Section 203.1 – Definitions — License requirements — Penalty — Application process and requirements — Fee not required — Bonds.

• (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
    • (ii)
      • (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
    • (ii)
      • (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.

• (5)
  • (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:
        • (I)
          • (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:
        • (I)
          • (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.
  • (g)
    • (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).

• (6)
  • (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