BILL ANALYSIS
C.S.H.B. 1226
By: Torres
March 20, 1995
Committee Report (Substituted)
BACKGROUND
Chapter 113 grants broad authority to the Railroad Commission to
adopt rules and standards relating to any and all aspects and
phases of the LPG industry that will protect the health, welfare
and safety of the general public. Such authority includes license
requirements in order to conduct LPG activities. Some provisions
in Chapter 113, however, are inconsistent or unclear, leading to
uncertainty as to the scope of current law. In addition, current
law does not extend sufficient flexibility to the commission in
certain areas (e.g., examinations, insurance requirements) to
determine minimum requirements that reflect the nature of the
activities of particular licensees.
PURPOSE
This legislation would amend Chapter 113, Natural Resources Code,
to clarify the regulatory provisions relating to LPG industry. The
amendments provide:
(1) resolution of conflicts in the Chapter relating to exceptions
to licensing requirements for containers under one gallon;
(2) clarification that Chapter 113 applies to railcar loading
racks, with certain exceptions;
(3) clarification that LPG regulations apply to container
manufacturers and fabricators;
(4) clarification that the category F and I licenses apply to
cylinder filling or exchange activities or both;
(5) change in the term carburetion to the term engine fuel in the
category L license provisions. This change encompasses both
carburetion and fuel-injection systems used today;
(6) authority to require technical competency examination by the
Commission;
(8) examination reciprocity to other states' licensees;
(9) clarification that completed operations or products liability
insurance, or both may be required, as determined by the
Commission, for certain licensees;
(10) authority to exempt or provide reasonable alternatives to
insurance requirements for master and journeyman plumbers and
air-conditioning and refrigeration contractors; and,
(11) non-substantive technical and grammatical corrections.
RULEMAKING AUTHORITY
This bill grants additional rulemaking authority in SECTIONS 5 and
6 of the bill.
SECTION BY SECTION ANALYSIS
SECTION 1: Amends Section 113.003, Natural Resources Code, relating
to exemptions from this Chapter as follows:
Subsection (a)(6) is amended to delete reference to containers
having a water capacity of 16.4 ounces or less and replaces the
water capacity amount with one gallon or less.
Subsection (a)(7) is added to exempt a railcar loading rack
used by a pipeline company, producer, refiner, or manufacturer
from the provisions of this chapter.
SECTION 2: Amends Section 113.081, relating to license requirements
as follows:
Subsection (b) deletes language that exempts containers of one
gallon water capacity or less from license requirements.
(Conforming change to that made in SECTION 1 of the bill.)
Subsections (d) and (e) are amended to delete language that
applies Sections 113.097 (insurance requirements), 113.098
(insurance conditions), and 113.099 (statements in lieu of
insurance certificates) to journeymen or master plumbers or
air conditioning and refrigeration contractors.
SECTION 3: Amends Section 113.082, relating to categories of
licenses as follows:
Subsection (A) is amended to clarify that this category of
license applies to "container" manufacturers/fabricators.
Subsections (F) and (I) are amended to include cylinder
filling and exchange under category "F" and "I" licenses.
Subsection (J) is amended to include cylinder-exchange under
category "J" licenses.
Subsection (L) is amended to change the designation of this
category of license from "carburetion" to "engine fuel."
Subsection (O) is amended to delete the requirement that a
person registered under Section 113.135 apply for a license
within one year from the effective date of the subsection.
(Section 113.135 was repealed by Acts 1991, 72nd Leg., ch.
725, subsection 12, effective Aug. 26, 1991 and is therefor no
longer necessary).
SECTION 4: Amends Subsection 113.087(k), relating to course of
instruction, examination, and seminar requirements by authorizing
the commission to require an examination for technical competence.
SECTION 5: Amends Section 113.095, relating to license reciprocity
between Texas and other states, by authorizing the commission by
rule to waive examination requirements for an applicant holding a
currently valid examination certification from another state with
substantially equivalent requirements.
SECTION 6: Amends Section 113.097(h), relating to insurance
requirements, by granting the commission authority by rule to
require affected licensees to carry either "completed operations
insurance," or "products liability insurance," or both.
This section also amends Section 113.097 by adding Subsection (j)
which authorizes the commission by rule to exempt or provide
reasonable alternatives to insurance requirements for master and
journeyman plumbers and air conditioning and refrigeration
contractors performing LPG work, since these individuals are
already required to carry certain limits of insurance coverage by
the agencies that license them.
SECTION 7. Amends Section 113.099(d), relating to statements in
lieu of certificates of insurance to allow eligible licensees to
substitute a statement of non-activity in LP-gas operations in lieu
of "completed operations" or "products liability insurance," or
both.
SECTION 8. Effective Date: September 1, 1995.
SECTION 9. Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The original bill amended Section 113.097, Natural Resources Code,
twice. The amendments were contained in Sections 6 and 7 of the
original bill. In the Committee Substitute, because the amendments
were to one section of Natural Resources Code, they were combined
into one section of the bill (Section 6).
Additionally, the original bill exempted category "O" licensees
from maintaining completed operations and products liability
insurance. The substitute leaves the insurance requirements intact.
Also, the original bill contained several typographical and
drafting errors which were corrected in the substitute.
SUMMARY OF COMMITTEE ACTION
H.B. 1226 was considered by the Energy Resources Committee in a
public hearing on March 20, 1995. The committee considered a
complete substitute for the bill. One amendment was offered to the
substitute. The amendment was adopted without objection. The
substitute, as amended, was adopted without objection. (The chair
directed the staff to incorporate the amendments into the
substitute.) Thomas D. Petru of the Railroad Commission of Texas
testified neutrally on the bill. No one testified for or against
the bill. The motion to report the bill, as substituted, to the
full House failed by a record vote of 1 aye, 6 nays, 1 PNV, and 1
absent. The vote by which the substitute to H.B. 1226 was reported
to the House was reconsidered by a record vote of 8 ayes, 0 nays,
0 PNV, and 1 absent. The bill was reported favorably as substituted
with the recommendation that it do pass and be printed and be sent
to the Committee on Local and Consent Calendars, by a record vote
of 8 ayes, 0 nays, 0 PNV, and 1 absent.