15-70-202. License and security of gasoline distributors -- denial or revocation of license.
15-70-202. License and security of gasoline distributors -- denial or revocation of license. (1) (a) Each gasoline distributor, including an exporter and importer, as those terms are defined in 15-70-201, prior to the commencement of doing business, shall file:
(i) an application for a license with the department on forms prescribed and furnished by the department setting forth the information that may be requested by the department; and
(ii) security with the department in an amount to be determined by the department.
(b) (i) Except as provided in subsection (1)(b)(ii), the required amount of security may not exceed twice the estimated amount of gasoline taxes that the distributor will pay to this state each month.
(ii) The minimum required security for a distributor who imports or exports gasoline, or both, is $25,000.
(c) Upon approval of the application, the department shall issue to the distributor a nonassignable license that is in force until surrendered or canceled.
(2) The department may deny the issuance of a gasoline distributor license or revoke a gasoline distributor license if it determines that the applicant or distributor:
(a) has violated any provision of this chapter or any rule of the department relating to gasoline or special fuel, or both;
(b) fails to provide the security required by the department;
(c) has had a distributor license revoked or denied by the department or another jurisdiction within a 3-year period;
(d) is not in compliance with motor fuels laws in other jurisdictions; or
(e) fails to pay the gasoline license tax.
(3) If an application for a gasoline distributor license is denied or revoked, the applicant or distributor has the right to appeal the department's decision pursuant to Title 2, chapter 4, part 6.
(4) As used in this section "security" means:
(a) a bond executed by a distributor as principal with a corporate surety qualified under the laws of Montana, payable to the state of Montana, and conditioned upon faithful performance of all requirements of this part, including the payment of all taxes and penalties; or
(b) a deposit made by the distributor with the department, under the conditions that the department may prescribe, of certificates of deposit or irrevocable letters of credit issued by a bank and insured by the federal deposit insurance corporation.
(5) Failure to obtain a gasoline distributor license as required in this section subjects the distributor to the provisions of 15-70-233 allowing for the seizure, confiscation, and possible forfeiture of the fuel.
(6) The owner of a commercial motor vehicle that is engaged in transporting fuel for a distributor is not subject to the provisions of this section.
(7) A distributor may not blend ethanol-blended gasoline unless licensed by the department. If a distributor cannot be licensed, the distributor is required to buy preblended ethanol-blended gasoline.
History: En. Sec. 13, Ch. 369, L. 1969; amd. Sec. 98, Ch. 516, L. 1973; R.C.M. 1947, 84-1857; amd. Sec. 1, Ch. 609, L. 1979; amd. Sec. 2, Ch. 514, L. 1983; amd. Sec. 2, Ch. 8, L. 1989; amd. Sec. 8, Ch. 512, L. 1991; amd. Sec. 2, Ch. 231, L. 1993; amd. Sec. 3, Ch. 236, L. 1997; amd. Sec. 1, Ch. 37, L. 1999; amd. Sec. 1, Ch. 142, L. 2001; amd. Sec. 2, Ch. 568, L. 2001; amd. Sec. 4, Ch. 100, L. 2007.