MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Ways and Means
By: Representative Smith
AN ACT TO AMEND SECTIONS 27-55-7 AND 27-55-507, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM AMOUNT OF BOND THAT IS REQUIRED TO BE POSTED BY DISTRIBUTORS OF GASOLINE AND SPECIAL FUEL; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-55-7, Mississippi Code of 1972, is amended as follows:
27-55-7. Before any person
shall engage in business as a distributor of gasoline in this state, he shall
first make application to the * * * department, upon forms
prescribed by the * * *
department, for a permit to engage in said business.
If said application is
approved by the * * *
department, the applicant shall enter into a good and sufficient surety
bond, written by a company qualified to write such bonds in this state. The
bond shall be made payable to the State of Mississippi in a sum of not less
than One Thousand Dollars ($1,000.00) nor more than * * *
One Million Dollars ($1,000,000.00), the amount to be determined by the * * * department; or, in lieu
thereof, the applicant may deposit with the * * * department a cash bond in the
amount so determined. A personal bond in the amount so determined shall also
be acceptable in lieu of a surety bond if the same is adequately secured by the
pledge or assignment of a pledgeable or assignable bond or bonds of the State
of Mississippi or the United States government. Such bond or bonds shall be in
an amount not to exceed * * *Two Hundred Fifty Thousand Dollars ($250,000.00) One
Million Dollars ($1,000,000.00), and not to exceed the gasoline tax
estimated to become due by the said distributor of gasoline for any ninety-day
period. The bond herein required shall be increased within the limits
hereinabove set forth from time to time if deemed insufficient by the * * * department, giving to the
distributor of gasoline fifteen (15) days' notice, in writing, to increase said
bond, said notice to state the amount of increase demanded.
The condition of said bond
shall be that the distributor of gasoline shall fully comply with all laws
pertaining to distributors of gasoline and pertaining to the transportation of
gasoline as regulated by this article, and that he shall pay the gasoline tax
and the penalties provided. Provided, however, any person who, prior to
January 1, 1970, has furnished bond to meet the requirements of any petroleum
tax law administered by the * * * department, shall not be required
to furnish an additional bond provided his existing bond is adequate, but such
person shall be subject to all the other provisions of this article regulating
and governing distributors of gasoline.
Provided further, that any person who purchases all of his gasoline on a tax-paid basis and from a qualified bonded distributor of gasoline for sale or distribution to retailers for resale to consumers shall not be required to make bond for said gasoline purchased, but shall be subject to all the other provisions of this article regulating and governing distributors of gasoline.
SECTION 2. Section 27-55-507, Mississippi Code of 1972, is amended as follows:
27-55-507. Before any
person shall engage in business as a distributor of special fuel in this state,
he shall first make application to the * * * department, upon forms
prescribed by the * * *
department, for a permit to engage in said business.
If the application is
approved by the * * *
department, the applicant shall enter into a good and sufficient surety
bond, written by a company qualified to write such bonds in this state. The
bond shall be made payable to the State of Mississippi in a sum not less than
One Thousand Dollars ($1,000.00) nor more than * * *
One Million Dollars ($1,000,000.00), the amount to be determined by the * * * department; or, in lieu
thereof, the applicant may deposit with the * * * department a cash bond in the
amount so determined. A personal bond in the amount so determined shall also
be acceptable in lieu of a surety bond if the same is adequately secured by the
pledge or assignment of a pledgeable or assignable bond, or bonds, of the State
of Mississippi or the United States government. Such bond or bonds shall be in
an amount not to exceed * * *Two Hundred Fifty Thousand Dollars ($250,000.00) One
Million Dollars ($1,000,000.00), and not to exceed the special fuel taxes
estimated to become due by the distributor of special fuel for any ninety-day
period. The bond required by this section shall be increased within the limits
hereinabove set forth from time to time if deemed insufficient by the * * * department, giving to the
distributor of special fuel fifteen (15) days' notice, in writing, to increase
such bond, such notice to state the amount of increase demanded.
The condition of such bond shall be that the distributor of special fuel shall fully comply with all laws pertaining to distributors of special fuel and pertaining to the transportation of special fuel as regulated by this article, and that he shall pay the special fuel taxes, and the penalties provided.
SECTION 3. This act shall take effect and be in force from and after July 1, 2017.