NY Tax L § 283 (2021)
2021 New York Laws TAX - Tax Article 12-A - Tax on Gasoline and Similar Motor Fuel 283 - Registration of Distributors.

§ 283. Registration of distributors. 1. The department of taxation and finance, 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 of taxation and finance 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 distributor, 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 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 chapter 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 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  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 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  tax  commission  shall require a distributor 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 payment of any sums  due from  such distributor (i) pursuant to this article and (ii) pursuant to articles twenty-eight and twenty-nine of this chapter  with  respect  to sales and uses of motor fuel. The tax commission shall require that such a  bond  or  other security be filed before a distributor is registered, and the amount thereof may be increased at any time when in its judgment the same is necessary as a protection to the revenues under this article and articles twenty-eight and twenty-nine of this chapter. 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  any  sums  due  from  such distributor  (i)  pursuant to this article and (ii) pursuant to articles twenty-eight and twenty-nine of this chapter with respect to  sales  and uses  of  motor  fuel,  but  no  such sale shall be had until after such distributor 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  (i)  under  this  article  and (ii) pursuant to articles twenty-eight and twenty-nine of this chapter 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 distributor authorizes it to disclose.   4. The registration of any distributor may be cancelled  or  suspended by  the  commissioner  where  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 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 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 commissioner, 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  adopted  pursuant  to  this  article  or article  twenty-eight  of this chapter with respect to motor fuel 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 registration as a distributor without the prior written approval of the commissioner. A registration may also  be  cancelled  or suspended  if  the  commissioner  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 corporation) entitling the holder thereof to vote for the election of directors or trustees of such registrant:  (i)  commits fraud or deceit in his operations as a distributor or has committed fraud or deceit in procuring his registration;  (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 this section, bearing on such distributor'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;  (iv) has impersonated any person represented to be a distributor under this article but not in fact registered under this section; or  (v)  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 of taxation and finance.   A registration may also be cancelled or suspended if the  commissioner 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 corporation) entitling the holder thereof  to  vote for  the  election  of  directors or trustees of such registrant, 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 registration shall not be cancelled or  suspended  nor  shall  an application  for  registration  be  refused  unless  the  registrant  or applicant has had an opportunity for a hearing, provided, however,  that an  application  for registration may be denied without a prior hearing. Provided, further, a registration may be cancelled or suspended  without a  prior  hearing,  for  failure to file a return within ten days of the date prescribed for filing  a  return  under  this  article  or  article twenty-eight  of  this  chapter  with respect to sales and uses of motor fuel, or for nonpayment of any taxes due pursuant  to  this  article  or article  twenty-eight  or  twenty-nine  of  this chapter with respect to sales and uses of motor fuel 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 given in his application for  registration,  or  an  address substituted therefor as provided in this subdivision. A registration 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  registration may be cancelled or suspended prior to a  hearing  for  the  transfer  of  such  registration  without  the  prior  written  approval  of  the  state tax commission. A distributor shall immediately inform  the  department,  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, directors or partners or their residence addresses as shown in  its  application  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 manner  prescribed  for  a  notice  of  determination of tax and all the provisions of this article applicable to a notice of determination under section two hundred eighty-eight of this  chapter,  including,  but  not limited  to,  those  provisions  authorizing  the commissioner to make a redetermination on the commissioner's  own  motion,  shall  apply  to  a notice  issued  pursuant to this subdivision, insofar as such provisions can be made applicable to the notice  authorized  by  this  subdivision, with  such  modifications  as  may  be  necessary  in order to adapt the language  of  such  provisions  to  the  notice   authorized   by   this subdivision.  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  commissioner.  Upon  timely application therefor, a hearing shall be scheduled in  the  division  of tax  appeals,  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 commissioner's refusal to register or ordering the  commissioner  to register  the  applicant. Within fifteen days after the giving of notice of the administrative law judge's determination, the  applicant  or  the commissioner may take exception to the determination. If an exception is taken,  the tax appeals tribunal, within seventy-five days from the date of  notice  to  the  tribunal  that  exception  is  being  taken  to  an administrative  law judge's determination, shall issue a decision either affirming or reversing such determination.  If  the  administrative  law judge  renders a determination ordering the commissioner to register the applicant and the commissioner takes exception  to  such  determination, the commissioner shall not be required to register such applicant unless and  until  the  tax  appeals  tribunal issues a decision affirming such determination. The applicant shall not be  registered  until  there  has been  filed a bond or other security in the required amount. Such notice of proposed  cancellation  or  suspension  or  of  proposed  refusal  to register must be given to such person within five years from the date of the  act  or  omission  referred  to  in subdivision two or four of this section, except that in the case of acts  involving  falsity  or  fraud, such  notice  may be issued at any time. 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 division of tax appeals within ninety days  after  the giving  of  such  notice. Where a registration is cancelled or suspended prior to a hearing, the cancellation or  suspension  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.  (b) Notwithstanding any other provision to the contrary:  (i) In the event that the commissioner 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 thirty  days  from the day the notice and demand therefor has been given by the commissioner. 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 commissioner shall cancel or suspend the registration of such registrant.  (ii) The registrant may apply to the division of  tax  appeals  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 commissioner, provided, the division of tax appeals may, by regulation, for the causes stated  therein,  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 division of tax appeals for good cause, no less than seven days and no more than ten days after the application for a hearing is received by the division  of tax appeals. Within fifteen days of the receipt of the application for a hearing,   unless   extended   by  the  division  of  tax  appeals,  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 commissioner. Notwithstanding 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 commissioner shall cancel or suspend the registration of the registrant. Where the administrative law judge determines that an increased bond or other security is not due but such  determination  is  reversed  by  the  tax appeals tribunal, if the increased bond or other security is not filed within seven days from the day  the  tax  appeals   tribunal   gives   notice   of   its   decision notwithstanding  any judicial review of such decision of the tax appeals tribunal, the commissioner shall cancel or suspend the  registration  of the registrant.   7.  Temporary  restraining  order  and  permanent  injunction  against unlawful importation and forfeiture of unlawfully imported  or  produced motor  fuel  or diesel motor fuel. (a) Whenever evidence is furnished by the commissioner 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 commissioner 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 commissioner  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)  (1)  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 registered as a distributor as required by this article, the court shall grant a judgment (i) permanently enjoining such person  and  his  agents from  selling,  transferring  or otherwise disposing of any such fuel or any fuel within this state and (ii) declaring the forfeiture of any fuel that  was  so  imported,  caused  to  be  imported,  produced,  refined, manufactured, or compounded by such person.  (2) 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 unlawfully sold or transferred by such  person,  the  court  shall  grant  a  judgment  (i) permanently  enjoining  such  other  person  and  his or her agents from selling, releasing, transferring or otherwise disposing of any such fuel and (ii) declaring the forfeiture of such  fuel  in  the  possession  or under the control of such other person.  (d)  The  commissioner  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 commissioner shall require the payment of all taxes, penalties and interest imposed by and pursuant to the authority of this chapter with respect to such fuel.  (e) (1) 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 plus state  excise  and  sales  taxes  and federal  excise  taxes,  to  the  effect  that there will be paid to the commissioner the amount of the market value of such fuel and such  taxes in the event that such fuel is adjudged forfeited.  (2)  Any  person  enjoined  by  a  temporary  order  or  a preliminary injunction 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 temporary orders,  preliminary  injunctions  and  permanent  injunctions issued  under  this  subdivision  and  any provision of this subdivision which  is  not  in  accord  with  the  constitutional  mandate  of  such procedures  of  the  civil  practice law and rules shall be deemed to be modified as necessary to accord with  such  a  mandate.  The  procedural provisions  set  forth  in  paragraph  three  of  subdivision (d) and in subdivision (j) of section eighteen hundred forty-eight of this  chapter shall apply to the forfeiture proceedings under this subdivision and, in respect to a declaration of forfeiture under this subdivision, the court shall  direct  the  commissioner  to  sell  or otherwise dispose of such forfeited motor fuel  or  diesel  motor  fuel  on  such  conditions  the commissioner  deems  most advantageous and just under the circumstances. The commissioner 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 subdivision  shall  apply;  provided,  however if any such conviction be subsequently 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  tax  commission  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 state tax commission shall be personal to the person to whom it  is  granted.  The transfer  of such registration without the prior written approval of the state tax commission is invalid and such transfer without approval shall be  grounds  for  the  immediate  cancellation  or  suspension  of   the registration  of  the  registrant. The tax commission 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  tax  commission  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 state tax commission 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 tax commission may require. If the tax commission fails to  issue  a  determination  within such  time,  the  tax  commission  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 acquisition  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 registrant  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 (A) an ancestor of the decedent, (B) the spouse of the decedent,  (C)  a lineal  descendent  of the decedent, of the descendent's spouse, or of a parent of the decedent, or (D)  the  spouse  of  any  lineal  descendent described  in  (C) hereof, 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 (A), (B), (C) or (D) of this  paragraph  must submit  a  revised  application  for  registration as a distributor. The state tax commission 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 ownership, 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 applicant 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 ownership, directly or indirectly, of voting stock.