[mellie]

Just a reminder in case anyone else is watching action in Hawaii, HB 1405 awaits signing by the Governor. Unless vetoed, the law takes effect July 1.

[Rich Owings]

Mellie,

CJ says the veto cutoff date is July 15. can you confirm which is correct? I want to share the date with NC legislators.

[Rich Owings]

I think I found the answer. It does look like July 15 .

[mellie]

As a rule, the Governor has until June 29 (this year) to inform the Senate & Representives that she intends to veto; she has to give at least 10 days (legislative days) notice prior to the July 15 last day to veto or sign.

HB1405 is set to take effect July 1 as indicated in the bill.

I do not think she can veto after it takes effect, it would have to be repealed.

A bill passed by Senate and Reps takes effect with or without her signature - unless she vetoes. If she vetoes (remember, she needs to tell them 10 days before) the veto can be overruled.

[Rich Owings]

Thanks. I guess we'll hear from Hawaii affiliates if Amazon pulls the plug.

[mellie]

If they are going to terminate, it must be done prior to July 1 the day the law takes effect. Nexus will be established based on the 4 quarters prior to July 1. Even if there is a delay in enforcing the law, nexus is decided that first day.

One of the things we saw last year is that some merchants did the removal after the fact, some even reversed commissions. All this was done after nexus was established. Problem with that, besides that it was a rotten thing to do to NY affiliates, it was tax fraud, evasion and so on. Don't know what the statute of limitations is but I would be a nervous merchant if I had done something like that; if done under counsel I would also hire a new lawyer or accountant cause whoever told them to do it was not too bright.

Also, NY affiliates could have sued as commissions were illegally reversed but there is not enough in the TOS to protect us.