| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 08, 2014 |
referred to energy and telecommunications |
| Dec 20, 2013 |
print number 1719a |
| Dec 20, 2013 |
amend and recommit to energy and telecommunications |
| Jan 09, 2013 |
referred to energy and telecommunications |
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Senate Bill S1719A
2013-2014 Legislative Session
Does away with various taxes on motor fuel; repealer
download bill text pdfShare this bill
Sponsored By
(R, IP) Senate District
Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
co-Sponsors
(R) Senate District
2013-S1719 - Details
- Current Committee:
- Senate Energy And Telecommunications
- Law Section:
- Tax Law
- Laws Affected:
- Rpld Art 12-A, §§1812, 1812-a, 1812-b, 1812-c & 1812-d, amd Tax L, generally; add Art 11-C §§199-o - 199-w, amd §392-i, Gen Bus L; amd §179, Ag & Mkts L; amd §30, Can L; amd §§1.20 & 2.10, CP L; amd §§10-c & 38, Hway L; amd §§385 & 376, Pub Auth L; rpld §54 sub 1 ¶ j sub¶ 7, amd §89-b, St Fin L
- Versions Introduced in 2011-2012 Legislative Session:
-
S7219
2013-S1719 - Summary
Repeals article 12-A of the tax law in relation to taxes on gasoline and similar motor fuel; establishes exemptions from state sales tax and the petroleum business tax for retail sales of motor fuel and diesel motor fuel; provides for the regulation of motor fuel distributors, importing transporters and terminal operators by the department of state.
2013-S1719 - Sponsor Memo
BILL NUMBER:S1719
TITLE OF BILL: 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 distributors, 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
PURPOSE: To remove various taxes on motor fuel, saving consumers 34
cents per gallon of gas.
SUMMARY OF SPECIFIC PROVISIONS: Various sections of this bill removal
the state sales tax on gasoline and diesel, the petroleum business
tax, and the motor fuel excise tax to remove 34 cents of tax off of a
gallon of gas.
JUSTIFICATION: New York State has the highest gas tax in the country,
individuals purchasing gas are taxed at the Federal, State, and Local
level. This legislation repeals three state mandated taxes: State
2013-S1719 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
1719
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. GRISANTI, MAZIARZ -- read twice and ordered printed,
and when printed to be committed to the Committee on Energy and Tele-
communications
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 chapter 406 of the laws of 2012, is amended to read as
follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05310-01-3
S. 1719 2
(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
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), the commercial solar energy
systems equipment exemption provided for in subdivision (hh) 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, such
commercial 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
SUBDIVISION, 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
S. 1719 3
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]
(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
S. 1719 4
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
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-
S. 1719 5
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.
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
S. 1719 6
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.
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
S. 1719 7
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 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
S. 1719 8
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
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
S. 1719 9
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 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-
S. 1719 10
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
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
S. 1719 11
ACTION, THE COURT SHALL GRANT A PRELIMINARY INJUNCTION RESTRAINING THE
SALE, RELEASE, TRANSFER OR OTHER DISPOSITION OF FUEL SUBJECT TO THE
TEMPORARY ORDER.
(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
S. 1719 12
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
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
S. 1719 13
SUCH TIME, THE DEPARTMENT SHALL BE REQUIRED TO REGISTER SUCH PROPOSED
TRANSFEREE.
(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-
S. 1719 14
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 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
S. 1719 15
AND AUTHORIZED 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 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.
S. 1719 16
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 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:
S. 1719 17
(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-
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.
S. 1719 18
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-
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
S. 1719 19
(D) HAS KNOWINGLY AIDED AND ABETTED THE DISTRIBUTION OF MOTOR FUEL
WHICH HE HAS KNOWLEDGE OF AS BEING 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
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-
S. 1719 20
FIED PETROLEUM GAS FUEL PERMITS, PROVIDED THAT THE DEPARTMENT MAY WAIVE
THE REQUIREMENT THAT HOLDERS OF LIQUEFIED PETROLEUM GAS FUEL PERMITS
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. 1719 21
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
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-
S. 1719 22
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-
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
S. 1719 23
(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
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:
S. 1719 24
(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
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
S. 1719 25
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
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] 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 partners not a resident of this state, and in the case of a corpo-
ration, 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:
S. 1719 26
(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
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. 1719 27
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
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:
S. 1719 28
(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
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
S. 1719 29
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)
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
S. 1719 30
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
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
S. 1719 31
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:
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 FORMER 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 arti-
cles of this chapter and FORMER article ten thereof. The commissioner
and the comptroller shall maintain a system of accounts showing the
amount of revenue collected or received from each of the taxes imposed
by such articles. 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 subdivi-
sion 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 seven-
ty-one-e of this [chapter] ARTICLE, (iii) and except further that,
notwithstanding any law, the comptroller shall credit to the revenue
S. 1719 32
arrearage account, pursuant to section ninety-one-a of the state finance
law, that amount of overpayment 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 comp-
troller by the commissioner as the amount to be credited against a past-
due legally enforceable debt owed to a state agency pursuant to para-
graph (a) of subdivision six of section one hundred seventy-one-f of
this article, provided, however, he shall credit to the special offset
fiduciary account, pursuant 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, twenty-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 over-
payment 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 certified 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]
FAMILY ASSISTANCE, the state university of New York, the city university
of New York, or the higher education services corporation, or the reven-
ue 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] 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)
S. 1719 33
of this subdivision, shall be taxed under the provisions of article
[nine-a] 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-
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:
S. 1719 34
(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
(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
S. 1719 35
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 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.
S. 1719 36
(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.
(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.
S. 1719 37
(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.
(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
S. 1719 38
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
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
S. 1719 39
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
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
S. 1719 40
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
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
S. 1719 41
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
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 taxa-
tion 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
S. 1719 42
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
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,
S. 1719 43
(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,
(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
S. 1719 44
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,
(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
S. 1719 45
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
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
S. 1719 46
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
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
S. 1719 47
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
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-
S. 1719 48
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)
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-
S. 1719 49
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
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
S. 1719 50
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
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]
pursuant 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
determined 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
operations either within or without this state. Provided, however, if
the commissioner shall determine that the records of any carrier are
inadequate 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
S. 1719 51
prevailing price for motor fuel and diesel motor fuel based on the pric-
es being charged on any given day during the first fifteen days of the
previous calendar quarter at a minimum of ten selected truck stops wide-
ly scattered throughout the state. For any return period, a carrier may
elect to use the prevailing price per gallon so established by the
commissioner. 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 oper-
ations within and without this state as the total number of miles trav-
eled within this state bears to the total number of miles traveled with-
in 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
satisfaction that no loss of revenue will result. Where the records of
any carrier are inadequate or incomplete the vehicular units of a carri-
er 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
S. 1719 52
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,
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
S. 1719 53
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-
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:
S. 1719 54
(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
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.
S. 1719 55
(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.
(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
S. 1719 56
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
(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. 1719 57
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
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
S. 1719 58
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
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
S. 1719 59
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
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. 1719 60
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
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
S. 1719 61
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,
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
S. 1719 62
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
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
S. 1719 63
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
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, 2014; 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
S. 1719 64
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.
co-Sponsors
(R) Senate District
2013-S1719A (ACTIVE) - Details
- Current Committee:
- Senate Energy And Telecommunications
- Law Section:
- Tax Law
- Laws Affected:
- Rpld Art 12-A, §§1812, 1812-a, 1812-b, 1812-c & 1812-d, amd Tax L, generally; add Art 11-C §§199-o - 199-w, amd §392-i, Gen Bus L; amd §179, Ag & Mkts L; amd §30, Can L; amd §§1.20 & 2.10, CP L; amd §§10-c & 38, Hway L; amd §§385 & 376, Pub Auth L; rpld §54 sub 1 ¶ j sub¶ 7, amd §89-b, St Fin L
- Versions Introduced in 2011-2012 Legislative Session:
-
S7219
2013-S1719A (ACTIVE) - Summary
Repeals article 12-A of the tax law in relation to taxes on gasoline and similar motor fuel; establishes exemptions from state sales tax and the petroleum business tax for retail sales of motor fuel and diesel motor fuel; provides for the regulation of motor fuel distributors, importing transporters and terminal operators by the department of state.
2013-S1719A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
1719--A
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. GRISANTI, MAZIARZ -- read twice and ordered printed,
and when printed to be committed to the Committee on Energy and Tele-
communications -- 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05310-02-3
S. 1719--A 2
S 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 13 of the laws of 2013, 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
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), the commercial solar energy
systems equipment exemption provided for in subdivision (ii) 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, such
commercial 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
SUBDIVISION, 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.
S. 1719--A 3
(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]
(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
S. 1719--A 4
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
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. 1719--A 5
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.
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.
S. 1719--A 6
"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.
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
S. 1719--A 7
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 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
S. 1719--A 8
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
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
S. 1719--A 9
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
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
S. 1719--A 10
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
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,
S. 1719--A 11
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.
(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
S. 1719--A 12
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
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
S. 1719--A 13
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.
(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:
S. 1719--A 14
(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
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.
S. 1719--A 15
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,
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
S. 1719--A 16
(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
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.
S. 1719--A 17
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-
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,
S. 1719--A 18
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-
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;
S. 1719--A 19
(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,
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-
S. 1719--A 20
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
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
S. 1719--A 21
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
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
S. 1719--A 22
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-
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
S. 1719--A 23
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
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. 1719--A 24
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
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
S. 1719--A 25
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
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] 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 partners not a resident of this state, and in the case of a corpo-
ration, 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. 1719--A 26
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
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
S. 1719--A 27
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
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] PART U-1 OF chapter
SIXTY-TWO of the laws of two thousand three that amended this paragraph,
subdivision (d) of section three hundred four-a, paragraph one of subdi-
vision (a) and subdivision (d) of section three hundred five, subdivi-
sion six-a of section four hundred fifteen and subdivision (g) of
section twenty-one hundred twenty-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 twen-
ty-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. 1719--A 28
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
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-
S. 1719--A 29
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)
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
S. 1719--A 30
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
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
S. 1719--A 31
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:
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 FORMER 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 arti-
cles of this chapter and FORMER article ten thereof. The commissioner
and the comptroller shall maintain a system of accounts showing the
amount of revenue collected or received from each of the taxes imposed
by such articles. 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 subdivi-
sion 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 seven-
S. 1719--A 32
ty-one-e of this [chapter] 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 overpayment 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 comp-
troller by the commissioner as the amount to be credited against a past-
due legally enforceable debt owed to a state agency pursuant to para-
graph (a) of subdivision six of section one hundred seventy-one-f of
this article, provided, however, he shall credit to the special offset
fiduciary account, pursuant 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, twenty-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 over-
payment 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 certified 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]
FAMILY ASSISTANCE, the state university of New York, the city university
of New York, or the higher education services corporation, or the reven-
ue 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] 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,]
S. 1719--A 33
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] 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-
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:
S. 1719--A 34
(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
(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
S. 1719--A 35
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 32-a. Subdivision (s) of section 300 of the tax law, as added by
section 5 of part W of chapter 59 of the laws of 2013, is amended to
read as follows:
(s) The term "terminal" shall have the same meaning as in subdivision
[thirteen of section two hundred eighty-two of this chapter] NINE OF
SECTION ONE HUNDRED NINETY-NINE-O OF THE GENERAL BUSINESS LAW.
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-
S. 1719--A 36
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.
(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]
S. 1719--A 37
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.
(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 7 of part W of chapter 59 of the laws of 2013, is amended to
read as follows:
(e) Sales of highway diesel motor fuel, qualified biodiesel, non-high-
way diesel motor fuel and residual petroleum product to registered
distributors of diesel motor fuel and registered residual petroleum
product businesses.
(1) The sale of previously untaxed highway diesel motor fuel 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 the highway
diesel motor fuel is either: (A) being delivered by pipeline, railcar,
barge, tanker or other vessel to a terminal, the operator of which
terminal is registered under [section two hundred eighty-three-b of this
S. 1719--A 38
chapter] SUCH ARTICLE ELEVEN-C, or (B) within such a terminal where it
has been so delivered. Provided, however, that the exemption set forth
in this paragraph shall not apply to any highway diesel motor fuel if it
is removed from a terminal, other than by pipeline, barge, tanker or
other vessel.
(2) 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 as a distribu-
tor 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 biodies-
el or non-highway diesel motor fuel can be dispensed into the fuel tank
of a motor vehicle.
(3) 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].
(4) "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 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.
S. 1719--A 39
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
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
S. 1719--A 40
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
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
S. 1719--A 41
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
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 taxa-
tion 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
S. 1719--A 42
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
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
S. 1719--A 43
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,
(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
S. 1719--A 44
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,
(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-
S. 1719--A 45
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
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,
S. 1719--A 46
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
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
S. 1719--A 47
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
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
S. 1719--A 48
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)
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
S. 1719--A 49
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
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,
S. 1719--A 50
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
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
S. 1719--A 51
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]
pursuant 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
determined 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
operations either within or without this state. Provided, however, if
the commissioner shall determine that the records of any carrier are
inadequate 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 pric-
es being charged on any given day during the first fifteen days of the
previous calendar quarter at a minimum of ten selected truck stops wide-
ly scattered throughout the state. For any return period, a carrier may
elect to use the prevailing price per gallon so established by the
commissioner. 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 oper-
ations within and without this state as the total number of miles trav-
eled within this state bears to the total number of miles traveled with-
in 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
satisfaction that no loss of revenue will result. Where the records of
any carrier are inadequate or incomplete the vehicular units of a carri-
er 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
S. 1719--A 52
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,
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.
S. 1719--A 53
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-
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
S. 1719--A 54
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
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
S. 1719--A 55
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) 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, clause (D) as amended by
section 8 of part W of chapter 59 of the laws of 2013, 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.
(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", "terminal" and "owner" shall have the
same meaning as they have for the purposes of article [twelve-A of this
chapter] ELEVEN-E 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. 1719--A 56
S 54. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
as amended by section 9 of part W of chapter 59 of the laws of 2013, 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 removal of highway diesel motor fuel from a terminal,
other than by pipeline, barge, tanker or other vessel, or 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 to the sale of
CNG or hydrogen; (iii) the sale of previously untaxed qualified biodies-
el, [as] defined [in subdivision twenty-three of section two hundred
eighty-two of this chapter] AS A DIESEL MOTOR FUEL SUBSTITUTE PRODUCED
FROM NONPETROLEUM RENEWABLE RESOURCES THAT MEETS THE REGISTRATION
REQUIREMENTS FOR FUELS AND FUEL ADDITIVES ESTABLISHED BY THE ENVIRON-
MENTAL 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, 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 biodiesel can be dispensed into the fuel tank of a motor
vehicle; or (iv) the sale of previously untaxed highway diesel motor
fuel 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 as a
distributor of diesel motor fuel where the highway diesel motor fuel is
either: (A) being delivered by pipeline, railcar, barge, tanker or other
vessel to a terminal, the operator of which terminal is registered under
[section two hundred eighty-three-b of this chapter] SUCH ARTICLE
ELEVEN-C , or (B) within such a terminal where it has been so delivered.
Provided, however, that the exemption set forth in this subparagraph
shall not apply to any highway diesel motor fuel if it is removed from a
terminal, other than by pipeline, barge, tanker or other vessel.
S 55. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
as amended by section 10 of part W of chapter 59 of the laws of 2013, 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
S. 1719--A 57
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 removal of highway diesel motor fuel from a terminal,
other than by pipeline, barge, tanker or other vessel, or 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; (iii) the sale of
previously untaxed qualified biodiesel, [as] defined [in subdivision
twenty-three of section two hundred eighty-two of this chapter] AS 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 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; or (iv) the
sale of previously untaxed highway diesel motor fuel by a person regis-
tered under article [twelve-A of this chapter] ELEVEN-C OF THE GENERAL
BUSINESS LAW as a distributor of diesel motor fuel to a person regis-
tered under such article [twelve-A] ELEVEN-C as a distributor of diesel
motor fuel where the highway diesel motor fuel is either: (A) being
delivered by pipeline, railcar, barge, tanker or other vessel to a
terminal, the operator of which terminal is registered under [section
two hundred eighty-three-b of this chapter] SUCH ARTICLE ELEVEN-C, or
(B) within such a terminal where it has been so delivered. Provided,
however, that the exemption set forth in this subparagraph shall not
apply to any highway diesel motor fuel once it is removed from a termi-
nal, other than by pipeline, barge, tanker or other vessel.
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
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:
S. 1719--A 58
(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
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
S. 1719--A 59
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
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
S. 1719--A 60
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
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
S. 1719--A 61
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,
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
S. 1719--A 62
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
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. 1719--A 63
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
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. 1719--A 64
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, 2015; 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) 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
(e) 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.
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