03/06/1998 01:50 PM House FIN

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.