§243-3  Retail dealers, permits;certificates.  (a)  The certificate of a retail dealer as to the amount ofthe retail dealer's retail sales during the month, referred to in section243-10, is of no validity unless at the time of making the certificate theretail dealer holds a permit from the department of taxation, which is then ineffect.  In order to obtain a permit, a retail dealer shall make an applicationto the department therefor, in such form as the department prescribes, andcontaining such information as the department requires.

(b)  Any person who makes a false or fraudulentapplication or certificate or false statement in an application or certificateprovided for by this chapter, with intent to defraud the State or to obtain,for a licensed distributor, an unauthorized credit, or who in any mannerintentionally deceives or attempts to deceive the department in relation to anapplication or certificate provided for by this chapter, shall be fined notmore than $5,000 or imprisoned not more than one year, or both.

(c)  No permit shall be issued to a retaildealer unless the department is satisfied that:

(1)  The retail dealer, as to all of the liquid fuelpurchased by the retail dealer from licensed distributors, is engagedexclusively in selling the same at retail, and is not using the liquid fuel forany other purpose; or

(2)  The retail dealer maintains on the premises apump or pumps drawing on tanks into which fuel is delivered by licenseddistributors and from which no liquid fuel is drawn by the retailer for anypurpose other than the sale thereof at retail, and the retail dealer furthermaintains records showing the quantity of liquid fuel on hand in those tanks atthe beginning and end of each month and the deliveries into those tanks made bylicensed distributors during the month; or

(3)  The retail dealer maintains records by whichretail sales of liquid fuel purchased from licensed distributors are segregatedfrom all other sales or uses of liquid fuel, and further showing the quantityof liquid fuel on hand at the beginning and end of each month and the purchasesof liquid fuel from licensed distributors during the month.

(d)  Permits to retail dealers shall be issuedon 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 benumbered and each certificate made by a retail dealer holding a permit shallbear the same identifying number as the permit which the retail dealer holds.

(e)  The department may revoke a permit uponthe grounds hereinafter stated, after notice to the retail dealer holding thepermit informing the retail dealer of the grounds of the proposed revocationand of the time and place at which a hearing will be held thereon.  If thedepartment finds, after the hearing, that there is good cause therefor it mayrevoke the permit.  The permit may be revoked upon any of the followinggrounds:

(1)  A false or fraudulent application or falsestatement in an application;

(2)  The giving of a false or fraudulent certificateor a false statement in a certificate;

(3)  Failure to maintain the practices or recordsrequired by paragraphs (1), (2), or (3) of subsection (c), whichever isapplicable as shown by the retail dealer's application for the permit;

(4)  Incomplete or inaccurate records when and ifrequired to be kept.

(f)  Each retail dealer who holds a permitissued by the department which remains in effect, may make a certificateshowing the amount of retail sales, made by the retail dealer during the month,of liquid fuel purchased from a licensed distributor, and further may furnishsuch certificate to the licensed distributor from whom the retail dealerpurchased the liquid fuel, for the retail dealer's use as provided, in section243-10. [L 1957, c 322, §2; am L Sp 1959 2d, c 1, §16; Supp, §123-2.5; HRS§243-3; gen ch 1985]

 

Cross References

 

  Hearings, see chapter 91.