Disciplinary action for fraudulent use of motor vehicle fuel or sale of unlawfully formulated motor vehicle fuel

1. The Department may take disciplinary action in accordance with subsection 2 against any person who, below the terminal rack: (a) Sells or stores for personal consumption any motor vehicle fuel for a use which the person selling or storing the fuel knows, or has reason to know, is a taxable use of the fuel and does not report and pay the applicable tax to the Department; (b) Willfully alters the volume or composition of any motor vehicle fuel which is intended for a taxable use and does not report and pay the applicable tax to the Department; or (c) Sells motor vehicle fuel which the person selling the fuel knows, or has reason to know, is formulated in a manner that violates any provision of state or federal law governing standards for the formulation of motor vehicle fuel. 2. For any violation described in subsection 1, the Department may: (a) For a first violation within 4 years, impose an administrative fine of not more than $2,500 and suspend any license issued to the person pursuant to the provisions of this chapter for not more than 30 days; (b) For a second violation within 4 years, impose an administrative fine of not more than $5,000 and suspend any license issued to the person pursuant to the provisions of this chapter for not more than 60 days; and (c) For a third or subsequent violation within 4 years, impose an administrative fine of not more than $10,000 and revoke any license issued to the person pursuant to the provisions of this chapter.