Louisiana § RS 47:818.117 - Bond requirements; amounts

§ RS 47:818.117. 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.

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