§ 47:818.117 — Bond requirements; amounts

Louisiana § 47:818.117

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§818.117. Bond requirements; amounts
A. Upon approval of the application by the secretary, the applicant shall file a surety
bond executed in favor of the secretary in an amount as follows:
(1) For a compressed natural gas dealer, liquefied natural gas dealer, or liquefied
petroleum gas fuel dealer, the amount of the bond shall be the greater of fifty thousand
dollars or an amount equal to three months' tax liability.
(2) Only one surety bond shall be required for a person requiring multiple licenses
and for any such person the minimum bond shall be the highest bond level required.
B. The secretary may require an additional bond amount from the licensee when
liability upon the previous bond is discharged or reduced by a judgment rendered, a payment
made, or another disposition, the licensee no longer meets the conditions for waiver of bond
as set forth in Subsection F of this Section, or if, in the opinion of the secretary, any surety
on the previous bond becomes unsatisfactory.
C. The licensee shall file the additional bond amount within thirty days after the date
on the notice is mailed by the secretary. The secretary may immediately revoke the licensee's
license upon the expiration of the thirty-day period if the licensee fails to provide the
additional bond amount required.
D. The surety must be authorized to engage in business within this state. The surety
bond shall be conditioned upon faithful compliance with the provisions of this Part,
including the filing of the returns and payment of all taxes prescribed by this Subpart. The
surety bond shall be approved by the secretary as to sufficiency and form and shall indemnify
the state against any loss arising from the failure of the licensee for any cause whatever to
pay the tax levied by this Subpart.
E. Any surety on an existing bond furnished by a person required to be licensed may
notify the secretary in writing of its intent to cancel the bond. The secretary shall
immediately notify the licensee of the intent of the surety to cancel, and the licensee shall
have thirty days after the date on the notice mailed by the secretary to provide a sufficient
replacement bond. The secretary may immediately cancel the licensee's license upon
expiration of the thirty-day period set out in this Subsection if the licensee fails to provide
a new replacement bond. The surety requesting cancellation shall remain liable for any
accrued liability or liability that will accrue during the thirty-day period provided for in this
Subsection but shall not be responsible for any liability which accrues after the thirty-day
period.
F. The secretary is authorized to waive the furnishing of the surety bond by any
licensee who meets all the following conditions:
(1) Has and agrees to maintain assets in Louisiana of a net value of not less than one
hundred twenty-five percent of the amount of the bond which would otherwise be required.
(2) Has not been delinquent in remitting taxes accrued or accruing under this Subpart
during the three-year period immediately preceding the filing of an application for waiver of
the bond.
(3) Has a current permit issued by the Liquefied Petroleum Gas Commission.
G. If any licensee whose bond has been waived by the secretary becomes delinquent
in remitting taxes due under this Subpart, the secretary may require that the licensee furnish
a bond in the amount required in this Section, and such licensee shall not be eligible for a
waiver of the bond for a period of three years from the date the bond is furnished.

Legislative History

Acts 2015, No. 147, §1, eff. July 1, 2015.