Administrative Rule Review Report  #AR11-070

Legislative Service Office

15-Dec-11

 

AGENCY:                                       Department of Transportation

 

DATE SUBMITTED:                     12/16/2011

 

SUBJECT:                                       Chapter 1, Fuel Tax Administration.

 

NATURE OF RULES:                   Legislative and procedural

 

STATUTORY AUTHORITY:        W.S 39-17-102 and 39-17-202

 

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:

 

Apparently complete to date.  Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28-9-103(d).  No comments have been received to date. The Agency did receive a number of comments during the comment period and made various changes to the rules in response to the comments.  The changes which were incorporated are indicated in the comment and response summary provided by the Agency.

 

SUMMARY OF RULES:  These rules adopt new and revised procedural and legislative requirements which comply with two pieces of legislation passed during the 2011 General Session, House Enrolled Act No. 44 and 78.  The rules revise Chapter 1, Fuel Tax Administration to remove certain agricultural use procedures, to alter licensing procedures, to amend the ethanol credit program and to mandate electronic filing following a graduated schedule for compliance.  The rules also substitute permissive disclosure requirements for mandatory disclosure requirements for license applicants, amend statutory references, expand billed gallon reporting for suppliers, distributors, importers and exporters and clarify that only excess fuel tax collections shall be remitted.  The rules clarify what types of bulk storage is reportable by bulk plants, specify what proof is necessary to qualify for fuel tax refunds, specify the time period for the issuance of refunds and clarify that the $.01 per gallon environmental surcharge on gasoline and diesel is not refundable.  Finally, the rules amend ethanol tax credit provisions by stating the statutory requirement that ethanol producers purchase no less than 25% Wyoming-origin products to be used in the production of ethanol and by stating the $4 million limit on ethanol tax credits.

 

FINDINGS:  Except as noted below, the rules appear to be within the scope of statutory authority and legislative intent.

 

LSO noted two provisions which may need clarification in the new rules.  First, new Section 10, Limitations for Allowing Credits or Refunds, does not specify that persons seeking refunds must submit all necessary documentation to the Agency within 1 year following the date fuel was purchased.  This 1 year requirement was adopted in 2011 House Enrolled Act 44.  Second, new Section 15(c) discloses the $4 million tax credit limit established by W.S. 39-17-109(d)(iv)(A), but does not specify that it is an annual, not cumulative, limit.  Section 15(c) should indicate that the tax credit is limited to $4 million per year.  LSO does not believe that incorporating these two statutory requirements in the rules would require repromulgation of the rules.

 

STAFF RECOMMENDATION:  That the rules be approved by the Council as submitted by the Agency but that the Governor direct the Agency to specify in the rules the 1 year time limit and $4 million per year tax credit limit, as described above.

 

 

 

 

                                                                        _______________________

                                                                        Ian Shaw

                                                                        Staff Attorney

 

 

 

 

 

                                                                        _______________________

                                                                        Lynda G. Cook

                                                                        Staff Attorney

IDS/cj