By Brown                                               S.B. No. 634

         75R6409 T                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the classification of certain liquefied petroleum gas

 1-3     activities; insurance requirements for liquefied petroleum gas,

 1-4     compressed natural gas, and liquefied natural gas licensees; and

 1-5     registration and transfer fees for liquefied petroleum gas,

 1-6     compressed natural gas, and liquefied natural gas transportation

 1-7     vehicles.

 1-8           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-9           SECTION 1.  Section 113.097, Natural Resources Code, is

1-10     amended as follows:

1-11                 (21)  "Portable cylinder" means a receptacle

1-12     constructed to United States Department of Transportation

1-13     specifications, designed to be moved readily, and used for the

1-14     storage of LPG for connection to an appliance or an LPG system,

1-15     excluding a cylinder designed for use on a forklift or similar

1-16     equipment.

1-17           SECTION 2.  Section 113.082, Natural Resources Code, is

1-18     amended by amending Subdivisions (F), (I), (J), and by adding

1-19     Subdivision (P) to read as follows:

1-20                       (F)  cylinder filling [or cylinder exchange]:

1-21     the operation of a cylinder filling [or cylinder-exchange] facility

1-22     [dealership], including cylinder filling, the sale of LPG in

1-23     cylinders, and the replacement of a cylinder valve; the category

1-24     "F" application and original license fee is an amount not to exceed

 2-1     $100 as determined by the commission; the annual renewal license

 2-2     fee is an amount not to exceed $50 as determined by the commission;

 2-3                       (I)  service station and cylinder filling [or

 2-4     cylinder exchange]: any service station and cylinder activity set

 2-5     out in categories "F" and "G" of this section; the category "I"

 2-6     application and original license fee is an amount not to exceed

 2-7     $150 as determined by the commission; the annual renewal license

 2-8     fee is an amount not to exceed $70 as determined by the commission;

 2-9                       (J)  service station and cylinder facilities

2-10     [dealerships]:  the operation of a cylinder-filling [or

2-11     cylinder-exchange] facility [dealership], including cylinder

2-12     filling and the sale, transportation, installation, and connection

2-13     of LPG in cylinders, the replacement of cylinder valves, and the

2-14     operation of an LPG service station as set out in category "G"; the

2-15     category "J" application and original license fee is an amount not

2-16     to exceed $1,000 as determined by the commission; the annual

2-17     renewal license fee is an amount not to exceed $300 as determined

2-18     by the commission;

2-19                       (P)  portable cylinder exchange:  the operation

2-20     of a portable cylinder exchange service, where the sale of LP-gas

2-21     is within a portable cylinder with an LP-gas capacity not to exceed

2-22     21 pounds; the portable cylinders are not filled on site, and no

2-23     other LP-gas activity requiring a license is conducted; the

2-24     category "P" application and original license fee is an amount not

2-25     to exceed $100 as determined by the commission; the annual renewal

2-26     license fee is an amount not to exceed $50 as determined by the

2-27     commission.

 3-1           SECTION 3.  Section 113.102, Natural Resources Code, is

 3-2     amended to read as follows:

 3-3           All prior LP-gas licenses authorizing portable cylinder

 3-4     exchange activities shall, on an applicant's compliance with the

 3-5     renewal procedure set out in this chapter, be converted to a

 3-6     license identified as category "P".

 3-7           [(a)  Except as provided in Subsection (c) of this section,

 3-8     all prior LP-gas licenses authorizing activities previously defined

 3-9     by this chapter as Categories 1 through 12 shall, on an applicant's

3-10     compliance with the renewal procedure set out in this chapter, be

3-11     converted to a license identified by category letter as specified

3-12     in Subsection (b) of this section.]

3-13           [(b)  A category "I" license shall become a category "A"

3-14     license, and a category "4" shall become a category "C"; a "5," a

3-15     "D"; a "6," an "E"; an "8," an "F"; a "9," a "G"; a "10," a "K"; an

3-16     "11," an "H"; an "8" and "9," an "I"; an "8," "9," "11," and "12,"

3-17     a "J"; and an "8," "9," "11," and "5," a "J"; a "7," an "L", as

3-18     those letter categories as defined in Section 113.082 of this code.]

3-19           [(c)  Previously issued licenses designated as authorizing

3-20     category "2" or "3" activities shall expire.]

3-21           SECTION 4.  Section 113.097, Natural Resources Code, is

3-22     amended by adding Subdivision (k) to read as follows:

3-23           (k)  The commission by rule may allow licensees to

3-24     self-insure under subsections (d), (e), and (f) of this section and

3-25     shall by rule establish standards for such self-insurance.

3-26           SECTION 5.  Section 113.131(d), Natural Resources Code, is

3-27     amended to read as follows:

 4-1           (d)  The commission, by rule, shall establish reasonable,

 4-2     nonrefundable annual registration and transfer fees for each LP-gas

 4-3     cargo trailer, semitrailer, bobtail, and cylinder-delivery unit

 4-4     registered or transferred.

 4-5                 (1)  The annual registration fee established by the

 4-6     commission shall not be less than $100, nor more than $300.

 4-7                 (2)  The annual transfer fee established by the

 4-8     commission shall not be less than $25, nor more than $100.

 4-9           SECTION 6.  Section 116.036(c), Natural Resources Code, is

4-10     amended to read as follows:

4-11           (c)  The commission shall adopt rules establishing specific

4-12     requirements for insurance coverage under this chapter and evidence

4-13     of such coverage.  The types and amounts of insurance coverage

4-14     required by the commission shall be based on the type and category

4-15     of licensed activity.  The commission by rule may allow licensees

4-16     to self-insure under subsections (a) and (e) of this section and

4-17     shall by rule establish standards for such self-insurance.

4-18           SECTION 7.  Section 116.072(c), Natural Resources Code, is

4-19     amended to read as follows:

4-20           (c)  The commission by rule shall establish a reasonable,

4-21     nonrefundable annual registration and transfer fee for each CNG or

4-22     LNG cargo trailer, semitrailer, bobtail, and cylinder-delivery unit

4-23     registered or transferred as follows:

4-24                 (1)  The annual registration fee established by the

4-25     commission shall not be less than $100, nor more than $500; and

4-26                 (2)  The annual transfer fee established by the

4-27     commission shall not be less than $25, nor more than $100.

 5-1           SECTION 8.  This Act takes effect on September 1, 1997.

 5-2           SECTION 9.  The importance of this legislation and the

 5-3     crowded condition of the calendars in both houses create an

 5-4     emergency and an imperative public necessity that the

 5-5     constitutional rule requiring bills to be read on three several

 5-6     days in each house be suspended, and this rule is hereby suspended.