House Bill 1083

AN ACT TO AMEND SECTION 27-55-7, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM BOND AMOUNT FOR GASOLINE DISTRIBUTORS; TO AMEND SECTION 27-55-33, MISSISSIPPI CODE OF 1972, TO MAKE IT UNLAWFUL FOR SHIP, BOAT, TOWBOAT, VESSEL OR BARGE TO OFFLOAD ANY TAXABLE PETROLEUM PRODUCT EXCEPT AT A TERMINAL REGISTERED WITH THE INTERNAL REVENUE SERVICE; TO AMEND SECTION 27-55-53, MISSISSIPPI CODE OF 1972, TO MAKE IT UNLAWFUL FOR CARRIERS OR TRANSPORTERS TO DIVERT GASOLINE TO A DESTINATION OTHER THAN THE DESTINATION ON THE MANIFEST OR BILL OF LADING, AND TO PROVIDE PENALTIES THEREFOR; TO AMEND SECTION 27-55-507, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM BOND AMOUNT FOR SPECIAL FUEL DISTRIBUTORS; TO AMEND SECTION 27-55-559, MISSISSIPPI CODE OF 1972, TO MAKE IT UNLAWFUL FOR CARRIERS OR TRANSPORTERS TO DIVERT SPECIAL FUEL SHIPMENTS TO A DESTINATION OTHER THAN THE DESTINATION ON THE MANIFEST OR BILL OF LADING, AND TO PROVIDE PENALTIES THEREFOR; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-55-7, Mississippi Code of 1972, is amended as follows:

27-55-7. Before any person shall engage in business as a distributor of gasoline in this state, he shall first make application to the commission, upon forms prescribed by the commission, for a permit to engage in the business.

If the application is approved by the commission, the applicant shall enter into a good and sufficient surety bond, written by a company qualified to write such bonds in this state. The bond shall be made payable to the State of Mississippi in a sum of not less than One Thousand Dollars ($1,000.00) nor more than Five Hundred Thousand Dollars ($500,000.00), the amount to be determined by the commission; or, in lieu thereof, the applicant may deposit with the commission a cash bond in the amount so determined. A personal bond in the amount so determined shall also be acceptable in lieu of a surety bond if the same is adequately secured by the pledge or assignment of a pledgeable or assignable bond or bonds of the State of Mississippi or the United States Government. Such bond or bonds shall be in an amount not to exceed Five Hundred Thousand Dollars ($500,000.00), and not to exceed the gasoline tax estimated to become due by the * * * distributor of gasoline for any ninety-day period. The bond herein required shall be increased within the limits hereinabove set forth from time to time if deemed insufficient by the commission, giving to the distributor of gasoline fifteen (15) days' notice, in writing, to increase the bond. The notice shall state the amount of increase demanded.

The condition of the bond shall be that the distributor of gasoline shall fully comply with all laws pertaining to distributors of gasoline and pertaining to the transportation of gasoline as regulated by this article, and that he shall pay the gasoline tax and the penalties provided. Provided, however, any person who, prior to the effective date of this article, has furnished bond to meet the requirements of any petroleum tax law administered by the commission, shall not be required to furnish an additional bond provided his existing bond is adequate, but such person shall be subject to all the other provisions of this article regulating and governing distributors of gasoline.

Provided further, that any person who purchases all of his gasoline on a tax-paid basis and from a qualified bonded distributor of gasoline for sale or distribution to retailers for resale to consumers shall not be required to make bond for the gasoline purchased, but shall be subject to all the other provisions of this article regulating and governing distributors of gasoline.

SECTION 2. Section 27-55-33, Mississippi Code of 1972, is amended as follows:

27-55-33. Every common or contract carrier transporting gasoline by whatever means, from a point outside this state to any point in this state, shall report, in writing, all deliveries of gasoline to points within this state to the commission on forms prescribed by the commission or, with the approval of the commission, furnish the required information on machine-prepared schedules, and such other information as may be necessary for the proper administration of this article.

The reports required in this section shall be for information purposes only and the commission may, in its discretion, waive the filing of any of these reports not necessary for proper administration of this article. The reports required in this section shall be signed and contain a declaration that the statements contained therein are true and are made under penalty of perjury. Such reports required in this section shall be filed with the commission on or before the 20th day of each month following the month in which the transaction occurred.

Any such person failing or refusing to file said report on or before the date required by law, or who shall omit any shipment of gasoline from said report, shall be subject to a penalty which shall be a percentage of the tax imposed by law on the total amount of the taxable products involved as follows:

(a) Not more than ten percent (10%) for the first failure, refusal or omission; and

(b) Not more than twenty percent (20%) for the second and any subsequent failure, refusal or omission.

The commission may waive the penalty imposed in the preceding paragraph upon good cause shown.

All ships, boats, towboats, vessels or barges delivering taxable petroleum products into this state shall have all inlets and outlets sealed with different numbered seals, the number of which shall be recorded on the invoices, manifests, bills of lading, or other records accompanying the shipment. Any captain of a ship, boat, barge, towboat or vessel found in violation of this provision shall be guilty of a misdemeanor and fined not less than One Hundred Dollars ($100.00) nor more than Two Hundred Fifty Dollars ($250.00) for the first offense, and not less than Two Hundred Fifty Dollars ($250.00) nor more than Five Hundred Dollars ($500.00) for each offense thereafter.

It shall be unlawful for any ship, boat, towboat, vessel or barge delivering taxable petroleum products into this state to unload such taxable petroleum products in this state unless the delivery is to a terminal approved by and registered with the Internal Revenue Service. Any captain of a ship, boat, barge, towboat or vessel who violates this provision shall be fined One Thousand dollars ($1,000.00) per offense and the entire amount of the state excise tax upon such taxable petroleum product shall be deemed due and payable, plus a penalty of twenty-five percent (25%) of the amount of such tax, and any authorized representative of the commission or the enforcement officers of the Mississippi Department of Transportation shall have the right to seize or impound such ship, boat, towboat, vessel or barge until such excise tax and penalty have been paid.

SECTION 3. Section 27-55-53, Mississippi Code of 1972, is amended as follows:

27-55-53. Every person hauling, transporting or conveying more than fifty (50) gallons of gasoline over the highways, streets, alleys or waters of this state, or into this state over any highway, street, alley or water route, shall, during the entire time he is so engaged, have in his possession a bill of sale, bills of lading, invoices or other written evidence, each of which shall be serially numbered, showing the kind and amount of gasoline being transported, the name and address of the person from whom said gasoline was received, and the name and address of the person to whom delivery is to be made. The vehicle or boat conveying said gasoline shall have clearly printed on it the name and address of the person transporting such gasoline on both sides of the vehicle, or boat, in well-balanced letters of not less than two (2) inches in height on a contrasting background.

Any person transporting gasoline without a shipping document containing the information set forth in this section or who diverts a shipment of gasoline to a destination other than the destination listed on such shipping document or who alters a shipping document without notice to the commission shall be liable for a fine of One Thousand Dollars ($1,000.00) per offense and the entire amount of the state excise tax upon such gasoline shall be deemed due and payable, plus a penalty of twenty-five percent (25%) of the amount of such tax. Any authorized representative of the commission or the enforcement officers of the Mississippi Department of Transportation shall have the right to seize or impound such vehicle or boat until the excise tax and penalty have been paid. Notice to the commission shall consist of contacting the National Diversion Registry, reporting the diversion and obtaining a registration number.

The commission, its employees or agents, including the enforcement officers of the Mississippi Department of Transportation, or any sheriff, deputy sheriff, constable or police officer of this state is hereby authorized to inspect any vehicle or boat transporting gasoline over the highways, streets, alleys or waters of this state, to examine the contents of any such vehicle or boat, to take a sample of each grade of gasoline contained in said vehicle or boat provided no sample shall exceed one (1) gallon, and to inspect the bills of lading, invoices or other records pertaining to the gasoline being transported in such vehicle or boat.

Any person other than a common or contract carrier bringing gasoline into this state in quantities of more than fifty (50) gallons shall give notice to the commission of his intent to import such gasoline. The commission is authorized to promulgate rules setting forth the manner in which such notice is to be given. However, if information on gasoline imported into this state can be accurately secured from other sources by the commission, it may waive the requirements of such notice.

If any person, other than a common or contract carrier, shall transport gasoline over the highways of this state by motor vehicle without having given the notice required by this section, or if a copy of such notice is not carried in such motor vehicle as required by this section, the entire amount of the state excise tax upon such gasoline being transported shall be deemed due and payable, plus a penalty of twenty-five percent (25%) of the amount of such tax, and any authorized representative of the commission or the enforcement officers of the Mississippi Department of Transportation shall have the right to seize or impound the motor vehicle in which such gasoline is being transported until such excise tax together with the penalty thereon has been paid. Provided, however, that said penalty shall not apply when the driver of the truck stops at the first weighing station in the line of travel and secures the signature of the officer on duty on the import notice.

The person to whom gasoline is delivered by barge, railroad tank car or transport vehicle may not accept delivery of the gasoline if the destination state shown on the shipping document for the gasoline is a state other than this state and the shipping document does not contain a diversion registration number from the National Diversion Registry. The person to whom the gasoline is delivered shall examine the shipping document or bill of lading to determine that the destination state is this state or that the shipping document contains a diversion registration number and shall retain a copy of the shipping document at the delivery location or another place for three (3) years.

SECTION 4. Section 27-55-507, Mississippi Code of 1972, is amended as follows:

27-55-507. Before any person shall engage in business as a distributor of special fuel in this state, he shall first make application to the commission, upon forms prescribed by the commission, for a permit to engage in said business.

If the application is approved by the commission, the applicant shall enter into a good and sufficient surety bond, written by a company qualified to write such bonds in this state. The bond shall be made payable to the State of Mississippi in a sum not less than One Thousand Dollars ($1,000.00) nor more than Five Hundred Thousand Dollars ($500,000.00), the amount to be determined by the commission; or, in lieu thereof, the applicant may deposit with the commission a cash bond in the amount so determined. A personal bond in the amount so determined shall also be acceptable in lieu of a surety bond if the same is adequately secured by the pledge or assignment of a pledgeable or assignable bond, or bonds, of the State of Mississippi or the United States government. Such bond or bonds shall be in an amount not to exceed Five Hundred Thousand Dollars ($500,000.00), and not to exceed the special fuel taxes estimated to become due by the distributor of special fuel for any ninety-day period. The bond required by this section shall be increased within the limits hereinabove set forth from time to time if deemed insufficient by the commission, giving to the distributor of special fuel fifteen (15) days' notice, in writing, to increase such bond, such notice to state the amount of increase demanded.

The condition of such bond shall be that the distributor of special fuel shall fully comply with all laws pertaining to distributors of special fuel and pertaining to the transportation of special fuel as regulated by this article, and that he shall pay the special fuel taxes, and the penalties provided.

SECTION 5. Section 27-55-559, Mississippi Code of 1972, is amended as follows:

27-55-559. Every person hauling, transporting or conveying more than five hundred (500) gallons of special fuel over the highways, streets, alleys or waters of this state, or into this state over any highway, street, alley or water route, shall, during the entire time he is so engaged, have in his possession a bill of sale, bills of lading, invoices or other written evidence, each of which shall be serially numbered, showing the kind and amount of special fuel being transported, the name and address of the person from whom such special fuel was received, and the name and address of the person to whom delivery is to be made. The vehicle or boat conveying such special fuel shall have clearly printed on it the name and address of the person transporting the special fuel on both sides of the vehicle or boat in well-balanced letters of not less than two (2) inches in height on a contrasting background.

Any person transporting special fuel without a shipping document containing the required information or who diverts a shipment of special fuel to a destination other than the destination listed on such shipping document or who alters a shipping document without notice to the commission shall be liable for a fine of One Thousand dollars ($1,000.00) per offense and the entire amount of the state excise tax upon such special fuel shall be deemed due and payable, plus a penalty of twenty-five percent (25%) of the amount of such tax. Any authorized representative of the commission or the enforcement officers of the Mississippi Department of Transportation shall have the right to seize or impound such vehicle or boat until the excise tax and penalty have been paid. Notice to the commission shall consist of contacting the National Diversion Registry, reporting the diversion and obtaining a registration number.

Any person other than a common or contract carrier bringing special fuel into this state in quantities of more than five hundred (500) gallons shall give notice to the commission of his intent to import such special fuel. The commission is authorized to promulgate rules setting forth the manner in which such notice is to be given. However, if information on special fuel imported into this state can be accurately secured from other sources by the commission, it may waive the requirements of such notice.

If any person, other than a common or contract carrier, shall transport special fuel over the highways of this state by motor vehicle without having given the notice required by this section, or if a copy of such notice is not carried in such motor vehicle as required by this section, the entire amount of the state excise tax upon such special fuel being transported shall be deemed due and payable, plus a penalty of twenty-five percent (25%) of the amount of such tax, and any authorized representative of the commission or enforcement officers of the Mississippi Department of Transportation shall have the right to seize or impound the motor vehicle in which such special fuel is being transported until such excise tax together with the penalty thereon has been paid. Provided, however, that the penalty shall not apply when the driver of the truck stops at the first weighing station in the line of travel and secures the signature of the officer on duty on the import notice.

The person to whom special fuel is delivered by barge, railroad tank car or transport vehicle may not accept delivery of the special fuel if the destination state shown on the shipping document is a state other than this state and the shipping document does not contain a diversion registration number from the National Diversion Registry. The person to whom the special fuel is delivered shall examine the shipping document or bill of lading to determine that the destination state is this state or that the shipping document contains a diversion registration number and shall retain a copy of the shipping document at the delivery location or another place for three (3) years.

SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under Chapter 55, Title 27, Mississippi Code of 1972, before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of such laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 7. This act shall take effect and be in force from and after July 1, 2004.