HOME    SEARCH    ABOUT US    CONTACT US    HELP   
           
Montana Administrative Register Notice 18-126 No. 20   10/28/2010    
Prev Next

 

BEFORE THE DEPARTMENT OF TRANSPORTATION

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 18.9.102, 18.9.108, 18.9.109, 18.9.112, 18.9.117, 18.9.205, 18.9.303, 18.10.104, 18.10.302, 18.10.314, 18.10.322, 18.10.323, 18.10.324 pertaining to licensed distributors and special fuel users and the repeal of ARM 18.9.106, 18.9.107, 18.10.102 pertaining to  invoice errors, multi-distributor invoice requirements, and special fuel users

)

)

)

)

)

)

)

)

)

)

)

NOTICE OF PROPOSED AMENDMENT AND REPEAL

 

NO PUBLIC HEARING CONTEMPLATED

 

TO:  All Concerned Persons

 

1.  On November 29, 2010, the Department of Transportation proposes to amend the above-stated rules.

 

2.  The Department of Transportation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact Department of Transportation no later than 5:00 p.m. on November 19, 2010, to advise us of the nature of the accommodation that you need.  Please contact Robert A. Turner, Department of Transportation, P. O. Box 201001, Helena, Montana, 59620; telephone (406) 444-7672; fax (406) 444-6032; TTY (406) 444-7696; or e-mail boturner@mt.gov.

 

3.  The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

            18.9.102  DISTRIBUTOR'S BOND  (1) and (2) remain the same.

            (3)  Upon written application by a distributor and the showing of good cause, the department may, at its discretion, accept a bond, collateral security, or indemnity in an amount less than twice the distributor's estimated monthly gasoline, special fuel, or aviation fuel tax if the distributor reports and pays its tax more frequently than monthly.  For example, if the distributor pays his tax weekly, his bond would be the estimated weekly tax payment.

 

AUTH: 15-70-104, MCA

IMP: 15-70-202, 15-70-204, 15-70-341, MCA

 

REASON:  The proposed amendment is necessary because under the motor fuel statutes, licensed distributors are required to pay motor fuel taxes only once a month.  Section (3) is therefore archaic and contains outdated language which is no longer applicable.

 

            18.9.108  WHOLESALE DISTRIBUTOR  (1) and (1)(a) remain the same.

            (b)  elects to become licensed under 15-70-201 and 15-70-301, MCA, to assume the Montana state gasoline, special fuel, or aviation fuel tax liability and the other obligations of a "distributor" pursuant to Title 15, chapter 70, parts 2 and 3, MCA, and these rules.

            (2) and (3) remain the same.

 

AUTH: 15-70-104, MCA

IMP: 15-70-201, 15-70-301, MCA

 

REASON:  The proposed amendment is necessary because this administrative rule currently references only the gasoline statute and needs also to reference the diesel statute since a distributor can be licensed under both gasoline and diesel statutes.

 

            18.9.109  WHOLESALE DISTRIBUTOR'S OBLIGATIONS  (1) remains the same.

 

AUTH: 15-70-104, MCA

IMP: 15-70-201, 15-70-202, 15-70-301, 15-70-341, MCA

 

REASON: The proposed amendment is necessary because this administrative rule currently only implements the gasoline statute and needs also to implement the diesel statute since a distributor can be licensed under both gasoline and diesel statutes.

 

            18.9.112  DEFINITIONS  (1) remains the same.

 

AUTH: 15-70-104, 15-70-522, MCA

IMP: 15-70-201, 15-70-204, 15-70-205, 15-70-301, 15-70-344, MCA, Ch. 568, L. 2001

 

REASON:  The proposed amendment is necessary because the administrative rule currently does not implement the tax rate for gasoline.  This administrative rule defining "bulk storage" affects a licensed distributor's diesel statement as it does their gasoline statement, thus a reference to 15-70-344, MCA, on distributor's statement is necessary.

 

            18.9.117  DISTRIBUTOR - SUPPORTING DOCUMENTATION FOR BAD DEBT CREDIT  (1) remains the same.

 

AUTH: 15-70-104, MCA

IMP: 15-70-221, 15-70-225, 15-70-328, 15-70-364, MCA

 

REASON:  The proposed amendment is necessary because this administrative rule currently implements the gasoline statute that allows for a bad debt credit, thus a reference to 15-70-221, MCA, on refund or credit being authorized is necessary.

 

            18.9.205  EXEMPTION ‑ U.S. AND OTHER STATES  (1)  Licensed distributors making sales of gasoline, special fuel, or aviation fuel, to the United States government or a state entity FOB rack for use by the purchaser out of the state of Montana must report the sale as a credit to the amount of gasoline, special fuel, or aviation fuel distributed on the distributor's monthly statement as an export required by 15‑70‑205 and 15-70-344, MCA.

 

AUTH: 15‑70-104, MCA;

IMP: 15‑70‑204, 15‑70‑205, 15‑70‑321, 15-70-344, MCA

 

REASON:  The proposed amendment is necessary because this administrative rule currently references only the gasoline statute and needs also to reference the diesel statute since a distributor can be licensed under both gasoline and diesel statutes.  Therefore, a reference to 15-70-344, MCA, on distributor's statement is necessary.

 

            18.9.303  FILING INVOICES  (1) remains the same.

            (2)  Each licensed seller is required to file for approval a completed sample set of invoices that will be issued covering sales to refund applicants.  A sample invoice must be filed annually regardless if the invoice changed.

 

AUTH: 15‑70‑104, MCA

IMP: 15‑70‑222, 15‑70‑361, MCA

 

REASON:  The proposed amendment is necessary because the requirement that retail fuel sellers be licensed has been eliminated, thus (2) which contains archaic language on "licensed sellers" must be deleted.

 

            18.10.104  LIABILITY FOR USE ON GOVERNMENT MAINTAINED ROADS

            (1) remains the same.

 

AUTH:  15-70-104, MCA

IMP: 15-70-301, 15-70-322, MCA

 

REASON:  The proposed amendment is necessary because 15-70-322, MCA, has been repealed, thus the reference to the statute in the rule must be deleted.

 

            18.10.302  PERMIT DETAILS  (1) through (4) remain the same.

 

AUTH: 15-70-104, MCA

IMP: 15-70-121, 15-70-302, 15-70-303, MCA

 

REASON:  The proposed amendment is necessary because the administrative rule also implements 15-70-303, MCA, which contains the application process for a special fuel users permit.

 

            18.10.314  CONFISCATION OF CERTAIN PERMIT COPIES  (1) and (2) remain the same.

AUTH: 15-70-104, MCA

IMP: 15-70-302, 15-70-311, MCA

 

REASON:  The proposed amendment is necessary because this administrative rule also implements 15-70-311, MCA, that applies to special fuel user's temporary trip permits.

 

            18.10.322  RECORDS WHEN BULK STORAGE INVOLVED  (1) and (2) remain the same.

            (3)  A special fuel user who is subject to 15-70-302, MCA, is exempt from the above provisions if the special fuel user uses fuel on which state fuel tax has been paid and if the special fuel user does not request a motor fuel tax refund.

 

AUTH: 15-70-104, MCA

IMP: 15-70-121, 15-70-302, 15-70-323, MCA

 

REASON:  The proposed amendment is necessary because the 2005 Legislature amended the record-keeping requirements of contractors to exempt permitted special fuel users as long as they did not request a refund for nontaxable use. The proposed new (3) will implement that statutory change.

 

            18.10.323  TRIP AND FUEL CONSUMPTION RECORDS  (1)  Every special fuel user subject to 15-70-302, MCA, operating a vehicle permitted under International Fuel Tax Agreement (IFTA) requirements must maintain a record of all trips made by each vehicle in connection with the special fuel used.  Operating records must detail the date and points of beginning and ending of each one way trip; proper designation of highways of operation; total miles traveled; miles traveled in each state; and a complete listing of all purchases of special fuel into vehicles showing quantity, date, and location received during each trip.  The average miles per gallon (ampg) of each vehicle must also be determined.  All operating information must be compiled separately for each vehicle during the calendar month.

            (2) remains the same.

            (3)  Every special fuel user subject to 15-70-302, MCA, operating a vehicle equipped with an apparatus which permits the consumption of special fuel must maintain a record, including invoices of all special fuel used and placed into the special fuel supply tank of each vehicle.  Special fuel users, excluding those subject to 15-70-302, MCA, IFTA requirements, who do not request a refund are exempt from keeping records of special fuel placed into supply tanks of vehicles.

 

AUTH: 15-70-104, MCA

IMP: 15-70-121, 15-70-302, 15-70-323, MCA

 

REASON:  The proposed amendment is necessary because (1) applies to special fuel users who are licensed under the International Fuel Tax Agreement (IFTA) and the proposed language will clarify that distinction. The proposed amendment to (3) is necessary because the 2005 Legislature amended the record-keeping requirements of contractors if the contractor did not request a refund for nontaxable use. The proposed amendment will also add a reference to 15-70-302, MCA, which is also implemented in this rule.

 

            18.10.324  FAILURE TO MAINTAIN RECORDS  (1) through (4) remain the same.

            (a)  trucks and truck tractors whose manufacturers gross vehicle weight rating is 9,000 lbs. or more, 4.5 4.0 ampg;

            (b) through (5) remain the same.

 

AUTH: 15-70-104, MCA

IMP: 15-70-121, 15-70-306, 15-70-323, MCA

 

REASON:  The proposed amendment is necessary because this amendment is made to reconcile the administrative rule with 15-70-224 and 15-70-363, MCA, which allow for a 4.0 mpg when no records or other information are available.

 

4.  The department proposes to repeal the following rules:

 

            18.9.106  INVOICE ERROR

 

AUTH: 15-70-104, MCA

IMP: 15-70-207, 15-70-348, MCA

 

REASON: The proposed repeal is necessary because this administrative rule is no longer needed since the "bill of lading" has taken the place of the "invoice" for tracking the movement of fuel.

 

            18.9.107  MULTI-DISTRIBUTOR INVOICE REQUIREMENTS

 

AUTH: 15-70-104, MCA

IMP: 15-70-207, MCA

 

REASON: The proposed repeal is necessary because this administrative rule is no longer needed since the "bill of lading" has taken the place of the "invoice" for tracking the movement of fuel.

 

            18.10.102  DETERMINATION OF USER

 

AUTH: 15-70-104, MCA

IMP: 15-70-301, MCA

 

REASON: The proposed repeal is necessary because a special fuel user is defined in 15-70-301, MCA, and does not need to be defined in administrative rule.

 

5.  Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Robert A. Turner, Department of Transportation, P. O. Box 201001, Helena, Montana, 59620; telephone (406) 444-7672; fax (406) 444-6032; or e-mail boturner@mt.gov, and must be received no later than 5:00 p.m., November 26, 2010.

 

6.  If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Robert A. Turner at the above address no later than 5:00 p.m., November 26, 2010.

 

7.  If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date.  Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be 25 persons based on the number of licensed distributors, and special fuel permit holders.

 

8.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

 

9.  An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

10.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

/s/ Carol Grell Morris                         /s/ Jim Lynch                         

Carol Grell Morris                              Jim Lynch

Rule Reviewer                                    Director

                                                             Department of Transportation

 

Certified to the Secretary of State October 18, 2010.

 

Home  |   Search  |   About Us  |   Contact Us  |   Help  |   Disclaimer  |   Privacy & Security