Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 1024
       
       
       
       
       
       
                                Barcode 557254                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  03/17/2009           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Commerce (Oelrich) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 686.701, Florida Statutes, is created to
    6  read:
    7         686.701 Reimbursement for taxes.—
    8         (1)(a) If a fuel supply contract requires one party to
    9  reimburse another party for the federal excise tax imposed by 26
   10  U.S.C. s. 4081, whether as a separate item or as part of the
   11  contract price, the reimbursing party, at its option and
   12  notwithstanding contrary terms of the contract, shall not be
   13  required to make the reimbursement more than one business day
   14  before the day on which the reimbursed party must remit the
   15  taxes to the Internal Revenue Service.
   16         (b) Exercise of the option provided by this section shall
   17  not relieve the reimbursing party of its obligation to make the
   18  reimbursement as required by the contract, but shall affect only
   19  the timing of that reimbursement.
   20         (2)(a) Written notice of the reimbursing party's intent to
   21  exercise the option provided in subsection (1) shall be given to
   22  the reimbursed party.
   23         (b) The notice shall state the effective date of the
   24  exercise of the option, which shall be no earlier than 30 days
   25  after the notice of intent is received by the reimbursed party
   26  or the beginning of the reimbursed party's next federal tax
   27  quarter, whichever is later.
   28         (3)(a) If a reimbursing party exercises the option provided
   29  in subsection (1), the reimbursed party may demand security for
   30  the payment of the taxes in proportion to the amount the taxes
   31  represent compared to the security demanded on the contract as a
   32  whole.
   33         (b) The reimbursed party may also require reimbursement to
   34  be made by electronic transfer of funds, but may not change the
   35  other payment terms of the contract without a valid business
   36  reason.
   37         (4)(a) This section applies to all wholesale transactions
   38  with terminal suppliers which are:
   39         1. Continuing contracts that have no fixed expiration date
   40  and that are in effect on July 1, 2009; or
   41         2. Contracts that are entered into or renewed after July 1,
   42  2009.
   43         (b) All contracts in effect on July 1, 2009, which contain
   44  a fixed expiration date shall be governed by the law in
   45  existence prior to July 1, 2009.
   46         Section 2. This act shall take effect July 1, 2009.
   47  
   48  ================= T I T L E  A M E N D M E N T ================
   49         And the title is amended as follows:
   50         Delete everything before the enacting clause
   51  and insert:
   52                        A bill to be entitled                      
   53         An act relating to reimbursement of federal excise
   54         taxes on motor fuel; creating s. 686.701, F.S.;
   55         providing requirements and limitations on
   56         reimbursement provisions of certain fuel supply
   57         contracts; providing notice requirements; providing
   58         for payment security requirements; providing for
   59         electronic transfer of funds; specifying application
   60         to contracts; providing an effective date.