2010 New York Code
TAX - Tax
Article 12-A - (282 - 289-F) TAX ON GASOLINE AND SIMILAR MOTOR FUEL
283 - Registration of distributors.

§ 283. Registration of distributors. 1. The department of taxation and
  finance, upon the application of a person, shall register such person as
  a  distributor under this article except as provided in subdivisions two
  and five of this section. The application shall be in a form and contain
  such data as the department of taxation and finance shall prescribe.  No
  person, unless so registered, shall import or cause any motor fuel to be
  imported  into  the state, for use, distribution, storage or sale within
  the state or shall produce, refine, manufacture or compound  motor  fuel
  within  the  state. No distributor, unless so registered, shall make any
  sale, transfer, use or other disposition of motor fuel within the state,
  except a sale, transfer, use or other disposition, if any, as  to  which
  the  state  cannot  impose such condition by reason of the United States
  constitution and of laws of the United States enacted pursuant thereto.
    2. Where a person files an application  for  registration  under  this
  section  and in considering such application the commissioner ascertains
  that (a) any tax imposed under this chapter or any  related  statute  as
  defined  in  section  eighteen  hundred of this chapter has been finally
  determined to be due from such applicant or from any  officer,  director
  or  partner of such applicant, shareholder directly or indirectly owning
  more than ten percent of the number of shares of stock of such applicant
  (where such applicant is a corporation) entitling the holder thereof  to
  vote  for  the  election of directors or trustees, or any shareholder or
  employee of such applicant under a  duty  to  file  a  return  under  or
  pursuant to the authority of this article or pay the taxes imposed by or
  pursuant  to  the authority of this article on behalf of such applicant,
  and has not been paid in full, (b) a liability for the penalty  provided
  for  under  subdivision two of section two hundred eighty-nine-b of this
  chapter has been finally determined to be due from an officer, director,
  shareholder directly or indirectly owning more than ten percent  of  the
  number  of  shares of stock of such applicant (where such applicant is a
  corporation) entitling the holder thereof to vote for  the  election  of
  directors  or  trustees,  employee  or  partner  of  such applicant or a
  shareholder of such applicant under a duty to file  a  return  under  or
  pursuant to the authority of this article or pay the taxes imposed by or
  pursuant  to  the authority of this article on behalf of such applicant,
  and has not been paid in full, (c) such applicant has been convicted  of
  a crime provided for in this chapter or has been convicted under the tax
  laws  or  penal  laws  of any other state, or a political subdivision of
  this state or such other state, or of the United States  of  a  criminal
  offense  which,  if  committed  and  prosecuted  in  this  state,  would
  constitute a similar crime under this chapter, within the preceding five
  years, (d)  an  officer,  director  or  partner  of  such  applicant,  a
  shareholder  directly  or indirectly owning more than ten percent of the
  number of shares of stock of such applicant (where such applicant  is  a
  corporation)  entitling  the  holder thereof to vote for the election of
  directors or trustees, or an employee or shareholder of  such  applicant
  who,  as  such employee or shareholder, is under a duty to file a return
  under or pursuant to the authority of this  article  or  pay  the  taxes
  imposed  by  or  pursuant  to the authority of this article on behalf of
  such applicant, has been convicted of  a  crime  provided  for  in  this
  chapter  or  has  been convicted under the tax laws or penal laws of any
  other state, or a political subdivision of  this  state  or  such  other
  state, or of the United States of a criminal offense which, if committed
  and  prosecuted  in  this  state, would constitute a similar crime under
  this chapter, within the preceding five years, or an  employee  of  such
  applicant was, in his capacity as a person under a duty to file a return
  under  or  pursuant  to  the  authority of this article or pay the taxes
  imposed by or pursuant to the authority of this article on behalf of any

person, convicted of a crime provided for in this chapter  or  has  been
  convicted  under  the  tax  laws  or penal laws of any other state, or a
  political subdivision of this state or  such  other  state,  or  of  the
  United  States  of a criminal offense which, if committed and prosecuted
  in this state, would constitute a  similar  crime  under  this  chapter,
  within  the  preceding  five  years,  (e) such applicant, or an officer,
  director  or  partner  of  such  applicant,  shareholder   directly   or
  indirectly owning more than ten percent of the number of shares of stock
  of  such applicant (where such applicant is a corporation) entitling the
  holder thereof to vote for the election of  directors  or  trustees,  or
  employee  or shareholder of such applicant under a duty to file a return
  under or pursuant to the authority of this article or to pay  the  taxes
  imposed  by  or  pursuant  to the authority of this article on behalf of
  such applicant, who was an  officer,  director  or  partner  of  another
  person, or who directly or indirectly owned more than ten percent of the
  number  of shares of stock of another person (where such other person is
  a corporation) entitling the holder thereof to vote for the election  of
  directors  or trustees, or who was an employee or shareholder of another
  person under a duty to file a return under or pursuant to the  authority
  of this article or pay the taxes imposed by or pursuant to the authority
  of  this  article  on  behalf  of  such other person at the time any tax
  imposed under this chapter or any related statute as defined in  section
  eighteen  hundred of this chapter was finally determined to be due, from
  such other person and where such tax has not been paid in  full,  or  at
  the time such other person was convicted of a crime provided for in this
  chapter  or  has  been convicted under the tax laws or penal laws of any
  other state, or a political subdivision of  this  state  or  such  other
  state, or of the United States of a criminal offense which, if committed
  and  prosecuted  in  this  state, would constitute a similar crime under
  this chapter, within the preceding  five  years,  or  at  the  time  the
  registration of such other person was cancelled or suspended pursuant to
  subdivision  four of this section within the preceding five years, or at
  the time such other person committed any of the acts or omissions  which
  are,  or was convicted as, specified in subdivision four of this section
  within the preceding five years, provided, however, where  an  applicant
  or  such  officer,  director,  partner,  shareholder or employee of such
  applicant was  only  an  employee  of  another  person,  the  applicable
  examination of tax payment history of such other person shall be limited
  to  the  taxes  imposed  by  this  article  or by or pursuant to article
  twenty-eight or twenty-nine of this chapter with respect to  motor  fuel
  and  the  applicable  examination of prior criminal convictions shall be
  limited to those which relate to motor fuel,  (f)  the  registration  of
  such  applicant or of an officer, director or partner of such applicant,
  shareholder directly or indirectly owning more than ten percent  of  the
  number  of  shares of stock of such applicant (where such applicant is a
  corporation) entitling the holder thereof to vote for  the  election  of
  directors  or  trustees,  or  employee  or shareholder of such applicant
  under a duty to file a return under or pursuant to the authority of this
  article or to pay the taxes imposed by or pursuant to the  authority  of
  this article on behalf of such applicant has been cancelled or suspended
  pursuant  to  subdivision four of this section within the preceding five
  years, or (g) the applicant, an officer,  director  or  partner  of  the
  applicant,  a  shareholder  directly  or indirectly owning more than ten
  percent of the number of shares of stock of such applicant  (where  such
  applicant is a corporation) entitling the holder thereof to vote for the
  election of directors or trustees, or an employee or shareholder of such
  applicant  under  a  duty  to  file  a  return  under or pursuant to the
  authority of this article or to pay the taxes imposed by or pursuant  to

the  authority of this article on behalf of the applicant, has committed
  any of the acts or omissions which are, or was convicted  as,  specified
  in subdivision four of this section within the preceding five years, the
  commissioner may refuse to register such applicant.
    3.  The  tax  commission  shall require a distributor to file with the
  department of taxation and finance a bond issued  by  a  surety  company
  approved   by  the  superintendent  of  insurance  as  to  solvency  and
  responsibility and authorized to transact  business  in  this  state  or
  other  security  acceptable to the tax commission, in such amount as the
  tax commission 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 (i) pursuant to this article and (ii) pursuant to
  articles twenty-eight and twenty-nine of this chapter  with  respect  to
  sales and uses of motor fuel. The tax commission 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 as a protection to the revenues under this article
  and articles twenty-eight and twenty-nine of this chapter. If securities
  are deposited as security under this subdivision, such securities  shall
  be  kept in the joint custody of the comptroller and the commissioner of
  taxation and finance and may be sold by the tax commission if it becomes
  necessary so  to  do  in  order  to  recover  any  sums  due  from  such
  distributor  (i)  pursuant to this article and (ii) pursuant to articles
  twenty-eight and twenty-nine of this chapter with respect to  sales  and
  uses  of  motor  fuel,  but  no  such sale shall be had until after such
  distributor shall have had opportunity to litigate the validity  of  any
  tax if it elects so to do. Upon any such sale the surplus, if any, above
  the  sums  due  (i)  under  this  article  and (ii) pursuant to articles
  twenty-eight and twenty-nine of this chapter with respect to  sales  and
  uses   of  motor  fuel  shall  be  returned  to  such  distributor.  The
  department,  when  authorized  by   the   distributor,   shall   furnish
  information  regarding  the  distributor's  registration  and  any other
  information which the distributor authorizes it to disclose.
    4. The registration of any distributor may be cancelled  or  suspended
  by  the  commissioner  where  a  registrant,  or  an  officer, director,
  shareholder, employee or partner of the registrant who as such  officer,
  director,  shareholder,  employee  or partner is under a duty to act for
  such registrant or any shareholder directly or  indirectly  owning  more
  than  ten  percent  of  the  number of shares of stock of the registrant
  (where such registrant is a corporation) entitling the holder thereof to
  vote for the election of directors or trustees of such registrant, fails
  to file a bond or other  security  when  required  or  when  the  amount
  thereof is increased, or fails to continue to maintain in full force and
  effect  at  all times the required bond or other security filed with the
  commissioner, or fails to comply with any  of  the  provisions  of  this
  article  or  article  twenty-eight of this chapter with respect to motor
  fuel or any rule or regulation  adopted  pursuant  to  this  article  or
  article  twenty-eight  of this chapter with respect to motor fuel by the
  department of taxation and finance or by the commissioner, or  knowingly
  aids and abets another person in violating any of the provisions of such
  articles  or  of any such rule or regulation with respect to motor fuel,
  or transfers its registration as a distributor without the prior written
  approval of the commissioner. A registration may also  be  cancelled  or
  suspended  if  the  commissioner  determines  that  a  registrant  or an
  officer, director, shareholder, employee or partner  of  the  registrant
  who as such officer, director, shareholder, employee or partner is under
  a  duty  to  act  for  such  registrant  or  any shareholder directly or
  indirectly owning more than ten percent of the number of shares of stock

of the registrant (where such registrant is a corporation) entitling the
  holder thereof to vote for the election of directors or trustees of such
  registrant:
    (i)  commits fraud or deceit in his operations as a distributor or has
  committed fraud or deceit in procuring his registration;
    (ii) has been convicted in a court of competent  jurisdiction,  either
  within  or  without  the  state,  of  a  felony,  within  the meaning of
  subdivision eight of this section, bearing on such distributor's  duties
  and obligations under this chapter;
    (iii)  has  knowingly aided and abetted a person who is not registered
  as a distributor in the importation, production,  refining,  manufacture
  or compounding of motor fuel;
    (iv) has impersonated any person represented to be a distributor under
  this article but not in fact registered under this section; or
    (v)  has  knowingly  aided  and abetted the distribution of motor fuel
  imported, caused to be  imported,  produced,  refined,  manufactured  or
  compounded  by  a distributor who is not registered by the department of
  taxation and finance.
    A registration may also be cancelled or suspended if the  commissioner
  determines  that  a  registrant  or  an  officer, director, shareholder,
  employee or partner of the registrant who  as  such  officer,  director,
  shareholder,  employee  or  partner  is  under  a  duty  to act for such
  registrant or any shareholder directly or indirectly  owning  more  than
  ten  percent  of  the number of shares of stock of the registrant (where
  such registrant is a corporation) entitling the holder thereof  to  vote
  for  the  election  of  directors or trustees of such registrant, was an
  officer, director, shareholder, employee or partner  of  another  person
  who  as  such  officer,  director,  shareholder, employee or partner was
  under a duty to act for such other person or was a shareholder  directly
  or  indirectly  owning  more than ten percent of the number of shares of
  stock of such other person (where such other person  is  a  corporation)
  entitling  the  holder  thereof to vote for the election of directors or
  trustees of such other person at the time such  other  person  committed
  any  of  the acts or omissions which are, or was convicted as, specified
  in this subdivision within the preceding five years.
    5. A registration shall not be cancelled or  suspended  nor  shall  an
  application  for  registration  be  refused  unless  the  registrant  or
  applicant has had an opportunity for a hearing, provided, however,  that
  an  application  for registration may be denied without a prior hearing.
  Provided, further, a registration may be cancelled or suspended  without
  a  prior  hearing,  for  failure to file a return within ten days of the
  date prescribed for filing  a  return  under  this  article  or  article
  twenty-eight  of  this  chapter  with respect to sales and uses of motor
  fuel, or for nonpayment of any taxes due pursuant  to  this  article  or
  article  twenty-eight  or  twenty-nine  of  this chapter with respect to
  sales and uses of motor fuel if the registrant shall have failed to file
  such return or pay such taxes within ten days after the date the  demand
  therefor  is  sent by registered or certified mail to the address of the
  distributor given in his application for  registration,  or  an  address
  substituted therefor as provided in this subdivision. A registration may
  be cancelled or suspended prior to a hearing for the failure to continue
  to  maintain  in full force and effect at all times the required bond or
  other security filed with the tax commission. Provided,  however,  if  a
  surety  bond is cancelled prior to expiration, the tax commission, after
  considering  all  the  relevant  circumstances,  may  make  such   other
  arrangements and require the filing of such other bond or other security
  as  it  deems  appropriate.  Provided,  further,  a  registration may be
  cancelled or suspended prior to a  hearing  for  the  transfer  of  such

registration  without  the  prior  written  approval  of  the  state tax
  commission. A distributor shall immediately inform  the  department,  in
  writing,  of  any  change  in  its  address and, if the distributor is a
  corporation or partnership, the distributor shall immediately inform the
  department,  in  writing,  of  any  change in its officers, directors or
  partners or their residence addresses as shown in  its  application  for
  registration.
    6. (a) A notice of proposed cancellation or suspension of registration
  or  refusal to register shall be given to the person registered pursuant
  to this article or to a person applying for  such  registration  in  the
  manner  prescribed  for  a  notice  of  determination of tax and all the
  provisions of this article applicable to a notice of determination under
  section two hundred eighty-eight of this  chapter,  including,  but  not
  limited  to,  those  provisions  authorizing  the commissioner to make a
  redetermination on the commissioner's  own  motion,  shall  apply  to  a
  notice  issued  pursuant to this subdivision, insofar as such provisions
  can be made applicable to the notice  authorized  by  this  subdivision,
  with  such  modifications  as  may  be  necessary  in order to adapt the
  language  of  such  provisions  to  the  notice   authorized   by   this
  subdivision.  In  the case of a person applying to register, a notice of
  proposed refusal to register shall be issued promptly after  application
  for   registration   is   received  by  the  commissioner.  Upon  timely
  application therefor, a hearing shall be scheduled in  the  division  of
  tax  appeals,  and within three months from such application for hearing
  (determined with regard to any postponements of any scheduled hearing or
  conference or other delay made at the  request  of  the  applicant)  the
  administrative  law  judge shall render a determination either upholding
  the commissioner's refusal to register or ordering the  commissioner  to
  register  the  applicant. Within fifteen days after the giving of notice
  of the administrative law judge's determination, the  applicant  or  the
  commissioner may take exception to the determination. If an exception is
  taken,  the tax appeals tribunal, within seventy-five days from the date
  of  notice  to  the  tribunal  that  exception  is  being  taken  to  an
  administrative  law judge's determination, shall issue a decision either
  affirming or reversing such determination.  If  the  administrative  law
  judge  renders a determination ordering the commissioner to register the
  applicant and the commissioner takes exception  to  such  determination,
  the commissioner shall not be required to register such applicant unless
  and  until  the  tax  appeals  tribunal issues a decision affirming such
  determination. The applicant shall not be  registered  until  there  has
  been  filed a bond or other security in the required amount. Such notice
  of proposed  cancellation  or  suspension  or  of  proposed  refusal  to
  register must be given to such person within five years from the date of
  the  act  or  omission  referred  to  in subdivision two or four of this
  section, except that in the case of acts  involving  falsity  or  fraud,
  such  notice  may be issued at any time. All of such notices of proposed
  cancellation or suspension or of  proposed  refusal  to  register  shall
  contain  a  statement  advising the person to whom it is issued that the
  cancellation, suspension  or  refusal  to  register  may  be  challenged
  through  a hearing process and that the petition for such challenge must
  be filed with the division of tax appeals within ninety days  after  the
  giving  of  such  notice. Where a registration is cancelled or suspended
  prior to a hearing, the cancellation or  suspension  may  be  challenged
  through  the hearing process provided the petition for such challenge is
  filed within ninety days after the giving of notice of such cancellation
  or suspension.
    (b) Notwithstanding any other provision to the contrary:

(i) In the event that the commissioner determines that an increase  in
  the  amount  of  the  bond  or  other  security filed by a registrant is
  required to secure the liability of such registrant, such bond  increase
  or  other  security  increase  must  be  filed by such registrant within
  thirty  days  from the day the notice and demand therefor has been given
  by the commissioner. If the registrant fails to (A) file  such  increase
  in  the  amount of bond or other security within such period or (B) make
  timely application for a hearing with particular respect to  the  amount
  of  the  increase of such bond or other security, the commissioner shall
  cancel or suspend the registration of such registrant.
    (ii) The registrant may apply to the division of  tax  appeals  for  a
  hearing  to  review  an  increase  in  the  amount  of the bond or other
  security required to be filed  by  making  application  therefor  within
  seven  days  of  the  day  that the notice and demand for an increase is
  given by the commissioner, provided, the division of tax appeals may, by
  regulation, for the causes stated  therein,  extend  such  period  to  a
  period not exceeding fifteen days from the day such notice and demand is
  given.  If  the  registrant  timely  applies for a hearing to review the
  increase, such hearing shall be held, unless extended by the division of
  tax appeals for good cause, no less than seven days and no more than ten
  days after the application for a hearing is received by the division  of
  tax appeals. Within fifteen days of the receipt of the application for a
  hearing,   unless   extended   by  the  division  of  tax  appeals,  the
  administrative law judge shall render a determination  with  respect  to
  the  increase  in  the  amount of the bond or other security and, if the
  amount of such bond or other security is  determined  to  be  due,  such
  increase   shall   be   filed   within  seven  days  from  the  day  the
  administrative law judge gives  notice  of  the  determination,  or,  if
  later,  thirty  days from the day the notice and demand for the increase
  had been given by the commissioner. Notwithstanding that the  registrant
  takes  exception to the administrative law judge's determination that an
  increased bond or other security is due, if the increased bond or  other
  security is not filed within such time, the commissioner shall cancel or
  suspend the registration of the registrant. Where the administrative law
  judge determines that an increased bond or other security is not due but
  such  determination  is  reversed  by  the  tax appeals tribunal, if the
  increased bond or other security is not filed within seven days from the
  day  the  tax  appeals   tribunal   gives   notice   of   its   decision
  notwithstanding  any judicial review of such decision of the tax appeals
  tribunal, the commissioner shall cancel or suspend the  registration  of
  the registrant.
    7.   Temporary  restraining  order  and  permanent  injuction  against
  unlawful importation and forfeiture of unlawfully imported  or  produced
  automotive  fuel. (a) Whenever evidence is furnished by the commissioner
  of taxation and finance to any justice of the supreme court, in court or
  at chambers, showing that any person not registered as a distributor  as
  required by this article has imported automotive fuel into this state or
  caused  automotive  fuel to be imported into this state or has produced,
  refined, manufactured or compounded automotive  fuel  or  has  subjected
  diesel  motor fuel to the process of enhancement within this state, such
  justice may make a  temporary  order  without  notice  prohibiting  such
  person  and his agents from selling, transferring or otherwise disposing
  of any such fuel or any fuel and also prohibiting all other  persons  in
  possession  of  or having control over the same from selling, releasing,
  transferring or otherwise disposing of  any  automotive  fuel  imported,
  produced,   refined,   manufactured,   compounded,   enhanced,  sold  or
  transferred by such person not so registered pending  a  hearing  for  a
  preliminary injunction.

(b)  Upon  granting  a  temporary order, the court shall direct that a
  hearing be held at the earliest  possible  time  upon  such  notice  and
  service  as  the court shall direct and at the same time, if such action
  has not yet been commenced, the commissioner  of  taxation  and  finance
  shall commence an action in supreme court for a permanent injunction and
  forfeiture  of  automotive  fuel  pursuant  to  paragraph  (c)  of  this
  subdivision. Where, after such opportunity  for  a  hearing,  the  court
  determines that there is a substantial probability that the commissioner
  will  prevail  in  such  action,  the  court  shall  grant a preliminary
  injunction restraining the sale, release, transfer or other  disposition
  of fuel subject to the temporary order.
    (c)  (1)  If  it  is established by clear and convincing evidence that
  automotive fuel was imported, caused to be imported, produced,  refined,
  manufactured  or  compounded  or  diesel motor fuel was subjected to the
  process of enhancement by any person not registered as a distributor  as
  required  by  this  article,  the  court  shall  grant  a  judgment  (i)
  permanently  enjoining  such  person  and  his  agents   from   selling,
  transferring  or otherwise disposing of any such fuel or any fuel within
  this state and (ii) declaring the forfeiture of any  fuel  that  was  so
  imported,  caused  to  be  imported,  produced,  refined,  manufactured,
  compounded or enhanced by such person.
    (2) With respect to automotive fuel that was imported,  caused  to  be
  imported, produced, refined, manufactured or compounded, or diesel motor
  fuel  that  was  subjected to the process of enhancement by a person not
  registered as a distributor as required by  this  article  or  that  was
  unlawfully  sold  or transferred by such person, if it is established by
  clear and convincing evidence that any other person in possession of  or
  having  control over such fuel was not a purchaser or transferee in good
  faith of such fuel with respect to  the  fact  that  such  fuel  was  so
  imported,  caused  to  be  imported,  produced,  refined,  manufactured,
  compounded or enhanced by a person not registered as  a  distributor  as
  required  by  this  article  or that such fuel was so unlawfully sold or
  transferred by such  person,  the  court  shall  grant  a  judgment  (i)
  permanently  enjoining  such  other  person and his agents from selling,
  releasing, transferring or otherwise disposing of any such fuel and (ii)
  declaring the forfeiture of such fuel in the  possession  or  under  the
  control of such other person.
    (d)  The  commissioner  may, at any time subsequent to the granting of
  the temporary order pursuant to paragraph (a) of  this  subdivision,  in
  his sole discretion consent to a sale of automotive fuel subject to such
  temporary  order  which  is  in the possession or under the control of a
  person other than the person or the agent of the  person  who  imported,
  caused  to  be  imported, produced, refined, manufactured, compounded or
  enhanced or unlawfully sold or transferred such fuel. As a condition  of
  granting  permission  to  a  sale  of  automotive  fuel pursuant to this
  subdivision, the commissioner shall require the payment  of  all  taxes,
  penalties  and interest imposed by and pursuant to the authority of this
  chapter with respect to such fuel.
    (e) (1) At any time during  the  pendency  of  an  action  under  this
  section,  the  automotive  fuel  subject  to a temporary, preliminary or
  permanent order hereunder may be released from the scope of  such  order
  if there is given an undertaking, in an amount equal to the market value
  of such fuel plus state excise and sales taxes and federal excise taxes,
  to  the effect that there will be paid to the commissioner the amount of
  the market value of such fuel and such taxes in the event that such fuel
  is adjudged forfeited.

(2) Any  person  enjoined  by  a  temporary  order  or  a  preliminary
  injunction  issued pursuant to this subdivision may move at any time, on
  notice, to vacate or modify it.
    (f)  The  procedures of the civil practice law and rules applicable to
  temporary restraining  orders,  preliminary  injunctions  and  permanent
  injunctions  not  inconsistent  with  this  subdivision  shall  apply to
  temporary orders,  preliminary  injunctions  and  permanent  injunctions
  issued  under  this  subdivision  and  any provision of this subdivision
  which  is  not  in  accord  with  the  constitutional  mandate  of  such
  procedures  of  the  civil  practice law and rules shall be deemed to be
  modified as necessary to accord with  such  a  mandate.  The  procedural
  provisions  set  forth  in  paragraph  three  of  subdivision (d) and in
  subdivision (j) of section eighteen hundred forty-eight of this  chapter
  shall apply to the forfeiture proceedings under this subdivision and, in
  respect to a declaration of forfeiture under this subdivision, the court
  shall  direct  the  commissioner  to  sell  or otherwise dispose of such
  forfeited automotive fuel on such conditions the commissioner deems most
  advantageous and just under the circumstances.  The  commissioner  shall
  not  be  required  to  file any undertaking in connection with an action
  pursuant to this subdivision.
    8. (a) For the purposes of this section, in  determining  whether  any
  person   has  been  convicted  of  a  felony,  the  provisions  of  this
  subdivision shall apply; provided, however if  any  such  conviction  be
  subsequently set aside or reversed upon appeal and the accused acquitted
  or discharged, the registration which has been cancelled or suspended as
  a result of such conviction shall be restored.
    (b)  A conviction of a felony shall include the conviction of a felony
  by any court in this state or by any court of the United  States  or  by
  any  court  of  any other state of the United States; provided, however,
  that if a crime of which a person is  convicted  by  any  court  of  the
  United  States  or  any  other  state is a felony in the jurisdiction in
  which the conviction is had but is not a felony  in  the  state  of  New
  York,  then  the conviction shall not be deemed a conviction of a felony
  for the purpose of this article. In the event that a crime  of  which  a
  person is convicted by any court of the United States or by any court of
  any  other  state  is  not  a  felony  in  the jurisdiction in which the
  conviction is had but is a felony in the state of  New  York,  then  the
  conviction  shall be deemed a conviction of a felony for the purposes of
  this article.
    (c) If a person convicted of a felony or crime deemed hereby to  be  a
  felony  is subsequently pardoned by the governor of the state where such
  conviction was had, or by the president of the United States,  or  shall
  receive  a  certificate  of relief from disabilities or a certificate of
  good conduct pursuant to article twenty-three of the correction law  for
  the  purpose  of  removing  the disability under this section because of
  such  conviction,  the  tax  commission  may,  in  its  discretion,   on
  application  of  such person and compliance with subdivision two of this
  section, and on the submission to it of satisfactory  evidence  of  good
  moral  character  and  suitability,  again  register  such  person  as a
  distributor under this article.
    9. (a) The registration granted to a  distributor  by  the  state  tax
  commission  shall  be  personal to the person to whom it is granted. The
  transfer of such registration without the prior written approval of  the
  state tax commission is invalid and such transfer without approval shall
  be   grounds  for  the  immediate  cancellation  or  suspension  of  the
  registration of the registrant. The tax commission  shall  establish  by
  rule or regulation a specific procedure for the review of an application
  for  registration  in  these  instances  where there has been a proposed

transfer  of  registration,  and  the  tax  commission  in  making   its
  determination   with   respect   to  such  approval  shall  review  such
  application in such instance as any other application  for  registration
  under  this  section and shall make its determination in accordance with
  the criteria set forth in this section. Provided further, the state  tax
  commission  shall issue a determination with respect to such application
  where  there  has  been  a  proposed  transfer  of  registration  within
  seventy-five  days  after the day of the receipt of a properly completed
  application containing such information as the said tax  commission  may
  require.  If  the  tax  commission fails to issue a determination within
  such time, the  tax  commission  shall  be  required  to  register  such
  proposed transferee.
    (b)  For  the  purposes  of  this subdivision, a registration shall be
  considered to be transferred where, among other  things,  there  is  any
  addition  or  substitution  of  a  partner  of  the  registrant  or  the
  acquisition by any person of such shares  of  stock  of  the  registrant
  (where such registrant is a corporation) so that such person becomes the
  owner  of more than ten percent of the number of shares of stock of such
  registrant entitling the holder thereof to  vote  for  the  election  of
  directors  or trustees. Provided, however, where stock of the registrant
  or a partnership interest in the registrant or, where the registrant  is
  a  sole  proprietorship, the interest of the decedent therein along with
  the registration, is transferred pursuant to bequest or  inheritance  to
  (A)  an  ancestor of the decedent, (B) the spouse of the decedent, (C) a
  lineal descendent of the decedent, of the descendent's spouse, or  of  a
  parent  of  the  decedent,  or  (D)  the spouse of any lineal descendent
  described in (C) hereof, such transfer shall not, in and of  itself,  be
  grounds for cancellation or suspension. Provided, however, within ninety
  days  of the death of the decedent in such instance, the registrant, the
  personal  representative  of  the  decedent's  estate  or  such   person
  described  in  subparagraphs (A), (B), (C) or (D) of this paragraph must
  submit a revised application for  registration  as  a  distributor.  The
  state tax commission may then cancel or suspend the registration because
  of  the  existence  of  grounds  to  do so specified in this section for
  refusal or denial of an application for registration or for cancellation
  or suspension of  a  registration.  The  failure  to  submit  a  revised
  application  for  registration  within  such  ninety day period shall be
  grounds for immediate cancellation or suspension of the registration.
    10.  For  purposes  of  this  section,  where  reference  is  made  to
  ownership,  directly  or  indirectly,  of  more  than ten percent of the
  shares of stock of the applicant or another person entitling the  holder
  thereof  to  vote for the election of directors or trustees, in the case
  of an applicant or another person which at the relevant time has four or
  fewer shareholders holding shares entitling the holders thereof to  vote
  for  the  election of directors or trustees, twenty-five percent or more
  shall be substituted as the applicable percentage in such references  to
  ownership, directly or indirectly, of voting stock.