Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 90 - Liquid Fuels and Fuels Tax
Section 9003 - Liquid fuels and fuels permits; bond or deposit of securities

(a) Permit required; violation.--A distributor may not engage in the use or sale and delivery of liquid fuels within this Commonwealth without a liquid fuels permit or engage in the use or sale and delivery of fuels within this Commonwealth without a fuels permit. Each day in which a distributor engages in the use or sale and delivery of liquid fuels within this Commonwealth without a liquid fuels permit or fuels without a fuels permit shall constitute a separate offense. For each such offense, the distributor commits a misdemeanor of the third degree.
(b) Application.--A person desiring to operate as a distributor shall file an application for a liquid fuels permit or a fuels permit, or both, with the department. The application for a permit must be made upon a form prescribed by the department and must set forth the name under which the applicant transacts or intends to transact business, the location of the place of business within this Commonwealth and such other information as the department may require. If the applicant has or intends to have more than one place of business within this Commonwealth, the application shall state the location of each place of business. If the applicant is an association, the application shall set forth the names and addresses of the persons constituting the association. If the applicant is a corporation, the application shall set forth the names and addresses of the principal officers of the corporation and any other information prescribed by the department for purposes of identification. The application shall be signed and verified by oath or affirmation by:
(1) the owner, if the applicant is an individual;
(2) a member or partner, if the applicant is an association; or
(3) an officer or an individual authorized in a writing attached to the application, if the applicant is a corporation.
(c) Permit issuance.--Upon approval of the application and the bond required in subsection (d), the department shall grant and issue to each distributor a permit for each place of business within this Commonwealth set forth in the application. Permits shall not be assignable and shall be valid only for the distributors in whose names they are issued. Permits shall be valid only for the transaction of business at the places designated. Permits shall be conspicuously displayed at the places for which they are issued. A permit shall expire on the May 31 next succeeding the date upon which it was issued.
(d) Surety bond.--A permit shall not be granted until the applicant has filed with the department a surety bond payable to the Commonwealth in an amount fixed by the department of at least $2,500. Every bond must have as surety an authorized surety company approved by the department. The bond must state that the distributor will faithfully comply with the provisions of this chapter during the effective period of his permit. The department may require any distributor to furnish such additional, acceptable corporate surety bond as necessary to secure at all times the payment to the Commonwealth of all taxes, penalties and interest due under the provisions of this chapter and section 9502 (relating to imposition of tax). If a distributor fails to file the additional bond within ten days after written notice from the department, the department may suspend or revoke the permit and collect all taxes, penalties and interest due. For the purpose of determining whether an existing bond is sufficient, the department may by written notice require a distributor to furnish a financial statement in such form as it may prescribe. Upon failure of any distributor to furnish a financial statement within 30 days of written notice, the department may suspend or revoke the permit and shall collect all taxes, penalties and interest due by him.
(d.1) Waiver of surety bond.--
(1) The department shall waive the bond required by subsection (d) with respect to retail sales of kerosene sold for private household use.
(2) The department may waive the bond required by subsection (d) with respect to a class of distributors if the department finds that the cost of bonding to that class is excessive when compared to the risk of loss to the Commonwealth.
(e) Surety discharge.--A surety on a bond furnished by a distributor as provided in this section shall be released and discharged from liability to the Commonwealth accruing on the bond after the expiration of 60 days from the date upon which such surety shall have lodged with the department a written request to be released and discharged. This provision shall not operate to relieve, release or discharge the surety from liability already accrued or which shall accrue before the expiration of the 60-day period. The department shall, upon receiving any such request, notify the distributor who furnished the bond. Unless the distributor, on or before the expiration of the 60-day period, files with the department a new bond, with corporate surety approved by and acceptable to the department, the department shall cancel the distributor's permit or permits. If a new bond is furnished by a distributor, the department shall cancel and surrender the old bond of the distributor as soon as it and the Office of Attorney General are satisfied that all liability under the old bond has been fully discharged.
(f) Renewal.--Permits issued under the provisions of this chapter may be renewed annually, before June 1, upon an application being made to the department. No permit shall be renewed until the applicant files with the department a new surety bond in an amount fixed by the department and conditioned that the distributor will faithfully comply with the provisions of this chapter and section 9502.
(g) Interstate or foreign commerce.--Nothing contained in this chapter shall require the filing of any application or bond or the possession and display of a liquid fuels permit for the use or sale and delivery of liquid fuels in interstate or foreign commerce not within the taxing power of the Commonwealth or for the use of liquid fuels by the Federal Government.
(h) Financial guarantees.--Any person required by the provisions of this section to file a surety bond may, in lieu of the bond, deposit with the State Treasurer bonds of the United States or of the Commonwealth, the par value of which is the amount of the surety bond required of such person, or present to the State Treasurer satisfactory evidence of financial guarantees in the form of an irrevocable letter of credit from a financial institution authorized to do business in this Commonwealth. The treasurer shall issue to the person a certificate of such deposit or financial guarantee. The person shall file the certificate with the department. Its securities or letter of credit deposited with the State Treasurer shall be held as a guarantee that the holder of the permit shall faithfully comply with the provisions of this chapter and section 9502 during the effective period of the permit. The securities or letter of credit shall be retained by the State Treasurer for a period of 60 days after the termination of the permit, and such securities or letter of credit shall not be released from any liability to the Commonwealth already accrued or which shall accrue before the expiration of the 60-day period. At the end of the 60-day period, the securities or letter of credit shall be returned to their owner only if all claims of the Commonwealth guaranteed by the deposit have been fully satisfied.
(i) Penalties.--Any person that assigns a permit or fails to display conspicuously a permit at the place for which it is issued commits a summary offense.
(Dec. 21, 1998, P.L.1126, No.151, eff. 60 days)

1998 Amendment. Act 151 added subsec. (d.1).
Cross References. Section 9003 is referred to in section 9405 of this title.