Section 977.16. Posting and collecting security

(a) Requirement to post security.

(1) A distributor shall remit fees on or before the last day of each month. Fees shall be calculated based on the quantity of the regulated substance distributed by the distributor in the preceding month. A distributor shall be considered delinquent if fees are not received by the Fund within 45 days after the end of the calendar month in which the product was delivered.

(2) A distributor shall post security for a minimum of 12 months following a delinquency.

(3) Following the posting of security, the Fund will have recourse against the security if the distributor fails to timely remit to the Fund, all or part of the gallon fee due to the Fund.

(4) The form of security and the calculation of the amount of security shall be as set forth in § 977.17 (relating to security for payment of gallon fee).

(b) Collecting posted security.

(1) For any delinquent payment, the Fund may make demand for payment upon the distributor’s surety or guarantor for payment of the full amount due the Fund.

(2) The distributor shall post replacement security within 5 days after collection of the posted security. A distributor who fails or refuses to post replacement security is ineligible to collect the fees of the Fund.

Notation

Cross References

This section cited in 25 Pa. Code § 977.14 (relating to gallon fee payment procedure); and 25 Pa. Code § 977.17 (relating to security for payment of gallon fee).