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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0431.01 DLC HOUSE BILL 98­1085

STATE OF COLORADO

BY REPRESENTATIVE G. Berry

FINANCE

A BILL FOR AN ACT

CONCERNING THE USE OF A DIRECT PAYMENT PERMIT NUMBER BY A QUALIFIED PURCHASER TO A VENDOR OR RETAILER IN CONNECTION WITH SALES THAT ARE SUBJECT TO SALES AND USE TAX.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Authorizes the executive director of the department of revenue to issue a direct payment permit number to any person who meets certain qualifications and designates such a person as a "qualified purchaser". Specifies that a retailer or vendor who receives a direct payment permit number from a qualified purchaser is not liable for collecting and remitting the sales and use tax due on the sale of commodities, services, or tangible personal property to the qualified purchaser.

Allows a qualified purchaser to provide a direct payment permit number to a vendor or retailer that is liable and responsible for collecting and remitting the sales and use tax due and requires the qualified purchaser to remit the amount of such tax directly to the executive director of the department of revenue. Prohibits a qualified purchaser who provides a permit number from retaining a vendor's fee.

Subjects the goods and business fixtures of a qualified purchaser to a lien if the qualified purchaser neglects or refuses to remit the amount of sales and use tax due. Allows for an exemption from that lien for qualified purchasers that provide a bond in a specified amount to the executive director.

Permits the use of a direct payment permit number in connection with the collection of any countywide tax or city or town sales tax and any sales tax levied by the regional transportation district, the scientific and cultural facilities district, the Denver metropolitan major league baseball stadium district, the metropolitan football stadium district, and a local improvement district.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  39­26­102, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

39­26­102.  Definitions.  As used in this article, unless the context otherwise requires:

(7.5)  "QUALIFIED PURCHASER" MEANS A PERSON WHO HAS BEEN ISSUED A DIRECT PAYMENT PERMIT NUMBER PURSUANT TO SECTION 39­26­103.5.

SECTION 2.  Part 1 of article 26 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

39­26­103.5.  Qualified purchaser ­ direct payment permit number ­ qualifications. (1)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE MAY ISSUE A DIRECT PAYMENT PERMIT NUMBER TO ANY PERSON THAT SUBMITS AN APPLICATION TO THE EXECUTIVE DIRECTOR DEMONSTRATING THAT:

(a)  FOR THE PRECEDING TWELVE­MONTH PERIOD, SUCH PERSON HAS PURCHASED IN THE AGGREGATE AT LEAST ONE MILLION DOLLARS OF COMMODITIES, SERVICES, OR TANGIBLE PERSONAL PROPERTY THAT ARE SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE; AND

(b) (I)  IF SUCH PERSON HAS BEEN SUBJECT TO THE COLLECTION, REMITTANCE, OR REPORTING REQUIREMENTS IMPOSED BY THIS ARTICLE FOR THE PRECEDING THREE YEARS, SUCH PERSON TIMELY FILED THE REQUIRED RETURNS AND TIMELY REMITTED THE TAX SHOWN DUE ON SUCH RETURNS DURING SAID THREE­YEAR PERIOD; OR

(II)  IF SUCH PERSON HAS BEEN SUBJECT TO THE COLLECTION, REMITTANCE, OR REPORTING REQUIREMENTS IMPOSED BY THIS ARTICLE FOR LESS THAN THE THREE PRECEDING YEARS, FOR THE PERIOD BEGINNING ON THE DATE WHEN SUCH PERSON BECAME SUBJECT TO SUCH REQUIREMENTS, SUCH PERSON TIMELY FILED THE REQUIRED RETURNS AND TIMELY REMITTED THE TAX SHOWN DUE ON SUCH RETURNS.

(2)  NOTHING IN SUBSECTION (1) OF THIS SECTION SHALL BE CONSTRUED TO REQUIRE THAT A PERSON MUST BE SUBJECT TO THE COLLECTION, REMITTANCE, OR REPORTING REQUIREMENTS IMPOSED BY THIS ARTICLE IN ORDER TO OBTAIN A DIRECT PAYMENT PERMIT NUMBER.

(3)  A PERSON SHALL BECOME A QUALIFIED PURCHASER UPON RECEIPT OF A DIRECT PAYMENT PERMIT NUMBER.

(4) (a)  A DIRECT PAYMENT PERMIT NUMBER SHALL BE IN FORCE AND EFFECT UNTIL DECEMBER 31 OF THE THIRD YEAR FOLLOWING THE YEAR IN WHICH IT IS ISSUED, UNLESS SOONER REVOKED. SUCH PERMIT NUMBER SHALL BE GRANTED OR RENEWED ONLY UPON THE FILING OF AN APPLICATION STATING THE INFORMATION DESCRIBED IN SUBSECTION (1) OF THIS SECTION.

(b)  FOR EACH DIRECT PAYMENT PERMIT NUMBER ISSUED, A FEE OF _______ DOLLARS SHALL BE PAID, WHICH FEE SHALL ACCOMPANY THE APPLICATION. PAYMENT OF A FEE FOR ANY DIRECT PAYMENT PERMIT NUMBER ISSUED AFTER JUNE 30 OF ANY GIVEN YEAR SHALL BE PRORATED IN INCREMENTS OF SIX MONTHS.

SECTION 3.  39­26­105 (1), Colorado Revised Statutes, is amended, and the said 39­26­105 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

39­26­105.  Vendor liable for tax. (1) (a)  EXCEPT AS PROVIDED IN PARAGRAPH (d) OF THIS SUBSECTION (1), every retailer, also in this part 1 called "vendor", shall, irrespective of the provisions of section 39­26­106, be liable and responsible for the payment of an amount equivalent to three percent of all sales made by him THE VENDOR of commodities or services as specified in section 39­26­104 and shall, before the twentieth day of each month, make a return to the executive director of the department of revenue for the preceding calendar month and remit an amount equivalent to said three percent on such sales to said executive director, less three and one­third percent of the sum so remitted to cover the vendor's expense in the collection and remittance of said tax; but, if any vendor is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the executive director, the vendor shall not be allowed to retain any amounts to cover his expense in collecting and remitting said tax, and an amount equivalent to the full three percent, plus the amount of any local vendor expense which may be allowed by the local government to the vendor, shall be remitted to the executive director by any such delinquent vendor. Such returns of the taxpayer or his THE TAXPAYER'S duly authorized agent shall contain such information and be made in such manner and upon such forms as the executive director shall prescribe. Any local vendor expense remitted to the executive director shall be deposited to the state general fund.

(b)  The executive director may extend the time for making a return and paying the taxes due under such reasonable rules and regulations as he OR SHE may prescribe, but no such extension shall be for a greater period than is provided for in section 39­26­109.

(c)  The burden of proving that any retailer is exempt from collecting the tax on any goods sold and paying the same to the executive director, or from making such returns, shall be on the retailer or vendor under such reasonable requirements of proof as the executive director may prescribe.

(d)  A RETAILER OR VENDOR WHO HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5 SHALL NOT BE LIABLE OR RESPONSIBLE FOR THE COLLECTION AND REMITTANCE OF THE TAX IMPOSED BY THIS ARTICLE ON ANY SALE MADE TO THE QUALIFIED PURCHASER.

(3) (a)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING THE TAX IMPOSED BY THIS ARTICLE ON ANY SALE MADE TO THE QUALIFIED PURCHASER. A QUALIFIED PURCHASER HOLDING A DIRECT PAYMENT PERMIT SHALL, BEFORE THE TWENTIETH DAY OF EACH MONTH SUBSEQUENT TO THE MONTH IN WHICH ANY SALE TO THE QUALIFIED PURCHASER WAS MADE FOR WHICH THE QUALIFIED PURCHASER'S DIRECT PAYMENT PERMIT NUMBER WAS USED, MAKE A RETURN AND REMIT DIRECTLY TO THE EXECUTIVE DIRECTOR THE AMOUNT OF SUCH TAX OWING ON ALL SUCH SALES TO THE QUALIFIED PURCHASER MADE IN THE PRECEDING MONTH. SUCH RETURNS OF THE QUALIFIED PURCHASER OR DULY AUTHORIZED AGENT SHALL CONTAIN SUCH INFORMATION AND BE MADE IN SUCH MANNER AND UPON SUCH FORMS AS THE EXECUTIVE DIRECTOR SHALL PRESCRIBE.

(b)  NO QUALIFIED PURCHASER SHALL BE ENTITLED TO RETAIN ANY AMOUNT OF THE TAX REQUIRED TO BE REMITTED PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (3) THAT A VENDOR OR RETAILER WOULD OTHERWISE BE ENTITLED TO RETAIN TO COVER THE VENDOR'S OR RETAILER'S EXPENSE IN COLLECTING AND REMITTING THE TAX IMPOSED BY THIS ARTICLE IF THE QUALIFIED PURCHASER HAD NOT PROVIDED A DIRECT PAYMENT PERMIT NUMBER TO THE VENDOR OR RETAILER.

SECTION 4.  39­26­117 (1) (a), Colorado Revised Statutes, is amended, and the said 39­26­117 (1) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

39­26­117.  Tax lien ­ exemption from lien. (1) (a)  Except as provided in paragraph (b) of this subsection (1) AND IN SUBPARAGRAPH (II) OF PARAGRAPH (f) OF THIS SUBSECTION (1), the tax imposed by this part 1 shall be a first and prior lien upon the goods and business fixtures of or used by any retailer OR QUALIFIED PURCHASER under lease, title retaining contract, or other contract arrangement, excepting stock of goods sold or for sale in the ordinary course of business, and shall take precedence on all such property over other liens or claims of whatsoever kind or nature.

(f) (I)  EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH (f), ANY QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5 TO A VENDOR OR RETAILER SHALL BE SUBJECT TO THE LIEN CREATED IN PARAGRAPH (a) OF THIS SUBSECTION (1) IF SUCH QUALIFIED PURCHASER NEGLECTS OR REFUSES TO REMIT THE AMOUNT OF TAX ON ANY SALE MADE TO THE QUALIFIED PURCHASER THAT THE VENDOR OR RETAILER MAKING THE SALE WOULD OTHERWISE HAVE BEEN LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING TAX THEREON PURSUANT TO THIS ARTICLE.

(II)  A QUALIFIED PURCHASER THAT APPLIES FOR A DIRECT PAYMENT PERMIT NUMBER MAY EXEMPT THE QUALIFIED PURCHASER'S PROPERTY FROM THE LIEN CREATED IN PARAGRAPH (a) OF THIS SUBSECTION (1) BY PROVIDING THE EXECUTIVE DIRECTOR WITH A BOND PAYABLE TO THE EXECUTIVE DIRECTOR IN AN AMOUNT EQUAL TO THREE TIMES THE AMOUNT THAT THE QUALIFIED PURCHASER AND THE EXECUTIVE DIRECTOR REASONABLY ESTIMATE WILL BE REMITTED MONTHLY THROUGH UTILIZATION OF THE DIRECT PAYMENT PERMIT NUMBER.

SECTION 5.  29­2­106 (3), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

29­2­106.  Collection ­ administration ­ enforcement. (3) (c) (I)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY COUNTYWIDE SALES TAX OR CITY OR TOWN SALES TAX IMPOSED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS ARTICLE. A VENDOR OR RETAILER THAT HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(II)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX IMPOSED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS ARTICLE IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 6.  30­20­604.5 (2), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

30­20­604.5  District sales tax. (2) (a.5) (I)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY DISTRICT SALES TAX IMPOSED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS SECTION. A VENDOR OR RETAILER WHO HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(II)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX IMPOSED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS SECTION IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 7.  32­9­119 (2) (c), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read:

32­9­119.  Additional powers of district ­ repeal. (2) (c) Sales tax levied pursuant to this subsection (2) shall be collected, administered, and enforced as follows:

(I.5) (A)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS SUBSECTION (2). A VENDOR OR RETAILER THAT HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(B)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS SUBSECTION (2) IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 8.  32­13­110 (2), Colorado Revised Statutes, is amended to read:

32­13­110.  Tax imposed ­ collection ­ administration of tax ­ use. (2) (a)  If such sales tax is levied pursuant to the provisions of this article, the collection, administration, and enforcement of said sales tax shall be performed by the executive director of the department of revenue in the same manner as that for the collection, administration, and enforcement of the state sales tax imposed under article 26 of title 39, C.R.S., including, without limitation, the retention by a vendor of the percentage of the amount remitted to cover the vendor's expense in the collection and remittance of said tax as provided in section 39­26­105, C.R.S. The executive director shall make monthly distributions of such sales tax collections to the district. The district shall pay the net incremental cost incurred by the department of revenue in the administration and collection of such sales taxes; except that in no event shall any district pay in any given fiscal year commencing after the first full fiscal year of operation more than an amount equal to the amount paid by the district in the first full fiscal year of operation, as adjusted in accordance with changes in the consumer price index for the Denver­Boulder consolidated metropolitan statistical area. The department may make expenditures for such costs subject to annual appropriation by the general assembly.

(b) (I)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS ARTICLE. A VENDOR OR RETAILER THAT HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(II)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THIS ARTICLE IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 9.  32­14­114 (2), Colorado Revised Statutes, is amended to read:

32­14­114.  Sales tax imposed ­ collection ­ administration of tax ­ discontinuance. (2) (a)  The collection, administration, and enforcement of the sales tax shall be performed by the executive director of the department of revenue in the same manner as that for the collection, administration, and enforcement of the state sales tax imposed pursuant to article 26 of title 39, C.R.S., including, without limitation, the retention by a vendor of the percentage of the amount remitted to cover the vendor's expense in the collection and remittance of the sales tax as provided in section 39­26­105, C.R.S. The executive director shall make monthly distributions of such sales tax collections to the district. The district shall pay the net incremental cost incurred by the department of revenue in the administration and collection of such sales tax; except that in no event shall the district pay in any given fiscal year commencing on or after July 1, 1994, more than an amount equal to the amount paid by the district in the 1993­94 fiscal year, as adjusted in accordance with changes in the consumer price index for the Denver­Boulder consolidated metropolitan statistical area. The department may make expenditures for such costs subject to annual appropriation by the general assembly.

(b) (I)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS ARTICLE. A VENDOR OR RETAILER THAT HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(II)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 10.  32­15­110 (2), Colorado Revised Statutes, is amended to read:

32­15­110.  Sales tax imposed ­ collection ­ administration of tax ­ discontinuance. (2) (a)  The collection, administration, and enforcement of the sales tax shall be performed by the executive director of the department of revenue in the same manner as that for the collection, administration, and enforcement of the state sales tax imposed pursuant to article 26 of title 39, C.R.S., including, without limitation, the retention by a vendor of the percentage of the amount remitted to cover the vendor's expense in the collection and remittance of the sales tax as provided in section 39­26­105, C.R.S. The executive director shall make monthly distributions of such sales tax collections to the district. The district shall pay the net incremental cost incurred by the department of revenue in the administration and collection of such sales tax.

(b) (I)  A QUALIFIED PURCHASER MAY PROVIDE A DIRECT PAYMENT PERMIT NUMBER ISSUED PURSUANT TO SECTION 39­26­103.5, C.R.S., TO ANY VENDOR OR RETAILER THAT IS LIABLE AND RESPONSIBLE FOR COLLECTING AND REMITTING ANY SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS ARTICLE. A VENDOR OR RETAILER THAT HAS RECEIVED IN GOOD FAITH FROM A QUALIFIED PURCHASER A DIRECT PAYMENT PERMIT NUMBER SHALL NOT BE LIABLE OR RESPONSIBLE FOR COLLECTION AND REMITTANCE OF ANY SALES TAX IMPOSED ON SUCH SALE.

(II)  A QUALIFIED PURCHASER THAT PROVIDES A DIRECT PAYMENT PERMIT NUMBER TO A VENDOR OR RETAILER SHALL BE LIABLE AND RESPONSIBLE FOR THE AMOUNT OF SALES TAX LEVIED ON ANY SALE MADE TO THE QUALIFIED PURCHASER PURSUANT TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AS LIABILITY WOULD BE IMPOSED ON A PURCHASER THAT DOES NOT PROVIDE A DIRECT PAYMENT PERMIT NUMBER TO SUCH VENDOR OR RETAILER.

SECTION 11.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.