2023 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.