Virginia Code 58.1-2263: Shipping documents; transportation of motor fuel loaded at a terminal rack or bulk plant rack; civil penalty.
A. A person shall not transport motor fuel loaded at a terminal rack or bulk plant rack unless the person has a shipping document for its transportation that complies with this section. A terminal operator or operator of a bulk plant shall give a shipping document to the person who operates the means of conveyance into which motor fuel is loaded at the terminal rack or bulk plant rack.
Terms Used In Virginia Code 58.1-2263
- Aviation consumer: means any person who uses in excess of 100,000 gallons of aviation jet fuel in any fiscal year and is licensed pursuant to Article 2 (§ Virginia Code 58.1-2201
- Aviation jet fuel: means fuel designed for use in the operation of jet or turbo-prop aircraft, and sold or used for that purpose. See Virginia Code 58.1-2201
- Bulk plant: means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack. See Virginia Code 58.1-2201
- Commissioner: means the Commissioner of the Department of Motor Vehicles. See Virginia Code 58.1-2201
- Destination state: means the state, territory, or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container, or a type of transportation equipment for the purpose of resale or use. See Virginia Code 58.1-2201
- Distributor: means a person who acquires motor fuel from a supplier or from another distributor for subsequent sale. See Virginia Code 58.1-2201
- Fuel: includes motor fuel and alternative fuel. See Virginia Code 58.1-2201
- Gross gallons: means an amount of motor fuel measured in gallons, exclusive of any temperature, pressure, or other adjustments. See Virginia Code 58.1-2201
- Motor fuel: means gasoline, diesel fuel, blended fuel, and aviation fuel. See Virginia Code 58.1-2201
- Net gallons: means the amount of motor fuel measured in gallons when adjusted to a temperature of 60 degrees Fahrenheit and a pressure of 14. See Virginia Code 58.1-2201
- Person: means any individual; firm; cooperative; association; corporation; limited liability company; trust; business trust; syndicate; partnership; limited liability partnership; joint venture; receiver; trustee in bankruptcy; club, society or other group or combination acting as a unit; or public body, including but not limited to the Commonwealth, any other state, and any agency, department, institution, political subdivision or instrumentality of the Commonwealth or any other state. See Virginia Code 58.1-2201
- Rack: means a facility that contains a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a transport truck, railroad tank car, or other means of transfer that is outside the terminal transfer system. See Virginia Code 58.1-2201
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
- Supplier: means (i) a position holder, or (ii) a person who receives motor fuel pursuant to a two-party exchange. See Virginia Code 58.1-2201
- Terminal: means a motor fuel storage and distribution facility (i) to which a terminal control number has been assigned by the Internal Revenue Service, (ii) to which motor fuel is supplied by pipeline or marine vessel, and (iii) from which motor fuel may be removed at a rack. See Virginia Code 58.1-2201
- Terminal operator: means a person who owns, operates, or otherwise controls a terminal. See Virginia Code 58.1-2201
B. The shipping document issued by the terminal operator shall be machine-printed and that issued by the operator of a bulk plant shall be on a printed form and both shall contain the following information and any other information required by the Commissioner:
1. Identification, including address, of the terminal or bulk plant from which the motor fuel was received;
2. Date the motor fuel was loaded;
3. Gross gallons loaded;
4. Destination state of the motor fuel, as represented by the purchaser of the motor fuel or the purchaser’s agent;
5. In the case of aviation jet fuel sold to an aviation consumer, the shipping document shall be marked with the phrase “Aviation Jet Fuel, Not for On-road Use” or a similar phrase; and
6. If the document is issued by a terminal operator, (i) net gallons loaded and (ii) tax responsibility statement indicating the name of the supplier who is responsible for the tax due on the motor fuel.
C. A terminal operator or bulk plant operator may rely on the representation made by the purchaser of motor fuel or the purchaser’s agent concerning the destination state of the motor fuel. A purchaser shall be liable for any tax due as a result of the purchaser’s diversion of fuel from the represented destination state.
D. A person to whom a shipping document was issued shall:
1. Carry the shipping document in the means of conveyance for which it was issued when transporting the motor fuel described;
2. Show the shipping document to a law-enforcement officer upon request when transporting the motor fuel described;
3. Deliver motor fuel described in the shipping document to the destination state printed on it unless the person:
a. Notifies the Commissioner before transporting the motor fuel into a state other than the printed destination state that the person has received instructions after the shipping document was issued to deliver the motor fuel to a different destination state;
b. Receives from the Commissioner a confirmation number authorizing the diversion; and
c. Writes on the shipping document the change in destination state and the confirmation number for the diversion; and
4. Give a copy of the shipping document to the distributor or other person to whom the motor fuel is delivered.
E. The person to whom motor fuel is delivered shall not accept delivery of the motor fuel if the destination state shown on the shipping document for the motor fuel is a state other than Virginia. To determine if the shipping document shows Virginia as the destination state, the person to whom the fuel is delivered shall examine the shipping document and keep a copy of the shipping document (i) at the place of business where the motor fuel was delivered for 90 days following the date of delivery and (ii) at such place or another place for at least three years following the date of delivery. The person who accepts delivery of motor fuel in violation of this subsection and any person liable for the tax on the motor fuel pursuant to Article 3 (§ 58.1-2217 et seq.) shall be jointly and severally liable for any tax due on the fuel.
F. Any person who (i) transports motor fuel loaded at a terminal rack or bulk plant rack without a shipping document or with a false or an incomplete shipping document or (ii) delivers motor fuel to a destination state other than that shown on the shipping document, shall be subject to a civil penalty. If the fuel is transported in a railroad tank car, the civil penalty imposed under this subsection shall be payable by the person responsible for the movement of the motor fuel in the railroad tank car. If the fuel is transported by any other means of conveyance, the civil penalty imposed under this subsection shall be payable by the person in whose name the means of conveyance is registered. The amount of the civil penalty assessed against a person for his first violation shall be $5,000. The amount of the civil penalty assessed against a person for his second or subsequent violation shall be $10,000.