N.Y. Tax Law § 283-d: Registration of wholesalers of motor fuel

§ 283-d. Registration of wholesalers of motor fuel. (a) Registration

required. Each wholesaler of motor fuel must be registered with the

department under this section. No wholesaler of motor fuel shall make a

sale of motor fuel in this state other than a retail sale not in bulk

unless such wholesaler is so registered. The department, upon the

application of a person, shall register such person as a wholesaler of

motor fuel except that the commissioner may refuse to register an

applicant for any of the grounds specified in subdivision two or five of

section two hundred eighty-three of this article or in subdivision (c)

of this section. The application shall be in such form and contain such

information as the commissioner shall prescribe. All of the provisions

of subdivisions two, four, five, six, seven, eight, nine and ten of

section two hundred eighty-three of this article relating to

registration of distributors shall be applicable to the registration of

wholesalers of motor fuel under this section with the same force and

effect as if the language of such subdivisions had been incorporated in

full in this section and had expressly referred to the registration of

wholesalers of motor fuel, with such modification as may be necessary in

order to adapt the language of such provisions to the provisions of this

section, provided, specifically, that the term "distributor" shall be

read as "wholesaler of motor fuel." Provided, however, that if the

commissioner is satisfied that the requirements of such provisions for

registration are not necessary in order to protect tax revenues, the

commissioner may limit or modify such requirements with respect to any

person not required to be registered as a distributor of motor fuel.

(b) Bond or other security. The commissioner may require a wholesaler

of motor fuel seeking a registration to file with the department a bond

issued by a surety company approved by the superintendent of financial

services as to solvency and responsibility and authorized to transact

business in this state or other security acceptable to the commissioner,

in such amount as the commissioner may fix to secure the performance by

such wholesaler of motor fuel of the duties and responsibilities

required (i) pursuant to this article and (ii) pursuant to articles

twenty-eight and twenty-nine of this chapter with respect to motor fuel.

The commissioner may require that such a bond or other security be filed

before a wholesaler of motor fuel is registered, and the amount thereof

may be increased at any time when in the commissioner's judgment the

same is necessary. If securities are deposited as security under this

subdivision, such securities shall be kept in the joint custody of the

comptroller and the commissioner and may be sold by the commissioner if

it becomes necessary so to do in order to recover against such

wholesaler of motor fuel but no such sale shall be had until after such

wholesaler of motor fuel shall have had opportunity to litigate the

validity of the liability if it elects to do so. Upon any such sale the

surplus, if any, above the sums due shall be returned to such wholesaler

of motor fuel. The department, when authorized by the wholesaler of

motor fuel, shall furnish information regarding the registration of the

wholesaler of motor fuel and any other information which the wholesaler

of motor fuel authorizes it to disclose.

(c) Refusal to register. For the purposes of determining whether to

refuse an application for registration under this section, the

references in subdivision two of section two hundred eighty-three of

this article to employees or shareholders under a duty to file a return

under or pursuant to the authority of this article or pay the taxes

imposed by or pursuant to the authority of this article on behalf of the

applicant or another person shall be deemed to also include an employee

under a duty to file a return or pay taxes under or pursuant to the

authority of this article on behalf of such applicant or other person.

In addition to the grounds specified in section two hundred eighty-three

of this article, the commissioner may refuse to register an applicant

where the commissioner ascertains that the applicant, an officer,

director or partner of the applicant, a shareholder directly or

indirectly owning more than ten percent of the number of shares of stock

of such applicant (where such applicant is a corporation) entitling the

holder thereof to vote for the election of directors or trustees, or an

employee or shareholder of such applicant who, as such employee or

shareholder is under a duty to file a return under or pursuant to the

authority of this article or to pay the taxes imposed by or pursuant to

the authority of this article on behalf of the applicant; (1) has

committed any of the acts or omissions which are, or was convicted as,

specified in subdivision (d) of this section within the preceding five

years; or (2) was an officer, director or partner of another person, or

who directly or indirectly owned more than ten percent of the shares of

stock of another person (where such other person is a corporation)

entitling the holder thereof to vote for the election of directors or

trustees, or who was an employee or shareholder of another person under

a duty to file a return under or pursuant to the authority of this

article or pay the taxes imposed by or pursuant to the authority of this

article on behalf of such other person at the time such other person

committed any of the acts or omissions which are, or was convicted as,

specified in subdivision (d) of this section within the preceding five

years.

(d) Cancellation or suspension of registration. The grounds for a

cancellation or suspension of a registration under this section as a

wholesaler of motor fuel are the same as those grounds specified in

section two hundred eighty-three of this article and, in addition to

such grounds, the following grounds relating to this article shall

apply:

(1) A registration as a wholesaler of motor fuel may be cancelled or

suspended if the commissioner determines that a registrant or an

officer, director or partner of the registrant, a shareholder directly

or indirectly owning more than ten percent of the number of shares of

stock of such registrant (where such registrant is a corporation)

entitling the holder thereof to vote for the election of directors or

trustees, or an employee or shareholder of such registrant under a duty

to file a return under or pursuant to the authority of this article or

to pay the taxes imposed by or pursuant to the authority of this article

on behalf of the registrant

(A) fails to file or maintain in full force and effect a bond or other

security when required pursuant to subdivision (b) of this section or

when the amount thereof is increased,

(B) fails to comply with any of the provisions of this article or any

rule or regulation adopted pursuant to this article by the commissioner,

(C) knowingly aids and abets another person in violating any of the

provisions of this article or any rule or regulation adopted pursuant to

this article by the commissioner,

(D) transfers its registration as a wholesaler of motor fuel without

the prior written approval of the commissioner,

(E) with respect to a wholesaler of motor fuel which is a corporation,

has been dissolved pursuant to section two hundred three-a and

subdivision (d) of section three hundred ten of this chapter,

(F) commits fraud or deceit in his, her or its operations as a

wholesaler of motor fuel or has committed fraud or deceit in procuring

his, her or its registration,

(G) has impersonated any person represented to be a wholesaler of

motor fuel under this article but not in fact registered as a wholesaler

of motor fuel, or

(H) has knowingly aided and abetted the distribution of motor fuel, by

any person which such registrant or such other person knows has not been

registered by the commissioner as required under this article.

(2) A registration as a wholesaler of motor fuel may be cancelled or

suspended if the commissioner determines that a registrant or an

officer, director or partner of the registrant, a shareholder directly

or indirectly owning more than ten percent of the number of shares of

stock of such registrant (where such registrant is a corporation)

entitling the holder thereof to vote for the election of directors or

trustees, or an employee or shareholder of such registrant under a duty

to file a return under or pursuant to the authority of this article or

to pay the taxes imposed by or pursuant to the authority of this article

on behalf of the registrant, was an officer, director or partner of

another person or was a shareholder directly or indirectly owning more

than ten percent of the number of shares of stock of another person

(where such other person is a corporation) entitling the holder thereof

to vote for the election of directors or trustees, or was an employee or

shareholder of another person under a duty to file a return under or

pursuant to the authority of this article or to pay the taxes imposed by

or pursuant to the authority of this article on behalf of such other

person at the time such other person committed any of the acts specified

in paragraph one of this subdivision within the preceding five years.

(e) Cancellation or suspension of registration prior to a hearing. The

grounds for cancelling or suspending a registration as a wholesaler of

motor fuel prior to a hearing shall be the same as those specified in

subdivision five of section two hundred eighty-three of this article

and, in addition to such grounds, the following grounds relating to this

article shall apply:

(1) the failure to file a return within ten days of the date

prescribed for filing a return under this article if the registrant

shall have failed to file such return within ten days after the date the

demand therefor is sent by registered or certified mail to the address

of the wholesaler of motor fuel given in its application, or an address

substituted therefor as provided in subdivision five of section two

hundred eighty-three of this article,

(2) the failure to continue to maintain in full force and effect at

all times the bond or other security required to be filed pursuant to

subdivision (b) of this section, provided, however, that if a surety

bond is cancelled prior to expiration, the commissioner may after

considering all the relevant circumstances make such other arrangements,

and may require the filing of such other bond or other security as it

deems appropriate,

(3) the transfer of a registration as a wholesaler of motor fuel

without the prior written approval of the commissioner, or

(4) with respect to a wholesaler of motor fuel which is a corporation,

the dissolution or annulment of such corporation pursuant to section

three hundred ten of this chapter.