2004 House Bill 5920 / Public Act 472

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Introduced in the House

May 18, 2004

Introduced by Rep. Jerry Kooiman (R-75)

To eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.

Referred to the Committee on Transportation

June 17, 2004

Reported without amendment

June 24, 2004

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Sept. 29, 2004

Passed in the House 57 to 46 (details)

To eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.

Received in the Senate

Sept. 30, 2004

Referred to the Committee on Transportation

Dec. 1, 2004

Reported without amendment

With the recommendation that the bill pass.

Dec. 8, 2004

Substitute offered by Sen. Jud Gilbert (R-25)

To replace the previous version of the bill with one that would eliminate the joint and several liability only if the parties have a contract specifying which party is responsible. This provision would sunset on April 1, 2007.

The substitute passed by voice vote

Passed in the Senate 37 to 0 (details)

To eliminate the joint and several liability between lessors and lessees of commercial trucks for the payment of the motor fuel tax if the parties have a contract regarding the liability specifying which party is responsible. This provision would sunset on April 1, 2007, unless the legislature acts to extend it. This relates to the fact that interstate trucks using Michigan highways pay a motor fuel tax and a diesel fuel tax, with a complicated system of credits and reporting intended to remove the disincentive for buying fuel in Michigan. “Joint and several liability” means that if two parties are partially liable for payment, and one does not pay his share, the other must pay the entire amount.

Received in the House

Dec. 8, 2004

Passed in the House 98 to 1 (details)

Signed by Gov. Jennifer Granholm

Dec. 22, 2004