The director of taxation may require any person making application for an interstate motor fuel users license in the state of Kansas to file a bond with the director when:

1. (1) the licensee has failed to file timely a quarterly report;
2. (2) the correct amount of tax has not been remitted with the report;
3. (3) an audit indicates, that in the discretion of the director, a bond is required to protect the interest of the state; or
4. (4) the licensee is based in a state not a member of the international fuel tax agreement.

(Authorized by K.S.A. 79-34,123; implementing K.S.A. 79-34,116; effective Jan. 1, 1966; amended Jan. 1, 1972; amended May 1, 1988.)