Senate Bill S7219A

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7219--A

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to establishing exemptions from
  state  sales  tax  and  the petroleum business tax for retail sales of
  motor fuel and diesel motor fuel; to amend the general  business  law,
  in  relation  to  providing for the regulation of motor fuel distribu-
  tors, importing transporters and  terminal  operators;  to  amend  the
  agriculture  and  markets  law,  the canal law, the criminal procedure
  law, the general business law, the highway law, the public authorities
  law, the state finance law and the tax  law,  in  relation  to  making
  conforming  changes thereto; to repeal article 12-A of the tax law, in
  relation to taxes on gasoline and similar motor  fuel;  and  repealing
  certain  provisions  of the state finance law and the tax law relating
  thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 12-A of the tax law is REPEALED.
  S  2.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44) RETAIL SALES OF MOTOR FUEL AND DIESEL MOTOR FUEL.
  S 3. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
adding a new clause 12 to read as follows:
  (12)  EXCEPT  AS  OTHERWISE PROVIDED BY LAW, THE EXEMPTION PROVIDED IN
PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
FIFTEEN  OF  THIS  ARTICLE  RELATING TO MOTOR FUEL AND DIESEL MOTOR FUEL
SHALL NOT APPLY.
  S 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 3 of part GG of chapter 57 of the laws  of  2010,  is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD10676-05-2

S. 7219--A                          2

identical,  except as to rate and except as otherwise provided, with the
corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision,  shall  omit the residential solar energy systems equipment
exemption provided for in subdivision (ee) and the clothing and footwear
exemption provided for in paragraph thirty of subdivision (a) of section
eleven hundred fifteen of this chapter,  unless  such  city,  county  or
school  district  elects  otherwise  as to either such residential solar
energy  systems  equipment  exemption  or  such  clothing  and  footwear
exemption. EXCEPT AS OTHERWISE PROVIDED BY LAW, ANY LOCAL LAW, ORDINANCE
OR  RESOLUTION  ENACTED  BY  ANY CITY OF LESS THAN ONE MILLION OR BY ANY
COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS  SUBDI-
VISION,  SHALL  OMIT  THE  MOTOR  FUEL  AND  DIESEL MOTOR FUEL EXEMPTION
PROVIDED FOR IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SUCH  SECTION
ELEVEN HUNDRED FIFTEEN.
  S  5.  Subdivision  (m)  of section 1111 of the tax law, as amended by
section 1 of part M-1 of chapter 109 of the laws of 2006, paragraph 7 as
amended by section 11 of subpart I of part V-1 of chapter 57 of the laws
of 2009, is amended to read as follows:
  (m) Notwithstanding any provision of law to the contrary:
  (1) [The sales tax  imposed  by  subdivision  (a)  of  section  eleven
hundred  five  of  this  article and the compensating use tax imposed by
section eleven hundred ten of this article, in regard to retail sales of
motor fuel and diesel motor fuel, shall be eight cents per gallon.
  (2)] The sales and compensating use taxes imposed by  subdivision  (a)
of  section  eleven  hundred  nine  of this article, in regard to retail
sales of motor fuel and diesel motor fuel, shall  be  three-quarters  of
one cent per gallon.
  [(3)  Paragraph  one  of this subdivision shall not apply to the sales
and compensating use taxes imposed by subdivision (a) of section  eleven
hundred  seven  of  this article in regard to retail sales of motor fuel
and diesel motor fuel. However, the]

S. 7219--A                          3

  (2) THE legislative body of a city  in  which  the  taxes  imposed  by
[such] section eleven hundred seven OF THIS PART are in effect, by local
law,  ordinance,  or  resolution  in  exactly  the  form prepared by the
commissioner, may elect that such taxes, in regard to  retail  sales  of
motor  fuel  and  diesel motor fuel, shall be computed, as determined by
the commissioner, at a rate of cents per gallon, rounded to the  nearest
cent,  equal to two or three dollars, as determined by the municipality,
multiplied by the percentage rate of such taxes within the municipality.
  [(4) Paragraph one of this subdivision shall not apply  to  the  sales
and  compensating  use taxes imposed by a local law, ordinance or resol-
ution of a municipality pursuant to the authority of subpart B  of  part
one of article twenty-nine of this chapter, in regard to retail sales of
motor fuel and diesel motor fuel.]
  (3) The legislative body of [such] a municipality, by local law, ordi-
nance  or  resolution  in exactly the form prepared by the commissioner,
PURSUANT  TO  THE  AUTHORITY  OF  SUBPART  B  OF  PART  ONE  OF  ARTICLE
TWENTY-NINE  OF  THIS CHAPTER, may elect that its sales and compensating
use taxes, in regard to the retail sale of motor fuel and  diesel  motor
fuel, shall be computed, as determined by the commissioner, at a rate of
cents  per  gallon,  rounded  to the nearest cent, equal to two or three
dollars, as determined by the municipality, multiplied by the percentage
rate of such taxes within the municipality.
  [(5)] (4) (i) Prior to the start of any sales tax quarter, the commis-
sioner shall apply the local percentage sales tax rate of each county or
city that has elected a cents per  gallon  rate  pursuant  to  paragraph
[three]  TWO or [four] THREE of this subdivision to the average price of
motor fuel and diesel motor fuel, not including sales tax and the  motor
fuel  excise  tax,  for  three  consecutive months beginning four months
prior to the start of any sales tax  quarter.  If  the  result  of  this
computation  is less than the elected cents per gallon rate for a county
or city, the cents per gallon rate for such  county  or  city  shall  be
adjusted  to  be  equal  to such computation, rounded to the nearest one
cent. Such rates shall be published by the commissioner and effective in
the next succeeding sales tax quarter.
  (ii) Prior to the start of any sales  tax  quarter,  the  commissioner
shall also adjust in a like manner the cents per gallon rates prescribed
by  [paragraphs]  PARAGRAPH  one  [and two] of this subdivision based on
percentage sales tax [rates] RATE of [four percent and] three-eighths of
a percent [respectively].  Provided, however, adjustments  made  to  the
cents  per  gallon  rate prescribed by paragraph two of this subdivision
shall be rounded to the nearest one-tenth of one cent.
  [(6)] (5) A local law, ordinance or resolution making or revoking  the
election  made  pursuant  to paragraph three or four of this subdivision
must go into effect in accordance with the  provisions  of  subdivisions
(d) and (e) of section twelve hundred ten of this chapter.
  [(7)]  (6) Notwithstanding any foregoing provision of this subdivision
or other law to the  contrary,  this  subdivision,  subdivision  (h)  of
section  eleven hundred nine of this part and subdivision (n) of section
eighteen hundred seventeen of this chapter, section three hundred  nine-
ty-two-i  of  the general business law and other provisions of law which
refer or relate to this subdivision shall apply only to (A)  motor  fuel
or diesel motor fuel sold for use directly and exclusively in the engine
of  a  motor vehicle and (B) motor fuel or diesel motor fuel, other than
water-white kerosene sold exclusively for heating purposes in containers
of no more than twenty gallons,  sold  by  a  retail  gas  station.  For
purposes  of  this subdivision and such other provisions of law, "retail

S. 7219--A                          4

gas station" shall mean a filling station  where  such  fuel  is  stored
primarily  for  sale  by  delivery  directly into the ordinary fuel tank
connected with the engine of a motor vehicle to be consumed in the oper-
ation  of  such motor vehicle or where such fuel is stored primarily for
sale by delivery directly into the ordinary fuel tank connected with the
engine of a vessel to be consumed in the operation of such vessel.   The
commissioner  is hereby authorized to require the use of certificates or
other documents, and procedures related thereto, to effect the  purposes
of  this  subdivision;  and  any  such  certificate or other document so
required by the commissioner for a purchaser to tender to  a  vendor  to
purchase  such fuel subject to tax on the reduced base established by or
pursuant to this subdivision is hereby deemed to be an exemption certif-
icate as such term is used in subdivision (c) of section eleven  hundred
thirty-two  of this article and as if the provisions of such subdivision
(c) referred to such a certificate or document required pursuant to this
subdivision.
  S 6. Paragraph 1 of subdivision (h) of section 1109 of the tax law, as
amended by section 2 of part M-1 of chapter 109 of the laws of 2006,  is
amended to read as follows:
  (1)  EXCEPT  AS  OTHERWISE PROVIDED BY LAW, THE EXEMPTION CONTAINED IN
PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
FIFTEEN  OF  THIS  ARTICLE  RELATING TO MOTOR FUEL AND DIESEL MOTOR FUEL
SHALL NOT APPLY. The commissioner shall determine  and  certify  to  the
comptroller  the amount of revenue foregone as a result of the cents per
gallon tax in paragraph two of subdivision (m) of section eleven hundred
eleven of this part in lieu of tax at the rate provided  in  subdivision
(a) of this section.
  S  7.  Subdivision  (a)  of section 301-b of the tax law is amended by
adding a new paragraph 9 to read as follows:
  (9) MOTOR FUEL OR DIESEL MOTOR FUEL SOLD OR USED BY A PETROLEUM  BUSI-
NESS  WHICH IS REGISTERED UNDER ARTICLE ELEVEN-C OF THE GENERAL BUSINESS
LAW AT RETAIL TO A CONSUMER FOR USE AS FUEL TO OPERATE A MOTOR VEHICLE.
  S 8. The general business law is amended by adding a new article  11-C
to read as follows:
                               ARTICLE 11-C
            REGULATION OF MOTOR FUEL DISTRIBUTORS, IMPORTING
                   TRANSPORTERS AND TERMINAL OPERATORS
SECTION 199-O.  DEFINITIONS.
        199-P. REGISTRATION OF DISTRIBUTORS.
        199-Q. LICENSING OF IMPORTING TRANSPORTERS.
        199-R. LICENSING OF TERMINAL OPERATORS.
        199-S. LIQUEFIED PETROLEUM GAS FUEL PERMIT.
        199-T. PETROLEUM TESTING FEE.
        199-U. RECORDS TO BE KEPT BY DISTRIBUTORS AND OTHERS.
        199-V. RECORDS  AND  REPORTS OF TRANSPORTATION OF MOTOR FUEL AND
                 DIESEL MOTOR FUEL.
        199-W. TRANSPORTATION OF MOTOR FUEL OR DIESEL MOTOR FUEL;  MANI-
                 FEST REQUIRED.
  S  199-O.  DEFINITIONS. AS USED IN THIS ARTICLE, 1. A. WITH RESPECT TO
MOTOR FUEL, "DISTRIBUTOR" MEANS ANY PERSON, FIRM, ASSOCIATION OR  CORPO-
RATION,  WHO  OR  WHICH IMPORTS OR CAUSES TO BE IMPORTED INTO THE STATE,
FOR USE, DISTRIBUTION, STORAGE OR SALE WITHIN THE STATE, ANY MOTOR FUEL;
AND ALSO ANY PERSON, FIRM,  ASSOCIATION  OR  CORPORATION  WHO  OR  WHICH
PRODUCES,  REFINES,  MANUFACTURES  OR  COMPOUNDS  MOTOR  FUEL WITHIN THE
STATE.

S. 7219--A                          5

  B. WITH RESPECT TO DIESEL MOTOR FUEL, "DISTRIBUTOR" MEANS ANY  PERSON,
FIRM,  ASSOCIATION  OR CORPORATION (I) WHO OR WHICH IMPORTS OR CAUSES TO
BE IMPORTED INTO THE STATE, FOR USE, DISTRIBUTION, STORAGE OR SALE WITH-
IN THE STATE, ANY  DIESEL  MOTOR  FUEL;  (II)  WHO  OR  WHICH  PRODUCES,
REFINES,  MANUFACTURES  OR COMPOUNDS DIESEL MOTOR FUEL WITHIN THE STATE;
(III) WHO OR WHICH MAKES A SALE OR USE OF  DIESEL  MOTOR  FUEL  IN  THIS
STATE  OTHER  THAN: (A) A RETAIL SALE NOT IN BULK OR (B) THE SELF-USE OF
DIESEL MOTOR FUEL WHICH HAS BEEN THE SUBJECT OF A RETAIL  SALE  TO  SUCH
PERSON; (IV) WHO OR WHICH IS REGISTERED BY THE DEPARTMENT AS A DISTRIBU-
TOR  OF  KERO-JET  FUEL. FOR THE PURPOSES OF THIS ARTICLE WHEN USED WITH
RESPECT TO DIESEL MOTOR FUEL, A "RETAIL SALE  NOT  IN  BULK"  MEANS  THE
MAKING  OR  OFFERING TO MAKE ANY SALE OF DIESEL MOTOR FUEL TO A CONSUMER
OF SUCH FUEL WHICH IS DELIVERED DIRECTLY INTO A MOTOR VEHICLE FOR USE IN
THE OPERATION OF SUCH VEHICLE. A "RETAIL SALE IN BULK" MEANS THE  MAKING
OR OFFERING TO MAKE ANY SALE OF DIESEL MOTOR FUEL TO A CONSUMER WHICH IS
OTHER THAN A "RETAIL SALE NOT IN BULK".  MOTOR FUEL OR DIESEL MOTOR FUEL
BROUGHT  INTO  THE  STATE  IN THE ORDINARY FUEL TANK CONNECTING WITH THE
ENGINE OF A MOTOR VEHICLE, AEROPLANE, MOTOR  BOAT  OR  OTHER  CONVEYANCE
PROPELLED  BY THE USE OF SUCH MOTOR FUEL OR DIESEL MOTOR FUEL, AND TO BE
USED ONLY IN THE OPERATION THEREOF, SHALL NOT BE DEEMED IMPORTED  WITHIN
THE  MEANING  OF  THIS  ARTICLE, IF NOT REMOVED FROM SUCH TANK EXCEPT AS
USED IN THE PROPULSION OF SUCH ENGINE.
  2. "MOTOR FUEL" MEANS GASOLINE, BENZOL, REFORMULATED BLEND  STOCK  FOR
OXYGENATE  BLENDING,  CONVENTIONAL  BLEND  STOCK FOR OXYGENATE BLENDING,
E85, FUEL GRADE ETHANOL THAT MEETS THE ASTM INTERNATIONAL ACTIVE  STAND-
ARDS  SPECIFICATIONS  D4806  OR D4814 OR OTHER PRODUCT WHICH IS SUITABLE
FOR USE IN OPERATION OF A MOTOR VEHICLE ENGINE.
  3. "MOTOR VEHICLE" MEANS ANY VEHICLE PROPELLED BY ANY POWER OTHER THAN
MUSCULAR, EXCEPT BOATS, ROAD BUILDING MACHINERY, POWER SHOVELS,  TRACTOR
CRANES,  TRACTORS  USED  EXCLUSIVELY  FOR AGRICULTURAL PURPOSES AND SUCH
VEHICLES AS ARE RUN ONLY ON RAILS OR TRACKS.
  4. "PURCHASER" SHALL INCLUDE, IN ADDITION TO ITS  USUAL  MEANING,  THE
DISTRIBUTOR  IN THE CASE OF TRANSFER OF MOTOR FUEL BY A DISTRIBUTOR FROM
HIS, THEIR OR ITS STOCK, INTO A MOTOR VEHICLE, OR INTO A CONTAINER  FROM
WHICH  MOTOR  FUEL  IS SUPPLIED BY THE DISTRIBUTOR TO A MOTOR VEHICLE OR
VEHICLES OF THE DISTRIBUTOR OR OF OTHERS.
  5. "SALE" SHALL INCLUDE, IN ADDITION  TO  ITS  MEANING  UNDER  ARTICLE
TWENTY-EIGHT  OF THE TAX LAW, THE TRANSFER OF FUEL BY A DISTRIBUTOR INTO
A MOTOR VEHICLE OR INTO A RECEPTACLE FROM WHICH FUEL IS SUPPLIED BY  HIM
OR IT TO HIS OR ITS OWN OR OTHER MOTOR VEHICLES.
  6.  "OWNER"  SHALL  INCLUDE ANY PERSON OFFERING MOTOR FUEL FOR SALE AT
RETAIL.
  7. "PERSON" INCLUDES AN INDIVIDUAL, CO-PARTNERSHIP, LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, CORPORATION, JOINT STOCK COMPANY, AND ANY
COMBINATION  OF INDIVIDUALS AND ALSO AN EXECUTOR, ADMINISTRATOR, RECEIV-
ER, TRUSTEE OR OTHER FIDUCIARY.
  8. "TRANSPORTER" MEANS ANY PERSON WHO OR WHICH HAS THE USE OR CONTROL,
OR THE RIGHT TO THE USE OR CONTROL OF ANY MEANS OF  TRANSPORTATION  USED
IN  TRANSPORTING  MOTOR  FUEL  INCLUDING  A  BARGE,  TRUCK  OR PIPELINE.
"IMPORTING TRANSPORTER" MEANS ANY TRANSPORTER WHO  OR  WHICH  TRANSPORTS
MOTOR FUEL IN THE STATE WHERE SUCH MOTOR FUEL IS BEING IMPORTED INTO THE
STATE  FOR  USE, DISTRIBUTION, STORAGE OR SALE IN THE STATE.  "EXPORTING
TRANSPORTER" MEANS ANY TRANSPORTER WHO OR WHICH TRANSPORTS MOTOR FUEL IN
THIS STATE WHERE SUCH MOTOR FUEL IS BEING EXPORTED FROM A POINT IN  THIS
STATE TO WITHOUT THIS STATE.

S. 7219--A                          6

  9.  "TERMINAL"  MEANS  A  MOTOR  FUEL  STORAGE FACILITY WITH A STORAGE
CAPACITY OF FIFTY THOUSAND GALLONS OR MORE EXCLUDING  SUCH  FACILITY  AT
WHICH  MOTOR FUEL IS STORED SOLELY FOR ITS RETAIL SALE AT SUCH FACILITY.
"TERMINAL OPERATOR" MEANS ANY PERSON WHO OR WHICH  HAS  THE  USE  OF  OR
CONTROL OVER, OR THE RIGHT TO SO USE OR CONTROL, A TERMINAL.
  10.  "DIESEL  MOTOR  FUEL"  SHALL MEAN NO. 1 DIESEL FUEL, NO. 2 DIESEL
FUEL, BIODIESEL, KEROSENE, FUEL OIL OR OTHER MIDDLE DISTILLATE AND  ALSO
MOTOR  FUEL SUITABLE FOR USE IN THE OPERATION OF AN ENGINE OF THE DIESEL
TYPE, EXCLUDING, HOWEVER, ANY PRODUCT  SPECIFICALLY  DESIGNATED  "NO.  4
DIESEL FUEL" AND NOT SUITABLE AS A FUEL USED IN THE OPERATION OF A MOTOR
VEHICLE ENGINE.
  11.  "PUBLIC  HIGHWAY" MEANS ANY PUBLIC HIGHWAY, STREET, AVENUE, ROAD,
PUBLIC PLACE, PUBLIC DRIVEWAY OR ANY OTHER PUBLIC WAY.
  12. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE.
  13. "SECRETARY" MEANS THE SECRETARY OF STATE.
  S 199-P. REGISTRATION OF DISTRIBUTORS. 1.  THE  DEPARTMENT,  UPON  THE
APPLICATION  OF  A  PERSON,  SHALL REGISTER SUCH PERSON AS A DISTRIBUTOR
UNDER THIS ARTICLE EXCEPT AS PROVIDED IN SUBDIVISIONS TWO  AND  FIVE  OF
THIS  SECTION.  THE APPLICATION SHALL BE IN A FORM AND CONTAIN SUCH DATA
AS THE DEPARTMENT SHALL PRESCRIBE.   NO PERSON,  UNLESS  SO  REGISTERED,
SHALL  IMPORT OR CAUSE ANY MOTOR FUEL TO BE IMPORTED INTO THE STATE, FOR
USE, DISTRIBUTION, STORAGE OR SALE WITHIN THE STATE  OR  SHALL  PRODUCE,
REFINE, MANUFACTURE OR COMPOUND MOTOR FUEL WITHIN THE STATE. NO DISTRIB-
UTOR,  UNLESS SO REGISTERED, SHALL MAKE ANY SALE, TRANSFER, USE OR OTHER
DISPOSITION OF MOTOR FUEL WITHIN THE STATE, EXCEPT A SALE, TRANSFER, USE
OR OTHER DISPOSITION, IF ANY, AS TO WHICH THE STATE CANNOT  IMPOSE  SUCH
CONDITION BY REASON OF THE UNITED STATES CONSTITUTION AND OF LAWS OF THE
UNITED STATES ENACTED PURSUANT THERETO.
  2.  WHERE  A  PERSON  FILES AN APPLICATION FOR REGISTRATION UNDER THIS
SECTION AND IN CONSIDERING SUCH APPLICATION  THE  DEPARTMENT  ASCERTAINS
THAT SUCH APPLICANT:
  (A)  HAS  BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY OTHER
STATE, OR A POLITICAL SUBDIVISION OF THIS STATE OR SUCH OTHER STATE,  OR
OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROS-
ECUTED  IN  THIS  STATE,  WOULD  CONSTITUTE  A SIMILAR CRIME, WITHIN THE
PRECEDING FIVE YEARS,
  (B) AN OFFICER, DIRECTOR OR PARTNER OF SUCH 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  CORPO-
RATION)  ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIREC-
TORS OR TRUSTEES, OR AN EMPLOYEE OR SHAREHOLDER OF SUCH  APPLICANT,  HAS
BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY OTHER STATE, OR A
POLITICAL  SUBDIVISION  OF  THIS  STATE  OR  SUCH OTHER STATE, OR OF THE
UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED  AND  PROSECUTED
IN  THIS  STATE,  WOULD CONSTITUTE A SIMILAR CRIME, WITHIN THE PRECEDING
FIVE YEARS,
  (C) SUCH APPLICANT, OR AN OFFICER, DIRECTOR OR PARTNER OF SUCH  APPLI-
CANT, 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 EMPLOYEE OR SHAREHOLDER OF SUCH APPLICANT, WHO
WAS AN OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON, OR  WHO  DIRECTLY
OR  INDIRECTLY  OWNED  MORE  THAN TEN PERCENT OF THE NUMBER OF SHARES OF
STOCK OF ANOTHER PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTI-
TLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR  TRUS-
TEES,  OR  WHO  WAS  AN EMPLOYEE OR SHAREHOLDER OF ANOTHER PERSON AT THE

S. 7219--A                          7

TIME SUCH OTHER PERSON WAS CONVICTED OF A CRIME  PROVIDED  FOR  IN  THIS
CHAPTER  OR  HAS  BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY
OTHER STATE, OR A POLITICAL SUBDIVISION OF  THIS  STATE  OR  SUCH  OTHER
STATE, OR OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED
AND  PROSECUTED  IN THIS STATE, WOULD CONSTITUTE A SIMILAR CRIME, WITHIN
THE PRECEDING FIVE YEARS, OR AT THE TIME THE REGISTRATION OF SUCH  OTHER
PERSON  WAS  CANCELLED OR SUSPENDED PURSUANT TO SUBDIVISION FOUR OF THIS
SECTION WITHIN THE PRECEDING FIVE YEARS,  OR  AT  THE  TIME  SUCH  OTHER
PERSON  COMMITTED  ANY  OF  THE  ACTS  OR  OMISSIONS  WHICH  ARE, OR WAS
CONVICTED AS, SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION  WITHIN  THE
PRECEDING  FIVE  YEARS,  PROVIDED,  HOWEVER,  WHERE AN APPLICANT OR SUCH
OFFICER, DIRECTOR, PARTNER, SHAREHOLDER OR EMPLOYEE  OF  SUCH  APPLICANT
WAS  ONLY  AN  EMPLOYEE OF ANOTHER PERSON, THE APPLICABLE EXAMINATION OF
SUCH OTHER PERSON SHALL BE LIMITED TO ACTS OR OMISSIONS WITH RESPECT  TO
MOTOR  FUEL AND THE APPLICABLE EXAMINATION OF PRIOR CRIMINAL CONVICTIONS
SHALL BE LIMITED TO THOSE WHICH RELATE TO MOTOR FUEL,
  (D) THE REGISTRATION OF SUCH APPLICANT OR OF AN OFFICER,  DIRECTOR  OR
PARTNER  OF  SUCH  APPLICANT,  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 EMPLOYEE OR SHARE-
HOLDER OF SUCH APPLICANT, HAS BEEN CANCELLED OR  SUSPENDED  PURSUANT  TO
SUBDIVISION FOUR OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS, OR
  (E) 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,
HAS  COMMITTED  ANY OF THE ACTS OR OMISSIONS WHICH ARE, OR WAS CONVICTED
AS, SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION WITHIN  THE  PRECEDING
FIVE YEARS, THE DEPARTMENT MAY REFUSE TO REGISTER SUCH APPLICANT.
  3. THE DEPARTMENT SHALL REQUIRE A DISTRIBUTOR TO FILE WITH THE DEPART-
MENT 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
DEPARTMENT  ON,  IN  SUCH AMOUNT AS THE DEPARTMENT MAY FIX, IN AN AMOUNT
DETERMINED IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY IT, TO
SECURE THE PAYMENT OF ANY SUMS DUE FROM  SUCH  DISTRIBUTOR  PURSUANT  TO
THIS  ARTICLE  AND  PURSUANT  TO ANY OTHER SECTION OF LAW, RULE OR REGU-
LATION WITH RESPECT TO MOTOR FUEL. THE  DEPARTMENT  SHALL  REQUIRE  THAT
SUCH  A  BOND  OR OTHER SECURITY BE FILED BEFORE A DISTRIBUTOR IS REGIS-
TERED, AND THE AMOUNT THEREOF MAY BE INCREASED AT ANY TIME WHEN  IN  ITS
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 SECRETARY AND MAY BE SOLD BY THE
DEPARTMENT IF IT BECOMES NECESSARY SO TO DO IN ORDER TO RECOVER ANY SUMS
DUE FROM SUCH DISTRIBUTOR PURSUANT TO THIS ARTICLE AND PURSUANT  TO  ANY
OTHER  SECTION OF LAW, RULE OR REGULATION WITH RESPECT TO SALES AND USES
OF MOTOR FUEL, BUT NO SUCH SALE SHALL BE HAD UNTIL AFTER SUCH  DISTRIBU-
TOR  SHALL  HAVE  HAD  OPPORTUNITY  TO  LITIGATE THE VALIDITY OF ANY SUM
ALLEGED DUE IF IT ELECTS SO TO DO. UPON ANY SUCH SALE  THE  SURPLUS,  IF
ANY,  ABOVE  THE  SUMS  DUE UNDER THIS ARTICLE AND PURSUANT TO ANY OTHER
SECTION OF LAW, RULE OR REGULATION WITH RESPECT TO  SALES  AND  USES  OF
MOTOR  FUEL  SHALL BE RETURNED TO SUCH DISTRIBUTOR. THE DEPARTMENT, WHEN
AUTHORIZED BY THE DISTRIBUTOR, SHALL FURNISH INFORMATION  REGARDING  THE

S. 7219--A                          8

DISTRIBUTOR'S REGISTRATION AND ANY OTHER INFORMATION WHICH THE DISTRIBU-
TOR AUTHORIZES IT TO DISCLOSE.
  4.  THE  REGISTRATION OF ANY DISTRIBUTOR MAY BE CANCELLED OR SUSPENDED
BY THE DEPARTMENT WHERE A REGISTRANT, OR AN  OFFICER,  DIRECTOR,  SHARE-
HOLDER,  EMPLOYEE  OR  PARTNER  OF  THE  REGISTRANT WHO AS SUCH OFFICER,
DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER IS UNDER A DUTY  TO  ACT  FOR
SUCH  REGISTRANT  OR  ANY SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE
THAN TEN PERCENT OF THE NUMBER OF SHARES  OF  STOCK  OF  THE  REGISTRANT
(WHERE SUCH REGISTRANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO
VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF SUCH REGISTRANT, FAILS
TO FILE A BOND OR OTHER SECURITY WHEN REQUIRED OR WHEN THE AMOUNT THERE-
OF  IS  INCREASED,  OR  FAILS  TO CONTINUE TO MAINTAIN IN FULL FORCE AND
EFFECT AT ALL TIMES THE REQUIRED BOND OR OTHER SECURITY FILED  WITH  THE
DEPARTMENT,  OR FAILS TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTI-
CLE OR ANY OTHER SECTION OF LAW, RULE  OR  REGULATION  WITH  RESPECT  TO
MOTOR  FUEL, OR KNOWINGLY AIDS AND ABETS ANOTHER PERSON IN VIOLATING ANY
OF THE PROVISIONS OF SUCH ARTICLES OR OF ANY  SUCH  RULE  OR  REGULATION
WITH RESPECT TO MOTOR FUEL, OR TRANSFERS ITS REGISTRATION AS A DISTRIBU-
TOR WITHOUT THE PRIOR WRITTEN APPROVAL OF THE DEPARTMENT. A REGISTRATION
MAY  ALSO  BE CANCELLED OR SUSPENDED IF THE DEPARTMENT DETERMINES THAT A
REGISTRANT OR AN OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER  OF
THE  REGISTRANT  WHO AS SUCH OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR
PARTNER IS UNDER A DUTY TO ACT FOR SUCH REGISTRANT  OR  ANY  SHAREHOLDER
DIRECTLY  OR  INDIRECTLY  OWNING  MORE THAN TEN PERCENT OF THE NUMBER OF
SHARES OF STOCK OF THE REGISTRANT (WHERE SUCH  REGISTRANT  IS  A  CORPO-
RATION)  ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIREC-
TORS OR TRUSTEES OF SUCH REGISTRANT:
  (A) COMMITS FRAUD OR DECEIT IN HIS OPERATIONS AS A DISTRIBUTOR OR  HAS
COMMITTED FRAUD OR DECEIT IN PROCURING HIS REGISTRATION;
  (B)  HAS  BEEN  CONVICTED IN A COURT OF COMPETENT JURISDICTION, EITHER
WITHIN OR WITHOUT THE STATE, OF A FELONY, WITHIN THE MEANING OF SUBDIVI-
SION EIGHT OF THIS SECTION, BEARING ON  SUCH  DISTRIBUTOR'S  DUTIES  AND
OBLIGATIONS UNDER THIS CHAPTER;
  (C)  HAS KNOWINGLY AIDED AND ABETTED A PERSON WHO IS NOT REGISTERED AS
A DISTRIBUTOR IN THE IMPORTATION, PRODUCTION, REFINING,  MANUFACTURE  OR
COMPOUNDING OF MOTOR FUEL;
  (D)  HAS IMPERSONATED ANY PERSON REPRESENTED TO BE A DISTRIBUTOR UNDER
THIS ARTICLE BUT NOT IN FACT REGISTERED UNDER THIS SECTION; OR
  (E) HAS KNOWINGLY AIDED AND ABETTED THE  DISTRIBUTION  OF  MOTOR  FUEL
IMPORTED,  CAUSED  TO  BE  IMPORTED,  PRODUCED, REFINED, MANUFACTURED OR
COMPOUNDED BY A DISTRIBUTOR WHO IS NOT REGISTERED BY THE DEPARTMENT.
  A REGISTRATION MAY ALSO BE CANCELLED OR SUSPENDED  IF  THE  DEPARTMENT
DETERMINES  THAT  A  REGISTRANT  OR  AN  OFFICER, DIRECTOR, SHAREHOLDER,
EMPLOYEE OR PARTNER OF THE REGISTRANT WHO  AS  SUCH  OFFICER,  DIRECTOR,
SHAREHOLDER,  EMPLOYEE OR PARTNER IS UNDER A DUTY TO ACT FOR SUCH REGIS-
TRANT OR ANY SHAREHOLDER DIRECTLY OR INDIRECTLY  OWNING  MORE  THAN  TEN
PERCENT  OF  THE NUMBER OF SHARES OF STOCK OF THE REGISTRANT (WHERE SUCH
REGISTRANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF  TO  VOTE  FOR
THE  ELECTION  OF DIRECTORS OR TRUSTEES OF SUCH REGISTRANT, WAS AN OFFI-
CER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER OF ANOTHER PERSON WHO AS
SUCH OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR  PARTNER  WAS  UNDER  A
DUTY TO ACT FOR SUCH OTHER PERSON OR WAS A SHAREHOLDER DIRECTLY OR INDI-
RECTLY  OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF
SUCH OTHER PERSON (WHERE SUCH OTHER PERSON IS A  CORPORATION)  ENTITLING
THE  HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF
SUCH OTHER PERSON AT THE TIME SUCH OTHER PERSON  COMMITTED  ANY  OF  THE

S. 7219--A                          9

ACTS  OR  OMISSIONS  WHICH  ARE,  OR WAS CONVICTED AS, SPECIFIED IN THIS
SUBDIVISION WITHIN THE PRECEDING FIVE YEARS.
  5.  A  REGISTRATION  SHALL  NOT BE CANCELLED OR SUSPENDED NOR SHALL AN
APPLICATION FOR REGISTRATION BE REFUSED UNLESS THE REGISTRANT OR  APPLI-
CANT  HAS  HAD  AN OPPORTUNITY FOR A HEARING, PROVIDED, HOWEVER, THAT AN
APPLICATION FOR REGISTRATION MAY BE  DENIED  WITHOUT  A  PRIOR  HEARING.
PROVIDED,  A  REGISTRATION MAY ALSO BE CANCELLED OR SUSPENDED PRIOR TO A
HEARING FOR THE FAILURE TO CONTINUE TO MAINTAIN IN FULL FORCE AND EFFECT
AT ALL TIMES THE BOND OR  OTHER  SECURITY  FILED  WITH  THE  DEPARTMENT.
PROVIDED,  HOWEVER,  IF  A SURETY BOND IS CANCELLED PRIOR TO EXPIRATION,
THE DEPARTMENT, AFTER CONSIDERING ALL THE  RELEVANT  CIRCUMSTANCES,  MAY
MAKE  SUCH  OTHER ARRANGEMENTS AND REQUIRE THE FILING OF SUCH OTHER BOND
OR OTHER SECURITY  AS  THE  DEPARTMENT  DEEMS  APPROPRIATE.    PROVIDED,
FURTHER, A REGISTRATION MAY BE CANCELLED OR SUSPENDED PRIOR TO A HEARING
FOR THE TRANSFER OF SUCH REGISTRATION WITHOUT THE PRIOR WRITTEN APPROVAL
OF  THE  DEPARTMENT.  A DISTRIBUTOR SHALL IMMEDIATELY INFORM THE DEPART-
MENT, IN WRITING, OF ANY CHANGE IN ITS ADDRESS AND, IF  THE  DISTRIBUTOR
IS  A  CORPORATION  OR  PARTNERSHIP,  THE  DISTRIBUTOR SHALL IMMEDIATELY
INFORM THE DEPARTMENT, IN WRITING, OF ANY CHANGE IN ITS OFFICERS, DIREC-
TORS OR PARTNERS OR THEIR RESIDENCE ADDRESSES AS SHOWN IN  ITS  APPLICA-
TION FOR REGISTRATION.
  6. (A) A NOTICE OF PROPOSED CANCELLATION OR SUSPENSION OF REGISTRATION
OR  REFUSAL TO REGISTER SHALL BE GIVEN TO THE PERSON REGISTERED PURSUANT
TO THIS ARTICLE OR TO A PERSON APPLYING FOR SUCH  REGISTRATION.  IN  THE
CASE  OF  A PERSON APPLYING TO REGISTER, A NOTICE OF PROPOSED REFUSAL TO
REGISTER SHALL BE ISSUED PROMPTLY AFTER APPLICATION FOR REGISTRATION  IS
RECEIVED  BY THE DEPARTMENT. UPON TIMELY APPLICATION THEREFOR, A HEARING
SHALL BE SCHEDULED BEFORE AN ADMINISTRATIVE LAW JUDGE, AND WITHIN  THREE
MONTHS  FROM SUCH APPLICATION FOR HEARING (DETERMINED WITH REGARD TO ANY
POSTPONEMENTS OF ANY SCHEDULED HEARING OR CONFERENCE OR OTHER DELAY MADE
AT THE REQUEST OF THE APPLICANT)  THE  ADMINISTRATIVE  LAW  JUDGE  SHALL
RENDER  A  DETERMINATION  EITHER  UPHOLDING  THE DEPARTMENT'S REFUSAL TO
REGISTER OR ORDERING THE  DEPARTMENT  TO  REGISTER  THE  APPLICANT.  THE
ACTION  OF  THE  DEPARTMENT  AND  THE DECISION OF THE ADMINISTRATIVE LAW
JUDGE SHALL BE SUBJECT TO REVIEW BY THE  SUPREME  COURT  IN  THE  MANNER
PROVIDED  IN  ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
THE APPLICANT SHALL NOT BE REGISTERED UNTIL THERE HAS BEEN FILED A  BOND
OR OTHER SECURITY IN THE REQUIRED AMOUNT.
  (B)  ALL  OF SUCH NOTICES OF PROPOSED CANCELLATION OR SUSPENSION OR OF
PROPOSED REFUSAL TO REGISTER SHALL  CONTAIN  A  STATEMENT  ADVISING  THE
PERSON TO WHOM IT IS ISSUED THAT THE CANCELLATION, SUSPENSION OR REFUSAL
TO  REGISTER  MAY  BE  CHALLENGED THROUGH A HEARING PROCESS AND THAT THE
PETITION FOR SUCH CHALLENGE MUST BE FILED  WITH  THE  DEPARTMENT  WITHIN
NINETY  DAYS  AFTER  THE  GIVING OF SUCH NOTICE. WHERE A REGISTRATION IS
CANCELLED OR SUSPENDED PRIOR TO A HEARING, THE CANCELLATION  OR  SUSPEN-
SION MAY BE CHALLENGED THROUGH THE HEARING PROCESS PROVIDED THE PETITION
FOR  SUCH  CHALLENGE  IS  FILED  WITHIN  NINETY DAYS AFTER THE GIVING OF
NOTICE OF SUCH CANCELLATION OR SUSPENSION.
  (C) NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY:
  (I) IN THE EVENT THAT THE DEPARTMENT DETERMINES THAT  AN  INCREASE  IN
THE  AMOUNT  OF  THE  BOND  OR  OTHER  SECURITY FILED BY A REGISTRANT IS
REQUIRED TO SECURE THE LIABILITY OF SUCH REGISTRANT, SUCH BOND  INCREASE
OR OTHER SECURITY INCREASE MUST BE FILED BY SUCH REGISTRANT WITHIN THIR-
TY  DAYS  FROM  THE DAY THE NOTICE AND DEMAND THEREFOR HAS BEEN GIVEN BY
THE DEPARTMENT. IF THE REGISTRANT FAILS TO (A) FILE SUCH INCREASE IN THE
AMOUNT OF BOND OR OTHER SECURITY WITHIN SUCH PERIOD OR (B)  MAKE  TIMELY

S. 7219--A                         10

APPLICATION  FOR  A HEARING WITH PARTICULAR RESPECT TO THE AMOUNT OF THE
INCREASE OF SUCH BOND OR OTHER SECURITY, THE DEPARTMENT SHALL CANCEL  OR
SUSPEND THE REGISTRATION OF SUCH REGISTRANT.
  (II)  THE  REGISTRANT  MAY  APPLY  TO  THE DEPARTMENT FOR A HEARING TO
REVIEW AN INCREASE IN THE AMOUNT OF THE BOND OR OTHER SECURITY  REQUIRED
TO  BE FILED BY MAKING APPLICATION THEREFOR WITHIN SEVEN DAYS OF THE DAY
THAT THE NOTICE AND DEMAND FOR AN INCREASE IS GIVEN BY  THE  DEPARTMENT,
PROVIDED, THE DEPARTMENT MAY, BY REGULATION, FOR THE CAUSES STATED THER-
EIN,  EXTEND SUCH PERIOD TO A PERIOD NOT EXCEEDING FIFTEEN DAYS FROM THE
DAY SUCH NOTICE AND DEMAND IS GIVEN. IF THE  REGISTRANT  TIMELY  APPLIES
FOR A HEARING TO REVIEW THE INCREASE, SUCH HEARING SHALL BE HELD, UNLESS
EXTENDED  BY  THE DEPARTMENT FOR GOOD CAUSE, NO LESS THAN SEVEN DAYS AND
NO MORE THAN TEN DAYS AFTER THE APPLICATION FOR A HEARING IS RECEIVED BY
THE DEPARTMENT.  WITHIN FIFTEEN DAYS OF THE RECEIPT OF  THE  APPLICATION
FOR A HEARING, UNLESS EXTENDED BY THE DEPARTMENT, THE ADMINISTRATIVE LAW
JUDGE  SHALL  RENDER A DETERMINATION WITH RESPECT TO THE INCREASE IN THE
AMOUNT OF THE BOND OR OTHER SECURITY AND, IF THE AMOUNT OF SUCH BOND  OR
OTHER  SECURITY  IS  DETERMINED  TO BE DUE, SUCH INCREASE SHALL BE FILED
WITHIN SEVEN DAYS FROM THE DAY THE ADMINISTRATIVE LAW JUDGE GIVES NOTICE
OF THE DETERMINATION, OR, IF LATER, THIRTY DAYS FROM THE DAY THE  NOTICE
AND  DEMAND  FOR THE INCREASE HAD BEEN GIVEN BY THE DEPARTMENT. NOTWITH-
STANDING THAT THE REGISTRANT TAKES EXCEPTION TO THE  ADMINISTRATIVE  LAW
JUDGE'S  DETERMINATION  THAT AN INCREASED BOND OR OTHER SECURITY IS DUE,
IF THE INCREASED BOND OR OTHER SECURITY IS NOT FILED WITHIN  SUCH  TIME,
THE  DEPARTMENT  SHALL  CANCEL OR SUSPEND THE REGISTRATION OF THE REGIS-
TRANT.  WHERE THE ADMINISTRATIVE LAW JUDGE DETERMINES THAT AN  INCREASED
BOND OR OTHER SECURITY IS NOT DUE BUT SUCH DETERMINATION IS REVERSED, IF
THE INCREASED BOND OR OTHER SECURITY IS NOT FILED WITHIN SEVEN DAYS FROM
THE  DAY  THE DEPARTMENT GIVES NOTICE OF THE DECISION OF THE ADMINISTRA-
TIVE LAW JUDGE NOTWITHSTANDING ANY JUDICIAL REVIEW OF SUCH DECISION, THE
DEPARTMENT SHALL CANCEL OR SUSPEND THE REGISTRATION OF THE REGISTRANT.
  7. (A) WHENEVER EVIDENCE IS FURNISHED BY THE SECRETARY TO ANY  JUSTICE
OF  THE  SUPREME COURT, IN COURT OR AT CHAMBERS, SHOWING THAT ANY PERSON
NOT REGISTERED AS A DISTRIBUTOR AS REQUIRED BY THIS ARTICLE HAS IMPORTED
MOTOR FUEL OR DIESEL MOTOR FUEL INTO THIS STATE OR CAUSED MOTOR FUEL  OR
DIESEL  MOTOR  FUEL  TO  BE  IMPORTED  INTO  THIS STATE OR HAS PRODUCED,
REFINED, MANUFACTURED OR COMPOUNDED MOTOR FUEL  OR  DIESEL  MOTOR  FUEL,
SUCH  JUSTICE MAY MAKE A TEMPORARY ORDER WITHOUT NOTICE PROHIBITING SUCH
PERSON AND HIS AGENTS FROM SELLING, TRANSFERRING OR OTHERWISE  DISPOSING
OF  ANY  SUCH FUEL OR ANY FUEL AND ALSO PROHIBITING ALL OTHER PERSONS IN
POSSESSION OF OR HAVING CONTROL OVER THE SAME FROM  SELLING,  RELEASING,
TRANSFERRING  OR  OTHERWISE  DISPOSING OF ANY MOTOR FUEL OR DIESEL MOTOR
FUEL IMPORTED, PRODUCED,  REFINED,  MANUFACTURED,  COMPOUNDED,  SOLD  OR
TRANSFERRED  BY  SUCH  PERSON  NOT SO REGISTERED PENDING A HEARING FOR A
PRELIMINARY INJUNCTION.
  (B) UPON GRANTING A TEMPORARY ORDER, THE COURT  SHALL  DIRECT  THAT  A
HEARING  BE  HELD  AT  THE  EARLIEST  POSSIBLE TIME UPON SUCH NOTICE AND
SERVICE AS THE COURT SHALL DIRECT AND AT THE SAME TIME, IF  SUCH  ACTION
HAS  NOT  YET  BEEN COMMENCED, THE SECRETARY SHALL COMMENCE AN ACTION IN
SUPREME COURT FOR A PERMANENT INJUNCTION AND FORFEITURE OF MOTOR FUEL OR
DIESEL MOTOR FUEL PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION.  WHERE,
AFTER SUCH OPPORTUNITY FOR A HEARING, THE COURT DETERMINES THAT THERE IS
A  SUBSTANTIAL  PROBABILITY  THAT  THE  SECRETARY  WILL  PREVAIL IN SUCH
ACTION, THE COURT SHALL GRANT A PRELIMINARY INJUNCTION  RESTRAINING  THE
SALE,  RELEASE,  TRANSFER  OR  OTHER  DISPOSITION OF FUEL SUBJECT TO THE
TEMPORARY ORDER.

S. 7219--A                         11

  (C) (I) IF IT IS ESTABLISHED BY CLEAR  AND  CONVINCING  EVIDENCE  THAT
MOTOR  FUEL  OR  DIESEL  MOTOR FUEL WAS IMPORTED, CAUSED TO BE IMPORTED,
PRODUCED, REFINED, MANUFACTURED OR COMPOUNDED BY ANY PERSON  NOT  REGIS-
TERED  AS  A  DISTRIBUTOR  AS  REQUIRED BY THIS ARTICLE, THE COURT SHALL
GRANT  A  JUDGMENT  (A) PERMANENTLY ENJOINING SUCH PERSON AND HIS AGENTS
FROM SELLING, TRANSFERRING OR OTHERWISE DISPOSING OF ANY  SUCH  FUEL  OR
ANY  FUEL WITHIN THIS STATE AND (B) DECLARING THE FORFEITURE OF ANY FUEL
THAT WAS SO IMPORTED, CAUSED TO BE IMPORTED, PRODUCED, REFINED, MANUFAC-
TURED, OR COMPOUNDED BY SUCH PERSON.
  (II) WITH RESPECT  TO  MOTOR  FUEL  OR  DIESEL  MOTOR  FUEL  THAT  WAS
IMPORTED,  CAUSED  TO  BE  IMPORTED,  PRODUCED, REFINED, MANUFACTURED OR
COMPOUNDED, BY A PERSON NOT REGISTERED AS A DISTRIBUTOR AS  REQUIRED  BY
THIS  ARTICLE OR THAT WAS UNLAWFULLY SOLD OR TRANSFERRED BY SUCH PERSON,
IF IT IS ESTABLISHED BY CLEAR AND CONVINCING  EVIDENCE  THAT  ANY  OTHER
PERSON  IN  POSSESSION  OF  OR  HAVING  CONTROL OVER SUCH FUEL WAS NOT A
PURCHASER OR TRANSFEREE IN GOOD FAITH OF SUCH FUEL WITH RESPECT  TO  THE
FACT  THAT  SUCH  FUEL WAS SO IMPORTED, CAUSED TO BE IMPORTED, PRODUCED,
REFINED, MANUFACTURED, OR COMPOUNDED BY A PERSON  NOT  REGISTERED  AS  A
DISTRIBUTOR  AS REQUIRED BY THIS ARTICLE OR THAT SUCH FUEL WAS SO UNLAW-
FULLY SOLD OR TRANSFERRED BY SUCH PERSON, THE COURT SHALL GRANT A  JUDG-
MENT  (A)  PERMANENTLY ENJOINING SUCH OTHER PERSON AND HIS OR HER AGENTS
FROM SELLING, RELEASING, TRANSFERRING OR OTHERWISE DISPOSING OF ANY SUCH
FUEL AND (B) DECLARING THE FORFEITURE OF SUCH FUEL IN THE POSSESSION  OR
UNDER THE CONTROL OF SUCH OTHER PERSON.
  (D)  THE  SECRETARY MAY, AT ANY TIME SUBSEQUENT TO THE GRANTING OF THE
TEMPORARY ORDER PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, IN HIS OR
HER SOLE DISCRETION CONSENT TO A SALE OF MOTOR FUEL OR DIESEL MOTOR FUEL
SUBJECT TO SUCH TEMPORARY ORDER WHICH IS IN THE POSSESSION OR UNDER  THE
CONTROL OF A PERSON OTHER THAN THE PERSON OR THE AGENT OF THE PERSON WHO
IMPORTED,  CAUSED  TO  BE  IMPORTED,  PRODUCED,  REFINED,  MANUFACTURED,
COMPOUNDED OR UNLAWFULLY SOLD OR TRANSFERRED SUCH FUEL. AS  A  CONDITION
OF  GRANTING  PERMISSION  TO  A  SALE OF MOTOR FUEL OR DIESEL MOTOR FUEL
PURSUANT TO THIS SUBDIVISION, THE SECRETARY SHALL REQUIRE THE PAYMENT OF
ALL FEES, PENALTIES AND INTEREST IMPOSED BY AND PURSUANT TO THE AUTHORI-
TY OF THIS CHAPTER WITH RESPECT TO SUCH FUEL.
  (E) (I) AT ANY TIME DURING  THE  PENDENCY  OF  AN  ACTION  UNDER  THIS
SECTION,  THE  MOTOR  FUEL  OR DIESEL MOTOR FUEL SUBJECT TO A TEMPORARY,
PRELIMINARY OR PERMANENT ORDER HEREUNDER MAY BE RELEASED FROM THE  SCOPE
OF  SUCH  ORDER  IF THERE IS GIVEN AN UNDERTAKING, IN AN AMOUNT EQUAL TO
THE MARKET VALUE OF SUCH FUEL, TO THE EFFECT THAT THERE WILL BE PAID  TO
THE  DEPARTMENT THE AMOUNT OF THE MARKET VALUE OF SUCH FUEL IN THE EVENT
THAT SUCH FUEL IS ADJUDGED FORFEITED.
  (II) ANY PERSON ENJOINED BY A TEMPORARY ORDER OR A PRELIMINARY INJUNC-
TION ISSUED PURSUANT TO THIS  SUBDIVISION  MAY  MOVE  AT  ANY  TIME,  ON
NOTICE, TO VACATE OR MODIFY IT.
  (F)  THE  PROCEDURES OF THE CIVIL PRACTICE LAW AND RULES APPLICABLE TO
TEMPORARY RESTRAINING  ORDERS,  PRELIMINARY  INJUNCTIONS  AND  PERMANENT
INJUNCTIONS NOT INCONSISTENT WITH THIS SUBDIVISION SHALL APPLY TO TEMPO-
RARY  ORDERS,  PRELIMINARY  INJUNCTIONS AND PERMANENT INJUNCTIONS ISSUED
UNDER THIS SUBDIVISION AND ANY PROVISION OF THIS  SUBDIVISION  WHICH  IS
NOT  IN ACCORD WITH THE CONSTITUTIONAL MANDATE OF SUCH PROCEDURES OF THE
CIVIL PRACTICE LAW AND RULES SHALL BE DEEMED TO BE MODIFIED AS NECESSARY
TO ACCORD WITH SUCH A MANDATE. THE PROCEDURAL PROVISIONS  SET  FORTH  IN
PARAGRAPH  THREE  OF  SUBDIVISION  (D) AND IN SUBDIVISION (J) OF SECTION
EIGHTEEN HUNDRED FORTY-EIGHT OF THE TAX LAW SHALL APPLY TO  THE  FORFEI-
TURE PROCEEDINGS UNDER THIS SUBDIVISION AND, IN RESPECT TO A DECLARATION

S. 7219--A                         12

OF  FORFEITURE UNDER THIS SUBDIVISION, THE COURT SHALL DIRECT THE SECRE-
TARY TO SELL OR OTHERWISE DISPOSE OF SUCH FORFEITED MOTOR FUEL OR DIESEL
MOTOR FUEL ON SUCH CONDITIONS THE SECRETARY DEEMS MOST ADVANTAGEOUS  AND
JUST  UNDER  THE  CIRCUMSTANCES.  THE SECRETARY SHALL NOT BE REQUIRED TO
FILE ANY UNDERTAKING IN CONNECTION  WITH  AN  ACTION  PURSUANT  TO  THIS
SUBDIVISION.
  8.  (A)  FOR  THE PURPOSES OF THIS SECTION, IN DETERMINING WHETHER ANY
PERSON HAS BEEN CONVICTED OF A FELONY, THE PROVISIONS OF  THIS  SUBDIVI-
SION  SHALL  APPLY;  PROVIDED,  HOWEVER IF ANY SUCH CONVICTION BE SUBSE-
QUENTLY SET ASIDE OR REVERSED UPON APPEAL AND THE ACCUSED  ACQUITTED  OR
DISCHARGED,  THE REGISTRATION WHICH HAS BEEN CANCELLED OR SUSPENDED AS A
RESULT OF SUCH CONVICTION SHALL BE RESTORED.
  (B) A CONVICTION OF A FELONY SHALL INCLUDE THE CONVICTION OF A  FELONY
BY  ANY  COURT  IN THIS STATE OR BY ANY COURT OF THE UNITED STATES OR BY
ANY COURT OF ANY OTHER STATE OF THE UNITED  STATES;  PROVIDED,  HOWEVER,
THAT  IF  A  CRIME  OF  WHICH  A PERSON IS CONVICTED BY ANY COURT OF THE
UNITED STATES OR ANY OTHER STATE IS A  FELONY  IN  THE  JURISDICTION  IN
WHICH  THE  CONVICTION  IS  HAD  BUT IS NOT A FELONY IN THE STATE OF NEW
YORK, THEN THE CONVICTION SHALL NOT BE DEEMED A CONVICTION OF  A  FELONY
FOR  THE  PURPOSE  OF THIS ARTICLE. IN THE EVENT THAT A CRIME OF WHICH A
PERSON IS CONVICTED BY ANY COURT OF THE UNITED STATES OR BY ANY COURT OF
ANY OTHER STATE IS NOT  A  FELONY  IN  THE  JURISDICTION  IN  WHICH  THE
CONVICTION  IS  HAD  BUT  IS A FELONY IN THE STATE OF NEW YORK, THEN THE
CONVICTION SHALL BE DEEMED A CONVICTION OF A FELONY FOR THE PURPOSES  OF
THIS ARTICLE.
  (C)  IF  A PERSON CONVICTED OF A FELONY OR CRIME DEEMED HEREBY TO BE A
FELONY IS SUBSEQUENTLY PARDONED BY THE GOVERNOR OF THE STATE WHERE  SUCH
CONVICTION  WAS  HAD, OR BY THE PRESIDENT OF THE UNITED STATES, OR SHALL
RECEIVE A CERTIFICATE OF RELIEF FROM DISABILITIES OR  A  CERTIFICATE  OF
GOOD  CONDUCT PURSUANT TO ARTICLE TWENTY-THREE OF THE CORRECTION LAW FOR
THE PURPOSE OF REMOVING THE DISABILITY UNDER  THIS  SECTION  BECAUSE  OF
SUCH  CONVICTION,  THE DEPARTMENT MAY, IN ITS DISCRETION, ON APPLICATION
OF SUCH PERSON AND COMPLIANCE WITH SUBDIVISION TWO OF THIS SECTION,  AND
ON THE SUBMISSION TO IT OF SATISFACTORY EVIDENCE OF GOOD MORAL CHARACTER
AND  SUITABILITY, AGAIN REGISTER SUCH PERSON AS A DISTRIBUTOR UNDER THIS
ARTICLE.
  9. (A) THE REGISTRATION GRANTED TO A  DISTRIBUTOR  BY  THE  DEPARTMENT
SHALL  BE  PERSONAL TO THE PERSON TO WHOM IT IS GRANTED. THE TRANSFER OF
SUCH REGISTRATION WITHOUT THE PRIOR WRITTEN APPROVAL OF  THE  DEPARTMENT
IS  INVALID  AND SUCH TRANSFER WITHOUT APPROVAL SHALL BE GROUNDS FOR THE
IMMEDIATE CANCELLATION OR SUSPENSION OF THE REGISTRATION OF  THE  REGIS-
TRANT.  THE  DEPARTMENT SHALL ESTABLISH BY RULE OR REGULATION A SPECIFIC
PROCEDURE FOR THE REVIEW OF AN APPLICATION  FOR  REGISTRATION  IN  THESE
INSTANCES  WHERE THERE HAS BEEN A PROPOSED TRANSFER OF REGISTRATION, AND
THE DEPARTMENT IN MAKING ITS DETERMINATION WITH RESPECT TO SUCH APPROVAL
SHALL REVIEW SUCH APPLICATION IN SUCH INSTANCE AS ANY OTHER  APPLICATION
FOR  REGISTRATION UNDER THIS SECTION AND SHALL MAKE ITS DETERMINATION IN
ACCORDANCE WITH  THE  CRITERIA  SET  FORTH  IN  THIS  SECTION.  PROVIDED
FURTHER, THE DEPARTMENT SHALL ISSUE A DETERMINATION WITH RESPECT TO SUCH
APPLICATION  WHERE  THERE  HAS  BEEN A PROPOSED TRANSFER OF REGISTRATION
WITHIN SEVENTY-FIVE DAYS AFTER THE DAY OF  THE  RECEIPT  OF  A  PROPERLY
COMPLETED APPLICATION CONTAINING SUCH INFORMATION AS THE SAID DEPARTMENT
MAY  REQUIRE.  IF  THE  DEPARTMENT FAILS TO ISSUE A DETERMINATION WITHIN
SUCH TIME, THE DEPARTMENT SHALL BE REQUIRED TO  REGISTER  SUCH  PROPOSED
TRANSFEREE.

S. 7219--A                         13

  (B)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION, A REGISTRATION SHALL BE
CONSIDERED TO BE TRANSFERRED WHERE, AMONG OTHER  THINGS,  THERE  IS  ANY
ADDITION  OR SUBSTITUTION OF A PARTNER OF THE REGISTRANT OR THE ACQUISI-
TION BY ANY PERSON OF SUCH SHARES OF STOCK OF THE REGISTRANT (WHERE SUCH
REGISTRANT  IS  A  CORPORATION) SO THAT SUCH PERSON BECOMES THE OWNER OF
MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK  OF  SUCH  REGIS-
TRANT ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS
OR  TRUSTEES.    PROVIDED,  HOWEVER,  WHERE STOCK OF THE REGISTRANT OR A
PARTNERSHIP INTEREST IN THE REGISTRANT OR, WHERE  THE  REGISTRANT  IS  A
SOLE PROPRIETORSHIP, THE INTEREST OF THE DECEDENT THEREIN ALONG WITH THE
REGISTRATION,  IS  TRANSFERRED PURSUANT TO BEQUEST OR INHERITANCE TO (I)
AN ANCESTOR OF THE DECEDENT, (II) THE SPOUSE OF THE  DECEDENT,  (III)  A
LINEAL  DESCENDENT  OF THE DECEDENT, OF THE DESCENDENT'S SPOUSE, OR OF A
PARENT OF THE DECEDENT, OR (IV) THE  SPOUSE  OF  ANY  LINEAL  DESCENDENT
DESCRIBED  IN  SUBPARAGRAPH (III) OF THIS PARAGRAPH, SUCH TRANSFER SHALL
NOT, IN AND OF  ITSELF,  BE  GROUNDS  FOR  CANCELLATION  OR  SUSPENSION.
PROVIDED,  HOWEVER,  WITHIN  NINETY DAYS OF THE DEATH OF THE DECEDENT IN
SUCH INSTANCE,  THE  REGISTRANT,  THE  PERSONAL  REPRESENTATIVE  OF  THE
DECEDENT'S  ESTATE  OR SUCH PERSON DESCRIBED IN SUBPARAGRAPHS (I), (II),
(III) OR (IV) OF THIS PARAGRAPH MUST SUBMIT A  REVISED  APPLICATION  FOR
REGISTRATION AS A DISTRIBUTOR. THE DEPARTMENT MAY THEN CANCEL OR SUSPEND
THE  REGISTRATION BECAUSE OF THE EXISTENCE OF GROUNDS TO DO SO SPECIFIED
IN THIS SECTION FOR REFUSAL OR DENIAL OF AN APPLICATION FOR REGISTRATION
OR FOR CANCELLATION OR SUSPENSION OF  A  REGISTRATION.  THE  FAILURE  TO
SUBMIT  A  REVISED  APPLICATION  FOR REGISTRATION WITHIN SUCH NINETY DAY
PERIOD SHALL BE GROUNDS FOR IMMEDIATE CANCELLATION OR SUSPENSION OF  THE
REGISTRATION.
  10.  FOR  PURPOSES  OF THIS SECTION, WHERE REFERENCE IS MADE TO OWNER-
SHIP, DIRECTLY OR INDIRECTLY, OF MORE THAN TEN PERCENT OF THE SHARES  OF
STOCK OF THE APPLICANT OR ANOTHER PERSON ENTITLING THE HOLDER THEREOF TO
VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, IN THE CASE OF AN APPLI-
CANT  OR  ANOTHER  PERSON  WHICH  AT THE RELEVANT TIME HAS FOUR OR FEWER
SHAREHOLDERS HOLDING SHARES ENTITLING THE HOLDERS THEREOF  TO  VOTE  FOR
THE ELECTION OF DIRECTORS OR TRUSTEES, TWENTY-FIVE PERCENT OR MORE SHALL
BE SUBSTITUTED AS THE APPLICABLE PERCENTAGE IN SUCH REFERENCES TO OWNER-
SHIP, DIRECTLY OR INDIRECTLY, OF VOTING STOCK.
  S  199-Q. LICENSING OF IMPORTING TRANSPORTERS. 1. THE DEPARTMENT, UPON
THE APPLICATION OF A PERSON WHO TRANSPORTS  MOTOR  FUEL,  SHALL  LICENSE
SUCH PERSON AS AN IMPORTING TRANSPORTER OR EXPORTING TRANSPORTER, AS THE
CASE  MAY  BE, UNDER THIS ARTICLE EXCEPT AS PROVIDED IN SUBDIVISIONS TWO
AND FIVE OF THIS SECTION. THE APPLICATION SHALL BE IN A FORM AND CONTAIN
SUCH DATA AS THE DEPARTMENT SHALL PRESCRIBE. NO PERSON, UNLESS  LICENSED
AS  AN  IMPORTING  TRANSPORTER,  SHALL TRANSPORT MOTOR FUEL IN THE STATE
WHERE SUCH MOTOR FUEL IS BEING IMPORTED INTO THE STATE FOR USE, DISTRIB-
UTION, STORAGE OR SALE IN THE STATE. NO PERSON, UNLESS  LICENSED  AS  AN
EXPORTING  TRANSPORTER,  SHALL  TRANSPORT MOTOR FUEL IN THIS STATE WHERE
SUCH MOTOR FUEL IS BEING EXPORTED FROM A POINT IN THIS STATE TO  WITHOUT
THIS STATE.
  2.  WHERE  A  PERSON  FILES  AN  APPLICATION  FOR LICENSING UNDER THIS
SECTION AND IN CONSIDERING SUCH APPLICATION  THE  DEPARTMENT  ASCERTAINS
THAT:
  (A)  HAS  BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY OTHER
STATE, OR A POLITICAL SUBDIVISION OF THIS STATE OR SUCH OTHER STATE,  OR
OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROS-
ECUTED  IN  THIS  STATE,  WOULD  CONSTITUTE  A SIMILAR CRIME, WITHIN THE
PRECEDING FIVE YEARS,

S. 7219--A                         14

  (B) AN OFFICER, DIRECTOR OR PARTNER OF SUCH 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  CORPO-
RATION)  ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIREC-
TORS  OR  TRUSTEES, OR AN EMPLOYEE OR SHAREHOLDER OF SUCH APPLICANT, HAS
BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY OTHER STATE, OR A
POLITICAL SUBDIVISION OF THIS STATE OR  SUCH  OTHER  STATE,  OR  OF  THE
UNITED  STATES  OF A CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROSECUTED
IN THIS STATE, WOULD CONSTITUTE A SIMILAR CRIME,  WITHIN  THE  PRECEDING
FIVE YEARS,
  (C)  SUCH APPLICANT, OR AN OFFICER, DIRECTOR OR PARTNER OF SUCH APPLI-
CANT, 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 EMPLOYEE OR SHAREHOLDER OF SUCH APPLICANT, WHO
WAS  AN  OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON, OR WHO DIRECTLY
OR INDIRECTLY OWNED MORE THAN TEN PERCENT OF THE  NUMBER  OF  SHARES  OF
STOCK OF ANOTHER PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTI-
TLING  THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUS-
TEES, OR WHO WAS AN EMPLOYEE OR SHAREHOLDER OF  ANOTHER  PERSON  AT  THE
TIME  SUCH  OTHER  PERSON  WAS CONVICTED OF A CRIME PROVIDED FOR IN THIS
CHAPTER OR HAS BEEN CONVICTED UNDER THE TAX LAWS OR PENAL  LAWS  OF  ANY
OTHER  STATE,  OR  A  POLITICAL  SUBDIVISION OF THIS STATE OR SUCH OTHER
STATE, OR OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED
AND PROSECUTED IN THIS STATE, WOULD CONSTITUTE A SIMILAR  CRIME,  WITHIN
THE  PRECEDING  FIVE  YEARS,  OR  AT  THE TIME THE LICENSE OF SUCH OTHER
PERSON WAS CANCELLED OR SUSPENDED PURSUANT TO SUBDIVISION FOUR  OF  THIS
SECTION  WITHIN  THE  PRECEDING  FIVE  YEARS,  OR AT THE TIME SUCH OTHER
PERSON COMMITTED ANY  OF  THE  ACTS  OR  OMISSIONS  WHICH  ARE,  OR  WAS
CONVICTED  AS,  SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION WITHIN THE
PRECEDING FIVE YEARS, PROVIDED, HOWEVER,  WHERE  AN  APPLICANT  OR  SUCH
OFFICER,  DIRECTOR,  PARTNER,  SHAREHOLDER OR EMPLOYEE OF SUCH APPLICANT
WAS ONLY AN EMPLOYEE OF ANOTHER PERSON, THE  APPLICABLE  EXAMINATION  OF
SUCH  OTHER PERSON SHALL BE LIMITED TO ACTS OR OMISSIONS WITH RESPECT TO
MOTOR FUEL AND THE APPLICABLE EXAMINATION OF PRIOR CRIMINAL  CONVICTIONS
SHALL BE LIMITED TO THOSE WHICH RELATE TO MOTOR FUEL,
  (D)  THE LICENSE OF SUCH APPLICANT OR OF AN OFFICER, DIRECTOR OR PART-
NER OF SUCH APPLICANT, 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 EMPLOYEE OR SHARE-
HOLDER OF SUCH APPLICANT, HAS BEEN CANCELLED OR  SUSPENDED  PURSUANT  TO
SUBDIVISION FOUR OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS, OR
  (E) 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,
HAS  COMMITTED  ANY OF THE ACTS OR OMISSIONS WHICH ARE, OR WAS CONVICTED
AS, SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION WITHIN  THE  PRECEDING
FIVE YEARS, THE DEPARTMENT MAY REFUSE TO LICENSE SUCH APPLICANT.
  3.  THE DEPARTMENT MAY REQUIRE A TRANSPORTER SEEKING LICENSING 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 DEPARTMENT, IN SUCH AMOUNT AS THE DEPARTMENT MAY FIX,

S. 7219--A                         15

IN AN  AMOUNT  DETERMINED  IN  ACCORDANCE  WITH  RULES  AND  REGULATIONS
PRESCRIBED  BY  IT, TO SECURE THE PERFORMANCE BY SUCH TRANSPORTER OF THE
DUTIES AND RESPONSIBILITIES REQUIRED PURSUANT TO THIS ARTICLE AND PURSU-
ANT  TO  ANY  OTHER  SECTION  OF LAW, RULE OR REGULATION WITH RESPECT TO
MOTOR FUEL. THE DEPARTMENT MAY REQUIRE THAT SUCH A BOND OR OTHER SECURI-
TY BE FILED BEFORE A TRANSPORTER IS LICENSED, AND THE AMOUNT THEREOF MAY
BE INCREASED AT ANY TIME WHEN IN ITS JUDGMENT THE SAME IS NECESSARY.  IF
SECURITIES  ARE DEPOSITED AS SECURITY UNDER THIS SUBDIVISION, SUCH SECU-
RITIES SHALL BE KEPT IN THE JOINT CUSTODY OF  THE  COMPTROLLER  AND  THE
SECRETARY  AND  MAY BE SOLD BY THE DEPARTMENT IF IT BECOMES NECESSARY SO
TO DO IN ORDER TO RECOVER AGAINST SUCH  TRANSPORTER  BUT  NO  SUCH  SALE
SHALL  BE HAD UNTIL AFTER SUCH TRANSPORTER SHALL HAVE HAD OPPORTUNITY TO
LITIGATE THE VALIDITY OF THE LIABILITY IF IT ELECTS SO TO DO.  UPON  ANY
SUCH  SALE  THE SURPLUS, IF ANY, ABOVE THE SUMS DUE SHALL BE RETURNED TO
SUCH TRANSPORTER. THE DEPARTMENT, WHEN AUTHORIZED  BY  THE  TRANSPORTER,
SHALL  FURNISH  INFORMATION  REGARDING THE TRANSPORTER'S LICENSE AND ANY
OTHER INFORMATION WHICH THE TRANSPORTER AUTHORIZES IT TO DISCLOSE.
  4. THE LICENSE OF  ANY  IMPORTING  OR  EXPORTING  TRANSPORTER  MAY  BE
CANCELLED  OR  SUSPENDED BY THE DEPARTMENT WHERE A LICENSEE, OR AN OFFI-
CER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER OF THE LICENSEE  WHO  AS
SUCH OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER IS UNDER A DUTY
TO  ACT  FOR  SUCH  LICENSEE  OR  ANY SHAREHOLDER DIRECTLY OR INDIRECTLY
OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES  OF  STOCK  OF  THE
LICENSEE  (WHERE  SUCH  LICENSEE  IS A CORPORATION) ENTITLING THE HOLDER
THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF SUCH LICEN-
SEE, FAILS TO FILE A BOND OR OTHER SECURITY WHEN REQUIRED  OR  WHEN  THE
AMOUNT  THEREOF  IS  INCREASED, OR FAILS TO CONTINUE TO MAINTAIN IN FULL
FORCE AND EFFECT AT ALL TIMES THE REQUIRED BOND OR OTHER SECURITY  FILED
WITH  THE  DEPARTMENT,  OR FAILS TO COMPLY WITH ANY OF THE PROVISIONS OF
THIS ARTICLE OR ANY OTHER  SECTION  OF  LAW,  RULE  OR  REGULATION  WITH
RESPECT  TO  MOTOR  FUEL,  OR KNOWINGLY AIDS AND ABETS ANOTHER PERSON IN
VIOLATING ANY OF THE PROVISIONS OF SUCH ARTICLES OR OF ANY SUCH RULE  OR
REGULATION  WITH  RESPECT  TO MOTOR FUEL, OR TRANSFERS ITS LICENSE AS AN
IMPORTING TRANSPORTER OR EXPORTING TRANSPORTER. A LICENSE  MAY  ALSO  BE
CANCELLED  OR  SUSPENDED IF THE DEPARTMENT DETERMINES THAT A LICENSEE OR
AN OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER OF  THE  LICENSEE
WHO AS SUCH OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER IS UNDER
A DUTY TO ACT FOR SUCH LICENSEE OR ANY SHAREHOLDER DIRECTLY OR INDIRECT-
LY  OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF THE
LICENSEE (WHERE SUCH LICENSEE IS A  CORPORATION)  ENTITLING  THE  HOLDER
THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF SUCH LICEN-
SEE:
  (A)  COMMITS FRAUD OR DECEIT IN HIS OPERATIONS AS A TRANSPORTER OR HAS
COMMITTED FRAUD OR DECEIT IN PROCURING HIS LICENSE;
  (B) HAS BEEN CONVICTED IN A COURT OF  COMPETENT  JURISDICTION,  EITHER
WITHIN  OR  WITHOUT THE STATE, OF A FELONY, AS DEFINED UNDER SUBDIVISION
EIGHT OF SECTION ONE HUNDRED NINETY-NINE-P OF THIS ARTICLE,  BEARING  ON
SUCH TRANSPORTER'S DUTIES AND OBLIGATIONS UNDER THIS CHAPTER;
  (C)  HAS KNOWINGLY AIDED AND ABETTED A PERSON WHO IS NOT REGISTERED AS
A DISTRIBUTOR IN THE IMPORTATION, PRODUCTION, REFINING,  MANUFACTURE  OR
COMPOUNDING OF MOTOR FUEL; OR
  (D)  HAS  KNOWINGLY  AIDED  AND ABETTED THE DISTRIBUTION OF MOTOR FUEL
IMPORTED, CAUSED TO BE  IMPORTED,  PRODUCED,  REFINED,  MANUFACTURED  OR
COMPOUNDED BY A DISTRIBUTOR WHO IS NOT REGISTERED BY THE DEPARTMENT.
  A  LICENSE MAY ALSO BE CANCELLED OR SUSPENDED IF THE DEPARTMENT DETER-
MINES THAT A LICENSEE OR AN OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE  OR

S. 7219--A                         16

PARTNER  OF  THE  LICENSEE  WHO  AS SUCH OFFICER, DIRECTOR, SHAREHOLDER,
EMPLOYEE OR PARTNER IS UNDER A DUTY TO ACT  FOR  SUCH  LICENSEE  OR  ANY
SHAREHOLDER  DIRECTLY  OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE
NUMBER  OF  SHARES  OF  STOCK  OF THE LICENSEE (WHERE SUCH LICENSEE IS A
CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR  THE  ELECTION  OF
DIRECTORS OR TRUSTEES OF SUCH LICENSEE, WAS AN OFFICER, DIRECTOR, SHARE-
HOLDER,  EMPLOYEE  OR  PARTNER  OF  ANOTHER  PERSON WHO AS SUCH OFFICER,
DIRECTOR, SHAREHOLDER, EMPLOYEE OR PARTNER WAS UNDER A DUTY TO  ACT  FOR
SUCH  OTHER  PERSON  OR  WAS A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING
MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF  STOCK  OF  SUCH  OTHER
PERSON  (WHERE  SUCH OTHER PERSON IS A CORPORATION) ENTITLING THE HOLDER
THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF SUCH  OTHER
PERSON  AT THE TIME SUCH OTHER PERSON COMMITTED ANY OF THE ACTS OR OMIS-
SIONS WHICH ARE, OR WAS CONVICTED  AS,  SPECIFIED  IN  THIS  SUBDIVISION
WITHIN THE PRECEDING FIVE YEARS.
  5. A LICENSE SHALL NOT BE CANCELLED OR SUSPENDED NOR SHALL AN APPLICA-
TION  FOR  A  LICENSE  BE REFUSED UNLESS THE LICENSEE OR APPLICANT FOR A
LICENSE HAS HAD AN OPPORTUNITY FOR A HEARING, PROVIDED, HOWEVER, THAT AN
APPLICATION FOR A  LICENSE  MAY  BE  DENIED  WITHOUT  A  PRIOR  HEARING.
PROVIDED,  A LICENSE MAY ALSO BE CANCELLED OR SUSPENDED PRIOR TO A HEAR-
ING FOR THE FAILURE TO CONTINUE TO MAINTAIN IN FULL FORCE AND EFFECT  AT
ALL  TIMES  THE  BOND  OR  OTHER  SECURITY  FILED  WITH  THE DEPARTMENT.
PROVIDED, HOWEVER, IF A SURETY BOND IS CANCELLED  PRIOR  TO  EXPIRATION,
THE  DEPARTMENT,  AFTER  CONSIDERING ALL THE RELEVANT CIRCUMSTANCES, MAY
MAKE SUCH OTHER ARRANGEMENTS AND REQUIRE THE FILING OF SUCH  OTHER  BOND
OR  OTHER  SECURITY  AS  THE  DEPARTMENT  DEEMS  APPROPRIATE.  PROVIDED,
FURTHER, A LICENSE MAY BE CANCELLED OR SUSPENDED PRIOR TO A HEARING  FOR
THE TRANSFER OF SUCH LICENSE. A TRANSPORTER SHALL IMMEDIATELY INFORM THE
DEPARTMENT,  IN WRITING, OF ANY CHANGE IN ITS ADDRESS AND, IF THE TRANS-
PORTER IS A CORPORATION OR PARTNERSHIP, THE TRANSPORTER SHALL IMMEDIATE-
LY INFORM THE DEPARTMENT, IN WRITING, OF ANY  CHANGE  IN  ITS  OFFICERS,
DIRECTORS  OR  PARTNERS  OR  THEIR  RESIDENCE  ADDRESSES AS SHOWN IN ITS
APPLICATION FOR A LICENSE.
  6. THE PROVISIONS OF SUBDIVISIONS SIX, EIGHT, NINE AND TEN OF  SECTION
ONE  HUNDRED NINETY-NINE-P OF THIS ARTICLE SHALL APPLY TO THE PROVISIONS
OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS
IF THE LANGUAGE OF THESE SUBDIVISIONS HAD BEEN INCORPORATED IN FULL INTO
THIS SECTION AND HAD EXPRESSLY REFERRED TO THE  IMPORTING  TRANSPORTER'S
LICENSE  OR  THE  EXPORTING  TRANSPORTER'S  LICENSE  UNDER THIS SECTION,
EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THIS SECTION.
  S 199-R. LICENSING OF TERMINAL OPERATORS. 1. THE DEPARTMENT  UPON  THE
APPLICATION  OF  A  PERSON  WHO  OPERATES A FACILITY WHERE MOTOR FUEL IS
DEPOSITED, SHALL LICENSE SUCH PERSON AS A TERMINAL OPERATOR  UNDER  THIS
ARTICLE  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION. THE APPLICATION
SHALL BE IN A FORM AND CONTAIN SUCH INFORMATION AS THE DEPARTMENT  SHALL
PRESCRIBE.  NO  PERSON,  UNLESS  SO  LICENSED, SHALL OPERATE A TERMINAL,
EXCEPT THAT A PERSON MAY OPERATE A TERMINAL WITHOUT A LICENSE IF ALL  OF
THE  MOTOR  FUEL STORED IN SUCH FACILITY IS SOLELY FOR SUCH PERSON'S OWN
USE AND CONSUMPTION.
  2. WHERE A PERSON FILES  AN  APPLICATION  FOR  A  LICENSE  UNDER  THIS
SECTION  AND  IN  CONSIDERING SUCH APPLICATION THE DEPARTMENT ASCERTAINS
THAT:
  (A) BEEN CONVICTED UNDER THE TAX LAWS  OR  PENAL  LAWS  OF  ANY  OTHER
STATE,  OR A POLITICAL SUBDIVISION OF THIS STATE OR SUCH OTHER STATE, OR
OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROS-

S. 7219--A                         17

ECUTED IN THIS STATE, WOULD  CONSTITUTE  A  SIMILAR  CRIME,  WITHIN  THE
PRECEDING FIVE YEARS,
  (B)  AN  OFFICER, DIRECTOR OR PARTNER OF SUCH 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 CORPO-
RATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF  DIREC-
TORS  OR  TRUSTEES, OR AN EMPLOYEE OR SHAREHOLDER OF SUCH APPLICANT, HAS
BEEN CONVICTED UNDER THE TAX LAWS OR PENAL LAWS OF ANY OTHER STATE, OR A
POLITICAL SUBDIVISION OF THIS STATE OR  SUCH  OTHER  STATE,  OR  OF  THE
UNITED  STATES  OF A CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROSECUTED
IN THIS STATE, WOULD CONSTITUTE A SIMILAR CRIME,  WITHIN  THE  PRECEDING
FIVE YEARS,
  (C)  SUCH APPLICANT, OR AN OFFICER, DIRECTOR OR PARTNER OF SUCH APPLI-
CANT, 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 EMPLOYEE OR SHAREHOLDER OF SUCH APPLICANT, WHO
WAS  AN  OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON, OR WHO DIRECTLY
OR INDIRECTLY OWNED MORE THAN TEN PERCENT OF THE  NUMBER  OF  SHARES  OF
STOCK OF ANOTHER PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTI-
TLING  THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUS-
TEES, OR WHO WAS AN EMPLOYEE OR SHAREHOLDER OF  ANOTHER  PERSON  AT  THE
TIME  SUCH  OTHER  PERSON  WAS CONVICTED OF A CRIME PROVIDED FOR IN THIS
CHAPTER OR HAS BEEN CONVICTED UNDER THE TAX LAWS OR PENAL  LAWS  OF  ANY
OTHER  STATE,  OR  A  POLITICAL  SUBDIVISION OF THIS STATE OR SUCH OTHER
STATE, OR OF THE UNITED STATES OF A CRIMINAL OFFENSE WHICH, IF COMMITTED
AND PROSECUTED IN THIS STATE, WOULD CONSTITUTE A SIMILAR  CRIME,  WITHIN
THE  PRECEDING  FIVE  YEARS,  OR  AT  THE TIME THE LICENSE OF SUCH OTHER
PERSON WAS CANCELLED OR SUSPENDED PURSUANT TO SUBDIVISION FOUR  OF  THIS
SECTION  WITHIN  THE  PRECEDING  FIVE  YEARS,  OR AT THE TIME SUCH OTHER
PERSON COMMITTED ANY  OF  THE  ACTS  OR  OMISSIONS  WHICH  ARE,  OR  WAS
CONVICTED  AS,  SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION WITHIN THE
PRECEDING FIVE YEARS, PROVIDED, HOWEVER,  WHERE  AN  APPLICANT  OR  SUCH
OFFICER,  DIRECTOR,  PARTNER,  SHAREHOLDER OR EMPLOYEE OF SUCH APPLICANT
WAS ONLY AN EMPLOYEE OF ANOTHER PERSON, THE  APPLICABLE  EXAMINATION  OF
SUCH  OTHER PERSON SHALL BE LIMITED TO ACTS OR OMISSIONS WITH RESPECT TO
MOTOR FUEL AND THE APPLICABLE EXAMINATION OF PRIOR CRIMINAL  CONVICTIONS
SHALL BE LIMITED TO THOSE WHICH RELATE TO MOTOR FUEL,
  (D)  THE LICENSE OF SUCH APPLICANT OR OF AN OFFICER, DIRECTOR OR PART-
NER OF SUCH APPLICANT, 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 EMPLOYEE OR SHARE-
HOLDER OF SUCH APPLICANT, HAS BEEN CANCELLED OR  SUSPENDED  PURSUANT  TO
SUBDIVISION FOUR OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS, OR
  (E) 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,
HAS  COMMITTED  ANY OF THE ACTS OR OMISSIONS WHICH ARE, OR WAS CONVICTED
AS, SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION WITHIN  THE  PRECEDING
FIVE YEARS, THE DEPARTMENT MAY REFUSE TO LICENSE SUCH APPLICANT.
  3.  THE  DEPARTMENT  MAY  REQUIRE A TERMINAL OPERATOR TO FILE WITH THE
DEPARTMENT A BOND ISSUED BY A SURETY COMPANY APPROVED BY THE SUPERINTEN-
DENT OF FINANCIAL SERVICES AS TO SOLVENCY AND RESPONSIBILITY AND AUTHOR-

S. 7219--A                         18

IZED TO TRANSACT BUSINESS IN THIS STATE OR OTHER SECURITY ACCEPTABLE  TO
THE  DEPARTMENT,  IN SUCH AMOUNT AS THE DEPARTMENT MAY FIX, IN AN AMOUNT
DETERMINED IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY IT, TO
SECURE  THE  PERFORMANCE  BY  SUCH  TERMINAL  OPERATOR OF THE DUTIES AND
RESPONSIBILITIES REQUIRED PURSUANT TO THIS ARTICLE AND PURSUANT  TO  ANY
OTHER  SECTION  OF  LAW,  RULE OR REGULATION WITH RESPECT TO MOTOR FUEL.
THE DEPARTMENT MAY REQUIRE THAT SUCH A BOND OR OTHER SECURITY  BE  FILED
BEFORE  A  TERMINAL  OPERATOR IS LICENSED, AND THE AMOUNT THEREOF MAY BE
INCREASED AT ANY TIME WHEN IN ITS JUDGMENT THE  SAME  IS  NECESSARY.  IF
SECURITIES  ARE DEPOSITED AS SECURITY UNDER THIS SUBDIVISION, SUCH SECU-
RITIES SHALL BE KEPT IN THE JOINT CUSTODY OF  THE  COMPTROLLER  AND  THE
SECRETARY  AND  MAY BE SOLD BY THE DEPARTMENT IF IT BECOMES NECESSARY SO
TO DO IN ORDER TO RECOVER AGAINST SUCH TERMINAL  OPERATOR  BUT  NO  SUCH
SALE  SHALL  BE  HAD  UNTIL  AFTER SUCH TERMINAL OPERATOR SHALL HAVE HAD
OPPORTUNITY TO LITIGATE THE VALIDITY OF THE LIABILITY IF IT ELECTS SO TO
DO. UPON ANY SUCH SALE THE SURPLUS, IF ANY, ABOVE THE SUMS DUE SHALL  BE
RETURNED  TO  SUCH TERMINAL OPERATOR. THE DEPARTMENT, WHEN AUTHORIZED BY
THE TERMINAL OPERATOR, SHALL FURNISH INFORMATION REGARDING THE  TERMINAL
OPERATOR'S LICENSE AND ANY OTHER INFORMATION WHICH THE TERMINAL OPERATOR
AUTHORIZES IT TO DISCLOSE.
  4.  THE LICENSE OF ANY TERMINAL OPERATOR MAY BE CANCELLED OR SUSPENDED
BY THE DEPARTMENT WHERE A LICENSEE, OR AN OFFICER, DIRECTOR,  SHAREHOLD-
ER,  EMPLOYEE  OR PARTNER OF THE LICENSEE WHO AS SUCH OFFICER, DIRECTOR,
SHAREHOLDER, EMPLOYEE OR PARTNER IS UNDER A DUTY TO ACT FOR SUCH  LICEN-
SEE  OR  ANY  SHAREHOLDER  DIRECTLY  OR  INDIRECTLY OWNING MORE THAN TEN
PERCENT OF THE NUMBER OF SHARES OF STOCK OF  THE  LICENSEE  (WHERE  SUCH
LICENSEE  IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE
ELECTION OF DIRECTORS OR TRUSTEES OF SUCH LICENSEE, FAILS TO FILE A BOND
OR OTHER SECURITY WHEN REQUIRED OR WHEN THE AMOUNT THEREOF IS INCREASED,
OR FAILS TO CONTINUE TO MAINTAIN IN FULL FORCE AND EFFECT AT  ALL  TIMES
THE  REQUIRED BOND OR OTHER SECURITY FILED WITH THE DEPARTMENT, OR FAILS
TO COMPLY WITH ANY OF THE  PROVISIONS  OF  THIS  ARTICLE  OR  ANY  OTHER
SECTION  OF LAW, RULE OR REGULATION WITH RESPECT TO MOTOR FUEL, OR KNOW-
INGLY AIDS AND ABETS ANOTHER PERSON IN VIOLATING ANY OF  THE  PROVISIONS
OF SUCH ARTICLES OR OF ANY SUCH RULE OR REGULATION WITH RESPECT TO MOTOR
FUEL,  OR TRANSFERS ITS LICENSE AS AN IMPORTING TRANSPORTER OR EXPORTING
TRANSPORTER. A LICENSE MAY ALSO BE CANCELLED OR SUSPENDED IF THE DEPART-
MENT DETERMINES THAT A LICENSEE OR AN  OFFICER,  DIRECTOR,  SHAREHOLDER,
EMPLOYEE  OR  PARTNER  OF  THE  LICENSEE  WHO AS SUCH OFFICER, DIRECTOR,
SHAREHOLDER, EMPLOYEE OR PARTNER IS UNDER A DUTY TO ACT FOR SUCH  LICEN-
SEE  OR  ANY  SHAREHOLDER  DIRECTLY  OR  INDIRECTLY OWNING MORE THAN TEN
PERCENT OF THE NUMBER OF SHARES OF STOCK OF  THE  LICENSEE  (WHERE  SUCH
LICENSEE  IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE
ELECTION OF DIRECTORS OR TRUSTEES OF SUCH LICENSEE:
  (A) COMMITS FRAUD OR DECEIT IN HIS OPERATIONS AS A  TERMINAL  OPERATOR
OR HAS COMMITTED FRAUD OR DECEIT IN PROCURING HIS LICENSE;
  (B)  HAS  BEEN  CONVICTED IN A COURT OF COMPETENT JURISDICTION, EITHER
WITHIN OR WITHOUT THE STATE, OF A FELONY, WITHIN THE MEANING OF SUBDIVI-
SION EIGHT OF SECTION ONE HUNDRED NINETY-NINE-P OF THIS ARTICLE, BEARING
ON SUCH TERMINAL OPERATOR'S DUTIES AND OBLIGATIONS UNDER THIS CHAPTER;
  (C) HAS KNOWINGLY AIDED AND ABETTED A PERSON WHO IS NOT REGISTERED  AS
A  DISTRIBUTOR  IN THE IMPORTATION, PRODUCTION, REFINING, MANUFACTURE OR
COMPOUNDING OF MOTOR FUEL; OR
  (D) HAS KNOWINGLY AIDED AND ABETTED THE  DISTRIBUTION  OF  MOTOR  FUEL
WHICH  HE  HAS  KNOWLEDGE  OF  AS BEING IMPORTED, CAUSED TO BE IMPORTED,

S. 7219--A                         19

PRODUCED, REFINED, MANUFACTURED OR COMPOUNDED BY A  DISTRIBUTOR  WHO  IS
NOT REGISTERED BY THE DEPARTMENT.
  A  LICENSE MAY ALSO BE CANCELLED OR SUSPENDED IF THE DEPARTMENT DETER-
MINES THAT A LICENSEE OR AN OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE  OR
PARTNER  OF  THE  LICENSEE  WHO  AS SUCH OFFICER, DIRECTOR, SHAREHOLDER,
EMPLOYEE OR PARTNER IS UNDER A DUTY TO ACT  FOR  SUCH  LICENSEE  OR  ANY
SHAREHOLDER  DIRECTLY  OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE
NUMBER OF SHARES OF STOCK OF THE LICENSEE  (WHERE  SUCH  LICENSEE  IS  A
CORPORATION)  ENTITLING  THE  HOLDER THEREOF TO VOTE FOR THE ELECTION OF
DIRECTORS OR TRUSTEES OF SUCH LICENSEE, WAS AN OFFICER, DIRECTOR, SHARE-
HOLDER, EMPLOYEE OR PARTNER OF  ANOTHER  PERSON  WHO  AS  SUCH  OFFICER,
DIRECTOR,  SHAREHOLDER,  EMPLOYEE OR PARTNER WAS UNDER A DUTY TO ACT FOR
SUCH OTHER PERSON OR WAS A SHAREHOLDER  DIRECTLY  OR  INDIRECTLY  OWNING
MORE  THAN  TEN  PERCENT  OF THE NUMBER OF SHARES OF STOCK OF SUCH OTHER
PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTITLING  THE  HOLDER
THEREOF  TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES OF SUCH OTHER
PERSON AT THE TIME SUCH OTHER PERSON COMMITTED ANY OF THE ACTS OR  OMIS-
SIONS  WHICH  ARE,  OR  WAS  CONVICTED AS, SPECIFIED IN THIS SUBDIVISION
WITHIN THE PRECEDING FIVE YEARS.
  5. A LICENSE SHALL NOT BE CANCELLED OR SUSPENDED NOR SHALL AN APPLICA-
TION FOR LICENSE BE REFUSED UNLESS THE LICENSEE OR APPLICANT HAS HAD  AN
OPPORTUNITY  FOR A HEARING, PROVIDED, HOWEVER, THAT AN APPLICATION FOR A
LICENSE MAY BE DENIED WITHOUT A PRIOR HEARING. PROVIDED, A  LICENSE  MAY
BE  CANCELLED  OR  SUSPENDED PRIOR TO A HEARING FOR THE TRANSFER OF SUCH
REGISTRATION WITHOUT THE PRIOR WRITTEN APPROVAL  OF  THE  DEPARTMENT.  A
TERMINAL  OPERATOR  SHALL IMMEDIATELY INFORM THE DEPARTMENT, IN WRITING,
OF ANY CHANGE IN ITS ADDRESS AND, IF THE TERMINAL OPERATOR IS  A  CORPO-
RATION  OR  PARTNERSHIP,  THE TERMINAL OPERATOR SHALL IMMEDIATELY INFORM
THE DEPARTMENT, IN WRITING, OF ANY CHANGE IN ITS OFFICERS, DIRECTORS  OR
PARTNERS  OR  THEIR  RESIDENCE ADDRESSES AS SHOWN IN ITS APPLICATION FOR
FOR A LICENSE.
  6. THE PROVISIONS OF SUBDIVISIONS SIX, EIGHT, NINE AND TEN OF  SECTION
ONE  HUNDRED NINETY-NINE-P OF THIS ARTICLE SHALL APPLY TO THE PROVISIONS
OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS
IF THE LANGUAGE OF THESE SUBDIVISIONS HAD BEEN INCORPORATED IN FULL INTO
THIS SECTION AND HAD  EXPRESSLY  REFERRED  TO  THE  TERMINAL  OPERATOR'S
LICENSE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION
IS  EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELE-
VANT TO THIS SECTION.
  S 199-S. LIQUEFIED PETROLEUM GAS FUEL PERMIT. THE DEPARTMENT, UPON THE
APPLICATION OF A PERSON IMPORTING, MANUFACTURING  OR  SELLING  LIQUEFIED
PETROLEUM  GAS  IDENTIFIED AS A FUEL FOR USE IN THE OPERATION OF A MOTOR
VEHICLE OR FOR USE IN THE OPERATION OF A PLEASURE OR RECREATIONAL  MOTOR
BOAT OR USING OR CONSUMING LIQUEFIED PETROLEUM GAS FOR SUCH PURPOSE, MAY
ISSUE  SUCH  PERSON  A  LIQUEFIED  PETROLEUM  GAS FUEL PERMIT IN LIEU OF
REGISTRATION AS A DISTRIBUTOR OF MOTOR  FUEL  PURSUANT  TO  SECTION  ONE
HUNDRED  NINETY-NINE-P  OF  THIS  ARTICLE, PROVIDED SUCH PERSON DOES NOT
IMPORT MOTOR FUEL OTHER THAN LIQUEFIED PETROLEUM GAS FUEL OR CAUSE MOTOR
FUEL OTHER THAN LIQUEFIED PETROLEUM GAS FUEL TO  BE  IMPORTED  INTO  THE
STATE  FOR  USE,  DISTRIBUTION, STORAGE OR SALE IN THE STATE OR PRODUCE,
REFINE, MANUFACTURE OR COMPOUND MOTOR FUEL OTHER THAN LIQUEFIED PETROLE-
UM GAS FUEL IN THE STATE. ALL THE  PROVISIONS  OF  SECTION  ONE  HUNDRED
NINETY-NINE-P  OF  THIS  ARTICLE SHALL APPLY TO APPLICANTS FOR LIQUEFIED
PETROLEUM GAS FUEL PERMITS UNDER THIS SECTION AND TO HOLDERS  OF  LIQUE-
FIED  PETROLEUM GAS FUEL PERMITS, PROVIDED THAT THE DEPARTMENT MAY WAIVE
THE REQUIREMENT THAT HOLDERS OF LIQUEFIED  PETROLEUM  GAS  FUEL  PERMITS

S. 7219--A                         20

FILE  A  BOND OR OTHER SECURITY. HOLDERS OF LIQUEFIED PETROLEUM GAS FUEL
PERMITS SHALL BE SUBJECT TO ALL OTHER PROVISIONS OF THIS ARTICLE AND ANY
OTHER SECTION OF LAW, RULE OR REGULATION  RELATING  TO  DISTRIBUTORS  OF
MOTOR  FUEL,  INCLUDING  BUT  NOT  LIMITED  TO THE KEEPING OF RECORDS. A
LIQUEFIED PETROLEUM GAS FUEL PERMIT APPLIES  ONLY  TO  THE  IMPORTATION,
MANUFACTURE,  SALE,  USE  OR CONSUMPTION OF LIQUEFIED PETROLEUM GAS FUEL
AND SHALL NOT BE CONSIDERED A DISTRIBUTOR REGISTRATION UNDER THIS  CHAP-
TER WITH RESPECT TO ANY MOTOR FUEL PRODUCT OTHER THAN LIQUEFIED PETROLE-
UM  GAS. NO HOLDER OF A LIQUEFIED PETROLEUM GAS FUEL PERMIT SHALL IMPORT
OR CAUSE ANY MOTOR FUEL OTHER THAN LIQUEFIED PETROLEUM GAS  FUEL  TO  BE
IMPORTED  INTO  THE STATE, FOR USE, DISTRIBUTION, STORAGE OR SALE WITHIN
THE STATE OR SHALL PRODUCE, REFINE, MANUFACTURE OR COMPOUND  MOTOR  FUEL
OTHER THAN LIQUEFIED PETROLEUM GAS FUEL WITHIN THE STATE.
  S 199-T. PETROLEUM TESTING FEE. 1. THERE IS HEREBY IMPOSED A REGULATO-
RY  FEE  AT  THE RATE OF ONE-HALF OF ONE MILL PER GALLON UPON MOTOR FUEL
IMPORTED, MANUFACTURED OR SOLD WITHIN THIS STATE BY A  DISTRIBUTOR.  THE
FEE  IMPOSED  BY THIS SECTION SHALL BE ADMINISTERED AND COLLECTED BY THE
DEPARTMENT. THE DEPARTMENT MAY MAKE SUCH PROVISIONS  AS  THE  DEPARTMENT
DEEMS  NECESSARY FOR THE JOINT ADMINISTRATION OF THE FEE IMPOSED BY THIS
SECTION.
  2. ALL FEES IMPOSED BY  THIS  SECTION,  TOGETHER  WITH  PENALTIES  AND
INTEREST  THEREON,  WHICH  ARE  COLLECTED OR RECEIVED BY THE DEPARTMENT,
SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES  OR
TRUST  COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT
OF THE COMPTROLLER. THE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM
ALL SUCH DEPOSITORIES OF SUCH REVENUE COLLECTED BY THE  DEPARTMENT.  THE
COMPTROLLER  SHALL RETAIN SUCH AMOUNT AS THE DEPARTMENT MAY DETERMINE TO
BE NECESSARY FOR REFUNDS IN RESPECT TO THE FEES IMPOSED BY THIS SECTION,
OUT OF WHICH THE COMPTROLLER SHALL PAY ANY REFUNDS OF SUCH FEES TO WHICH
DISTRIBUTORS SHALL BE ENTITLED UNDER THE  PROVISIONS  OF  THIS  SECTION.
THE  DEPARTMENT  AND THE COMPTROLLER SHALL MAINTAIN A SYSTEM OF ACCOUNTS
SHOWING THE AMOUNT OF REVENUE COLLECTED OR RECEIVED FROM THE FEE IMPOSED
BY THIS SECTION.  THE COMPTROLLER, AFTER RESERVING SUCH  REFUNDS  SHALL,
ON  OR  BEFORE THE TENTH DAY OF EACH MONTH, DEPOSIT TO THE CREDIT OF THE
MOTOR FUEL QUALITY ACCOUNT,  WHICH  IS  HEREBY  ESTABLISHED  WITHIN  THE
MISCELLANEOUS  STATE  SPECIAL  REVENUE  FUND,  THE  FEES IMPOSED BY THIS
SECTION, TOGETHER WITH PENALTIES  AND  INTEREST  THEREON,  COLLECTED  OR
RECEIVED  BY SUCH DEPARTMENT PURSUANT TO THIS SECTION DURING THE PRECED-
ING CALENDAR MONTH. THE AMOUNT SO PAYABLE  SHALL  BE  CERTIFIED  TO  THE
COMPTROLLER  BY  THE  SECRETARY  OR  HIS DELEGATE, WHO SHALL NOT BE HELD
LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATE. WHERE THE AMOUNT SO  PAID
OVER  TO  SUCH  FUND  IN  ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE
AMOUNT DUE TO SUCH FUND, THE AMOUNT OF THE OVERPAYMENT  OR  UNDERPAYMENT
SHALL  BE CERTIFIED TO THE COMPTROLLER BY THE SECRETARY OR HIS DELEGATE,
WHO SHALL NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATE. THE
AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE SO CERTIFIED  TO  THE
COMPTROLLER  AS SOON AFTER THE DISCOVERY OF THE OVERPAYMENT OR UNDERPAY-
MENT AS REASONABLY POSSIBLE AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY
THE COMPTROLLER TO SUCH FUND SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT
OF ANY SUCH UNDERPAYMENT FROM SUCH NUMBER  OF  SUBSEQUENT  PAYMENTS  AND
DISTRIBUTIONS  AS  THE  COMPTROLLER  AND  THE  DEPARTMENT SHALL CONSIDER
REASONABLE IN VIEW OF THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT  AND
ALL OTHER FACTS OR CIRCUMSTANCES.
  S  199-U.  RECORDS  TO  BE  KEPT  BY DISTRIBUTORS AND OTHERS. 1. EVERY
PERSON WHO IMPORTS OR CAUSES TO BE IMPORTED  INTO  THIS  STATE,  OR  WHO
PRODUCES,  REFINES,  MANUFACTURES OR COMPOUNDS WITHIN THIS STATE, OR WHO

S. 7219--A                         21

PURCHASES OR SELLS IN THIS STATE MOTOR FUEL  OR  DIESEL  MOTOR  FUEL  OR
INGREDIENTS  WHICH  MAY BE MANUFACTURED OR COMPOUNDED INTO MOTOR FUEL OR
DIESEL MOTOR FUEL, SHALL KEEP A COMPLETE  AND  ACCURATE  RECORD  OF  ALL
PURCHASES  AND  SALES, USES OR OTHER DISPOSITIONS THEREOF AND A COMPLETE
AND ACCURATE RECORD OF THE NUMBER OF GALLONS OF  MOTOR  FUEL  OR  DIESEL
MOTOR  FUEL OR SUCH INGREDIENTS SO IMPORTED, PRODUCED, REFINED, MANUFAC-
TURED OR COMPOUNDED. EVERY PERSON WHO STORES MOTOR FUEL OR DIESEL  MOTOR
FUEL  SHALL  KEEP  A COMPLETE AND ACCURATE RECORD OF THE IDENTITY OF THE
PERSON FOR WHOM SUCH FUEL IS STORED, THE QUANTITY AND TYPE  OF  FUEL  SO
STORED,  THE  IDENTITY  OF THE PERSON TO WHOM SUCH FUEL IS RELEASED FROM
STORAGE AND THE QUANTITY AND TYPE OF  FUEL  SO  RELEASED.  SUCH  RECORDS
SHALL  BE IN SUCH FORM AND CONTAIN SUCH OTHER INFORMATION AS THE DEPART-
MENT SHALL PRESCRIBE. SAID DEPARTMENT, BY RULE OR REGULATION,  ALSO  MAY
REQUIRE  THE  DELIVERY  OF STATEMENTS TO PURCHASERS WITH CONSIGNMENTS OF
MOTOR FUEL OR DIESEL MOTOR FUEL OR SUCH INGREDIENTS, AND  PRESCRIBE  THE
MATTERS  TO  BE CONTAINED THEREIN.   SUCH RECORDS AND STATEMENTS, UNLESS
REQUIRED BY THE DEPARTMENT TO BE PRESERVED FOR A LONGER PERIOD, SHALL BE
PRESERVED FOR  A  PERIOD  OF  THREE  YEARS  AND  SHALL  BE  OFFERED  FOR
INSPECTION  AT  ANY TIME UPON ORAL OR WRITTEN DEMAND BY THE SECRETARY OR
THE SECRETARY'S DULY AUTHORIZED AGENTS. THE SECRETARY IS HEREBY  FURTHER
AUTHORIZED TO EXAMINE THE EQUIPMENT OF ANY SUCH PERSON PERTAINING TO THE
STORAGE,  SALE  OR  DELIVERY OF SUCH FUELS, AS WELL AS THE STOCK OF SUCH
FUELS IN THE POSSESSION OR CONTROL OF SUCH PERSON. EACH SUCH  PERSON  IS
HEREBY DIRECTED AND REQUIRED TO GIVE TO THE SECRETARY OR THE SECRETARY'S
DULY  AUTHORIZED  REPRESENTATIVES, THE MEANS, FACILITIES AND OPPORTUNITY
FOR SUCH EXAMINATIONS AS ARE HEREIN PROVIDED FOR AND  REQUIRED.  NOTHING
CONTAINED  IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE THE KEEPING FOR
PURPOSES OF THIS ARTICLE OF A RECORD OF PURCHASES OR SALES OF MOTOR FUEL
OR DIESEL MOTOR FUEL OR SUCH INGREDIENTS AT RETAIL IN  SMALL  QUANTITIES
(LESS  THAN  THIRTY  GALLONS)  OR  OF  MOTOR  FUEL  OR DIESEL MOTOR FUEL
IMPORTED INTO THIS STATE IN THE TANK OF A MOTOR VEHICLE  WHICH  SUPPLIES
THE FUEL FOR ITS OPERATION.
  2. THE DEPARTMENT MAY, BY REGULATION, PROVIDE FOR THE FILING OF MONTH-
LY  INFORMATION  RETURNS  BY  EVERY  PERSON  REQUIRED  TO  MAINTAIN SUCH
RECORDS, AS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION,  WHICH  SHALL
IN  ALL  MATERIAL  RESPECTS  REFLECT  THE  INFORMATION  REQUIRED  TO  BE
CONTAINED IN SUCH RECORDS. SUCH  RETURNS  SHALL  BE  IN  SUCH  FORM  AND
CONTAIN  SUCH  OTHER  INFORMATION  AS THE DEPARTMENT SHALL REQUIRE.   IN
ADDITION, SUCH DEPARTMENT SHALL BE AUTHORIZED TO REQUIRE  BY  REGULATION
THE  KEEPING OF RECORDS AND THE FILING OF INFORMATION RETURNS OR REPORTS
BY ANY PERSON REGISTERED AS THE OWNER UNDER THE VEHICLE AND TRAFFIC  LAW
OF  A  MOTOR  VEHICLE  USING  DIESEL MOTOR FUEL WHICH IS OPERATED ON THE
PUBLIC HIGHWAYS OF THIS STATE  AND  THE  PERSON  HAVING  A  REGISTRATION
ISSUED PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
FIC LAW IN THE CASE OF A MOTOR VEHICLE OPERATED UNDER SUCH REGISTRATION.
  3.  THE DEPARTMENT SHALL PROVIDE FOR THE FILING OF MONTHLY INFORMATION
RETURNS BY EVERY DISTRIBUTOR AND EVERY PERSON REGISTERED  AS  A  "RETAIL
SELLER  OF  AVIATION  GASOLINE"  REQUIRED  TO  MAINTAIN SUCH RECORDS, AS
PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION, WHICH SHALL IN ALL  MATE-
RIAL  RESPECTS  REFLECT THE INFORMATION REQUIRED TO BE CONTAINED IN SUCH
RECORDS. SUCH RETURNS SHALL BE IN  SUCH  FORM  AND  CONTAIN  SUCH  OTHER
INFORMATION  AS  THE  DEPARTMENT SHALL REQUIRE, PROVIDED, THE DEPARTMENT
SHALL PERMIT THE FILING OF SUCH RETURN ON A QUARTERLY BASIS BY DISTRIBU-
TORS WHOSE ONLY SALES OF DIESEL MOTOR FUEL ARE SALES TO CONSUMERS SOLELY
FOR CONSUMPTION OTHER THAN ON THE PUBLIC HIGHWAYS OF THIS STATE  (EXCEPT
FOR  THE  USE  OF  THE PUBLIC HIGHWAY BY FARMERS TO REACH ADJACENT FARM-

S. 7219--A                         22

LANDS) AND BY PERSONS REGISTERED UNDER THIS ARTICLE AS  DISTRIBUTORS  OF
KERO-JET FUEL ONLY.
  S  199-V.  RECORDS  AND  REPORTS  OF  TRANSPORTATION OF MOTOR FUEL AND
DIESEL MOTOR FUEL. EVERY PERSON TRANSPORTING MOTOR FUEL OR DIESEL  MOTOR
FUEL WITHIN THIS STATE, WHETHER SUCH TRANSPORTATION ORIGINATES WITHIN OR
WITHOUT  THIS  STATE, WHEN REQUIRED BY THE DEPARTMENT, SHALL KEEP A TRUE
AND ACCURATE RECORD OF ALL MOTOR FUEL AND DIESEL MOTOR  FUEL  SO  TRANS-
PORTED,  INCLUDING  INGREDIENTS  WHICH MAY BE MANUFACTURED OR COMPOUNDED
INTO MOTOR FUEL OR DIESEL MOTOR FUEL, SHOWING SUCH FACTS  WITH  RELATION
TO  SUCH FUEL AND INGREDIENTS AND THEIR TRANSPORTATION AS THE DEPARTMENT
MAY REQUIRE. SUCH RECORD SHALL BE OPEN TO INSPECTION  BY  THE  REPRESEN-
TATIVES  OF  THE  DEPARTMENT  AT ANY TIME AND THE DEPARTMENT MAY REQUIRE
FROM ANY SUCH PERSON SWORN RETURNS OF ALL OR ANY PART OF THE INFORMATION
SHOWN BY SUCH RECORDS.
  S 199-W. TRANSPORTATION OF MOTOR FUEL OR DIESEL MOTOR  FUEL;  MANIFEST
REQUIRED.  1.  THE MASTER OR OTHER PERSON IN CHARGE OF ANY BARGE, TANKER
OR OTHER VESSEL IN WHICH MOTOR FUEL OR DIESEL MOTOR FUEL IS BEING TRANS-
PORTED OVER ANY OF THE NAVIGABLE WATERS OF THIS STATE, THE OPERATOR OF A
MOTOR VEHICLE IN WHICH MOTOR FUEL OR DIESEL MOTOR FUEL IS  BEING  TRANS-
PORTED  IN THIS STATE, OR THE OPERATOR OF A PIPELINE THROUGH WHICH MOTOR
FUEL OR DIESEL MOTOR FUEL IS BEING TRANSPORTED IN THIS STATE, OTHER THAN
MOTOR FUEL OR DIESEL MOTOR FUEL BEING TRANSPORTED FOR USE  IN  OPERATING
THE  ENGINE  WHICH PROPELS SUCH VESSEL OR MOTOR VEHICLE, AS THE CASE MAY
BE, MUST HAVE IN HIS OR HER POSSESSION A MANIFEST WHICH SHOWS  THE  NAME
AND ADDRESS OF THE PERSON FROM WHOM SUCH FUEL WAS RECEIVED BY HIM OR HER
AND  THE PLACE OF RECEIPT OF SUCH FUEL AND THE NAME AND ADDRESS OF EVERY
PERSON TO WHOM HE OR SHE IS TO MAKE DELIVERY OF THE SAME AND  THE  PLACE
OF DELIVERY, TOGETHER WITH THE NUMBER OF GALLONS TO BE DELIVERED TO EACH
SUCH  PERSON, AND, IF SUCH FUEL IS BEING IMPORTED INTO THE STATE IN SUCH
VESSEL, MOTOR VEHICLE OR PIPELINE FOR USE, STORAGE, DISTRIBUTION OR SALE
IN THE STATE, THE NAME OF THE DISTRIBUTOR IMPORTING OR CAUSING SUCH FUEL
TO BE IMPORTED INTO THE STATE AND SUCH OTHER INFORMATION AS THE  DEPART-
MENT  MAY  REQUIRE  PURSUANT  TO  RULE  OR  REGULATION, AND SHALL AT THE
REQUEST OF A PEACE OFFICER,  ACTING  PURSUANT  TO  HIS  OR  HER  SPECIAL
DUTIES,  A  POLICE  OFFICER, ANY REPRESENTATIVE OF THE DEPARTMENT OR ANY
OTHER PERSON AUTHORIZED BY LAW TO INQUIRE INTO OR INVESTIGATE THE TRANS-
PORTATION OF SUCH FUEL, PRODUCE SUCH MANIFEST FOR INSPECTION. THE PERSON
CAUSING THE OPERATION OF SUCH VESSEL, MOTOR VEHICLE OR PIPELINE SHALL BE
RESPONSIBLE TO CAUSE THE OPERATOR OF SUCH VESSEL, MOTOR VEHICLE OR PIPE-
LINE TO KEEP IN HIS OR HER POSSESSION ON  SUCH  VESSEL,  IN  SUCH  MOTOR
VEHICLE  OR  IN THE MAIN CONTROL BUILDING OF SUCH PIPELINE IN THIS STATE
THE MANIFEST REQUIRED BY THIS  SECTION.  THE  ABSENCE  OF  THE  MANIFEST
REQUIRED BY THIS SECTION SHALL GIVE RISE TO A PRESUMPTION THAT THE MOTOR
FUEL  OR  DIESEL MOTOR FUEL BEING TRANSPORTED IS INTENDED FOR SALE, USE,
DISTRIBUTION OR STORAGE IN THIS STATE AND IS BEING IMPORTED OR CAUSED TO
BE IMPORTED BY  OTHER  THAN  A  REGISTERED  DISTRIBUTOR.  MOREOVER,  THE
ABSENCE OF:
  (A)  THE  PLACE  OF DELIVERY OF MOTOR FUEL OR DIESEL MOTOR FUEL ON THE
MANIFEST WITH RESPECT TO MOTOR FUEL OR DIESEL MOTOR FUEL BEING  IMPORTED
INTO  THE STATE SHALL GIVE RISE TO A PRESUMPTION THAT SUCH FUEL IS BEING
IMPORTED INTO THE STATE FOR USE, DISTRIBUTION, STORAGE OR  SALE  IN  THE
STATE, AND
  (B)  THE NAME OF A REGISTERED DISTRIBUTOR ON THE MANIFEST WITH RESPECT
TO MOTOR FUEL OR DIESEL MOTOR FUEL BEING IMPORTED  INTO  THE  STATE  FOR
USE,  DISTRIBUTION,  STORAGE  OR  SALE IN THE STATE SHALL GIVE RISE TO A

S. 7219--A                         23

PRESUMPTION THAT SUCH FUEL IS BEING SO IMPORTED OR CAUSED TO BE IMPORTED
BY OTHER THAN A REGISTERED DISTRIBUTOR.
  EVERY  BARGE, TANKER OR OTHER VESSEL SO USED FOR THE TRANSPORTATION OF
MOTOR FUEL MUST BE PLAINLY AND VISIBLY MARKED ON BOTH SIDES THEREOF  AND
ABOVE  THE  WATER  LINE  WITH  THE WORD "GASOLINE," OR OTHER NAME OF THE
MOTOR FUEL BEING TRANSPORTED, IN LETTERS AT LEAST EIGHT INCHES HIGH  AND
OF  CORRESPONDING APPROPRIATE WIDTH, OR MUST BE IDENTIFIED AS PRESCRIBED
BY THE DEPARTMENT PURSUANT TO RULE OR REGULATION. THE MASTER  OR  PERSON
IN  CHARGE  OF SUCH BARGE, TANKER OR OTHER VESSEL, AS WELL AS THE OWNERS
THEREOF, SHALL BE GUILTY OF A VIOLATION OF THIS SECTION IF  SUCH  BARGE,
TANKER OR OTHER VESSEL IS NOT SO MARKED.
  2.  THE DEPARTMENT MAY, BY REGULATION PROVIDE FOR THE FORM AND CONTENT
OF THE MANIFEST REQUIRED FOR MOTOR AND DIESEL MOTOR  FUEL  AND  FOR  THE
FILING  OF MONTHLY INFORMATION RETURNS BY EVERY PERSON REQUIRED TO MAIN-
TAIN RECORDS, DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, WHICH  SHALL
IN  ALL  MATERIAL  RESPECTS  REFLECT  THE  INFORMATION  REQUIRED  TO  BE
CONTAINED IN SUCH RECORDS. SUCH  RETURNS  SHALL  BE  IN  SUCH  FORM  AND
CONTAIN SUCH OTHER INFORMATION AS THE DEPARTMENT SHALL REQUIRE.
  S  9.  Paragraph a of subdivision 19 of section 179 of the agriculture
and markets law, as amended by chapter 190  of  the  laws  of  1990,  is
amended to read as follows:
  a.  Inspect, test, and take samples, of any and all petroleum products
kept, offered or exposed for sale or  in  the  process  of  delivery  or
transport  and  inspect any and all documents and records required to be
maintained by this article. The commissioner of taxation and finance AND
THE SECRETARY OF STATE, RESPECTIVELY may request from  the  commissioner
cooperation and technical assistance, including, among other things, the
inspection,  testing  and  sampling of petroleum products, in connection
with the administration and enforcement of the  fee  and  taxes  imposed
with  respect  to  such  products  by or pursuant to article [twelve-A,]
thirteen-A, twenty-eight or  twenty-nine  of  the  tax  law  OR  ARTICLE
ELEVEN-C OF THE GENERAL BUSINESS LAW.
  S  10.  Paragraph (e) of subdivision 7 of section 30 of the canal law,
as amended by chapter 335 of the laws of 2001, is  amended  to  read  as
follows:
  (e)  No  such  certificate  authorizing or approving the first partial
payment or any final payment to  a  foreign  contractor  shall  be  made
unless  such  contractor shall furnish satisfactory proof that all taxes
due the commissioner of taxation and finance by  such  contractor  under
the provisions of or pursuant to a law enacted pursuant to the authority
of  article  nine,  nine-A,  [twelve-A,] twenty-one, twenty-two, twenty-
eight, twenty-nine or thirty of the tax law have been paid. The  certif-
icate of the commissioner of taxation and finance to the effect that all
such  taxes  have  been  paid  shall  be, for purpose of this paragraph,
conclusive proof of  the  payment  of  such  taxes.  The  term  "foreign
contractor"  as  used in this subdivision means, in the case of an indi-
vidual, a person who is not a resident of this state, in the case  of  a
partnership,  one  having  one  or  more partners not a resident of this
state, and in the case of a corporation, one  not  organized  under  the
laws of this state.
  S  11. Paragraph (q) of subdivision 34 of section 1.20 of the criminal
procedure law, as amended by section 55 of part K of chapter 61  of  the
laws of 2011, is amended to read as follows:
  (q) An employee of the department of taxation and finance (i) assigned
to  enforcement of the [taxes imposed under or pursuant to the authority
of article twelve-A of the tax law and administered by the  commissioner

S. 7219--A                         24

of taxation and finance,] taxes imposed under or pursuant to the author-
ity  of  article eighteen of the tax law and administered by the commis-
sioner, taxes imposed under article twenty of the tax law, or  sales  or
compensating  use  taxes  relating  to  petroleum products or cigarettes
imposed under article twenty-eight or pursuant to the authority of arti-
cle twenty-nine of the tax law and administered by the  commissioner  or
(ii)  designated  as  a  revenue  crimes  specialist and assigned to the
enforcement of the taxes described in paragraph (c) of subdivision  four
of  section  2.10  of  this  title,  for the purpose of applying for and
executing search warrants under article six hundred ninety of this chap-
ter, for the purpose of acting as a claiming agent under  article  thir-
teen-A  of  the  civil  practice  law  and  rules in connection with the
enforcement of the taxes referred  to  above  and  for  the  purpose  of
executing warrants of arrest relating to the respective crimes specified
in subdivision four of section 2.10 of this title.
  S  12.  Paragraph (a) of subdivision 4 of section 2.10 of the criminal
procedure law, as amended by section 56 of part K of chapter 61  of  the
laws of 2011, is amended to read as follows:
  (a)  to  the enforcement of any of the criminal or seizure and forfei-
ture provisions of the tax law relating to [(i) taxes imposed  under  or
pursuant  to the authority of article twelve-A of the tax law and admin-
istered by the commissioner, (ii)] taxes imposed under  or  pursuant  to
the authority of article eighteen of the tax law and administered by the
commissioner, [(iii)] taxes imposed under article twenty of the tax law,
or [(iv)] sales or compensating use taxes relating to petroleum products
or  cigarettes  imposed  under  article  twenty-eight or pursuant to the
authority of article twenty-nine of the tax law and administered by  the
commissioner or
  S 13. Section 392-i of the general business law, as amended by section
5  of part M-1 of chapter 109 of the laws of 2006, is amended to read as
follows:
  S 392-i. Prices reduced to reflect change in  sales  tax  computation.
Every  person  engaged  in  the  retail sale of motor fuel and/or diesel
motor fuel or a  distributor  of  such  fuels,  as  defined  in  article
[twelve-A  of  the  tax  law] ELEVEN-C OF THIS CHAPTER, shall reduce the
price such person charges for motor fuel and/or diesel motor fuel in  an
amount  equal  to  any  reduction in taxes prepaid by the distributor or
paid by retail customers resulting from computing sales and compensating
use taxes at a cents per gallon rate pursuant to the provisions of para-
graph two of subdivision (e)  and  subdivision  (m)  of  section  eleven
hundred eleven of the tax law.
  S  14. Subdivision 5 of section 10-c of the highway law, as amended by
chapter 20 of the laws of 1983, is amended to read as follows:
  5. For amounts to be distributed pursuant to this  section  above  the
funding  level,  as defined in this subdivision, received by any munici-
pality, such municipality shall use at  least  seventy-five  percent  of
such apportioned moneys for the construction, reconstruction or improve-
ment  of  local  highways,  bridges  and/or  highway-railroad crossings,
including  right  of  way  acquisition,  preliminary  engineering,   and
construction  supervision  and inspection, where the service life of the
project is at least ten years. Such moneys made available may be used to
match other state and federal funds made  available  for  such  projects
under  federal-aid highway acts. The remainder of the apportionment, may
be used for any highway purposes, except debt service, including but not
limited to, the acquisition of materials and equipment devoted to opera-
tion and maintenance of local highways, bridges and/or  highway-railroad

S. 7219--A                         25

crossings  and  the payment of any costs directly attributable to opera-
tion and maintenance of local highways, bridges and/or  highway-railroad
crossings. At the discretion of the commissioner, the requirement speci-
fied  in  this  subdivision  may  be  waived  for assistance payments in
amounts of less than five thousand dollars. For purposes of this section
"funding level" shall mean the  average  amounts,  calculated  for  each
municipality,  received  over two years ending March thirty-first, nine-
teen hundred eighty-two from the provisions of the town highway improve-
ment program, the distribution made by former section one hundred twelve
of this chapter, as repealed by section twenty-one of the transportation
systems assistance and financing act of 1981 of amounts  collected  from
taxes  on  motor fuel imposed by FORMER sections two hundred eighty-four
and two hundred eighty-four-a of the tax law and on  Diesel  motor  fuel
imposed  by  FORMER  sections  two  hundred eighty-two-a and two hundred
eighty-two-b of the tax law, and from motor vehicle fees collected  from
residents  pursuant to the vehicle and traffic law, and the distribution
made by former section two hundred  seventy-nine  of  this  chapter,  as
repealed  by section twenty-one of the transportation systems assistance
and financing act of 1981.
  S 15. Paragraph (e) of subdivision 7 of section 38 of the highway law,
as amended by chapter 196 of the laws of 1981 and as relettered by chap-
ter 153 of the laws of 1984, is amended to read as follows:
  (e) No such certificate approving or  authorizing  the  first  partial
payment  or  any  final  payment  to  a foreign contractor shall be made
unless such contractor shall furnish satisfactory proof that  all  taxes
due the state tax commission by such contractor, under the provisions of
or  pursuant to a law enacted pursuant to the authority of article nine,
nine-a, [twelve-a, sixteen, sixteen-a,] twenty-one, twenty-two,  twenty-
three,  twenty-eight,  twenty-nine  or thirty of the tax law [or article
two-E of the general city law] have been paid. The  certificate  of  the
state  tax  commission  to the effect that all such taxes have been paid
shall be, for purpose of this paragraph, conclusive proof of the payment
of such taxes. The term "foreign contractor" as used in this subdivision
means, in the case of an individual, a person who is not a  resident  of
this  state,  in the case of a partnership, one having one or more part-
ners not a resident of this state, and in the case of a corporation, one
not organized under the laws of this state.
  S 16. Subdivision 9 of section 385 of the public authorities  law,  as
added by chapter 56 of the laws of 1993, is amended to read as follows:
  9.  Nothing  contained in this section shall be deemed to restrict the
right of the state to amend, repeal, modify or otherwise alter  statutes
imposing  or  relating to any taxes or fees, including the taxes imposed
pursuant to [section two hundred eighty-four,] articles  thirteen-A  and
twenty-one  of  the tax law and fees imposed by section four hundred one
of the vehicle and traffic law. The authority shall not  include  within
any  resolution,  contract or agreement with holders of the bonds, notes
and other obligations  issued  under  this  title  any  provision  which
provides  that  a default occurs as a result of the state exercising its
right to amend, repeal, modify or otherwise alter  any  such  taxes  and
fees.
  S  17.  Paragraph  (b)  of  subdivision 5 of section 376 of the public
authorities law, as amended by chapter  55  of  the  laws  of  1992,  is
amended to read as follows:
  (b)  To  assure  the continued operation and solvency of the authority
for the carrying out of the purposes relating to this section, provision
is made in this section for the accumulation in the debt service reserve

S. 7219--A                         26

fund of an amount equal to the maximum amount of principal and  interest
maturing  and  becoming due in any succeeding calendar year on all bonds
of the authority then outstanding and  secured  by  such  reserve  fund;
provided  however  for  such  bonds  issued by the authority after April
first, nineteen hundred ninety-two, such debt service reserve  fund  may
in  the  discretion  of  the authority and consistent with any covenants
with any existing bondholders and without impairing the  rights  of  any
existing  bondholders  be sized in an amount equal to not less than one-
half of the maximum amount of principal and interest maturing and becom-
ing due in any succeeding calendar year on such bonds of  the  authority
then outstanding and secured by such debt service reserve fund. In order
to  further  assure  the  maintenance of such debt service reserve fund,
with respect to bonds of the authority issued pursuant  to  subdivisions
two-a,  two-b  and  two-c  of  this  section after April first, nineteen
hundred ninety, the authority shall create a special subaccount in  each
revenue  fund  established  pursuant  to  any  resolution or resolutions
authorizing such bonds. [Such subaccounts shall consist  of  the  moneys
available  after  April  first,  nineteen  hundred  ninety,  pursuant to
sections two hundred eighty-two-b, two hundred eighty-two-c, two hundred
eighty-four-a and two hundred eighty-four-c of the tax law,  respective-
ly,  in  the  emergency  highway  reconditioning  and  preservation fund
reserve account established pursuant to paragraph (b) of subdivision two
of section eighty-nine of the state finance law  and  in  the  emergency
highway construction and reconstruction fund reserve account established
pursuant to paragraph (b) of subdivision two of section eighty-nine-a of
the state finance law, apportioned and paid to the authority for deposit
in such subaccount of the revenue fund.] Amounts in each such subaccount
shall be kept separate and shall not be commingled with any other moneys
in  the custody of the authority.  Amounts in each such subaccount shall
be applied solely to pay such sum, if any, as shall  semi-annually,  (on
such dates as are established under the terms of any cooperative highway
contractual  agreement  of the department of transportation with the New
York state thruway authority entered into on or after April first, nine-
teen hundred ninety which is then in effect), be certified by the chair-
man of the authority to the governor and state director of the budget as
necessary to provide funds in an amount sufficient together  with  other
moneys  available  to the authority for such purpose, to pay one-half of
the total annual principal and interest maturing and becoming due during
the next succeeding twelve calendar months on all bonds of the authority
issued pursuant to subdivisions two-a, two-b and two-c of  this  section
after  April  first,  nineteen hundred ninety and maintaining or funding
debt service reserve funds therefor. [Any surplus of funds in excess  of
such  certified  amounts  remaining  in  each such subaccount after such
payments, if any, have been made shall on the  dates  established  under
the  terms  of  such  cooperative  highway  agreements, be paid over for
deposit, respectively, in the emergency highway reconditioning and pres-
ervation fund reserve account established pursuant to paragraph  (b)  of
subdivision  two  of section eighty-nine of the state finance law and in
the emergency  highway  construction  and  reconstruction  fund  reserve
account  established  pursuant  to  paragraph  (b) of subdivision two of
section eighty-nine-a of the state finance law.]
  S 18. Paragraph (c) of subdivision 1 of  section  385  of  the  public
authorities law, as added by chapter 129 of the laws of 1995, is amended
to read as follows:
  (c)  Such obligations shall be issued or incurred with the approval of
the director of the budget and  shall  be  special  obligations  of  the

S. 7219--A                         27

authority  secured  by and payable solely out of amounts appropriated by
the legislature as authorized pursuant to section eighty-nine-b  of  the
state finance law without recourse against any other assets, revenues or
funds  of  or other payments due to the authority. Upon payments of such
appropriated amounts from  the  fund  established  pursuant  to  section
eighty-nine-b  of the state finance law to the account of the authority,
such funds may be pledged by the authority to secure  its  bonds,  notes
and  other  obligations  authorized by paragraph (b) of this subdivision
and shall be held free and clear of any claim by any person arising  out
of  or in connection with articles [twelve-A,] thirteen-A and twenty-one
of the tax law. Without limiting the generality  of  the  foregoing  and
without  limiting  the rights and duties of the commissioner of taxation
and finance under articles [twelve-A,] thirteen-A and twenty-one of  the
tax  law,  no  taxpayer, or any other person, including the state, shall
have any right or claim against the authority or any of its  bondholders
to  any  moneys  appropriated and transferred from the dedicated highway
and bridge trust fund established by section eighty-nine-b of the  state
finance law for or in respect of a refund, rebate, credit, reimbursement
or other repayment of taxes paid under such articles of the tax law.
  S  19. Subparagraph 7 of paragraph j of subdivision 1 of section 54 of
the state finance law is REPEALED.
  S 20. Paragraph (a) of subdivision 3 of  section  89-b  of  the  state
finance law, as amended by section 2 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a)  The  special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway  and
bridge  trust  fund  pursuant  to the provisions of sections two hundred
five, [two hundred eighty-nine-e,] three  hundred  one-j,  five  hundred
fifteen  and  eleven  hundred  sixty-seven  of the tax law, section four
hundred one of the vehicle and traffic law, and  section  thirty-one  of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
pursuant  to  section  fifty-two,  section three hundred twenty-six, and
subdivisions five, eight and twelve of section eighty-eight of the high-
way law, subdivision fifteen of section three hundred eighty-five of the
vehicle and traffic law, section two of the chapter of the laws  of  two
thousand  three  that amended this paragraph, subdivision (d) of section
three hundred four-a, paragraph one of subdivision (a)  and  subdivision
(d)  of  section  three  hundred five, subdivision six-a of section four
hundred fifteen and subdivision (g) of section twenty-one hundred  twen-
ty-five of the vehicle and traffic law, section fifteen of this chapter,
excepting  moneys  deposited  with  the  state on account of betterments
performed pursuant to subdivision twenty-seven  or  subdivision  thirty-
five  of  section  ten of the highway law, (iii) any moneys collected by
the department of  transportation  for  services  provided  pursuant  to
agreements  entered into in accordance with section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected  therefor  or
credited or transferred thereto from any other fund, account or source.
  S  21.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 3 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions of  sections  [two  hundred
eighty-nine-e,]  three  hundred  one-j,  five hundred fifteen and eleven
hundred sixty-seven of the tax law, section  four  hundred  one  of  the

S. 7219--A                         28

vehicle  and traffic law, and section thirty-one of chapter fifty-six of
the laws of nineteen hundred  ninety-three,  (ii)  all  fees,  fines  or
penalties  collected  by  the commissioner of transportation pursuant to
section  fifty-two,  section  three hundred twenty-six, and subdivisions
five, eight and twelve of  section  eighty-eight  of  the  highway  law,
subdivision  fifteen of section three hundred eighty-five of the vehicle
and traffic law, section  fifteen  of  this  chapter,  excepting  moneys
deposited with the state on account of betterments performed pursuant to
subdivision  twenty-seven  or  subdivision thirty-five of section ten of
the highway law, (iii) any moneys collected by the department of  trans-
portation  for  services provided pursuant to agreements entered into in
accordance with section ninety-nine-r of the general municipal law,  and
(iv)  any  other  moneys  collected  therefor or credited or transferred
thereto from any other fund, account or source.
  S 22. Subparagraph (C) of paragraph 1, paragraph  2  and  subparagraph
(B)  of  paragraph  4  of  subdivision (b) of section 10 of the tax law,
subparagraph (C) of paragraph 1 as amended by chapter 38 of the laws  of
1997,  paragraph 2 and subparagraph (B) of paragraph 4 as added by chap-
ter 55 of the laws of 1992, are amended to read as follows:
  (C) more than five million dollars of the total of the tax  on  [gaso-
line and similar motor fuel and the tax on] petroleum businesses imposed
by  and  pursuant  to  the  authority of [articles twelve-A and] ARTICLE
thirteen-A of this chapter, then such taxpayer shall  make  payments  of
the  taxes  for  which such dollar threshold was met by electronic funds
transfer or certified check in accordance with the provisions of  subdi-
vision (c) of this section.
  (2) Special transitional rule. Notwithstanding the provisions of para-
graph  one  of  this  subdivision, for purposes of determining whether a
taxpayer described in  subparagraph  (C)  of  such  paragraph  shall  be
required  to  initially  participate  in  the program prescribed by this
section, if such taxpayer was liable for more than three  million  seven
hundred  fifty  thousand  dollars  in total article [twelve-A and] thir-
teen-A taxes during the September first, nineteen hundred ninety through
May thirty-first, nineteen hundred ninety-one period, then such taxpayer
shall make payments of tax by electronic  funds  transfer  or  certified
check in accordance with the provisions of this section.
  (B)  If  a  taxpayer having liability described in subparagraph (B) or
(C) of paragraph one of this subdivision can demonstrate to  the  satis-
faction of the commissioner that (i) for the most recent six-month peri-
od,  (I) the prepaid state and local sales and compensating use taxes on
motor fuel and diesel motor fuel or (II)  the  total  article  [twelve-A
and]  thirteen-A  taxes,  as  the  case may be, properly payable by such
taxpayer are less than fifty percent of such applicable taxes  described
in  subclause  (I) or (II), as the case may be, properly payable by such
taxpayer for the comparable six-month period of the preceding  year  and
(ii)  the sum of such taxpayer's liability for such applicable taxes for
the most recent six months together with the product of such  applicable
taxes  properly  payable by such taxpayer for the six-month period imme-
diately preceding the six-month period referred to in clause (i) of this
subparagraph multiplied by the percentage arrived at under  such  clause
is  less  than  two  and  one-half  million dollars in amount, then such
taxpayer shall not be required to participate in the program  prescribed
by  this  section  for  the remaining months of the period ending on the
next May thirty-first and for the immediately succeeding twelve months.
  S 23. Item (i) of subparagraph (C) of paragraph 1 and subparagraph (C)
of paragraph 2 of subdivision (c) of section 10 of the tax law, item (i)

S. 7219--A                         29

of subparagraph (C) of paragraph 1 as amended by chapter 38 of the  laws
of  1997  and subparagraph (C) of paragraph 2 as added by chapter 129 of
the laws of 2000, are amended to read as follows:
  (i)  three-fourths  of  the total [article twelve-A and] article thir-
teen-A taxes properly payable by such taxpayer for the comparable  month
of the preceding year; or
  (C) A taxpayer having liability described in subparagraph (C) of para-
graph  one  of  subdivision  (b)  of this section shall file the returns
required under and pursuant to the authority of [articles twelve-A  and]
ARTICLE thirteen-A of this chapter and shall pay to the commissioner the
amounts required to be paid with such returns, less the amounts remitted
by  electronic funds transfer or certified check under this section, for
each of the periods for which such returns are filed under and  pursuant
to the authority of such articles.
  S  24.  Paragraphs 2 and 3 of subdivision (g) of section 10 of the tax
law, paragraph 2 as amended by chapter 129 of the laws of 2000 and para-
graph 3 as amended by chapter 38 of the laws of  1997,  are  amended  to
read as follows:
  (2)  Failure  to  pay  or  late  payment.  (A)  A taxpayer required or
approved to participate in the program prescribed by  this  section  who
fails to make a payment of tax by electronic funds transfer or certified
check on or before the applicable due date prescribed by subdivision (c)
of  this section, or who fails to pay any tax required to be remitted on
or before such applicable due date shall,  in  the  case  of  the  taxes
imposed  pursuant  to article twenty-eight and pursuant to the authority
of article twenty-nine of this chapter, be liable for penalty and inter-
est as prescribed by subparagraphs (i) and  (ii)  of  paragraph  one  of
subdivision  (a)  of section eleven hundred forty-five of this chapter[,
and in the case of the taxes imposed by and pursuant to the authority of
articles twelve-A and thirteen-A of this chapter, be liable for  penalty
and  interest as prescribed by paragraphs (a) and (b) of subdivision one
of section two hundred eighty-nine-b of this chapter].
  (B) Notwithstanding any provision of law to the contrary, if a taxpay-
er described in subparagraph (B) or (C) of paragraph one of  subdivision
(b)  of  this section fails to make a payment of tax by electronic funds
transfer or certified  check  on  or  before  the  applicable  due  date
prescribed  by  subdivision  (c) of this section or fails to pay any tax
required to be remitted on  or  before  such  applicable  due  date,  as
prescribed  by subparagraph (A) of this paragraph, and also fails to pay
or pay over to the commissioner the amounts required to be paid or  paid
over  with  the applicable return described in paragraph two of subdivi-
sion (c) of this section due the twentieth day of the  following  month,
then  penalty  and  interest for such additional failure, as provided by
subparagraphs (i) and (ii)  of  paragraph  one  of  subdivision  (a)  of
section eleven hundred forty-five of this chapter [or paragraphs (a) and
(b)  of  subdivision  one  of  section two hundred eighty-nine-b of this
chapter, as the case may be], shall be computed on the amount  equal  to
the  difference between the total of the amount of tax due or determined
to be due with such return and the total of the amount of  tax  required
to  be paid by electronic funds transfer or certified check on or before
the applicable due date prescribed by subdivision (c)  of  this  section
for the preceding month.
  (3)  Failure to file required returns. A taxpayer required or approved
to participate in the program prescribed by this  section  who  complies
with  the  payment  requirements  of  subdivision  (c)  of  this section
(including the payment of remaining liabilities described  in  paragraph

S. 7219--A                         30

two  of  such  subdivision),  but  who fails to file any return required
pursuant to article [twelve-A,] thirteen-A, twenty-eight or  twenty-nine
of  this  chapter,  as  the  case  may be, for the period for which such
payments  were timely and fully paid or paid over, shall be liable for a
penalty equal to five hundred dollars.
  S 25. Subdivision (h) of section 10 of the  tax  law,  as  amended  by
chapter 38 of the laws of 1997, is amended to read as follows:
  (h)  Administration. Except as otherwise provided in this section, the
provisions of part IV of article  twenty-eight  of  this  chapter  shall
apply  to  the  administration  of  and  procedures  with respect to the
provisions of this section relating to the taxes described  by  subpara-
graph  (A)  of  paragraph  one  of  subdivision (b) of this section, the
provisions of section eleven hundred two of this chapter relating to the
administration of and procedures with  respect  to  such  section  shall
apply  to  the  administration  of  and  procedures  with respect to the
provisions of this section relating to the taxes described  by  subpara-
graph (B) of such paragraph one[, and the provisions of article twelve-A
relating  to  the  administration of and procedures with respect to such
article shall apply to the provisions of this section  relating  to  the
taxes described in subparagraph (C) of such paragraph one].
  S  26.  Subdivision  twentieth  and paragraph a of subdivision twenty-
sixth of section 171 of the tax law, subdivision twentieth as amended by
chapter 282 of the laws of 1986 and paragraph a of  subdivision  twenty-
sixth  as amended by section 1 of subpart D of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  Twentieth. Have authority, of his  own  motion,  to  abate  any  small
unpaid  balance  of  an  assessment  of tax, or any liability in respect
thereof, under articles [twelve-A,] eighteen, twenty  or  twenty-one  of
this  chapter,  if  such  commissioner  determines  under  uniform rules
prescribed by him that the administration and collection costs  involved
would  not  warrant  collection of the amount due. He may also abate, of
his own motion, the unpaid portion of the  assessment  of  any  of  such
taxes,  or  any  liability  in  respect  thereof,  which is excessive in
amount, or is assessed after the expiration of the period of  limitation
properly applicable thereto, or is erroneously or illegally assessed. No
claim  for  abatement  under  this subdivision shall be filed for any of
such taxes.
  a. Set the overpayment and underpayment rates of interest for purposes
of articles [twelve-A,] eighteen, twenty and twenty-one of this chapter.
Such rates shall be the overpayment and underpayment rates  of  interest
set  pursuant  to  subsection  (e) of section one thousand ninety-six of
this chapter, but the underpayment rate shall not be less than seven and
one-half percent per annum. Any such  rates  set  by  such  commissioner
shall apply to taxes, or any portion thereof, which remain or become due
or  overpaid  (other than overpayments under such article twenty and not
including reimbursements, if any, under any  of  such  articles)  on  or
after the date on which such rates become effective and shall apply only
with  respect to interest computed or computable for periods or portions
of periods occurring in the  period  during  which  such  rates  are  in
effect.  In  computing  the  amount  of any interest required to be paid
under such articles by such commissioner or  by  the  taxpayer,  or  any
other  amount  determined  by reference to such amount of interest, such
interest and such amount shall be compounded daily.
  S 27. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
section  1  of  part  R of chapter 60 of the laws of 2004, is amended to
read as follows:

S. 7219--A                         31

  1. All taxes, interest, penalties and fees collected  or  received  by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
[twelve-A  (except  as otherwise provided in section two hundred eighty-
four-d thereof),] thirteen, thirteen-A (except as otherwise provided  in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except as otherwise provided in section four hundred eighty-two  there-
of),  twenty-one,  twenty-two,  twenty-six,  twenty-six-B,  twenty-eight
(except as otherwise provided in section eleven hundred  two  or  eleven
hundred  three thereof), twenty-eight-A, thirty-one (except as otherwise
provided in section fourteen hundred  twenty-one  thereof),  thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in  one  account  with  such  responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of  the
comptroller.  Such  an account may be established in one or more of such
depositories. Such deposits shall be kept separate and  apart  from  all
other  money in the possession of the comptroller. The comptroller shall
require adequate security from  all  such  depositories.  Of  the  total
revenue  collected  or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount  as  the
commissioner may determine to be necessary for refunds or reimbursements
under such articles of this chapter and article ten thereof out of which
amount  the comptroller shall pay any refunds or reimbursements to which
taxpayers shall be entitled under the provisions  of  such  articles  of
this  chapter  and  article  ten thereof. The commissioner and the comp-
troller shall maintain a system of accounts showing the amount of reven-
ue collected or received from each of the taxes imposed  by  such  arti-
cles. The comptroller, after reserving the amount to pay such refunds or
reimbursements,  shall,  on  or  before the tenth day of each month, pay
into the state treasury to the credit of the general  fund  all  revenue
deposited  under  this  section  during the preceding calendar month and
remaining to the comptroller's credit on the last day of such  preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two  of  this  chapter  and  the interest on such amount which is
certified to the comptroller by the commissioner as  the  amount  to  be
credited against past-due support pursuant to subdivision six of section
one  hundred  seventy-one-c  of  this [chapter] ARTICLE, (ii) and except
that the comptroller shall pay to the New York  state  higher  education
services  corporation  and  the state university of New York or the city
university of New York respectively that amount of overpayments  of  tax
imposed  by  article twenty-two of this chapter and the interest on such
amount which is certified to the comptroller by the commissioner as  the
amount  to  be  credited  against the amount of defaults in repayment of
guaranteed student loans and state university loans or  city  university
loans  pursuant to subdivision five of section one hundred seventy-one-d
and subdivision six of section one hundred seventy-one-e of this  [chap-
ter]  ARTICLE,  (iii)  and except further that, notwithstanding any law,
the comptroller shall credit to the revenue arrearage account,  pursuant
to  section  ninety-one-a of the state finance law, that amount of over-
payment of tax imposed by  article  nine,  nine-A,  twenty-two,  thirty,
thirty-A,  thirty-B, thirty-two or thirty-three of this chapter, and any
interest thereon, which is certified to the comptroller by  the  commis-
sioner as the amount to be credited against a past-due legally enforcea-
ble debt owed to a state agency pursuant to paragraph (a) of subdivision

S. 7219--A                         32

six  of  section  one  hundred  seventy-one-f of this article, provided,
however, he shall credit to the special offset fiduciary account, pursu-
ant to section ninety-one-c of the state finance law,  any  such  amount
creditable  as  a liability as set forth in paragraph (b) of subdivision
six of section one hundred  seventy-one-f  of  this  article,  (iv)  and
except  further  that  the comptroller shall pay to the city of New York
that amount of overpayment of tax imposed by article nine, nine-A, twen-
ty-two, thirty, thirty-A, thirty-B, thirty-two, or thirty-three of  this
chapter and any interest thereon that is certified to the comptroller by
the  commissioner  as the amount to be credited against city of New York
tax warrant judgment debt pursuant to section one hundred  seventy-one-l
of  this  article, (v) and except further that the comptroller shall pay
to a non-obligated spouse that amount of overpayment of tax  imposed  by
article twenty-two of this chapter and the interest on such amount which
has  been  credited  pursuant  to section one hundred seventy-one-c, one
hundred seventy-one-d, one hundred seventy-one-e, one  hundred  seventy-
one-f  or  one hundred seventy-one-l of this article and which is certi-
fied to the comptroller by the commissioner as the amount due such  non-
obligated  spouse pursuant to paragraph six of subsection (b) of section
six hundred fifty-one of this chapter; and (vi)  the  comptroller  shall
deduct  a  like amount which the comptroller shall pay into the treasury
to the credit of the general fund from amounts subsequently  payable  to
the department of social services, the state university of New York, the
city  university  of  New  York, or the higher education services corpo-
ration, or the revenue arrearage account  or  special  offset  fiduciary
account  pursuant  to  section ninety-one-a or ninety-one-c of the state
finance law, as the case may be, whichever had been credited the  amount
originally  withheld  from  such  overpayment, and (vii) with respect to
amounts originally withheld from such overpayment  pursuant  to  section
one  hundred  seventy-one-l  of this article and paid to the city of New
York, the comptroller shall collect a like amount from the city  of  New
York.
  S 28. Paragraph (c) of subdivision 1 of section 183 of the tax law, as
amended by chapter 2 of the laws of 1995, is amended to read as follows:
  (c)  Notwithstanding  the provisions of paragraph (b) of this subdivi-
sion, during the period that the state  tax  on  motor  fuel,  [computed
without  regard  to  any  reimbursement allowable under paragraph (d) of
subdivision three of section two hundred eighty-nine-c of this chapter,]
exceeds two cents per gallon, the corporations, herein classed as "taxi-
cab" and "omnibus," other than  corporations  described  in  subdivision
nine  of  this  section,  shall be taxed under the provisions of article
nine-a of this chapter and not under this section.
  S 29. Paragraph (a) of subdivision 2 of section 184 of the tax law, as
amended by chapter 485 of the laws  of  1988,  is  amended  to  read  as
follows:
  (a)  During  the  period  that  the state tax on motor fuel, [computed
without regard to any reimbursement allowable  under  paragraph  (d)  of
subdivision three of section two hundred eighty-nine-c of this chapter,]
exceeds  two  cents per gallon the corporations herein classed as "taxi-
cab" and "omnibus", other than corporations described in  paragraph  (b)
of  this  subdivision,  shall  be  taxed under the provisions of article
nine-a of [the tax law] THIS CHAPTER and as other business  corporations
are taxed and not upon their gross receipts.
  S  30. Paragraphs 1 and 2 of subdivision (b) of section 300 of the tax
law, paragraph 1 as amended by chapter 170 of the laws of 1994 and para-

S. 7219--A                         33

graph 2 as amended by section 17 of part K of chapter 61 of the laws  of
2011, are amended to read as follows:
  (1)  With  respect to motor fuel, every corporation and unincorporated
business (i) importing motor fuel or causing motor fuel to  be  imported
into  the  state for use, distribution, storage or sale in the state, or
(ii) producing, refining, manufacturing or compounding motor fuel in the
state. Provided, however, a corporation or unincorporated business which
has been issued a liquefied petroleum gas fuel permit under section [two
hundred eighty-three-c of this chapter] ONE HUNDRED NINETY-NINE-S OF THE
GENERAL BUSINESS LAW and which does not import  motor  fuel  other  than
liquefied  petroleum  gas  fuel or cause motor fuel other than liquefied
petroleum gas fuel to be imported into the state for use,  distribution,
storage or sale in the state or produce, refine, manufacture or compound
motor  fuel  other  than liquefied petroleum gas fuel in the state shall
not be considered a petroleum business with respect to motor fuel within
the meaning of this paragraph. Motor fuel brought into this state in the
ordinary fuel tank connecting  with  the  engine  of  a  motor  vehicle,
airplane,  or  other  conveyance,  but not a vessel (other than a recre-
ational motor boat or a commercial fishing vessel, as defined in  subdi-
vision (j) of this section, if the motor fuel imported into and consumed
in  this state is used to operate such vessel while it is engaged in the
harvesting of fish for sale), propelled by the use of  such  motor  fuel
and  to  be  used  only  in  the  operation thereof, shall not be deemed
imported within the meaning of this article, if not  removed  from  such
tank except as used in the propulsion of such engine.
  (2)  With respect to diesel motor fuel, every corporation and unincor-
porated business (i) importing diesel motor fuel or causing diesel motor
fuel to be imported into the state for  use,  distribution,  storage  or
sale  in the state, (ii) producing, refining, manufacturing or compound-
ing diesel motor fuel within the state, (iii) making a sale  or  use  of
diesel  motor fuel in the state, other than a retail sale not in bulk or
self-use of diesel motor fuel which has been the  subject  of  a  retail
sale  to such corporation or unincorporated business, or (iv) registered
by the department as a "distributor of kero-jet fuel only" [pursuant  to
the provisions of subdivision two of section two hundred eighty-two-a of
this chapter]. Diesel motor fuel brought into this state in the ordinary
fuel  tank  connecting  with  the engine of a motor vehicle, airplane or
other conveyance, but not a vessel (other than a recreational motor boat
or a commercial fishing vessel as defined in  subdivision  (j)  of  this
section  if  the  diesel  motor  fuel imported into and consumed in this
state is used to operate such vessel while it is engaged in the harvest-
ing of fish for sale), propelled by the use of such  diesel  motor  fuel
and  to  be  used  only  in  the  operation thereof, shall not be deemed
imported within the meaning of this article, if not  removed  from  such
tank except as used in the propulsion of such engine.
  S 31. Subdivisions (c) and (d) of section 300 of the tax law, subdivi-
sion (c) as amended by section 17 of part K of chapter 61 of the laws of
2011  and  subdivision  (d) as added by chapter 190 of the laws of 1990,
are amended to read as follows:
  (c) The terms (1) "diesel motor fuel" means such term  as  defined  in
subdivision  [fourteen]  TEN  of section [two hundred eighty-two of this
chapter] ONE HUNDRED NINETY-NINE-O OF THE GENERAL BUSINESS LAW, and
  (2) "highway diesel motor fuel" means [such term as defined in  subdi-
vision  sixteen-a of section two hundred eighty-two of this chapter] ANY
DIESEL MOTOR FUEL WHICH IS NOT NON-HIGHWAY DIESEL MOTOR FUEL, and

S. 7219--A                         34

  (3) "non-highway diesel motor fuel" means [such  term  as  defined  in
subdivision  sixteen  of section two hundred eighty-two of this chapter]
ANY DIESEL MOTOR FUEL THAT IS DESIGNATED FOR USE OTHER THAN ON A  PUBLIC
HIGHWAY  (EXCEPT  FOR  THE USE OF THE PUBLIC HIGHWAY BY FARMERS TO REACH
ADJACENT  LANDS),  AND  IS  DYED DIESEL MOTOR FUEL, MEANING DIESEL MOTOR
FUEL WHICH HAS BEEN DYED IN ACCORDANCE  WITH  AND  FOR  THE  PURPOSE  OF
COMPLYING  WITH  THE  PROVISIONS OF 26 USC S 4082(A) AND THE REGULATIONS
THEREUNDER, AS MAY BE AMENDED FROM TIME TO TIME.
  (4) As used in this article, references to persons or petroleum  busi-
nesses  registered  under article [twelve-A of this chapter] ELEVEN-C OF
THE GENERAL BUSINESS LAW as distributors  of  diesel  motor  fuel  shall
include  all  such persons or petroleum businesses registered under such
article as distributors of diesel motor fuel and  persons  or  petroleum
businesses  operating  under  valid  limited  registrations  relating to
persons or petroleum businesses making retail sales of diesel motor fuel
to consumers solely for [the purposes described in subparagraph  (i)  of
paragraph  (b)  of subdivision three of section two hundred eighty-two-a
of this chapter] CONSUMPTION OTHER THAN ON THE PUBLIC HIGHWAYS  OF  THIS
STATE  (EXCEPT  FOR  THE  USE  OF THE PUBLIC HIGHWAY BY FARMERS TO REACH
ADJACENT FARMLANDS), but such references shall not include  persons  and
petroleum  businesses registered as "distributors of kero-jet fuel only"
[pursuant to the provisions of subdivision two of  section  two  hundred
eighty-two-a of this chapter].
  (d)  The  term  "motor fuel" means such term as defined in subdivision
two of section [two hundred eighty-two  of  this  chapter]  ONE  HUNDRED
NINETY-NINE-O OF THE GENERAL BUSINESS LAW.
  S  32.  Subdivisions  (o),  (p), (q) and (r) of section 300 of the tax
law, as added by section 3 of part W-1 of chapter 109  of  the  laws  of
2006, are amended to read as follows:
  (o)  The  term  "E85"  [shall  have the same meaning as in subdivision
twenty-two of section two hundred eighty-two of this  chapter]  MEANS  A
FUEL  BLEND  CONSISTING  OF ETHANOL AND MOTOR FUEL, WHICH MEETS THE ASTM
INTERNATIONAL ACTIVE STANDARD D5798 FOR FUEL ETHANOL.
  (p) The term "B20" [shall have the  same  meaning  as  in  subdivision
twenty-three  of section two hundred eighty-two of this chapter] MEANS A
MIXTURE CONSISTING BY VOLUME OF TWENTY PERCENT BIODIESEL AND THE REMAIN-
DER OF WHICH IS DIESEL MOTOR FUEL. "BIODIESEL" SHALL MEAN EITHER "QUALI-
FIED BIODIESEL" OR "UNQUALIFIED BIODIESEL". "QUALIFIED BIODIESEL"  MEANS
A  DIESEL  MOTOR  FUEL  SUBSTITUTE  PRODUCED FROM NONPETROLEUM RENEWABLE
RESOURCES THAT MEETS THE REGISTRATION REQUIREMENTS FOR  FUELS  AND  FUEL
ADDITIVES  ESTABLISHED  BY  THE  ENVIRONMENTAL  PROTECTION  AGENCY UNDER
SECTION 211 OF THE CLEAN AIR ACT (42 U.S.C. 7545)  AND  THAT  MEETS  THE
ASTM  INTERNATIONAL  ACTIVE STANDARD D6751 FOR BIODIESEL FUEL. "UNQUALI-
FIED BIODIESEL" MEANS A  DIESEL  MOTOR  FUEL  SUBSTITUTE  PRODUCED  FROM
NONPETROLEUM  RENEWABLE  RESOURCES  THAT DOES NOT MEET THE ASTM INTERNA-
TIONAL ACTIVE STANDARD D6751 FOR BIODIESEL FUEL.
  (q) The term "CNG" [shall have the  same  meaning  as  in  subdivision
twenty-four  of  section  two  hundred eighty-two of this chapter] MEANS
FUEL COMPRISED PRIMARILY OF METHANE,  STORED  IN  EITHER  A  GASEOUS  OR
LIQUID  STATE, SUITABLE FOR USE AND CONSUMPTION IN THE ENGINE OF A MOTOR
VEHICLE.
  (r) The term "hydrogen" [shall have the same meaning as in subdivision
twenty-five of section two hundred eighty-two  of  this  chapter]  MEANS
FUEL COMPRISED PRIMARILY OF MOLECULAR HYDROGEN, STORED IN EITHER A GASE-
OUS OR LIQUID STATE, SUITABLE FOR USE AND CONSUMPTION IN THE ENGINE OF A
MOTOR VEHICLE.

S. 7219--A                         35

  S  33.  Subdivision (l) of section 301-a of the tax law, as amended by
section 5 of part K of chapter 61 of the laws of  2005,  is  amended  to
read as follows:
  (l)  Taxes  imposed  on  qualified reservations. In furtherance of the
joint administration of [the taxes imposed by article twelve-A  of  this
chapter and] the taxes imposed by this article, the provisions of FORMER
section  two  hundred eighty-four-e of this chapter concerning the sales
of motor fuel and Diesel motor fuel  on  qualified  Indian  reservations
shall  apply  to  the payment and pass-through of the petroleum business
tax in the same manner and with the same force  and  effect  as  if  the
provisions of such section had been incorporated in full into this arti-
cle, except to the extent that any such provision is either inconsistent
with a provision of this article or not relevant thereto.
  S  34. Paragraphs 1, 2, 3, 6 and 7 of subdivision (a) of section 301-b
of the tax law, paragraphs 1, 2 and 3 as added by  chapter  190  of  the
laws of 1990 and paragraphs 6 and 7 as added by section 4 of part W-1 of
chapter 109 of the laws of 2006, are amended to read as follows:
  (1)  Kerosene sold or used by a petroleum business which is registered
under article [twelve-A of this chapter] ELEVEN-C OF THE  GENERAL  BUSI-
NESS LAW as a distributor of diesel motor fuel so long as (i) such prod-
uct  has  not  been blended or mixed with any other product constituting
diesel motor fuel or motor fuel or a residual petroleum product and (ii)
such product is not used by the petroleum business as fuel to operate  a
motor  vehicle  or sold by such petroleum business to a consumer for use
as fuel to operate a motor vehicle.
  (2) Kero-jet fuel (i) sold by a petroleum business which is registered
under article [twelve-A of this chapter] ELEVEN-C OF THE  GENERAL  BUSI-
NESS  LAW  as  a  distributor of diesel motor fuel to a consumer for use
exclusively as jet aircraft fuel or to a petroleum  business  registered
under  such article [twelve-A] ELEVEN-C OF THE GENERAL BUSINESS LAW as a
"distributor of kero-jet fuel only" where such fixed  base  operator  is
engaged solely in making or offering to make retail sales not in bulk of
kero-jet fuel directly into the fuel tank of an airplane for the purpose
of  operating  such  airplane, (ii) used by a petroleum business, regis-
tered under article [twelve-A of this chapter] ELEVEN-C OF  THE  GENERAL
BUSINESS  LAW  as a distributor of diesel motor fuel, exclusively as jet
aircraft fuel, or (iii) sold at retail not in bulk by a petroleum  busi-
ness registered under article [twelve-A of this chapter] ELEVEN-C OF THE
GENERAL BUSINESS LAW as a "distributor of kero-jet fuel only" where such
fuel  is delivered directly into the fuel tank of a jet airplane for use
in the operation of such airplane.
  (3) Aviation gasoline, meeting the specifications set forth in  Ameri-
can  Standard Testing Material Specification D910 or Military Specifica-
tion MIL-G-5572, which is imported or caused to be  imported  into  this
state  by  a  petroleum  business  which  is  registered  under  article
[twelve-A of this chapter] ELEVEN-C OF THE GENERAL  BUSINESS  LAW  as  a
distributor   of  motor  fuel  or  produced,  refined,  manufactured  or
compounded in this state by such a petroleum business.
  (6) E85 imported or caused to be imported into this state or produced,
refined, manufactured or compounded in this state by a  petroleum  busi-
ness registered under article [twelve-A of this chapter] ELEVEN-C OF THE
GENERAL  BUSINESS  LAW, as a distributor of motor fuel, and then sold by
such petroleum business and delivered to a filling station and placed in
a storage tank of such filling station for  such  E85  to  be  dispensed
directly into a motor vehicle for use in the operation of such vehicle.

S. 7219--A                         36

  (7)(i)  Partial  B20  exemption. B20 imported or caused to be imported
into this state or produced, refined, manufactured or compounded in this
state by a petroleum business registered under article [twelve-A of this
chapter] ELEVEN-C OF THE GENERAL  BUSINESS  LAW,  as  a  distributor  of
diesel motor fuel, and then sold by such petroleum business.
  (ii)  Calculation  of  partial  exemption.  The  amount of the partial
exemption under this paragraph shall be determined  by  multiplying  the
quantity  of  B20 times twenty percent of the applicable taxes otherwise
imposed by this article on such fuel.
  S 35. The opening paragraph of paragraph 1 and the  opening  paragraph
of  paragraph  2 of subdivision (b) of section 301-b of the tax law, the
opening paragraph of paragraph 1 as added by chapter 190 of the laws  of
1990  and  the opening paragraph of paragraph 2 as amended by section 21
of part K of chapter 61 of the laws of 2011,  are  amended  to  read  as
follows:
  Motor  fuel  imported  or  caused  to  be  imported into this state or
produced, refined, manufactured or compounded in this state by a  petro-
leum  business  registered  under  article  [twelve-A  of  this chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW, as a distributor  of  motor  fuel,
where
  Highway  diesel motor fuel imported or caused to be imported into this
state or produced, refined, manufactured or compounded in this state  by
a petroleum business registered under article [twelve-A of this chapter]
ELEVEN-C  OF  THE GENERAL BUSINESS LAW, as a distributor of diesel motor
fuel, which is sold by such petroleum business to a purchaser  who  then
exports  such  highway diesel motor fuel from this state for sale or use
outside the state where
  S 36. Paragraphs 1, 2 and 3 of subdivision (c) and paragraphs 1 and  2
of  subdivision  (d)  of  section  301-b  of the tax law, paragraph 1 of
subdivision (c) as added by chapter 190 of the laws of 1990,  paragraphs
2  and 3 of subdivision (c) and paragraphs 1 and 2 of subdivision (d) as
amended by section 21 of part K of chapter 61 of the laws of  2011,  are
amended to read as follows:
  (1)  Motor  fuel  imported or caused to be imported into this state or
produced, refined, manufactured or compounded in this state by a  petro-
leum  business  registered  under  article  [twelve-A  of  this chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW, as a distributor  of  motor  fuel,
and then sold by such petroleum business to an organization described in
paragraph  one  or  two  of  subdivision  (a)  of section eleven hundred
sixteen of this chapter where such motor fuel is used by such  organiza-
tion for its own use or consumption.
  (2)  Highway  diesel motor fuel imported or caused to be imported into
this state or produced, refined, manufactured or compounded by a  petro-
leum business registered under article [twelve-A of this chapter]
 ELEVEN-C  OF THE GENERAL BUSINESS LAW, as a distributor of diesel motor
fuel, and then sold  by  such  petroleum  business  to  an  organization
described  in  paragraph one or two of subdivision (a) of section eleven
hundred sixteen of this chapter where such highway diesel motor fuel  is
used by such organization for its own use or consumption.
  (3)  Non-highway Diesel motor fuel sold by a petroleum business regis-
tered under article [twelve-A of this chapter] ELEVEN-C OF  THE  GENERAL
BUSINESS  LAW  as  a distributor of diesel motor fuel to an organization
described in paragraph one or two of subdivision (a) of  section  eleven
hundred sixteen of this chapter where such non-highway diesel motor fuel
is used by such organization for its own use or consumption.

S. 7219--A                         37

  (1) Total residential heating exemption. Non-highway diesel motor fuel
sold  by a petroleum business registered under article [twelve-A of this
chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW as a distributor of diesel
motor fuel or residual petroleum product sold by  a  petroleum  business
registered  under  this article as a residual petroleum product business
to the consumer exclusively for residential  heating  purposes  only  if
such  non-highway  diesel  motor  fuel  is delivered into a storage tank
which is not equipped with a hose or other apparatus by which such  fuel
can  be dispensed into the fuel tank of a motor vehicle and such storage
tank is attached to the heating unit burning such fuel.
  (2) Partial non-residential heating exemption. (A) Non-highway  diesel
motor  fuel  sold  by  a  petroleum  business  registered  under article
[twelve-A of this chapter] ELEVEN-C OF THE GENERAL  BUSINESS  LAW  as  a
distributor of diesel motor fuel or residual petroleum product sold by a
petroleum business registered under this article as a residual petroleum
product  business  to  the  consumer exclusively for heating, other than
residential heating purposes only if such non-highway diesel motor  fuel
is  delivered  into  a storage tank which is not equipped with a hose or
other apparatus by which such fuel can be dispensed into the  fuel  tank
of a motor vehicle and such storage tank is attached to the heating unit
burning such fuel.
  (B) Calculation of partial exemption. The partial exemption under this
paragraph shall be determined by multiplying the quantity of non-highway
diesel  motor  fuel  and  residual  petroleum  product  eligible for the
exemption times the sum of the then current rate of the supplemental tax
imposed by section three hundred one-j of  this  article  and  forty-six
percent  of  the  then  current rate of the tax imposed by section three
hundred one-a of this article, with respect to the specific  non-highway
diesel  motor  fuel  or residual petroleum product rate, as the case may
be.
  S 37. Subdivision (e) of section 301-b of the tax law, as  amended  by
section  4  of  part  E of chapter 59 of the laws of 2012, is amended to
read as follows:
  (e) Sales of qualified biodiesel, non-highway diesel  motor  fuel  and
residual  petroleum  product  to registered distributors of diesel motor
fuel and registered residual petroleum product businesses.
  (1) Qualified biodiesel and non-highway Diesel motor fuel  sold  by  a
person  registered  under article [twelve-A of this chapter] ELEVEN-C OF
THE GENERAL BUSINESS LAW as a distributor of  diesel  motor  fuel  to  a
person  registered under such article [twelve-A] ELEVEN-C OF THE GENERAL
BUSINESS LAW as a distributor of diesel motor fuel where  such  sale  is
not  a  retail  sale  or  a  sale  that involves a delivery at a filling
station or into a repository equipped with a hose or other apparatus  by
which  such  qualified biodiesel or non-highway Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle.
  (2) Residual petroleum product sold by a person registered under  this
article  as a residual petroleum product business to a person registered
under this article as a residual petroleum product business  where  such
sale  is not a retail sale. Provided, however, that the commissioner may
require such documentary proof to qualify for any exemption provided  in
this  section  as  the  commissioner  deems  appropriate[, including the
expansion of any certifications required pursuant to section two hundred
eighty-five-a or two hundred eighty-five-b of this chapter to cover  the
taxes imposed by this article].
  (3)  "Qualified  biodiesel" means [such term as defined in subdivision
twenty-three of section two hundred eighty-two of this chapter] A DIESEL

S. 7219--A                         38

MOTOR FUEL SUBSTITUTE PRODUCED  FROM  NONPETROLEUM  RENEWABLE  RESOURCES
THAT  MEETS  THE  REGISTRATION REQUIREMENTS FOR FUELS AND FUEL ADDITIVES
ESTABLISHED BY THE ENVIRONMENTAL PROTECTION AGENCY UNDER SECTION 211  OF
THE CLEAN AIR ACT (42 U.S.C. 7545) AND THAT MEETS THE ASTM INTERNATIONAL
ACTIVE STANDARD D6751 FOR BIODIESEL FUEL.
  S  38.  Paragraph  2 of subdivision (b) and paragraph 3 of subdivision
(d) of section 301-e of the tax law, paragraph 2 of subdivision  (b)  as
added  by  chapter  2 of the laws of 1995 and paragraph 3 of subdivision
(d) as added by chapter 309 of the laws of 1996, are amended to read  as
follows:
  (2)  Partial  credit  or  refund  with respect to aviation gasoline. A
distributor of motor fuel shall be  entitled  to  a  partial  credit  or
refund of the tax paid under this section on aviation gasoline sold to a
fixed  base operator registered under article [twelve-a of this chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW as a  "retail  seller  of  aviation
gasoline"  under  the circumstances described in FORMER subparagraph (i)
of paragraph (b) of subdivision one-a of  section  two  hundred  eighty-
nine-c of this chapter. Provided, that in order to qualify for the cred-
it  or refund the amount of tax claimed as a credit or refund shall have
been paid or assumed on such sale by such distributor and shall have not
been passed on to such "retail seller of aviation gasoline". A distribu-
tor of motor fuel, also registered as a "retail seller of aviation gaso-
line", shall be entitled to a partial  credit  or  refund  for  aviation
gasoline  delivered  and stored at its fixed base operations premises in
such subparagraph (i), and such credit or refund  shall  accrue  at  the
time  the  fuel  is so delivered and placed in such storage facility. An
airline which is registered as a distributor of  motor  fuel  and  which
imports  aviation  gasoline  into  this  state for use in its airplanes,
where delivery and storage take place as described in such  subparagraph
(i),  shall also be allowed such partial credit or refund of tax on such
fuel so imported and used exclusively in the operation of its airplanes.
An aviation fuel business, taxed as such, by reason  of  importation  in
the  fuel  tank of an airplane shall also be allowed such partial credit
or refund for aviation gasoline consumed in this state.  The  amount  of
the  partial credit or refund allowable under this subparagraph shall be
the excess of tax which exceeds five and two-tenths  cents  per  gallon.
Provided,  that such five and two-tenths cents rate used to compute this
partial credit and refund shall be adjusted at the same time as the rate
of the aviation gasoline component imposed  by  paragraph  one  of  this
subdivision,  and the methods of making such adjustments to this partial
credit and refund shall be the same as the method used for such rates.
  (3) Any purchaser of aviation gasoline in this state who consumes such
aviation gasoline exclusively as aviation fuel in the operation  of  its
aircraft shall be entitled to a partial reimbursement of the tax imposed
by this section with respect to aviation gasoline which was purchased by
such  purchaser  and upon which such purchaser paid or absorbed the full
amount of the tax imposed by this section (where no  partial  credit  or
refund  under  paragraph  two  of  subdivision  (b)  of this section was
provided with  respect  to  such  aviation  gasoline)  where:  (i)  such
purchaser  purchases  the  aviation  gasoline from a fixed base operator
which qualifies as a retail seller of aviation gasoline but  is  not  so
registered  under  article  [twelve-A  of  this chapter] ELEVEN-C OF THE
GENERAL BUSINESS LAW, or (ii)  such  purchaser  purchases  the  aviation
gasoline in bulk from a distributor of motor fuel registered under arti-
cle  [twelve-A  of  this  chapter]  ELEVEN-C OF THE GENERAL BUSINESS LAW
where such distributor delivers such aviation gasoline directly  into  a

S. 7219--A                         39

bulk storage facility of the purchaser which is at a fixed and permanent
place  at  an  airport  within this state and is used solely to fill the
fuel tanks of its aircraft for use in the operations thereof. The amount
of  the  reimbursement  allowable under this paragraph shall be equal to
the amount of the partial credit or refund allowable under paragraph two
of subdivision (b) of this section.
  S 39. Subdivisions (b), (c) and (d) of section 301-c of the  tax  law,
subdivision  (b)  as  amended  and  subdivisions (c) and (d) as added by
chapter 330 of the laws of 1991, are amended to read as follows:
  (b) Sales to New York state and the federal government. Motor fuel and
diesel motor fuel purchased in this state and sold by such purchaser  in
this  state  to  an  organization  described  in paragraph one or two of
subdivision (a) of section eleven hundred sixteen of this chapter  where
(i)  such motor fuel or diesel motor fuel is for such organization's own
use or consumption, (ii) the tax imposed pursuant to  this  article  has
been  paid  with respect to such motor fuel or diesel motor fuel and the
entire amount of such tax has been absorbed by such purchaser and, (iii)
such purchaser possesses documentary proof satisfactory to  the  commis-
sioner  of  taxation  and finance evidencing the absorption by it of the
entire amount of the tax imposed pursuant  to  this  article.  Provided,
however,  that  the  commissioner  of taxation and finance shall require
such documentary proof to qualify for any reimbursement of tax  provided
by  this  section  as the commissioner deems appropriate[, including the
expansion of any certification required pursuant to section two  hundred
eighty-five-a  or two hundred eighty-five-b of this chapter to cover the
taxes imposed pursuant to this article].
  (c) Motor fuel and diesel motor fuel used by certain omnibus carriers.
Motor fuel and diesel motor fuel purchased in this state by  an  omnibus
carrier  and  consumed  by  such  omnibus carrier in the operation of an
omnibus (i) in local transit service in this state[, as described  under
paragraph  (d) of subdivision three of section two hundred eighty-nine-c
of this chapter], pursuant to a certificate of  public  convenience  and
necessity  issued by the commissioner of transportation of this state or
by the interstate commerce commission of the United States  or  pursuant
to  a  contract,  franchise  or  consent between such carrier and a city
having a population of more than one million inhabitants, or any  agency
of  such  city,  or (ii) in the transportation of school children in the
state under a contract made pursuant to the provisions of the  education
law.  Provided,  however,  the  reimbursement  under this subdivision is
available only where the tax imposed pursuant to this article  has  been
paid with respect to such motor fuel or diesel motor fuel and the entire
amount of such tax has been absorbed by such omnibus carrier, where such
omnibus  carrier possesses documentary proof satisfactory to the commis-
sioner of taxation and finance evidencing the absorption by  it  of  the
entire  amount  of the tax imposed pursuant to this article[, and where,
in the case of the reimbursement under clause (i) of  this  subdivision,
such  motor  fuel or diesel motor fuel is included in the gallonage upon
which reimbursement is calculated under  paragraph  (d)  of  subdivision
three  of  section two hundred eighty-nine-c of this chapter and, in the
case of the reimbursement under clause (ii) of  this  subdivision,  such
motor  fuel or diesel motor fuel is included in the gallonage upon which
reimbursement is calculated under  paragraph  (b)  of  such  subdivision
three of section two hundred eighty-nine-c].
  (d)  Motor fuel and diesel motor fuel used by certain nonpublic school
operators. Motor fuel and diesel motor fuel purchased in this state by a
nonpublic school operator, [as defined in subdivision eleven of  section

S. 7219--A                         40

two hundred eighty-two of this chapter] MEANING ANY NONPUBLIC ELEMENTARY
OR SECONDARY SCHOOL WHICH OWNS OR LEASES AND OPERATES ANY VEHICLE SOLELY
AND  EXCLUSIVELY FOR ITS PURPOSES, and consumed by such nonpublic school
operator exclusively in educational related activities. Provided, howev-
er, the reimbursement under this subdivision is available only where the
tax  imposed pursuant to this article has been paid with respect to such
motor fuel or diesel motor fuel and the entire amount of  such  tax  has
been  absorbed  by  such nonpublic school operator, where such nonpublic
school operator possesses documentary proof satisfactory to the  commis-
sioner  of  taxation  and finance evidencing the absorption by it of the
entire amount of the tax imposed pursuant to this  article[,  and  where
such  motor  fuel or diesel motor fuel is included in the gallonage upon
which the reimbursement is calculated under paragraph (e) of subdivision
three of section two hundred eighty-nine-c of this chapter].
  S 40. Section 302 of the tax law, as added by chapter 190 of the  laws
of  1990,  subdivision (b) as amended by section 31 of part K of chapter
61 of the laws of 2011, subdivision (c) as further  amended  by  section
104  of  part  A  of  chapter 62 of the laws of 2011, subdivision (d) as
amended and subdivision (e) as added by chapter 57 of the laws of  1993,
is amended to read as follows:
  S   302.   Registration  of  petroleum  businesses.  (a)  Registration
required.  Each petroleum business with respect to motor  fuel  must  be
registered  with the department of taxation and finance as a distributor
of motor fuel under article [twelve-A of this chapter] ELEVEN-C  OF  THE
GENERAL  BUSINESS  LAW.   Each petroleum business with respect to diesel
motor fuel must be  registered  with  the  department  of  taxation  and
finance as a distributor of diesel motor fuel under article [twelve-A of
this chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW or, where applicable,
as a "distributor of kero-jet fuel only" under such article. Each petro-
leum  business with respect to residual petroleum product must be regis-
tered as a residual petroleum product business under subdivision (b)  of
this section. No petroleum business unless so registered, shall make any
sale,  transfer,  use  or  other disposition of motor fuel, diesel motor
fuel or residual petroleum product within  the  state,  except  a  sale,
transfer, use or other disposition, if any, as to which the state cannot
impose such condition by reason of the United States constitution and of
laws  of  the  United States enacted pursuant thereto. No person, unless
registered as a residual petroleum product business under this  section,
shall (i) import or cause residual petroleum product to be imported into
this  state,  (ii)  produce,  refine,  manufacture  or compound residual
petroleum product within the state, or (iii) make a sale or use of resi-
dual petroleum product in the state other than a  self-use  of  residual
petroleum  product  which  has been the subject of a retail sale to such
person.
  (b) Residual petroleum product  business.  The  department,  upon  the
application  of a corporation or unincorporated business, shall register
such corporation or unincorporated  business  as  a  residual  petroleum
product  business 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  chapter]   ONE   HUNDRED
NINETY-NINE-P  OF THE GENERAL BUSINESS LAW or in subdivision (d) of this
section. The application shall be in such form and contain such informa-
tion 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 chapter] ONE HUNDRED NINETY-NINE-P OF
THE GENERAL BUSINESS LAW relating to registration of distributors  shall

S. 7219--A                         41

be  applicable  to  the registration of residual petroleum product busi-
nesses under this section with the same  force  and  effect  as  if  the
language  of  those  subdivisions  had been incorporated in full in this
section  and  had  expressly  referred  to  the registration of residual
petroleum product businesses and the tax imposed by this  article,  with
such  modification as may be necessary in order to adapt the language of
such provisions to the provisions of  this  article,  provided,  specif-
ically, that the term "distributor" shall be read as "residual petroleum
product  business"  and the term "motor fuel" shall be read as "residual
petroleum product". 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 corporations or unin-
corporated businesses not required to be registered as  distributors  of
motor fuel or diesel motor fuel.
  (c)  Bond  or other security. The commissioner may require a petroleum
business to file with it a bond issued by a surety company  approved  by
the superintendent of financial services as to solvency and responsibil-
ity  and authorized to transact business in this state or other security
acceptable to the commissioner, in such amount as the  commissioner  may
fix  in  an  amount  determined in accordance with rules and regulations
prescribed by the commissioner, to secure the payment of  any  sums  due
from  such petroleum business pursuant to this article. The commissioner
may require that such a bond or other security be filed before a  petro-
leum  business is registered, and the amount thereof may be increased at
any time when in the commissioner's judgment the same is necessary as  a
protection  to the revenues under this article. If securities are depos-
ited as security under this subdivision, such securities shall  be  kept
in the joint custody of the comptroller and the commissioner of taxation
and  finance.  Such  securities  may  be  sold by the commissioner if it
becomes necessary so to do in order to recover any sums  due  from  such
petroleum  business  pursuant to this article, but no such sale shall be
had until after such petroleum business shall have  had  opportunity  to
litigate  the  validity  of any tax if it elects so to do. Upon any such
sale the surplus, if any, above the sums due under this article shall be
returned to such petroleum business. All of the provisions of  paragraph
(b)  of  subdivision  six  of  section [two hundred eighty-three of this
chapter] ONE HUNDRED NINETY-NINE-P OF THE GENERAL BUSINESS LAW  relating
to  increasing  the  amount of the bond or other security required to be
filed pursuant to article [twelve-A of this  chapter]  ELEVEN-C  OF  THE
GENERAL  BUSINESS  LAW  shall  be  applicable to bonds or other security
required to be filed pursuant to this subdivision.
  (d) Refusal to register. [For the purposes of determining  whether  to
refuse  an  application  for registration under article twelve-A of this
chapter as a distributor of motor fuel, diesel motor  fuel  or  kero-jet
fuel  only  or  under this section as a residual petroleum product busi-
ness, the references in subdivision two of section two  hundred  eighty-
three  of this chapter to employees or shareholders under a duty to file
a return under or pursuant to the authority of article twelve-A of  this
chapter or pay the taxes imposed by or pursuant to the authority of such
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  chapter]  ONE  HUNDRED
NINETY-NINE-P OF THE GENERAL BUSINESS LAW, the commissioner  may  refuse

S. 7219--A                         42

to  register  an  applicant as a distributor of motor fuel, diesel motor
fuel or kero-jet fuel only or as a residual petroleum  product  business
where the commissioner ascertains that the applicant, an officer, direc-
tor  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 employ-
ee or shareholder of such applicant under a duty to file a return  under
or  pursuant  to  the  authority of this article [or article twelve-A of
this chapter] or to pay the taxes imposed by or pursuant to the authori-
ty of this article [or article twelve-A of this chapter]  on  behalf  of
the applicant, (1) has committed any of the acts or omissions which are,
or was convicted as, specified in subdivision (e) 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 article twelve-A of this chapter] or pay
the taxes imposed by or pursuant to the authority of  this  article  [or
article  twelve-A of this chapter] 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 (e) of this section within
the preceding five years.
  (e) Cancellation or suspension of  registration.  The  grounds  for  a
cancellation  or suspension of a registration under article [twelve-A of
this chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW as a  distributor  of
motor  fuel,  diesel  motor  fuel  or  kero-jet  fuel only or under this
section as a residual petroleum product business are those grounds spec-
ified in section [two hundred eighty-three of this chapter] ONE  HUNDRED
NINETY-NINE-P  OF  THE  GENERAL  BUSINESS  LAW  and, in addition to such
grounds, the following grounds relating to this article shall apply:
  (1) A registration as a distributor of motor fuel, diesel  motor  fuel
or kero-jet fuel only or as a residual petroleum product business 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  corpo-
ration)  entitling the holder thereof to vote for the election of direc-
tors 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 arti-
cle [or article twelve-A of this chapter] or to pay the taxes imposed by
or pursuant to the authority of this article  [or  article  twelve-A  of
this  chapter] 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 (c) 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 petroleum business without the
prior written approval of the commissioner,

S. 7219--A                         43

  (E) with respect to a petroleum business which is a  corporation,  has
been  dissolved  pursuant to section two hundred three-a of this chapter
and subdivision (d) of section three hundred ten of this article,
  (F)  commits  fraud  or deceit in his or its operations as a petroleum
business or has committed fraud or deceit in procuring his or its regis-
tration,
  (G) has impersonated any person represented to be a petroleum business
under this article but not in fact registered as a distributor of  motor
fuel,  diesel  motor  fuel or kero-jet fuel only or a residual petroleum
product business, or
  (H) has knowingly aided and abetted the distribution  of  motor  fuel,
diesel  motor fuel or residual petroleum product by corporation or unin-
corporated business which such registrant or such other person knows (i)
has not been registered by the commissioner as a  distributor  of  motor
fuel, diesel motor fuel or kero-jet fuel only or as a residual petroleum
product  business and (ii) is a petroleum business pursuant to the terms
of subdivision (b) of section three hundred of this article.
  (2) A registration as a distributor of motor fuel, diesel  motor  fuel
or kero-jet fuel only or as a residual petroleum product business 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  corpo-
ration)  entitling the holder thereof to vote for the election of direc-
tors 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 arti-
cle [or article twelve-A of this chapter] on behalf of  the  registrant,
was  an  officer,  director or partner of another person or was a share-
holder 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 article twelve-A of this  chapter]  or  to  pay  the
taxes  imposed by or pursuant to the authority of this article [or arti-
cle twelve-A of this chapter] 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.
  (f) Cancellation or suspension of registration prior to a hearing. The
grounds  for  cancelling  or  suspending  a  registration  under article
[twelve-A of this chapter] ELEVEN-C OF THE GENERAL  BUSINESS  LAW  as  a
distributor  of  motor  fuel, diesel motor fuel or kero-jet fuel only or
under this section as a residual petroleum product business prior  to  a
hearing  are those specified in subdivision five of section [two hundred
eighty-three of this chapter] ONE HUNDRED NINETY-NINE-P OF  THE  GENERAL
BUSINESS  LAW  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 or nonpayment of any
tax due pursuant to this article if the registrant shall have failed  to
file  such  return  or pay such taxes within ten days after the date the
demand therefor is sent by registered or certified mail to  the  address
of  the distributor or residual petroleum business given in its applica-
tion, or an address substituted therefor as provided in subdivision five
of section [two hundred eighty-three of this chapter] ONE HUNDRED  NINE-
TY-NINE-P OF THE GENERAL BUSINESS LAW,

S. 7219--A                         44

  (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  (c)  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  residual  petroleum  business
without the prior written approval of the commissioner, or
  (4)  with  respect to a petroleum business which is a corporation, the
dissolution or annulment of such corporation pursuant to  section  three
hundred ten of this article.
  S 41. Subdivisions (a) and (i) of section 308 of the tax law, subdivi-
sion (a) as amended by chapter 2 of the laws of 1995 and subdivision (i)
as  amended  by  chapter 190 of the laws of 1990, are amended to read as
follows:
  (a) General.--Every petroleum business subject to tax under this arti-
cle shall monthly, on or before the twentieth day following the close of
its taxable month, file a return which shall state  (i)  the  number  of
gallons  of motor fuel imported or caused to be imported into this state
for use, distribution,  storage  or  sale  in  the  state  or  produced,
refined,  manufactured  or  compounded in the state during the preceding
calendar month, (ii) the number of gallons of diesel motor fuel sold  or
used  or,  with  respect  to  gallonage which prior thereto has not been
included in the measure of the tax imposed by this article, delivered by
the petroleum business to a  filling  station  or  into  the  fuel  tank
connecting  with  the engine of a motor vehicle for use in the operation
thereof during the preceding calendar month, (iii) the number of gallons
of, and the resultant product produced, manufactured or  blended,  using
diesel motor fuel as a component of such resultant product and the sales
of  such  resultant  product, and (iv) the number of gallons of residual
petroleum product sold or used in this state and the sales of such resi-
dual petroleum product, for the period covered by such return.  A  resi-
dual  petroleum  business  shall  include  in  its reports the number of
gallons of  residual  petroleum  product  imported  into  the  state  or
purchased  in  this  state,  the  number of gallons of diesel motor fuel
purchased in this state and the number of gallons of, and the  resultant
product  produced,  manufactured  or blended by such petroleum business,
using diesel motor fuel as a component of such  resultant  product.  The
commissioner  of  taxation and finance may permit the filing of a return
on a quarterly basis in the case of  a  petroleum  business  which  only
makes sales of diesel motor fuel solely for residential heating purposes
and  which  is  registered  under  article  [twelve-A  of  this chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW as a diesel motor fuel  distributor
under  a  limited  registration applicable only to the importation, sale
and distribution of diesel motor fuel for  [the  purposes  described  in
subparagraph  (i)  of  paragraph (b) of subdivision three of section two
hundred eighty-two-a of this chapter]  CONSUMPTION  OTHER  THAN  ON  THE
PUBLIC  HIGHWAYS OF THIS STATE (EXCEPT FOR THE USE OF THE PUBLIC HIGHWAY
BY FARMERS TO REACH ADJACENT FARMLANDS) or in the case  of  a  petroleum
business  registered  as a "distributor of kero-jet fuel only" [pursuant
to the provisions of subdivision two of section two hundred eighty-two-a
of this chapter]. In the case of such returns permitted to be filed on a
quarterly basis, the adjustments to the rates of tax then in effect,  as
provided  for in sections three hundred one-a and three hundred one-e of
this article, which take effect on the first day of January of each year

S. 7219--A                         45

shall, with respect to such quarterly return, take effect on  the  first
day  of  the  next  succeeding  March.  Returns  shall be filed with the
commissioner in a form prescribed by  the  commissioner,  setting  forth
such  other information as the commissioner may prescribe.  Every petro-
leum business shall also transmit such other returns and such facts  and
information  as  the  commissioner  may require in the administration of
this article. Every petroleum business which is a corporation subject to
tax under this article and which ceases to exercise its franchise or  to
be  subject  to  the  tax  imposed by this article shall transmit to the
commissioner a return on the date of such cessation, or  at  such  other
time  as the commissioner may require, covering each month or period for
which no return was theretofore filed.  The  commissioner  may,  if  the
commissioner  deems  it  necessary in order to insure the payment of the
tax imposed by this article, require returns to be made  at  such  times
and  covering  such  periods  as  the  commissioner  may deem necessary.
Notwithstanding  the  foregoing  provisions  of  this  subdivision,  the
commissioner  may  require  any  corporation  or unincorporated business
which engages in transactions involving petroleum or  similar  products,
including  aviation fuels, to file a monthly return, which shall contain
any data specified by him, regardless of  whether  such  corporation  or
unincorporated business is subject to tax under this article.
  (i)  Returns  and records.--Returns shall be preserved for five years,
and thereafter until the commissioner of  taxation  and  finance  orders
them to be destroyed. Every petroleum business subject to tax under this
article  shall keep the records and documents referred to in subdivision
one of section [two hundred eighty-six  of  this  chapter]  ONE  HUNDRED
NINETY-NINE-U  OF THE GENERAL BUSINESS LAW and such other records of its
business in such form as the commissioner  may  require;  moreover,  the
records  required  of  transporters  and  storers under such subdivision
shall apply with the same force and effect to transporters  and  storers
of  any product included in the measure of the tax imposed by this arti-
cle. All such records shall be preserved for a period  of  three  years,
except  that  the  commissioner  may consent to their destruction within
that period or may require that they be kept longer.
  S 42. Subdivisions (a) and (f) of section 314 of the tax law, subdivi-
sion (a) as amended by chapter 190 of the laws of 1990  and  subdivision
(f)  as added by chapter 577 of the laws of 1997, are amended to read as
follows:
  (a) General.--Except in accordance with proper judicial  order  or  as
otherwise  provided by law, it shall be unlawful for any tax commission-
er, any officer or employee of the department of taxation  and  finance,
or any person who, pursuant to this section, is permitted to inspect any
return, or to whom any information contained in any return is furnished,
or  any  person engaged or retained by such department on an independent
contract basis, or any person who in any manner may acquire knowledge of
the contents of a return filed pursuant to this article, to  divulge  or
make  known  in any manner the amount of income or gross receipts or any
particulars set forth or disclosed in any return under this article. The
officers charged with the custody of such returns shall not be  required
to  produce any of them or evidence of anything contained in them in any
action or proceeding in any court, except on behalf of the state or  the
commissioner  of  taxation  and finance in an action or proceeding under
the provisions of this chapter or in  any  other  action  or  proceeding
involving  the  collection  of a tax due under this chapter to which the
state or the commissioner is a party or a claimant, or on behalf of  any
party  to  any action or proceeding under the provisions of this article

S. 7219--A                         46

when the returns or facts shown thereby are directly  involved  in  such
action  or  proceeding, in any of which events the court may require the
production of, and may admit in evidence, so much of said returns or  of
the facts shown thereby as are pertinent to the action or proceeding and
no more. The commissioner may, nevertheless, publish a copy or a summary
of  any  determination  or  decision  rendered  after the formal hearing
provided for in this chapter.  Nothing  herein  shall  be  construed  to
prohibit  the  delivery  to  a petroleum business or its duly authorized
representative of a copy of any return filed by it, nor to prohibit  the
publication of statistics so classified as to prevent the identification
of  particular  returns  and  the  items  thereof, or the publication of
delinquent lists showing the names  of  petroleum  businesses  who  have
failed  to  pay  their  taxes  at the time and in the manner provided by
section three hundred eight of this article together with  any  relevant
information  which  in the opinion of the commissioner may assist in the
collection of such delinquent taxes; or the inspection by  the  attorney
general or other legal representatives of the state of the return of any
petroleum  business  which shall bring action to set aside or review the
tax based thereon, or against whom an action or  proceeding  under  this
chapter has been recommended by the commissioner or the attorney general
or has been instituted; or the inspection of the returns of any petrole-
um business by the comptroller or duly designated officer or employee of
the  state department of audit and control, for purposes of the audit of
a refund of any tax paid by such petroleum business under this  article.
Provided,  further,  nothing  herein  shall be construed to prohibit the
disclosure of taxpayer identity  information,  including  name,  mailing
address and taxpayer identifying number (social security account number,
or such other number as has been assigned by the secretary of the United
States  treasury or his delegate, or by the commissioner of taxation and
finance), with respect to persons who are registered as residual  petro-
leum  product  or  aviation  fuel  businesses  under  this article or as
distributors of motor fuel or diesel motor fuel or  kero-jet  fuel  only
for  the  purpose  of article [twelve-A of this chapter] ELEVEN-C OF THE
GENERAL BUSINESS LAW or this article, whose registration as  a  residual
petroleum  product business or as such distributor has been cancelled or
suspended pursuant to this article or such article  [twelve-A]  ELEVEN-C
OF  THE  GENERAL BUSINESS LAW or whose application for registration as a
residual petroleum product business or  as  such  distributor  has  been
refused  pursuant to this article or such article [twelve-A] ELEVEN-C OF
THE GENERAL BUSINESS LAW. In addition, the commissioner may disclose the
fact that a person is not registered as a  residual  petroleum  business
under  this article or as a distributor of motor fuel, diesel motor fuel
or kero-jet fuel only under article [twelve-A of this chapter]  ELEVEN-C
OF  THE  GENERAL  BUSINESS  LAW.  Information disclosed pursuant to this
subdivision shall not, by itself, be construed as proof of compliance or
noncompliance with the provisions of this chapter.
  [(f) Disclosure of certain information where more than one  person  is
subject  to  penalty.    If the commissioner determines that a person is
liable for a penalty under subdivision two of section two hundred eight-
y-nine-b of this chapter (as applicable to this  article  under  section
three hundred fifteen of this article) with respect to any failure, upon
request  in  writing  of such person, the commissioner shall disclose in
writing to such person (1) the name of any other person whom the commis-
sioner has determined to be liable for such penalty with respect to such
failure, and (2) whether the commissioner has attempted to collect  such

S. 7219--A                         47

penalty  from  such  other person, the general nature of such collection
activities, and the amount collected.]
  S  43.  Section  315  of the tax law, as amended by chapter 190 of the
laws of 1990 and subdivision (b) as amended by section 33 of part  K  of
chapter 61 of the laws of 2011, is amended to read as follows:
  S  315. Practice and procedure.--(a) The provisions of subsections (g)
and (j) of section one thousand ninety-two[,] AND section  one  thousand
ninety-three  [and  article  twelve-A] of this chapter[, including those
provisions of such article twelve-A relating to penalty  and  interest,]
shall  apply  to the administration of and procedure with respect to the
tax imposed under this article in the same  manner  and  with  the  same
force  and  effect as if the language of such subsections (g) and (j)[,]
AND section one thousand ninety-three [and article  twelve-A]  had  been
incorporated in full into this article and had expressly referred to the
tax  under this article, except to the extent that any such provision is
either inconsistent with a provision of this article or is not  relevant
to  this  article  [or  that the provisions of such article twelve-A are
inconsistent with the provisions of such subsections (g) and (j) or with
such section one thousand ninety-three].
  (b) Joint administration of taxes. In addition to the  powers  granted
to  the commissioner in this chapter, the commissioner is hereby author-
ized to make provisions for the joint administration,  in  whole  or  in
part,  of  the  taxes imposed by [articles twelve-A and] ARTICLE twenty-
eight and pursuant to the authority of article twenty-nine of this chap-
ter upon motor fuel and diesel motor fuel and the taxes imposed by  this
article, including the joint reporting, assessment, collection, determi-
nation  and refund of such taxes, and for that purpose to prescribe that
any of  the  commissioner's  functions  under  such  articles,  and  any
returns,  forms, statements, documents or information to be submitted to
the commissioner under such articles, any books and records to  be  kept
for  purposes  of  the taxes imposed or authorized to be imposed by such
articles, any schedules of amounts to be collected under such  articles,
any  registration required under such articles, and the payment of taxes
under such articles, shall be on a joint basis with respect to the taxes
imposed by or pursuant to such articles. [Provided, notwithstanding  any
provision  of  this article to the contrary, in the furtherance of joint
administration, the provisions of subdivision one of section two hundred
eighty-five-a and subdivision one of section two  hundred  eighty-nine-c
of this chapter shall apply to the taxes imposed under this article with
the  same  force and effect as if those provisions specifically referred
to the taxes imposed hereunder and all  the  products  with  respect  to
which  the  taxes  are  imposed under this article. Provided, further, a
reimbursement (or credit) of taxes imposed under this article  shall  be
available  to  subsequent purchasers of motor fuel, diesel motor fuel or
residual petroleum product under the circumstances specified in subdivi-
sion eight of section two hundred eighty-nine-c  of  this  chapter  with
respect to the export of such products.] In addition, all the provisions
of  subdivision  one of section [two hundred eighty-six of this chapter]
ONE HUNDRED NINETY-NINE-U OF THE GENERAL BUSINESS LAW shall be  applica-
ble to all of the products included in the measure of the tax imposed by
this article and the powers of the commissioner in administering the tax
imposed  by  this article shall include these set forth in such subdivi-
sion. Moreover, the commissioner, in order to preserve the revenue  from
the  tax imposed by this article, shall, by regulation, require that the
movement of residual petroleum product into or in this state be accompa-
nied by a tracking document.   Also, the commissioner  may  require  (i)

S. 7219--A                         48

that  any [returns,] forms, statements or other document with respect to
motor fuel or diesel motor fuel required  of  transporters  or  terminal
operators  under  [such]  article [twelve-A of this chapter] ELEVEN-C OF
THE GENERAL BUSINESS LAW apply with the same force and effect to persons
transporting  or  storing residual petroleum product, AND (ii) a certif-
ication that particular gallonage of motor fuel, diesel  motor  fuel  or
residual  petroleum  product has been included in the measure of the tax
imposed by this article and such tax has been paid[, and (iii) that  the
certification  required pursuant to section two hundred eighty-five-a or
two hundred eighty-five-b of this chapter be expanded to include the tax
imposed by this article].
  S 44. Section 423 of the tax law, as amended by  chapter  508  of  the
laws of 1993, is amended to read as follows:
  S  423. Cancellation of registration of distributors. The registration
of any distributor may be cancelled by the commissioner upon its failure
to file a bond or other security when required, and the registration  of
a  distributor  may be cancelled by the commissioner upon its failure to
comply with any of the provisions of  this  article  or  any  reasonable
requirement,  rule or regulation adopted pursuant to this article by the
department of taxation and finance  or  by  the  commissioner.  All  the
provisions  of  subdivisions  four  through six and eight through ten of
section  [two  hundred  eighty-three  of  this  chapter]   ONE   HUNDRED
NINETY-NINE-P  OF  THE  GENERAL BUSINESS LAW relating to registration of
distributors of motor fuel shall be applicable to  the  registration  of
distributors under this article with the same force and effect as if the
language  of  those  subdivisions  had been incorporated in full in this
section and had expressly referred to the registration  of  distributors
under  this  article  and  the  tax  imposed  by this article, with such
modification as may be necessary in order to adapt the language of  such
provisions  to  the  provisions of this article, provided, specifically,
that the term "motor fuel"  shall  be  read  as  "alcoholic  beverages".
Provided,  however,  a registration shall be cancelled immediately, upon
cancellation or revocation for cause of a license  under  the  alcoholic
beverage control law. A distributor shall immediately inform the depart-
ment  in  writing  of any change in its name or address, and a corporate
distributor shall immediately inform the department, in writing, of  any
change  in its name, or in its officers or directors, or their residence
addresses.
  S 45. Subdivision 2 of section 428 of the tax law, as added by chapter
508 of the laws of 1993, is amended to read as follows:
  2. The operator of a motor vehicle, as such term is defined in  subdi-
vision  three  of  section  [two hundred eighty-two of this chapter] ONE
HUNDRED NINETY-NINE-O OF THE GENERAL BUSINESS LAW, or any other means of
transport of liquors in which more than  ninety  liters  of  liquors  is
being  transported  in  this  state must have in his or her possession a
manifest, invoice or other document which shows the name and address  of
the  person  from whom such liquors were received and the date and place
of receipt of such liquor and the name and address of  every  person  to
whom  such  operator  is  to  make delivery of the same and the place of
delivery, together with the number of liters to  be  delivered  to  each
person,  and,  if  such  liquor is being imported into the state in such
motor vehicle or such other means of transport, the name of the distrib-
utor importing or causing such liquors to be imported into the state and
such other information as the commissioner may require pursuant to  rule
or  regulation. Every operator of such motor vehicle or such other means
of transport shall at the request of a peace officer, acting pursuant to

S. 7219--A                         49

his special duties, a police officer, any representative of the  depart-
ment  or  any other person authorized by law to inquire into or investi-
gate the transportation of such liquors, produce such manifest,  invoice
or  other  document  for inspection. The person causing the operation of
such motor vehicle or such other means of transport shall be responsible
to cause the operator to keep in  such  operator's  possession  in  such
motor  vehicle or such other means of transport the manifest, invoice or
other document required by this section. The absence  of  the  manifest,
invoice  or other document required by this section shall give rise to a
presumption that the liquors being transported  are  being  imported  or
caused  to  be imported into this state for sale or use therein by other
than a registered distributor.  Moreover, the absence of (1)  the  place
of  delivery  of liquors on the manifest, invoice or other document with
respect to liquors being imported into the state shall give  rise  to  a
presumption that such liquors are being imported into the state for sale
or  use in the state and (2) the name of a registered distributor on the
manifest, invoice or  other  document  with  respect  to  liquors  being
imported  into  the  state  shall  give  rise to a presumption that such
liquors are being so imported or caused to be imported into this  state,
for  sale  or  use therein, by other than a registered distributor. Such
presumptions may be rebutted by the introduction of substantial evidence
to the contrary.
  S 46. Section 482 of the tax law, as amended by section 2 of part T of
chapter 61 of the laws of 2011, is amended to read as follows:
  S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est and penalties collected or received by the commissioner  under  this
article  [and  article  twenty-A of this chapter] shall be deposited and
disposed of pursuant to the provisions of section one  hundred  seventy-
one-a  of  this  chapter.  (b)  From  the  taxes, interest and penalties
collected or received by the commissioner under  sections  four  hundred
seventy-one and four hundred seventy-one-a of this article, effective on
and   after   March  first,  two  thousand,  forty-nine  and  fifty-five
hundredths, and effective on and after February first, two thousand two,
forty-three and seventy hundredths;  and  effective  on  and  after  May
first,  two  thousand  two,  sixty-four  and  fifty-five hundredths; and
effective on and after April first, two thousand  three,  sixty-one  and
twenty-two  hundredths  percent;  and effective on and after June third,
two thousand eight, seventy  and  sixty-three  hundredths  percent;  and
effective on and after July first, two thousand ten, seventy-six percent
collected  or  received  under  those  sections must be deposited to the
credit of the tobacco control  and  insurance  initiatives  pool  to  be
established  and distributed by the commissioner of health in accordance
with section twenty-eight hundred seven-v of the public health law.
  S 47. Subdivisions 9 and 10 of section 501 of the tax law, subdivision
9 as amended by chapter 469 of the laws of 1982 and  subdivision  10  as
amended  by  section 34 of part K of chapter 61 of the laws of 2011, are
amended to read as follows:
  9. "Automotive fuel carriers manifest" shall mean a detailed record of
all automotive fuel transported by  an  automotive  fuel  carrier.  Such
manifest shall contain such information as prescribed by the tax commis-
sion  pursuant to rules and regulations, and shall include the location,
name, and any license, registration or permit identification numbers  of
any  distributor,  filling  station or person from which such automotive
fuel is transported and to which such automotive fuel is delivered. Such
manifest shall include for each such  location  the  total  quantity  of
automotive fuel transported therefrom or delivered thereto and any taxes

S. 7219--A                         50

paid  or  collected  thereon  pursuant to or authorized pursuant to this
chapter. The term "distributor" shall have the same meaning  as  it  has
for purposes of article [twelve-A of this chapter, excluding persons who
are not required pursuant to section two hundred eighty-two-a to pay the
tax  imposed  thereby]  ELEVEN-C  OF  THE GENERAL BUSINESS LAW. The term
"filling station" shall mean any place, location or station where  auto-
motive  fuel  is  offered  for  sale  to a purchaser of such fuel, to be
delivered directly to a vehicle propelled by any power other than muscu-
lar.
  10. "Automotive fuel" shall mean, solely for purposes of this article,
diesel motor fuel as defined in subdivision [fourteen]  TEN  of  section
[two  hundred  eighty-two  of this chapter] ONE HUNDRED NINETY-NINE-O OF
THE GENERAL BUSINESS LAW and motor fuel as defined in subdivision two of
section  [two  hundred  eighty-two  of   this   chapter]   ONE   HUNDRED
NINETY-NINE-O OF THE GENERAL BUSINESS LAW.
  S  48.  Subdivisions  2,  3,  4 and 6 of section 503-a of the tax law,
subdivisions 2, 4 and 6 as amended by chapter 407 of the  laws  of  1990
and  subdivision  3  as  amended by chapter 309 of the laws of 1996, are
amended to read as follows:
  2. Such tax shall be at a composite rate determined by adding together
(i) a fuel tax component which shall  be  equivalent  to  the  rate  per
gallon  in  effect  under  the taxes on motor fuel and diesel motor fuel
imposed by FORMER article [twelve-a] TWELVE-A of this chapter and (ii) a
sales tax component, which shall be equivalent to the  rate  per  gallon
applicable  to  the receipts from the sale of a gallon of motor fuel and
diesel motor fuel in effect under the sales and compensating  use  taxes
imposed  by  sections eleven hundred five and eleven hundred ten of this
chapter plus the highest rate applicable to the receipts from  the  sale
of a gallon of motor fuel and diesel motor fuel in effect in any locali-
ty  of this state imposing a local sales and compensating use tax on the
sale of motor fuel and diesel motor fuel under the authority of  section
twelve  hundred  ten of this chapter; provided, however, that the aggre-
gate rate per gallon applicable to the  receipts  from  the  sale  of  a
gallon of such fuels imposed under clause (ii) of this subdivision shall
not  exceed  seven  percent. Such total equivalent rate per gallon under
clause (ii) of this subdivision  shall  be  determined  as  provided  in
subdivision (d) of section eleven hundred eleven of this chapter and the
schedules  prescribed by the commissioner of taxation and finance pursu-
ant to such subdivision, and shall be based on  the  average  price  per
gallon  (including all federal and state and any local taxes included in
such price or imposed on the use or consumption of such fuels but deter-
mined without the inclusion of any state and local sales tax on receipts
from sales of such fuels) paid by the carrier during the  return  period
for  all motor fuel and diesel motor fuel purchased for use in its oper-
ations either within or without this state. Provided,  however,  if  the
commissioner  shall determine that the records of any carrier are inade-
quate or incomplete for such a determination of average price, the price
for motor fuel and diesel motor fuel purchased by such carrier shall  be
deemed  to be the prevailing price for motor fuel and diesel motor fuel,
as established by the commissioner each  calendar  quarter  pursuant  to
this  section,  applicable  to the return period. Each calendar quarter,
the commissioner shall for each calendar quarter establish a  prevailing
price  for  motor  fuel  and diesel motor fuel based on the prices being
charged on any given day during the first fifteen days of  the  previous
calendar  quarter  at a minimum of ten selected truck stops widely scat-
tered throughout the state. For any return period, a carrier  may  elect

S. 7219--A                         51

to use the prevailing price per gallon so established by the commission-
er. Such tax shall be computed by multiplying such composite rate by the
amount of motor fuel or diesel motor fuel, as the case may be, used by a
carrier in its operations within this state during each calendar quarter
or,  where  the  commissioner  has  required or permitted a return to be
based upon a different period, during such other period. The  amount  of
motor  fuel  and diesel motor fuel used in the operations of any carrier
within this state shall be such proportion of the total amount  of  such
motor  fuel  and  diesel motor fuel used in its entire operations within
and without this state as the total number of miles traveled within this
state bears to the total number of miles  traveled  within  and  without
this  state.  The  commissioner may, by regulation, allow use of a miles
per gallon factor in computing fuel used in operations in  lieu  of  the
above  formula  if evidence is presented to the commissioner's satisfac-
tion that no loss of revenue will  result.  Where  the  records  of  any
carrier  are  inadequate  or incomplete the vehicular units of a carrier
filing returns shall be deemed to have consumed,  on  the  average,  one
gallon  of diesel motor fuel for every four miles traveled or one gallon
of motor fuel for every three miles traveled unless substantial evidence
discloses that a different amount was consumed.
  3. Every carrier subject to the tax imposed by this section  shall  be
entitled  to a credit against such tax determined by adding together the
following components: (i) a fuel tax component computed  by  multiplying
the  number  of  gallons of motor fuel or diesel motor fuel purchased by
such carrier within this state in a return period, for use in its  oper-
ations  either  within or without this state, by the applicable rate per
gallon imposed on such fuel under FORMER article twelve-A of this  chap-
ter[,  provided,  however,  no  credit  shall  be allowed unless the tax
imposed under such article twelve-A upon such purchase of fuel has  been
paid by such carrier], and (ii) a sales tax component computed by multi-
plying  the  number  of  gallons  of  motor  fuel  or  diesel motor fuel
purchased by such carrier within this state in a return period, for  use
in  its operations either within or without this state (as determined in
a manner similar to the method for determining the use of  fuel  in  the
state  as  provided  for  under subdivision two of this section), by the
applicable equivalent rate per gallon of the sales tax component of  the
tax  rate  (as  determined  under  subdivision  two  of  this  section),
provided, however, no credit shall be allowed  unless  the  tax  imposed
under  article  twenty-eight  of this chapter upon such purchase of fuel
has been paid by the carrier. Each carrier claiming such  credit  compo-
nents shall furnish to the commissioner such evidence of payment of such
taxes  as the commissioner may require. When the amount of the credit to
which any carrier is entitled for any  return  period  with  respect  to
gallonage  purchased in such return period exceeds the amount of tax for
which such carrier is liable under this section for such return  period,
such  excess  shall be allowed as a credit against the tax or which such
carrier would otherwise be liable for those  succeeding  periods  (after
application  of  any credits derived with respect to gallonage purchased
in each such succeeding period) which fall wholly within the twenty-four
month period commencing with the end of the return period from which the
excess was derived or, if a claim for refund is filed on or  before  the
last day of the month immediately following the forty-eight month period
commencing  with  the  end  of  the return period which gave rise to the
refund, the amount of such excess for such  period  shall  be  refunded;
but,  such a claim for refund may be filed no more frequently than quar-
terly, with respect to the calendar  quarters:  January  through  March,

S. 7219--A                         52

April through June, July through September and October through December.
The  commissioner shall grant or deny any such claim for refund in whole
or in part and shall notify the claimant by mail of  the  commissioner's
determination.  Such determination shall be final and irrevocable unless
the claimant shall, within thirty days after the mailing  of  notice  of
such  determination, petition the division of tax appeals for a hearing.
After such hearing, the division of tax appeals shall mail notice of the
determination of the administrative law judge to the claimant and to the
commissioner. Such determination may be  reviewed  by  the  tax  appeals
tribunal  as  provided in article forty of this chapter. The decision of
the tax appeals tribunal may be reviewed  as  provided  in  section  two
thousand  sixteen of this chapter. However, such a proceeding may not be
commenced unless an undertaking is filed with the commissioner  in  such
amount  and  with  such sureties as a justice of the supreme court shall
approve to the effect that if the proceeding be dismissed or  the  deci-
sion  confirmed, the petitioner will pay all costs and charges which may
accrue against him in the prosecution of the proceeding.
  4. Except as otherwise provided in  this  subdivision,  every  carrier
subject  to the tax imposed by this section shall file returns reporting
its operations pursuant to the provisions of section five  hundred  five
of  this article for the reporting periods provided pursuant thereto. If
the commissioner of taxation and finance finds that the  enforcement  of
the  tax  imposed  by  this section would not be adversely affected, the
commissioner may provide, by regulation, that a carrier operating prima-
rily within this state may file an information return, rather  than  the
aforementioned returns, provided the carrier has purchased in this state
all  the  motor fuel and diesel motor fuel used in its operations during
the period covered by such return  and  pays  the  taxes  imposed  under
[articles twelve-a and] ARTICLE twenty-eight and pursuant to the author-
ity  of  article twenty-nine of this chapter on such fuels in the manner
required by such articles. An election to  file  an  information  return
shall  be  made  in  such form, for such time and upon such terms as the
commissioner shall require.
  6. For purposes of this section, the definition  of  "motor  fuel"  in
subdivision  two of section [two hundred eighty-two] ONE HUNDRED NINETY-
NINE-O OF THE GENERAL BUSINESS LAW and the definition of  "Diesel  motor
fuel"  in  subdivision [fourteen] TEN of section [two hundred eighty-two
of this chapter] ONE HUNDRED NINETY-NINE-O OF THE GENERAL  BUSINESS  LAW
shall apply.
  S  49.  Subdivision  (b)  of section 523 of the tax law, as amended by
section 7 of part M-1 of chapter 109 of the laws of 2006, is amended  to
read as follows:
  (b) Rate of tax. The tax imposed by this section shall be at a compos-
ite  rate  determined  by adding together (1) a fuel tax component which
shall be equal to the applicable rate per gallon  in  effect  under  the
taxes  on  motor  fuel  and  diesel motor fuel imposed by FORMER article
twelve-A of this chapter and (2) a sales tax component, which  shall  be
equal to the sum of (A) a state sales and compensating use tax subcompo-
nent,  equal to the applicable rate per gallon in effect under the sales
and compensating use taxes on motor fuel and diesel motor  fuel  imposed
by  sections  eleven hundred five and eleven hundred ten of this chapter
as described in subdivision (m) of section eleven hundred eleven of this
chapter plus (B) a local sales and compensating  use  tax  subcomponent,
which shall be the lower of (i) the lowest applicable rate per gallon in
effect  under  the  sales  and  compensating  use taxes on such fuels in
effect in any county of this state imposing a local sales and compensat-

S. 7219--A                         53

ing use tax on a cents per gallon basis pursuant  to  the  authority  of
subpart  B  of  part one of article twenty-nine of this chapter, or (ii)
the equivalent rate per gallon based on the highest rate  applicable  to
the  receipts  from  the  sale of a gallon of motor fuel or diesel motor
fuel in effect in any locality of this state imposing a local sales  and
compensating  use  tax  on  a percentage rate basis on the sale of motor
fuel and diesel motor fuel pursuant to the authority  of  subpart  B  of
part one of article twenty-nine of this chapter. Provided, however, that
the  total rate per gallon applicable to the receipts from the sale of a
gallon of such fuels imposed under clause (ii) of  subparagraph  (B)  of
paragraph  two  of this subdivision shall not exceed three percent. Such
equivalent rate per gallon under clause (ii) of subparagraph B of  para-
graph  two of this subdivision shall be determined as provided in subdi-
vision (d) or (m) of section eleven hundred eleven of this  chapter  and
the  schedules  prescribed by the commissioner pursuant to such subdivi-
sion (d), and shall be based on the average price per gallon  (including
all  federal  and  state  and  any local taxes included in such price or
imposed on the use or consumption of such fuels upon which the state and
local sales and compensating use taxes are computed but determined with-
out the inclusion of any state or local sales tax on receipts from sales
of such fuels) paid by the carrier during the reporting period  for  all
motor  fuel  and  diesel  motor fuel purchased for use in its operations
either within or without this state. For  purposes  of  clause  (ii)  of
subparagraph  (B)  of  paragraph  two of this subdivision, the price for
motor fuel and diesel motor fuel purchased  by  such  carrier  shall  be
deemed  to be the prevailing price for motor fuel and diesel motor fuel,
as established by the commissioner each  calendar  quarter  pursuant  to
this section, applicable to the reporting period. The commissioner shall
for  each  calendar  quarter establish a prevailing price for motor fuel
and diesel motor fuel based on the prices being charged on any given day
during the first fifteen days of the  previous  calendar  quarter  at  a
minimum  of  ten  selected  truck  stops widely scattered throughout the
state. The tax imposed by this section shall be computed by  multiplying
such composite rate by the amount of motor fuel or diesel motor fuel, as
the  case  may be, used by a carrier in its operations within this state
during each reporting period. The amount of motor fuel and diesel  motor
fuel  used  in  the operations of any carrier within this state shall be
determined by dividing the  number  of  miles  traveled  in  this  state
subject  to  tax  under this section by the average miles per gallon for
the type of fuel. Where the records of any  carrier  are  inadequate  or
incomplete,  the  qualified  motor  vehicles of a carrier filing returns
shall be deemed to have consumed, on the average, one gallon  of  diesel
motor fuel for every four miles traveled or one gallon of motor fuel for
every  three miles traveled unless substantial evidence discloses that a
different amount was consumed; provided, however, that  if  the  commis-
sioner  enters  into  a  cooperative  agreement pursuant to section five
hundred twenty-eight of this article and  such  agreement  prescribes  a
different  average  miles  per gallon deemed to be consumed, the commis-
sioner shall prescribe such different average.
  S 50. Subdivision (a) of section 524 of the tax  law,  as  amended  by
section  8 of part M-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
  (a) Purchases. Every carrier subject to the tax imposed by this  arti-
cle  shall be entitled to a credit against such tax determined by adding
together the following components: (1) a fuel tax component computed  by
multiplying  the  number  of  gallons of motor fuel or diesel motor fuel

S. 7219--A                         54

purchased by such carrier within this state in a return period, for  use
in its operations either within or without this state, by the applicable
rate  per  gallon  imposed on such fuel under FORMER article twelve-A of
this  chapter[; provided, however, no credit shall be allowed unless the
tax imposed under such article twelve-A upon such purchase of  fuel  has
been  paid  by  such carrier], and (2) a sales tax component computed by
multiplying the number of gallons of motor fuel  or  diesel  motor  fuel
purchased  by such carrier within this state in a return period, for use
in its operations within or without this state by  the  applicable  rate
per  gallon  of  the sales tax component; provided, however, such credit
shall not exceed the tax imposed under article twenty-eight or  pursuant
to  the  authority  of  article  twenty-nine  of  this chapter upon such
purchase of fuel that has been paid by the carrier.  Each carrier claim-
ing such credit  components  shall  furnish  to  the  commissioner  such
evidence  of payment of such taxes as the commissioner may require. When
the amount of the credit to which any carrier is entitled for any return
period exceeds the amount of tax for which such carrier is liable  under
this  article  for such return period, such excess shall be allowed as a
credit against the tax for which such carrier would otherwise be  liable
for  the  eight  succeeding  calendar  quarters following the end of the
reporting period from which the excess was derived or, if  a  claim  for
refund  is  filed  on  or  before  the last day of the month immediately
following the four-year period commencing with the end of the  reporting
period  for  which such excess is derived, the amount of such excess for
such period shall be refunded.
  S 51. Paragraph 2 of subdivision (b) of section 525 of the tax law, as
added by chapter 170 of the laws of 1994, is amended to read as follows:
  (2) The taxes imposed by this article shall not apply  to  motor  fuel
and  diesel motor fuel used by an omnibus carrier in the operation of an
omnibus in local transit service  in  this  state,  as  described  under
FORMER  paragraph (d) of subdivision three of section two hundred eight-
y-nine-c of this chapter, pursuant to a certificate  of  public  conven-
ience and necessity issued by the commissioner of transportation of this
state  or  by the interstate commerce commission of the United States or
pursuant to a contract, franchise or consent between such carrier and  a
city  having  a  population of more than one million inhabitants, or any
agency of such city.
  S 52. Clauses (A), (B), (C), (D), (E) and (F) of subparagraph (ii)  of
paragraph  4  of subdivision (b) of section 1101 of the tax law, clauses
(B), (C), (D) and (E) as amended by chapter 261 of  the  laws  of  1988,
clause  (A)  as amended by section 37 and clause (F) as added by section
38 of part K of chapter 61 of the laws of 2011, are amended to  read  as
follows:
  (A)  "Petroleum products" means diesel motor fuel as defined in subdi-
vision [fourteen] TEN of section [two hundred eighty-two of  this  chap-
ter]  ONE  HUNDRED NINETY-NINE-O OF THE GENERAL BUSINESS LAW, other than
kerosene or propane used for residential  purposes,  or  motor  fuel  as
defined  in  subdivision  two of section [two hundred eighty-two of this
chapter] ONE HUNDRED NINETY-NINE-O OF THE GENERAL  BUSINESS  LAW.    The
phrase "used for residential purposes" shall have the same meaning as it
has for purposes of section eleven hundred five-A of this article.
  (B)  The  term "distributor" shall have the same meaning as it has for
purposes of article [twelve-A of this chapter, excluding persons who are
not required pursuant to section two hundred eighty-two-a to pay the tax
imposed thereby] ELEVEN-C OF THE GENERAL BUSINESS LAW.

S. 7219--A                         55

  (C) The term "motor fuel" means motor fuel as defined  in  subdivision
two  of  section  [two  hundred  eighty-two of this chapter] ONE HUNDRED
NINETY-NINE-O OF THE GENERAL BUSINESS LAW.
  (D)  The terms "filling station" and "owner" shall have the same mean-
ing as they have for the purposes of article [twelve-A of this  chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW.
  (E) The term "diesel motor fuel" means diesel motor fuel as defined in
subdivision  [fourteen]  TEN  of section [two hundred eighty-two of this
chapter] ONE HUNDRED NINETY-NINE-O OF THE GENERAL BUSINESS LAW.
  (F) The [terms] TERM "highway diesel  motor  fuel"  MEANS  ANY  DIESEL
MOTOR  FUEL  WHICH IS NOT NON-HIGHWAY DIESEL MOTOR FUEL and "non-highway
diesel motor fuel" [shall  have  the  same  meaning  as  they  have  for
purposes  of  article  twelve-A  of this chapter] MEANS ANY DIESEL MOTOR
FUEL THAT IS DESIGNATED FOR USE OTHER THAN ON A PUBLIC  HIGHWAY  (EXCEPT
FOR  THE  USE OF THE PUBLIC HIGHWAY BY FARMERS TO REACH ADJACENT LANDS),
AND IS DYED DIESEL MOTOR FUEL, MEANING DIESEL MOTOR FUEL WHICH HAS  BEEN
DYED  IN  ACCORDANCE  WITH  AND  FOR  THE  PURPOSE OF COMPLYING WITH THE
PROVISIONS OF 26 USC S4082(A) AND THE REGULATIONS THEREUNDER, AS MAY  BE
AMENDED FROM TIME TO TIME.
  S  53. Paragraphs 29, 30, 31 and 32 of subdivision (b) of section 1101
of the tax law, as added by section 7 of part W-1 of chapter 109 of  the
laws of 2006, are amended to read as follows:
  (29)  "E85" shall have the same meaning as in subdivision [twenty-two]
(O) of section [two hundred eighty-two] THREE HUNDRED of this chapter.
  (30) "B20" shall have the same  meaning  as  in  subdivision  [twenty-
three]  (P)  of  section  [two hundred eighty-two] THREE HUNDRED of this
chapter.
  (31) "CNG" shall have the same meaning as in subdivision [twenty-four]
(Q) of section [two hundred eighty-two] THREE HUNDRED of this chapter.
  (32) "Hydrogen" shall have the same meaning as in  subdivision  [twen-
ty-five]  (R)  of section [two hundred eighty-two] THREE HUNDRED of this
chapter.
  S 54. Paragraph 2 of subdivision (a) of section 1102 of the  tax  law,
as  amended by section 5 of part E of chapter 59 of the laws of 2012, is
amended to read as follows:
  (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
on  account  of  the  taxes  imposed by this article and pursuant to the
authority of article twenty-nine of this chapter, a tax upon the sale or
use of diesel motor fuel in this state. The tax shall be computed  based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously
untaxed  non-highway  Diesel  motor  fuel  to  a  person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped with a hose or other  apparatus  by  which  such  fuel  can  be
dispensed  into  the  fuel  tank of a motor vehicle, (ii) the sale to or
delivery at a filling station or  other  retail  vendor  of  water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of  no  more  than  twenty gallons or to the sale of CNG or hydrogen; or

S. 7219--A                         56

(iii) the sale of previously untaxed qualified  biodiesel  to  a  person
registered  under  article  [twelve-A  of  this chapter] ELEVEN-C OF THE
GENERAL BUSINESS LAW as a distributor of Diesel motor  fuel  other  than
(A)  a  retail  sale  to  such person or (B) a sale to such person which
involves a delivery at a filling station or into a repository  which  is
equipped with a hose or other apparatus by which such qualified biodies-
el  can  be  dispensed into the fuel tank of a motor vehicle. "Qualified
biodiesel" means [such term as defined in  subdivision  twenty-three  of
section  two  hundred  eighty-two  of  this chapter] A DIESEL MOTOR FUEL
SUBSTITUTE PRODUCED FROM NONPETROLEUM RENEWABLE RESOURCES THAT MEETS THE
REGISTRATION REQUIREMENTS FOR FUELS AND FUEL  ADDITIVES  ESTABLISHED  BY
THE  ENVIRONMENTAL  PROTECTION AGENCY UNDER SECTION 211 OF THE CLEAN AIR
ACT (42 U.S.C. 7545) AND THAT MEETS ASTM INTERNATIONAL  ACTIVE  STANDARD
D6751 FOR BIODIESEL FUEL.
  S  55.  Paragraph 2 of subdivision (a) of section 1102 of the tax law,
as amended by section 6 of part E of chapter 59 of the laws of 2012,  is
amended to read as follows:
  (2)  Every distributor of diesel motor fuel shall pay, as a prepayment
on account of the taxes imposed by this  article  and  pursuant  to  the
authority of article twenty-nine of this chapter, a tax upon the sale or
use  of diesel motor fuel in this state. The tax shall be computed based
upon the number of gallons of diesel motor fuel sold or used.  Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the delivery  of  diesel  motor  fuel  to  a  retail  service
station.  The collection of such tax shall not be made applicable to the
sale or use of diesel motor fuel under circumstances which preclude  the
collection  of  such tax by reason of the United States constitution and
of laws of the United States enacted pursuant thereto. The  prepaid  tax
on  diesel  motor  fuel  shall  not apply to (i) the sale of non-highway
Diesel motor fuel to a person registered  as  a  distributor  of  Diesel
motor fuel other than a sale to such person which involves a delivery at
a  filling station or into a repository which is equipped with a hose or
other apparatus by which such fuel can be dispensed into the  fuel  tank
of a motor vehicle, (ii) the sale to or delivery at a filling station or
other  retail  vendor  of  water-white  kerosene  provided  such filling
station or other retail vendor  only  sells  such  water-white  kerosene
exclusively  for  heating  purposes in containers of no more than twenty
gallons; or (iii) the sale of previously untaxed qualified biodiesel  to
a person registered under article [twelve-A of this chapter] ELEVEN-C OF
THE  GENERAL  BUSINESS  LAW  as a distributor of Diesel motor fuel other
than (A) a retail sale to such person or (B) a sale to such person which
involves a delivery at a filling station or into a repository  which  is
equipped with a hose or other apparatus by which such qualified biodies-
el  can  be  dispensed into the fuel tank of a motor vehicle. "Qualified
biodiesel" means [such term as defined in  subdivision  twenty-three  of
section  two  hundred  eighty-two  of  this chapter] A DIESEL MOTOR FUEL
SUBSTITUTE PRODUCED FROM NONPETROLEUM RENEWABLE RESOURCES THAT MEETS THE
REGISTRATION REQUIREMENTS FOR FUELS AND FUEL  ADDITIVES  ESTABLISHED  BY
THE  ENVIRONMENTAL  PROTECTION AGENCY UNDER SECTION 211 OF THE CLEAN AIR
ACT (42 U.S.C. 7545) AND THAT MEETS THE ASTM INTERNATIONAL ACTIVE STAND-
ARD D6751 FOR BIODIESEL FUEL.
  S 56. Subdivision (e) of section 1102 of the tax law,  as  amended  by
chapter 261 of the laws of 1988, is amended to read as follows:
  (e)  For  the  purposes  of this section [and article twelve-A of this
chapter], the term "use" shall mean, in  addition  to  the  meaning  set
forth  in  paragraph  seven of subdivision (b) of section eleven hundred

S. 7219--A                         57

one of this article, the exercise of any right or power over motor  fuel
or  diesel motor fuel by any person, whether or not a purchaser, includ-
ing, but not limited to, the receiving, the withdrawal from  storage  or
any consumption of such fuel.
  S  57.  Subdivision  (c)  of  section 1112 of the tax law, as added by
section 6 of part K of chapter 61 of the laws of  2005,  is  amended  to
read as follows:
  (c) The provisions of FORMER section two hundred eighty-four-e of this
chapter  concerning  sales of motor fuel and Diesel motor fuel on quali-
fied Indian reservations shall apply to  the  prepayment  of  sales  tax
imposed  on  motor fuel and Diesel motor fuel pursuant to section eleven
hundred two of this article in the same manner and with the  same  force
and  effect  as  if  the  provisions  of such FORMER section two hundred
eighty-four-e had been incorporated in full into this article, except to
the extent that  any  such  provision  is  either  inconsistent  with  a
provision of such section eleven hundred two or not relevant thereto.
  S  58.  Paragraph 1 of subdivision (h) of section 1132 of the tax law,
as amended by chapter 276 of the laws of 1986, is  amended  to  read  as
follows:
  (1) (i) No person shall purchase motor fuel in this state, excluding a
purchase at retail, unless the tax required to be prepaid by subdivision
(a)  of section eleven hundred two of this article has been assumed by a
distributor registered under article [twelve-A of this chapter] ELEVEN-C
OF THE GENERAL BUSINESS LAW in accordance  with  a  certification  under
this  paragraph  or  paid  by  such  distributor,  and,  in each of such
instances, is passed through to such purchaser. In addition to any other
civil and criminal penalties which may apply, any person  who  purchases
motor  fuel  in  violation  of  this  subparagraph  shall be jointly and
severally liable to pay the tax required to be prepaid by section eleven
hundred two of this article with respect to such motor fuel.
  (ii) For the purpose of the proper administration of this article  and
to  prevent  evasion of the tax on motor fuel imposed by and pursuant to
this article, it shall be presumed that all motor fuel  imported,  manu-
factured  or  sold,  received  or possessed in the state is intended for
use, distribution, storage or sale in the state and subject to  the  tax
required  to  be  prepaid  by section eleven hundred two of this article
until the contrary is established. It shall be further presumed that all
motor fuel so imported, manufactured, sold, received or possessed in the
state by any person, other than motor fuel delivered into  the  ordinary
fuel tank connected with the engine of a means of conveyance in order to
propel  it,  or  in small drums or similar containers, which such person
cannot otherwise account for, is subject  to  the  tax  required  to  be
prepaid under section eleven hundred two of this article and such person
is  responsible for such prepayment. Provided, however, a distributor of
motor fuel who imports, manufactures or sells and stores in the state or
who purchases and stores motor fuel in the state on which he has prepaid
the tax required to be prepaid pursuant to section eleven hundred two of
this article shall be allowed an adjustment in arriving at  the  gallons
subject  to  the taxes imposed by such section on account of the gallons
the distributor establishes were lost due to shrinkage, evaporation  and
handling; provided, however, such allowance shall not exceed two percent
of  the  fuel stored. Provided, further, that in arriving at the gallons
of motor fuel subject to the tax required  to  be  prepaid  pursuant  to
section  eleven  hundred  two of this article, there shall be allowed an
adjustment on account of gallons lost or destroyed due to  an  accident,
such  as  fire,  and  at the time of such loss or destruction were being

S. 7219--A                         58

held or transported for sale other than at retail. The burden of proving
that any motor fuel is not so  subject  shall  be  upon  the  person  so
responsible for such prepayment with respect to such fuel.
  (iii)  Upon  each sale of motor fuel, other than a sale at retail, the
seller must give to the purchaser and the purchaser  shall  receive,  at
the time of delivery of such motor fuel, a certification containing such
information  as  the  tax commission shall require which shall include a
statement to the effect (A) if such seller is a  distributor  registered
under  article  [twelve-A of this chapter] ELEVEN-C OF THE GENERAL BUSI-
NESS LAW, that he has assumed the payment of or paid the tax required to
be prepaid by section eleven hundred two of this article  and,  in  each
case,  is  passing  through  such tax or (B) that such seller is passing
through such tax which was so previously assumed or paid by  an  identi-
fied  distributor  registered  under  article [twelve-A of this chapter]
ELEVEN-C OF THE GENERAL BUSINESS LAW, and passed through to him.
  (iv)  If  the  certification  required  by  this  paragraph  has  been
furnished  to  the  purchaser  by the seller at delivery and accepted in
good faith, the burden of proving that the tax required to  be  paid  by
section  eleven  hundred  two  of  this article was assumed or paid by a
distributor registered as such under article [twelve-A of this  chapter]
ELEVEN-C  OF THE GENERAL BUSINESS LAW and passed through shall be solely
on the seller.
  (v) Where the certification  required  under  this  paragraph  is  not
furnished  by the seller at delivery of motor fuel, it shall be presumed
that the tax required to be prepaid by section  eleven  hundred  two  of
this article has not been assumed or paid by a distributor registered as
such  under  article  [twelve-A of this chapter] ELEVEN-C OF THE GENERAL
BUSINESS LAW and  that  the  purchaser  in  such  case  is  jointly  and
severally liable for the tax.
  (vi)  If,  due to the circumstances of delivery, it is not possible to
issue a certification required under  this  paragraph  at  the  time  of
delivery of motor fuel, the tax commission may authorize the delivery of
the  certification  required  under  this  paragraph at a time after the
delivery of the motor fuel which is the subject of the  sale  under  the
limited  circumstances it shall prescribe and upon such terms and condi-
tions it shall deem necessary to ensure collection of the tax imposed by
section eleven hundred two of this article [and  the  motor  fuel  taxes
imposed by article twelve-A of this chapter].
  S  59.  Subparagraph (iv) of paragraph 2 of subdivision (h) of section
1132 of the tax law, as added by chapter 261 of the  laws  of  1988,  is
amended to read as follows:
  (iv)  (A)  Upon  each  sale,  other  than  a  retail sale at a filling
station, the seller must give to the purchaser and the  purchaser  shall
receive  at  the  time  of delivery of such Diesel motor fuel, a certif-
ication containing such information as the commissioner of taxation  and
finance  shall  require  which,  unless otherwise provided in this para-
graph, shall include a statement to the effect: (i) if such seller is  a
distributor registered under article [twelve-A of this chapter] ELEVEN-C
OF  THE GENERAL BUSINESS LAW, that he has assumed the payment of or paid
the taxes imposed by this article and, in each case, is passing  through
such  taxes;  (ii)  that such seller is passing through such taxes which
were so previously assumed or paid by an identified  distributor  regis-
tered  under  article [twelve-A of this chapter] ELEVEN-C OF THE GENERAL
BUSINESS LAW, and passed through to him; or  (iii)  if  such  seller  is
making  a  retail  sale  to  a  purchaser, that such taxes are not being
passed through on the retail sale of Diesel motor  fuel,  in  accordance

S. 7219--A                         59

with subparagraph (i) of this paragraph. In the case of a sale of Diesel
motor  fuel  described  in  paragraph  two of subdivision (a) of section
eleven hundred two of this article which is exempt from the tax required
to be prepaid by section eleven hundred two, the certificate, in lieu of
the  foregoing statements, shall state that, based upon good faith reli-
ance on the interdistributor sales certificate, such Diesel  motor  fuel
is being sold under the circumstances described in such paragraph two of
subdivision  (a)  of section eleven hundred two and that the tax imposed
by section eleven hundred two of this article is not applicable.
  (B) In the case of a sale of Diesel motor  fuel  subject  to  the  tax
required to be prepaid by section eleven hundred two of this article and
in  all  cases  where  such tax is required to be passed through, if the
certification required by this subparagraph has been  furnished  to  the
purchaser  at  the  time  of  delivery of such fuel and accepted in good
faith, the burden of proving that the tax  required  to  be  prepaid  by
section  eleven  hundred  two  of  this article was assumed or paid by a
distributor registered as such under article [twelve-A of this  chapter]
ELEVEN-C  OF THE GENERAL BUSINESS LAW and passed through shall be solely
on the seller.
  (C) Where the certification required under  this  subdivision  is  not
furnished  by  the  seller  at  the time of delivery of the Diesel motor
fuel, it shall be presumed that  the  tax  required  to  be  prepaid  by
section  eleven hundred two of this article is due and owing and has not
been assumed or paid by a distributor registered as such  under  article
[twelve-A of this chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW and that
the purchaser in such case is jointly and severally liable for the tax.
  (D)  If,  due  to the circumstances of delivery, it is not possible to
issue a certification required under this subdivision  at  the  time  of
delivery  of Diesel motor fuel, the commissioner of taxation and finance
may authorize the delivery of  the  certification  required  under  this
subdivision  at a time after the delivery of the Diesel motor fuel which
is the subject of the sale under  the  limited  circumstances  he  shall
prescribe  and upon such terms and conditions he shall deem necessary to
ensure collection of the tax imposed by section eleven  hundred  two  of
this  article  [and  the  Diesel  motor  fuel  taxes  imposed by article
twelve-A of this chapter].
  S 60. Subparagraphs (A) and (C) of paragraph 3 of subdivision  (h)  of
section  1139  of  the  tax  law, as added by chapter 102 of the laws of
2008, are amended to read as follows:
  (A) The term "government entity" means an entity  described  in  para-
graph  one,  two  or  three of subdivision (a) of section eleven hundred
sixteen of this article or any diplomatic mission or diplomatic  person-
nel  who  are permitted by the United States to purchase fuel and diesel
motor fuel exempt from the taxes imposed pursuant to  this  article  and
[articles twelve-A and] ARTICLE thirteen-A of this chapter.
  (C)  The  term "fuel distributor" means any person who is a registered
distributor under article [twelve-A of this  chapter]  ELEVEN-C  OF  THE
GENERAL  BUSINESS  LAW  and  who  is  registered as a person required to
collect tax pursuant to this article.
  S 61. Subdivision 11 of section 1142 of the tax  law,  as  amended  by
section  47  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  11. To make such provision pursuant to rules and regulations  for  the
joint  administration, in whole or in part, of the state and local taxes
imposed by this article and authorized by article  twenty-nine  of  this
chapter  upon  the  sale of petroleum products [and the taxes imposed by

S. 7219--A                         60

article twelve-A of this chapter and authorized to be  imposed  by  such
article],  including the joint reporting, assessment, collection, deter-
mination and refund of such taxes, and for  that  purpose  to  prescribe
that  any  of  the commissioner's functions under said articles, and any
returns, forms, statements, documents or information to be submitted  to
the  commissioner  under said articles, any books and records to be kept
for purposes of the taxes imposed or authorized by  said  articles,  any
schedules  of amounts to be collected under said articles, any registra-
tion required under said articles, and the payment of taxes  under  said
articles  shall be on a joint basis with respect to the taxes imposed by
said articles.
  S 62. Subparagraph (vii) of paragraph 1 of subdivision (a) of  section
1145  of  the tax law, as amended by chapter 261 of the laws of 1988, is
amended to read as follows:
  (vii) Any owner of a filling station who shall willfully and knowingly
have in his custody, possession or under his control any motor  fuel  or
diesel motor fuel on which (A) the prepaid tax imposed by section eleven
hundred  two of this article has not been assumed or paid by a distribu-
tor registered as such under article [twelve-A of this chapter] ELEVEN-C
OF THE GENERAL BUSINESS LAW, or (B) the prepaid tax imposed  by  section
eleven  hundred  two  of  this  article was required to have been passed
through to him and has not been included in the cost of such fuel to him
shall be liable for a penalty in the amount of  twice  the  tax  so  not
assumed  or  paid,  or  included.  Such  penalty  shall  be  determined,
assessed, collected and paid in the same manner as taxes imposed by this
article and all the provisions of this article relating thereto shall be
deemed also to refer to the penalty imposed by this paragraph  and,  for
this  purpose, the term "person required to collect tax" shall be deemed
to include an owner of a filling station. Such penalty may be determined
at any time within three years after such motor  fuel  or  diesel  motor
fuel  shall  have  come  into  his  custody,  possession or control. For
purposes of this subparagraph, such owner shall willfully and  knowingly
have  in  his  custody,  possession  or  under his control motor fuel or
diesel motor fuel on which (A) such tax has not been assumed or paid  by
a  distributor  registered  as such or (B) such tax was required to have
been passed through to him and has not been included in the cost of such
fuel to him where such owner has knowledge of the requirement that  such
taxes  be  paid and where, to his knowledge, such taxes have not been so
included. For purposes of this subparagraph,  it  shall  be  presumptive
evidence  that  such  owner  shall  willfully  and knowingly have in his
custody, possession or under his control motor fuel or diesel motor fuel
(A) on which such tax has not been assumed  or  paid  by  a  distributor
registered  as  such  or (B) on which such tax was required to have been
passed through to him and has not been included in the cost of such fuel
to him where such owner has not received the certification  required  by
subdivision  (h) of section eleven hundred thirty-two of this article at
the time of delivery of such motor fuel or  diesel  motor  fuel  or,  in
those  circumstances  where the commissioner has authorized the delivery
of such certification at a time after delivery  of  the  motor  fuel  or
diesel motor fuel, at the time prescribed by the commissioner.
  S  63.  Subdivision  (e) of section 1145 of the tax law, as amended by
chapter 2 of the laws of 1995, is amended to read as follows:
  (e) Any officer, director, shareholder or employee of a corporation or
of a dissolved corporation, any employee of a partnership, any  employee
or  manager  of a limited liability company, or any employee of an indi-
vidual proprietorship,  who  as  such  officer,  director,  shareholder,

S. 7219--A                         61

employee  or  manager is under a duty to act for such corporation, part-
nership, limited liability company or proprietorship in  complying  with
any  requirement  of  this  article,  and any member of a partnership or
limited  liability  company,  which  fails to pay the tax required to be
prepaid by section eleven hundred two or eleven hundred  three  of  this
article,  shall,  in  addition  to  other  penalties provided by law, be
liable for a penalty equal to the total amount of the tax not paid, plus
penalties and interest computed pursuant  to  subdivision  (a)  of  this
section  as if such person were a distributor under article [twelve-a of
this chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW  or  an  agent  under
article twenty of this chapter, respectively. If the commissioner deter-
mines that such failure was due to reasonable cause and not due to will-
ful  neglect,  the  commissioner shall remit all or part of such penalty
imposed under this subdivision.    Such  penalty  shall  be  determined,
assessed,  collected  and paid in the same manner as the tax required to
be prepaid by section eleven hundred two or eleven hundred three, as the
case may be, of this article and shall be disposed of as  provided  with
respect  to moneys derived from either such tax, respectively. Provided,
however, that the penalty provided for by this subdivision shall not  be
imposed on any person on account of the failure of such a distributor or
agent  to  pay  the tax required to be prepaid by section eleven hundred
two or eleven hundred three,  respectively,  of  this  article  if  such
person  is  liable  for  such  tax  pursuant  to subdivision (b) of such
section eleven hundred two or subdivision (b)  of  such  section  eleven
hundred three, respectively.
  S  64. Sections 1812, 1812-a, 1812-b, 1812-c and 1812-d of the tax law
are REPEALED.
  S 65. Subdivision (f) and paragraph 1 of subdivision  (n)  of  section
1817  of  the tax law, as amended by section 30 of subpart I of part V-1
of chapter 57 of the laws of 2009, are amended to read as follows:
  (f) Any owner of a filling station who shall willfully  and  knowingly
have  in  his custody, possession or under his control any motor fuel or
diesel motor fuel on which (1) the prepaid tax imposed by section eleven
hundred two of this chapter has not been assumed or paid by a  distribu-
tor registered as such under article [twelve-A of this chapter] ELEVEN-C
OF  THE  GENERAL  BUSINESS LAW or (2) the prepaid tax imposed by section
eleven hundred two of this chapter was  required  to  have  been  passed
through  to  him  and  has not been included in the cost of such fuel to
him, shall in either case, be guilty of a class E felony.  For  purposes
of  this  subdivision,  such owner shall willfully and knowingly have in
his custody, possession or under his control any motor  fuel  or  diesel
motor fuel on which such tax has not been assumed or paid by a distribu-
tor registered as such where such owner has knowledge of the requirement
that such tax be paid and where, to his knowledge, such tax has not been
assumed  or  paid  by  such registered distributor on such motor fuel or
diesel motor fuel. Such owner shall willfully and knowingly have in  his
custody, possession or under his control motor fuel or diesel motor fuel
on which such tax is required to have been passed through to him and has
not  been  included in the cost to him where such owner has knowledge of
the requirement that such tax be passed through and where to  his  know-
ledge such tax has not been so included.
  (1)  Every  person  engaged  in  the  retail sale of motor fuel and/or
diesel motor fuel or a distributor of such fuels, as defined in  article
[twelve-A  of  this chapter] ELEVEN-C OF THE GENERAL BUSINESS LAW, shall
comply with the provisions of section three hundred ninety-two-i of  the
general  business  law by reducing the prices charged for motor fuel and

S. 7219--A                         62

diesel motor fuel in an amount equal to any reduction in  taxes  prepaid
by the distributor or imposed on retail customers resulting from comput-
ing sales and compensating use taxes at a cents per gallon rate pursuant
to  the  provisions  of paragraph two of subdivision (e) and subdivision
(m) of section one thousand one hundred eleven of this chapter.
  S 66. Subdivision (a) and paragraph 3 of subdivision  (d)  of  section
1848 of the tax law, as amended by section 54 of part K of chapter 61 of
the laws of 2011, are amended to read as follows:
  (a) Temporary seizure. Whenever a police officer designated in section
1.20  of  the  criminal  procedure  law or a peace officer designated in
subdivision four of section 2.10 of such law,  acting  pursuant  to  his
special duties, shall discover any motor fuel or diesel motor fuel which
is  being  imported  for use, distribution, storage or sale in the state
where the person importing or causing such motor fuel  or  diesel  motor
fuel  to  be  imported  is not registered as a distributor under section
[two hundred eighty-three or section two hundred eighty-two-a,  of  this
chapter,  as  the  case may be] ONE HUNDRED NINETY-NINE-P OF THE GENERAL
BUSINESS LAW, such police officer or peace officer is hereby  authorized
to  seize  and  take possession of such motor fuel or diesel motor fuel,
together with the vehicle or  other  means  of  transportation  used  to
transport such motor fuel.
  (3)  Forfeiture  of  motor fuel or diesel motor fuel together with the
vehicle or other means of transportation used to  transport  such  motor
fuel or diesel motor fuel shall be adjudged where the department proves,
by  clear  and convincing evidence, that the person importing or causing
such motor fuel or diesel motor fuel to be imported was  not  registered
as  a distributor under section [two hundred eighty-three or section two
hundred eighty-two-a of this chapter, as the case may  be]  ONE  HUNDRED
NINETY-NINE-P  OF  THE GENERAL BUSINESS LAW. All defendants in a forfei-
ture action brought pursuant to this article shall  have  the  right  to
trial by jury on any issue of fact.
  S  67.  Subparagraph (D) of paragraph 4 and paragraph 6 of subdivision
(d) of section 1848 of the tax law, as amended by section 54 of  part  K
of chapter 61 of the laws of 2011, are amended to read as follows:
  (D)  The  court  may  grant the relief provided in subparagraph (A) of
this paragraph if it finds that such relief is warranted by  the  exist-
ence  of  some  compelling  factor, consideration or circumstance demon-
strating that forfeiture of the property or any part thereof, would  not
serve  the  ends  of  justice.  Reporting and payment of the tax imposed
pursuant to [article twelve-A or] article twenty-eight of  this  chapter
with  respect  to such motor fuel or diesel motor fuel subsequent to the
seizure of such fuel shall not constitute a compelling factor, consider-
ation or circumstance warranting the granting of the relief provided for
in subparagraph (A) of  this  paragraph.  In  determining  whether  such
relief  is warranted by the existence of some compelling factor, consid-
eration or circumstances pursuant to  this  paragraph,  the  court  may,
however,  take into account the fact that such taxes with respect to the
seized fuel have been reported and remitted to the state  prior  to  the
temporary  seizure of such fuel if the unregistered importation into the
state was effected in good faith and without knowledge of  the  require-
ment  of  registration  and  without intent to evade tax. The court must
issue a written decision, stating the basis for an order issued pursuant
to this paragraph.
  (6) The total that may be recovered shall not exceed the value of  the
motor  fuel  or  diesel  motor  fuel seized and, in addition, either the
value of the vehicle or other means of transportation used to  transport

S. 7219--A                         63

such  fuel  or three times the amount of the tax and penalty under arti-
cles [twelve-A,] thirteen-A and twenty-eight and pursuant to the author-
ity of article twenty-nine of this chapter with  respect  to  the  motor
fuel or diesel motor fuel, whichever is less.
  S  68.  Subdivision  (f) of section 1848 of the tax law, as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
  (f) Release of property. A person whose property has been  seized  may
move,  upon  notice  to  the  department of taxation and finance, in the
supreme court in any county, provided that if the department shall  have
moved  to confirm the temporary seizure of such property, in the supreme
court of such county for an order releasing all or part of the  property
seized  upon  payment  of the department's fees and expenses, if any. On
such a motion, the defendant shall give  an  undertaking  in  accordance
with  article  twenty-five  of  the  civil practice law and rules, in an
amount equal to the value of the property sought to be released, that he
will pay the department the value of such property which may be adjudged
forfeited (but in the case of the owner of a vehicle or other  means  of
transportation,  the amount of the undertaking required shall not exceed
three times the amount of all taxes and  penalties  due  under  articles
[twelve-A,] thirteen-A and twenty-eight and pursuant to the authority of
article twenty-nine of this chapter).
  S  69.  This act shall take effect January 1, 2013; provided, however,
that:
  (a) the amendments to paragraph (a) of subdivision 3 of  section  89-b
of  the  state  finance  law made by section twenty of this act shall be
subject to the expiration and reversion of such paragraph,  pursuant  to
section  13  of  part U-1 of chapter 62 of the laws of 2003, as amended,
when upon such date the provisions of section  twenty-one  of  this  act
shall take effect;
  (b)  the  amendments  to subdivisions (o), (p), (q) and (r) of section
300 of the tax law made by section thirty-two  of  this  act  shall  not
affect  the  repeal  of  such  subdivisions and shall be deemed repealed
therewith;
  (c) the amendments to paragraphs 6 and 7 of subdivision (a) of section
301-b of the tax law made by section thirty-four of this act  shall  not
affect the repeal of such paragraphs and shall be deemed repealed there-
with;
  (d)  if  part E of chapter 59 of the laws of 2012 shall not have taken
effect on or before such date then sections thirty-seven and  fifty-five
of this act shall take effect on the same date and in the same manner as
such part of such chapter of the laws of 2012 takes effect;
  (e)  the amendments to paragraphs 29, 30, 31 and 32 of subdivision (b)
of section 1101 of the tax law made by section fifty-three of  this  act
shall  not  affect  the  repeal  of  such paragraphs and shall be deemed
repealed therewith; and
  (f) the amendments to paragraph 2 of subdivision a of section 1102  of
the  tax  law made by section fifty-four of this act shall be subject to
the expiration and reversion of such paragraph, pursuant to  section  19
of  part  W-1  of chapter 109 of the laws of 2006, as amended, when upon
such date the provisions of section fifty-five of this  act  shall  take
effect.