1-1 By: Kuempel (Senate Sponsor - Armbrister) H.B. No. 2007
1-2 (In the Senate - Received from the House May 5, 1993;
1-3 May 6, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 14, 1993, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; May 14, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the regulation of liquefied petroleum gas.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Section 113.002(13), Natural Resources Code, is
1-24 amended to read as follows:
1-25 (13) "Person" means any individual, partnership, firm,
1-26 corporation, association, or any other business entity, a state
1-27 agency or institution, county, municipality, school district, or
1-28 other governmental subdivision.
1-29 SECTION 2. Section 113.003(a), Natural Resources Code, is
1-30 amended to read as follows:
1-31 (a) None of the provisions of this chapter apply to:
1-32 (1) the production, refining, or manufacture of LPG;
1-33 (2) the storage, sale, or transportation of LPG by
1-34 pipeline or railroad tank car by a pipeline company, producer,
1-35 refiner, or manufacturer;
1-36 (3) equipment used by a pipeline company, producer,
1-37 refiner, or manufacturer in a producing, refining, or manufacturing
1-38 process or in the storage, sale, or transportation by pipeline or
1-39 railroad tank car;
1-40 (4) any deliveries of LPG to another person at the
1-41 place of production, refining, or manufacturing;
1-42 (5) underground storage facilities other than LP-gas
1-43 containers designed for underground use; or
1-44 (6) any LP-gas container having a water capacity of
1-45 16.4 ounces or less, or to any LP-gas piping system or appliance
1-46 attached or connected to such container<; or>
1-47 <(7) an original manufacturer of a new motor vehicle
1-48 powered by LPG or a contractor of such a manufacturer who produces
1-49 a new LPG-powered vehicle>.
1-50 SECTION 3. Section 113.081, Natural Resources Code, is
1-51 amended by adding Subsections (f) and (g) to read as follows:
1-52 (f) No license is required by an original manufacturer of a
1-53 new motor vehicle powered by LPG or subcontractor of such a
1-54 manufacturer who produces a new LPG-powered vehicle for the
1-55 manufacturer.
1-56 (g) The commission by rule may establish reasonable
1-57 conditions for licensing and exemptions from license requirements
1-58 for a state agency or institution, county, municipality, school
1-59 district, or other governmental subdivision.
1-60 SECTION 4. Section 113.082, Natural Resources Code, is
1-61 amended to read as follows:
1-62 Sec. 113.082. Categories of Licensee; Fees. A prospective
1-63 licensee in LPG may apply to the LPG division for a license to
1-64 engage in any one or more of the following categories:
1-65 (A) manufacturers/fabricators: the manufacture,
1-66 fabrication, assembly, repair, installation, subframing, testing,
1-67 and sale of LPG containers, including LPG motor or mobile fuel
1-68 containers and systems, and the repair and installation of
2-1 transport and transfer systems; and the category "A" application
2-2 and original license fee is an amount not to exceed $1,000 as
2-3 determined by the commission; the annual renewal license fee is an
2-4 amount not to exceed $600 as determined by the commission;
2-5 (B) transport outfitters: the subframing, testing,
2-6 and sale of LPG transport containers, the testing of LPG storage
2-7 containers, the installation, testing, and sale of LPG motor or
2-8 mobile fuel containers and systems, and the installation and repair
2-9 of transport systems, and motor or mobile fuel systems; the
2-10 category "B" application and original license fee is an amount not
2-11 to exceed $400 as determined by the commission; the annual renewal
2-12 license fee is an amount not to exceed $200 as determined by the
2-13 commission;
2-14 (C) carriers: the transportation of LPG by transport,
2-15 including the loading and unloading of LPG, and the installation
2-16 and repair of transport systems; the category "C" application and
2-17 original license fee is an amount not to exceed $1,000 as
2-18 determined by the commission; the annual renewal license fee is an
2-19 amount not to exceed $300 as determined by the commission;
2-20 (D) general installers and repairmen: the sale,
2-21 service, and installation of containers, excluding motor fuel
2-22 containers, and the service, installation, and repair of piping,
2-23 certain appliances as defined by rule, excluding recreational
2-24 vehicle appliances and LPG systems, excluding motor fuel and
2-25 recreational vehicle systems; the category "D" application and
2-26 original license fee is an amount not to exceed $100 as determined
2-27 by the commission; the annual renewal license fee is an amount not
2-28 to exceed $70 as determined by the commission;
2-29 (E) retail and wholesale dealers: the storage, sale,
2-30 transportation, and distribution of LPG at retail and wholesale,
2-31 and all other activities included in this section except the
2-32 manufacture, fabrication, assembly, repair, subframing, and testing
2-33 of LPG containers; the category "E" application and original
2-34 license fee is an amount not to exceed $750 as determined by the
2-35 commission; the annual renewal license fee is an amount not to
2-36 exceed $300 as determined by the commission;
2-37 (F) cylinder exchanges: the operation of a
2-38 cylinder-filling and container exchange dealership, including
2-39 cylinder filling, the sale of LPG in cylinders, and the replacement
2-40 of a cylinder valve; the category "F" application and original
2-41 license fee is an amount not to exceed $100 as determined by the
2-42 commission; the annual renewal license fee is an amount not to
2-43 exceed $50 as determined by the commission;
2-44 (G) service station: the operation of an LPG service
2-45 station filling ASME containers designed for motor and mobile fuel;
2-46 the category "G" application and original license fee is an amount
2-47 not to exceed $100 as determined by the commission; the annual
2-48 renewal license fee is an amount not to exceed $50 as determined by
2-49 the commission;
2-50 (H) cylinder dealers: the transportation and sale of
2-51 LPG in cylinders; the category "H" application and original license
2-52 fee is an amount not to exceed $1,000 as determined by the
2-53 commission; the annual renewal license fee is an amount not to
2-54 exceed $300 as determined by the commission;
2-55 (I) service station and cylinder exchanges: any
2-56 service station and cylinder activity set out in categories "F" and
2-57 "G" of this section; the category "I" application and original
2-58 license fee is an amount not to exceed $150 as determined by the
2-59 commission; the annual renewal license fee is an amount not to
2-60 exceed $70 as determined by the commission;
2-61 (J) service station and cylinder dealerships: the
2-62 operation of a cylinder-filling and container-exchange dealership,
2-63 including cylinder filling and the sale, transportation,
2-64 installation, and connection of LPG in cylinders, the replacement
2-65 of cylinder valves, and the operation of an LPG service station as
2-66 set out in category "G"; the category "J" application and original
2-67 license fee is an amount not to exceed $1,000 as determined by the
2-68 commission; the annual renewal license fee is an amount not to
2-69 exceed $300 as determined by the commission;
2-70 (K) distribution system: the sale and distribution of
3-1 LPG through mains or pipes and the installation and repair of LPG
3-2 systems; the category "K" application and original license fee is
3-3 an amount not to exceed $1,000 as determined by the commission; the
3-4 annual renewal license fee is an amount not to exceed $300 as
3-5 determined by the commission;
3-6 (L) carburetion: the sale and installation of LPG
3-7 motor or mobile fuel containers, and the sale and installation of
3-8 LPG motor fuel systems; application and original license fee is an
3-9 amount not to exceed $100 as determined by the commission; annual
3-10 renewal license fee is an amount not to exceed $50 as determined by
3-11 the commission;
3-12 (M) recreational vehicle installers and repairmen:
3-13 the sale, service, and installation of recreational vehicle
3-14 containers, and the installation, repair, and service of
3-15 recreational vehicle appliances, piping, and LPG systems, including
3-16 recreational vehicle motor or mobile fuel systems and containers;
3-17 the category "M" application and original license fee is an amount
3-18 not to exceed $100 as determined by the commission; the annual
3-19 renewal license fee is an amount not to exceed $70 as determined by
3-20 the commission;
3-21 (N) manufactured housing installers and repairmen:
3-22 the service and installation of containers that supply fuel to
3-23 manufactured housing, and the installation, repair, and service of
3-24 appliances and piping systems for manufactured housing; the
3-25 category "N" application and original license fee is an amount not
3-26 to exceed $100 as determined by the commission; the annual renewal
3-27 license fee is an amount not to exceed $70 as determined by the
3-28 commission;
3-29 (O) testing laboratory: the testing of an LP-gas
3-30 container, LP-gas motor fuel systems or mobile fuel systems,
3-31 transfer systems, and transport systems for the purpose of
3-32 determining the safety of the container or systems for LP-gas
3-33 service, including the necessary installation, disconnection,
3-34 reconnecting, testing, and repair <and reconnecting> of LPG motor
3-35 fuel systems or mobile fuel systems, transfer systems, and
3-36 transport systems involved in the testing of containers; the<.
3-37 The> category "O" application and original license fee is an amount
3-38 not to exceed $400 as determined by the commission; the annual
3-39 renewal license fee is an amount not to exceed $100 as determined
3-40 by the commission. A person registered under Section 113.135 on
3-41 the effective date of this subsection has one year from the
3-42 effective date of this subsection to apply for a license under this
3-43 section.
3-44 SECTION 5. Section 113.093(g), Natural Resources Code, is
3-45 amended to read as follows:
3-46 (g) At least 15 <30> days before the expiration of a
3-47 person's license the commission shall notify the person in writing
3-48 of the impending license expiration and shall attempt to obtain
3-49 from the person a signed receipt confirming receipt of the notice.
3-50 SECTION 6. Section 113.097, Natural Resources Code, is
3-51 amended to read as follows:
3-52 Sec. 113.097. INSURANCE REQUIREMENT. (a) The commission
3-53 shall not issue a license authorizing activities under Section
3-54 113.082 of this code or renew an existing license unless the
3-55 applicant for license or license renewal provides proof of required
3-56 insurance coverage with an insurance carrier authorized to do
3-57 business in this state as evidenced by a certificate of authority
3-58 having been issued to the carrier by the State Board of Insurance
3-59 or, if the applicant is unable to obtain coverage from such a
3-60 carrier, provides, on approval of the commission, proof of required
3-61 insurance coverage issued by a surplus lines insurer that meets the
3-62 requirements of Article 1.14-2, Insurance Code, and rules adopted
3-63 by the State Board of Insurance under that article.
3-64 (b) A licensee shall not perform any licensed activity under
3-65 Section 113.082 of this code unless the insurance coverage required
3-66 by this chapter is in effect.
3-67 (c) Except as provided in Section 113.099 of this code, the
3-68 types and amounts of insurance provided in Subsections (d) through
3-69 (i) <(g)> of this section are required while engaged in any of the
3-70 activities set forth in Section 113.082 of this code or any
4-1 activity incidental thereto.
4-2 (d) Each <A> category "C," "E," "H," or "J" licensee must
4-3 carry motor vehicle bodily injury and property damage liability
4-4 coverage on each motor vehicle, including trailers and
4-5 semitrailers, used to transport LP-gas. The commission shall
4-6 establish by rule a reasonable amount of coverage to be maintained,
4-7 except that coverage shall not be less than the amounts required as
4-8 proof of financial responsibility under the Texas Motor Vehicle
4-9 Safety-Responsibility Act, as amended (Article 6701h, Vernon's
4-10 Texas Civil Statutes).
4-11 (e) All licensees must carry general liability coverage in a
4-12 reasonable amount, based on the type or types of licensed
4-13 activities, which shall be established by commission rule.
4-14 (f) All licensees must acquire and maintain appropriate
4-15 <carry> workers' compensation<,> or coverage for its employees
4-16 under policies of work-related accident, disability, and health
4-17 insurance, including coverage for death benefits, from an insurance
4-18 carrier authorized to provide coverage in this state, in the
4-19 amounts required by the commission <including employer's liability
4-20 coverage>.
4-21 (g) Notwithstanding Subsection (f) of this section, a state
4-22 agency or institution, county, municipality, school district, or
4-23 other governmental subdivision may submit appropriate evidence of
4-24 workers' compensation coverage by self-insurance if permitted by
4-25 the state workers' compensation act. The commission may require
4-26 forms of evidence of coverage for this purpose other than that
4-27 required under Section 113.098 of this code.
4-28 (h) A category "A," "B," "C," "E," or "O" licensee must
4-29 carry completed operations and products liability insurance in a
4-30 reasonable amount, based on the type or types of licensed
4-31 activities, which shall be established by commission rule.
4-32 (i) The commission by rule may exempt or provide reasonable
4-33 alternatives to the insurance requirements set forth in Subsections
4-34 (a) through (e) and (h) of this section for a state agency or
4-35 institution, county, municipality, school district, or other
4-36 governmental subdivision.
4-37 SECTION 7. Section 113.099(c), Natural Resources Code, is
4-38 amended to read as follows:
4-39 (c) A licensee or applicant for license that does not employ
4-40 or contemplate the hiring of an employee or employees to be engaged
4-41 in LPG-related activities in this state may make and file with the
4-42 division a statement to that effect in lieu of filing evidence of
4-43 coverage <a certificate> of workers' compensation or other
4-44 alternative form of coverage as provided in this subchapter
4-45 <insurance including employer's liability insurance>.
4-46 SECTION 8. Section 113.131(d), Natural Resources Code, is
4-47 amended to read as follows:
4-48 (d) The commission, by rule, shall establish reasonable,
4-49 nonrefundable registration and transfer fees for each LP-gas cargo
4-50 trailer, semitrailer, bobtail, and cylinder delivery unit
4-51 registered or transferred.
4-52 (1) The registration fee established by the commission
4-53 shall not be less than $100, nor more than $300.
4-54 (2) The transfer fee established by the commission
4-55 shall not be less than $25, nor more than $100. <The nonrefundable
4-56 registration fee for each unit is $150 a year for any LPG cargo
4-57 trailer or semitrailer and $100 a year for any bobtail or
4-58 cylinder-delivery unit.>
4-59 SECTION 9. This Act takes effect on September 1, 1993.
4-60 SECTION 10. The importance of this legislation and the
4-61 crowded condition of the calendars in both houses create an
4-62 emergency and an imperative public necessity that the
4-63 constitutional rule requiring bills to be read on three several
4-64 days in each house be suspended, and this rule is hereby suspended.
4-65 * * * * *
4-66 Austin,
4-67 Texas
4-68 May 14, 1993
4-69 Hon. Bob Bullock
4-70 President of the Senate
5-1 Sir:
5-2 We, your Committee on Natural Resources to which was referred H.B.
5-3 No. 2007, have had the same under consideration, and I am
5-4 instructed to report it back to the Senate with the recommendation
5-5 that it do pass and be printed.
5-6 Sims,
5-7 Chairman
5-8 * * * * *
5-9 WITNESSES
5-10 FOR AGAINST ON
5-11 ___________________________________________________________________
5-12 Name: John Danks x
5-13 Representing: Texas Propane Gas Assoc.
5-14 City: Austin
5-15 -------------------------------------------------------------------
5-16 Name: Johnnie B. Rogers, Jr. x
5-17 Representing: Texas Propane Assoc.
5-18 City: Austin
5-19 -------------------------------------------------------------------
5-20 Name: Thomas Petru x
5-21 Representing: Railroad Commission
5-22 City: Austin
5-23 -------------------------------------------------------------------