(1) (a) It is unlawful for any
person to act as a distributor, supplier, terminal operator, importer, exporter,
carrier, or blender of gasoline or special fuel in this state without being licensed as
such. Any person who acts as a distributor, supplier, terminal operator, importer,
exporter, carrier, or blender of gasoline or special fuel within this state without
being licensed as such is guilty of a misdemeanor. Each day of operation without a
license is considered a separate offense. Such person is also subject to the civil
penalties imposed pursuant to subsection (1)(g) of this section.
(b) Each applicant for a license required by this section must file with the
executive director of the department of revenue an application in such form and
manner as the executive director prescribes, stating the name and address of the
applicant and any other information as may be required by this section or by the
executive director. The application must include a statement that such application
is signed under oath and under the penalty of perjury in the second degree, as
defined in section 18-8-503. An applicant for a license to export gasoline or special
fuel from this state shall provide verification as required by the executive director
that the applicant has an appropriate license valid in any state into which the
gasoline will be exported. Each application must be accompanied by a ten-dollar
filing fee.
(c) The executive director of the department of revenue shall issue a license
to an applicant if the application is in proper form, has been accepted for filing, and
meets the other conditions and requirements of this section. The license is valid
until surrendered, suspended, or revoked.
(d) A person who engages in the business of blending or compounding any
products to make gasoline or special fuel thereof shall obtain a blender license and
set forth in his or her application the kind and general characteristics of the
products to be blended, the place where such blending is done, the purpose of such
blending, and the intended disposition of such blended products and any other
information as the executive director of the department of revenue deems
necessary or advisable for the enforcement of this part 1.
(d.5) No person shall blend exempt dyed diesel fuel with biodiesel fuel after
withdrawal at a terminal rack unless such person is a licensed blender in
accordance with subsection (1)(d) of this section who has a valid federal blending
permit. Any person who violates this subsection (1)(d.5) or the reporting or other
requirements of this section relating to such blending or who misrepresents the
amount of biodiesel fuel that is blended with dyed diesel fuel is subject to the
following civil penalties:
(I) A five-thousand-dollar fine for the first violation;
(II) A ten-thousand-dollar fine for the second or subsequent violation; and
(III) In accordance with rules promulgated pursuant to the State
Administrative Procedure Act, article 4 of title 24, C.R.S., revocation of any license
issued in accordance with the provisions of this section for the third violation.
(e) When any person ceases to be a distributor, supplier, terminal operator,
importer, exporter, carrier, or blender of gasoline or special fuel by reason of
discontinuance, sale, or transfer of such person's business at any location, such
person shall notify the executive director of the department of revenue in writing at
the time the discontinuance, sale, or transfer takes effect. The notice must state
the date of discontinuance and, in the event of sale or transfer, the name and
address of the purchaser or transferee. All taxes, penalties, and interest not yet due
and payable under this part 1, notwithstanding any other provisions of this part 1,
are due and payable concurrently with the discontinuance, sale, or transfer; and the
person shall make a report and pay all taxes, penalties, and interest and shall
surrender to the executive director of the department of revenue the license
together with all duplicates issued to him or her.
(f) The license issued under this section is required to be conspicuously
displayed in the established place of business of the licensee. A licensee shall
obtain a duplicate license for each established branch office or location, which shall
be displayed in a like manner as the original license. The executive director of the
department of revenue shall issue a duplicate license upon payment of a five-dollar
fee.
(g) (I) No person shall act as a distributor, supplier, terminal operator,
importer, exporter, or carrier without a valid license pursuant to this section. Any
person who violates the reporting requirements of this part 1, exports gasoline or
special fuel out of this state without a valid license, or imports gasoline or special
fuel into this state without a license or permit, or otherwise operates in this state
without the license required by this section is subject to the following civil
penalties:
(A) A five-thousand-dollar fine for the first violation;
(B) A ten-thousand-dollar fine for the second violation;
(C) A fifteen-thousand-dollar fine for a third or subsequent violation.
(II) The executive director of the department of revenue is authorized to
waive, for good cause shown, any civil penalty assessed pursuant to this paragraph
(g).
(III) All moneys collected pursuant to this paragraph (g) shall be credited to
the highway users tax fund, created in section 43-4-201, C.R.S., and allocated and
expended as specified in section 43-4-205 (5.5)(a), C.R.S.
(IV) Nothing in this paragraph (g) shall be construed to prohibit the criminal
prosecution of any person who commits a criminal offense in connection with or as
a result of violating any provision of this part 1.
(V) Immediately upon discovery of a violation of this paragraph (g), the
department of revenue and agents thereof:
(A) May require payment of the excise tax imposed pursuant to section 39-27-102 (1)(a) and all applicable civil penalties imposed pursuant to this paragraph
(g) from any person who violates the provisions of this paragraph (g); and
(B) May detain the shipment of gasoline or special fuel until payment is
collected.
(h) The executive director of the department of revenue may refuse to issue
a license if the executive director finds, after affording the applicant due notice and
an opportunity to be heard, that the application:
(I) Was filed by any person whose license has previously been suspended or
revoked for cause by the executive director of the department of revenue;
(II) Contains any misrepresentation, misstatement, or omission of material
information required by the application;
(III) Was filed by some person other than the real person in interest whose
license has been previously suspended or revoked for cause by the executive
director of the department of revenue;
(IV) Was filed by any person who is or has been delinquent in the payment of
any fee, tax, penalty, or other amount due to the department of revenue for more
than two taxable periods; or
(V) Was submitted by a person who the executive director of the department
of revenue determines is unable or unwilling to perform the duties and
responsibilities of a licensed gasoline or special fuel distributor, supplier, terminal
operator, importer, exporter, carrier, or blender, as applicable, based upon evidence
furnished to him or her.
(2) and (2.1) Repealed.
(2.2) (a) The executive director of the department of revenue, in accordance
with rules promulgated pursuant to the State Administrative Procedure Act,
article 4 of title 24, C.R.S., may revoke or suspend the license of any licensee who:
(I) Fails to timely file any report required under this part 1 or files a false
report;
(II) Fails to pay the tax imposed pursuant to this part 1 together with any
applicable penalty and interest;
(III) Fails to pay any civil penalty assessed pursuant to this part 1;
(IV) Is convicted of any criminal offense related to a violation of the
provisions of this part 1;
(V) Abuses the privileges for which the license was issued;
(VI) Fails to produce records requested or otherwise fails to cooperate with
the department in the administration of the provisions of this part 1.
(b) The executive director of the department of revenue may reinstate a
license, terminate a suspension, or grant a new license to a person whose license
has been revoked if no fact or condition exists that would constitute grounds for
the executive director to refuse to reinstate, grant, or terminate a suspension of a
license.
(2.5) and (3) Repealed.
(4) Notwithstanding the amount specified for any fee in subsection (1) of this
section, the executive director of the department of revenue, by rule or as
otherwise provided by law, may reduce the amount of one or more of the fees if
necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted
reserves of the fund to which all or any portion of one or more of the fees is
credited. After the uncommitted reserves of the fund are sufficiently reduced, the
executive director, by rule or as otherwise provided by law, may increase the
amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S.
(5) (a) A person who sells liquefied petroleum gas at the retail level of trade
that is not used as special fuel does not act as a distributor and does not need to be
licensed as one under this section if the person:
(I) Submits an affidavit, signed under penalty of perjury, stating that the
person will not place liquefied petroleum gas in a fuel tank as part of any sale and
that, if the person does place the fuel in a fuel tank, the person is subject to the
penalties set forth in this section; and
(II) Conspicuously posts at the distribution point a sign indicating that the
liquefied petroleum gas is not for sale for use in motor vehicles.
(b) The department of revenue shall establish the form of the affidavit
required under subparagraph (I) of this subsection (5).