March 12, 1999

Mr. Speaker:

Your TAXATION AND REVENUE COMMITTEE, to whom has been referred

SENATE BILL 355, as amended

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. Strike Senate Corporations and Transportation Committee Amendment 1.

2. On page 2, lines 6 through 17, strike all underscored material and insert in lieu thereof:

"provided, however, that with respect to a transaction occurring prior to July 1, 1997, if the seller or lessor has been audited by the department and a deduction claimed by the seller or lessor for the transaction has been disallowed on the grounds that the seller or lessor was not in possession of the required nontaxable transaction certificate at the required time, the seller or lessor has filed a written protest with the department in a timely manner and the seller or lessor has appealed the hearing officer's decision on the protest, then the seller or lessor shall have until September 30, 1999 to demonstrate to the department possession of a nontaxable transaction certificate of the appropriate series executed by the buyer or lessee, in which case the department shall allow the deduction for the transaction and shall not assess penalties or interest.".

Respectfully submitted,

Jerry W. Sandel, Chairman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 13 For 1 Against

Yes: 13

No: Russell

Excused: Burpo

Absent: None

.128972.2

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