View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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
]]]] 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
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