302 - Registration of petroleum businesses.

§   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.    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  or,  where  applicable,  as  a  "distributor  of  kero-jet fuel only" under such article. Each petroleum  business with respect to residual petroleum product must  be  registered  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  residual  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 of taxation  and finance, 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  of  taxation  and finance 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 or in subdivision (d) of this section. The  application shall be in such form and contain such  information  as  the  commissioner shall prescribe. All of the provisions of subdivisions two,  four,  five,  six,  seven,  eight,  nine  and ten of section two hundred  eighty-three of this chapter relating to  registration  of  distributors  shall  be  applicable  to the registration of residual petroleum product  businesses 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,  specifically, that the term "distributor" shall  be  read  as  "residual  petroleum  product  business" and the terms "motor fuel" and "automotive  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 unincorporated 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  insurance 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 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 apetroleum  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  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. 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 relating to increasing the amount of the  bond or other security required to be filed pursuant to article twelve-A  of this chapter 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  business,  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, 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, 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 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 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  as  a  distributor  of  motor  fuel, diesel motor fuel orkero-jet fuel only or under this section as a residual petroleum product  business are those grounds specified in section two hundred eighty-three  of this chapter 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  corporation) entitling the holder thereof to vote for  the  election  of  directors  or trustees, or an employee or shareholder of such registrant  under a duty to file a return under or pursuant to the authority of this  article or 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  registration,    (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  unincorporated 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  corporation)  entitling  the  holder thereof to vote for the election of  directors or trustees, or an employee or shareholder of such  registrant  under a duty to file a return under or pursuant to the authority of this  article or article twelve-A of this chapter on behalf of the registrant,  was  an  officer,  director  or  partner  of  another  person  or  was a  shareholder directly or indirectly owning more than ten percent  of  the  number  of shares of stock of another person (where such other person is  a corporation) entitling the holder thereof to vote for the election  of  directors  or  trustees,  or  was  an employee or shareholder of anotherperson 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  article  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 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 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  application,  or  an  address  substituted  therefor  as   provided   in  subdivision five of section two hundred eighty-three of this chapter,    (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.