Bill 2780

                    Current Status

Bill Number:               2780
Ratification Number:       181
Act Number                 130
Introducing Body:          House
Subject:                   Petroleum products redefined, analysts,
                           inspection, etc

(A130, R181, H2780)

AN ACT TO AMEND SECTIONS 39-41-10, 39-41-20, 39-41-50, 39-41-60, 39-41-70, 39-41-90, 39-41-100, 39-41-110, 39-41-120, 39-41-130, 39-41-140 AND 39-41-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GASOLINE, LUBRICATING OILS AND OTHER PETROLEUM PRODUCTS, SO AS TO REDEFINE "PETROLEUM" AND "PETROLEUM PRODUCT"; TO DELETE REQUIREMENTS RELATING TO THE APPOINTMENT OF ANALYSTS, CHEMISTS AND INSPECTORS; TO REQUIRE SUBMISSION BY BONDING COMPANIES OF ADDITIONAL PERSONS ADDED TO BOND COVERAGE; TO CHANGE REFERENCES TO OIL AND GASOLINE TO PETROLEUM PRODUCTS; TO IMPOSE ADDITIONAL REQUIREMENTS ON RECORD-KEEPING BY PERSONS SELLING PETROLEUM PRODUCTS; TO APPROVE SURETY BONDS AS ACCEPTABLE IN LIEU OF MONTHLY PREPAYMENTS PENDING MONTHLY REPORTS AND PAYMENTS; TO CHANGE A REFERENCE TO "CLAIMANT" TO "PAYEE" AND REQUIRE PROOF OF CLAIMS TO BE SUBMITTED WITHIN SIX MONTHS FROM THE DATE SHOWN ON THE DELIVERY MANIFEST PRIOR TO PAYING THE CLAIM FROM THE PETROLEUM PRODUCTS INSPECTION FUND; TO CHANGE THE PROCEDURE FOR THE PAYMENT OF FEES RECEIVED AND DELETE REFERENCES TO DRAWING MONEY RECEIVED FROM SUCH FEES FROM THE STATE TREASURER BY THE COMMISSIONER OF AGRICULTURE; TO AMEND THE CODE BY ADDING SECTIONS 39-41-240 AND 39-41-250 SO AS TO PROVIDE QUALITY AND SAFETY STANDARDS FOR TESTING PETROLEUM PRODUCTS AND PROVIDE FOR THE REGISTRATION OF GASOLINE, GASOHOL AND ALCOHOL-GASOLINE MIXTURES BY OCTANE INDEX; AND TO PROVIDE PENALTIES.

Be it enacted by the General Assembly of the State of South Carolina:

Petroleum or petroleum products redefined

SECTION 1. Section 39-41-10 of the 1976 Code is amended to read:

"Section 39-41-10. The term 'petroleum' or 'petroleum product' as used in this article shall be construed to mean gasoline, gasohol, kerosene, diesel fuels, jet fuels, fuel oil no. 1 through 4 or any like product of petroleum or any product which may be susceptible for use as petroleum products under whatever name called."

Commissioner of Agriculture to appoint analysts, etc.

SECTION 2. Section 39-41-20 of the 1976 Code is amended to read:

"Section 39-41-20. The Commissioner of Agriculture shall appoint such analysts, chemists and inspectors as may be required to carry out the provisions of this article. The inspectors may examine all barrels, tanks or other vessels containing petroleum or petroleum products to see that they are properly tagged as required in this article and they shall, as directed, collect and test samples of petroleum products offered for sale in the State and, when so instructed, collect and send samples to the Department of Agriculture for examination."

Manufacturers to file statement with the commissioner

SECTION 3. Section 39-41-50 of the 1976 Code is amended to read:

"Section 39-41-50. All manufacturers wholesalers and jobbers, before selling or ordering for sale in this State any petroleum product shall file with the Commissioner of Agriculture a statement that they desire to do business in the State and furnish the name or brand of the product which they desire to sell, with the name and address of the manufacturer and a statement that the product shall comply with the requirements of this article. On each January first thereafter, an up-to-date listing must be submitted by the bonded company covering additional jobbers, dealers, distributors, consigners, by whatever name called who shall receive and distribute in bulk quantities the petroleum products in South Carolina."

Manufacturers to give notice

SECTION 4. Section 39-41-60 of the 1976 Code is amended to read:

"Section 39-41-60. When petroleum products are shipped into this State, the manufacturer or jobber shall give notice to the Commissioner of Agriculture of every shipment in net gallons with the name and address of the person to whom it is sent and the number of gallons on the day shipment is made."

Petroleum products subject to inspection

SECTION 5. Section 39-41-70 of the 1976 Code is amended to read:

"Section 39-41-70. All petroleum products sold or offered for sale in this State and to be used in this State for power, illuminating or heating purposes, shall be subject to inspection and testing to determine their safety and value for power, illuminating or heating purposes. The Department of Agriculture may at any time or place have collected samples of any petroleum product offered for sale and have them tested and analyzed. The inspection of petroleum products as authorized in this article shall be under the direction of the Commissioner of Agriculture, who may make all necessary regulations for the inspection of such petroleum products, employ all necessary chemists and enforce standards as to safety, purity, value for power and heating purposes or absence of objectionable substances and luminosity, when not in conflict with the provisions of this article, and which he may deem necessary to provide the people of the State with satisfactory petroleum products."

Petroleum products complained of to be analyzed

SECTION 6. Section 39-41-90 of the 1976 Code is amended to read:

"Section 39-41-90. Whenever a complaint is made to the Department of Agriculture in regard to power, illuminating or heating qualities of any petroleum product sold in this State, the Commissioner shall cause a sample of such petroleum product complained of to be procured and have it thoroughly analyzed and tested as to safety or value for power or heating purposes or illuminating qualities. If such analysis or other tests shall show that the petroleum product is either unsafe or of inferior quality for power, heating or illuminating purposes, its sale shall be forbidden and reports of the result shall be sent to the person making the complaint and to the manufacturer of such petroleum product."

Records of shipments of petroleum products to be kept

SECTION 7. Section 39-41-100 of the 1976 Code is amended to read:

"Section 39-41-100. Any person who shall sell or offer for sale any petroleum product shall keep an accurate record of all lots of shipments of such product received by him and such products shipped by him. All delivery manifests (original and copies) shall show actual destination of products before they leave the terminal or location of origination. The alteration of shipping information on shipping documents involving petroleum products shall be considered a misdemeanor and subject to the penalties set forth in Section 39-41-160, unless the original and all copies are likewise adjusted and records amended."

Commissioner may inspect records

SECTION 8. Section 39-41-110 of the 1976 Code is amended to read:

"Section 39-41-110. The Commissioner of Agriculture and his duly authorized representatives may inspect all records of any person doing business in this State for the purpose of ascertaining information relative to the sales transportation or possession of petroleum products. Legible records shall be kept at the point of origin or reasonable approved proximity for auditing purposes."

Funds provided for inspecting, etc.

SECTION 9. Section 39-41-120 of the 1976 Code is amended to read:

"Section 39-41-120. For the purpose of providing funds for inspecting, testing and analyzing petroleum products and for general state purposes, there shall be paid to the Commissioner of Agriculture a charge of one-fourth cent per gallon, which payment shall be made before delivery to agents, dealers or consumers in the State. Upon approval of the Department, a surety bond is acceptable as monthly prepayments pending monthly reports and payments. Determination of acceptable bonding shall be based on distribution, location, terminal facilities and handling through other bonded suppliers."

Inspection fee

SECTION 10. Section 39-41-130 of the 1976 Code is amended to read:

"Section 39-41-130. Any person may present to the Commissioner of Agriculture proof that he has paid an inspection fee on petroleum products in error or has paid an inspection fee on shipments of petroleum products subsequently diverted from the State, whereupon the Commissioner of Agriculture shall refund the amount of the inspection fee to the payee out of the petroleum products inspection fund, provided the proof of the claim is submitted within six months from the date shown on the delivery manifest."

Fees

SECTION 11. Section 39-41-140 of the 1976 Code is amended to read:

"Section 39-41-140. Fees shall be received no later than the twentieth of each month by the Commissioner of Agriculture and all monies received under the provisions of this article shall be paid into the State Treasury. Such monies shall be turned over monthly by the Commissioner to the State Treasurer, as are other funds."

Provisions not to apply

SECTION 12. Section 39-41-200 of the 1976 Code is amended to read:

"Section 39-41-200. The provisions of this article shall not apply to a retail dealer in petroleum products unless such retail dealer shall sell or offer to sell petroleum products of a manufacturer, wholesaler or jobber who refuses to comply with the provisions of this article."

Quality and safety standards-gasoline, etc., offers for sale shall be registered

SECTION 13. The 1976 Code is amended by adding:

"Section 39-41-240. Quality and safety standards for testing of gasoline, gasohol, diesel fuel, kerosene, fuel oil and petroleum products shall be the specifications promulgated by the American Society for Testing and Materials unless other standards are promulgated by the Commissioner of Agriculture in accordance with Section 39-41-80.

Section 39-41-250. All gasoline, gasohol and alcohol-gasoline mixtures for gasoline type engines that are sold, offered or exposed for sale or distribution in South Carolina shall be registered by each identifying brand name or grade designation and the corresponding minimum guaranteed Octane Index. Prescribed registration forms will be provided by the Department of Agriculture. The Octane Index, the average of the Research Octane Number and the Motor Octane Number (R+M)/2 shall be the designated number for registration, delivery invoices, bills of lading, delivery tickets, posting on dispensing pumps and for advertising purposes, when so stated. The minimum Octane Index guarantee for premium grade gasoline, gasohol and alcohol-gasoline mixtures shall be ninety-one. The minimum Octane Index guarantee for regular grade gasoline, gasohol and alcohol-gasoline mixtures shall be eighty-seven. Gasoline, gasohol and alcohol-gasoline mixtures having Octane Indices below eighty-seven must be registered and labeled as substandard or subregular."

Time effective

SECTION 14. This act shall take effect upon approval by the Governor.