04/24/2003 01:31 PM Senate L&C

              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.