N.H. Admin. Code § Saf-C 306.10 - Licensed Distributor Elimination or Reduction of Bond Procedure

(a) Upon application for license renewal, a licensed distributor in good standing may request the initial release or reduction of the bond required under RSA 260:37 by submitting:

(1) A written request to:

Department of Safety

Road Toll. Bureau

33 Hazen Drive

Concord, New Hampshire, 03305;

(2) The business entity's financial statements audited by a CPA firm in accordance with the AICPA's Statements of Auditing Standards (SAS) for the immediate preceding 3 consecutive years; and

(3) A copy of the "Independent Auditors Report" issued by the CPA firm for the immediate preceding 3 consecutive years.

(b) Upon review of the licensed distributor's request pursuant to (a) above, the commissioner shall release the bond requirement if he determines:

(1) The licensed distributor has been in good standing for the immediate 5 consecutive years;

(2) The "Independent Auditors Report" provides an unqualified opinion; and

(3) The elimination of the bond would not unreasonably jeopardize state revenues.

(c) Upon review of the licensed distributor's request pursuant to (a) above, the commissioner shall reduce the bond if the commissioner determines:

(1) The licensed distributor has been in good standing for the immediate 5 consecutive years;

(2) The "Independent Auditors Report" provides a qualified opinion;

(3) The reduction of the bond would not unreasonably jeopardize state revenues.

(d) For the purposes of (c) above, the administrator shall perform a financial analysis to determine the amount of the reduction of the bond that will not unreasonably jeopardize state revenues.

(e) A request for the reduction or elimination of bond shall be denied if:

(1) The licensed distributor is not in good standing;

(2) The licensed distributor has not provided the information in (a) above;

(3) The Independent Auditors Report issues an opinion that is "Unqualified" with explanatory language that there is a substantial doubt about the entity's ability to continue as a going concern, "Adverse" or a "Disclaimer"; or

(4) Reducing or eliminating the bond shall unreasonably jeopardize state revenues.

(f) If the elimination or reduction of bond is granted, it shall be in force during the annual license term. During each subsequent license renewal, the licensed distributor shall resubmit a request for elimination or reduction of bond and provide the most recent audited financial statement and accompanying independent auditor's report. If a licensed distributor fails to submit a request and the records specified in this section at the time of renewal, the license renewal shall be denied until a bond is put back into place pursuant to RSA 260:37.

(g) For the purposes of (a)(2) above, if the licensed distributor submits a consolidated financial statement whereas the distributor is a component or subsidiary of a consolidated company's financial statement, the distributor shall submit the parent company's guaranty that insures that the parent company shall guaranty any road toll liability in the event that the component or subsidiary distributor cannot pay.

Notes

N.H. Admin. Code § Saf-C 306.10

Derived from Volume XL Number 2, Filed January 9, 2020, Proposed by #12961, Effective 1/1/2020, Expires 6/29/2020 Derived from Volume XLI Number 19, Filed May 13, 2021, Proposed by #13186, Effective 4/7/2021, Expires 4/7/2031.