Sec. 540.3. Refusal to issue a certificate of authority

(a) The department may refuse to issue a new certificate of authority to any person (applicant) who has filed a new certificate of registration for any of the reasons described in section 539.3(a) of this Title. Such reasons for refusal are also set forth in section 1134(a)(4)(B) of the Tax Law.

(b) Notification of proposed refusal to issue a certificate of authority.

A notice of proposed refusal to issue a certificate of authority, issued to an applicant who has filed a certificate of registration renewal, shall:

(1) be sent by certified or registered mail to the registrant or applicant to the address on its certificate of registration renewal filed with the department;

(2) state the basis for such proposed refusal to issue a certificate of authority;

(3) clearly notify the applicant that the impending refusal may be protested by filing an application for a hearing or a request for a conciliation conference; and

(4) notify the applicant that the notice of proposed refusal to issue a certificate of authority shall be final unless such applicant shall have filed an application for a hearing or a request for conciliation conference within 90 days of the date of such notice.