraft, motor boats or motor
vehicles is sold by [him] SUCH PERSON, such signs
as the Commissioner of Consumer Protection, by
regulation ADOPTED PURSUANT TO CHAPTER 54, may
require to inform the public of the octane rating
and price of such gasoline or other product. Each
person selling such gasoline or other product on
both a full-serve and self-serve basis and
displaying the price of such gasoline or other
product at a location on the premises other than
at a pump or other dispensing device shall include
in such display both the full-serve and self-serve
prices of such gasoline or other product, in such
manner as the commissioner, by regulation, may
require. All signs as to price shall be the
per-gallon price and shall not be the price of
less or more than one gallon.
(b) Each person shall publicly display and
maintain on each pump or other dispensing device
from which any gasoline or other product
containing more than one per cent by volume of
ethanol, methanol or any other cosolvent, and
intended as a fuel for aircraft, motor boats or
motor vehicles is sold by [him] SUCH PERSON, such
signs as the Commissioner of Consumer Protection,
by regulation ADOPTED PURSUANT TO CHAPTER 54, may
require to inform the public of the amount of
methanol, ethanol or any other cosolvent contained
in such gasoline or other product.
(c) DURING THE PERIOD COMMENCING ON THE
EFFECTIVE DATE OF THIS ACT AND ENDING ON OCTOBER
1, 1998, EACH PERSON WHO SELLS AT RETAIL ANY
GASOLINE OR OTHER PRODUCT INTENDED FOR USE IN THE
PROPELLING OF MOTOR VEHICLES USING COMBUSTION TYPE
ENGINES SHALL PROMINENTLY DISPLAY AT ANY LOCATION
ON THE PREMISES AT WHICH SUCH GASOLINE OR OTHER
PRODUCT IS SOLD, AND MAY MAINTAIN ON EACH PUMP OR
OTHER DISPENSING DEVICE FROM WHICH SUCH GASOLINE
OR OTHER PRODUCT IS DISPENSED, A NOTICE INFORMING
THE PUBLIC OF THE REQUIREMENTS OF SUBSECTION (c)
OF SECTION 14-332a, AS AMENDED BY THIS ACT. THE
NOTICE REQUIRED BY THIS SUBSECTION SHALL BE IN
SUCH FORM AS THE COMMISSIONER OF CONSUMER
PROTECTION MAY REQUIRE BY EMERGENCY REGULATION
ADOPTED PURSUANT TO CHAPTER 54 AND SHALL INCLUDE:
(1) THE STATEMENT "THE GENERAL ASSEMBLY AND THE
GOVERNOR HAVE REDUCED THE STATE MOTOR VEHICLE
FUELS TAX BY (INSERT AMOUNT) CENTS EFFECTIVE
(INSERT DATE)"; AND (2) THE NUMBER OF THE
TOLL-FREE TELEPHONE LINE ESTABLISHED IN THE
DEPARTMENT OF CONSUMER PROTECTION FOR THE HANDLING
OF CONSUMER INQUIRIES AND COMPLAINTS THAT MAY BE
USED TO REPORT ANY VIOLATION OF SUBSECTION (c) OF
SECTION 14-332a, AS AMENDED BY THIS ACT.
[(c)] (d) Any manufacturer, hauler, blender,
agent, jobber, consignment agent, or distributor
who distributes gasoline, or other products
intended as fuel for aircraft, motor boats, or
motor vehicles, which contain one per cent or more
alcohol by volume, shall state the percentage of
alcohol and the type of alcohol on any invoice,
bill of lading, shipping paper, or other
documentation used in normal and customary
business practices.
[(d)] (e) Any person who, by himself, his
agent or employee, violates any provision of this
section or such regulations shall be fined not
less than fifty dollars nor more than two hundred
fifty dollars.
Sec. 7. (NEW) (a) During the period
commencing on July 1, 1998, and ending on October
1, 1998, upon the reduction in the tax required by
section 12-458 of the general statutes, as amended
by this act, that is effective July 1, 1998, each
distribution as defined in section 12-455a of the
general statutes, in accordance with subsection
(b) of this section, reduce the per-gallon price
of gasoline or other product intended for use in
the propelling of motor vehicles using combustion
type engines sold in this state by such
distributor to any retail dealer as defined in
section 14-318 of the general statutes, in an
amount equal to the amount of the reduction in
such tax that is imposed on each gallon of such
gasoline or other product. Such distributor shall
maintain any such price reduction in effect for a
period of not less than ninety days after such tax
reduction.
(b) The price reduction required by
subsection (a) of this section shall take effect
not later than two days following the effective
date of the applicable tax reduction.
(c) A violation of this section shall be
deemed an unfair or deceptive trade practice under
subsection (a) of section 42-110b of the general
statutes.
Sec. 8. Not later than January 1, 1999, the
Secretary of the Office of Policy and Management
shall report to the General Assembly concerning
the impact on the retail price of motor fuels in
this state as a result of any price adjustments
required by the provisions of this act.
Sec. 9. (a) One hundred twenty-five thousand
dollars of the amount appropriated to the
Department of Revenue Services in special act 98-6
for tax rebate administration shall be transferred
to the Department of Consumer Protection to
monitor and enforce compliance with the motor
fuels retail price reduction requirements.
(b) Up to one hundred thousand dollars of the
amount appropriated to the Office of Policy and
Management in special act 98-6 for Elderly Renter
and Circuit Breaker Relief Administration may be
used for motor fuels retail price reduction
compliance requirements.
Sec. 10. This act shall take effect from its
passage, except that sections 1 to 3, inclusive,
and section 9 shall take effect July 1, 1998.
Approved May 27, 1998