Legislature(1997 - 1998)
03/06/1998 01:50 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 239 "An Act relating to the liability of motor fuel dealers for payment of tax imposed on certain credit transactions involving motor fuel sales or transfers that become worthless debts or on sales or transfers to persons who declare bankruptcy; and providing for an effective date." Co-Chair Therriault MOVED that 0-LS0768\H, Glover, 3/6/98, be the version before the Committee. There being NO OBJECTION, it was adopted. MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, highlighted the changes between the current working draft and the original version of the bill. He noted that in the committee substitute the "findings" section had been eliminated. The second change, eliminated the three-year credit limit and replaced it with five year per individual distributor. The final change removed Section F(2), leaving only Subsection F. He continued, as determined by Legal Services, both Sections E and F were understood to be mutually exclusive, however, Section E suggested a finite time period, whereas, Section F suggested an infinite period. By addressing this section, a potential conflict was eliminated. Mr. Tibbles spoke to the proposed Amendment #2. [Copy on file]. He noted that the amendment would change "sale and transfer" to "sales and transfers". When billing, there could be more than one particular sale. Co-Chair Therriault added that the action would make it an aggregate, not a credit on a single transaction. BOB BARTHOLOMEW, DEPUTY DIRECTOR, INCOME AND EXCISE TAX DIVISION, DEPARTMENT OF REVENUE, spoke to the deletion of Section F(2). That section would limit any transaction, which occurred right after bankruptcy. The language was confusing as to when the clock began. The deletion made the application simpler, clarifying the bill's credit while not removing the State's protection. Mr. Bartholomew added, by removal of that language, the State's protection would not be removed when reaching a bankruptcy level or an IRS write off to be eligible. The credit continues to work and yet does have safety valves. Co-Chair Therriault MOVED to adopt Amendment #2. There being NO OBJECTION, it was adopted. Representative Grussendorf proposed and MOVED that a conceptual amendment be added stipulating that the bill have a five-year sunset clause. There being NO OBJECTION, the amendment was adopted. For the record, Representative Kohring voiced his opposition to the addition of the sunset clause. Representative Foster MOVED to report CS HB 239 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 239 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Department of Revenue.
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