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
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   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
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