SF 3791

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to motor fuels; modifying provisions relating to petroleum product
distribution; amending Minnesota Statutes 2006, sections 296A.01, subdivisions
44, 45; 296A.03, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 296A.01, subdivision 44, is amended to
read:

Subd. 44.

Received.

(a) Except as otherwise provided in this subdivision, petroleum
products brought into this state shall be deemed to be "received" in this state at the time
and place they are unloaded in this state. When so unloaded such products shall be
deemed to be received in this state by the person who is the owner immediately after such
unloading; provided, however, that if such owner is not licensed as a distributor in this
state and if such products were shipped or delivered into this state by a person who is
licensed as a distributor, then such products shall be deemed to be received in this state by
the licensed distributor by whom the same were so shipped or delivered.

(b) Petroleum products produced, manufactured, or refined, at a refinery in this
state and stored there, or brought into the state by boat deleted text begin or deleted text end new text begin , new text end barge new text begin , or rail, new text end or like form of
transportation and delivered at a marine terminal in this state and stored there, or brought
into the state by pipeline and delivered at a pipeline terminal in this state and stored
there, new text begin or brought into the state by rail car, new text end shall not be considered received until they are
withdrawn from such refinery or terminal for sale or use in this state or for delivery or
shipment to points within this state.

(c) When withdrawn such products shall be deemed received by the person who was
the owner immediately prior to withdrawal; unless (1) such products are withdrawn for
shipment or delivery to another licensed distributor, in which case the licensed distributor
to whom such shipment or delivery is made shall be deemed to have received such
products in this state, or (2) such products are withdrawn for shipment or delivery to a
person not licensed as a distributor, under one or more sale or exchange agreements by
or between persons one or more of whom is a licensed distributor, in which case the
last purchaser or exchangee under such agreement or agreements, who is licensed as a
distributor, shall be deemed to have received such products in this state.

(d) Petroleum products produced in this state in any manner other than as covered
in this subdivision shall be considered received by the producer at the time and place
produced.

Sec. 2.

Minnesota Statutes 2006, section 296A.01, subdivision 45, is amended to read:

Subd. 45.

Refinery or terminal.

"Refinery" or "terminal" means any petroleum
refinery, pipeline terminal, river terminal, storage facility, new text begin rail car, new text end or other point of origin
where petroleum products are manufactured, or imported by rail, truck, barge, or pipe;
and held, stored, transferred, offered for distribution, distributed, offered for sale, or sold.
For the purpose of restricting petroleum product blending, this definition includes all
refineries and terminals within and outside of Minnesota. For the purpose of assessing
fees, this definition does not include a licensed distributor's bulk storage facility that is
used to store petroleum products for which the petroleum inspection fee charged under
chapter 239 is either not due or has been paid.

Sec. 3.

Minnesota Statutes 2006, section 296A.03, subdivision 2, is amended to read:

Subd. 2.

Qualifications.

(a) A distributor's license shall be issued to any responsible
person who applies and qualifies as a distributor.

(b) Upon application to the commissioner, the commissioner must issue a
distributor's license to any person who:

(1) receives petroleum products in this state for bulk storage and subsequent
distribution by tank truck;

(2) produces, manufactures, or refines petroleum products in this state;

(3) holds an unrevoked license as a distributor as of July 1, 1994;

(4) imports petroleum products into this state via boat, barge, or pipeline for storage
and subsequent delivery at or further transportation from boat, barge, or pipeline terminals
in this state; deleted text begin or
deleted text end

(5) new text begin imports petroleum products into this state via rail car for storage and subsequent
delivery from the rail car in this state; or
new text end

new text begin (6) new text end holds a license and performs a function under the motor fuel tax law of an
adjoining state equivalent to that of a distributor under this chapter, who desires to ship
or deliver petroleum products from that state to persons in this state not licensed as
distributors in this state and who agrees to assume with respect to all petroleum products
so shipped or delivered the liabilities of a distributor receiving petroleum products in
this state; provided, however, that any such license shall be issued only for the purpose
of permitting such person to receive in this state the petroleum products so shipped or
delivered. Except as herein provided, all persons licensed as distributors under this clause
shall have the same rights and privileges and be subject to the same duties, requirements,
and penalties as other licensed distributors.