Section 10-47B-83 - Reasons for requiring increase in amount of security or bond-Notice-Cancellation of license-HearingThe secretary may require a licensee to replace or increase the amount of the security or bond, if at any time in the secretary's opinion the tax revenues are not adequately protected under the existing security or bond. Reasons for such action include:
(1) The reduction of a bond or security whether by judgment rendered, payment made, or otherwise;(2) The secretary's judgment that any surety on a bond becomes unsatisfactory or discontinues conducting business within this state;(3) The secretary's judgment that because of taxpayer reporting or payment delinquencies, or issuance of checks against insufficient funds or with no account, the state's tax revenues may be jeopardized. Each check issued against insufficient funds or with no account or each delinquency is a separate incident and is subject to additional security in accordance with the schedule in this section. The increase in security shall remain in effect until the taxpayer has filed returns and remitted tax payments on time for twelve consecutive months; or(4) The cancellation of a bond by a surety or the withdrawal of security by a licensee.In such cases, the secretary shall notify the licensee in writing of the increased or replacement security requirements. The licensee shall have thirty days from the date of written notification by the secretary to provide evidence of the replacement or supplemental security to the secretary. Failure of the licensee to provide such evidence shall be cause for the secretary to immediately cancel the license and send written notification of the cancellation to the licensee. After the cancellation, the licensee has thirty days in which to submit a written request to the secretary for an administrative hearing to review the cancellation.
SL 1995, ch 71, § 83; SL 1999, ch 58, § 36.