(a) When the Commissioner deems it necessary to protect the revenues to be obtained under this chapter, he or she may require a user, 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 Financial Regulation of this State as to solvency and responsibility, in an amount fixed by the Commissioner, but not to exceed the total potential liability of such person, to secure the payment of any tax or penalties or interest due or which may become due from a licensee under this chapter. In the event that the Commissioner determines that such person 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. That person shall file a 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 instructions 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.

(b) The total amount of the bond required of a licensee may be fixed by the Commissioner and may be increased or decreased by him or her at any time subject to the limitations imposed by this section.

(c) If the liability upon a bond filed by a licensee with the Commissioner becomes discharged or reduced, whether by judgment rendered, payment made, or otherwise, or if in the opinion of the Commissioner any surety on a bond has become unsatisfactory or unacceptable, the Commissioner shall require the licensee to file a new bond with satisfactory sureties in the same amount and, upon failure to do so, the Commissioner shall forthwith revoke the license.

(d) If a licensee fails or refuses to increase the amount of a bond or file a bond as required by the Commissioner within 15 days after notice mailed to him or her, his or her license shall be revoked forthwith. (Added 1981, No. 172 (Adj. Sess.), § 1; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)