State Codes and Statutes
Statutes > Vermont > Title-32 > Chapter-205 > 7737
§ 7737. Bonding
When the commissioner, in his or her discretion, deems it necessary to protect the revenues to be obtained under this chapter, he or she may require any wholesale 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 banking, insurance, securities, and health care administration of this state as to its solvency and responsibility, in an amount fixed by the commissioner, to secure the payment of any tax or penalties or interest due or which may become due from that wholesale dealer or distributor under this chapter. In the event that the commissioner determines that a wholesale dealer or distributor is to file a bond, he or she shall give notice to him or her to that effect, specifying the amount of the bond required. The wholesale dealer or distributor shall file the bond within 15 days after the giving of the notice unless within those 15 days he or she shall request in writing a hearing before the commissioner at which the necessity, propriety, and amount of the bond shall be determined by the commissioner. The determination shall be final and shall be complied with within 15 days after the giving of notice thereof. 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 instruction 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. In determining whether a person should be required to obtain a bond, the commissioner is specifically authorized to consider the filing and payment history, with respect to any tax administered by the commissioner, of the person or any individual, corporation, partnership or other legal entity with which the person is or was associated as principal, partner, officer, director, employee, agent or incorporator. (Added 1981, No. 31, § 7; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2001, No. 140 (Adj. Sess.), § 40.)
