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section 1 of public act 97-309,  is  repealed  and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