H.B. No. 2007
1-1 AN ACT
1-2 relating to the regulation of liquefied petroleum gas and of the
1-3 inspection and testing of liquefied petroleum gas meters; providing
1-4 penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 113.002(13), Natural Resources Code, is
1-7 amended to read as follows:
1-8 (13) "Person" means any individual, partnership, firm,
1-9 corporation, association, or any other business entity, a state
1-10 agency or institution, county, municipality, school district, or
1-11 other governmental subdivision.
1-12 SECTION 2. Section 113.003(a), Natural Resources Code, is
1-13 amended to read as follows:
1-14 (a) None of the provisions of this chapter apply to:
1-15 (1) the production, refining, or manufacture of LPG;
1-16 (2) the storage, sale, or transportation of LPG by
1-17 pipeline or railroad tank car by a pipeline company, producer,
1-18 refiner, or manufacturer;
1-19 (3) equipment used by a pipeline company, producer,
1-20 refiner, or manufacturer in a producing, refining, or manufacturing
1-21 process or in the storage, sale, or transportation by pipeline or
1-22 railroad tank car;
1-23 (4) any deliveries of LPG to another person at the
2-1 place of production, refining, or manufacturing;
2-2 (5) underground storage facilities other than LP-gas
2-3 containers designed for underground use; or
2-4 (6) any LP-gas container having a water capacity of
2-5 16.4 ounces or less, or to any LP-gas piping system or appliance
2-6 attached or connected to such container<; or>
2-7 <(7) an original manufacturer of a new motor vehicle
2-8 powered by LPG or a contractor of such a manufacturer who produces
2-9 a new LPG-powered vehicle>.
2-10 SECTION 3. Section 113.081, Natural Resources Code, is
2-11 amended by adding Subsections (f) and (g) to read as follows:
2-12 (f) No license is required by an original manufacturer of a
2-13 new motor vehicle powered by LPG or subcontractor of such a
2-14 manufacturer who produces a new LPG-powered vehicle for the
2-15 manufacturer.
2-16 (g) The commission by rule may establish reasonable
2-17 conditions for licensing and exemptions from license requirements
2-18 for a state agency or institution, county, municipality, school
2-19 district, or other governmental subdivision.
2-20 SECTION 4. Section 113.082, Natural Resources Code, is
2-21 amended to read as follows:
2-22 Sec. 113.082. Categories of Licensee; Fees. A prospective
2-23 licensee in LPG may apply to the LPG division for a license to
2-24 engage in any one or more of the following categories:
2-25 (A) manufacturers/fabricators: the manufacture,
3-1 fabrication, assembly, repair, installation, subframing, testing,
3-2 and sale of LPG containers, including LPG motor or mobile fuel
3-3 containers and systems, and the repair and installation of
3-4 transport and transfer systems; and the category "A" application
3-5 and original license fee is an amount not to exceed $1,000 as
3-6 determined by the commission; the annual renewal license fee is an
3-7 amount not to exceed $600 as determined by the commission;
3-8 (B) transport outfitters: the subframing, testing,
3-9 and sale of LPG transport containers, the testing of LPG storage
3-10 containers, the installation, testing, and sale of LPG motor or
3-11 mobile fuel containers and systems, and the installation and repair
3-12 of transport systems, and motor or mobile fuel systems; the
3-13 category "B" application and original license fee is an amount not
3-14 to exceed $400 as determined by the commission; the annual renewal
3-15 license fee is an amount not to exceed $200 as determined by the
3-16 commission;
3-17 (C) carriers: the transportation of LPG by transport,
3-18 including the loading and unloading of LPG, and the installation
3-19 and repair of transport systems; the category "C" application and
3-20 original license fee is an amount not to exceed $1,000 as
3-21 determined by the commission; the annual renewal license fee is an
3-22 amount not to exceed $300 as determined by the commission;
3-23 (D) general installers and repairmen: the sale,
3-24 service, and installation of containers, excluding motor fuel
3-25 containers, and the service, installation, and repair of piping,
4-1 certain appliances as defined by rule, excluding recreational
4-2 vehicle appliances and LPG systems, excluding motor fuel and
4-3 recreational vehicle systems; the category "D" application and
4-4 original license fee is an amount not to exceed $100 as determined
4-5 by the commission; the annual renewal license fee is an amount not
4-6 to exceed $70 as determined by the commission;
4-7 (E) retail and wholesale dealers: the storage, sale,
4-8 transportation, and distribution of LPG at retail and wholesale,
4-9 and all other activities included in this section except the
4-10 manufacture, fabrication, assembly, repair, subframing, and testing
4-11 of LPG containers; the category "E" application and original
4-12 license fee is an amount not to exceed $750 as determined by the
4-13 commission; the annual renewal license fee is an amount not to
4-14 exceed $300 as determined by the commission;
4-15 (F) cylinder exchanges: the operation of a
4-16 cylinder-filling and container exchange dealership, including
4-17 cylinder filling, the sale of LPG in cylinders, and the replacement
4-18 of a cylinder valve; the category "F" application and original
4-19 license fee is an amount not to exceed $100 as determined by the
4-20 commission; the annual renewal license fee is an amount not to
4-21 exceed $50 as determined by the commission;
4-22 (G) service station: the operation of an LPG service
4-23 station filling ASME containers designed for motor and mobile fuel;
4-24 the category "G" application and original license fee is an amount
4-25 not to exceed $100 as determined by the commission; the annual
5-1 renewal license fee is an amount not to exceed $50 as determined by
5-2 the commission;
5-3 (H) cylinder dealers: the transportation and sale of
5-4 LPG in cylinders; the category "H" application and original license
5-5 fee is an amount not to exceed $1,000 as determined by the
5-6 commission; the annual renewal license fee is an amount not to
5-7 exceed $300 as determined by the commission;
5-8 (I) service station and cylinder exchanges: any
5-9 service station and cylinder activity set out in categories "F" and
5-10 "G" of this section; the category "I" application and original
5-11 license fee is an amount not to exceed $150 as determined by the
5-12 commission; the annual renewal license fee is an amount not to
5-13 exceed $70 as determined by the commission;
5-14 (J) service station and cylinder dealerships: the
5-15 operation of a cylinder-filling and container-exchange dealership,
5-16 including cylinder filling and the sale, transportation,
5-17 installation, and connection of LPG in cylinders, the replacement
5-18 of cylinder valves, and the operation of an LPG service station as
5-19 set out in category "G"; the category "J" application and original
5-20 license fee is an amount not to exceed $1,000 as determined by the
5-21 commission; the annual renewal license fee is an amount not to
5-22 exceed $300 as determined by the commission;
5-23 (K) distribution system: the sale and distribution of
5-24 LPG through mains or pipes and the installation and repair of LPG
5-25 systems; the category "K" application and original license fee is
6-1 an amount not to exceed $1,000 as determined by the commission; the
6-2 annual renewal license fee is an amount not to exceed $300 as
6-3 determined by the commission;
6-4 (L) carburetion: the sale and installation of LPG
6-5 motor or mobile fuel containers, and the sale and installation of
6-6 LPG motor fuel systems; application and original license fee is an
6-7 amount not to exceed $100 as determined by the commission; annual
6-8 renewal license fee is an amount not to exceed $50 as determined by
6-9 the commission;
6-10 (M) recreational vehicle installers and repairmen:
6-11 the sale, service, and installation of recreational vehicle
6-12 containers, and the installation, repair, and service of
6-13 recreational vehicle appliances, piping, and LPG systems, including
6-14 recreational vehicle motor or mobile fuel systems and containers;
6-15 the category "M" application and original license fee is an amount
6-16 not to exceed $100 as determined by the commission; the annual
6-17 renewal license fee is an amount not to exceed $70 as determined by
6-18 the commission;
6-19 (N) manufactured housing installers and repairmen:
6-20 the service and installation of containers that supply fuel to
6-21 manufactured housing, and the installation, repair, and service of
6-22 appliances and piping systems for manufactured housing; the
6-23 category "N" application and original license fee is an amount not
6-24 to exceed $100 as determined by the commission; the annual renewal
6-25 license fee is an amount not to exceed $70 as determined by the
7-1 commission;
7-2 (O) testing laboratory: the testing of an LP-gas
7-3 container, LP-gas motor fuel systems or mobile fuel systems,
7-4 transfer systems, and transport systems for the purpose of
7-5 determining the safety of the container or systems for LP-gas
7-6 service, including the necessary installation, disconnection,
7-7 reconnecting, testing, and repair <and reconnecting> of LPG motor
7-8 fuel systems or mobile fuel systems, transfer systems, and
7-9 transport systems involved in the testing of containers; the<.
7-10 The> category "O" application and original license fee is an amount
7-11 not to exceed $400 as determined by the commission; the annual
7-12 renewal license fee is an amount not to exceed $100 as determined
7-13 by the commission. A person registered under Section 113.135 on
7-14 the effective date of this subsection has one year from the
7-15 effective date of this subsection to apply for a license under this
7-16 section.
7-17 SECTION 5. Section 113.093(g), Natural Resources Code, is
7-18 amended to read as follows:
7-19 (g) At least 15 <30> days before the expiration of a
7-20 person's license the commission shall notify the person in writing
7-21 of the impending license expiration and shall attempt to obtain
7-22 from the person a signed receipt confirming receipt of the notice.
7-23 SECTION 6. Section 113.097, Natural Resources Code, is
7-24 amended to read as follows:
7-25 Sec. 113.097. INSURANCE REQUIREMENT. (a) The commission
8-1 shall not issue a license authorizing activities under Section
8-2 113.082 of this code or renew an existing license unless the
8-3 applicant for license or license renewal provides proof of required
8-4 insurance coverage with an insurance carrier authorized to do
8-5 business in this state as evidenced by a certificate of authority
8-6 having been issued to the carrier by the State Board of Insurance
8-7 or, if the applicant is unable to obtain coverage from such a
8-8 carrier, provides, on approval of the commission, proof of required
8-9 insurance coverage issued by a surplus lines insurer that meets the
8-10 requirements of Article 1.14-2, Insurance Code, and rules adopted
8-11 by the State Board of Insurance under that article.
8-12 (b) A licensee shall not perform any licensed activity under
8-13 Section 113.082 of this code unless the insurance coverage required
8-14 by this chapter is in effect.
8-15 (c) Except as provided in Section 113.099 of this code, the
8-16 types and amounts of insurance provided in Subsections (d) through
8-17 (i) <(g)> of this section are required while engaged in any of the
8-18 activities set forth in Section 113.082 of this code or any
8-19 activity incidental thereto.
8-20 (d) Each <A> category "C," "E," "H," or "J" licensee must
8-21 carry motor vehicle bodily injury and property damage liability
8-22 coverage on each motor vehicle, including trailers and
8-23 semitrailers, used to transport LP-gas. The commission shall
8-24 establish by rule a reasonable amount of coverage to be maintained,
8-25 except that coverage shall not be less than the amounts required as
9-1 proof of financial responsibility under the Texas Motor Vehicle
9-2 Safety-Responsibility Act, as amended (Article 6701h, Vernon's
9-3 Texas Civil Statutes).
9-4 (e) All licensees must carry general liability coverage in a
9-5 reasonable amount, based on the type or types of licensed
9-6 activities, which shall be established by commission rule.
9-7 (f) All licensees must acquire and maintain appropriate
9-8 <carry> workers' compensation<,> or coverage for its employees
9-9 under policies of work-related accident, disability, and health
9-10 insurance, including coverage for death benefits, from an insurance
9-11 carrier authorized to provide coverage in this state, in the
9-12 amounts required by the commission <including employer's liability
9-13 coverage>.
9-14 (g) Notwithstanding Subsection (f) of this section, a state
9-15 agency or institution, county, municipality, school district, or
9-16 other governmental subdivision may submit appropriate evidence of
9-17 workers' compensation coverage by self-insurance if permitted by
9-18 the state workers' compensation act. The commission may require
9-19 forms of evidence of coverage for this purpose other than that
9-20 required under Section 113.098 of this code.
9-21 (h) A category "A," "B," "C," "E," or "O" licensee must
9-22 carry completed operations and products liability insurance in a
9-23 reasonable amount, based on the type or types of licensed
9-24 activities, which shall be established by commission rule.
9-25 (i) The commission by rule may exempt or provide reasonable
10-1 alternatives to the insurance requirements set forth in Subsections
10-2 (a) through (e) and (h) of this section for a state agency or
10-3 institution, county, municipality, school district, or other
10-4 governmental subdivision.
10-5 SECTION 7. Section 113.099(c), Natural Resources Code, is
10-6 amended to read as follows:
10-7 (c) A licensee or applicant for license that does not employ
10-8 or contemplate the hiring of an employee or employees to be engaged
10-9 in LPG-related activities in this state may make and file with the
10-10 division a statement to that effect in lieu of filing evidence of
10-11 coverage <a certificate> of workers' compensation or other
10-12 alternative form of coverage as provided in this subchapter
10-13 <insurance including employer's liability insurance>.
10-14 SECTION 8. Section 113.131(d), Natural Resources Code, is
10-15 amended to read as follows:
10-16 (d) The commission, by rule, shall establish reasonable,
10-17 nonrefundable registration and transfer fees for each LP-gas cargo
10-18 trailer, semitrailer, bobtail, and cylinder delivery unit
10-19 registered or transferred.
10-20 (1) The registration fee established by the commission
10-21 shall not be less than $100, nor more than $300.
10-22 (2) The transfer fee established by the commission
10-23 shall not be less than $25, nor more than $100. <The nonrefundable
10-24 registration fee for each unit is $150 a year for any LPG cargo
10-25 trailer or semitrailer and $100 a year for any bobtail or
11-1 cylinder-delivery unit.>
11-2 SECTION 9. Chapter 13, Agriculture Code, is amended by
11-3 adding Subchapter F to read as follows:
11-4 SUBCHAPTER F. INSPECTION AND TESTING OF LIQUEFIED
11-5 PETROLEUM GAS METERS
11-6 Sec. 13.301. DEFINITIONS. In this subchapter:
11-7 (1) "Person" means any individual, partnership, firm,
11-8 corporation, association, or any other business entity.
11-9 (2) "Liquefied petroleum gas meter" means a device
11-10 which is used for the measurement of liquefied petroleum gas in a
11-11 liquid state, whether the device is installed in a permanent
11-12 location or mounted on a vehicle.
11-13 Sec. 13.302. LICENSE REQUIREMENT. (a) A person may not
11-14 inspect or test liquefied petroleum gas meters unless the person
11-15 holds a license issued under this subchapter.
11-16 (b) The department shall issue a license to a person who
11-17 meets the requirements of this subchapter.
11-18 (c) Each license holder under this subchapter shall conduct
11-19 inspecting or testing activities in compliance with the rules of
11-20 the department.
11-21 (d) A license holder shall maintain and submit to the
11-22 department a report and record of all inspecting or testing
11-23 activities compiled in accordance with the rules of the department.
11-24 (e) A license shall not be required of a corporation,
11-25 partnership, joint venture, or an employee of any such entity which
12-1 owns or operates a natural gas treatment or extraction facility.
12-2 Sec. 13.303. GENERAL REQUIREMENTS FOR LICENSE ISSUANCE OR
12-3 RENEWAL. Before a license is issued or renewed by the department
12-4 under this subchapter:
12-5 (1) the person applying for the license or renewal of
12-6 the license shall provide the department proof of completion of a
12-7 department-approved academic, trade, or professional course of
12-8 instruction required by the department's rules;
12-9 (2) the person shall file with the department an
12-10 insurance policy or other proof of insurance evidencing that the
12-11 applicant has a completed operations liability insurance policy
12-12 issued by an insurance company authorized to do business in this
12-13 state or by a surplus lines insurer that meets the requirements of
12-14 Article 1.14-2, Insurance Code, and rules adopted by the State
12-15 Board of Insurance in an amount set by the department and based on
12-16 the type of licensed activities to be provided; and
12-17 (3) the department, to verify compliance with trade
12-18 practices, rules of the department, and this chapter, may conduct
12-19 an inspection of the applicant's:
12-20 (A) facilities;
12-21 (B) inspecting and testing equipment and
12-22 procedures;
12-23 (C) repair and calibration equipment and
12-24 procedures; and
12-25 (D) transportation equipment.
13-1 Sec. 13.304. LICENSE AND RENEWAL; FEES. (a) An application
13-2 for a license shall be submitted to the department on a form
13-3 prescribed by the department, accompanied by a nonrefundable annual
13-4 license fee in an amount established by department rule, not to
13-5 exceed $200.
13-6 (b) A license issued under this subchapter expires on the
13-7 anniversary date of the person's test equipment calibration, as
13-8 such anniversary is defined by a department rule, and may be
13-9 renewed by filing with the department a renewal application form
13-10 prescribed by the department, accompanied by a nonrefundable annual
13-11 license renewal fee in an amount established by department rule,
13-12 not to exceed $200.
13-13 (c) A person who fails to submit a license renewal fee on or
13-14 before the expiration date of the license must pay, in addition to
13-15 the license renewal fee, the late fee provided by Section 12.024 of
13-16 this code.
13-17 Sec. 13.305. DUTIES OF THE DEPARTMENT. (a) The department
13-18 by rule may adopt a system to periodically monitor and inspect or
13-19 test scales inspected and tested by the license holder.
13-20 (b) The department by rule shall adopt guidelines to allow a
13-21 representative of the license holder to perform functions of the
13-22 license holder.
13-23 (c) The department by rule may adopt additional requirements
13-24 for the issuance of a license and for the denial of an application
13-25 for a license or renewal of a license. The rules adopted by the
14-1 department shall be designed to protect the public health, safety,
14-2 and welfare and the proper operation of liquefied petroleum gas
14-3 meters.
14-4 Sec. 13.306. DENIAL, REVOCATION, MODIFICATION, OR SUSPENSION
14-5 OF LICENSE. (a) The department may refuse to issue a license for
14-6 inspecting or testing of liquefied gas meters if the applicant
14-7 fails to comply with this subchapter.
14-8 (b) The department shall revoke, modify, or suspend a
14-9 license, assess an administrative penalty, place on probation a
14-10 person whose license has been suspended, or reprimand a licensee if
14-11 the licensee fails to comply with this subchapter or a rule adopted
14-12 by the department under this subchapter.
14-13 (c) If a license suspension is probated, the department may
14-14 require the person to:
14-15 (1) report regularly to the department on matters that
14-16 are the basis of the probation;
14-17 (2) limit practice to the areas prescribed by the
14-18 department; or
14-19 (3) continue or renew professional education until the
14-20 person attains a degree of skill satisfactory to the department in
14-21 those areas that are the basis of the probation.
14-22 (d) If the department proposed to deny a person's
14-23 application for a license for inspecting or testing of liquefied
14-24 gas meters or to revoke, modify, or suspend a person's license, the
14-25 person is entitled to a hearing before a hearings officer
15-1 designated by the department. The decision of the department is
15-2 appealable in the same manner as provided for contested cases under
15-3 the Administrative Procedure and Texas Register Act (Article
15-4 6252-13a, Vernon's Texas Civil Statutes).
15-5 Sec. 13.307. CIVIL PENALTY; INJUNCTION. (a) A person who
15-6 violates this subchapter or a rule adopted under this subchapter is
15-7 liable to the state for a civil penalty of not less than $250 nor
15-8 more than $10,000 for each violation. Each day a violation
15-9 continues may be considered a separate violation for purposes of a
15-10 civil penalty assessment.
15-11 (b) On request of the department, the attorney general or
15-12 the county attorney or district attorney of the county in which the
15-13 violation is alleged to have occurred shall file suit to collect
15-14 the penalty.
15-15 (c) A civil penalty collected under this section shall be
15-16 deposited in the state treasury to the credit of the general
15-17 revenue fund. All civil penalties recovered in suits first
15-18 instituted by a local government or governments under this section
15-19 shall be equally divided between the State of Texas and the local
15-20 government or governments with 50 percent of the recovery to be
15-21 paid to the general revenue fund and the other 50 percent equally
15-22 to the local government or governments first instituting the suit.
15-23 (d) The department is entitled to appropriate injunctive
15-24 relief to prevent or abate a violation of this subchapter or a rule
15-25 adopted under this subchapter. On request of the department, the
16-1 attorney general or the county or district attorney of the county
16-2 in which the alleged violation is threatened or is occurring shall
16-3 file suit for the injunctive relief. Venue is in the county in
16-4 which the alleged violation is threatened or is occurring.
16-5 Sec. 13.308. CRIMINAL PENALTY. (a) An individual commits
16-6 an offense if the individual is required to be licensed under this
16-7 subchapter, is not licensed under this subchapter, and performs or
16-8 offers to perform an inspection or test on a liquefied petroleum
16-9 gas meter for compensation.
16-10 (b) An offense under this section is a Class B misdemeanor.
16-11 SECTION 10. Section 12.024(a), Agriculture Code, is amended
16-12 to read as follows:
16-13 (a) This section is applicable only to a renewal fee under
16-14 Section 13.304, 14.005, 71.043, 71.057, 75.004, 76.044, 76.073,
16-15 76.113, or 132.025 of this code.
16-16 SECTION 11. This Act takes effect on September 1, 1993.
16-17 SECTION 12. The importance of this legislation and the
16-18 crowded condition of the calendars in both houses create an
16-19 emergency and an imperative public necessity that the
16-20 constitutional rule requiring bills to be read on three several
16-21 days in each house be suspended, and this rule is hereby suspended.