Bill Text: IL SB3369 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Motor Fuel Tax Law. Provides that the tax imposed on the privilege of operating motor vehicles that use liquefied natural gas is 21.5 cents per gallon. Provides that, in the case of liquefied natural gas, "gallon" means a diesel gallon equivalent. Contains definitions. Amends the Weights and Measures Act. Provides that liquefied natural gas used as motor fuel shall be sold in diesel gallon equivalents, and compressed natural gas shall be sold in either gasoline gallon equivalents or diesel gallon equivalents.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB3369 Detail]

Download: Illinois-2013-SB3369-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB3369 Introduced 2/14/2014, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
35 ILCS 505/1.8 from Ch. 120, par. 417.8
35 ILCS 505/1.8A new
35 ILCS 505/1.13C new
35 ILCS 505/2 from Ch. 120, par. 418
35 ILCS 505/2a from Ch. 120, par. 418a
35 ILCS 505/5 from Ch. 120, par. 421
225 ILCS 470/2 from Ch. 147, par. 102
225 ILCS 470/8 from Ch. 147, par. 108
Amends the Motor Fuel Tax Law. Provides that the tax imposed on the privilege of operating motor vehicles that use liquefied natural gas is 21.5 cents per gallon. Provides that, in the case of liquefied natural gas, "gallon" means a diesel gallon equivalent. Contains definitions. Amends the Weights and Measures Act. Provides that liquefied natural gas used as motor fuel shall be sold in diesel gallon equivalents, and compressed natural gas shall be sold in either gasoline gallon equivalents or diesel gallon equivalents.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning natural gas.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Fuel Tax Law is amended by changing
Sections 1.8, 2, 2a, and 5 and by adding Sections 1.8A and
1.13C as follows:
(35 ILCS 505/1.8) (from Ch. 120, par. 417.8)
Sec. 1.8. "Gallon" means, in addition to its ordinary
meaning, its equivalent in a capacity of measurement of
substance in a gaseous state. In the case of liquefied natural
gas used as motor fuel, "gallon" means a diesel gallon
equivalent as defined by Section 1.8A of this Act.
(Source: Laws 1961, p. 3653.)
(35 ILCS 505/1.8A new)
Sec. 1.8A. Diesel gallon equivalent. "Diesel gallon
equivalent" means an amount of liquefied natural gas that has
the equivalent energy content of a gallon of diesel fuel and
shall be defined as 6.06 pounds of liquefied natural gas.
(35 ILCS 505/1.13C new)
Sec. 1.13C. Liquefied natural gas. "Liquefied natural gas"
means methane or natural gas in the form of a cryogenic or

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refrigerated liquid for use as a motor fuel.
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990, the rate of tax imposed in this
paragraph shall be 19 cents per gallon.
(b) The tax on the privilege of operating motor vehicles
which use diesel fuel or liquefied natural gas shall be the
rate according to paragraph (a) plus an additional 2 1/2 cents
per gallon. "Diesel fuel" is defined as any product intended
for use or offered for sale as a fuel for engines in which the
fuel is injected into the combustion chamber and ignited by
pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on

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motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional
tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
(d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage tank

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that is located at a facility that has withdrawal facilities
that are readily accessible to and are capable of dispensing
1-K kerosene into the fuel supply tanks of motor vehicles. For
purposes of this subsection (e), a facility is considered to
have withdrawal facilities that are not "readily accessible to
and capable of dispensing 1-K kerosene into the fuel supply
tanks of motor vehicles" only if the 1-K kerosene is delivered
from: (i) a dispenser hose that is short enough so that it will
not reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling.
Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
(Source: P.A. 96-1384, eff. 7-29-10.)
(35 ILCS 505/2a) (from Ch. 120, par. 418a)
Sec. 2a. Except as hereinafter provided, on and after
January 1, 1990 and before January 1, 2025, a tax of
three-tenths of a cent per gallon is imposed upon the privilege
of being a receiver in this State of fuel for sale or use.
The tax shall be paid by the receiver in this State who
first sells or uses fuel. In the case of a sale, the tax shall
be stated as a separate item on the invoice.

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For the purpose of the tax imposed by this Section, being a
receiver of "motor fuel" as defined by Section 1.1 of this Act,
and aviation fuels, home heating oil and kerosene, but
excluding liquified petroleum gases, is subject to tax without
regard to whether the fuel is intended to be used for operation
of motor vehicles on the public highways and waters. However,
no such tax shall be imposed upon the importation or receipt of
aviation fuels and kerosene at airports with over 300,000
operations per year, for years prior to 1991, and over 170,000
operations per year beginning in 1991, located in a city of
more than 1,000,000 inhabitants for sale to or use by holders
of certificates of public convenience and necessity or foreign
air carrier permits, issued by the United States Department of
Transportation, and their air carrier affiliates, or upon the
importation or receipt of aviation fuels and kerosene at
facilities owned or leased by those certificate or permit
holders and used in their activities at an airport described
above. In addition, no such tax shall be imposed upon the
importation or receipt of diesel fuel or liquefied natural gas
sold to or used by a rail carrier registered pursuant to
Section 18c-7201 of the Illinois Vehicle Code or otherwise
recognized by the Illinois Commerce Commission as a rail
carrier, to the extent used directly in railroad operations. In
addition, no such tax shall be imposed when the sale is made
with delivery to a purchaser outside this State or when the
sale is made to a person holding a valid license as a receiver.

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In addition, no tax shall be imposed upon diesel fuel or
liquefied natural gas consumed or used in the operation of
ships, barges, or vessels, that are used primarily in or for
the transportation of property in interstate commerce for hire
on rivers bordering on this State, if the diesel fuel or
liquefied natural gas is delivered by a licensed receiver to
the purchaser's barge, ship, or vessel while it is afloat upon
that bordering river. A specific notation thereof shall be made
on the invoices or sales slips covering each sale.
(Source: P.A. 96-161, eff. 8-10-09.)
(35 ILCS 505/5) (from Ch. 120, par. 421)
Sec. 5. Except as hereinafter provided, a person holding a
valid unrevoked license to act as a distributor of motor fuel
shall, between the 1st and 20th days of each calendar month,
make return to the Department, showing an itemized statement of
the number of invoiced gallons of motor fuel of the types
specified in this Section which were purchased, acquired,
received, or exported during the preceding calendar month; the
amount of such motor fuel produced, refined, compounded,
manufactured, blended, sold, distributed, exported, and used
by the licensed distributor during the preceding calendar
month; the amount of such motor fuel lost or destroyed during
the preceding calendar month; the amount of such motor fuel on
hand at the close of business for such month; and such other
reasonable information as the Department may require. If a

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distributor's only activities with respect to motor fuel are
either: (1) production of alcohol in quantities of less than
10,000 proof gallons per year or (2) blending alcohol in
quantities of less than 10,000 proof gallons per year which
such distributor has produced, he shall file returns on an
annual basis with the return for a given year being due by
January 20 of the following year. Distributors whose total
production of alcohol (whether blended or not) exceeds 10,000
proof gallons per year, based on production during the
preceding (calendar) year or as reasonably projected by the
Department if one calendar year's record of production cannot
be established, shall file returns between the 1st and 20th
days of each calendar month as hereinabove provided.
The types of motor fuel referred to in the preceding
paragraph are: (A) All products commonly or commercially known
or sold as gasoline (including casing-head and absorption or
natural gasoline), gasohol, motor benzol or motor benzene
regardless of their classification or uses; and (B) all
combustible gases, not including liquefied natural gas, which
exist in a gaseous state at 60 degrees Fahrenheit and at 14.7
pounds per square inch absolute including, but not limited to,
liquefied petroleum gases used for highway purposes; and (C)
special fuel. Only those quantities of combustible gases
(example (B) above) which are used or sold by the distributor
to be used to propel motor vehicles on the public highways, or
which are delivered into a storage tank that is located at a

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facility that has withdrawal facilities which are readily
accessible to and are capable of dispensing combustible gases
into the fuel supply tanks of motor vehicles, shall be subject
to return. Distributors of liquefied natural gas are not
required to make returns under this Section with respect to
that liquefied natural gas unless the liquefied natural gas is
dispensed into the fuel supply tanks of motor vehicles. For
purposes of this Section, a facility is considered to have
withdrawal facilities that are not "readily accessible to and
capable of dispensing combustible gases into the fuel supply
tanks of motor vehicles" only if the combustible gases are
delivered from: (i) a dispenser hose that is short enough so
that it will not reach the fuel supply tank of a motor vehicle
or (ii) a dispenser that is enclosed by a fence or other
physical barrier so that a vehicle cannot pull alongside the
dispenser to permit fueling. For the purposes of this Act,
liquefied petroleum gases shall mean and include any material
having a vapor pressure not exceeding that allowed for
commercial propane composed predominantly of the following
hydrocarbons, either by themselves or as mixtures: Propane,
Propylene, Butane (normal butane or iso-butane) and Butylene
(including isomers).
In case of a sale of special fuel to someone other than a
licensed distributor, or a licensed supplier, for a use other
than in motor vehicles, the distributor shall show in his
return the amount of invoiced gallons sold and the name and

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address of the purchaser in addition to any other information
the Department may require.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
In case of a tax-free sale, as provided in Section 6, of
motor fuel which the distributor is required by this Section to
include in his return to the Department, the distributor in his
return shall show: (1) If the sale is made to another licensed
distributor the amount sold and the name, address and license
number of the purchasing distributor; (2) if the sale is made
to a person where delivery is made outside of this State the
name and address of such purchaser and the point of delivery
together with the date and amount delivered; (3) if the sale is
made to the Federal Government or its instrumentalities the
amount sold; (4) if the sale is made to a municipal corporation
owning and operating a local transportation system for public
service in this State the name and address of such purchaser,
and the amount sold, as evidenced by official forms of
exemption certificates properly executed and furnished by such
purchaser; (5) if the sale is made to a privately owned public
utility owning and operating 2-axle vehicles designed and used
for transporting more than 7 passengers, which vehicles are
used as common carriers in general transportation of
passengers, are not devoted to any specialized purpose and are
operated entirely within the territorial limits of a single
municipality or of any group of contiguous municipalities or in

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a close radius thereof, and the operations of which are subject
to the regulations of the Illinois Commerce Commission, then
the name and address of such purchaser and the amount sold as
evidenced by official forms of exemption certificates properly
executed and furnished by the purchaser; (6) if the product
sold is special fuel and if the sale is made to a licensed
supplier under conditions which qualify the sale for tax
exemption under Section 6 of this Act, the amount sold and the
name, address and license number of the purchaser; and (7) if a
sale of special fuel is made to someone other than a licensed
distributor, or a licensed supplier, for a use other than in
motor vehicles, by making a specific notation thereof on the
invoice or sales slip covering such sales and obtaining such
supporting documentation as may be required by the Department.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
A person whose license to act as a distributor of motor
fuel has been revoked shall make a return to the Department
covering the period from the date of the last return to the
date of the revocation of the license, which return shall be
delivered to the Department not later than 10 days from the
date of the revocation or termination of the license of such
distributor; the return shall in all other respects be subject
to the same provisions and conditions as returns by
distributors licensed under the provisions of this Act.
The records, waybills and supporting documents kept by

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railroads and other common carriers in the regular course of
business shall be prima facie evidence of the contents and
receipt of cars or tanks covered by those records, waybills or
supporting documents.
If the Department has reason to believe and does believe
that the amount shown on the return as purchased, acquired,
received, exported, sold, used, lost or destroyed is incorrect,
or that an amount of motor fuel of the types required by the
second paragraph of this Section to be reported to the
Department has not been correctly reported the Department shall
fix an amount for such receipt, sales, export, use, loss or
destruction according to its best judgment and information,
which amount so fixed by the Department shall be prima facie
correct. All returns shall be made on forms prepared and
furnished by the Department, and shall contain such other
information as the Department may reasonably require. The
return must be accompanied by appropriate computer-generated
magnetic media supporting schedule data in the format required
by the Department, unless, as provided by rule, the Department
grants an exception upon petition of a taxpayer. All licensed
distributors shall report all losses of motor fuel sustained on
account of fire, theft, spillage, spoilage, leakage, or any
other provable cause when filing the return for the period
during which the loss occurred. If the distributor reports
losses due to fire or theft, then the distributor must include
fire department or police department reports and any other

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documentation that the Department may require. The mere making
of the report does not assure the allowance of the loss as a
reduction in tax liability. Losses of motor fuel as the result
of evaporation or shrinkage due to temperature variations may
not exceed 1% of the total gallons in storage at the beginning
of the month, plus the receipts of gallonage during the month,
minus the gallonage remaining in storage at the end of the
month. Any loss reported that is in excess of 1% shall be
subject to the tax imposed by Section 2 of this Law. On and
after July 1, 2001, for each 6-month period January through
June, net losses of motor fuel (for each category of motor fuel
that is required to be reported on a return) as the result of
evaporation or shrinkage due to temperature variations may not
exceed 1% of the total gallons in storage at the beginning of
each January, plus the receipts of gallonage each January
through June, minus the gallonage remaining in storage at the
end of each June. On and after July 1, 2001, for each 6-month
period July through December, net losses of motor fuel (for
each category of motor fuel that is required to be reported on
a return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each July, plus the receipts of
gallonage each July through December, minus the gallonage
remaining in storage at the end of each December. Any net loss
reported that is in excess of this amount shall be subject to
the tax imposed by Section 2 of this Law. For purposes of this

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Section, "net loss" means the number of gallons gained through
temperature variations minus the number of gallons lost through
temperature variations or evaporation for each of the
respective 6-month periods.
(Source: P.A. 96-1384, eff. 7-29-10.)
Section 10. The Weights and Measures Act is amended by
changing Sections 2 and 8 as follows:
(225 ILCS 470/2) (from Ch. 147, par. 102)
Sec. 2. Definitions. As used in this Act:
"Person" means both singular and plural as the case
demands, and includes individuals, partnerships, corporations,
companies, societies and associations.
"Weights and measures" means all weights and measures of
every kind, instruments and devices for weighing and measuring,
and any appliances and accessories associated with any or all
such instruments and devices, including all grain moisture
measuring devices, but does not include meters for the
measurement of electricity, gas (natural or manufactured) or
water operated in a public utility system. These electricity
meters, gas meters, and water meters, and their appliances or
accessories, and slo flo meters, are specifically excluded from
the scope and applicability of this Act.
"Sell" and "sale" includes barter and exchange.
"Director" means the Director of Agriculture.

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"Department" means the Department of Agriculture.
"Inspector" means an inspector of weights and measures of
this State.
"Sealer" and "deputy sealer" mean, respectively, a sealer
of weights and measures and a deputy sealer of weights and
measures of a city.
"Intrastate commerce" means any and all commerce or trade
that is commenced, conducted and completed wholly within the
limits of this State, and the phrase "introduced into
intrastate commerce" means the time and place at which the
first sale and delivery being made either directly to the
purchaser or to a carrier for shipment to the purchaser.
"Commodity in package form" means a commodity put up or
packaged in any manner in advance of sale in units suitable for
either wholesale or retail sale, excluding any auxiliary
shipping container enclosing packages which individually
conform to the requirements of this Act. An individual item or
lot of any commodity not in package form as defined in this
Section but on which there is marked a selling price based on
an established price per unit of weight or of measure shall be
deemed a commodity in package form.
"Consumer package" and "package of consumer commodity"
mean any commodity in package form that is customarily produced
or distributed for sale through retail sales agencies or
instrumentalities for consumption by individuals or use by
individuals for the purposes of personal care or in the

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performance of services ordinarily rendered in or about the
household or in connection with personal possessions, and which
usually is consumed or expended in the course of such
consumption or use.
"Nonconsumer package" and "package of nonconsumer
commodity" mean any commodity in package form other than a
consumer package, and particularly a package designed solely
for industrial or institutional use or for wholesale
distribution only.
"Certificate of Conformance" means a document issued by the
National Conference on Weights and Measures based on testing in
participating laboratories that indicates that the weights and
measures or weighing and measuring device conform with the
requirements of National Institute of Standards and
Technology's Handbooks 44, 105-1, 105-2, 105-3, 105-4, or 105-8
and any subsequent revisions or supplements thereto.
"Prepackage inspection violation" means that the majority
of the lots of prepackaged commodities inspected at a single
location are found to have one or more packages below the
maximum allowable variation as published in the National
Institute of Standards and Technology Handbook 133 or the
majority of the lots inspected at a single location are found
to be below the stated net weight declaration on an average.
"Diesel gallon equivalent" means 6.06 pounds of liquefied
natural gas or 6.38 pounds of compressed natural gas.
"Gasoline gallon equivalent" means 5.660 pounds of

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compressed natural gas.
(Source: P.A. 96-1333, eff. 7-27-10.)
(225 ILCS 470/8) (from Ch. 147, par. 108)
Sec. 8. Regulations; issuance; contents. The Director
shall from time to time issue reasonable regulations for
enforcement of this Act that shall have the force and effect of
law. In determining these regulations, he shall appoint,
consult with, and be advised by committees representative of
industries to be affected by the regulations. These regulations
may include (1) standards of net weight, measure or count, and
reasonable standards of fill, for any commodity in package
form, (2) rules governing the technical and reporting
procedures to be followed and the report and record forms and
marks of approval and rejection to be used by inspectors of
weights and measures in the discharge of their official duties,
and (3) exemptions from the sealing or marking requirements of
Section 14 of this Act with respect to weights and measures of
such character or size that such sealing or marking would be
inappropriate, impracticable, or damaging to the apparatus in
question. These regulations shall include specifications,
tolerances, and regulations for weights and measures, of the
character of those specified in Section 10 of this Act,
designed to eliminate from use (without prejudice to apparatus
that conforms as closely as practicable to the official
standards) such weights and measures as are (1) inaccurate, (2)

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of faulty construction (that is, not reasonably permanent in
their adjustment or not capable of correct repetition of their
indications), or (3) conducive to the perpetration of fraud.
Specifications, tolerances, and regulations for commercial
weighing and measuring devices recommended by the National
Institute of Standards and Technology and published in National
Institute of Standards and Technology Handbook 44 and
supplements thereto or in any publication revising or
superseding Handbook 44, shall be the specifications,
tolerances, and regulations for commercial weighing and
measuring devices of this State, except insofar as specifically
modified, amended, or rejected by a regulation issued by the
Director. Notwithstanding the provisions of this paragraph,
liquefied natural gas used as motor fuel shall be sold in
diesel gallon equivalents, and compressed natural gas shall be
sold in either gasoline gallon equivalents or diesel gallon
equivalents.
The National Institute of Standards and Technology
Handbook 133 and its supplements, or any publication revising
or superseding Handbook 133, shall be the method for checking
the net contents of commodities in package form. The National
Institute of Standards and Technology Handbooks 105-1, 105-2,
105-3, 105-4, 105-8, and their supplements, or any publication
revising or superseding Handbooks 105-1, 105-2, 105-3, 105-4,
and 105-8 shall be specifications and tolerances for reference
standards and field standards weights and measures.

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For purposes of this Act, apparatus shall be deemed
"correct" when it conforms to all applicable requirements
promulgated as specified in this Section. Apparatus that does
not conform to all applicable requirements shall be deemed
"incorrect".
The Director is authorized to prescribe by regulation,
after public hearings, container sizes for fluid dairy products
and container sizes for ice cream, frozen desserts, and similar
items.
For the purposes of this Act, any apparatus certified by
the Department or city sealer as of July 1, 2012 satisfies
construction and installation requirements.
The Uniform Packaging and Labeling Regulation and the
Uniform Regulation for the Method of Sale of Commodities in the
National Institute of Standards and Technology Handbook 130,
and any of its subsequent supplements or revisions, shall be
the requirements and standards governing the packaging,
labeling, and method of sale of commodities for this State,
except insofar as specifically modified, amended, or rejected
by regulation issued by the Director, and except that liquefied
natural gas used as motor fuel shall be sold in diesel gallon
equivalents, and compressed natural gas shall be sold in either
gasoline gallon equivalents or diesel gallon equivalents.
(Source: P.A. 98-342, eff. 8-13-13.)