Fuels

Granholm Signs Law Targeting Pump Cheating

Also supports bill to give her authority to lift gas tax

LANSING, Mich. -- Michigan Governor Jennifer Granholm (D) on Tuesday signed into law stiffer fines for gas station owners who intentionally cheat the public with inaccurate pumps, said the Associated Press.

Owners who purposely deliver less fuel to customers than indicated on pump meters will face a civil fine of $5,000 for a first offense. A second offense will cost $10,000, and a third offense will cost $25,000.

The law, sponsored by State Representative Fran Amos (R), also gives the Michigan Department of Agriculture the authority [image-nocss] to shut down violating stations until problems are corrected. The department is required to annually inspect any station with three or more intentional violations.

The agriculture department received about 1,000 formal complaints about the accuracy of fuel pumps in 2004.

Granholm also told reporters at the signing ceremony for House Bill 4502 that she supports another billwhich has passed the House and is in the Senatethat would give her the authority to lift the 6% state sales tax on gasoline and diesel fuel during an emergency. But she said she would not suspend the tax at this time because the state is not reaping a windfall in taxes, and noted that overall sales tax revenue is down. The governor is worried about the effect any lost tax revenue would have on funding for K-12 public schools.

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