Florida Senate - 2009                                    SB 1024
       
       
       
       By Senator Dean
       
       
       
       
       3-01192-09                                            20091024__
    1                        A bill to be entitled                      
    2         An act relating to reimbursement of federal excise
    3         taxes on motor fuel; creating s. 206.431, F.S.;
    4         providing requirements and limitations on
    5         reimbursement provisions of certain fuel supply
    6         contracts; providing notice requirements; providing
    7         for payment security requirements; providing for
    8         electronic transfer of funds; specifying application
    9         to contracts; providing an effective date.
   10         
   11  Be It Enacted by the Legislature of the State of Florida:
   12         
   13         Section 1. Section 206.431, Florida Statutes, is created to
   14  read:
   15         206.431 Reimbursement for taxes.—
   16         (1)(a) If a fuel supply contract requires one party to
   17  reimburse another party for the federal excise tax imposed by 26
   18  U.S.C. s. 4081 or s. 4091, whether as a separate item or as part
   19  of the contract price, the reimbursing party, at its option and
   20  notwithstanding contrary terms of the contract, shall not be
   21  required to make the reimbursement more than one business day
   22  before the day on which the reimbursed party must remit the
   23  taxes to the Internal Revenue Service.
   24         (b) Exercise of the option provided by this section shall
   25  not relieve the reimbursing party of its obligation to make the
   26  reimbursement as required by the contract, but shall affect only
   27  the timing of that reimbursement.
   28         (2)(a) Written notice of the reimbursing party's intent to
   29  exercise the option provided in subsection (1) shall be given to
   30  the reimbursed party.
   31         (b) The notice shall state the effective date of the
   32  exercise of the option, which shall be no earlier than 30 days
   33  after the notice of intent is received by the reimbursed party
   34  or the beginning of the reimbursed party's next federal tax
   35  quarter, whichever is later.
   36         (3)(a) If a reimbursing party exercises the option provided
   37  in subsection (1), the reimbursed party may demand security for
   38  the payment of the taxes in proportion to the amount the taxes
   39  represent compared to the security demanded on the contract as a
   40  whole.
   41         (b) The reimbursed party may also require reimbursement to
   42  be made by electronic transfer of funds, but may not change the
   43  other payment terms of the contract without a valid business
   44  reason.
   45         (4)(a) This section applies to all wholesale transactions
   46  with terminal suppliers which are:
   47         1. Continuing contracts that have no fixed expiration date
   48  and that are in effect on July 1, 2009; or
   49         2. Contracts that are entered into or renewed after July 1,
   50  2009.
   51         (b) All contracts in effect on July 1, 2009, which contain
   52  a fixed expiration date shall be governed by the law in
   53  existence prior to July 1, 2009.
   54         Section 2. This act shall take effect July 1, 2009.