45 IAC 12-4-6 Bond increases; hearing; new bond or rider

Authority: IC 6-8.1-3-3

Affected: IC 6-6-1.1-408

Sec. 6. (a) The administrator may propose an increase in the amount of a licensed distributor's current bond, letter of credit, or cash deposit if the administrator has deemed the current amount to be insufficient to ensure payment to the state of the tax, penalty, and interest for which the licensed distributor is or may become liable.

(b) If the licensed distributor does not comply with the administrator's proposal within a reasonable time after receiving notice of the proposed bond, letter of credit, or cash deposit increase, the administrator shall notify the licensed distributor in writing of a hearing to allow the licensed distributor to dispute the proposed increase.

(c) The administrator shall give the licensed distributor at least fifteen (15) days written notice of the hearing.

(d) If after a hearing the administrator determines that an increase is warranted, the licensed distributor shall submit a new bond or rider, letter of credit, or cash deposit in the amount determined by the administrator.

(e) The new bond or rider must meet the requirements set forth in section 5 of this rule.

(f) If the new bond or rider, letter of credit, or cash deposit required under this section is unsatisfactory or not furnished within the time prescribed, the administrator shall cancel the distributor's license.

(Department of State Revenue; Reg 6-6-1.1-408(010); filed Sep 19, 1983, 2:23 p.m.: 6 IR 2320; filed Apr 30, 1986, 3:32 p.m.: 9 IR 2189; filed Dec 12, 2023, 2:27 p.m.: 20240110-IR-045230448FRA)