No. 27544 (Amendment): R27-6. Fuel Dispensing Program

DAR File No.: 27544
Filed: 11/15/2004, 07:32
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment establishes procedures for issuing a fuel card, conditions of use, and oversight responsibilities for fuel card use; and conditions for a supervisor fuel card to be issued and to establish drivers' responsibilities regarding the entry of correct odometer readings, and the time period in which agencies have to cure errors and penalties imposed for failure to cure the error.

 

Summary of the rule or change:

Section R27-6-5 amendments establish procedures for issuing a fuel card, the relationship between the vehicle and the fuel card assigned to it, the conditions of use that apply to a fuel card, agency oversight responsibilities for fuel card use, and makes clear that the authority to make changes to fuel card information or to delete fuel cards resides solely with state fuel technicians. Changes to Section R27-6-7 establish the requirements that must be met by agencies in order for a supervisor fuel card to be issued. Changes to Section R27-6-9 establish drivers' responsibilities regarding the entry of correct odometer readings, the time period in which agencies have to cure errors and the consequences associated with a failure to cure an odometer error within the specified period of time.

 

State statutory or constitutional authorization for this rule:

Section 63A-9-401

 

Anticipated cost or savings to:

the state budget:

There is no aggregate anticipated cost or savings to the budget. The Division of Fleet Operations (DFO) policies that have governed the use and issuance of fuel cards, oversight and responsibilities, as well as penalties for the failure to cure errors have been in place for some time. A statutory redefinition of what constitutes a "rule" has necessitated the transfer of DFO's policies into rule. Consequently, no cost or savings is anticipated as a result of the rule changes.

 

local governments:

There is no aggregate anticipated cost or savings to local governments. DFO policies that have governed the use and issuance of fuel cards, oversight and responsibilities, as well as penalties for the failure to cure errors have been in place for some time. A statutory redefinition of what constitutes a "rule" has necessitated the transfer of DFO's policies into rule. Consequently, no cost or savings is anticipated as a result of the rule changes.

 

other persons:

There is no aggregate anticipated cost or savings to other persons. DFO policies that have governed the use and issuance of fuel cards, oversight and responsibilities, as well as penalties for the failure to cure errors have been in place for some time. A statutory redefinition of what constitutes a "rule" has necessitated the transfer of DFO's policies into rule. Consequently, no cost or savings is anticipated as a result of the rule changes.

 

Compliance costs for affected persons:

No compliance costs for affected persons is anticipated. DFO policies that have governed the use and issuance of fuel cards, oversight and responsibilities, as well as penalties for the failure to cure errors have been in place for some time. A statutory redefinition of what constitutes a "rule" has necessitated the transfer of DFO's policies into rule.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

The rule changes are not anticipated to have a fiscal impact on businesses. The changes simply impact entities leasing vehicles from DFO and their respective drivers. The rules should not have an impact on actual fuel purchases.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Fleet Operations
Room 4120 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

 

Direct questions regarding this rule to:

Sal Petilos at the above address, by phone at 801-538-3091, by FAX at 801-538-3844, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/03/2005

 

This rule may become effective on:

01/04/2005

 

Authorized by:

Steve Saltzgiver, Director

 

 

RULE TEXT

R27. Administrative Services, Fleet Operations.

R27-6. Fuel Dispensing Program.

R27-6-3. State Fuel Network.

(1) The state fuel network consists of all fuel sites owned, leased or under the control of the DFO; all state agencies including[except] institutions of higher education; all counties, municipalities, school districts, and special districts that subscribe to the services provided by DFO; and all privately owned fuel sites that participate in the Utah Fuel Card program.

 

R27-6-5. Authority to Issue a State of Utah Fuel Card.

(1) Except when delegated pursuant to the provisions of R27-6-6, the authority to issue State of Utah Fuel Cards (fuel card) and assign Personal Identification Numbers (PIN) resides exclusively with DFO.

(2) All fueling cards associated with state vehicles shall be documented in the fleet information system. Only one fuel card shall be issued to each vehicle. The PIN issued by the fuel card system to individual employees for their exclusive use is an electronic "signature" of the person to whom it is issued. Use of the fuel card and PIN are restricted to fueling the vehicles to which the fuel card was issued.

(3) Requests for fuel cards and/or PINs shall be documented in the Information Technology Services (ITS) Helpdesk software.

(4) Standard Fuel Network Vehicle and Employee PIN worksheets shall be used when requesting fuel cards and PINs.

(5) DFO shall distribute to each agency a monthly report showing all active fuel cards issued to the respective agencies.

(a) Agencies shall review the monthly reports and notify the State Fuel Technicians in charge of fuel cards of any discrepancies discovered.

(b) State Fuel Technicians shall investigate the discrepancy and make the necessary changes to the fuel card program and the fleet information system.

(6) Agencies may request that a fuel card history report accompany the monthly active fuel card report.

(7) In the event that a fuel card is no longer required due to card expiration, malfunction, loss, misuse, or the vehicle's disposal, the card shall be deleted from the fleet fuel card system and identified as "expired" in the fleet information system. No modifications to the fuel card shall be allowed.

(8) Only State Fuel Technicians have the authority to make changes to fuel card information and to delete fuel cards from the system.

[(2)](9) In the event that a fuel card is either lost or stolen, the operator shall[,] immediately report the loss or theft of the fuel card to DFO.

 

R27-6-7. Authorized Use of a State of Utah Fuel Card.

(1) The following procedures shall be followed when purchasing fuel from either a state run or a participating commercial public fueling site:

(a) Verify that the vendor is a participant in the State Fuel Network Program; and

(b) Follow the procedures that apply to the particular site and enter the correct information when prompted in order to purchase fuel.

(2) Except as provided in paragraph 3 of this section, the fuel card shall only be used to purchase:

(a) Fuel; and

(b) Fluids, car washes and minor miscellaneous items for state vehicles whose value, taken together, shall not exceed the monthly monetary limits determined by DFO.

(3) Agency requests for a fuel card for use by a supervisor for emergency purposes, or for use with small miscellaneous equipment shall be approved provided the agency:

(a) Represents that they have a reconciliation or fuel transaction auditing process in place for the review of miscellaneous transactions in order to prevent theft, abuse and fraud relating to the use of the card; and

(b) Cooperates with DFO to insure all fuel dispensed using fuel cards not assigned to specific vehicles is properly documented in the fleet information system through the use of a manual fuel ticket.

 

R27-6-9. Meter Rejects.

(1) Drivers of state vehicles are required to enter the correct mileage, excluding tenths of miles, when using the fuel card assigned to the vehicle.

(2) In the event that the driver makes an error in the mileage update, the driver or the agency's contact shall provide designated DFO personnel with a correct mileage update.

(3) In the event that an individual operating a state vehicle inputs a blatant error meter reject, DFO will impose on the agency, an one time charge (OTC) in accordance with applicable rate schedule. A blatant error meter reject occurs when the operator enters the same number as the mileage (e.g., 000000)or enters a fictitious number that is not close to the current odometer reading (e.g., 123456). DFO may, upon request by the agency, allow five business days during which to investigate a blatant error. If the blatant error is deemed to have been the result of equipment failure, DFO will not impose the OTC.

(4) Agency contacts shall, within five business days of the request, respond to a DFO request to investigate a meter reject. In the event that the agency fails to respond or make arrangements for an extension of the time period in which to investigate the meter reject, DFO will impose an OTC in accordance with the applicable rate schedule, upon the agency.

 

R27-6-[9]10. Bulk Fuel Purchases.

(1) For all fuel sites for which DFO purchases fuel:

(a) The authority to purchase bulk fuel resides exclusively with DFO.

(b) All fuel stored at, or contained in, fuel sites for which DFO purchases fuel shall be the property of the State of Utah, DFO.

 

R27-6-[10]11. Fuel Site Maintenance.

(1) All fuel sites in the state fuel network for which DFO purchases fuel shall be managed by the DFO. All fuel sites for which DFO does not purchase fuel shall be managed by the agency, subscribing county, municipality, school district, or special district that has ownership, possession, or control of the site.

(2) Except for privately owned, leased or controlled fuel sites, maintenance at all other fuel sites in the State Fuel Network, shall be performed only by personnel of the DFO and/or their authorized agents.

(3) Only DFO personnel and/or authorized agents shall be authorized to disconnect power or communication from any fueling equipment, including, but not limited to, tanks and monitoring equipment.

(4) Personnel of agencies, subscribing counties, municipalities, school districts and special districts at fuel sites shall not perform, or give authorization to perform, any site maintenance.

(c) Personnel of agencies, subscribing counties, municipalities, school districts and special districts at fuel sites shall report any maintenance concerns to the DFO.

(d) Personnel of agencies, subscribing counties, municipalities, school districts and special districts at fuel sites shall provide DFO, its employees and/or authorized agents, 24-hour access to fuel sites for any maintenance or service needs.

(4) In the event that a fuel site operated by an agency, subscribing county, municipality, school district or special district is not part of the Utah Fuel card system, it shall be the responsibility of the fuel site personnel to keep records of all following information for entry into the fleet information system:

(a) Correct odometer reading;

(b) Operators' PIN;

(c) Vehicle number or license plate number;

(d) Other information as required by DFO.

 

R27-6-[11]12. Underground Fuel Storage Tanks.

(1) DFO shall be responsible for coordinating the installation of state owned underground storage tanks and the upgrading, retrofitting, repair or removal of existing underground storage tanks located on or about property, easements or rights of way owned, leased or otherwise controlled by agencies.

(2) DFO shall be responsible for paying for all operations related to the installation, upgrading, retrofitting, repair or removal of underground fuel storage tanks listed in its Underground Storage Tank Inventory.

(3) The costs associated with all operations related to the installation, repair or removal of Underground Fuel Storage Tanks that are not contained in DFO Underground Storage Tank Inventory shall be the responsibility of the agency having ownership, possession or control of the site in which the storage tank is found.

(4) All agency fuel site personnel shall provide DFO, its employees and/or authorized agents, 24-hour access to fuel sites for any storage tank maintenance or service needs.

 

R27-6-[12]13. Abuse and Neglect of Fueling Equipment.

Damage to fuel equipment that results from the abuse or neglect of an operator shall be the responsibility of the agency employing the operator at the time of the incident.

 

R27-6-[13]14. Delegation of Authority to Manage and Maintain Fuel Storage Tanks.

(1) The director of the Division of Fleet Operations, with the approval of the Executive Director of the Department of Administrative Services, may delegate the authority to manage and maintain fuel storage tanks holding fuel that is not for use in motor vehicles, to other agencies or institution, by contract or other means authorized by law, if:

(a) the state agency or institution has requested the authority; and

(b) in the judgment of the director, the state agency or institution has the necessary resources and skills to perform the delegated responsibilities.

(2) The delegation shall contain the following:

(a) a precise definition of each function to be delegated;

(b) a clear description of the standards to be met in performing each function delegated; and

(c) a provision for periodic administrative audits by either DFO or the Department of Administrative Services; and

(d) a date on which the agreement shall terminate if the agreement has not been previously terminated or renewed.

(3) An agreement to delegate functions to a state agency or institution may be terminated by DFO if the results of administrative audits conducted by either DFO or the Department of Administrative Services reveal a lack of compliance with the terms of the agreement by the state agency or institution.

 

KEY: fuel dispensing

[April 8, 2002]2005

63A-9-401(1)(c)(vi)

63A-9-401(1)(e)

63A-2-201.1(a)