2023 New York Laws › TAX - Tax › Article 12-A - Tax on Gasoline and Similar Motor Fuel › 283-B - Licensing of Terminal Operators.

§  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.