Assigned to TTMC AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2573
use fuel dispenser labels; penalties
Purpose
Reduces the civil penalty, from $100 per day to $100, for failing to properly affix a use
fuel label and requires dispenser labels to be provided to vendors who comply with prescribed
record retention requirements.
Background
According to standards established by the Weights and Measurers Services Division of the
Arizona Department of Agriculture, a vendor must label use fuel dispensers to notify the purchaser
of the state use fuel tax rate, which is 18 cents per gallon for light class motor vehicles and 26 cents
per gallon for use class motor vehicles, and post: 1) a sign on each use fuel dispenser that indicates
that the price of the use fuel dispensed from that dispenser includes the applicable federal and state
taxes; 2) both use fuel tax rates, if light class and use class vehicles may fuel from the same
dispenser; and 3) any limitations on selling use fuel to light class or use class vehicles or
prohibitions on light class or use class vehicles dispensing fuel from a specific dispenser.
The Arizona Department of Transportation (ADOT) must provide use fuel dispenser labels
to vendors (A.R.S. § 28-5605). A vendor includes a person who sells use fuel in Arizona and places
the fuel, or causes the fuel to be placed, into any receptacle on a motor vehicle from which fuel is
supplied for propulsion, including a service station dealer, broker and user who sells use fuel to
others. A use class motor vehicle is a road tractor, truck tractor, truck or passenger-carrying vehicle
having a declared gross vehicle weight of more than 26,000 pounds or more than two axles that
uses use fuel on a state highway. A light class motor vehicle is a vehicle that uses use fuel on a
state highway and is not a use class motor vehicle (A.R.S. § 28-5601).
The Joint Legislative Budget Committee fiscal note estimates that H.B. 2573 would reduce
state revenues but the extent cannot be determined without input from ADOT (JLBC).
Provisions
1. Subjects, to a civil penalty of $100 rather than $100 each day the violation continues, a vendor
who fails to affix a use fuel label provided by ADOT, as prescribed.
2. Requires ADOT to provide use fuel dispenser labels to vendors who, for three years, maintain
and keep:
a) records of use fuel received, sold or delivered in Arizona by the vendor; and
b) invoices, bills of lading and other pertinent records and papers required by the Director of
ADOT for administrative purposes. FACT SHEET – Amended
H.B. 2573
Page 2
3. Makes technical changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Specifies that the $100 civil penalty is for failing to affix a use fuel label provided by ADOT
as prescribed, rather than violating the prescribed requirements.
2. Stipulates that ADOT must provide use fuel dispenser labels to a vendor who complies with
the prescribed record requirements.
3. Removes the requirement that ADOT provide use fuel dispenser labels in bulk.
House Action Senate Action
TI 1/24/24 DP 9-0-2-0 TTMC 3/11/24 DP 4-3-0
3
rd
Read 2/6/24 50-5-2-0-3
Prepared by Senate Research
May 9, 2024
KJA/slp