1997 Minnesota Statutes

     296.06 Distributors' licenses. 

    Subdivision 1.    Of whom required.  No person shall 
 produce, manufacture or refine petroleum products in this state, 
 or receive, distribute, sell or use in this state petroleum 
 products which have not theretofore been received in this state 
 by a licensed distributor, or in any manner act as a distributor 
 as defined in section 296.01, subdivision 15, without having 
 been licensed by the commissioner as a distributor.  

    Subd. 2.    Requirements for issuance; fee.  A 
 distributor's license shall be issued to any responsible person 
 qualifying as a distributor who makes application therefor, and 
 who shall pay to the commissioner at the time thereof and 
 annually thereafter a license fee of $25, and who shall further 
 comply with the following conditions: 

    (1) A written application shall be made in a manner 
 approved by the commissioner, who shall require the applicant or 
 licensee to deposit with the state treasurer securities of the 
 United States government or the state of Minnesota or to execute 
 and file a bond, with a corporate surety approved by the 
 commissioner, to the state of Minnesota in an amount to be 
 determined by the commissioner and in a form to be fixed by the 
 commissioner and approved by the attorney general, and which 
 shall be conditioned for the payment when due of all excise 
 taxes, inspection fees, penalties, and accrued interest arising 
 in the ordinary course of business or by reason of any 
 delinquent money which may be due the state of Minnesota; the 
 bond shall cover all places of business within the state where 
 petroleum products are received by the licensee; and the 
 applicant or licensee shall designate and maintain an agent in 
 this state upon whom service may be had for all purposes of this 
 section.  

    (2) An initial applicant for a distributor's license shall 
 furnish a bond in a minimum sum of $3,000 for the first year; 

    (3) The commissioner, on reaching the opinion that the bond 
 given by a licensee is inadequate in amount to fully protect the 
 state, shall require an additional bond in such amount as the 
 commissioner deems sufficient; 

    (4) A licensee who desires to be exempt from depositing 
 securities or furnishing such bond, as hereinbefore provided 
 shall furnish an itemized financial statement showing the assets 
 and the liabilities of the applicant and if it shall appear to 
 the commissioner, from the financial statement or otherwise, 
 that the applicant is financially responsible, then the 
 commissioner may exempt such applicant from depositing such 
 securities or furnishing such bond until the commissioner 
 otherwise orders.  

    (5) Each license period shall be for one year ending each 
 June 30.  

    (6) Upon application to the commissioner and compliance by 
 the applicant with the provisions of this subdivision, the 
 commissioner also shall issue a distributor's license to (a) any 
 person engaged in this state in the bulk storage of petroleum 
 products and the distribution thereof by tank car or tank truck 
 or both, and (b) any person holding an unrevoked license as a 
 distributor from January 1, 1947, to July 1, 1994, and (c) any 
 person holding a license and performing a function under the 
 motor fuel tax law of an adjoining state equivalent to that of a 
 distributor under this chapter, who desires to ship or deliver 
 petroleum products from that state to persons in this state not 
 licensed as distributors in this state and who agrees to assume 
 with respect to all petroleum products so shipped or delivered 
 the liabilities of a distributor receiving petroleum products in 
 this state, provided, however, that any such license shall be 
 issued only for the purpose of permitting such person to receive 
 in this state the petroleum products so shipped or delivered.  
 Except as herein provided, all persons licensed as distributors 
 under this clause shall have the same rights and privileges and 
 be subject to the same duties, requirements and penalties as 
 other licensed distributors. 

    Subd. 3.    Surrender of license.  When the licensee 
 shall voluntarily or involuntarily sell, dispose of or 
 discontinue business during the term of a license, the licensee 
 shall immediately notify the commissioner in writing and shall 
 within 10 days surrender the license.  

    Subd. 4.    Rights of surety, subrogation.  When the 
 surety upon any bond issued pursuant to the provisions of this 
 chapter shall have fulfilled the conditions of such bond and 
 compensated the state for any loss occasioned by any act or 
 omission of any licensee under this chapter, such surety shall 
 be subrogated to all the rights of the state in connection with 
 the transaction wherein such loss occurred. 

    HIST: 1941 c 495 s 4; 1943 c 320 s 6; 1945 c 154 s 1; 1947 c 
 412 s 5,6; 1949 c 143 s 4,5; 1953 c 41 s 4; 1963 c 66 s 9; 1969 
 c 1148 s 40; 1983 c 222 s 31; 1986 c 444; 1990 c 480 art 4 s 2; 
 1990 c 594 art 1 s 65; 1992 c 575 s 53; 1994 c 510 art 5 s 16