Okla. Stat. tit. 68, § 68-500.35

Qualifications of bond - Financial statements and inquiry - New bond

required - Release of existing bond.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 293

A. 1. Terminal operators shall be required to post a bond of

not less than three (3) months potential tax liability based on the

number of gallons handled as estimated by the Commission, but in no

event shall the bond be more than Five Hundred Thousand Dollars

($500,000.00).

2. Exporters shall be required to post a bond of not less than

three (3) months potential tax liability based on the number of

gallons handled as estimated by the Commission, but in no event

shall the bond be more than One Million Dollars ($1,000,000.00).

3. Transporters shall be required to post a bond of not less

than three (3) months potential tax liability based on the number of

gallons handled as estimated by the Commission, but in no event

shall the bond be more than One Hundred Thousand Dollars

($100,000.00).

4. Tank wagon importers shall be required to post a bond of not

less than three (3) months potential tax liability based on the

number of gallons handled as estimated by the Commission, but in no

event shall the bond be more than Fifty Thousand Dollars

($50,000.00).

B. Suppliers and bonded importers shall be required to post a

bond of not less than three (3) months potential tax liability based

on the number of gallons handled as estimated by the Commission, but

in no event shall the bond be less than One Hundred Thousand Dollars

($100,000.00) nor more than Two Million Dollars ($2,000,000.00). An

applicant may alternatively show proof of financial responsibility

in the following amounts in lieu of posting of bond or in lieu of

posting of the full amount of bond, which shall constitute evidence

of financial responsibility in the absence of circumstances

indicating the Commission is otherwise at risk with respect to

collection of taxes from the applicant:

1. Proof of Five Million Dollars ($5,000,000.00) net worth

shall constitute evidence of financial responsibility in lieu of

posting of bond;

2. Proof of Two Million Five Hundred Thousand Dollars

($2,500,000.00) net worth shall constitute financial responsibility

in lieu of posting one-half (1/2) of the bond; and

3. Proof of One Million Two Hundred Fifty Thousand Dollars

($1,250,000.00) net worth shall constitute financial responsibility

in lieu of posting one-fourth (1/4) of the bond.

C. If the applicant files a bond, the bond shall:

1. Be with a surety company approved by the Commission which

may be an affiliate in the business of assuring such obligations;

2. Name the applicant as the principal and the state as the

obliged; and

3. Be on forms prescribed by the Commission.

D. The Commission may, at the reasonable discretion of the

Commission, require a licensee, or an applicant, to furnish current

Oklahoma Statutes - Title 68. Revenue and Taxation Page 294

verified, financial statements. The Commission may make independent

inquiry into the financial condition of the applicant and, in any

case, is not required to accept as accurate financial statements

which have not been certified or independently audited. If the

Commission determines that a financial condition of a licensee

warrants an increase in the bond or cash deposit, the Commission may

require the licensee to furnish an increased bond or cash deposit.

E. 1. The Commission may require a licensee to file a new bond

with a satisfactory surety in the same form and amount if:

a. liability upon the previous bond is discharged or

reduced by a judgment rendered, payment made, or

otherwise disposed of, or

b. in the opinion of the Commission, any surety on the

previous bond becomes unsatisfactory.

If the new bond is unsatisfactory, the Commission shall cancel the

license. If the new bond is satisfactorily furnished, the

Commission shall release in writing the surety on the previous bond
e previous bond is discharged or

reduced by a judgment rendered, payment made, or

otherwise disposed of, or

b. in the opinion of the Commission, any surety on the

previous bond becomes unsatisfactory.

If the new bond is unsatisfactory, the Commission shall cancel the

license. If the new bond is satisfactorily furnished, the

Commission shall release in writing the surety on the previous bond

from any liability accruing after the effective date of the new

bond.

2. If a licensee has a cash deposit with the Commission and the

deposit is reduced by a judgment rendered, payment made, or

otherwise disposed of, the Commission may require the licensee to

make a new deposit equal to the amount of the reduction.

F. 1. If the Commission reasonably determines that the amount

of the existing bond or cash deposit is insufficient to ensure

payment to the state of the tax and any penalty and interest for

which the licensee is or may become liable, the licensee shall, upon

written demand of the Commission, file a new bond or increase the

cash deposit. The Commission shall allow the licensee at least

fifteen (15) days to secure the increased bond or cash deposit.

2. The new bond or cash deposit shall meet the requirements set

forth in this act.

3. If the new bond or cash deposit required under this section

is unsatisfactory, the Commission shall cancel the license.

G. 1. Sixty (60) days after making a written request for

release to the Commission, the surety of a bond furnished by a

licensee shall be released from any liability to the state accruing

on the bond after the sixty-day period. The release does not affect

any liability accruing before the expiration of the sixty-day

period.

2. The Commission shall promptly notify the licensee furnishing

the bond that a release has been requested. Unless the licensee

obtains a new bond that meets the requirements of this act and files

with the Commission the new bond within the sixty-day period, the

Commission shall cancel the license.

3. Sixty (60) days after making a written request for release

to the Commission, the cash deposit provided by a licensee shall be

Oklahoma Statutes - Title 68. Revenue and Taxation Page 295

canceled as security for any obligation accruing after the

expiration of the sixty-day period. However, the Commission may

retain all or part of the cash deposit for up to three (3) years and

one (1) day as security for any obligations accruing before the

effective date of the cancellation. Any part of the deposit not

retained by the Commission shall be released to the licensee.

Before the expiration of the sixty-day period, the licensee shall

provide the Commission with a bond that satisfies the requirements

of this act or the Commission shall cancel the license.

4. Any licensee who has filed a bond or other security under

this act is entitled, on request, to have the Commission return,

refund, or release the bond or security if, in the judgment of the

Commission, the licensee has continuously complied with the

provisions of this act for the previous three (3) consecutive years.

However, if the Commission determines that the revenues of the state

would be jeopardized by the return, refund or release of bond or

security, the Commission may elect to retain the bond or security,

or having released such, may reimpose a requirement for bond or

security to protect the revenues of this state. The decision of the

Commission to not release a bond or security may be reviewed, after

application by the licensee, pursuant to the Administrative

Procedures Act.

H. In the event any applicant for a license applies for more

than one license pursuant to this act, the applicant shall not be

required to post a bond for each license, but shall be required to

post the bond for the license which requires the greatest amount of

bond.