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SECTION 283-B
Licensing of terminal operators
Tax (TAX) CHAPTER 60, ARTICLE 12-A
§ 283-b. Licensing of terminal operators. 1. The department of
taxation and finance, 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 of taxation and finance 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 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 act for such applicant in
complying with any requirement of this article, 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 act for such applicant in complying with any requirement
of this article, 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 act for such applicant in complying with any requirement of this
article, 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, (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 act for such
applicant in complying with any requirement of this article, 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 act
for such other person in complying with any requirement of this article
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 with respect 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 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 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
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 act for such applicant in complying with any requirement
of this article 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 act for such applicant in complying with any requirement
of this article, 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 grant
such applicant a license.

3. The tax commission may require a terminal operator to file with the
department of taxation and finance 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 tax commission, in such amount as the
tax commission 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 (i)
pursuant to this article and (ii) pursuant to articles twenty-eight and
twenty-nine of this chapter with respect to motor fuel. The tax
commission 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
securities shall be kept in the joint custody of the comptroller and the
commissioner of taxation and finance and may be sold by the tax
commission 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 commissioner where a licensee, 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 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 of taxation and finance 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 a terminal operator.
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 terminal operator
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, within the meaning of
subdivision eight of section two hundred eighty-three of this article,
bearing on such terminal operator'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
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 of taxation and finance.

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 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 taxes within ten days after
the date the demand therefor is sent by registered or certified mail to
the address of the terminal operator given in his application for a
license, or an address substituted therefor as in this subdivision. A
license may be cancelled or suspended prior to a hearing for the failure
to continue to maintain in full force and effect at all times the
required bond or other security filed with the tax commission. Provided,
however, if a surety bond is cancelled prior to expiration, the tax
commission, after considering all the relevant circumstances, may make
such other arrangements and require the filing of such other bond or
other security as it deems appropriate. Provided, further, a license may
be cancelled or suspended prior to a hearing for the transfer of such
license. A terminal operator shall immediately inform the department, in
writing, of any change in its address and, if the terminal operator is a
corporation 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 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 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
relevant to this section.