The bill would require a surety bond or another form of security insurance from New York fuel distributors and liquefied petroleum gas fuel businesses. The specific statute from the bill’s full text specifies the following:
“THE DEPARTMENT SHALL REQUIRE A DISTRIBUTOR TO FILE WITH THE DEPARTMENT 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 DEPARTMENT ON, IN SUCH AMOUNT AS THE DEPARTMENT MAY FIX, IN AN AMOUNT DETERMINED IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY IT, TO SECURE THE PAYMENT OF ANY SUMS DUE FROM SUCH DISTRIBUTOR PURSUANT TO THIS ARTICLE AND PURSUANT TO ANY OTHER SECTION OF LAW, RULE OR REGULATION WITH RESPECT TO MOTOR FUEL. THE DEPARTMENT SHALL REQUIRE THAT SUCH A BOND OR OTHER SECURITY BE FILED BEFORE A DISTRIBUTOR IS REGISTERED, AND THE AMOUNT THEREOF MAY BE INCREASED AT ANY TIME WHEN IN ITS JUDGMENT THE SAME IS NECESSARY.”
The above excerpt includes a clause dictating the bond will cost a varying amount as determined by the Department of State.
As it stands now, the proposed piece of legislation would repeal the gasoline and motor fuel taxes found in article 12-A of the New York Code. According to the official summary of the bill, its passing would accomplish two main goals:
- establish exemptions from state sales tax and the petroleum business tax for retail sales of motor fuel and diesel motor fuel
- provide for the regulation of motor fuel distributors, importing transporters and terminal operators by the department of state
Follow the links for more information on the definition of a surety bond and SB 1719’s progress through the legislation process. If you need a surety bond in New York or any other state, contact SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST. Our surety experts are on hand and ready to assist you with all of your bonding needs.