Vermont § 3011 - Bond requirement; amount; failure of security

§ 3011. Bond requirement; amount; failure of security

• (a) When the Commissioner deems it necessary to protect the revenues to be obtained under
  this chapter, he or she may require a user, dealer, or distributor to file with him
  or her a bond, issued by a surety company authorized to transact business in this
  State and approved by the Commissioner of Financial Regulation of this State as to
  solvency and responsibility, in an amount fixed by the Commissioner, but not to exceed
  the total potential liability of such person, to secure the payment of any tax or
  penalties or interest due or that may become due from a licensee under this chapter.
  In the event that the Commissioner determines that such person is to file a bond,
  he or she shall notify the user, dealer, or distributor by mail of the amount of the
  bond required. That person shall file a bond within 15 days after the giving of the
  notice unless within those 15 days he or she shall request in writing sent by mail
  a hearing before the Commissioner at which the necessity, propriety, and amount of
  the bond shall be determined by the Commissioner. The Commissioner’s determination
  shall be final and shall be complied with within 15 days after mailing to the user,
  dealer, or distributor. In lieu of a bond, securities approved by the Commissioner
  or cash in such amount as he or she may prescribe may be deposited, which shall be
  kept in the custody of the State Treasurer who may at any time upon instructions from
  the Commissioner without notice to the depositor apply them to any tax or interest
  or penalties due, and for that purpose the securities may be sold by him or her at
  public or private sale without notice to the depositor thereof. (b) The total amount of the bond required of a licensee may be fixed by the Commissioner
  and may be increased or decreased by him or her at any time subject to the limitations
  imposed by this section. (c) If the liability upon a bond filed by a licensee with the Commissioner becomes discharged
  or reduced, whether by judgment rendered, payment made, or otherwise, or if in the
  opinion of the Commissioner any surety on a bond has become unsatisfactory or unacceptable,
  the Commissioner shall require the licensee to file a new bond with satisfactory sureties
  in the same amount and, upon failure to do so, the Commissioner shall immediately
  revoke the license. (d) If a licensee fails or refuses to increase the amount of a bond or file a bond as
  required by the Commissioner within 15 days after notice is mailed to the licensee,
  then the licensee’s license shall be revoked immediately. (Added 1981, No. 172 (Adj. Sess.), § 1; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2019, No. 149 (Adj. Sess.), § 17, eff. July 13, 2020; 2023, No. 85 (Adj. Sess.), § 306, eff. July 1, 2024.)