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SECTION 283-A
Licensing of importing transporters
Tax (TAX) CHAPTER 60, ARTICLE 12-A
§ 283-a. 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,
distribution, 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 commissioner ascertains
that (a) any tax imposed under this chapter or any related statute as
defined in section eighteen hundred of this chapter has been finally
determined to be due from such applicant or from any 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 any shareholder or
employee of such applicant under a duty to file a return under or
pursuant to the authority of this article or pay the taxes imposed by or
pursuant to the authority of this article on behalf of such applicant,
and has not been paid in full, (b) a liability for the penalty provided
for under subdivision two of section two hundred eighty-nine-b of this
article has been finally determined to be due from an officer, director,
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, employee or partner of such applicant or a
shareholder of such applicant under a duty to file a return under or
pursuant to the authority of this article or pay the taxes imposed by or
pursuant to the authority of this article on behalf of such applicant,
and has not been paid in full, (c) such applicant has been 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 under this chapter, within the preceding five
years, (d) 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
corporation) entitling the holder thereof to vote for the election of
directors or trustees, or an employee or shareholder of such applicant
who, as such employee or shareholder, is under a duty to file a return
under or pursuant to the authority of this article or pay the taxes
imposed by or pursuant to the authority of this article on behalf of
such applicant, has been 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 under
this chapter, within the preceding five years, or an employee of such
applicant was, in his capacity as a person under a duty to file a return
under or pursuant to the authority of this article or pay the taxes
imposed by or pursuant to the authority of this article on behalf of any
person, 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 under this chapter,
within the preceding five years, (e) such applicant, or 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 shareholder of such applicant under a duty to file a return
under or pursuant to the authority of this article or to pay the taxes
imposed by or pursuant to the authority of this article on behalf of
such 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) entitling the holder thereof to vote for the election of
directors or trustees, or who was an employee or shareholder of another
person under a duty to file a return under or pursuant to the authority
of this article or pay the taxes imposed by or pursuant to the authority
of this article on behalf of such other person at the time any tax
imposed under this chapter or any related statute as defined in section
eighteen hundred of this chapter was finally determined to be due from
such other person and where such tax has not been paid in full, or 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 State of a criminal offense which, if committed
and prosecuted in this state, would constitute a similar crime under
this chapter, 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
tax payment history of such other person shall be limited to the taxes
imposed by this article or by or pursuant to article twenty-eight or
twenty-nine of this chapter with respect to motor fuel and the
applicable examination of prior criminal convictions shall be limited to
those which relate to motor fuel, (f) the license 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 shareholder of such applicant
under a duty to file a return under or pursuant to the authority of this
article or to pay the taxes imposed by or pursuant to the authority of
this article on behalf of such applicant has been cancelled or suspended
pursuant to subdivision four of this section within the preceding five
years, or (g) 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 under a duty to file a return under or pursuant to the
authority of this article or to pay the taxes imposed by or pursuant to
the authority of this article on behalf of the applicant, 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
commissioner may refuse to register such applicant.

3. The commissioner 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 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
performance by such transporter of the duties and responsibilities
required (i) pursuant to this article and (ii) pursuant to articles
twenty-eight and twenty-nine of this chapter with respect to motor fuel.
The commissioner may require that such a bond or other security be filed
before a transporter is licensed, and the amount thereof may be
increased at any time when in the commissioner's judgment the same is
necessary. If securities are deposited as security under this
subdivision, such securities shall be kept in the joint custody of the
comptroller and the commissioner and may be sold by the commissioner if
it becomes necessary so to do in order to recover against such
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 commissioner where 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, fails to file a bond or other security when required or when
the amount thereof is increased, or fails to comply with any of the
provisions of this article or article twenty-eight of this chapter with
respect to motor fuel or any rule or regulation with respect to motor
fuel adopted pursuant to such articles by the department or by the
commissioner, 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 commissioner 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 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:

(i) commits fraud or deceit in his operations as a transporter or has
committed fraud or deceit in procuring his license;

(ii) 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 two hundred eighty-three of this article, bearing on
such transporter's duties and obligations under this chapter;

(iii) 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

(iv) 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 commissioner
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 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, 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 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
omissions 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
application 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, further, a license may be cancelled or suspended without a
prior hearing, for failure to file a return or report within ten days of
the date prescribed for filing under this article or for nonpayment of
any sums due pursuant to this article or article twenty-eight or
twenty-nine of this chapter with respect to motor fuel if the licensee
shall have failed to file such return or report or pay such sums within
ten days after the date the demand therefor is sent by registered or
certified mail to the address of the transporter given in his
application for a license, or an address substituted therefor as in this
subdivision. A license 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 commissioner.
Provided, however, if a surety bond is cancelled prior to expiration,
the commissioner, after considering all the relevant circumstances, may
make such other arrangements and require the filing of such other bond
or other security as the commissioner 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
transporter is a corporation or partnership, the transporter 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 a license.

6. The provisions of subdivisions six, eight, nine and ten of section
two hundred eighty-three 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.