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H.B. 291 Enrolled

             1     

STATE TAX COMMISSION BONDING AND

             2     
LICENSING AMENDMENTS

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Revenue and Taxation title relating to bonding and licensing.
             11      Highlighted Provisions:
             12          This bill:
             13          .    repeals definitions relating to an agent for purposes of bonding and licensing with
             14      the State Tax Commission;
             15          .    repeals provisions relating to an agent for purposes of bonding requirements with
             16      the State Tax Commission and calculating the amount of a bond;
             17          .    reduces the minimum amount of a bond for purposes of certain taxes;
             18          .    repeals language establishing the minimum amount of a bond for purposes of the
             19      aviation fuel tax;
             20          .    allows a bond to be combined with another bond into one bond under certain
             21      circumstances;
             22          .    repeals obsolete language; and
             23          .    makes technical changes.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None
             28      Utah Code Sections Affected:
             29      AMENDS:


             30          59-10-405.5, as enacted by Chapter 198, Laws of Utah 2005
             31          59-12-106, as last amended by Chapter 198, Laws of Utah 2005
             32          59-13-203.1, as enacted by Chapter 198, Laws of Utah 2005
             33          59-13-302, as last amended by Chapter 198, Laws of Utah 2005
             34          59-13-403, as last amended by Chapter 179, Laws of Utah 1999
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 59-10-405.5 is amended to read:
             38           59-10-405.5. Definitions -- Withholding tax license requirements -- Penalty --
             39      Application process and requirements -- Fee not required -- Bonds.
             40          (1) As used in this section:
             41          [(a) "agent" means a person that:]
             42          [(i) withholds, reports, or remits any amounts under this part for:]
             43          [(A) an applicant; or]
             44          [(B) a licensee; and]
             45          [(ii) in accordance with an agreement between the person and the applicant or licensee
             46      described in Subsection (1)(a)(i), is required to collect, truthfully account for, and pay over an
             47      amount under this part for the:]
             48          [(A) applicant; or]
             49          [(B) licensee;]
             50          [(b)] (a) "applicant" means a person that:
             51          (i) is required by this section to obtain a license; and
             52          (ii) submits an application:
             53          (A) to the commission; and
             54          (B) for a license under this section;
             55          [(c)] (b) "application" means an application for a license under this section;
             56          [(d)] (c) "fiduciary of the applicant" means a person that:
             57          (i) is required to collect, truthfully account for, and pay over an amount under this part


             58      for an applicant; and
             59          [(ii) is not an agent of the applicant described in Subsection (1)(d)(i); and]
             60          [(iii)] (ii) (A) is a corporate officer of the applicant described in Subsection
             61      (1)[(d)](c)(i);
             62          (B) is a director of the applicant described in Subsection (1)[(d)](c)(i);
             63          (C) is an employee of the applicant described in Subsection (1)[(d)](c)(i);
             64          (D) is a partner of the applicant described in Subsection (1)[(d)](c)(i);
             65          (E) is a trustee of the applicant described in Subsection (1)[(d)](c)(i); or
             66          (F) has a relationship to the applicant described in Subsection (1)[(d)](c)(i) that is
             67      similar to a relationship described in Subsections (1)[(d)(iii)](c)(ii)(A) through (E) as
             68      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             69      Administrative Rulemaking Act;
             70          [(e)] (d) "fiduciary of the licensee" means a person that:
             71          (i) is required to collect, truthfully account for, and pay over an amount under this part
             72      for a licensee; and
             73          [(ii) is not an agent of the licensee described in Subsection (1)(e)(i); and]
             74          [(iii)] (ii) (A) is a corporate officer of the licensee described in Subsection
             75      (1)[(e)](d)(i);
             76          (B) is a director of the licensee described in Subsection (1)[(e)](d)(i);
             77          (C) is an employee of the licensee described in Subsection (1)[(e)](d)(i);
             78          (D) is a partner of the licensee described in Subsection (1)[(e)](d)(i);
             79          (E) is a trustee of the licensee described in Subsection (1)[(e)](d)(i); or
             80          (F) has a relationship to the licensee described in Subsection (1)[(e)](d)(i) that is
             81      similar to a relationship described in Subsections (1)[(e)(iii)](d)(ii)(A) through (E) as
             82      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             83      Administrative Rulemaking Act;
             84          [(f)] (e) "license" means a license under this section; and
             85          [(g)] (f) "licensee" means a person that is licensed under this section by the


             86      commission.
             87          (2) The following persons are guilty of a criminal violation as provided in Section
             88      59-1-401 :
             89          (a) a person that:
             90          (i) is required to withhold, report, or remit any amounts under this part; and
             91          (ii) engages in business within the state before obtaining a license under this section; or
             92          (b) a person that:
             93          (i) pays wages under this part; and
             94          (ii) engages in business within the state before obtaining a license under this section[;
             95      or].
             96          [(c) an agent that:]
             97          [(i) is required to withhold, report, or remit any amounts under this part; and]
             98          [(ii) takes the action described in Subsection (2)(c)(i) before obtaining a license under
             99      this section.]
             100          (3) The license described in Subsection (2):
             101          (a) shall be granted and issued:
             102          (i) by the commission in accordance with this section;
             103          (ii) without a license fee; and
             104          (iii) if:
             105          (A) an applicant:
             106          (I) states the applicant's name and address in the application; and
             107          (II) provides other information in the application that the commission may require; and
             108          (B) the person meets the requirements of this section to be granted a license as
             109      determined by the commission;
             110          (b) may not be assigned to another person; and
             111          (c) is valid:
             112          (i) only for the person named on the license; and
             113          (ii) until:


             114          (A) the person described in Subsection (3)(c)(i):
             115          (I) ceases to do business; or
             116          (II) changes that person's business address; or
             117          (B) the commission revokes the license.
             118          (4) The commission shall review an application and determine whether:
             119          (a) the applicant meets the requirements of this section to be issued a license; and
             120          (b) a bond is required to be posted with the commission in accordance with
             121      Subsections (5) and (6) before the applicant may be issued a license.
             122          (5) (a) An applicant shall post a bond with the commission before the commission may
             123      issue the applicant a license if:
             124          (i) a license under this section was revoked for a delinquency under this part for:
             125          (A) the applicant;
             126          (B) a fiduciary of the applicant; or
             127          (C) a person for which the applicant or the fiduciary of the applicant is required to
             128      collect, truthfully account for, and pay over an amount under this part; or
             129          (ii) there is a delinquency in withholding, reporting, or remitting any amount under this
             130      part for:
             131          (A) an applicant;
             132          (B) a fiduciary of the applicant; or
             133          (C) a person for which the applicant or the fiduciary of the applicant is required to
             134      collect, truthfully account for, and pay over an amount under this part.
             135          (b) If the commission determines it is necessary to ensure compliance with this part,
             136      the commission may require a licensee to:
             137          (i) for a licensee that has not posted a bond under this section with the commission,
             138      post a bond with the commission in accordance with Subsection (6); or
             139          (ii) for a licensee that has posted a bond under this section with the commission,
             140      increase the amount of the bond posted with the commission.
             141          [(c) An agent shall post a bond with the commission before the commission may issue


             142      the agent a license under this section.]
             143          (6) (a) A bond required by Subsection (5) shall be:
             144          (i) executed by:
             145          (A) for an applicant, the applicant as principal, with a corporate surety; or
             146          (B) for a licensee, the licensee as principal, with a corporate surety; [or] and
             147          [(C) for an agent, the agent as principal, with a corporate surety; and]
             148          (ii) payable to the commission conditioned upon the faithful performance of all of the
             149      requirements of this part including:
             150          (A) the withholding or remitting of any amount under this part;
             151          (B) the payment of any:
             152          (I) penalty as provided in Section 59-1-401 ; or
             153          (II) interest as provided in Section 59-1-402 ; or
             154          (C) any other obligation of the:
             155          (I) applicant under this part; or
             156          (II) licensee under this part[; or].
             157          [(III) agent under this part.]
             158          (b) Except as provided in Subsection (6)(d), the commission shall calculate the amount
             159      of a bond required by Subsection (5) on the basis of:
             160          (i) commission estimates of:
             161          (A) for an applicant, any amounts the applicant withholds, reports, or remits under this
             162      part; or
             163          (B) for a licensee, any amounts the licensee withholds, reports, or remits under this
             164      part; [or] and
             165          [(C) for an agent, any amounts the agent withholds, reports, or remits under this part;
             166      and]
             167          (ii) any amount of a delinquency described in Subsection (6)(c).
             168          (c) Except as provided in Subsection (6)(d), for purposes of Subsection (6)(b)(ii):
             169          (i) for an applicant, the amount of the delinquency is the sum of:


             170          (A) the amount of any delinquency that served as a basis for revoking the license under
             171      this section of:
             172          (I) the applicant;
             173          (II) a fiduciary of the applicant; or
             174          (III) a person for which the applicant or the fiduciary of the applicant is required to
             175      collect, truthfully account for, and pay over an amount under this part; or
             176          (B) the amount that any of the following owe under this part:
             177          (I) the applicant;
             178          (II) a fiduciary of the applicant; and
             179          (III) a person for which the applicant or the fiduciary of the applicant is required to
             180      collect, truthfully account for, and pay over an amount under this part; or
             181          (ii) for a licensee, the amount of the delinquency is the sum of:
             182          (A) the amount of any delinquency that served as a basis for revoking the license under
             183      this section of:
             184          (I) the licensee;
             185          (II) a fiduciary of the licensee; or
             186          (III) a person for which the licensee or the fiduciary of the licensee is required to
             187      collect, truthfully account for, and pay over an amount under this part; or
             188          (B) the amount that any of the following owe under this part:
             189          (I) the licensee;
             190          (II) a fiduciary of the licensee; and
             191          (III) a person for which the licensee or the fiduciary of the licensee is required to
             192      collect, truthfully account for, and pay over an amount under this part[; or].
             193          [(iii) for an agent, the amount of the delinquency is the sum of:]
             194          [(A) the amount of any delinquency that served as a basis for revoking the agent's
             195      license under this section; or]
             196          [(B) the amount that the agent owes under this part.]
             197          (d) Notwithstanding Subsection (6)(b) or (c), a bond required by Subsection (5) may


             198      not:
             199          (i) be less than [$50,000] $25,000; or
             200          (ii) exceed $500,000.
             201          (7) (a) The commission shall revoke a license under this section if:
             202          (i) a licensee violates any provision of this part; and
             203          (ii) before the commission revokes the license the commission provides the licensee:
             204          (A) reasonable notice; and
             205          (B) a hearing.
             206          (b) If the commission revokes a licensee's license in accordance with Subsection (7)(a),
             207      the commission may not issue another license to that licensee until that licensee complies with
             208      the requirements of this part, including:
             209          (i) paying any:
             210          (A) amounts due under this part;
             211          (B) penalty as provided in Section 59-1-401 ; or
             212          (C) interest as provided in Section 59-1-402 ; and
             213          (ii) posting a bond in accordance with Subsections (5) and (6).
             214          Section 2. Section 59-12-106 is amended to read:
             215           59-12-106. Definitions -- Sales and use tax license requirements -- Penalty --
             216      Application process and requirements -- No fee -- Bonds -- Presumption of taxability --
             217      Exemption certificates -- Exemption certificate license number to accompany contract
             218      bids.
             219          (1) As used in this section:
             220          [(a) "agent" means a person that:]
             221          [(i) remits a tax under this chapter for:]
             222          [(A) an applicant; or]
             223          [(B) a licensee; and]
             224          [(ii) in accordance with an agreement between the person and the applicant or licensee
             225      described in Subsection (1)(a)(i), is required to collect, truthfully account for, and pay over a


             226      tax under this chapter for the:]
             227          [(A) applicant; or]
             228          [(B) licensee;]
             229          [(b)] (a) "applicant" means a person that:
             230          (i) is required by this section to obtain a license; and
             231          (ii) submits an application:
             232          (A) to the commission; and
             233          (B) for a license under this section;
             234          [(c)] (b) "application" means an application for a license under this section;
             235          [(d)] (c) "fiduciary of the applicant" means a person that:
             236          (i) is required to collect, truthfully account for, and pay over a tax under this chapter
             237      for an applicant; and
             238          [(ii) is not an agent of the applicant described in Subsection (1)(d)(i); and]
             239          [(iii)] (ii) (A) is a corporate officer of the applicant described in Subsection
             240      (1)[(d)](c)(i);
             241          (B) is a director of the applicant described in Subsection (1)[(d)](c)(i);
             242          (C) is an employee of the applicant described in Subsection (1)[(d)](c)(i);
             243          (D) is a partner of the applicant described in Subsection (1)[(d)](c)(i);
             244          (E) is a trustee of the applicant described in Subsection (1)[(d)](c)(i); or
             245          (F) has a relationship to the applicant described in Subsection (1)[(d)](c)(i) that is
             246      similar to a relationship described in Subsections (1)[(d)(iii)](c)(ii)(A) through (E) as
             247      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             248      Administrative Rulemaking Act;
             249          [(e)] (d) "fiduciary of the licensee" means a person that:
             250          (i) is required to collect, truthfully account for, and pay over a tax under this chapter
             251      for a licensee; and
             252          [(ii) is not an agent of the licensee described in Subsection (1)(e)(i); and]
             253          [(iii)] (ii) (A) is a corporate officer of the licensee described in Subsection


             254      (1)[(e)](d)(i);
             255          (B) is a director of the licensee described in Subsection (1)[(e)](d)(i);
             256          (C) is an employee of the licensee described in Subsection (1)[(e)](d)(i);
             257          (D) is a partner of the licensee described in Subsection (1)[(e)](d)(i);
             258          (E) is a trustee of the licensee described in Subsection (1)[(e)](d)(i); or
             259          (F) has a relationship to the licensee described in Subsection (1)[(e)](d)(i) that is
             260      similar to a relationship described in Subsections (1)[(e)(iii)](d)(ii)(A) through (E) as
             261      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             262      Administrative Rulemaking Act;
             263          [(f)] (e) "license" means a license under this section; and
             264          [(g)] (f) "licensee" means a person that is licensed under this section by the
             265      commission.
             266          (2) (a) It is unlawful for any person required to collect a tax under this chapter to
             267      engage in business within the state without first having obtained a license to do so.
             268          (b) The license described in Subsection (2)(a):
             269          (i) shall be granted and issued by the commission;
             270          (ii) is not assignable;
             271          (iii) is valid only for the person in whose name the license is issued;
             272          (iv) is valid until:
             273          (A) the person described in Subsection (2)(b)(iii):
             274          (I) ceases to do business; or
             275          (II) changes that person's business address; or
             276          (B) the license is revoked by the commission; and
             277          (v) subject to Subsection (2)(d), shall be granted by the commission only upon an
             278      application that:
             279          (A) states the name and address of the applicant; and
             280          (B) provides other information the commission may require.
             281          (c) At the time an applicant makes an application under Subsection (2)(b)(v), the


             282      commission shall notify the applicant of the responsibilities and liability of a business owner
             283      successor under Section 59-12-112 .
             284          (d) The commission shall review an application and determine whether the applicant:
             285          (i) meets the requirements of this section to be issued a license; and
             286          (ii) is required to post a bond with the commission in accordance with Subsections
             287      (2)(e) and (f) before the applicant may be issued a license.
             288          (e) (i) An applicant shall post a bond with the commission before the commission may
             289      issue the applicant a license if:
             290          (A) a license under this section was revoked for a delinquency under this chapter for:
             291          (I) the applicant;
             292          (II) a fiduciary of the applicant; or
             293          (III) a person for which the applicant or the fiduciary of the applicant is required to
             294      collect, truthfully account for, and pay over a tax under this chapter; or
             295          (B) there is a delinquency in paying a tax under this chapter for:
             296          (I) the applicant;
             297          (II) a fiduciary of the applicant; or
             298          (III) a person for which the applicant or the fiduciary of the applicant is required to
             299      collect, truthfully account for, and pay over a tax under this chapter.
             300          (ii) If the commission determines it is necessary to ensure compliance with this
             301      chapter, the commission may require a licensee to:
             302          (A) for a licensee that has not posted a bond under this section with the commission,
             303      post a bond with the commission in accordance with Subsection (2)(f); or
             304          (B) for a licensee that has posted a bond under this section with the commission,
             305      increase the amount of the bond posted with the commission.
             306          (f) (i) A bond required by Subsection (2)(e) shall be:
             307          (A) executed by:
             308          (I) for an applicant, the applicant as principal, with a corporate surety; or
             309          (II) for a licensee, the licensee as principal, with a corporate surety; and


             310          (B) payable to the commission conditioned upon the faithful performance of all of the
             311      requirements of this chapter including:
             312          (I) the payment of any tax under this chapter;
             313          (II) the payment of any:
             314          (Aa) penalty as provided in Section 59-1-401 ; or
             315          (Bb) interest as provided in Section 59-1-402 ; or
             316          (III) any other obligation of the:
             317          (Aa) applicant under this chapter; or
             318          (Bb) licensee under this chapter.
             319          (ii) Except as provided in Subsection (2)(f)(iv), the commission shall calculate the
             320      amount of a bond required by Subsection (2)(e) on the basis of:
             321          (A) commission estimates of:
             322          (I) an applicant's tax liability under this chapter; or
             323          (II) a licensee's tax liability under this chapter; and
             324          (B) any amount of a delinquency described in Subsection (2)(f)(iii).
             325          (iii) Except as provided in Subsection (2)(f)(iv), for purposes of Subsection
             326      (2)(f)(ii)(B):
             327          (A) for an applicant, the amount of the delinquency is the sum of:
             328          (I) the amount of any delinquency that served as a basis for revoking the license under
             329      this section of:
             330          (Aa) the applicant;
             331          (Bb) a fiduciary of the applicant; or
             332          (Cc) a person for which the applicant or the fiduciary of the applicant is required to
             333      collect, truthfully account for, and pay over a tax under this chapter; or
             334          (II) the amount of tax that any of the following owe under this chapter:
             335          (Aa) the applicant;
             336          (Bb) a fiduciary of the applicant; and
             337          (Cc) a person for which the applicant or the fiduciary of the applicant is required to


             338      collect, truthfully account for, and pay over a tax under this chapter; or
             339          (B) for a licensee, the amount of the delinquency is the sum of:
             340          (I) the amount of any delinquency that served as a basis for revoking the license under
             341      this section of:
             342          (Aa) the licensee;
             343          (Bb) a fiduciary of the licensee; or
             344          (Cc) a person for which the licensee or the fiduciary of the licensee is required to
             345      collect, truthfully account for, and pay over a tax under this chapter; or
             346          (II) the amount of tax that any of the following owe under this chapter:
             347          (Aa) the licensee;
             348          (Bb) a fiduciary of the licensee; and
             349          (Cc) a person for which the licensee or the fiduciary of the licensee is required to
             350      collect, truthfully account for, and pay over a tax under this chapter.
             351          (iv) Notwithstanding Subsection (2)(f)(ii) or (2)(f)(iii), a bond required by Subsection
             352      (2)(e) may not:
             353          (A) be less than [$50,000] $25,000; or
             354          (B) exceed $500,000.
             355          (g) If business is transacted at two or more separate places by one person, a separate
             356      license for each place of business is required.
             357          (h) (i) The commission shall, on a reasonable notice and after a hearing, revoke the
             358      license of any licensee violating any provisions of this chapter.
             359          (ii) A license may not be issued to a licensee described in Subsection (2)(h)(i) until the
             360      licensee has complied with the requirements of this chapter, including:
             361          (A) paying any:
             362          (I) tax due under this chapter;
             363          (II) penalty as provided in Section 59-1-401 ; or
             364          (III) interest as provided in Section 59-1-402 ; and
             365          (B) posting a bond in accordance with Subsections (2)(e) and (f).


             366          (i) Any person required to collect a tax under this chapter within this state without
             367      having secured a license to do so is guilty of a criminal violation as provided in Section
             368      59-1-401 .
             369          (j) A license:
             370          (i) is not required for any person engaged exclusively in the business of selling
             371      commodities that are exempt from taxation under this chapter; and
             372          (ii) shall be issued to the person by the commission without a license fee.
             373          (3) (a) For the purpose of the proper administration of this chapter and to prevent
             374      evasion of the tax and the duty to collect the tax, it shall be presumed that tangible personal
             375      property or any other taxable transaction under Subsection 59-12-103 (1) sold by any person for
             376      delivery in this state is sold for storage, use, or other consumption in this state unless the
             377      person selling the property, item, or service has taken from the purchaser an exemption
             378      certificate:
             379          (i) bearing the name and address of the purchaser; and
             380          (ii) providing that the property, item, or service was exempted under Section
             381      59-12-104 .
             382          (b) An exemption certificate described in Subsection (3)(a):
             383          (i) shall contain information as prescribed by the commission; and
             384          (ii) if a paper exemption certificate is used, shall be signed by the purchaser.
             385          (c) Except as provided in Subsection (3)(d), a seller that has taken an exemption
             386      certificate from a purchaser in accordance with this Subsection (3) with respect to a transaction
             387      is not liable to collect a tax under this chapter:
             388          (i) on that transaction; and
             389          (ii) if the commission or a court of competent jurisdiction subsequently determines that
             390      the purchaser improperly claimed the exemption.
             391          (d) Notwithstanding Subsection (3)(c), Subsection (3)(c) does not apply to a seller that:
             392          (i) fraudulently fails to collect a tax under this chapter; or
             393          (ii) solicits a purchaser to participate in improperly claiming an exemption from a tax


             394      under this chapter.
             395          (4) A person filing a contract bid with the state or a political subdivision of the state for
             396      the sale of tangible personal property or any other taxable transaction under Subsection
             397      59-12-103 (1) shall include with the bid the number of the license issued to that person under
             398      Subsection (2).
             399          Section 3. Section 59-13-203.1 is amended to read:
             400           59-13-203.1. Definitions -- License requirements -- Penalty -- Application process
             401      and requirements -- Fee not required -- Bonds.
             402          (1) As used in this section:
             403          [(a) "agent" means a person that:]
             404          [(i) remits a tax under this part for:]
             405          [(A) an applicant; or]
             406          [(B) a licensee; and]
             407          [(ii) in accordance with an agreement between the person and the applicant or licensee
             408      described in Subsection (1)(a)(i), is required to collect, truthfully account for, and pay over a
             409      tax under this part for the:]
             410          [(A) applicant; or]
             411          [(B) licensee;]
             412          [(b)] (a) "applicant" means a person that:
             413          (i) is required by this section to obtain a license; and
             414          (ii) submits an application:
             415          (A) to the commission; and
             416          (B) for a license under this section;
             417          [(c)] (b) "application" means an application for a license under this section;
             418          [(d)] (c) "fiduciary of the applicant" means a person that:
             419          (i) is required to collect, truthfully account for, and pay over a tax under this part for an
             420      applicant; and
             421          [(ii) is not an agent of the applicant described in Subsection (1)(d)(i); and]


             422          [(iii)] (ii) (A) is a corporate officer of the applicant described in Subsection
             423      (1)[(d)](c)(i);
             424          (B) is a director of the applicant described in Subsection (1)[(d)](c)(i);
             425          (C) is an employee of the applicant described in Subsection (1)[(d)](c)(i);
             426          (D) is a partner of the applicant described in Subsection (1)[(d)](c)(i);
             427          (E) is a trustee of the applicant described in Subsection (1)[(d)](c)(i); or
             428          (F) has a relationship to the applicant described in Subsection (1)[(d)](c)(i) that is
             429      similar to a relationship described in Subsections (1)[(d)(iii)](c)(ii)(A) through (E) as
             430      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             431      Administrative Rulemaking Act;
             432          [(e)] (d) "fiduciary of the licensee" means a person that:
             433          (i) is required to collect, truthfully account for, and pay over a tax under this part for a
             434      licensee; and
             435          [(ii) is not an agent of the licensee described in Subsection (1)(e)(i); and]
             436          [(iii)] (ii) (A) is a corporate officer of the licensee described in Subsection
             437      (1)[(e)](d)(i);
             438          (B) is a director of the licensee described in Subsection (1)[(e)](d)(i);
             439          (C) is an employee of the licensee described in Subsection (1)[(e)](d)(i);
             440          (D) is a partner of the licensee described in Subsection (1)[(e)](d)(i);
             441          (E) is a trustee of the licensee described in Subsection (1)[(e)](d)(i); or
             442          (F) has a relationship to the licensee described in Subsection (1)[(e)](d)(i) that is
             443      similar to a relationship described in Subsections (1)[(e)(iii)](d)(ii)(A) through (E) as
             444      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             445      Administrative Rulemaking Act;
             446          [(f)] (e) "license" means a license under this section; and
             447          [(g)] (f) "licensee" means a person that is licensed under this section by the
             448      commission.
             449          (2) A person that is required to collect a tax under this part is guilty of a criminal


             450      violation as provided in Section 59-1-401 if before obtaining a license under this section that
             451      person engages in business within the state.
             452          (3) The license described in Subsection (2):
             453          (a) shall be granted and issued:
             454          (i) by the commission in accordance with this section;
             455          (ii) without a license fee; and
             456          (iii) if:
             457          (A) an applicant:
             458          (I) states the applicant's name and address in the application; and
             459          (II) provides other information in the application that the commission may require; and
             460          (B) the person meets the requirements of this section to be granted a license as
             461      determined by the commission;
             462          (b) may not be assigned to another person; and
             463          (c) is valid:
             464          (i) only for the person named on the license; and
             465          (ii) until:
             466          (A) the person described in Subsection (3)(c)(i):
             467          (I) ceases to do business; or
             468          (II) changes that person's business address; or
             469          (B) the commission revokes the license.
             470          (4) The commission shall review an application and determine whether the applicant
             471      meets the requirements of this section to be issued a license.
             472          (5) (a) An applicant shall post a bond with the commission before the commission may
             473      issue the applicant a license.
             474          (b) If the commission determines it is necessary to ensure compliance with this part,
             475      the commission may require a licensee to increase the amount of a bond posted with the
             476      commission.
             477          (c) A bond under this Subsection (5) shall be:


             478          (i) executed by:
             479          (A) for an applicant, the applicant as principal, with a corporate surety; or
             480          (B) for a licensee, the licensee as principal, with a corporate surety; and
             481          (ii) payable to the commission conditioned upon the faithful performance of all of the
             482      requirements of this part including:
             483          (A) the payment of all taxes under this part;
             484          (B) the payment of any:
             485          (I) penalty as provided in Section 59-1-401 ; or
             486          (II) interest as provided in Section 59-1-402 ; or
             487          (C) any other obligation of the:
             488          (I) applicant under this part; or
             489          (II) licensee under this part.
             490          (d) Except as provided in Subsection (5)(f), the commission shall calculate the amount
             491      of a bond under this Subsection (5) on the basis of:
             492          (i) commission estimates of:
             493          (A) an applicant's tax liability under this part; or
             494          (B) a licensee's tax liability under this part; and
             495          (ii) the amount of a delinquency described in Subsection (5)(e) if:
             496          (A) a license under this section was revoked for a delinquency under this part for:
             497          (I) (Aa) an applicant; or
             498          (Bb) a licensee;
             499          (II) a fiduciary of the:
             500          (Aa) applicant; or
             501          (Bb) licensee; or
             502          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary
             503      of the licensee is required to collect, truthfully account for, and pay over a tax under this part;
             504      or
             505          (B) there is a delinquency in paying a tax under this part for:


             506          (I) (Aa) an applicant; or
             507          (Bb) a licensee;
             508          (II) a fiduciary of the:
             509          (Aa) applicant; or
             510          (Bb) licensee; or
             511          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary
             512      of the licensee is required to collect, truthfully account for, and pay over a tax under this part.
             513          (e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
             514          (i) for an applicant, the amount of the delinquency is the sum of:
             515          (A) the amount of any delinquency that served as a basis for revoking the license under
             516      this section of:
             517          (I) the applicant;
             518          (II) a fiduciary of the applicant; or
             519          (III) a person for which the applicant or the fiduciary of the applicant is required to
             520      collect, truthfully account for, and pay over a tax under this part; or
             521          (B) the amount of tax that any of the following owe under this part:
             522          (I) the applicant;
             523          (II) a fiduciary of the applicant; and
             524          (III) a person for which the applicant or the fiduciary of the applicant is required to
             525      collect, truthfully account for, and pay over a tax under this part; or
             526          (ii) for a licensee, the amount of the delinquency is the sum of:
             527          (A) the amount of any delinquency that served as a basis for revoking the license under
             528      this section of:
             529          (I) the licensee;
             530          (II) a fiduciary of the licensee; or
             531          (III) a person for which the licensee or the fiduciary of the licensee is required to
             532      collect, truthfully account for, and pay over a tax under this part; or
             533          (B) the amount of tax that any of the following owe under this part:


             534          (I) the licensee;
             535          (II) a fiduciary of the licensee; and
             536          (III) a person for which the licensee or the fiduciary of the licensee is required to
             537      collect, truthfully account for, and pay over a tax under this part.
             538          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             539      may not:
             540          (i) be less than [$50,000] $10,000; or
             541          (ii) exceed $500,000.
             542          (g) A bond required by this section may be combined into one bond with any other
             543      bond required by this chapter.
             544          (6) (a) The commission shall revoke a license under this section if:
             545          (i) a licensee violates any provision of this part; and
             546          (ii) before the commission revokes the license the commission provides the licensee:
             547          (A) reasonable notice; and
             548          (B) a hearing.
             549          (b) If the commission revokes a licensee's license in accordance with Subsection (6)(a),
             550      the commission may not issue another license to that licensee until that licensee complies with
             551      the requirements of this part, including:
             552          (i) paying any:
             553          (A) tax due under this part;
             554          (B) penalty as provided in Section 59-1-401 ; or
             555          (C) interest as provided in Section 59-1-402 ; and
             556          (ii) posting a bond in accordance with Subsection (5).
             557          Section 4. Section 59-13-302 is amended to read:
             558           59-13-302. Definitions -- License requirements -- Penalty -- Application process
             559      and requirements -- Fee not required -- Bonds -- Discontinuance of business -- Liens upon
             560      property.
             561          (1) As used in this section:


             562          [(a) "agent" means a person that:]
             563          [(i) remits any amounts under this part for:]
             564          [(A) an applicant; or]
             565          [(B) a licensee; and]
             566          [(ii) in accordance with an agreement between the person and the applicant or licensee
             567      described in Subsection (1)(a)(i), is required to collect, truthfully account for, and pay over an
             568      amount under this part for the:]
             569          [(A) applicant; or]
             570          [(B) licensee;]
             571          [(b)] (a) "applicant" means a person that:
             572          (i) is required by this section to obtain a license; and
             573          (ii) submits an application:
             574          (A) to the commission; and
             575          (B) for a license under this section;
             576          [(c)] (b) "application" means an application for a license under this section;
             577          [(d)] (c) "fiduciary of the applicant" means a person that:
             578          (i) is required to collect, truthfully account for, and pay over an amount under this part
             579      for an applicant; and
             580          [(ii) is not an agent of the applicant described in Subsection (1)(d)(i); and]
             581          [(iii)] (ii) (A) is a corporate officer of the applicant described in Subsection
             582      (1)[(d)](c)(i);
             583          (B) is a director of the applicant described in Subsection (1)[(d)](c)(i);
             584          (C) is an employee of the applicant described in Subsection (1)[(d)](c)(i);
             585          (D) is a partner of the applicant described in Subsection (1)[(d)](c)(i);
             586          (E) is a trustee of the applicant described in Subsection (1)[(d)](c)(i); or
             587          (F) has a relationship to the applicant described in Subsection (1)[(d)](c)(i) that is
             588      similar to a relationship described in Subsections (1)[(d)(iii)](c)(ii)(A) through (E) as
             589      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah


             590      Administrative Rulemaking Act;
             591          [(e)] (d) "fiduciary of the licensee" means a person that:
             592          (i) is required to collect, truthfully account for, and pay over an amount under this part
             593      for a licensee; and
             594          [(ii) is not an agent of the licensee described in Subsection (1)(e)(i); and]
             595          [(iii)] (ii) (A) is a corporate officer of the licensee described in Subsection
             596      (1)[(e)](d)(i);
             597          (B) is a director of the licensee described in Subsection (1)[(e)](d)(i);
             598          (C) is an employee of the licensee described in Subsection (1)[(e)](d)(i);
             599          (D) is a partner of the licensee described in Subsection (1)[(e)](d)(i);
             600          (E) is a trustee of the licensee described in Subsection (1)[(e)](d)(i); or
             601          (F) has a relationship to the licensee described in Subsection (1)[(e)](d)(i) that is
             602      similar to a relationship described in Subsections (1)[(e)(iii)](d)(ii)(A) through (E) as
             603      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             604      Administrative Rulemaking Act;
             605          [(f)] (e) "license" means a license under this section; and
             606          [(g)] (f) "licensee" means a person that is licensed under this section by the
             607      commission.
             608          (2) A person that is required to collect an amount under this part is guilty of a criminal
             609      violation as provided in Section 59-1-401 if before obtaining a license under this section that
             610      person engages in business within the state.
             611          (3) The license described in Subsection (2):
             612          (a) shall be granted and issued:
             613          (i) by the commission in accordance with this section;
             614          (ii) without a license fee; and
             615          (iii) if:
             616          (A) an applicant:
             617          (I) states the applicant's name and address in the application; and


             618          (II) provides other information in the application that the commission may require; and
             619          (B) the person meets the requirements of this section to be granted a license as
             620      determined by the commission;
             621          (b) may not be assigned to another person; and
             622          (c) is valid:
             623          (i) only for the person named on the license; and
             624          (ii) until:
             625          (A) the person described in Subsection (3)(c)(i):
             626          (I) ceases to do business; or
             627          (II) changes that person's business address; or
             628          (B) the commission revokes the license.
             629          (4) The commission shall review an application and determine whether the applicant
             630      meets the requirements of this section to be issued a license.
             631          (5) (a) An applicant shall post a bond with the commission before the commission may
             632      issue the applicant a license.
             633          (b) If the commission determines it is necessary to ensure compliance with this part,
             634      the commission may require a licensee to increase the amount of a bond posted with the
             635      commission.
             636          (c) A bond under this Subsection (5) shall be:
             637          (i) executed by:
             638          (A) for an applicant, the applicant as principal, with a corporate surety; or
             639          (B) for a licensee, the licensee as principal, with a corporate surety; and
             640          (ii) payable to the commission conditioned upon the faithful performance of all of the
             641      requirements of this part including:
             642          (A) the payment of all amounts under this part;
             643          (B) the payment of any:
             644          (I) penalty as provided in Section 59-1-401 ; or
             645          (II) interest as provided in Section 59-1-402 ; or


             646          (C) any other obligation of the:
             647          (I) applicant under this part; or
             648          (II) licensee under this part.
             649          (d) Except as provided in Subsection (5)(f), the commission shall calculate the amount
             650      of a bond under this Subsection (5) on the basis of:
             651          (i) commission estimates of:
             652          (A) an applicant's liability for any amount under this part; or
             653          (B) a licensee's liability for any amount under this part; and
             654          (ii) the amount of a delinquency described in Subsection (5)(e) if:
             655          (A) a license under this section was revoked for a delinquency under this part for:
             656          (I) (Aa) an applicant; or
             657          (Bb) a licensee;
             658          (II) a fiduciary of the:
             659          (Aa) applicant; or
             660          (Bb) licensee; or
             661          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary
             662      of the licensee is required to collect, truthfully account for, and pay over an amount under this
             663      part; or
             664          (B) there is a delinquency in paying an amount under this part for:
             665          (I) (Aa) an applicant; or
             666          (Bb) a licensee;
             667          (II) a fiduciary of the:
             668          (Aa) applicant; or
             669          (Bb) licensee; or
             670          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary
             671      of the licensee is required to collect, truthfully account for, and pay over an amount under this
             672      part.
             673          (e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):


             674          (i) for an applicant, the amount of the delinquency is the sum of:
             675          (A) the amount of any delinquency that served as a basis for revoking the license under
             676      this section of:
             677          (I) the applicant;
             678          (II) a fiduciary of the applicant; or
             679          (III) a person for which the applicant or the fiduciary of the applicant is required to
             680      collect, truthfully account for, and pay over an amount under this part; or
             681          (B) the amount that any of the following owe under this part:
             682          (I) the applicant;
             683          (II) a fiduciary of the applicant; and
             684          (III) a person for which the applicant or the fiduciary of the applicant is required to
             685      collect, truthfully account for, and pay over an amount under this part; or
             686          (ii) for a licensee, the amount of the delinquency is the sum of:
             687          (A) the amount of any delinquency that served as a basis for revoking the license under
             688      this section of:
             689          (I) the licensee;
             690          (II) a fiduciary of the licensee; or
             691          (III) a person for which the licensee or the fiduciary of the licensee is required to
             692      collect, truthfully account for, and pay over an amount under this part; or
             693          (B) the amount that any of the following owe under this part:
             694          (I) the licensee;
             695          (II) a fiduciary of the licensee; and
             696          (III) a person for which the licensee or the fiduciary of the licensee is required to
             697      collect, truthfully account for, and pay over an amount under this part.
             698          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             699      may not:
             700          (i) be less than [$50,000] $10,000; or
             701          (ii) exceed $500,000.


             702          (g) A bond required by this section may be combined into one bond with any other
             703      bond required by this chapter.
             704          (6) (a) The commission shall revoke a license under this section if:
             705          (i) a licensee violates any provision of this part; and
             706          (ii) before the commission revokes the license the commission provides the licensee:
             707          (A) reasonable notice; and
             708          (B) a hearing.
             709          (b) If the commission revokes a licensee's license in accordance with Subsection (6)(a),
             710      the commission may not issue another license to that licensee until that licensee complies with
             711      the requirements of this part, including:
             712          (i) paying any:
             713          (A) amounts due under this part;
             714          (B) penalty as provided in Section 59-1-401 ; or
             715          (C) interest as provided in Section 59-1-402 ; and
             716          (ii) posting a bond in accordance with Subsection (5).
             717          (7) (a) If any person ceases to be a supplier within the state by reason of the
             718      discontinuance, sale, or transfer of the person's business, the supplier shall notify the
             719      commission in writing at the time the discontinuance, sale, or transfer takes effect.
             720          (b) The notice shall give the date of discontinuance and, in the event of a sale, the date
             721      of the sale and the name and address of the purchaser or transferee.
             722          (c) Taxes on all special fuel delivery or removal made prior to the discontinuance, sale,
             723      or transfer, shall become due and payable on the date of discontinuance, sale, or transfer.
             724          (d) The supplier shall make a report and pay all taxes, interest, and penalties and
             725      surrender to the commission the license certificate that was issued to the supplier by the
             726      commission.
             727          (8) (a) The tax imposed by this part shall be a lien upon the property of any supplier
             728      liable for an amount of tax that is required to be collected, if the supplier sells the business,
             729      stock of goods, or quits business, and if the supplier fails to make a final return and payment


             730      within 15 days after the date of selling or quitting business.
             731          (b) The successor or assigns, if any, shall be required to withhold a sufficient amount
             732      of the purchase money to cover the amount of the taxes that are required to be collected and
             733      interest or penalties due and paid under Sections 59-1-401 and 59-1-402 until the former owner
             734      produces a receipt from the commission showing that the taxes have been paid or a certificate
             735      stating that no amount of tax is due. If the purchaser of a business or stock of goods fails to
             736      withhold sufficient purchase money, the purchaser shall be personally liable for the payment of
             737      the amount that is due.
             738          Section 5. Section 59-13-403 is amended to read:
             739           59-13-403. Administration and penalties -- Bond requirements.
             740          (1) All administrative and penalty provisions of Part 2, Motor Fuel, apply to the
             741      administration of Part 4, Aviation Fuel.
             742          (2) [(a)] Notwithstanding Subsection (1) [and Subsection 59-13-203 (3), and except as
             743      provided in Subsection (2)(b), the bond may not be less than $2,000. (b) A], a distributor is not
             744      required to furnish a bond if the distributor:
             745          [(i)] (a) meets the definition of distributor under Subsection 59-13-102 (5)(d); and
             746          [(ii)] (b) has an average tax liability of $500 or less per month.


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