HOUSE BILL NO. 540

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Bill Status



H0540.........................................by TRANSPORTATION AND DEFENSE
TRAILER/MOTOR VEHICLE - TRANSACTION - Adds to existing law to provide that
a transaction involving a motor vehicle or trailer does not create a sale
or security interest merely because the transaction includes a terminal
rental adjustment clause (TRAC).
                                                                        
01/23    House intro - 1st rdg - to printing
01/26    Rpt prt - to Transp
02/05    Rpt out - rec d/p - to 2nd rdg
02/06    2nd rdg - to 3rd rdg
02/10    3rd rdg - PASSED - 63-0-7
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Harwood, Henbest, Jaquet, Jones, Kellogg,
      Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague,
      Meyer, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould,
      Ridinger, Ring, Ringo, Robison, Sayler, Schaefer, Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Gagner, Garrett, Miller, Roberts,
      Rydalch, Sali
    Floor Sponsor - Wood
    Title apvd - to Senate
02/11    Senate intro - 1st rdg - to Transp
02/27    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 29-0-6
      AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
      Calabretta, Compton, Darrington, Gannon, Geddes, Goedde, Hill,
      Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
      Sweet, Werk
      NAYS -- None
      Absent and excused -- Brandt, Cameron, Davis, Noh, Stennett, Williams
    Floor Sponsor - Ingram
    Title apvd - to House
03/16    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed - To Governor
03/23    Governor signed
         Session Law Chapter 247
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 540
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE TITLES; AMENDING CHAPTER 5, TITLE 49, IDAHO CODE, BY
  3        THE ADDITION OF A NEW SECTION 49-512A,  IDAHO  CODE,  TO  PROVIDE  THAT  A
  4        TRANSACTION INVOLVING A MOTOR VEHICLE OR TRAILER DOES NOT CREATE A SALE OR
  5        SECURITY  INTEREST  MERELY  BECAUSE  THE  TRANSACTION  INCLUDES A TERMINAL
  6        RENTAL ADJUSTMENT CLAUSE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 5, Title 49, Idaho Code,  be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 49-512A, Idaho Code, and to read as follows:
                                                                        
 11        49-512A.  EFFECT OF A TERMINAL RENTAL ADJUSTMENT  CLAUSE.  Notwithstanding
 12    any  provision of law to the contrary, a transaction involving a motor vehicle
 13    or trailer does not create a sale or  security  interest  merely  because  the
 14    transaction  provides  that  the  rental  price is permitted or required to be
 15    adjusted under the agreement either upward or downward  by  reference  to  the
 16    amount  realized  upon  the  sale or other disposition of the motor vehicle or
 17    trailer.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13674

The purpose of this legislation is to make it clear that motor
vehicle fleet leasing contracts that contain Terminal Rental
Adjustment Clause provisions are true leases and should be
accorded the same treatment in the area of bankruptcy that
currently exists in the area of federal taxation.
This makes the law of Idaho consistent with the law of the great
majority of other states.
                          FISCAL IMPACT
None.


Contact
Name: Rep. Wood/Sen. Ingram 
Phone: 332-1146




STATEMENT OF PURPOSE/FISCAL NOTE                    H 540