HB617 By Representative Warren RFD Ways and Means General Fund Rd 1 05-MAY-15

SYNOPSIS: Under existing law, a person who owns or operates, or both, a motor vehicle that uses natural gas does not have to obtain an annual decal from the Liquefied Petroleum Gas Board or remit the motor fuel excise tax prescribed in Article 3A of Chapter 17 of Title 40, Code of Alabama 1975, until October 1, 2016.

This bill would establish a uniform motor fuel and enforcement system for the collection of excise tax on compressed natural gas and liquefied natural gas.

This bill would provide for civil and criminal penalties for a violation.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-17-160, and Sections 40-17-161 and 40-17-165, as amended by Act 2014-145 of the 2014 Regular Session, and Section 40-17-167, as amended by Act 2014-408 of the 2014 Regular Session, Code of Alabama 1975, relating to the liquefied petroleum gas fuel tax; to establish an efficient and uniform motor fuel and enforcement system for the collection of excise tax on compressed natural gas and liquefied natural gas; to add Article 3B, to Chapter 17 of Title 40, commencing with Section 40-17-168 of the Code of Alabama 1975, to establish an efficient, uniform motor fuel tax collection and enforcement system for the collection of the excise tax on compressed natural gas and liquefied natural gas; to provide for civil and criminal penalties for a violation; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-17-160, and Sections 40-17-161 and 40-17-165, as amended by Act 2014-145 of the 2014 Regular Session, and Section 40-17-167, as amended by Act 2014-408 of the 2014 Regular Session, Code of Alabama 1975, are amended to read as follows:

§40-17-160.

"In lieu of an excise tax on liquefied petroleum gas and natural gas used to propel motor vehicles over the highways of this state, there is hereby levied an annual flat fee on the following classes of vehicles which require a motor vehicle license using liquefied petroleum gas or natural gas as fuel. For all other purposes other than the excise tax, the terms "liquefied petroleum gas" and "natural gas" shall be included with the term gasoline as defined in Section 40-17-30 40-17-322:

"Class 1. Passenger automobiles, vans, and trucks and pickups under one ton.....................$75.00

"Class 2. Recreational vehicles and vans and trucks one ton or over but with a rear axle carrying capacity of less than 14,000 pounds.......$85.00

"Class 3. Bobtail trucks and equivalent vehicles to be defined as any other vehicle having the capacity of carrying a loaded rear axle weight of 14,000 pounds or more.......$150.00

"Class 4. Tractor/trailer units..............................................................$175.00

§40-17-161.

"(a) Every person owning and/or operating such vehicles shall make application for and obtain an annual decal from the Liquefied Petroleum Gas Board which shall serve as an identification marker that the flat fee has been paid. Each decal issued by the Liquefied Petroleum Gas Board shall not exceed a cost of five dollars ($5). The decal shall be in such form and of such size as the Liquefied Petroleum Gas Board shall prescribe. Such decal shall be attached or affixed to the vehicle in the place and manner prescribed by the Liquefied Petroleum Gas Board. The decals provided for in this chapter shall be issued for a term that shall begin at April 1 of each year and expire on March 31 of the following year. If any passenger automobile or truck is acquired, liquefied petroleum gas or natural gas system installed or vehicle put in operation after September 30 the fee shall be one-half the flat fee stated in Section 40-17-160, or after December 31, the fee shall be one-fourth of the flat fee stated in Section 40-17-160. Owners of all newly converted vehicles must apply for the required decal as provided for in Section 40-17-160 within 10 days of the completion date in which the liquefied petroleum or natural gas system was installed on the vehicle. Failure to submit an application within the 10-day period requires the payment of penalties as prescribed by Section 40-17-164.

"(b) In order to easily identify vehicles using liquefied petroleum gas as a motor fuel to police, fire and rescue members, a decal reading "Powered by Liquefied Petroleum Gas" shall be prominently displayed on the rear of any vehicle using liquefied petroleum gas as a motor fuel. The decal colors shall be blue with a white background with the letters no smaller than one inch in size. Provided, however, that such decal shall not be required on liquefied petroleum gas bobtail delivery units.

"(c) The board administrator and the board inspectors shall have the power and authority to issue a uniform nontraffic citation to any person violating the provisions of this section. For the purpose of enforcing this section, there shall be prima facie evidence that a connected, operational liquefied petroleum gas carburetion system, which is part of a dual or switchable gasoline-liquefied petroleum gas system, has been in use, if there is liquefied petroleum gas in the liquefied petroleum gas tank. Any violation of the provisions of this section shall constitute a Class B misdemeanor as defined in Title 13A, and shall be punished as provided by law.

§40-17-165.

"If an out-of-state vehicle comes to a propane or natural gas dealer or supplier in the State of Alabama to purchase fuel, the dealer must collect in lieu of any fees levied by this chapter an amount equal to the current Alabama motor fuel tax in effect as prescribed by Section 40-17-325(a)(2), and remit these funds to the Alabama LP-Gas Board before the 20th of the following month after the date of the sale. Decals for out-of-state vehicles can be purchased with decal fees and issuance fees to be paid as prescribed by Sections 40-17-160 and 40-17-161.

§40-17-167.

"(a) The Legislature of Alabama makes the following findings and statements:

"(1) The reduction of the dependence on foreign oil is necessary to reserve and protect our national security.

"(2) Reliable and affordable energy is of great importance to all sectors of Alabama's economy.

"(3) Long-term sustainability of energy supply and efficient and effective distribution of energy is becoming increasingly important to Alabama's population growth and economic expansion.

"(4) The future energy needs of the state also present opportunities to diversify the state's energy supply and provide new opportunities for Alabama-based clean energy technologies.

"(5) The use of existing technology and development of new technologies including compressed and liquefied natural gas should be encouraged as a way of producing energy with reduced emissions.

"(b) The Legislature recognizes that it is in the best interest of its citizens to remove existing barriers to implementing natural gas distribution for motor vehicles until such time as a comprehensive approach is established for regulating and taxing natural gas for motor vehicles. This includes temporarily eliminating the decals and associated fees that are currently required of owners or operators of motor vehicles using compressed and liquefied natural gas, as well as temporarily suspending any motor fuel excise taxes due on compressed or liquefied natural gas used as fuel for vehicles.

"(c)(1) The requirement to obtain a decal from the Liquefied Petroleum Gas Board, as well as the requirement to collect the motor fuel tax as prescribed in this article, are hereby suspended from April 9, 2014, until October 1, 2016.

"(2) In the event that no comprehensive approach for regulating and taxing natural gas used as fuel for motor vehicles has been established by October 1, 2016, beginning on that date each 5.66 pounds of Beginning October 1, 2017, compressed natural gas that is taxable as motor fuel shall be taxed as one gallon of gasoline, and each 6.06 pounds of or liquefied natural gas that is taxable as motor fuel shall be taxed as one gallon of diesel fuel as provided in Article 3B, Chapter 17, Title 40. Provided, however, that if the National Conference for Weights and Measures establishes standards for converting compressed natural gas to a gallon of gasoline and for converting liquefied natural gas to a gallon of diesel fuel, such standard conversions shall be used.

"(3) Compressed natural gas and liquefied natural gas may be sold in gallon equivalents as established in subdivision (2) until October 1, 2016. In the event that no comprehensive approach for regulating and taxing natural gas used as fuel for motor vehicles has been established at that time, compressed natural gas and liquefied natural gas shall be sold in gallon equivalents as established in subdivision (2).

"(4)(3) This section shall not apply to the remainder of this article."

Section 2. A new Article 3B, commencing with Section 40-17-168, is added to Chapter 17 of Title 40 of the Code of Alabama 1975, as follows:

§40-17-168.

The Legislature declares that the intent of this article is to establish an efficient, uniform motor fuel tax collection and enforcement system, for the collection of the excise tax on compressed natural gas and liquefied natural gas.

§40-17-169.

For purposes of this article, the following terms shall have the following meanings:

(1) COMMISSIONER. The Commissioner of the Department of Revenue.

(2) COMPRESSED NATURAL GAS (CNG). Natural gas under pressure which remains clear and non-corrosive. Compressed natural gas is typically stored in a tank at a pressure of 3000 to 3600 psi.

(3) DEPARTMENT. The Department of Revenue.

(4) DIESEL GALLON EQUIVALENT (DGE) or DIESEL-EQUIVALENT GALLON (DEG). The amount of alternative fuel it takes to equal the energy content of one liquid gallon of diesel fuel. DGE allows consumers to compare the energy content of competing fuels against a commonly known fuel-diesel fuel. The DGE is 6.06 pounds of liquefied natural gas for one gallon of diesel fuel or 6.38 pounds of compressed natural gas for one gallon of diesel fuel unless the National Conference for Weights and Measures establishes standards for converting liquefied natural gas or compressed natural gas to a gallon of diesel fuel at which time such standard conversion shall be used.

(5) FLEET PRODUCER. Any person, entity, or business producing CNG or LNG for use in vehicles that are owned and operated as a unit.

(6) GASOLINE GALLON EQUIVALENT (GGE) or GASOLINE-EQUIVALENT GALLON (GEG). The amount of alternative fuel it takes to equal the energy content of one liquid gallon of gasoline. GGE allows consumers to compare the energy content of competing fuels against a commonly known fuel-gasoline. The GGE is 5.66 pounds of compressed natural gas for one gallon of gasoline unless the National Conference for Weights and Measures establishes standards for converting compressed natural gas to a gallon of gasoline at which time such standard conversion shall be used.

(7) LIQUEFIED NATURAL GAS (LNG). Natural gas in a liquid form that is clear, colorless, non-corrosive, and non-toxic. Liquefied natural gas is produced when natural gas is cooled to minus 259 degrees Fahrenheit through a process known as liquefaction. During this process, the natural gas, which is primarily methane, is cooled below its boiling point, whereby certain concentrations of hydrocarbons, water, carbon dioxide, oxygen, and some sulfur compounds are either reduced or removed.

(8) NATURAL GAS. A fossil fuel comprised mostly of methane and is one of the cleanest burning alternative fuels. It can be used in the form of compressed natural gas (CNG) or liquefied natural gas (LNG) to fuel a vehicle.

(9) PERSONAL PRODUCER OF CNG. Any individual producing and using CNG as a fuel in a personal vehicle.

(10) PUBLIC SELLER OF CNG/LNG. Any person operating a service station or other retail outlet engaged in the selling of CNG or LNG to the ultimate consumer for use in a vehicle.

§40-17-170.

(a) There is hereby levied an excise tax on compressed natural gas (CNG) and liquefied natural gas (LNG) of an amount equal to the current Alabama motor fuel tax in effect as prescribed by Section 40-17-325 (a)(2) per gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE) on compressed natural gas or per diesel gallon equivalent (DGE) on liquefied natural gas as follows:

(1) Every public seller shall collect and pay over to the department an excise tax of an amount equal to the current Alabama motor fuel tax in effect as prescribed by Section 40-17-325 (a)(2) per GGE or DGE on compressed natural gas or per DGE on liquefied natural gas upon the sale of the compressed natural gas or liquefied natural gas for use in a vehicle.

(2) Fleet producers of compressed natural gas or liquefied natural gas shall remit to the department an excise tax of an amount equal to the current Alabama motor fuel tax in effect as prescribed by Section 40-17-325(a)(2) per GGE or DGE on compressed natural gas or per DGE on liquefied natural gas withdrawn for use in a vehicle.

(b) Each personal producer of compressed natural gas shall submit an application fee for an account number to the department within 10 days from the completed date of installation of a system to compress natural gas. Failure to submit an application within the 10-day period may subject the personal producer to a penalty of five hundred dollars ($500). There is hereby levied an annual application and renewal fee of two hundred dollars ($200) per vehicle for all personal producers of compressed natural gas in lieu of the excise tax levied in subsection (a). The annual application fee shall be one hundred dollars ($100) per vehicle for any individual who becomes a personal producer of compressed natural gas for use in a personal vehicle after June 30 of each calendar year. The annual application or renewal fee shall be due January 20 of each calendar year beginning with January 1, 2018, and each calendar year thereafter. The personal producer shall include the vehicle identification number of each vehicle that is powered by compressed natural gas on the annual application. The annual fee shall not apply to a fleet producer. A bond may not be required for a personal producer of compressed natural gas who files the annual application or renewal fee. A refund may not be granted to the personal producer if the vehicle is sold during the calendar year. The personal producer shall notify the department if he or she ceases to be a personal producer of compressed natural gas for use in a vehicle.

§40-17-170.1.

Each application for a license under this article shall be made upon a form prescribed by the commissioner and furnished by the department.

§40-17-170.2.

(a) Each person engaged in business in this state as a public seller of CNG/LNG or a fleet producer of CNG/LNG shall first obtain a public seller of CNG/LNG or a fleet producer of CNG/LNG license. The application fee for a public seller of CNG/LNG or a fleet producer of CNG/LNG license is fifty dollars ($50). Only one license is necessary for multiple locations; however, the public seller of CNG/LNG or a fleet producer of CNG/LNG shall remit a twenty-five dollar ($25) registration fee for each additional location in existence or upon establishing or acquiring a new location.

(b) All fees collected under this section, except those refunded, and the personal producer annual application or renewal fees shall be paid into the State Treasury and distributed in accordance with Section 40-17-361(a).

§40-17-170.3.

(a) Upon approval of the application by the department, the applicant shall file with the department a surety bond which for an applicant for a license as a public seller of CNG/LNG or a fleet producer of CNG/LNG shall be a minimum of twenty-five thousand dollars ($25,000) or in the approximate amount of twice the average monthly tax liability, whichever is greater.

(b) The department shall review the bond amounts every five years beginning January 2022 to ensure that each public seller of CNG/LNG and fleet producer of CNG/LNG has posted a surety bond sufficient to cover twice the average monthly tax liability as referenced in subsection (a). Based upon this review or at any time that the department determines that the bond amount is insufficient to cover twice the average monthly tax liability, the commissioner may require an additional surety bond from any licensee if:

(1) The commissioner determines that the surety on an existing bond is unsatisfactory.

(2) A surety notifies the department that it intends to cancel a bond as provided in subsection (d).

(3) The commissioner, after reviewing the payments history of the licensee, determines that the existing bond of the licensee is insufficient in an amount to insure the prompt payment of all excise taxes that are due or may become due the state by the licensee upon the sale or withdrawal of motor fuel. However, in no case shall a new or additional bond be more than two months of average excise tax owed by the licensee.

(c) The department shall notify a licensee at his or her last known address by first class U.S. mail or, at the option of the department, certified mail, return receipt requested, that it is requiring a new or additional bond for any reason as provided above, and the licensee, within 30 days from the date the notice is mailed by the department, shall either:

(1) File the new or additional bond as requested by the department.

(2) File a notice of appeal with the Alabama Tax Tribunal as allowed in Chapter 2A of this title. The department may immediately cancel the licensee's license upon the expiration of the 30-day period set out above if the licensee fails to either provide the new or additional bond requested by the department or timely appeal to the Alabama Tax Tribunal.

(d) Any surety on an existing bond furnished by a licensee may notify the department in writing of its intent to cancel the bond. The department shall immediately notify the licensee of the intent of the surety to cancel and the licensee shall have 30 days from the date the notice is mailed by the department to provide a sufficient replacement bond as requested by the department. The department may immediately cancel the licensee's license upon expiration of the 30-day period set out above if the licensee fails to either provide a new replacement bond as requested by the department or appeal the proposed revocation to the Alabama Tax Tribunal within the 30 days as allowed by Chapter 2A of this title. The surety requesting to be released shall remain liable for any liability already accrued or which shall accrue during the 30-day period set out above, but shall not be responsible for any liability which accrues after the 30-day period.

(e) A surety providing a bond must be authorized to engage in business within this state. The surety bonds are conditioned upon faithful compliance with the provisions of this article, including the filing of returns and the payment of all tax prescribed herein. The surety bonds shall be approved by the commissioner as to sufficiency and form, and shall indemnify the state against any loss arising from the failure of the licensee to pay, for any cause, the motor fuel excise tax levied by this article.

(f) The personal producer of CNG may not required to post a bond.

§40-17-170.4.

(a) The department may refuse to issue a license under this article if the applicant, one of the officers, limited liability company, or member of the limited liability company has done any of the following:

(1) Had a compressed natural gas or liquefied natural gas license or registration issued by this state or another state canceled for cause.

(2) Been convicted of any offense involving fraud or misrepresentation.

(3) Been convicted of any other offense that indicates that the applicant may not comply with this article if issued a license.

(b) The department may also refuse to issue a license if the applicant is in arrears to the state for any taxes or for other good cause shown.

(c) Any refusal by the department under this section to issue a license may be appealed to the Alabama Tax Tribunal under the provisions of Chapter 2A of this title.

§40-17-170.5.

Upon approval of the required bond, the department shall issue the license to the applicant. The license is not transferable and remains in effect until surrendered or canceled.

§40-17-170.6.

(a) A licensee who discontinues in its entirety the business for which a license was authorized by this article shall notify the department in writing at least 10 days prior to the time the discontinuance, sale, or transfer takes effect, and shall surrender the license to the department. The notice shall state the effective date of the discontinuance and, if the licensee has transferred the business or otherwise relinquished control to another person by sale or other means, the date of the sale or transfer and the name and address of the person to whom the business is transferred or relinquished. The notice shall also include any other information required by the department.

(b) All taxes for which the licensee is liable under this article but are not yet payable shall be due on the date of the discontinuance. If the licensee has transferred the business to another person and does not give the notice required herein, the person to whom the business was transferred is jointly and severally liable for the amount of any tax owed by the licensee to this state on the date the business was transferred. The liability of the person to whom the business was transferred may not exceed the value of the property and business acquired from the licensee.

§40-17-170.7.

(a) In accordance with the provisions of Chapter 2A of this title, the department may cancel any license required under this article, upon written notice sent to the licensee's last known address, as it appears in the department's files, for any of the following reasons:

(1) Filing by the licensee of a false report of the data or information required by this article.

(2) Failure, refusal, or neglect of the licensee to file a report or to provide any information required by this article.

(3) Failure of the licensee to pay the full amount of all excise taxes due or to pay any penalties or interest due.

(4) Failure of the licensee to keep accurate records of the quantities of compressed natural gas or liquefied natural gas produced, sold, or used in Alabama.

(5) Failure to file a new or additional surety bond upon request of the department pursuant to this article.

(6) Conviction of the licensee or a principal of the licensee for any act prohibited under this article.

(7) Failure, refusal, or neglect of a licensee to comply with any other provision of this article or any rule promulgated pursuant to this article.

(8) Having a compressed natural gas or liquefied natural gas license or registration issued by another state canceled for cause.

(9) For any change in the ownership or control of the business.

(b) The license can be canceled upon the written request of the licensee.

§40-17-170.8.

(a) The licensed public seller of compressed natural gas or liquefied natural gas or the licensed fleet producers of compressed natural gas or liquefied natural gas may deduct the number of gallons of compressed natural gas or liquefied natural gas sold or disbursed to the following entities provided that the exempt entity has a valid exempt entity license issued in accordance with Section 40-17-332(j); however, an exempt entity license may not be required of the following:

(1) The United States government or any agency thereof.

(2) Any county governing body of this state.

(3) Any incorporated municipal governing body of this state.

(4) City and county boards of education of this state.

(5) The Alabama Institute for Deaf and Blind, the Department of Youth Services school district, and private and church school systems as defined in Section 16-28-1, and which offer essentially the same curriculum as offered in grades K-12 in the public schools of this state.

(b) The exempt entity is not entitled to apply for a refund for any excise tax paid to the licensed public seller or licensed fleet producer. The licensed public seller or licensed fleet producer must take the deduction for all gallons of compressed natural gas or liquefied natural gas sold to the licensed exempt entity on the monthly tax return. The licensed exempt entity must provide the licensed public seller or licensed fleet producer with his or her exempt entity number prior to the purchase.

§40-17-170.9.

(a) Each licensed public seller or licensed fleet producer shall file the monthly return required herein, in a format prescribed by the commissioner, on or before the 20th day of each calendar month for the preceding month.

(b) The tax levied by this article shall be paid to the department by each taxpayer on or before the 20th day of each calendar month for the preceding month and shall be accompanied by any required returns. The department may require all or certain taxpayers to file tax returns and payments electronically.

(c) If the returns or payments are not timely submitted, the taxpayer will be subject to penalties in accordance with Chapter 2A of this title and interest in accordance with Chapter 1 of this title.

§40-17-170.10.

(a) Each return required to be filed under this article shall be on forms and by means prescribed by the commissioner and furnished by the department and shall contain any information the department considers necessary for the enforcement of this article.

(b) The report shall contain all of the following information:

(1) A total of all monthly disbursements of compressed natural gas or liquefied natural gas, or both, made by the public seller or fleet producer for use in a motor vehicle for each retail station.

(2) A total of all monthly disbursements of compressed natural gas or liquefied natural gas, or both, to licensed exempt entities.

(3) The name and exempt entity license number of any exempt agency electing to be licensed under Section 40-17-332.

(c) The department may require the reporting of other information it considers reasonably necessary to the enforcement of this article.

(d) If the public seller or fleet producer has multiple locations, the public seller or fleet producer should file one monthly return for all locations in Alabama.

§40-17-170.11.

All tax payments due to this state that are received by a licensed public seller or a licensed fleet producer shall be held by the licensed public seller or licensed fleet producer as trustee in trust for this state, and the licensed public seller or licensed fleet producer has a fiduciary duty to remit to the department the amount of tax received. A licensed public seller or licensed fleet producer is liable for the taxes paid to it or that accrued at the time of the sale.

§40-17-170.12.

Each person required to be licensed under this article shall keep and maintain records of all purchases of natural gas, all sales or disbursement records, and other pertinent records and papers required by the department for the reasonable administration of this article, for a period of no less than three years.

§40-17-170.13.

(a) The proceeds of the thirteen cents ($.13) excise tax collected for compressed natural gas and liquefied natural gas imposed by this article, when collected, shall be applied in the same manner as Section 40-17-361(a).

(b) Revenues received or collected from the additional six cents ($.06) excise tax collected for compressed natural gas and liquefied natural gas by the department upon the selling, use or consumption, distributing, storing, or withdrawing from storage in this state of diesel fuel remaining after the payment of the expense of administration and enforcement of this section shall be distributed in the same manner as Section 40-17-361(b).

§40-17-170.14.

(a) It is the intent of the Legislature that the proceeds of the tax collected on the additional six cents ($.06) excise tax collected for compressed natural gas and liquefied natural gas under the provisions of this article shall be used in the same manner as Section 40-17-362(b).

(b) For the purposes of this section, the words and phrases in Section 40-17-362(b) shall have the same meanings as defined in Section 40-17-362(a).

§40-17-170.15.

(a) Each person who engages in any business activity for which a license is required by this article without having first obtained and subsequently retained a valid license shall be subject to the following civil penalties:

(1) Ten thousand dollars ($10,000) for the first violation.

(2) For each subsequent violation, the amount is to be multiplied by the sum of the current violation plus prior violations.

(b) Civil penalties prescribed under this section shall be assessed, collected, and paid in the same manner as the compressed natural gas or liquefied natural gas tax.

§40-17-170.16.

(a) Any person who willfully does any of the following is guilty of a misdemeanor and upon conviction thereof shall be fined not less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000), or imprisoned for not more than one year, or both:

(1) Fails to obtain a license as required by this article prior to engaging in an activity for which a license is required.

(2) Fails to pay to this state no more than 30 days after the date the tax is due the tax levied by this article.

(3) Makes a false statement on an application, return, ticket, invoice, statement, or any other document required under this article.

(4) Fails to file no more than 30 days after it is due any return required by this article.

(5) Fails to maintain any record required by this article.

(6) Makes a false statement in an application for a refund.

(7) Fails to make required disclosure of the correct amount of compressed natural gas or liquefied natural gas sold or used in this state.

(8) Dispenses into the supply tank of a motor vehicle any compressed natural gas or liquefied natural gas on which tax levied by this article has not been paid.

(b) Any person who willfully does any of the following with the intent to either evade or circumvent the tax levied by this article or assists any other person in efforts to evade or circumvent the tax shall be guilty of a felony and upon conviction thereof shall be fined not less than twenty-five thousand dollars ($25,000) nor more than fifty thousand dollars ($50,000), or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned:

(1) Fails to pay compressed natural gas or liquefied natural gas taxes and diverts the tax proceeds for other purposes.

(2) As a licensee or the agent or representative of a licensee, converts or attempts to convert compressed natural gas or liquefied natural gas tax proceeds for the use of the licensee or the licensee's agent or representative, with the intent to defraud this state.

(3) Collects compressed natural gas or liquefied natural gas taxes when not authorized or licensed by the department to do so.

(4) Conspires with any other person or persons to engage in an act, plan, or scheme to defraud this state of compressed natural gas or liquefied natural gas tax proceeds.

(5) Fails to remit to the department any tax levied pursuant to this article if the person has added, or represented that he or she has added, the tax to the sales price for the compressed natural gas or liquefied natural gas and has collected the amount of the tax.

(c) Each offense under this section is subject to a separate criminal penalty.

§40-17-170.17.

There is appropriated from the General Fund to the Department of Revenue, for the fiscal year ending September 30, 2016, two hundred fifty thousand dollars ($250,000), to offset its costs to implement and administer this article. Every year thereafter as a first charge against the revenues collected under the provisions of this article, an amount of revenue shall be appropriated to the Department of Revenue to offset its costs in the administration of this article.

§40-17-170.18.

Sections 1 and 2 of Act 2014-408 of the 2014 Regular Session, now appearing as Section 40-17-167, suspended the requirement to obtain a decal from the Liquefied Petroleum Gas Board as well as the requirement to collect the motor fuel tax as prescribed in Article 3A of Chapter 17 of this title relating to motor vehicles using compressed and liquefied natural gas as fuel until October 1, 2016. The passage of the act adding this section shall extend the time allotted to establish a uniform enforcement system for the collection of the excise tax on compressed natural gas and liquefied natural gas until October 1, 2017.

§40-17-170.19.

The commissioner may promulgate rules necessary to effectuate the reporting, collection, administration, and enforcement of the taxes imposed under this article. The commissioner shall prescribe the forms or format for reporting the information required herein.

Section 3. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 4. The provisions of this act are severable. If any part of this act is declared invalid or unconstitutional, that declaration shall not affect the part which remains.

Section 5. All laws or parts of laws which conflict with this act are repealed.

Section 6. In Section 2 of this act, the section referencing the administrative fee shall become effective on October 1, 2016, following its passage and approval by the Governor, or its otherwise becoming law. All other parts of this act shall become effective on October 1, 2017, following its passage and approval by the Governor, or upon its otherwise becoming law.

Taxation

Motor Fuel

Natural Gas

Revenue Department

Crimes and Offenses

Criminal Law and Procedure

Code Added

Code Amended