AN ACT

 1-1     relating to the classification of certain liquefied petroleum gas

 1-2     activities; insurance requirements for liquefied petroleum gas,

 1-3     compressed natural gas, and liquefied natural gas licensees; and

 1-4     registration and transfer fees for liquefied petroleum gas,

 1-5     compressed natural gas, and liquefied natural gas transportation

 1-6     vehicles.

 1-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-8           SECTION 1.  Section 113.002, Natural Resources Code, is

 1-9     amended by adding Subdivision (21) to read as follows:

1-10                 (21)  "Portable cylinder" means a receptacle

1-11     constructed to United States Department of Transportation

1-12     specifications, designed to be moved readily, and used for the

1-13     storage of LPG for connection to an appliance or an LPG system.

1-14     The term does not include a cylinder designed for use on a forklift

1-15     or similar equipment.

1-16           SECTION 2.  Section 113.082, Natural Resources Code, is

1-17     amended to read as follows:

1-18           Sec. 113.082.  Categories of Licensee; Fees.  A prospective

1-19     licensee in LPG may apply to the LPG division for a license to

1-20     engage in any one or more of the following categories:

1-21                       (A)  container manufacturers/fabricators:  the

1-22     manufacture, fabrication, assembly, repair, installation,

1-23     subframing, testing, and sale of LPG containers, including LPG

 2-1     motor or mobile fuel containers and systems, and the repair and

 2-2     installation of transport and transfer systems; and the category

 2-3     "A" application and original license fee is an amount not to exceed

 2-4     $1,000 as determined by the commission; the annual renewal license

 2-5     fee is an amount not to exceed $600 as determined by the

 2-6     commission;

 2-7                       (B)  transport outfitters:  the subframing,

 2-8     testing, and sale of LPG transport containers, the testing of LPG

 2-9     storage containers, the installation, testing, and sale of LPG

2-10     motor or mobile fuel containers and systems, and the installation

2-11     and repair of transport systems, and motor or mobile fuel systems;

2-12     the category "B" application and original license fee is an amount

2-13     not to exceed $400 as determined by the commission; the annual

2-14     renewal license fee is an amount not to exceed $200 as determined

2-15     by the commission;

2-16                       (C)  carriers:  the transportation of LPG by

2-17     transport, including the loading and unloading of LPG, and the

2-18     installation and repair of transport systems; the category "C"

2-19     application and original license fee is an amount not to exceed

2-20     $1,000 as determined by the commission; the annual renewal license

2-21     fee is an amount not to exceed $300 as determined by the

2-22     commission;

2-23                       (D)  general installers and repairmen:  the sale,

2-24     service, and installation of containers, excluding motor fuel

2-25     containers, and the service, installation, and repair of piping,

 3-1     certain appliances as defined by rule, excluding recreational

 3-2     vehicle appliances and LPG systems, excluding motor fuel and

 3-3     recreational vehicle systems; the category "D" application and

 3-4     original license fee is an amount not to exceed $100 as determined

 3-5     by the commission; the annual renewal license fee is an amount not

 3-6     to exceed $70 as determined by the commission;

 3-7                       (E)  retail and wholesale dealers:  the storage,

 3-8     sale, transportation, and distribution of LPG at retail and

 3-9     wholesale, and all other activities included in this section except

3-10     the manufacture, fabrication, assembly, repair, subframing, and

3-11     testing of LPG containers; the category "E" application and

3-12     original license fee is an amount not to exceed $750 as determined

3-13     by the commission; the annual renewal license fee is an amount not

3-14     to exceed $300 as determined by the commission;

3-15                       (F)  cylinder filling [or cylinder exchange]:

3-16     the operation of a cylinder-filling facility [or cylinder-exchange

3-17     dealership], including cylinder filling, the sale of LPG in

3-18     cylinders, and the replacement of a cylinder valve; the category

3-19     "F" application and original license fee is an amount not to exceed

3-20     $100 as determined by the commission; the annual renewal license

3-21     fee is an amount not to exceed $50 as determined by the commission;

3-22                       (G)  service station:  the operation of an LPG

3-23     service station filling ASME containers designed for motor and

3-24     mobile fuel; the category "G" application and original license fee

3-25     is an amount not to exceed $100 as determined by the commission;

 4-1     the annual renewal license fee is an amount not to exceed $50 as

 4-2     determined by the commission;

 4-3                       (H)  cylinder dealers:  the transportation and

 4-4     sale of LPG in cylinders; the category "H" application and original

 4-5     license fee is an amount not to exceed $1,000 as determined by the

 4-6     commission; the annual renewal license fee is an amount not to

 4-7     exceed $300 as determined by the commission;

 4-8                       (I)  service station and cylinder filling [or

 4-9     cylinder exchange]: any service station and cylinder activity set

4-10     out in categories "F" and "G" of this section; the category "I"

4-11     application and original license fee is an amount not to exceed

4-12     $150 as determined by the commission; the annual renewal license

4-13     fee is an amount not to exceed $70 as determined by the commission;

4-14                       (J)  service station and cylinder facilities

4-15     [dealerships]:  the operation of a cylinder-filling facility [or

4-16     cylinder-exchange dealership], including cylinder filling and the

4-17     sale, transportation, installation, and connection of LPG in

4-18     cylinders, the replacement of cylinder valves, and the operation of

4-19     an LPG service station as set out in category "G"; the category "J"

4-20     application and original license fee is an amount not to exceed

4-21     $1,000 as determined by the commission; the annual renewal license

4-22     fee is an amount not to exceed $300 as determined by the

4-23     commission;

4-24                       (K)  distribution system:  the sale and

4-25     distribution of LPG through mains or pipes and the installation and

 5-1     repair of LPG systems; the category "K" application and original

 5-2     license fee is an amount not to exceed $1,000 as determined by the

 5-3     commission; the annual renewal license fee is an amount not to

 5-4     exceed $300 as determined by the commission;

 5-5                       (L)  engine fuel:  the sale and installation of

 5-6     LPG motor or mobile fuel containers, and the sale and installation

 5-7     of LPG motor fuel systems; the category "L" application and

 5-8     original license fee is an amount not to exceed $100 as determined

 5-9     by the commission; the annual renewal license fee is an amount not

5-10     to exceed $50 as determined by the commission;

5-11                       (M)  recreational vehicle installers and

5-12     repairmen:  the sale, service, and installation of recreational

5-13     vehicle containers, and the installation, repair, and service of

5-14     recreational vehicle appliances, piping, and LPG systems, including

5-15     recreational vehicle motor or mobile fuel systems and containers;

5-16     the category "M" application and original license fee is an amount

5-17     not to exceed $100 as determined by the commission; the annual

5-18     renewal license fee is an amount not to exceed $70 as determined by

5-19     the commission;

5-20                       (N)  manufactured housing installers and

5-21     repairmen:  the service and installation of containers that supply

5-22     fuel to manufactured housing, and the installation, repair, and

5-23     service of appliances and piping systems for manufactured housing;

5-24     the category "N" application and original license fee is an amount

5-25     not to exceed $100 as determined by the commission; the annual

 6-1     renewal license fee is an amount not to exceed $70 as determined by

 6-2     the commission;

 6-3                       (O)  testing laboratory:  the testing of an

 6-4     LP-gas container, LP-gas motor fuel systems or mobile fuel systems,

 6-5     transfer systems, and transport systems for the purpose of

 6-6     determining the safety of the container or systems for LP-gas

 6-7     service, including the necessary installation, disconnection,

 6-8     reconnecting, testing, and repair of LPG motor fuel systems or

 6-9     mobile fuel systems, transfer systems, and transport systems

6-10     involved in the testing of containers; the category "O" application

6-11     and original license fee is an amount not to exceed $400 as

6-12     determined by the commission; the annual renewal license fee is an

6-13     amount not to exceed $100 as determined by the commission; or

6-14                       (P)  portable cylinder exchange:  the operation

6-15     of a portable cylinder exchange service, where the sale of LP-gas

6-16     is within a portable cylinder with an LP-gas capacity not to exceed

6-17     21 pounds; the portable cylinders are not filled on site, and no

6-18     other LP-gas activity requiring a license is conducted; the

6-19     category "P" application and original license fee is an amount not

6-20     to exceed $100 as determined by the commission; the annual renewal

6-21     license fee is an amount not to exceed $50 as determined by the

6-22     commission.

6-23           SECTION 3.  Section 113.102, Natural Resources Code, is

6-24     amended to read as follows:

6-25           Sec. 113.102.  PRIOR LICENSES.  All prior LP-gas licenses

 7-1     authorizing portable cylinder exchange activities shall, on an

 7-2     applicant's compliance with the renewal procedure set out in this

 7-3     chapter, be converted to a license identified as category "P".

 7-4     [(a)  Except as provided in Subsection (c) of this section, all

 7-5     prior LP-gas licenses authorizing activities previously defined by

 7-6     this chapter as categories 1 through 12 shall, on an applicant's

 7-7     compliance with the renewal procedure set out in this chapter, be

 7-8     converted to a license identified by category letter as specified

 7-9     in Subsection (b) of this section.]

7-10           [(b)  A category "1" license shall become a category "A"

7-11     license, and a category "4" shall become a category "C"; a "5," a

7-12     "D"; a "6," an "E"; an "8," an "F"; a "9," a "G"; a "10," a "K"; an

7-13     "11," an "H"; an "8" and "9," an "I"; an "8," "9," "11," and "12,"

7-14     a "J"; and an "8," "9," "11," and "5," a "J"; a "7," an "L", as

7-15     those letter categories are defined in Section 113.082 of this

7-16     code.]

7-17           [(c)  Previously issued licenses designated as authorizing

7-18     category "2" or "3" activities shall expire.]

7-19           SECTION 4.  Section 113.097, Natural Resources Code, is

7-20     amended by adding Subsection (k) to read as follows:

7-21           (k)  The commission by rule may allow a licensee to

7-22     self-insure under Subsection (d), (e), or (f) and by rule shall

7-23     establish standards for that self-insurance.

7-24           SECTION 5.  Subsection (d), Section 113.131, Natural

7-25     Resources Code, is amended to read as follows:

 8-1           (d)  The commission, by rule, shall establish reasonable,

 8-2     nonrefundable annual registration and transfer fees for each LP-gas

 8-3     cargo trailer, semitrailer, bobtail, and cylinder-delivery

 8-4     [cylinder delivery] unit registered or transferred as follows:[.]

 8-5                 (1)  the annual [The] registration fee established by

 8-6     the commission shall not be less than $100[,] nor more than $300.

 8-7                 (2)  the annual [The] transfer fee established by the

 8-8     commission shall not be less than $25[,] nor more than $100.

 8-9           SECTION 6.  Subsection (c), Section 116.036, Natural

8-10     Resources Code, is amended to read as follows:

8-11           (c)  The commission shall adopt rules establishing specific

8-12     requirements for insurance coverage under this chapter and evidence

8-13     of such coverage.  The types and amounts of insurance coverage

8-14     required by the commission shall be based on the type and category

8-15     of licensed activity.  The commission by rule may allow a licensee

8-16     to self-insure under Subsection (a) or (e) and by rule shall

8-17     establish standards for that self-insurance.

8-18           SECTION 7.  Subsection (c), Section 116.072, Natural

8-19     Resources Code, is amended to read as follows:

8-20           (c)  The commission by rule shall establish a reasonable,

8-21     nonrefundable annual registration and transfer fee for each CNG or

8-22     LNG cargo trailer, semitrailer, bobtail, and cylinder-delivery unit

8-23     registered or transferred as follows:

8-24                 (1)  the annual registration fee established by the

8-25     commission shall not be less than $100 nor more than $500; and

 9-1                 (2)  the annual transfer fee established by the

 9-2     commission shall not be less than $25 nor more than $100.

 9-3           SECTION 8.  This Act takes effect September 1, 1997.

 9-4           SECTION 9.  The importance of this legislation and the

 9-5     crowded condition of the calendars in both houses create an

 9-6     emergency and an imperative public necessity that the

 9-7     constitutional rule requiring bills to be read on three several

 9-8     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 634 passed the Senate on

         March 13, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 634 passed the House on

         April 25, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor