HB 1214-1_ Filed 03/14/2006, 12:13
CONFERENCE COMMITTEE REPORT
DIGEST FOR EHB 1214
Citations Affected: IC 6-2.5-7; IC 6-6; IC 6-8.1; IC 8-2.1; IC 9-20-18-14.5.
Synopsis: Motor carrier enforcement. Conference committee report for EHB 1214. Provides that
the prepayment rate used in determining prepayment amounts of sales tax on certain wholesale
sales of gasoline may not exceed 125% of the prepayment rate in effect on the day before the
prepayment rate is redetermined by the department of state revenue. Requires certain reports and
returns filed with the department of state revenue (department) concerning gasoline tax and
special fuel tax to be filed in an electronic format. Requires a motor carrier to file a claim for a
proportional use credit for a calendar quarter on or before the due date of the motor carrier's
quarterly motor fuel tax return. Allows the department to deny the issuance of or to suspend or
revoke certain registrations, permits, or certificates of authority if the owner or operator of a
commercial motor vehicle does not file all tax returns or reports or pay all taxes, penalties, and
interest for a listed tax. Provides civil penalties for a motor carrier operating without required
credentials or operating with altered credentials. Specifies conditions under which the department
or the state police department may impound a motor vehicle of a motor carrier that is not
authorized to transport passengers for hire. Increases the application fees paid to the department's
motor carrier services division. Specifies that certain registration requirements do not apply to a
person exclusively engaged in the private transportation of nonhazardous property. Provides that
the department may not register or title a motor carrier if the motor carrier fails to comply with
certain federal regulations or the motor carrier's authority to operate has been terminated or denied
by a federal agency. Specifies certain penalties for motor carriers that violate the permitting
provisions for oversize and overweight vehicles. (This conference committee report: (1) deletes
language providing that certain indemnity provisions contained in, collateral to, or
affecting a motor carrier transportation contract are against public policy and are void
and unenforceable; and (2) adds language: providing that the prepayment rate used in
determining prepayment amounts of sales tax on certain wholesale sales of gasoline may
not exceed 125% of the prepayment rate in effect on the day before the prepayment rate
is redetermined by the department of state revenue; requiring certain reports and returns
filed with the department of state revenue (department) concerning gasoline tax and special
fuel tax to be filed in an electronic format; requiring a motor carrier to file a claim for a
proportional use credit for a calendar quarter on or before the due date of the motor
carrier's quarterly motor fuel tax return; allowing the department to deny the issuance of
or to suspend or revoke certain registrations, permits, or certificates of authority if the
owner or operator of a commercial motor vehicle does not file all tax returns or reports or
pay all taxes, penalties, and interest for a listed tax; providing civil penalties for a motor
carrier operating without required credentials or operating with altered credentials;
specifying conditions under which the department or the state police department may
impound a motor vehicle of a motor carrier that is not authorized to transport passengers
for hire; increasing the application fees paid to the department's motor carrier services
division; specifying that certain registration requirements do not apply to a person
exclusively engaged in the private transportation of nonhazardous property; providing that
the department may not register or title a motor carrier if the motor carrier fails to comply
with certain federal regulations or the motor carrier's authority to operate has been
terminated or denied by a federal agency; and specifying certain penalties for motor
carriers that violate the permitting provisions for oversize and overweight vehicles.)
Effective: July 1, 2006.
CONFERENCE COMMITTEE REPORT
MADAM PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed Senate Amendments to Engrossed House Bill No. 1214 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
SOURCE: IC 6-2.5-7-1; (06)CC121401.1.1. -->
SECTION 1. IC 6-2.5-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. For purposes of (a)
The definitions in this section apply throughout this chapter.
(b) "Kerosene" has the same meaning as the definition contained in
IC 16-44-2-2.
(c) "Gasoline" has the same meaning as the definition contained in
IC 6-6-1.1-103.
(d) "Special fuel" has the same meaning as the definition contained
in IC 6-6-2.5-22.
(e) "Unit" means the unit of measure, such as a gallon or a liter, by
which gasoline or special fuel is sold.
(f) "Metered pump" means a stationary pump which is capable of
metering the amount of gasoline or special fuel dispensed from it and
which is capable of simultaneously calculating and displaying the price
of the gasoline or special fuel dispensed.
(g) "Indiana gasoline tax" means the tax imposed under IC 6-6-1.1.
(h) "Indiana special fuel tax" means the tax imposed under
IC 6-6-2.5.
(i) "Federal gasoline tax" means the excise tax imposed under Section
4081 of the Internal Revenue Code.
(j) "Federal special fuel tax" means the excise tax imposed under
Section 4041 of the Internal Revenue Code.
(k) "Price per unit before the addition of state and federal taxes"
means an amount which equals the remainder of:
(i) (1) the total price per unit; minus
(ii) (2) the state gross retail, Indiana gasoline or special fuel, and
federal gasoline or special fuel taxes which are part of the total
price per unit.
(l) "Total price per unit" means the price per unit at which gasoline or
special fuel is actually sold, including the state gross retail, Indiana
gasoline or special fuel, and federal gasoline or special fuel taxes which
are part of the sales price.
(m) "Distributor" means a person who is the first purchaser of
gasoline from a refiner, a terminal operator, or supplier, regardless of
the location of the purchase.
(n) "Prepayment rate" means a rate per gallon of gasoline rounded to
the nearest one-tenth of one cent ($0.001), determined by the
department by determining the product of:
(1) the statewide average retail price per gallon of gasoline
excluding the Indiana and federal gasoline taxes and the Indiana
gross retail tax; multiplied by
(2) the state gross retail tax rate; multiplied by
(3) ninety percent (90%).
under section 14 of this chapter for use in calculating prepayment
amounts of gross retail tax under section 9 of this chapter.
(o) "Purchase or shipment" means a sale or delivery of gasoline, but
does not include:
(1) an exchange transaction between refiners, terminal operators,
or a refiner and terminal operator; or
(2) a delivery by pipeline, ship, or barge to a refiner or terminal
operator.
(p) "Qualified distributor" means a distributor who:
(1) is a licensed distributor under IC 6-6-1.1; and
(2) holds an unrevoked permit issued under section 7 of this
chapter.
(q) "Refiner" means a person who manufactures or produces gasoline
by any process involving substantially more than the blending of
gasoline.
(r) "Terminal operator" means a person that:
(1) stores gasoline in tanks and equipment used in receiving and
storing gasoline from interstate or intrastate pipelines pending
wholesale bulk reshipment; or
(2) stores gasoline at a boat terminal transfer that is a dock or tank,
or equipment contiguous to a dock or tank, including equipment
used in the unloading of gasoline from a ship or barge and used in
transferring the gasoline to a tank pending wholesale bulk
reshipment.
SOURCE: IC 6-2.5-7-14; (06)CC121401.1.2. -->
SECTION 2. IC 6-2.5-7-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 14. (a) Before June 10
and December 10 of each year, the department shall determine and
provide to:
(1) each refiner and terminal operator and each qualified distributor
known to the department to be required to collect prepayments of
the state gross retail tax under this chapter; and
(2) any other person that makes a request;
a notice of the prepayment rate to be used during the following six (6)
month period. The department shall also have the prepayment rate
published in the June and December issues of the Indiana Register.
(b) In determining the prepayment rate under this section, the
department shall use the most recent retail price of gasoline available to
the department.
(c) The prepayment rate per gallon of gasoline determined by the
department under this section is the amount per gallon of gasoline
determined under STEP FOUR of the following formula:
STEP ONE: Determine the statewide average retail price per
gallon of gasoline, excluding the Indiana and federal gasoline
taxes and the Indiana gross retail tax.
STEP TWO: Determine the product of the following:
(A) The STEP ONE amount.
(B) The Indiana gross retail tax rate.
(C) Ninety percent (90%).
STEP THREE: Determine the lesser of:
(A) the STEP TWO result; or
(B) the product of:
(i) the prepayment rate in effect on the day immediately
preceding the day on which the prepayment rate is
redetermined under this section; multiplied by
(ii) one hundred twenty-five percent (125%).
STEP FOUR: Round the STEP THREE result to the nearest
one-tenth of one cent ($0.001).
SOURCE: IC 6-6-1.1-515; (06)CC121401.1.3. -->
SECTION 3. IC 6-6-1.1-515 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 515. The administrator may require that all
reports required to be filed under section 209, 501, 502, 504, or 606
of this chapter must be filed in an electronic format prescribed by
the administrator.
SOURCE: IC 6-6-2.5-72; (06)CC121401.1.4. -->
SECTION 4. IC 6-6-2.5-72 IS ADDED TO THE CODE AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]:
Sec. 72. The administrator may require that all reports required
to be filed under section 56.5, 57, or 60 of this chapter must be filed
in an electronic format prescribed by the administrator.
SOURCE: IC 6-6-4.1-4.8; (06)CC121401.1.5. -->
SECTION 5. IC 6-6-4.1-4.8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4.8. (a) This section
applies only to a claim for a proportional use credit under section 4(d)
or 4.5(d) of this chapter for taxes first due and payable after July 31,
1999.
(b) In order to obtain a proportional use credit against taxes imposed
under section 4 or 4.5 of this chapter, a carrier must file a claim with the
department. The claim must be submitted on a form prescribed by the
department and must be filed with the quarterly return for the taxable
period for which the proportional use credit is claimed. A carrier is not
entitled to a proportional use credit under section 4(d) or 4.5(d) of this
chapter unless the carrier:
(1) has paid in full the taxes to which the credit applies; and
(2) has filed a claim for the credit on or before the due date of
the corresponding quarterly return for the taxable period for
which the proportional use credit is claimed.
A credit approved under this section shall, subject to this section, be
refunded to the carrier without interest.
(c) The department shall determine the aggregate amount of
proportional use credits claimed under section 4(d) or 4.5(d) of this
chapter for each quarter. The department may approve the full amount
of a proportional use credit claimed by a carrier if the aggregate amount
of proportional use credits claimed for the quarter and for the fiscal year
do not exceed the limits set forth in subsection (d). If the aggregate
amount of proportional use credits claimed in a quarter exceeds the
limits set forth in subsection (d), the department shall pay the claims for
that quarter on a pro rata basis.
(d) The department may not approve more than three million five
hundred thousand dollars ($3,500,000) of proportional use credits
under this section in a state fiscal year. In addition, the amount of
proportional use credits the department may approve under this section
for a quarter may not exceed the following:
(1) For the quarter ending September 30 of a year, an amount equal
to one million three hundred seventy-five thousand dollars
($1,375,000).
(2) For the quarter ending December 31 of a year, an amount equal
to:
(A) six hundred twenty-five thousand dollars ($625,000); plus
(B) the greater of zero (0) or the result of:
(i) the limit determined for the previous quarter under this
subsection; minus
(ii) the aggregate amount of claims approved for the previous
quarter.
(3) For the quarter ending March 31 of a year, an amount equal to:
(A) six hundred twenty-five thousand dollars ($625,000); plus
(B) the greater of zero (0) or the result of:
(i) the limit determined for the previous quarter under this
subsection; minus
(ii) the aggregate amount of claims approved for the previous
quarter.
(4) For the quarter ending June 30 of a year, an amount equal to:
(A) eight hundred seventy-five thousand dollars ($875,000); plus
(B) the greater of zero (0) or the result of:
(i) the limit determined for the previous quarter under this
subsection; minus
(ii) the aggregate amount of claims approved for the previous
quarter.
SOURCE: IC 6-8.1-4-4; (06)CC121401.1.6. -->
SECTION 6. IC 6-8.1-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) The department
shall establish a registration center to service owners of commercial
motor vehicles.
(b) The registration center is under the supervision of the department
through the motor carrier services division.
(c) An owner or operator of a commercial motor vehicle may apply to
the registration center for the following:
(1) Vehicle registration (IC 9-18).
(2) Motor carrier fuel tax annual permit.
(3) Proportional use credit certificate (IC 6-6-4.1-4.7).
(4) Certificate of operating authority.
(5) Oversize vehicle permit (IC 9-20-3).
(6) Overweight vehicle permit (IC 9-20-4).
(7) Payment of the commercial vehicle excise tax imposed under
IC 6-6-5.5.
(d) The commissioner may deny an application described in
subsection (c) if the applicant fails to do any of the following with
respect to a listed tax:
(1) File all tax returns or information reports.
(2) Pay all taxes, penalties, and interest.
(e) The commissioner may suspend or revoke any registration,
permit, certificate, or authority if the person to whom the
registration, permit, certificate, or authority is issued fails to do
any of the following with respect to a listed tax:
(1) File all tax returns or information reports.
(2) Pay all taxes, penalties, and interest.
(d) (f) Funding for the development and operation of the registration
center shall be taken from the motor carrier regulation fund (IC
8-2.1-23-1).
(e) (g) The department shall recommend to the general assembly other
functions that the registration center may perform.
SOURCE: IC 6-8.1-10-13; (06)CC121401.1.7. -->
SECTION 7. IC 6-8.1-10-13 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Sec. 13. (a) A person that:
(1) obtains a permit, license plate, cab card, or any other
credential issued by the registration center established under
IC 6-8.1-4-4; and
(2) alters the permit, license plate, cab card, or other
credential;
is subject to a civil penalty of five hundred dollars ($500) for the
first violation and one thousand dollars ($1,000) for each
subsequent violation.
(b) A person that:
(1) is required to obtain a permit, a license plate, a cab card, or
other credential issued by the registration center established
under IC 6-8.1-4-4; and
(2) operates without obtaining the required permit, license
plate, cab card, or other credential;
is subject to a civil penalty of five thousand dollars ($5,000) for
each violation.
(c) A civil penalty imposed under this section:
(1) shall be deposited in the motor carrier regulation fund
established by IC 8-2.1-23-1; and
(2) is in addition to any fines levied by a court.
SOURCE: IC 8-2.1-22-29; (06)CC121401.1.8. -->
SECTION 8. IC 8-2.1-22-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 29. (a) A person may
not operate any motor vehicle over the public highways for hire, unless
the operations are specifically exempt under this chapter, without first
having obtained appropriate operating authority from the department to
do so, and having otherwise complied with all other applicable
provisions of this chapter.
(b) The department or the state police department may apply to
an administrative law judge of the department or a court with
jurisdiction for an order to impound a motor vehicle that is offered
by a motor carrier to the general public for the transportation of
passengers for hire if:
(1) the motor carrier has not obtained the required authority
from the department to operate the motor vehicle for hire; and
(2) there is probable cause to believe that the motor vehicle has
been operated on an Indiana highway to transport passengers
for hire.
A hearing on an application to impound a motor vehicle under this
subsection may not be held sooner than three (3) days after the
date on which a notice of hearing on the application is served on
the motor carrier. The motor carrier may contest the application
to impound the motor vehicle at the hearing.
(c) A motor carrier that operated a motor vehicle impounded
under this section may not obtain possession of the impounded
motor vehicle unless the motor carrier obtains the required
authority to operate the motor vehicle for hire.
SOURCE: IC 8-2.1-22-40; (06)CC121401.1.9. -->
SECTION 9. IC 8-2.1-22-40 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 40. (a) All applications
under this chapter for a common carrier certificate or a contract carrier
permit to operate motor vehicles, intrastate or interstate, shall be made
on forms prescribed by the department.
(b) All applications for a common carrier certificate of public
convenience and necessity, or a contract carrier permit, to operate motor
vehicles intrastate on the public highways, which applications require
a public hearing thereon, shall be accompanied by a filing fee of
fifty
one hundred dollars
($50). ($100). Each petition for reinstatement of
a common carrier certificate of public convenience and necessity, or a
contract carrier permit, to operate motor vehicles intrastate, on the
highways of this state, shall be accompanied by a filing fee of fifty
dollars ($50).
(c) All applications for a temporary certificate of public convenience
and necessity, or for a contract carrier permit to operate motor vehicles
on the highways of this state in intrastate commerce, shall be
accompanied by a filing fee of fifty one hundred dollars ($50). ($100).
(d) All applications for a change in the name of the holder of a
common carrier certificate of public convenience and necessity, of a
common carrier certificate of authority or certificate of registration, or
of a contract carrier permit, which change of name does not involve a
change in the ownership of the operating rights of the certificate or
permit holder, shall be made by verified petition to the department, and
the applications shall be accompanied by a filing fee of twenty-five
dollars ($25).
(e) In addition to the filing fees prescribed in subsection (b), all
applications for a common carrier certificate of public convenience and
necessity, or for a contract carrier permit, to operate motor vehicles
intrastate, on the public highways, which applications require a public
hearing thereon, shall be accompanied by a publication fee of twenty
eighty dollars ($20). ($80). Whenever any republication is required
through no fault of the department, the party responsible therefor shall
be required to pay an additional publication fee of twenty eighty dollars
($20) ($80) for each republication.
(f) Each petition for rehearing of an application for a common carrier
certificate of public convenience and necessity, or for a contract carrier
permit, to operate motor vehicles intrastate, on the public highways,
shall be accompanied by a filing fee of twenty-five dollars ($25).
(g) Each application or petition for alteration or change of a common
carrier certificate of public convenience and necessity, or a contract
carrier permit, to operate motor vehicles intrastate, on the public
highways, shall be accompanied by a filing fee of fifty dollars ($50).
(h) Each application requesting permission to deviate from the
department's tariff publishing regulations shall be accompanied by a
filing fee of fifteen dollars ($15).
SOURCE: IC 8-2.1-24-20; (06)CC121401.1.10. -->
SECTION 10. IC 8-2.1-24-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 20. Before a motor
carrier engaged in the transportation of property for compensation may
operate a motor vehicle upon a public highway providing intrastate
transportation, the motor carrier must be properly registered as required
under the single state registration system in accordance with rules
adopted by the department under IC 4-22-2. This section does not apply
to a person exclusively engaged in the private transportation of
nonhazardous property.
SOURCE: IC 8-2.1-24-28; (06)CC121401.1.11. -->
SECTION 11. IC 8-2.1-24-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 28.
(a) Pursuant to an
operations out of service order issued by the United States Department
of Transportation or the Federal Highway Administration affecting a
motor carrier operating in Indiana, the department of state revenue or
the state police department may revoke and confiscate any registrations,
license plates, or cab cards issued under IC 9-18.
(b) The department of state revenue may not register or title a
motor carrier:
(1) if the motor carrier fails to comply with federal regulations
under 49 CFR 386;
(2) under an operations out of service order issued by a federal
agency; or
(3) if the motor carrier's ability to operate has been terminated
or denied by a federal agency.
SOURCE: IC 9-20-18-14.5; (06)CC121401.1.12. -->
SECTION 12. IC 9-20-18-14.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 14.5. (a) The civil
penalties imposed under this section are in addition to the other civil
penalties that may be imposed under IC 8 and IC 9.
Notwithstanding
section 12 of this chapter, a civil penalty imposed under this
section:
(1) shall be deposited in the motor carrier regulation fund
established by IC 8-2.1-23-1; and
(2) is in addition to any fines imposed by a court.
(b) A person who violates IC 9-20-5-7 is subject to a civil penalty of
five hundred dollars ($500) for each violation.
as determined by the
court. Notwithstanding section 12 of this chapter, a civil penalty
imposed under this section must be deposited in the motor carrier
regulation fund established under IC 8-2.1-23.
(c) A person who operates a vehicle subject to IC 9-20-5-7 on a route
other than a route designated under IC 9-20-5-4 is subject to a civil
penalty of five hundred dollars ($500) for each violation as determined
by the court. Notwithstanding section 12 of this chapter, a civil penalty
imposed under this section must be deposited in the motor carrier
regulation fund established under IC 8-2.1-23.
(c) A person who obtains a permit under this article and violates
this article is subject to a civil penalty of five hundred dollars
($500) for the first violation and one thousand dollars ($1,000) for
each subsequent violation.
(d) A person who transports heavy vehicles or loads subject to
this article and fails to obtain a permit required under this article
is subject to a civil penalty of five thousand dollars ($5,000) for
each violation.
(e) A civil penalty imposed under this section may be assessed
against a person only after an administrative hearing has been
conducted at which the person has an opportunity to present
information as to why the civil penalty should not be assessed.
(Reference is to EHB 1214 as reprinted March 2, 2006.)
Conference Committee Report
on
Engrossed House
Bill 1214
Text Box
S
igned by:
____________________________ ____________________________
Representative Davis Senator Long
Chairperson
____________________________ ____________________________
Representative Pelath Senator Lanane
House Conferees Senate Conferees