HB158 Alabama 2017 Session

Summary

Primary Sponsor

Jimmy Martin

Republican

Session

Regular Session 2017

Title

Petroleum products, inspection fees, bonded distributor replaced by an inspection fee permit holder, bonding requirement deleted, Secs. 8-17-80, 8-17-87, 8-17-96, 8-17-97, 8-17-99, 8-17-101 am'd.

Summary

HB158 removes the $5,000 bond requirement to obtain an inspection fee permit and shifts the program from bonded distributors to an inspection fee permit holder.

What This Bill Does

The bill eliminates the mandatory $5,000 bond that was required to issue an inspection fee permit. It creates and defines the role of an 'Inspection Fee Permit Holder' who is issued the permit by the Revenue Department and is responsible for collecting and remitting inspection fees. The scheme continues to impose fuel inspection fees at various rates (primarily 2 cents per gallon for gasoline and undyed diesel, with different or reduced rates for dyed fuels and other products) and requires monthly electronic reporting and payment, with penalties, interest, and liens for nonpayment. The act becomes effective immediately upon passage.

Who It Affects

• Fuel suppliers, permissive suppliers, importers, first sellers, and bonded distributors: They no longer need to post a $5,000 bond to obtain an inspection fee permit; they must obtain an inspection fee permit and thereafter collect/remit inspection fees and file monthly electronic reports.
• Ultimate consumers and exempt entities (e.g., aviation fuels exemptions and other specified exemptions): They continue to be subject to the inspection fees when purchasing or using fuels, with certain uses exempt or subject to reduced rates.

Key Provisions

• Eliminates the $5,000 bonding requirement for obtaining an inspection fee permit and removes the corresponding bond obligations in sections 8-17-80, 8-17-87, 8-17-96, 8-17-97, 8-17-99, and 8-17-101.
• Introduces and defines 'Inspection Fee Permit Holder' as the permit recipient from the Revenue Department, replacing the prior bonded distributor framework for handling inspection fees; the permit is non-transferable and remains in effect until surrendered or canceled.
• Maintains the fossil fuel inspection fee structure (e.g., 2 cents per gallon for gasoline and undyed diesel; 1 cent per gallon for dyed kerosene; reduced rates for certain dyed fuels when used for specific agricultural, maritime, railroad, or wood-treatment purposes) and requires monthly electronic reporting and payment.
• Preserves enforcement tools such as penalties, interest, liens, and the Revenue Commissioner’s rulemaking authority; allows immediate cancellation of permits for noncompliance; makes the act effective immediately.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Bonds