It is enacted by the General Assembly as follows:

SECTION 1. Section 31-36.1-2 of the General Laws, in Chapter 31-36.1 entitled "Fuel Use Reporting Law" is hereby amended as follows:

31-36.1-2. Definitions. -- Terms used in this chapter shall be construed to have the meanings provided for in section 31-36-1 and as follows:

(1) "Administrator" means the tax administrator.

(2) "Bond" means:

(i) A bond duly executed by a motor carrier as principal with a corporate surety qualified under the provisions of the laws of this state, which bond shall be payable to this state, conditioned upon the basic performance of all requirements of this chapter, including the payment of all taxes, penalties and other obligations of the motor carrier arising out of this tax; or

(ii) A deposit with the state treasury by the motor carrier under such terms and conditions as the administrator may prescribe, in like amount of lawful money of the United States or bonds, or other obligations of the United States, this state or any county of this state, of an actual market value not less than the amount so fixed by the administrator.

(3) "Covered motor vehicles" shall include all trucks with empty weight of seventy-five hundred pounds (7500 lbs.) or having a fuel tank exceeding thirty (30) gallons which is connected to the engine used to propel the trucks {ADD means a motor vehicle that is used, designed or maintained for transportation of persons or property and that (A) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds; or (B) has three or more axles regardless of weight; or (C) is used in combination and the combined gross vehicle weight or registered gross vehicle weight exceeds twenty-six thousand pounds (26,000 lbs.); "covered motor vehicle" does not include a recreation vehicle that is used exclusively for personal pleasure, and not used in connection with any trade or business, by an individual ADD} .

(4) "Motor carrier" means every person, association of persons, firm, or corporation, wherever resident or located, who operates or causes to be operated covered motor vehicles on the public highways of this state.

(5) "Use" means the consumption by a motor carrier of fuels in the propulsion of covered motor vehicles over the highways of this state unless the fuel so consumed is specifically excluded by law from the tax.

SECTION 2. Section 31-36.1-17 of the General Laws in Chapter 31-36.1 entitled "Fuel Use Reporting Law" is hereby amended to read as follows:

31-36.1-17. Penalties. -- (a) Any motor carrier failing to secure or display upon demand the license or identification device required in Section 31-36.1-3, {ADD or under the International Fuel Tax Agreement ADD} shall be guilty of a misdemeanor and subject to a fine not exceeding fifty dollars ($50) for the first offense or not exceeding one hundred dollars ($100) for subsequent offenses. Any motor carrier willfully violating any other provisions of this chapter shall be deemed guilty of a misdemeanor and subject to a fine not exceeding one hundred dollars ($100) for the first offense and not exceeding five hundred dollars ($500) for subsequent offenses.

(b) {ADD Filing of a false statement to obtain credit or refund. ADD} Any person who willfully and knowingly makes a false statement orally, or in writing, or in the form of a receipt for the sale of motor fuel, for the purpose of obtaining or attempting to obtain or to assist any other person, partnership, or corporation to obtain or attempt to obtain a credit or refund or reduction of liability for taxes under this chapter, shall be fined not less than five thousand dollars ($5,000) or more than ten thousand dollars ($10,000) or be imprisoned not more than one year or be both so fined and imprisoned.

(c) {ADD Failure to file report or pay tax. ADD} When any motor carrier fails to file a report within the time prescribed by this chapter for the filing thereof or fails to pay the amount of taxes due when the same are payable, a penalty of ten (10%) percent or ten dollars ($10), whichever is greater, shall be added to the amount of the tax due, and the penalty shall immediately accrue, and thereafter the tax shall bear interest at the annual rate provided by section 44-1-7, as amended, until the tax is paid. The tax administrator may waive all or part of the penalties provided herein, when it is proved to the tax administrator's satisfaction that the failure to file the report or pay the taxes on time was due to reasonable cause.

SECTION 2. This act shall take effect July 1, 1996.