Legislature(2003 - 2004)
04/24/2003 01:31 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 114-INCREASE BUSINESS LICENSE FEE CHAIR BUNDE announced SB 114 to be up for consideration and that a new committee substitute (CS) had been prepared. SENATOR SEEKINS moved to adopt the CS to SB 114, Version H, as the committee's working document. There were no objections and it was so ordered. MR. RICK URION, Director, Division of Occupational Licensing, said that people who file for a business license as a sole proprietor [would] pay a fee of $100 while everyone else pays $300. He talked with corporate leaders who said that $300 would be okay. SENATOR FRENCH asked if any court has analyzed the place of business idea, or whether there is any further definition in state law. MR. URION replied yes, businesses that sell tobacco products must have a specific endorsement for each location. However, not all businesses with multiple locations sell tobacco products. SENATOR FRENCH said he was looking at businesses that don't sell tobacco, like coffee kiosks, apartment buildings and mobile repairmen. MR. URION replied that from his perspective, if he were drafting regulations for this, he would say the rental business is passive as opposed to a grocery store or bank that has multiple branches. He expects to see some type of business activity at the locations. SENATOR SEEKINS explained that the CS basically says that the fee for a business license starting July 1, 2003 for a sole proprietorship is $100 annually. Any other type of business, like a corporation, partnership, limited liability partnership, etc., would be $300 annually. Multiple locations, including coffee kiosks, would be $300 annually for each location. He calculated a 25% dropout rate of the sole proprietorships, but he didn't think it would be that high - maybe half. He thought this CS was a reasonable approach and brings the tobacco endorsement back on an annual basis, which would bring in $125,000 more per year. CHAIR BUNDE noted that this program brings in far more than it costs to issue a business license because it's a revenue- generator and the state needs revenue. SENATOR FRENCH asked if taxicabs would need individual business licenses, since there is an exchange of money happening in each location. MR. URION replied that he didn't know how all cabs operate. He said some are individually owned and some are owned by a company. A company that owns 15 cabs would be considered as one business. SENATOR FRENCH countered, "But if you only own one cab, you pay the same as the guy with 15 cabs." CHAIR BUNDE added that someone could own one coffee kiosk or five. He wanted to make sure there was a good definition of multiple locations. SENATOR FRENCH asked how the division determined there are 265 businesses with multiple locations. MR. URION answered that those figures are from tobacco endorsements only, the only figures the division has. SENATOR FRENCH pointed out there are 1,256 tobacco endorsements. MR. URION clarified that 265 businesses have 1,256 locations. SENATOR FRENCH said if there are 1,256 locations, it should be $300 [not $100] times that figure, if he understands the intent of the bill correctly. CHAIR BUNDE asked Mr. Urion to make an appointment with him to come up with a better definition of multiple locations and bring it back before the committee. He said they would hold SB 114 for further work.
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