15-70-341. License and security of special fuel distributors -- denial or revocation of license -- reissuance fee.
15-70-341. License and security of special fuel distributors -- denial or revocation of license -- reissuance fee. (1) (a) Each special fuel distributor, including an exporter and importer, as those terms are defined in 15-70-301, 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 special fuel taxes the distributor will pay to this state each month.
(ii) The minimum required security for a distributor who imports or exports special fuel, 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 revoked.
(2) The department may deny the issuance of a special fuel distributor license or revoke a special fuel 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 special fuel license tax.
(3) If an application for a special fuel 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) If the distributor's license is surrendered or revoked, the distributor shall pay a reissuance fee of $100.
(5) Failure to obtain a special fuel distributor license as required in this section subjects the distributor to the provisions of 15-70-357 allowing for the seizure, confiscation, and possible forfeiture of the fuel.
(6) 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) (i) a deposit made by the distributor with the department, under the conditions that the department may prescribe; or
(ii) certificates of deposit or irrevocable letters of credit issued by a bank and insured by the federal deposit insurance corporation.
(7) The owner of a commercial motor vehicle that is engaged in transporting special fuel for a distributor is not subject to the provisions of this section.
(8) A distributor who blends biodiesel must be licensed with the department. If the distributor cannot be licensed, the distributor is required to buy biodiesel fuel on which the tax has been paid.
History: En. Sec. 24, Ch. 525, L. 1993; amd. Sec. 12, Ch. 10, Sp. L. November 1993; amd. Sec. 5, Ch. 236, L. 1997; amd. Sec. 3, Ch. 37, L. 1999; amd. Sec. 2, Ch. 142, L. 2001; amd. Sec. 10, Ch. 568, L. 2001; amd. Sec. 5, Ch. 525, L. 2005.