2006 Utah Code - 59-13-203.1 — Definitions -- License requirements -- Penalty -- Application process and requirements -- Fee not required -- Bonds.

     59-13-203.1.   Definitions -- License requirements -- Penalty -- Application process and requirements -- Fee not required -- Bonds.
     (1) As used in this section:
     (a) "applicant" means a person that:
     (i) is required by this section to obtain a license; and
     (ii) submits an application:
     (A) to the commission; and
     (B) for a license under this section;
     (b) "application" means an application for a license under this section;
     (c) "fiduciary of the applicant" means a person that:
     (i) is required to collect, truthfully account for, and pay over a tax under this part for an applicant; and
     (ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
     (B) is a director of the applicant described in Subsection (1)(c)(i);
     (C) is an employee of the applicant described in Subsection (1)(c)(i);
     (D) is a partner of the applicant described in Subsection (1)(c)(i);
     (E) is a trustee of the applicant described in Subsection (1)(c)(i); or
     (F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
     (d) "fiduciary of the licensee" means a person that:
     (i) is required to collect, truthfully account for, and pay over a tax under this part for a licensee; and
     (ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
     (B) is a director of the licensee described in Subsection (1)(d)(i);
     (C) is an employee of the licensee described in Subsection (1)(d)(i);
     (D) is a partner of the licensee described in Subsection (1)(d)(i);
     (E) is a trustee of the licensee described in Subsection (1)(d)(i); or
     (F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
     (e) "license" means a license under this section; and
     (f) "licensee" means a person that is licensed under this section by the commission.
     (2) A person that is required to collect a tax under this part is guilty of a criminal violation as provided in Section 59-1-401 if before obtaining a license under this section that person engages in business within the state.
     (3) The license described in Subsection (2):
     (a) shall be granted and issued:
     (i) by the commission in accordance with this section;
     (ii) without a license fee; and
     (iii) if:
     (A) an applicant:
     (I) states the applicant's name and address in the application; and
     (II) provides other information in the application that the commission may require; and
     (B) the person meets the requirements of this section to be granted a license as

determined by the commission;
     (b) may not be assigned to another person; and
     (c) is valid:
     (i) only for the person named on the license; and
     (ii) until:
     (A) the person described in Subsection (3)(c)(i):
     (I) ceases to do business; or
     (II) changes that person's business address; or
     (B) the commission revokes the license.
     (4) The commission shall review an application and determine whether the applicant meets the requirements of this section to be issued a license.
     (5) (a) An applicant shall post a bond with the commission before the commission may issue the applicant a license.
     (b) If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to increase the amount of a bond posted with the commission.
     (c) A bond under this Subsection (5) shall be:
     (i) executed by:
     (A) for an applicant, the applicant as principal, with a corporate surety; or
     (B) for a licensee, the licensee as principal, with a corporate surety; and
     (ii) payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:
     (A) the payment of all taxes under this part;
     (B) the payment of any:
     (I) penalty as provided in Section 59-1-401; or
     (II) interest as provided in Section 59-1-402; or
     (C) any other obligation of the:
     (I) applicant under this part; or
     (II) licensee under this part.
     (d) Except as provided in Subsection (5)(f), the commission shall calculate the amount of a bond under this Subsection (5) on the basis of:
     (i) commission estimates of:
     (A) an applicant's tax liability under this part; or
     (B) a licensee's tax liability under this part; and
     (ii) the amount of a delinquency described in Subsection (5)(e) if:
     (A) a license under this section was revoked for a delinquency under this part for:
     (I) (Aa) an applicant; or
     (Bb) a licensee;
     (II) a fiduciary of the:
     (Aa) applicant; or
     (Bb) licensee; or
     (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or
     (B) there is a delinquency in paying a tax under this part for:
     (I) (Aa) an applicant; or
     (Bb) a licensee;

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     (II) a fiduciary of the:
     (Aa) applicant; or
     (Bb) licensee; or
     (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.
     (e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
     (i) for an applicant, the amount of the delinquency is the sum of:
     (A) the amount of any delinquency that served as a basis for revoking the license under this section of:
     (I) the applicant;
     (II) a fiduciary of the applicant; or
     (III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
     (B) the amount of tax that any of the following owe under this part:
     (I) the applicant;
     (II) a fiduciary of the applicant; and
     (III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
     (ii) for a licensee, the amount of the delinquency is the sum of:
     (A) the amount of any delinquency that served as a basis for revoking the license under this section of:
     (I) the licensee;
     (II) a fiduciary of the licensee; or
     (III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or
     (B) the amount of tax that any of the following owe under this part:
     (I) the licensee;
     (II) a fiduciary of the licensee; and
     (III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.
     (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5) may not:
     (i) be less than $10,000; or
     (ii) exceed $500,000.
     (g) A bond required by this section may be combined into one bond with any other bond required by this chapter.
     (6) (a) The commission shall revoke a license under this section if:
     (i) a licensee violates any provision of this part; and
     (ii) before the commission revokes the license the commission provides the licensee:
     (A) reasonable notice; and
     (B) a hearing.
     (b) If the commission revokes a licensee's license in accordance with Subsection (6)(a), the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:
     (i) paying any:

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     (A) tax due under this part;
     (B) penalty as provided in Section 59-1-401; or
     (C) interest as provided in Section 59-1-402; and
     (ii) posting a bond in accordance with Subsection (5).

Amended by Chapter 322, 2006 General Session