By Kuempel                                            H.B. No. 2007
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of liquefied petroleum gas.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 113.002(13), Natural Resources Code, is
    1-5  amended to read as follows:
    1-6              (13)  "Person" means any individual, partnership, firm,
    1-7  corporation, association, or any other business entity, a state
    1-8  agency or institution, county, municipality, school district, or
    1-9  other governmental subdivision.
   1-10        SECTION 2.  Section 113.003(a), Natural Resources Code, is
   1-11  amended to read as follows:
   1-12        (a)  None of the provisions of this chapter apply to:
   1-13              (1)  the production, refining, or manufacture of LPG;
   1-14              (2)  the storage, sale, or transportation of LPG by
   1-15  pipeline or railroad tank car by a pipeline company, producer,
   1-16  refiner, or manufacturer;
   1-17              (3)  equipment used by a pipeline company, producer,
   1-18  refiner, or manufacturer in a producing, refining, or manufacturing
   1-19  process or in the storage, sale, or transportation by pipeline or
   1-20  railroad tank car;
   1-21              (4)  any deliveries of LPG to another person at the
   1-22  place of production, refining, or manufacturing;
   1-23              (5)  underground storage facilities other than LP-gas
    2-1  containers designed for underground use; or
    2-2              (6)  any LP-gas container having a water capacity of
    2-3  16.4 ounces or less, or to any LP-gas piping system or appliance
    2-4  attached or connected to such container<; or>
    2-5              <(7)  an original manufacturer of a new motor vehicle
    2-6  powered by LPG or a contractor of such a manufacturer who produces
    2-7  a new LPG-powered vehicle>.
    2-8        SECTION 3.  Section 113.081, Natural Resources Code, is
    2-9  amended by adding Subsections (f) and (g) to read as follows:
   2-10        (f)  No license is required by an original manufacturer of a
   2-11  new motor vehicle powered by LPG or subcontractor of such a
   2-12  manufacturer who produces a new LPG-powered vehicle for the
   2-13  manufacturer.
   2-14        (g)  The commission by rule may establish reasonable
   2-15  conditions for licensing and exemptions from license requirements
   2-16  for a state agency or institution, county, municipality, school
   2-17  district, or other governmental subdivision.
   2-18        SECTION 4.  Section 113.082, Natural Resources Code, is
   2-19  amended to read as follows:
   2-20        Sec. 113.082.  Categories of Licensee; Fees.  A prospective
   2-21  licensee in LPG may apply to the LPG division for a license to
   2-22  engage in any one or more of the following categories:
   2-23              (A)  manufacturers/fabricators:  the manufacture,
   2-24  fabrication, assembly, repair, installation, subframing, testing,
   2-25  and sale of LPG containers, including LPG motor or mobile fuel
    3-1  containers and systems, and the repair and installation of
    3-2  transport and transfer systems; and the category "A" application
    3-3  and original license fee is an amount not to exceed $1,000 as
    3-4  determined by the commission; the annual renewal license fee is an
    3-5  amount not to exceed $600 as determined by the commission;
    3-6              (B)  transport outfitters:  the subframing, testing,
    3-7  and sale of LPG transport containers, the testing of LPG storage
    3-8  containers, the installation, testing, and sale of LPG motor or
    3-9  mobile fuel containers and systems, and the installation and repair
   3-10  of transport systems, and motor or mobile fuel systems; the
   3-11  category "B" application and original license fee is an amount not
   3-12  to exceed $400 as determined by the commission; the annual renewal
   3-13  license fee is an amount not to exceed $200 as determined by the
   3-14  commission;
   3-15              (C)  carriers:  the transportation of LPG by transport,
   3-16  including the loading and unloading of LPG, and the installation
   3-17  and repair of transport systems; the category "C" application and
   3-18  original license fee is an amount not to exceed $1,000 as
   3-19  determined by the commission; the annual renewal license fee is an
   3-20  amount not to exceed $300 as determined by the commission;
   3-21              (D)  general installers and repairmen:  the sale,
   3-22  service, and installation of containers, excluding motor fuel
   3-23  containers, and the service, installation, and repair of piping,
   3-24  certain appliances as defined by rule, excluding recreational
   3-25  vehicle appliances and LPG systems, excluding motor fuel and
    4-1  recreational vehicle systems; the category "D" application and
    4-2  original license fee is an amount not to exceed $100 as determined
    4-3  by the commission; the annual renewal license fee is an amount not
    4-4  to exceed $70 as determined by the commission;
    4-5              (E)  retail and wholesale dealers:  the storage, sale,
    4-6  transportation, and distribution of LPG at retail and wholesale,
    4-7  and all other activities included in this section except the
    4-8  manufacture, fabrication, assembly, repair, subframing, and testing
    4-9  of LPG containers; the category "E" application and original
   4-10  license fee is an amount not to exceed $750 as determined by the
   4-11  commission; the annual renewal license fee is an amount not to
   4-12  exceed $300 as determined by the commission;
   4-13              (F)  cylinder exchanges:  the operation of a
   4-14  cylinder-filling and container exchange dealership, including
   4-15  cylinder filling, the sale of LPG in cylinders, and the replacement
   4-16  of a cylinder valve; the category "F" application and original
   4-17  license fee is an amount not to exceed $100 as determined by the
   4-18  commission; the annual renewal license fee is an amount not to
   4-19  exceed $50 as determined by the commission;
   4-20              (G)  service station:  the operation of an LPG service
   4-21  station filling ASME containers designed for motor and mobile fuel;
   4-22  the category "G" application and original license fee is an amount
   4-23  not to exceed $100 as determined by the commission; the annual
   4-24  renewal license fee is an amount not to exceed $50 as determined by
   4-25  the commission;
    5-1              (H)  cylinder dealers:  the transportation and sale of
    5-2  LPG in cylinders; the category "H" application and original license
    5-3  fee is an amount not to exceed $1,000 as determined by the
    5-4  commission; the annual renewal license fee is an amount not to
    5-5  exceed $300 as determined by the commission;
    5-6              (I)  service station and cylinder exchanges:  any
    5-7  service station and cylinder activity set out in categories "F" and
    5-8  "G" of this section; the category "I" application and original
    5-9  license fee is an amount not to exceed $150 as determined by the
   5-10  commission; the annual renewal license fee is an amount not to
   5-11  exceed $70 as determined by the commission;
   5-12              (J)  service station and cylinder dealerships:  the
   5-13  operation of a cylinder-filling and container-exchange dealership,
   5-14  including cylinder filling and the sale, transportation,
   5-15  installation, and connection of LPG in cylinders, the replacement
   5-16  of cylinder valves, and the operation of an LPG service station as
   5-17  set out in category "G"; the category "J" application and original
   5-18  license fee is an amount not to exceed $1,000 as determined by the
   5-19  commission; the annual renewal license fee is an amount not to
   5-20  exceed $300 as determined by the commission;
   5-21              (K)  distribution system:  the sale and distribution of
   5-22  LPG through mains or pipes and the installation and repair of LPG
   5-23  systems; the category "K" application and original license fee is
   5-24  an amount not to exceed $1,000 as determined by the commission; the
   5-25  annual renewal license fee is an amount not to exceed $300 as
    6-1  determined by the commission;
    6-2              (L)  carburetion:  the sale and installation of LPG
    6-3  motor or mobile fuel containers, and the sale and installation of
    6-4  LPG motor fuel systems; application and original license fee is an
    6-5  amount not to exceed $100 as determined by the commission; annual
    6-6  renewal license fee is an amount not to exceed $50 as determined by
    6-7  the commission;
    6-8              (M)  recreational vehicle installers and repairmen:
    6-9  the sale, service, and installation of recreational vehicle
   6-10  containers, and the installation, repair, and service of
   6-11  recreational vehicle appliances, piping, and LPG systems, including
   6-12  recreational vehicle motor or mobile fuel systems and containers;
   6-13  the category "M" application and original license fee is an amount
   6-14  not to exceed $100 as determined by the commission; the annual
   6-15  renewal license fee is an amount not to exceed $70 as determined by
   6-16  the commission;
   6-17              (N)  manufactured housing installers and repairmen:
   6-18  the service and installation of containers that supply fuel to
   6-19  manufactured housing, and the installation, repair, and service of
   6-20  appliances and piping systems for manufactured housing; the
   6-21  category "N" application and original license fee is an amount not
   6-22  to exceed $100 as determined by the commission; the annual renewal
   6-23  license fee is an amount not to exceed $70 as determined by the
   6-24  commission;
   6-25              (O)  testing laboratory:  the testing of an LP-gas
    7-1  container, LP-gas motor fuel systems or mobile fuel systems,
    7-2  transfer systems, and transport systems  for the purpose of
    7-3  determining the safety of the container or systems for LP-gas
    7-4  service, including the necessary installation, disconnection,
    7-5  reconnecting, testing, and repair <and reconnecting> of LPG motor
    7-6  fuel systems or mobile fuel systems, transfer systems, and
    7-7  transport systems involved in the testing of containers; the<.
    7-8  The> category "O" application and original license fee is an amount
    7-9  not to exceed $400 as determined by the commission; the annual
   7-10  renewal license fee is an amount not to exceed $100 as determined
   7-11  by the commission.  A person registered under Section 113.135 on
   7-12  the effective date of this subsection has one year from the
   7-13  effective date of this subsection to apply for a license under this
   7-14  section.
   7-15        SECTION 5.  Section 113.093(g), Natural Resources Code, is
   7-16  amended to read as follows:
   7-17        (g)  At least 15 <30> days before the expiration of a
   7-18  person's license the commission shall notify the person in writing
   7-19  of the impending license expiration and shall attempt to obtain
   7-20  from the person a signed receipt confirming receipt of the notice.
   7-21        SECTION 6.  Section 113.097, Natural Resources Code, is
   7-22  amended to read as follows:
   7-23        Sec. 113.097.  INSURANCE REQUIREMENT.  (a)  The commission
   7-24  shall not issue a license authorizing activities under Section
   7-25  113.082 of this code or renew an existing license unless the
    8-1  applicant for license or license renewal provides proof of required
    8-2  insurance coverage with an insurance carrier authorized to do
    8-3  business in this state as evidenced by a certificate of authority
    8-4  having been issued to the carrier by the State Board of Insurance
    8-5  or, if the applicant is unable to obtain coverage from such a
    8-6  carrier, provides, on approval of the commission, proof of required
    8-7  insurance coverage issued by a surplus lines insurer that meets the
    8-8  requirements of Article 1.14-2, Insurance Code, and rules adopted
    8-9  by the State Board of Insurance under that article.
   8-10        (b)  A licensee shall not perform any licensed activity under
   8-11  Section 113.082 of this code unless the insurance coverage required
   8-12  by this chapter is in effect.
   8-13        (c)  Except as provided in Section 113.099 of this code, the
   8-14  types and amounts of insurance provided in Subsections (d) through
   8-15  (i) <(g)> of this section are required while engaged in any of the
   8-16  activities set forth in Section 113.082 of this code or any
   8-17  activity incidental thereto.
   8-18        (d)  Each <A> category "C," "E," "H," or "J" licensee must
   8-19  carry motor vehicle bodily injury and property damage liability
   8-20  coverage on each motor vehicle, including trailers and
   8-21  semitrailers, used to transport LP-gas.  The commission shall
   8-22  establish by rule a reasonable amount of coverage to be maintained,
   8-23  except that coverage shall not be less than the amounts required as
   8-24  proof of financial responsibility under the Texas Motor Vehicle
   8-25  Safety-Responsibility Act, as amended (Article 6701h, Vernon's
    9-1  Texas Civil Statutes).
    9-2        (e)  All licensees must carry general liability coverage in a
    9-3  reasonable amount, based on the type or types of licensed
    9-4  activities, which shall be established by commission rule.
    9-5        (f)  All licensees must acquire and maintain appropriate
    9-6  <carry> workers' compensation<,> or coverage for its employees
    9-7  under policies of work-related accident, disability, and health
    9-8  insurance, including coverage for death benefits, from an insurance
    9-9  carrier authorized to provide coverage in this state, in the
   9-10  amounts required by the commission <including employer's liability
   9-11  coverage>.
   9-12        (g)  Notwithstanding Subsection (f) of this section, a state
   9-13  agency or institution, county, municipality, school district, or
   9-14  other governmental subdivision may submit appropriate evidence of
   9-15  workers' compensation coverage by self-insurance if permitted by
   9-16  the state workers' compensation act.  The commission may require
   9-17  forms of evidence of coverage for this purpose other than that
   9-18  required under Section 113.098 of this code.
   9-19        (h)  A category "A," "B," "C," "E," or "O" licensee must
   9-20  carry completed operations and products liability insurance in a
   9-21  reasonable amount, based on the type or types of licensed
   9-22  activities, which shall be established by commission rule.
   9-23        (i)  The commission by rule may exempt or provide reasonable
   9-24  alternatives to the insurance requirements set forth in Subsections
   9-25  (a) through (e) and (h) of this section for a state agency or
   10-1  institution, county, municipality, school district, or other
   10-2  governmental subdivision.
   10-3        SECTION 7.  Section 113.099(c), Natural Resources Code, is
   10-4  amended to read as follows:
   10-5        (c)  A licensee or applicant for license that does not employ
   10-6  or contemplate the hiring of an employee or employees to be engaged
   10-7  in LPG-related activities in this state may make and file with the
   10-8  division a statement to that effect in lieu of filing evidence of
   10-9  coverage <a certificate> of workers' compensation or other
  10-10  alternative form of coverage as provided in this subchapter
  10-11  <insurance including employer's liability insurance>.
  10-12        SECTION 8.  Section 113.131(d), Natural Resources Code, is
  10-13  amended to read as follows:
  10-14        (d)  The commission, by rule, shall establish reasonable,
  10-15  nonrefundable registration and transfer fees for each LP-gas cargo
  10-16  trailer, semitrailer, bobtail, and cylinder delivery unit
  10-17  registered or transferred.
  10-18              (1)  The registration fee established by the commission
  10-19  shall not be less than $100, nor more than $300.
  10-20              (2)  The transfer fee established by the commission
  10-21  shall not be less than $25, nor more than $100.  <The nonrefundable
  10-22  registration fee for each unit is $150 a year for any LPG cargo
  10-23  trailer or semitrailer and $100 a year for any bobtail or
  10-24  cylinder-delivery unit.>
  10-25        SECTION 9.  This Act takes effect on September 1, 1993.
   11-1        SECTION 10.  The importance of this legislation and the
   11-2  crowded condition of the calendars in both houses create an
   11-3  emergency and an imperative public necessity that the
   11-4  constitutional rule requiring bills to be read on three several
   11-5  days in each house be suspended, and this rule is hereby suspended.