Illinois House Bill HB1390

Illinois 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/28/25
• Refer: 2/11/25
• Report Pass: 3/13/25
• Refer: 4/11/25

Caption

MOTOR FUEL-VARIOUS

Impact

The amendments brought forth by HB1390 would eliminate certain regulatory hurdles for businesses acting as fuel distributors. By removing the previous restrictions on who can operate as a supplier for special fuel, the bill could enhance competition within the market, potentially leading to lower prices for consumers. Additionally, the changes in definitions aim to provide clarity in the tax collection process, which might reduce confusion and ensure compliance among distributors and suppliers in the state. The overall impact is expected to facilitate smoother operations within the fuel industry while ensuring that tax revenue remains intact.

Summary

House Bill 1390, introduced by Rep. Jay Hoffman, seeks to amend the Motor Fuel Tax Law in Illinois by repealing the definition of 'supplier' and specific related provisions. This reform aims to clarify and streamline the regulations surrounding motor fuel distribution, particularly by defining the roles of 'distributors' and 'receivers' in the context of fuel sales and tax obligations. The bill reflects an effort to adjust existing legal frameworks to meet contemporary fuel distribution practices, thereby impacting businesses involved in the fuel supply chain.

Contention

Potential points of contention surrounding HB1390 include concerns about the implications of deregulating the supplier provisions. Critics may argue that removing established definitions and regulations could lead to increased illegal fuel trade or tax evasion. Supporters of the bill counter that enhancing clarity and competition will ultimately benefit consumers while maintaining the essential frameworks for tax collection and distribution regulation. The discourse surrounding the bill may involve examining whether these changes sufficiently safeguard against regulatory gaps that could be exploited.