59-13-203.1. Definitions -- License requirements -- Penalty -- Application process and requirements -- Fee not required -- Bonds.

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(1)As used in this section:

(a)"applicant" means a person that:

(i)is required by this section to obtain a license; and

(ii)submits an application:

(A)to the commission; and

(B)for a license under this section;

(b)"application" means an application for a license under this section;

(c)"fiduciary of the applicant" means a person that:

(i)is required to collect, truthfully account for, and pay over a tax under this part for an applicant; and

(A)is a corporate officer of the applicant described in Subsection (1)(c)(i) ;

(B)is a director of the applicant described in Subsection (1)(c)(i) ;

(C)is an employee of the applicant described in Subsection (1)(c)(i) ;

(D)is a partner of the applicant described in Subsection (1)(c)(i) ;

(E)is a trustee of the applicant described in Subsection (1)(c)(i) ; or

(F)has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through

(E)as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act ;

(d)"fiduciary of the licensee" means a person that:

(i)is required to collect, truthfully account for, and pay over a tax under this part for a licensee; and

(A)is a corporate officer of the licensee described in Subsection (1)(d)(i) ;

(B)is a director of the licensee described in Subsection (1)(d)(i) ;

(C)is an employee of the licensee described in Subsection (1)(d)(i) ;

(D)is a partner of the licensee described in Subsection (1)(d)(i) ;

(E)is a trustee of the licensee described in Subsection (1)(d)(i) ; or

(F)has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through

(E)as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act ;

(e)"license" means a license under this section; and

(f)"licensee" means a person that is licensed under this section by the commission.

(2)A person that is required to collect a tax under this part is guilty of a criminal violation as provided in Section 59-1-401 if before obtaining a license under this section that person engages in business within the state.

(3)The license described in Subsection

(2):

(a)shall be granted and issued:

(i)by the commission in accordance with this section;

(ii)without a license fee; and

(iii)if:

(A)an applicant:

(I)states the applicant's name and address in the application; and

(II)provides other information in the application that the commission may require; and

(B)the person meets the requirements of this section to be granted a license as determined by the commission;

(b)may not be assigned to another person; and

(c)is valid:

(i)only for the person named on the license; and

(ii)until:

(A)the person described in Subsection (3)(c)(i) :

(I)ceases to do business; or

(II)changes that person's business address; or

(B)the commission revokes the license.

(4)The commission shall review an application and determine whether:

(a)the applicant meets the requirements of this section to be issued a license; and

(b)a bond is required to be posted with the commission in accordance with Subsection

(5)before the applicant may be issued a license.

(a)An applicant shall post a bond with the commission before the commission may issue the applicant a license if:

(i)a license under this section was revoked for a delinquency under this part for:

(A)the applicant;

(B)a fiduciary of the applicant; or

(C)a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(ii)there is a delinquency in paying a tax under this part for:

(A)the applicant;

(B)a fiduciary of the applicant; or

(C)a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part.

(b)If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to:

(i)for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsections (5)(c) through

(g); or

(ii)for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.

(c)A bond under this Subsection

(5)shall be:

(i)executed by:

(A)for an applicant, the applicant as principal, with a corporate surety; or

(B)for a licensee, the licensee as principal, with a corporate surety; and

(ii)payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:

(A)the payment of all taxes under this part;

(B)the payment of any:

(I)penalty as provided in Section 59-1-401 ; or

(II)interest as provided in Section 59-1-402 ; or

(C)any other obligation of the:

(I)applicant under this part; or

(II)licensee under this part.

(d)Except as provided in Subsection (5)(f) , the commission shall calculate the amount of a bond under this Subsection

(5)on the basis of:

(i)commission estimates of:

(A)an applicant's tax liability under this part; or

(B)a licensee's tax liability under this part; and

(ii)the amount of a delinquency described in Subsection (5)(e) if:

(A)a license under this section was revoked for a delinquency under this part for:

(Aa)an applicant; or

(Bb)a licensee;

(II)a fiduciary of the:

(Aa)applicant; or

(Bb)licensee; or

(III)a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or

(B)there is a delinquency in paying a tax under this part for:

(Aa)an applicant; or

(Bb)a licensee;

(II)a fiduciary of the:

(Aa)applicant; or

(Bb)licensee; or

(III)a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.

(e)Except as provided in Subsection (5)(f) , for purposes of Subsection (5)(d)(ii) :

(i)for an applicant, the amount of the delinquency is the sum of:

(A)the amount of any delinquency that served as a basis for revoking the license under this section of:

(I)the applicant;

(II)a fiduciary of the applicant; or

(III)a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(B)the amount of tax that any of the following owe under this part:

(I)the applicant;

(II)a fiduciary of the applicant; and

(III)a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(ii)for a licensee, the amount of the delinquency is the sum of:

(A)the amount of any delinquency that served as a basis for revoking the license under this section of:

(I)the licensee;

(II)a fiduciary of the licensee; or

(III)a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or

(B)the amount of tax that any of the following owe under this part:

(I)the licensee;

(II)a fiduciary of the licensee; and

(III)a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.

(f)Notwithstanding Subsection (5)(d) or

(e), a bond required by this Subsection

(5)may not:

(i)be less than $10,000; or

(ii)exceed $500,000.

(i)Subject to Subsection (5)(g)(ii) , a bond required by this section may be combined into one bond with any other bond required by this chapter.

(ii)For purposes of Subsection (5)(g)(i) , if a bond required by this section is combined into one bond with any other bond required by this chapter, the amount of that combined bond is determined by:

(A)calculating the separate amount of each bond required for each type of fuel included in the combined bond; and

(B)aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A) .

(a)The commission shall revoke a license under this section if:

(i)a licensee violates any provision of this part; and

(ii)before the commission revokes the license the commission provides the licensee:

(A)reasonable notice; and

(B)a hearing.

(b)If the commission revokes a licensee's license in accordance with Subsection (6)(a) , the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:

(i)paying any:

(A)tax due under this part;

(B)penalty as provided in Section 59-1-401 ; or

(C)interest as provided in Section 59-1-402 ; and

(ii)posting a bond in accordance with Subsection

(5).

Amended by Chapter 382 , 2008 General Session