Montana Code 15-70-402. License and security of distributors — denial or disciplinary action
15-70-402. License and security of distributors — denial or disciplinary action. (1) (a) Prior to doing business, each gasoline or special fuel distributor, including an exporter and importer, as those terms are defined in 15-70-401, shall file:
Terms Used In Montana Code 15-70-402
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Biodiesel: means a fuel produced from monoalkyl esters of long-chain fatty acids derived from vegetable oils, renewable lipids, animal fats, or any combination of those ingredients. See Montana Code 15-70-401
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of transportation. See Montana Code 15-70-401
- Distributor: means :
(i)a person who engages in the business in this state of producing, refining, manufacturing, or compounding gasoline or special fuel for sale, use, or distribution;
(ii)an importer who imports gasoline or special fuel for sale, use, or distribution;
(iii)a person who engages in the wholesale distribution of gasoline or special fuel in this state and chooses to become licensed to assume the Montana state gasoline tax or special fuel tax liability;
(iv)an exporter;
(v)a dealer licensed as of January 1, 1969, except a dealer at an established airport; or
(vi)a person in Montana who blends ethanol with gasoline. See Montana Code 15-70-401
- Ethanol: means nominally anhydrous ethyl alcohol that has been denatured as specified in 27 CFR, parts 20 and 21, and that meets the standards for ethanol adopted pursuant to 82-15-103. See Montana Code 15-70-401
- Ethanol-blended gasoline: means gasoline blended with ethanol. See Montana Code 15-70-401
- Exporter: means a person who transports, other than in the fuel supply tank of a motor vehicle, gasoline or special fuel received from a refinery or pipeline terminal in Montana to a destination outside Montana for sale, use, or consumption outside Montana. See Montana Code 15-70-401
- Gasoline: includes :
(i)all petroleum products commonly or commercially known or sold as gasolines, including casinghead gasoline, natural gasoline, aviation fuel, and all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating internal combustion engines; and
(ii)any other type of additive when the additive is mixed or blended into gasoline, regardless of the additive's classifications or uses. See Montana Code 15-70-401
- Importer: means a person who transports or arranges for the transportation of gasoline or special fuel into Montana for sale, use, or distribution. See Montana Code 15-70-401
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Motor vehicle: means all vehicles that are operated on the public roads and highways of this state and that are operated in whole or in part by the combustion of gasoline or special fuel. See Montana Code 15-70-401
- special fuel: includes biodiesel and additives of all types when the additive is mixed or blended into special fuel, regardless of the additive's classifications or uses. See Montana Code 15-70-401
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Taxes: means the taxes provided for in this chapter. See Montana Code 15-70-112
(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 or special fuel taxes the distributor will pay to this state each month.
(ii)The minimum required security for a distributor who imports or exports fuel 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 distributor license or take disciplinary action against the distributor 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 or special fuel tax.
(3)Disciplinary action against a distributor may result in revocation of the license or issuance of a probationary license. At its discretion, the department may issue a probationary license to a distributor who repeatedly fails to report in the manner prescribed. The probationary license must be issued for a specified time period and may require the distributor to attend motor fuel tax training conducted by the department. If a distributor issued a probationary license fails to provide accurate reports by the end of the time period specified by the probationary license, the department may revoke the distributor license.
(4)If an application for a distributor license is denied or revoked or if the distributor is under disciplinary action, the applicant or distributor has the right to appeal the department’s decision pursuant to Title 2, chapter 4, part 6.
(5)Only a licensed distributor may withdraw gasoline or special fuel from a refinery or terminal.
(6)Failure to obtain a distributor license as required in this section subjects the distributor to the provisions of 15-70-419 allowing for the seizure, confiscation, and possible forfeiture of the fuel.
(7)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;
(b)a deposit made by the distributor with the department, under the conditions that the department may prescribe; or
(c)certificates of deposit or irrevocable letters of credit issued by a bank and insured by the federal deposit insurance corporation.
(8)The owner of a commercial motor vehicle that is engaged in transporting gasoline or special fuel for a distributor is not subject to the provisions of this section.
(9)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 special fuel tax has been paid.
(10)A distributor who blends ethanol with gasoline must be licensed by the department. If the distributor cannot be licensed, the distributor is required to buy ethanol-blended gasoline on which the gasoline tax has been paid.