§ 302. Registration of petroleum businesses. (a) Registration
required. Each petroleum business with respect to motor fuel must be
registered with the department of taxation and finance as a distributor
of motor fuel under article twelve-A of this chapter. Each petroleum
business with respect to diesel motor fuel must be registered with the
department of taxation and finance as a distributor of diesel motor fuel
under article twelve-A of this chapter or, where applicable, as a
"distributor of kero-jet fuel only" under such article. Each petroleum
business with respect to residual petroleum product must be registered
as a residual petroleum product business under subdivision (b) of this
section. No petroleum business unless so registered, shall make any
sale, transfer, use or other disposition of motor fuel, diesel motor
fuel or residual petroleum product within the state, except a sale,
transfer, use or other disposition, if any, as to which the state cannot
impose such condition by reason of the United States constitution and of
laws of the United States enacted pursuant thereto. No person, unless
registered as a residual petroleum product business under this section,
shall (i) import or cause residual petroleum product to be imported into
this state, (ii) produce, refine, manufacture or compound residual
petroleum product within the state, or (iii) make a sale or use of
residual petroleum product in the state other than a self-use of
residual petroleum product which has been the subject of a retail sale
to such person.

(b) Residual petroleum product business. The department, upon the
application of a corporation or unincorporated business, shall register
such corporation or unincorporated business as a residual petroleum
product business except that the commissioner may refuse to register an
applicant for any of the grounds specified in subdivision two or five of
section two hundred eighty-three of this chapter or in subdivision (d)
of this section. The application shall be in such form and contain such
information as the commissioner shall prescribe. All of the provisions
of subdivisions two, four, five, six, seven, eight, nine and ten of
section two hundred eighty-three of this chapter relating to
registration of distributors shall be applicable to the registration of
residual petroleum product businesses under this section with the same
force and effect as if the language of those subdivisions had been
incorporated in full in this section and had expressly referred to the
registration of residual petroleum product businesses and the tax
imposed by this article, with such modification as may be necessary in
order to adapt the language of such provisions to the provisions of this
article, provided, specifically, that the term "distributor" shall be
read as "residual petroleum product business" and the term "motor fuel"
shall be read as "residual petroleum product". Provided, however, that
if the commissioner is satisfied that the requirements of such
provisions for registration are not necessary in order to protect tax
revenues, the commissioner may limit or modify such requirements with
respect to corporations or unincorporated businesses not required to be
registered as distributors of motor fuel or diesel motor fuel.

(c) Bond or other security. The commissioner may require a petroleum
business to file with it a bond issued by a surety company approved by
the superintendent of financial services as to solvency and
responsibility and authorized to transact business in this state or
other security acceptable to the commissioner, in such amount as the
commissioner may fix in an amount determined in accordance with rules
and regulations prescribed by the commissioner, to secure the payment of
any sums due from such petroleum business pursuant to this article. The
commissioner may require that such a bond or other security be filed
before a petroleum business is registered, and the amount thereof may be
increased at any time when in the commissioner's judgment the same is
necessary as a protection to the revenues under this article. If
securities are deposited as security under this subdivision, such
securities shall be kept in the joint custody of the comptroller and the
commissioner of taxation and finance. Such securities may be sold by the
commissioner if it becomes necessary so to do in order to recover any
sums due from such petroleum business pursuant to this article, but no
such sale shall be had until after such petroleum business shall have
had opportunity to litigate the validity of any tax if it elects so to
do. Upon any such sale the surplus, if any, above the sums due under
this article shall be returned to such petroleum business. All of the
provisions of paragraph (b) of subdivision six of section two hundred
eighty-three of this chapter relating to increasing the amount of the
bond or other security required to be filed pursuant to article twelve-A
of this chapter shall be applicable to bonds or other security required
to be filed pursuant to this subdivision.

(d) Refusal to register. For the purposes of determining whether to
refuse an application for registration under article twelve-A of this
chapter as a distributor of motor fuel, diesel motor fuel or kero-jet
fuel only or under this section as a residual petroleum product
business, the references in subdivision two of section two hundred
eighty-three of this chapter to employees or shareholders under a duty
to file a return under or pursuant to the authority of article twelve-A
of this chapter or pay the taxes imposed by or pursuant to the authority
of such article on behalf of the applicant or another person shall be
deemed to also include an employee under a duty to file a return or pay
taxes under or pursuant to the authority of this article on behalf of
such applicant or other person. In addition to the grounds specified in
section two hundred eighty-three of this chapter, the commissioner may
refuse to register an applicant as a distributor of motor fuel, diesel
motor fuel or kero-jet fuel only or as a residual petroleum product
business where the commissioner ascertains that the applicant, an
officer, director or partner of the applicant, a shareholder directly or
indirectly owning more than ten percent of the number of shares of stock
of such applicant (where such applicant is a corporation) entitling the
holder thereof to vote for the election of directors or trustees, or an
employee or shareholder of such applicant under a duty to file a return
under or pursuant to the authority of this article or article twelve-A
of this chapter or to pay the taxes imposed by or pursuant to the
authority of this article or article twelve-A of this chapter on behalf
of the applicant, (1) has committed any of the acts or omissions which
are, or was convicted as, specified in subdivision (e) of this section
within the preceding five years, or (2) was an officer, director or
partner of another person, or who directly or indirectly owned more than
ten percent of the shares of stock of another person (where such other
person is a corporation) entitling the holder thereof to vote for the
election of directors or trustees, or who was an employee or shareholder
of another person under a duty to file a return under or pursuant to the
authority of this article or article twelve-A of this chapter or pay the
taxes imposed by or pursuant to the authority of this article or article
twelve-A of this chapter on behalf of such other person at the time such
other person committed any of the acts or omissions which are, or was
convicted as, specified in subdivision (e) of this section within the
preceding five years.

(e) Cancellation or suspension of registration. The grounds for a
cancellation or suspension of a registration under article twelve-A of
this chapter as a distributor of motor fuel, diesel motor fuel or
kero-jet fuel only or under this section as a residual petroleum product
business are those grounds specified in section two hundred eighty-three
of this chapter and, in addition to such grounds, the following grounds
relating to this article shall apply:

(1) A registration as a distributor of motor fuel, diesel motor fuel
or kero-jet fuel only or as a residual petroleum product business may be
cancelled or suspended if the commissioner determines that a registrant
or an officer, director or partner of the registrant, a shareholder
directly or indirectly owning more than ten percent of the number of
shares of stock of such registrant (where such registrant is a
corporation) entitling the holder thereof to vote for the election of
directors or trustees, or an employee or shareholder of such registrant
under a duty to file a return under or pursuant to the authority of this
article or article twelve-A of this chapter or to pay the taxes imposed
by or pursuant to the authority of this article or article twelve-A of
this chapter on behalf of the registrant (A) fails to file or maintain
in full force and effect a bond or other security when required pursuant
to subdivision (c) of this section or when the amount thereof is
increased,

(B) fails to comply with any of the provisions of this article or any
rule or regulation adopted pursuant to this article by the commissioner,

(C) knowingly aids and abets another person in violating any of the
provisions of this article or any rule or regulation adopted pursuant to
this article by the commissioner,

(D) transfers its registration as a petroleum business without the
prior written approval of the commissioner,

(E) with respect to a petroleum business which is a corporation, has
been dissolved pursuant to section two hundred three-a of this chapter
and subdivision (d) of section three hundred ten of this article,

(F) commits fraud or deceit in his or its operations as a petroleum
business or has committed fraud or deceit in procuring his or its
registration,

(G) has impersonated any person represented to be a petroleum business
under this article but not in fact registered as a distributor of motor
fuel, diesel motor fuel or kero-jet fuel only or a residual petroleum
product business, or

(H) has knowingly aided and abetted the distribution of motor fuel,
diesel motor fuel or residual petroleum product by corporation or
unincorporated business which such registrant or such other person knows
(i) has not been registered by the commissioner as a distributor of
motor fuel, diesel motor fuel or kero-jet fuel only or as a residual
petroleum product business and (ii) is a petroleum business pursuant to
the terms of subdivision (b) of section three hundred of this article.

(2) A registration as a distributor of motor fuel, diesel motor fuel
or kero-jet fuel only or as a residual petroleum product business may be
cancelled or suspended if the commissioner determines that a registrant
or an officer, director or partner of the registrant, a shareholder
directly or indirectly owning more than ten percent of the number of
shares of stock of such registrant (where such registrant is a
corporation) entitling the holder thereof to vote for the election of
directors or trustees, or an employee or shareholder of such registrant
under a duty to file a return under or pursuant to the authority of this
article or article twelve-A of this chapter on behalf of the registrant,
was an officer, director or partner of another person or was a
shareholder directly or indirectly owning more than ten percent of the
number of shares of stock of another person (where such other person is
a corporation) entitling the holder thereof to vote for the election of
directors or trustees, or was an employee or shareholder of another
person under a duty to file a return under or pursuant to the authority
of this article or article twelve-A of this chapter or to pay the taxes
imposed by or pursuant to the authority of this article or article
twelve-A of this chapter on behalf of such other person at the time such
other person committed any of the acts specified in paragraph one of
this subdivision within the preceding five years.

(f) Cancellation or suspension of registration prior to a hearing. The
grounds for cancelling or suspending a registration under article
twelve-A of this chapter as a distributor of motor fuel, diesel motor
fuel or kero-jet fuel only or under this section as a residual petroleum
product business prior to a hearing are those specified in subdivision
five of section two hundred eighty-three of this chapter and, in
addition to such grounds, the following grounds relating to this article
shall apply:

(1) the failure to file a return within ten days of the date
prescribed for filing a return under this article or nonpayment of any
tax due pursuant to this article if the registrant shall have failed to
file such return or pay such taxes within ten days after the date the
demand therefor is sent by registered or certified mail to the address
of the distributor or residual petroleum business given in its
application, or an address substituted therefor as provided in
subdivision five of section two hundred eighty-three of this chapter,

(2) the failure to continue to maintain in full force and effect at
all times the bond or other security required to be filed pursuant to
subdivision (c) of this section, provided, however, that if a surety
bond is cancelled prior to expiration, the commissioner may after
considering all the relevant circumstances make such other arrangements,
and may require the filing of such other bond or other security as it
deems appropriate,

(3) the transfer of a registration as a residual petroleum business
without the prior written approval of the commissioner, or

(4) with respect to a petroleum business which is a corporation, the
dissolution or annulment of such corporation pursuant to section three
hundred ten of this article.