1-1 By: Armbrister S.B. No. 575
1-2 (In the Senate - Filed March 2, 1993; March 3, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 May 4, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; May 4, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 575 By: Armbrister
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the regulation of liquefied petroleum gas.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Subdivision (13), Section 113.002, Natural
1-26 Resources Code, is amended to read as follows:
1-27 (13) "Person" means any individual, partnership, firm,
1-28 corporation, association, or any other business entity, a state
1-29 agency or institution, county, municipality, school district, or
1-30 other governmental subdivision.
1-31 SECTION 2. Subsection (a), Section 113.003, Natural
1-32 Resources Code, is amended to read as follows:
1-33 (a) None of the provisions of this chapter apply to:
1-34 (1) the production, refining, or manufacture of LPG;
1-35 (2) the storage, sale, or transportation of LPG by
1-36 pipeline or railroad tank car by a pipeline company, producer,
1-37 refiner, or manufacturer;
1-38 (3) equipment used by a pipeline company, producer,
1-39 refiner, or manufacturer in a producing, refining, or manufacturing
1-40 process or in the storage, sale, or transportation by pipeline or
1-41 railroad tank car;
1-42 (4) any deliveries of LPG to another person at the
1-43 place of production, refining, or manufacturing;
1-44 (5) underground storage facilities other than LP-gas
1-45 containers designed for underground use; or
1-46 (6) any LP-gas container having a water capacity of
1-47 16.4 ounces or less, or to any LP-gas piping system or appliance
1-48 attached or connected to such container<; or>
1-49 <(7) an original manufacturer of a new motor vehicle
1-50 powered by LPG or a contractor of such a manufacturer who produces
1-51 a new LPG-powered vehicle>.
1-52 SECTION 3. Section 113.081, Natural Resources Code, is
1-53 amended by adding Subsections (f) and (g) to read as follows:
1-54 (f) No license is required by an original manufacturer of a
1-55 new motor vehicle powered by LPG or a subcontractor of such a
1-56 manufacturer who produces a new LPG-powered vehicle for the
1-57 manufacturer.
1-58 (g) The commission by rule may establish reasonable
1-59 conditions for licensing and exemptions from license requirements
1-60 for a state agency or institution, county, municipality, school
1-61 district, or other governmental subdivision.
1-62 SECTION 4. Section 113.082, Natural Resources Code, is
1-63 amended to read as follows:
1-64 Sec. 113.082. Categories of Licensee; Fees. A prospective
1-65 licensee in LPG may apply to the LPG division for a license to
1-66 engage in any one or more of the following categories:
1-67 (A) manufacturers/fabricators: the manufacture,
1-68 fabrication, assembly, repair, installation, subframing, testing,
2-1 and sale of LPG containers, including LPG motor or mobile fuel
2-2 containers and systems, and the repair and installation of
2-3 transport and transfer systems; and the category "A" application
2-4 and original license fee is an amount not to exceed $1,000 as
2-5 determined by the commission; the annual renewal license fee is an
2-6 amount not to exceed $600 as determined by the commission;
2-7 (B) transport outfitters: the subframing, testing,
2-8 and sale of LPG transport containers, the testing of LPG storage
2-9 containers, the installation, testing, and sale of LPG motor or
2-10 mobile fuel containers and systems, and the installation and repair
2-11 of transport systems, and motor or mobile fuel systems; the
2-12 category "B" application and original license fee is an amount not
2-13 to exceed $400 as determined by the commission; the annual renewal
2-14 license fee is an amount not to exceed $200 as determined by the
2-15 commission;
2-16 (C) carriers: the transportation of LPG by transport,
2-17 including the loading and unloading of LPG, and the installation
2-18 and repair of transport systems; the category "C" application and
2-19 original license fee is an amount not to exceed $1,000 as
2-20 determined by the commission; the annual renewal license fee is an
2-21 amount not to exceed $300 as determined by the commission;
2-22 (D) general installers and repairmen: the sale,
2-23 service, and installation of containers, excluding motor fuel
2-24 containers, and the service, installation, and repair of piping,
2-25 certain appliances as defined by rule, excluding recreational
2-26 vehicle appliances and LPG systems, excluding motor fuel and
2-27 recreational vehicle systems; the category "D" application and
2-28 original license fee is an amount not to exceed $100 as determined
2-29 by the commission; the annual renewal license fee is an amount not
2-30 to exceed $70 as determined by the commission;
2-31 (E) retail and wholesale dealers: the storage, sale,
2-32 transportation, and distribution of LPG at retail and wholesale,
2-33 and all other activities included in this section except the
2-34 manufacture, fabrication, assembly, repair, subframing, and testing
2-35 of LPG containers; the category "E" application and original
2-36 license fee is an amount not to exceed $750 as determined by the
2-37 commission; the annual renewal license fee is an amount not to
2-38 exceed $300 as determined by the commission;
2-39 (F) cylinder exchanges: the operation of a
2-40 cylinder-filling and container exchange dealership, including
2-41 cylinder filling, the sale of LPG in cylinders, and the replacement
2-42 of a cylinder valve; the category "F" application and original
2-43 license fee is an amount not to exceed $100 as determined by the
2-44 commission; the annual renewal license fee is an amount not to
2-45 exceed $50 as determined by the commission;
2-46 (G) service station: the operation of an LPG service
2-47 station filling ASME containers designed for motor and mobile fuel;
2-48 the category "G" application and original license fee is an amount
2-49 not to exceed $100 as determined by the commission; the annual
2-50 renewal license fee is an amount not to exceed $50 as determined by
2-51 the commission;
2-52 (H) cylinder dealers: the transportation and sale of
2-53 LPG in cylinders; the category "H" application and original license
2-54 fee is an amount not to exceed $1,000 as determined by the
2-55 commission; the annual renewal license fee is an amount not to
2-56 exceed $300 as determined by the commission;
2-57 (I) service station and cylinder exchanges: any
2-58 service station and cylinder activity set out in categories "F" and
2-59 "G" of this section; the category "I" application and original
2-60 license fee is an amount not to exceed $150 as determined by the
2-61 commission; the annual renewal license fee is an amount not to
2-62 exceed $70 as determined by the commission;
2-63 (J) service station and cylinder dealerships: the
2-64 operation of a cylinder-filling and container-exchange dealership,
2-65 including cylinder filling and the sale, transportation,
2-66 installation, and connection of LPG in cylinders, the replacement
2-67 of cylinder valves, and the operation of an LPG service station as
2-68 set out in category "G"; the category "J" application and original
2-69 license fee is an amount not to exceed $1,000 as determined by the
2-70 commission; the annual renewal license fee is an amount not to
3-1 exceed $300 as determined by the commission;
3-2 (K) distribution system: the sale and distribution of
3-3 LPG through mains or pipes and the installation and repair of LPG
3-4 systems; the category "K" application and original license fee is
3-5 an amount not to exceed $1,000 as determined by the commission; the
3-6 annual renewal license fee is an amount not to exceed $300 as
3-7 determined by the commission;
3-8 (L) carburetion: the sale and installation of LPG
3-9 motor or mobile fuel containers, and the sale and installation of
3-10 LPG motor fuel systems; application and original license fee is an
3-11 amount not to exceed $100 as determined by the commission; annual
3-12 renewal license fee is an amount not to exceed $50 as determined by
3-13 the commission;
3-14 (M) recreational vehicle installers and repairmen:
3-15 the sale, service, and installation of recreational vehicle
3-16 containers, and the installation, repair, and service of
3-17 recreational vehicle appliances, piping, and LPG systems, including
3-18 recreational vehicle motor or mobile fuel systems and containers;
3-19 the category "M" application and original license fee is an amount
3-20 not to exceed $100 as determined by the commission; the annual
3-21 renewal license fee is an amount not to exceed $70 as determined by
3-22 the commission;
3-23 (N) manufactured housing installers and repairmen:
3-24 the service and installation of containers that supply fuel to
3-25 manufactured housing, and the installation, repair, and service of
3-26 appliances and piping systems for manufactured housing; the
3-27 category "N" application and original license fee is an amount not
3-28 to exceed $100 as determined by the commission; the annual renewal
3-29 license fee is an amount not to exceed $70 as determined by the
3-30 commission;
3-31 (O) testing laboratory: the testing of an LP-gas
3-32 container, LP-gas motor fuel systems or mobile fuel systems,
3-33 transfer systems, and transport systems for the purpose of
3-34 determining the safety of the container or systems for LP-gas
3-35 service, including the necessary installation, disconnection, <and>
3-36 reconnecting, testing, and repair of LPG motor fuel systems or
3-37 mobile fuel systems, transfer systems, and transport systems
3-38 involved in the testing of containers; the<. The> category "O"
3-39 application and original license fee is an amount not to exceed
3-40 $400 as determined by the commission; the annual renewal license
3-41 fee is an amount not to exceed $100 as determined by the
3-42 commission. A person registered under Section 113.135 on the
3-43 effective date of this subsection has one year from the effective
3-44 date of this subsection to apply for a license under this section.
3-45 SECTION 5. Subsection (g), Section 113.093, Natural
3-46 Resources Code, is amended to read as follows:
3-47 (g) At least 15 <30> days before the expiration of a
3-48 person's license the commission shall notify the person in writing
3-49 of the impending license expiration and shall attempt to obtain
3-50 from the person a signed receipt confirming receipt of the notice.
3-51 SECTION 6. Section 113.097, Natural Resources Code, is
3-52 amended to read as follows:
3-53 Sec. 113.097. Insurance Requirement. (a) The commission
3-54 shall not issue a license authorizing activities under Section
3-55 113.082 of this code or renew an existing license unless the
3-56 applicant for license or license renewal provides proof of required
3-57 insurance coverage with an insurance carrier authorized to do
3-58 business in this state as evidenced by a certificate of authority
3-59 having been issued to the carrier by the State Board of Insurance
3-60 or, if the applicant is unable to obtain coverage from such a
3-61 carrier, provides, on approval of the commission, proof of required
3-62 insurance coverage issued by a surplus lines insurer that meets the
3-63 requirements of Article 1.14-2, Insurance Code, and rules adopted
3-64 by the State Board of Insurance under that article.
3-65 (b) A licensee shall not perform any licensed activity under
3-66 Section 113.082 of this code unless the insurance coverage required
3-67 by this chapter is in effect.
3-68 (c) Except as provided in Section 113.099 of this code, the
3-69 types and amounts of insurance provided in Subsections (d) through
3-70 (i) <(g)> of this section are required while engaged in any of the
4-1 activities set forth in Section 113.082 of this code or any
4-2 activity incidental thereto.
4-3 (d) Each <A> category "C," "E," "H," or "J" licensee must
4-4 carry motor vehicle bodily injury and property damage liability
4-5 coverage on each motor vehicle, including trailers and
4-6 semitrailers, used to transport LP-gas. The commission shall
4-7 establish by rule a reasonable amount of coverage to be maintained,
4-8 except that coverage shall not be less than the amounts required as
4-9 proof of financial responsibility under the Texas Motor Vehicle
4-10 Safety-Responsibility Act, as amended (Article 6701h, Vernon's
4-11 Texas Civil Statutes).
4-12 (e) All licensees must carry general liability coverage in a
4-13 reasonable amount, based on the type or types of licensed
4-14 activities, which shall be established by commission rule.
4-15 (f) All licensees must acquire and maintain appropriate
4-16 <carry> workers' compensation or coverage for its employees under
4-17 policies of work-related accident, disability, and health
4-18 insurance, including coverage for death benefits, from an insurance
4-19 carrier authorized to provide coverage in this state, in the
4-20 amounts required by the commission<, including employer's liability
4-21 coverage>.
4-22 (g) Notwithstanding Subsection (f) of this section, a state
4-23 agency or institution, county, municipality, school district, or
4-24 other governmental subdivision may submit appropriate evidence of
4-25 workers' compensation coverage by self-insurance if permitted by
4-26 the Texas Workers' Compensation Act (Article 8308-1.01 et seq.,
4-27 Vernon's Texas Civil Statutes). The commission may require forms
4-28 of evidence of coverage for this purpose other than that required
4-29 under Section 113.098 of this code.
4-30 (h) A category "A," "B," "C," "E," or "O" licensee must
4-31 carry completed operations and products liability insurance in a
4-32 reasonable amount, based on the type or types of licensed
4-33 activities, which shall be established by commission rule.
4-34 (i) The commission by rule may exempt or provide reasonable
4-35 alternatives to the insurance requirements set forth in Subsections
4-36 (a) through (e) and (h) of this section for a state agency or
4-37 institution, county, municipality, school district, or other
4-38 governmental subdivision.
4-39 SECTION 7. Subsection (c), Section 113.099, Natural
4-40 Resources Code, is amended to read as follows:
4-41 (c) A licensee or applicant for license that does not employ
4-42 or contemplate the hiring of an employee or employees to be engaged
4-43 in LPG-related activities in this state may make and file with the
4-44 division a statement to that effect in lieu of filing evidence of
4-45 coverage <a certificate> of workers' compensation or other
4-46 alternative form of coverage as provided in this subchapter
4-47 <insurance including employer's liability insurance>.
4-48 SECTION 8. Subsection (d), Section 113.131, Natural
4-49 Resources Code, is amended to read as follows:
4-50 (d)(1) The commission by rule shall establish reasonable,
4-51 nonrefundable registration and transfer fees for each LP-gas cargo
4-52 trailer, semitrailer, bobtail, and cylinder-delivery unit
4-53 registered or transferred.
4-54 (2) The registration fee established by the commission
4-55 shall not be less than $100 nor more than $300.
4-56 (3) The transfer fee established by the commission
4-57 shall not be less than $25 nor more than $100 <nonrefundable
4-58 registration fee for each unit is $150 a year for any LPG cargo
4-59 trailer or semitrailer and $100 a year for any bobtail or
4-60 cylinder-delivery unit>.
4-61 SECTION 9. This Act takes effect September 1, 1993.
4-62 SECTION 10. The importance of this legislation and the
4-63 crowded condition of the calendars in both houses create an
4-64 emergency and an imperative public necessity that the
4-65 constitutional rule requiring bills to be read on three several
4-66 days in each house be suspended, and this rule is hereby suspended.
4-67 * * * * *
4-68 Austin,
4-69 Texas
4-70 May 4, 1993
5-1 Hon. Bob Bullock
5-2 President of the Senate
5-3 Sir:
5-4 We, your Committee on Natural Resources to which was referred S.B.
5-5 No. 575, have had the same under consideration, and I am instructed
5-6 to report it back to the Senate with the recommendation that it do
5-7 not pass, but that the Committee Substitute adopted in lieu thereof
5-8 do pass and be printed.
5-9 Sims,
5-10 Chairman
5-11 * * * * *
5-12 WITNESSES
5-13 No witnesses appeared on S.B. No. 575.