GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION
CHAPTER 908
AN ACT TO INCREASE THE MAXIMUM BOND THAT MAY BE REQUIRED OF FUEL DISTRIBUTORS AND SUPPLIERS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-433 reads as rewritten:
"§ 105-433. Application for license as distributor.
Any distributor engaged in business on April 1, 1931, shall,
within 30 days thereafter, and any other distributor shall, prior to the commencement
of doing business, file a duly acknowledged application for a license with the
Secretary of Revenue on a form prescribed and furnished by him setting forth
the name under which such distributor transacts or intends to transact business
within this State, the address of each place of business and a designation of
the principal place of business. If such distributor is a firm or
association, the application shall set forth the name and address of each
person constituting the firm or association, and if a corporation, the names
and addresses of the principal officers and such other information as the
Secretary of Revenue may require. Each distributor shall at the same time
file a bond in such amount, not exceeding forty thousand dollars ($40,000) in
such form form, and with such surety or sureties as may be
required by the Secretary of Revenue, conditioned upon the rendition of the
reports and the payment of the tax hereinafter provided for. The
amount of the bond required by the Secretary may not exceed the greater of (i)
two thousand dollars ($2,000) or (ii) two times the distributor's average
monthly tax liability under this Article or, in the case of an initial bond,
two times the distributor's estimated average monthly tax liability under this
Article, as determined by the Secretary. A distributor who is also
required to be bonded under G.S. 105-449.5 as a supplier of special fuels may
file a single bond, under either this section or under G.S. 105-449.5, for the
combined amount required under these sections but not exceeding eighty
thousand dollars ($80,000) and conditioned upon compliance with the
requirements of Article 36 and Article 36A of this Subchapter. A
distributor required to file a bond under this section shall, within 30 days
after receiving a notice from the Secretary of Revenue, file an additional bond
in the amount requested by the Secretary. The amount of the initial bond
and any additional bonds filed by the distributor, however, may not exceed the
limits set in this section. Upon approval of the application and bond,
the Secretary of Revenue shall issue to the distributor a nonassignable license
with a duplicate copy for each place of business of said distributor in this
State, which shall be displayed in a conspicuous place at each such place of
business and shall continue in force until surrendered or canceled. No
distributor shall sell, offer for sale, or use any motor fuels within this
State until such license has been issued. Any distributor failing to comply
with or violating any of the provisions of this section shall be guilty of a
misdemeanor and upon conviction thereof shall be fined not less than one
hundred dollars ($100.00), nor more than five thousand dollars ($5,000), or
imprisonment for not more than 24 months, or both."
Sec. 2. G.S. 105-449.5 reads as rewritten:
"§ 105-449.5. Supplier to file bond.
A supplier's license shall not be issued until the applicant
has filed with the Secretary a bond in the approximate sum of three two
times the average monthly tax due to be paid by such supplier, the
supplier, as determined by the Secretary, but the amount of the bond shall
in no case be less than five hundred dollars ($500.00). ($500.00) nor
more than forty thousand dollars ($40,000). Such bond shall be in such
form and with such surety or sureties as may be required by the Secretary,
conditioned upon making proper reports and paying the tax provided for in this
Article, and otherwise complying with the provisions of this Article. A
supplier who is also required to be bonded under G.S. 105-433 as a distributor
of motor fuels may file a single bond, under either this section or under G.S.
105-433 for the combined amount required under these sections, sections
but not exceeding eighty thousand dollars ($80,000), and conditioned upon
compliance with the requirements of Article 36 and Article 36A of this
Subchapter. A supplier required to file a bond under this section shall,
within 30 days after receiving a notice from the Secretary, file an additional
bond in the amount requested by the Secretary. The amount of the initial
bond and any additional bonds filed by the supplier, however, may not exceed
the limits set in this section."
Sec. 3. This act shall become effective January 1, 1991.
In the General Assembly read three times and ratified this the 13th day of July, 1990.