HRS § 243-3 — Retail dealers, permits; certificates


§243-3 Retail dealers, permits;
certificates. (a) The certificate of a retail dealer as to the amount of
the retail dealer's retail sales during the month, referred to in section
243-10, is of no validity unless at the time of making the certificate the
retail dealer holds a permit from the department of taxation, which is then in
effect. In order to obtain a permit, a retail dealer shall make an application
to the department therefor, in such form as the department prescribes, and
containing such information as the department requires.
(b) Any person who makes a false or fraudulent
application or certificate or false statement in an application or certificate
provided for by this chapter, with intent to defraud the State or to obtain,
for a licensed distributor, an unauthorized credit, or who in any manner
intentionally deceives or attempts to deceive the department in relation to an
application or certificate provided for by this chapter, shall be fined not
more than $5,000 or imprisoned not more than one year, or both.
(c) No permit shall be issued to a retail
dealer unless the department is satisfied that:
(1) The retail dealer, as to all of the liquid fuel
purchased by the retail dealer from licensed distributors, is engaged
exclusively in selling the same at retail, and is not using the liquid fuel for
any other purpose;
(2) The retail dealer maintains on the premises a
pump or pumps drawing on tanks into which fuel is delivered by licensed
distributors and from which no liquid fuel is drawn by the retailer for any
purpose other than the sale thereof at retail, and the retail dealer further
maintains records showing the quantity of liquid fuel on hand in those tanks at
the beginning and end of each month and the deliveries into those tanks made by
licensed distributors during the month; or
(3) The retail dealer maintains records by which
retail sales of liquid fuel purchased from licensed distributors are segregated
from all other sales or uses of liquid fuel, and further showing the quantity
of liquid fuel on hand at the beginning and end of each month and the purchases
of liquid fuel from licensed distributors during the month.
(d) Permits to retail dealers shall be issued
on an annual basis and shall expire at the end of each calendar year. A fee of
$5 shall be charged for each permit or renewal thereof. Permits shall be
numbered and each certificate made by a retail dealer holding a permit shall
bear the same identifying number as the permit which the retail dealer holds.
(e) Any entity that operates as a distributor
and also sells fuel to consumers at retail shall acquire a separate retail
dealer permit.
(f) Each retail dealer who holds a permit
issued by the department that remains in effect may make a certificate showing
the amount of retail sales, made by the retail dealer during the month, of
liquid fuel purchased from a licensed distributor, and may further furnish the
certificate to the licensed distributor from whom the retail dealer purchased
the liquid fuel, for the retail dealer's use as provided, in section 243-10.
(g) A retail dealer permit shall be
nonassignable and nontransferable from one entity to another entity. A retail
dealer permit may be transferred from one business location to another business
location after an application has been filed with the department requesting the
transfer and approval has been obtained from the department.
(h) A retail dealer permit issued under this
section shall be displayed at all times in a conspicuous place at the place of
business requiring the permit.
(i) The department may suspend, revoke, or
decline to renew any permit issued under this chapter whenever the department
finds that the applicant or permittee has failed to comply with this chapter or
any rule adopted under this chapter, or for any other good cause. Good cause
includes but is not limited to instances where an applicant or permittee has:
(1) Submitted a false or fraudulent application or
provided a false statement in an application;
(2) Possessed or displayed a false or fraudulent
permit;
(3) Provided a false or fraudulent certificate or
made a false statement in a certificate;
(4) Failed to comply with, violated, or been
convicted of violating any county, state, or federal law directly pertaining to
the sale, importation, acquisition, possession, distribution, transportation,
or smuggling of fuel, including but not limited to petroleum products and
alternative fuels; or
(5) Failed to maintain complete and accurate records
when and if required to be kept.
Upon suspending or revoking any permit, the
department may request that the permittee surrender the permit or any duplicate
issued to or printed by the permittee, and the permittee shall surrender the
permit or duplicate promptly to the department as requested.
(j) When the department suspends, revokes, or
declines to renew a permit, the department shall immediately notify the
applicant or permittee and afford the applicant or permittee a hearing, if
requested; provided that a hearing has not already been afforded. The
department shall provide no less than thirty days' notice to the applicant or
permittee of a hearing afforded under this subsection. After the hearing, the
department shall:
(1) Rescind its order of suspension;
(2) Continue the suspension;
(3) Revoke the permit;
(4) Rescind its order of revocation;
(5) Decline to renew the permit; or
(6) Renew the permit.