| 1 | A bill to be entitled |
| 2 | An act relating to reimbursement of federal excise taxes |
| 3 | on motor fuel; creating s. 686.701, F.S.; providing |
| 4 | requirements and limitations on reimbursement provisions |
| 5 | of certain fuel supply contracts; providing notice |
| 6 | requirements; providing for payment security requirements; |
| 7 | providing for electronic transfer of funds; specifying |
| 8 | application to contracts; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Section 686.701, Florida Statutes, is created |
| 13 | to read: |
| 14 | 686.701 Reimbursement of federal excise taxes on motor |
| 15 | fuel.-- |
| 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, whether as a separate item or as part of the |
| 19 | 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 |
| 37 | provided in subsection (1), the reimbursed party may demand |
| 38 | security for the payment of the taxes in proportion to the |
| 39 | amount the taxes represent compared to the security demanded on |
| 40 | the contract as a 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 that are: |
| 47 | 1. Continuing contracts with no fixed expiration date and |
| 48 | are in effect on July 1, 2009; or |
| 49 | 2. Contracts entered into or renewed after July 1, 2009. |
| 50 | (b) All contracts in effect on July 1, 2009, that contain |
| 51 | a fixed expiration date shall be governed by the law in |
| 52 | existence prior to July 1, 2009. |
| 53 | Section 2. This act shall take effect July 1, 2009. |