Section R20-2-761. Liability for Noncompliant Arizona CBG or AZRBOB

A.      Persons liable. If motor fuel designated as Arizona CBG or AZRBOB does not comply with R20-2-751, the following are liable for the violation:

1.        Each person who owns, leases, operates, controls, or supervises a facility where the noncompliant Arizona CBG or AZRBOB is found;

2.        Each registered supplier whose corporate, trade, or brand name, or whose marketing subsidiary’s corporate, trade, or brand name, appears at a facility where the noncompli- ant Arizona CBG or AZRBOB is found; and

3.        Each person who manufactured, imported, sold, offered for sale, dispensed, supplied, offered for supply, stored, transported, or caused the transportation of any gasoline

in a storage tank containing Arizona CBG or AZRBOB found to be noncompliant.

B.       Defenses.

1.        A person who is otherwise liable under subsection (A) is not liable if that person demonstrates:

a.         That the violation was not caused by the person or person’s employee or agent;

b.        That product transfer documents account for all of the noncompliant Arizona CBG or AZRBOB and indicate that the Arizona CBG or AZRBOB com- plied with this Article; and

c.         That the person had a quality assurance sampling and testing program, as described in subsection (C) in effect at the time of the violation; except that any person who transfers Arizona CBG or AZRBOB, but does not assume title, may rely on the quality assurance program carried out by another person, including the person who owns the noncompliant Arizona CBG or AZRBOB, provided the quality assurance program is properly administered.

2.        If a violation is found at a facility that operates under the corporate, trade, or brand name of a registered supplier, that registered supplier must show, in addition to the defense elements in subsection (B)(1), that the violation was caused by:

a.         A violation of law other than A.R.S. Title 41, Chap- ter 15, Article 6, this Article, or an act of sabotage or vandalism;

b.        A violation of a contract obligation imposed by the registered supplier designed to prevent noncompli- ance, despite periodic compliance sampling and test- ing by the registered supplier; or

c.         The action of any person having custody of Arizona CBG or AZRBOB not subject to a contract with the registered supplier but engaged by the registered supplier for transportation of Arizona CBG or AZR- BOB, despite specification or inspection of proce- dures and equipment by the registered supplier designed to prevent violations.

3.        To show that the violation was caused by any of the actions in subsection (B)(2), the person must demonstrate by reasonably specific showings, by direct or circumstan- tial evidence, that the violation was caused or must have been caused by another person.

C.      Quality assurance sampling and testing program. To demon- strate an acceptable quality assurance program for Arizona CBG or AZRBOB, at all points in the gasoline distribution network, other than at a service station or fleet owner facility, a person shall present evidence:

1.        Of a periodic sampling and testing program to determine compliance with the maximum or minimum standards in R20-2-751; and

2.        That each time Arizona CBG or AZRBOB is noncompli- ant with one of the requirements in R20-2-751:

a.         The person immediately ceases selling, offering for sale, dispensing, supplying, offering for supply, stor- ing, transporting, or causing the transportation of the noncompliant Arizona CBG or AZRBOB; and

b.        The person remedies the violation as soon as practi- cable.

Historical Note

Adopted effective under an exemption from the provi- sions of A.R.S. Title 41, Chapter 6, with an interim effec- tive date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to

Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secre- tary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective Septem- ber 22, 1999 (Supp. 99-3).