1-1 By: Harris S.B. No. 310
1-2 (In the Senate - Filed March 6, 2001; March 8, 2001, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 9, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 4, Nays 0, 1 present, not
1-6 voting; April 9, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 310 By: Bernsen
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the continuation and functions of the Railroad
1-11 Commission of Texas.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Articles 6445a, 6447b, 6447c, and 6447h, Revised
1-14 Statutes, are amended to read as follows:
1-15 Art. 6445a. SUNSET PROVISION. The Railroad Commission of
1-16 Texas is subject to Chapter 325, Government Code (Texas Sunset
1-17 Act). Unless continued in existence as provided by that chapter,
1-18 the commission is abolished September 1, 2013 [2001].
1-19 Art. 6447b. EQUAL EMPLOYMENT OPPORTUNITY [EMPLOYEE
1-20 PERFORMANCE]. (a) The commission [or its designee shall develop
1-21 an intra-agency career ladder program, one part of which shall be
1-22 the intra-agency posting of all nonentry level positions for at
1-23 least 10 days before any public posting.]
1-24 [(b) The commission or its designee shall develop a system
1-25 of annual performance evaluations based on measurable job tasks.
1-26 All merit pay for commission employees must be based on the system
1-27 established under this subsection.]
1-28 [(c) The commission] shall prepare and maintain a written
1-29 policy statement that implements [plan to assure implementation of]
1-30 a program of equal employment opportunity to ensure that [whereby]
1-31 all personnel decisions [transactions] are made without regard to
1-32 race, color, disability, sex, religion, age, or national origin.
1-33 (b) The policy statement must [plan shall] include:
1-34 (1) personnel policies, including policies relating to
1-35 [plans for] recruitment, evaluation, selection, [appointment,]
1-36 training, and promotion of personnel, that show the intent of the
1-37 commission to avoid the unlawful employment practices described by
1-38 Chapter 21, Labor Code; and
1-39 (2) an analysis of the extent to which the composition
1-40 of the commission's personnel is in accordance with state and
1-41 federal law and a description of reasonable methods to achieve
1-42 compliance with state and federal law.
1-43 (c) The policy statement must:
1-44 (1) be updated annually;
1-45 (2) be reviewed by the state Commission on Human
1-46 Rights for compliance with Subsection (b) of this article; and
1-47 (3) be filed with the governor's office[, and other
1-48 personnel practices. The plan shall also include steps reasonably
1-49 designed to overcome any identified under-utilization of minorities
1-50 and women in the commission's work force and shall include
1-51 objectives and goals, timetables for achieving those objectives and
1-52 goals, and assignments of responsibility for their completion. The
1-53 plan shall be filed with the governor's office within 60 days after
1-54 the effective date of this section, cover an annual period, and be
1-55 updated at least annually. Progress reports shall be submitted to
1-56 the governor's office within 30 days of November 1 and April 1 of
1-57 each year and shall include the steps the commission has taken
1-58 within the reporting period to comply with this requirement of this
1-59 section].
1-60 Art. 6447c. CONFLICT OF INTEREST. (a) In this section,
1-61 "Texas trade association" means a cooperative and voluntarily
1-62 joined association of business or professional competitors in this
1-63 state designed to assist its members and its industry or profession
1-64 in dealing with mutual business or professional problems and in
2-1 promoting their common interest.
2-2 (b) A person may not be an employee of the commission
2-3 employed in a "bona fide executive, administrative, or professional
2-4 capacity," as that phrase is used for purposes of establishing an
2-5 exemption to the overtime provisions of the federal Fair Labor
2-6 Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its
2-7 subsequent amendments, if:
2-8 (1) the person is an officer, employee, or paid
2-9 consultant of a Texas trade association in a business or industry
2-10 regulated by the commission; or
2-11 (2) the person's spouse is an officer, manager, or
2-12 paid consultant of a Texas [An employee of the commission may not
2-13 be an officer, employee, or paid consultant of a] trade association
2-14 in a business or industry regulated by the commission.
2-15 (c) [(b)] A person who is required to register as a lobbyist
2-16 under Chapter 305, Government Code, may not act as the general
2-17 counsel to the commission.
2-18 (d) [(c)] The commission[, as often as necessary,] shall
2-19 provide to members of the commission and to agency employees, as
2-20 often as necessary, information regarding the requirements for
2-21 office or employment under this chapter, including information
2-22 regarding a person's [employees'] responsibilities under applicable
2-23 laws relating to standards of conduct for state officers or
2-24 employees.
2-25 Art. 6447h. COMPLAINTS. (a) The commission shall maintain
2-26 a [keep an information] file on [about] each written complaint
2-27 filed with the commission. The file must include:
2-28 (1) the name of the person who filed the complaint;
2-29 (2) the date the complaint is received by the
2-30 commission;
2-31 (3) the subject matter of the complaint;
2-32 (4) the name of each person contacted in relation to
2-33 the complaint;
2-34 (5) a summary of the results of the review or
2-35 investigation of the complaint; and
2-36 (6) an explanation of the reason the file was closed,
2-37 if the commission closed the file without taking action other than
2-38 to investigate the complaint.
2-39 (b) The commission shall provide to the person filing the
2-40 complaint and to each person who is a subject of the complaint a
2-41 copy of the commission's policies and procedures relating to
2-42 complaint investigation and resolution.
2-43 (c) The [relating to a person who has a license, permit, or
2-44 certificate of public convenience and necessity from the
2-45 commission.]
2-46 [(b) If a written complaint is filed with the commission
2-47 relating to a person who has a license, permit, or certificate of
2-48 public convenience and necessity from the] commission, at least [as
2-49 frequently as] quarterly [and] until final disposition of the
2-50 complaint, [the commission] shall notify the person filing [parties
2-51 to] the complaint and each person who is a subject of the complaint
2-52 of the status of the investigation [complaint] unless the notice
2-53 would jeopardize an undercover investigation. [This section does
2-54 not apply to complaints under Chapter 91, Natural Resources Code.]
2-55 SECTION 2. Title 112, Revised Statutes, is amended by adding
2-56 Articles 6447k, 6447l, 6447m, and 6447n to read as follows:
2-57 Art. 6447k. SEPARATION OF POLICY-MAKING AND MANAGEMENT
2-58 RESPONSIBILITIES. The commission shall develop and implement
2-59 policies that clearly separate the policy-making responsibilities
2-60 of the members of the commission and the management
2-61 responsibilities of the staff of the commission.
2-62 Art. 6447l. PUBLIC PARTICIPATION. The commission shall
2-63 develop and implement policies that provide the public with a
2-64 reasonable opportunity to appear before the commission and to speak
2-65 on any issue under the jurisdiction of the commission.
2-66 Art. 6447m. EMPLOYEE INCENTIVE PROGRAM. The commission
2-67 shall provide to commission employees information and training on
2-68 the benefits and methods of participation in the state employee
2-69 incentive program.
3-1 Art. 6447n. METHOD OF MAKING PAYMENTS TO COMMISSION.
3-2 (a) The commission may authorize payment, as prescribed by the
3-3 commission, of regulatory fees, fines, penalties, and charges for
3-4 goods and services by means of an electronic payment method or a
3-5 credit card issued by a financial institution chartered by a state
3-6 or the United States or issued by a nationally recognized credit
3-7 organization approved by the commission. A payment by the
3-8 authorized method may be made in person, by telephone, or through
3-9 the Internet.
3-10 (b) The commission may require a person who makes a payment
3-11 to the commission by means of an electronic payment method or
3-12 credit card to pay a discount or service charge in an amount
3-13 reasonable and necessary to reimburse the commission for the costs
3-14 involved in processing the payment.
3-15 (c) The commission may adopt rules as necessary to implement
3-16 this article.
3-17 SECTION 3. Section 81.0531, Natural Resources Code, is
3-18 amended by amending Subsections (c) and (d) and adding Subsection
3-19 (e) to read as follows:
3-20 (c) In determining the amount of the penalty, the commission
3-21 shall consider the permittee's history of previous violations, the
3-22 seriousness of the violation, any hazard to the health or safety of
3-23 the public, and the demonstrated good faith of the person charged.
3-24 In determining the amount of the penalty for a violation of a
3-25 provision of this title or a rule, order, license, permit, or
3-26 certificate that relates to pipeline safety, the commission shall
3-27 consider the guidelines adopted under Subsection (d).
3-28 (d) The commission by rule shall adopt guidelines to be used
3-29 in determining the amount of the penalty for a violation of a
3-30 provision of this title or a rule, order, license, permit, or
3-31 certificate that relates to pipeline safety. The guidelines shall
3-32 include a penalty calculation worksheet that specifies the typical
3-33 penalty for certain violations, circumstances justifying
3-34 enhancement of a penalty and the amount of the enhancement, and
3-35 circumstances justifying a reduction in a penalty and the amount of
3-36 the reduction. The guidelines shall take into account:
3-37 (1) the permittee's history of previous violations,
3-38 including the number of previous violations;
3-39 (2) the seriousness of the violation and of any
3-40 pollution resulting from the violation;
3-41 (3) any hazard to the health or safety of the public;
3-42 (4) the degree of culpability;
3-43 (5) the demonstrated good faith of the person charged;
3-44 and
3-45 (6) any other factor the commission considers
3-46 relevant.
3-47 (e) A penalty collected under this section shall be
3-48 deposited to the credit of the oil-field cleanup fund.
3-49 SECTION 4. Subsection (a), Section 81.116, Natural Resources
3-50 Code, is amended to read as follows:
3-51 (a) An oil-field cleanup regulatory fee is imposed on crude
3-52 petroleum produced in this state in an [the] amount set by
3-53 commission rule not to exceed [of five-sixteenths of] one cent on
3-54 each barrel of 42 standard gallons.
3-55 SECTION 5. Subsection (a), Section 81.117, Natural Resources
3-56 Code, is amended to read as follows:
3-57 (a) An oil-field cleanup regulatory fee is imposed on gas
3-58 initially produced and saved in this state in an [the] amount set
3-59 by commission rule not to exceed one-tenth of [one-thirtieth of]
3-60 one cent for each thousand cubic feet.
3-61 SECTION 6. Section 85.161, Natural Resources Code, is
3-62 amended to read as follows:
3-63 Sec. 85.161. WELL OWNERS AND OPERATORS CERTIFICATES. The
3-64 owner or operator of any [an oil or gas] well subject to the
3-65 jurisdiction of the commission[, before connecting with any oil or
3-66 gas pipeline,] shall secure from the commission a certificate
3-67 showing compliance with the oil or gas conservation laws of the
3-68 state and conservation rules and orders of the commission.
3-69 SECTION 7. Section 85.2021, Natural Resources Code, is
4-1 amended by amending Subsections (c) and (d) and adding Subsection
4-2 (e) to read as follows:
4-3 (c) With each application for an extension of time to plug a
4-4 well pursuant to commission rules, an applicant shall submit to the
4-5 commission a nonrefundable fee of $300 [$100], unless the applicant
4-6 has filed a bond under Section 91.1041 or Section 91.1042 of this
4-7 code. This subsection expires September 1, 2004.
4-8 (d) Notwithstanding Subsections (a) and (b), the commission
4-9 by rule shall set fees under those subsections in amounts that are
4-10 projected to generate in the aggregate annual revenue of $1.5
4-11 million more than the aggregate annual revenue projected to be
4-12 generated by the fee amounts provided by those subsections.
4-13 (e) All fees collected under this section shall be deposited
4-14 in the state oil-field cleanup fund.
4-15 SECTION 8. Effective September 1, 2004, Section 91.103,
4-16 Natural Resources Code, is amended to read as follows:
4-17 Sec. 91.103. PERSONS REQUIRED TO EXECUTE BOND [OR ALTERNATE
4-18 FORM OF FINANCIAL SECURITY]. Any person, including any firm,
4-19 partnership, joint stock association, corporation, or other
4-20 organization, required to file an organization report under Section
4-21 91.142 of this code shall execute and file with the commission a
4-22 bond [or alternate form of financial security].
4-23 SECTION 9. Subsections (b) and (c), Section 91.104, Natural
4-24 Resources Code, are amended to read as follows:
4-25 (b) A person required to file a bond under Section 91.103
4-26 may choose to file:
4-27 (1) an individual bond as provided under Section
4-28 91.1041;
4-29 (2) a blanket bond as provided under Section 91.1042;
4-30 or
4-31 (3) [a nonrefundable annual fee of $100, if the person
4-32 can demonstrate to the commission an acceptable record of
4-33 compliance with all commission rules, orders, licenses, permits, or
4-34 certificates that relate to safety or the prevention or control of
4-35 pollution for the previous 48 months and the person and, if a firm,
4-36 partnership, joint stock association, corporation, or other
4-37 organization, its officers, directors, general partners, or owners
4-38 of more than 25 percent ownership interest or any trustee:]
4-39 [(A) has no outstanding violations of such
4-40 commission rules, orders, licenses, permits, or certificates;]
4-41 [(B) has paid all administrative, civil, and
4-42 criminal penalties, if any, relating to any violation of such
4-43 commission rules, orders, licenses, permits, or certificates; and]
4-44 [(C) has paid all reimbursements of any costs
4-45 and expenses incurred by the commission in relation to any
4-46 violation of such commission rules, orders, licenses, permits, or
4-47 certificates;]
4-48 [(4)] a nonrefundable annual fee equal to three
4-49 percent of the bond that otherwise would be required[; or]
4-50 [(5) to give a first lien on tangible personal
4-51 property associated with oil and gas production whose salvage value
4-52 equals the value of an individual bond under Section 91.1041 or the
4-53 value of a blanket bond under Section 91.1042 that otherwise would
4-54 be required].
4-55 (c) A person who chooses to file a form of financial
4-56 security other than a bond shall also submit a fee [of $100] for
4-57 each application to extend the time to plug a well in accordance
4-58 with Section 85.2021 of this code.
4-59 SECTION 10. Effective September 1, 2004, Section 91.104,
4-60 Natural Resources Code, is amended to read as follows:
4-61 Sec. 91.104. BONDS [AND ALTERNATE FORMS OF FINANCIAL
4-62 SECURITY]. (a) The commission shall require a bond [or an
4-63 alternate form of financial security] to be filed with the
4-64 commission as provided by Subsection (b) of this section.
4-65 (b) A person required to file a bond under Section 91.103
4-66 may choose to file:
4-67 (1) an individual bond as provided under Section
4-68 91.1041; or
4-69 (2) a blanket bond as provided under Section 91.1042[;]
5-1 [(3) a nonrefundable annual fee of $100, if the person
5-2 can demonstrate to the commission an acceptable record of
5-3 compliance with all commission rules, orders, licenses, permits, or
5-4 certificates that relate to safety or the prevention or control of
5-5 pollution for the previous 48 months and the person and, if a firm,
5-6 partnership, joint stock association, corporation, or other
5-7 organization, its officers, directors, general partners, or owners
5-8 of more than 25 percent ownership interest or any trustee:]
5-9 [(A) has no outstanding violations of such
5-10 commission rules, orders, licenses, permits, or certificates;]
5-11 [(B) has paid all administrative, civil, and
5-12 criminal penalties, if any, relating to any violation of such
5-13 commission rules, orders, licenses, permits, or certificates; and]
5-14 [(C) has paid all reimbursements of any costs
5-15 and expenses incurred by the commission in relation to any
5-16 violation of such commission rules, orders, licenses, permits, or
5-17 certificates;]
5-18 [(4) a nonrefundable annual fee equal to three percent
5-19 of the bond that otherwise would be required; or]
5-20 [(5) to give a first lien on tangible personal
5-21 property associated with oil and gas production whose salvage value
5-22 equals the value of an individual bond under Section 91.1041 or the
5-23 value of a blanket bond under Section 91.1042 that otherwise would
5-24 be required].
5-25 [(c) A person who chooses to file a form of financial
5-26 security other than a bond shall also submit a fee of $100 for each
5-27 application to extend the time to plug a well in accordance with
5-28 Section 85.2021 of this code.]
5-29 SECTION 11. Sections 91.1041 and 91.1042, Natural Resources
5-30 Code, are amended to read as follows:
5-31 Sec. 91.1041. INDIVIDUAL BOND. (a) A person required to
5-32 file a bond under Section 91.103 who operates one or more wells may
5-33 file a bond in an amount equal to $2 for each foot of well depth
5-34 for each well.
5-35 (b) Notwithstanding Subsection (a), the commission by rule
5-36 shall set the amount of the bond for an operator of one or more bay
5-37 or offshore wells at a reasonable amount that exceeds the amount
5-38 provided by Subsection (a).
5-39 Sec. 91.1042. BLANKET BOND. (a) A person required to file
5-40 a bond under Section 91.103 may file a blanket bond to cover all
5-41 wells and operations for which a bond is required as follows:
5-42 (1) a person who operates 10 or fewer wells or
5-43 performs other operations shall file a $25,000 blanket bond;
5-44 (2) a person who operates more than 10 but fewer than
5-45 100 wells shall file a $50,000 blanket bond; and
5-46 (3) a person who operates 100 or more wells shall file
5-47 a $250,000 blanket bond.
5-48 (b) Notwithstanding Subsection (a), the commission by rule
5-49 shall set the amount of the bond for an operator of bay or offshore
5-50 wells at a reasonable amount that exceeds the amount provided by
5-51 Subsection (a)(1), (2), or (3), as applicable.
5-52 SECTION 12. Effective September 1, 2004, Section 91.107,
5-53 Natural Resources Code, is amended to read as follows:
5-54 Sec. 91.107. NEW BOND [OR ALTERNATE FORM OF FINANCIAL
5-55 SECURITY]. If a well covered by a bond [or alternate form of
5-56 financial security] is transferred, sold, or assigned by its
5-57 operator, the commission shall require the party acquiring the well
5-58 to file a new bond [or alternate form of financial security] as
5-59 provided by this subchapter, and the bond [or alternate form of
5-60 financial security] of the prior operator shall continue to be
5-61 required and to remain in effect until the new bond [or alternate
5-62 form of financial security] is provided or the commission
5-63 determines that the bond [financial security] previously submitted
5-64 to the commission by the person acquiring the well complies with
5-65 this subchapter.
5-66 SECTION 13. Section 91.111, Natural Resources Code, is
5-67 amended by amending Subsections (b) and (c) and adding Subsection
5-68 (e) to read as follows:
5-69 (b) The commission shall certify to the comptroller the date
6-1 on which the balance in the fund equals or exceeds $20 [$10]
6-2 million. The oil-field cleanup regulatory fees on oil and gas
6-3 shall not be collected or required to be paid on or after the first
6-4 day of the second month following the certification, except that
6-5 the comptroller shall resume collecting the fees on receipt of a
6-6 commission certification that the fund has fallen below $10 [$6]
6-7 million. The comptroller shall continue collecting the fees until
6-8 collections are again suspended in the manner provided by this
6-9 subsection.
6-10 (c) The fund consists of:
6-11 (1) penalties imposed under Section 85.381 for
6-12 violation of a law, order, or rule relating to well plugging
6-13 requirements;
6-14 (2) proceeds from bonds and other financial assurances
6-15 required by this chapter, subject to the refund provisions of
6-16 Section 91.1091;
6-17 (3) private contributions, including contributions
6-18 made under Section 89.084;
6-19 (4) expenses collected under Section 89.083;
6-20 (5) fees imposed under Section 85.2021;
6-21 (6) civil penalties collected for violations of
6-22 Chapter 89 or of rules or orders relating to plugging that are
6-23 adopted under this code;
6-24 (7) proceeds collected under Sections 89.085 and
6-25 91.115;
6-26 (8) interest earned on the funds deposited in the
6-27 fund;
6-28 (9) fees collected under Section 91.104;
6-29 (10) civil penalties or costs recovered under Section
6-30 91.457 or 91.459;
6-31 (11) oil and gas waste hauler permit application fees
6-32 collected under Section 29.015, Water Code;
6-33 (12) costs recovered under Section 91.113(f);
6-34 (13) hazardous oil and gas waste generation fees
6-35 collected under Section 91.605;
6-36 (14) oil-field cleanup regulatory fees on oil
6-37 collected under Section 81.116;
6-38 (15) oil-field cleanup regulatory fees on gas
6-39 collected under Section 81.117;
6-40 (16) fees for a reissued certificate collected under
6-41 Section 85.167;
6-42 (17) fees collected under Section 91.1013;
6-43 (18) fees collected under Section 89.088;
6-44 (19) penalties collected under Section 81.0531; [and]
6-45 (20) fees collected under Section 91.142;
6-46 (21) fees collected under Section 91.1132; and
6-47 (22) legislative appropriations.
6-48 (e) The commission, through the legislative appropriations
6-49 request process, shall establish specific performance goals for the
6-50 oil-field cleanup fund for the next biennium, including goals for
6-51 the number of:
6-52 (1) site investigations and environmental assessments
6-53 to be conducted;
6-54 (2) abandoned wells to be plugged; and
6-55 (3) surface locations to be remediated.
6-56 SECTION 14. Subsection (b), Section 91.112, Natural
6-57 Resources Code, is amended to read as follows:
6-58 (b) The commission shall submit to the legislature and make
6-59 available to the public, annually, a report that reviews the extent
6-60 to which money provided under Section 91.111 has enabled the
6-61 commission to better protect the environment and enhance the income
6-62 of the oil-field cleanup fund. The report shall include:
6-63 (1) the number of wells plugged, by region;
6-64 (2) the number of wells abandoned, by region;
6-65 (3) the number of inactive wells not currently in
6-66 compliance with commission rules, by region;
6-67 (4) the status of enforcement proceedings for all
6-68 wells in violation of commission rules and the time period during
6-69 which the wells have been in violation, by region in which the
7-1 wells are located;
7-2 (5) the number of surface locations remediated, by
7-3 region;
7-4 (6) a detailed accounting of expenditures of money in
7-5 the fund, including expenditures for site investigations and
7-6 environmental assessments, plugging of abandoned wells, remediation
7-7 of surface locations, and staff salaries and other administrative
7-8 expenses;
7-9 (7) the method by which the commission sets priorities
7-10 by which it determines the order in which abandoned wells are
7-11 plugged;
7-12 (8) [(6)] a projection of the amount of money needed
7-13 for the next biennium for conducting site investigations and
7-14 environmental assessments, plugging abandoned wells, and
7-15 remediating surface locations; and
7-16 (9) [(7)] the status of implementation of the
7-17 provisions of Section 89.085 relating to possession and sale of
7-18 equipment to recover plugging costs.
7-19 SECTION 15. Subchapter D, Chapter 91, Natural Resources
7-20 Code, is amended by adding Sections 91.1131 and 91.1132 to read as
7-21 follows:
7-22 Sec. 91.1131. RISK ASSESSMENT STANDARDS; PRIORITIZATION OF
7-23 HIGH-RISK WELLS. (a) The commission by rule shall establish risk
7-24 assessment as the guide for:
7-25 (1) conducting site investigations and environmental
7-26 assessments; and
7-27 (2) controlling and cleaning up oil and gas wastes and
7-28 other substances and materials.
7-29 (b) Rules adopted under this section must provide for:
7-30 (1) determining whether an actual or potential risk
7-31 exists at a site;
7-32 (2) screening contaminants at the site to identify
7-33 those that pose a risk;
7-34 (3) developing cleanup standards based on
7-35 contamination levels that are protective of human health and the
7-36 environment and that preserve the active and productive use of the
7-37 land; and
7-38 (4) establishing a reporting mechanism for informing
7-39 the commission regarding specific remediation activities.
7-40 (c) The commission by rule shall develop a system for:
7-41 (1) identifying abandoned wells that pose a high risk
7-42 of contaminating surface water or groundwater;
7-43 (2) periodically testing high-risk wells by conducting
7-44 a fluid level test or, if necessary, a pressure test; and
7-45 (3) giving priority to plugging high-risk wells with
7-46 compromised casings.
7-47 Sec. 91.1132. VOLUNTARY CLEANUP PROGRAM. (a) The
7-48 commission by rule shall establish a voluntary cleanup program
7-49 under which a person who is not a responsible person as defined by
7-50 Section 91.113 and who cleans up oil and gas wastes or other
7-51 substances or materials in accordance with an agreement with the
7-52 commission may receive from the commission a certificate evidencing
7-53 completion of the cleanup. On receipt of the certificate, the
7-54 person is released from all liability to the commission for cleanup
7-55 of the site covered by the certificate.
7-56 (b) A person who desires to participate in the program must
7-57 submit to the commission:
7-58 (1) an application; and
7-59 (2) an application fee in an amount set by commission
7-60 rule.
7-61 (c) The staff of the commission shall:
7-62 (1) assist a participant in the program in developing
7-63 a cleanup plan; and
7-64 (2) provide technical oversight during the cleanup.
7-65 (d) The program established under this section must be
7-66 consistent with rules adopted under Section 91.1131.
7-67 SECTION 16. Section 91.142, Natural Resources Code, is
7-68 amended by adding Subsection (g) to read as follows:
7-69 (g) The commission by rule shall require an organization
8-1 report filed under this section to be accompanied by a fee set by
8-2 the commission in an amount sufficient to cover the cost of
8-3 administering this section. The commission may not set a fee under
8-4 this subsection in an amount that is projected to generate annual
8-5 revenue of more than $3 million.
8-6 SECTION 17. Sections 113.011, 113.014, 113.015, 113.0511,
8-7 and 113.082, Natural Resources Code, are amended to read as
8-8 follows:
8-9 Sec. 113.011. REGULATION OF LIQUEFIED PETROLEUM GAS
8-10 ACTIVITIES. The commission shall administer and enforce the laws
8-11 of this state and the rules and standards of the commission
8-12 relating to liquefied petroleum gas [DIVISION. There is created
8-13 and organized a separate and distinct division of the commission
8-14 known as the liquefied petroleum gas division or the LPG division].
8-15 Sec. 113.014. EMPLOYEES. Sufficient employees shall be
8-16 provided [to the LPG division] for the enforcement of this chapter.
8-17 Sec. 113.015. FUNDS FOR FINANCING REGULATION OF LPG
8-18 ACTIVITIES [DIVISION]. The commission shall look only to the
8-19 revenue derived from the operation of this chapter and appropriated
8-20 by the legislature for expenses of regulating [conducting the]
8-21 liquefied petroleum gas activities [division] and administering
8-22 this chapter. [The LPG examination fund is established in the
8-23 state treasury to be used to pay the costs of training, including
8-24 examinations, seminars, and continuing education programs,
8-25 administered or sponsored by the commission pursuant to Sections
8-26 113.087 and 113.088 of this code. All fees collected pursuant to
8-27 Sections 113.088 and 113.090(c) of this code relating to training
8-28 or registration for qualification to perform LPG-related activities
8-29 shall be credited to this fund. There is hereby appropriated from
8-30 the fund to the commission all such fees collected.]
8-31 Sec. 113.0511. LIMITATIONS ON RULEMAKING AUTHORITY.
8-32 (a) The commission may not adopt rules restricting advertising or
8-33 competitive bidding [or advertising] by a licensee [person
8-34 regulated by the commission] except to prohibit false, misleading,
8-35 or deceptive practices [by the person].
8-36 (b) In its [The commission may not include in any] rules to
8-37 prohibit false, misleading, or deceptive practices, the commission
8-38 may not include [by a person regulated by the commission] a rule
8-39 that:
8-40 (1) restricts the [person's] use of any medium for
8-41 advertising;
8-42 (2) restricts the use of a licensee's [person's]
8-43 personal appearance or [use of his] voice in an advertisement;
8-44 (3) relates to the size or duration of an
8-45 advertisement by the licensee [person]; or
8-46 (4) restricts the licensee's [person's] advertisement
8-47 under a trade name.
8-48 Sec. 113.082. CATEGORIES OF LPG ACTIVITIES [LICENSEE];
8-49 FEES. (a) A prospective licensee in LPG may apply to the
8-50 commission [LPG division] for a license to engage in any one or
8-51 more of the following categories of LPG activities:
8-52 (1) [(A)] container manufacturers/fabricators: the
8-53 manufacture, fabrication, assembly, repair, installation,
8-54 subframing, testing, and sale of LPG containers, including LPG
8-55 motor or mobile fuel containers and systems, and the repair and
8-56 installation of transport and transfer systems[; and the category
8-57 "A" application and original license fee is an amount not to exceed
8-58 $1,000 as determined by the commission; the annual renewal license
8-59 fee is an amount not to exceed $600 as determined by the
8-60 commission];
8-61 (2) [(B)] transport outfitters: the subframing,
8-62 testing, and sale of LPG transport containers, the testing of LPG
8-63 storage containers, the installation, testing, and sale of LPG
8-64 motor or mobile fuel containers and systems, and the installation
8-65 and repair of transport systems, and motor or mobile fuel systems[;
8-66 the category "B" application and original license fee is an amount
8-67 not to exceed $400 as determined by the commission; the annual
8-68 renewal license fee is an amount not to exceed $200 as determined
8-69 by the commission];
9-1 (3) [(C)] carriers: the transportation of LPG by
9-2 transport, including the loading and unloading of LPG, and the
9-3 installation and repair of transport systems[; the category "C"
9-4 application and original license fee is an amount not to exceed
9-5 $1,000 as determined by the commission; the annual renewal license
9-6 fee is an amount not to exceed $300 as determined by the
9-7 commission];
9-8 (4) [(D)] general installers and repairmen: the sale,
9-9 service, and installation of containers, excluding motor fuel
9-10 containers, and the service, installation, and repair of piping,
9-11 certain appliances as defined by rule, excluding recreational
9-12 vehicle appliances and LPG systems, excluding motor fuel and
9-13 recreational vehicle systems[; the category "D" application and
9-14 original license fee is an amount not to exceed $100 as determined
9-15 by the commission; the annual renewal license fee is an amount not
9-16 to exceed $70 as determined by the commission];
9-17 (5) [(E)] retail and wholesale dealers: the storage,
9-18 sale, transportation, and distribution of LPG at retail and
9-19 wholesale, and all other activities included in this section except
9-20 the manufacture, fabrication, assembly, repair, subframing, and
9-21 testing of LPG containers, and except the sale and installation of
9-22 LPG motor or mobile fuel systems that have an engine with a rating
9-23 of more than 25 horsepower[; the category "E" application and
9-24 original license fee is an amount not to exceed $750 as determined
9-25 by the commission; the annual renewal license fee is an amount not
9-26 to exceed $300 as determined by the commission];
9-27 (6) [(F)] cylinder filling: the operation of a
9-28 cylinder-filling facility, including cylinder filling, the sale of
9-29 LPG in cylinders, and the replacement of a cylinder valve[; the
9-30 category "F" application and original license fee is an amount not
9-31 to exceed $100 as determined by the commission; the annual renewal
9-32 license fee is an amount not to exceed $50 as determined by the
9-33 commission];
9-34 (7) [(G)] service station: the operation of an LPG
9-35 service station filling ASME containers designed for motor and
9-36 mobile fuel[; the category "G" application and original license fee
9-37 is an amount not to exceed $100 as determined by the commission;
9-38 the annual renewal license fee is an amount not to exceed $50 as
9-39 determined by the commission];
9-40 (8) [(H)] cylinder dealers: the transportation and
9-41 sale of LPG in cylinders[; the category "H" application and
9-42 original license fee is an amount not to exceed $1,000 as
9-43 determined by the commission; the annual renewal license fee is an
9-44 amount not to exceed $300 as determined by the commission];
9-45 (9) [(I)] service station and cylinder filling: any
9-46 service station and cylinder activity set out in Subdivisions (6)
9-47 and (7) [categories "F" and "G" of this section; the category "I"
9-48 application and original license fee is an amount not to exceed
9-49 $150 as determined by the commission; the annual renewal license
9-50 fee is an amount not to exceed $70 as determined by the
9-51 commission];
9-52 (10) [(J)] service station and cylinder facilities:
9-53 the operation of a cylinder-filling facility, including cylinder
9-54 filling and the sale, transportation, installation, and connection
9-55 of LPG in cylinders, the replacement of cylinder valves, and the
9-56 operation of an LPG service station as set out in Subdivision (7)
9-57 [category "G"; the category "J" application and original license
9-58 fee is an amount not to exceed $1,000 as determined by the
9-59 commission; the annual renewal license fee is an amount not to
9-60 exceed $300 as determined by the commission];
9-61 (11) [(K)] distribution system: the sale and
9-62 distribution of LPG through mains or pipes and the installation and
9-63 repair of LPG systems[; the category "K" application and original
9-64 license fee is an amount not to exceed $1,000 as determined by the
9-65 commission; the annual renewal license fee is an amount not to
9-66 exceed $300 as determined by the commission];
9-67 (12) [(L)] engine fuel: the sale and installation of
9-68 LPG motor or mobile fuel containers, and the sale and installation
9-69 of LPG motor or mobile fuel systems[; the category "L" application
10-1 and original license fee is an amount not to exceed $100 as
10-2 determined by the commission; the annual renewal license fee is an
10-3 amount not to exceed $50 as determined by the commission];
10-4 (13) [(M)] recreational vehicle installers and
10-5 repairmen: the sale, service, and installation of recreational
10-6 vehicle containers, and the installation, repair, and service of
10-7 recreational vehicle appliances, piping, and LPG systems, including
10-8 recreational vehicle motor or mobile fuel systems and containers[;
10-9 the category "M" application and original license fee is an amount
10-10 not to exceed $100 as determined by the commission; the annual
10-11 renewal license fee is an amount not to exceed $70 as determined by
10-12 the commission];
10-13 (14) [(N)] manufactured housing installers and
10-14 repairmen: the service and installation of containers that supply
10-15 fuel to manufactured housing, and the installation, repair, and
10-16 service of appliances and piping systems for manufactured housing[;
10-17 the category "N" application and original license fee is an amount
10-18 not to exceed $100 as determined by the commission; the annual
10-19 renewal license fee is an amount not to exceed $70 as determined by
10-20 the commission];
10-21 (15) [(O)] testing laboratory: the testing of an
10-22 LP-gas container, LP-gas motor fuel systems or mobile fuel systems,
10-23 transfer systems, and transport systems for the purpose of
10-24 determining the safety of the container or systems for LP-gas
10-25 service, including the necessary installation, disconnection,
10-26 reconnecting, testing, and repair of LPG motor fuel systems or
10-27 mobile fuel systems, transfer systems, and transport systems
10-28 involved in the testing of containers; [the category "O"
10-29 application and original license fee is an amount not to exceed
10-30 $400 as determined by the commission; the annual renewal license
10-31 fee is an amount not to exceed $100 as determined by the
10-32 commission;] or
10-33 (16) [(P)] portable cylinder exchange: the operation
10-34 of a portable cylinder exchange service, where the sale of LP-gas
10-35 is within a portable cylinder with an LP-gas capacity not to exceed
10-36 21 pounds; the portable cylinders are not filled on site, and no
10-37 other LP-gas activity requiring a license is conducted[; the
10-38 category "P" application and original license fee is an amount not
10-39 to exceed $100 as determined by the commission; the annual renewal
10-40 license fee is an amount not to exceed $50 as determined by the
10-41 commission].
10-42 (b) The commission by rule shall establish reasonable
10-43 application and original license fees and renewal fees for each
10-44 type of license listed in this section.
10-45 SECTION 18. Subsections (b) and (c), Section 113.084,
10-46 Natural Resources Code, are amended to read as follows:
10-47 (b) A prospective licensee shall submit the required
10-48 application together with the original nonrefundable license fee
10-49 established by the commission under [required by] Section 113.082
10-50 [of this code] for each type of license [category] for which an [a
10-51 license] application is made. The applicant shall submit
10-52 additional information and data with each application as the
10-53 commission may reasonably require.
10-54 (c) A licensee shall submit the nonrefundable renewal fee
10-55 for each type of [category for which] license [is] sought along
10-56 with information and data the commission may reasonably require.
10-57 SECTION 19. Section 113.087, Natural Resources Code, is
10-58 amended by amending Subsections (b), (c), and (i) through (m) and
10-59 adding Subsections (n) and (o) to read as follows:
10-60 (b) Before license issuance, the commission shall require
10-61 the individual designated as the licensee's representative to the
10-62 commission to provide good and sufficient proof through examination
10-63 prepared and administered by the commission of working knowledge of
10-64 this chapter and rules of the commission which affect the type
10-65 [category] of license for which application is made. Thereafter,
10-66 each licensee shall maintain a qualified representative at all
10-67 times.
10-68 (c) Each individual who will be actively supervising those
10-69 operations requiring any license under this chapter at any outlet
11-1 or location, as designated by the commission, shall be required to
11-2 provide good and sufficient proof through examination prepared and
11-3 administered by the commission that the supervisor has a working
11-4 knowledge of the safety requirements and penalties in this chapter
11-5 and the rules of the commission which apply to that type [category]
11-6 of license.
11-7 (i) Not later than the 30th day after the date a person
11-8 takes a licensing [on which an] examination [is administered] under
11-9 this chapter [section], the commission shall notify the person
11-10 [each examinee] of the results of the examination.
11-11 (j) If the examination is graded or reviewed by a testing
11-12 service:
11-13 (1) the commission shall notify the person of the
11-14 results of the examination not later than the 14th day after the
11-15 date the commission receives the results from the testing service;
11-16 and
11-17 (2) if notice of the examination results will be
11-18 delayed for longer than 90 days after the examination date, the
11-19 commission shall notify the person [examinee] of the reason for the
11-20 delay before the 90th day.
11-21 (k) The commission may require a testing service to notify a
11-22 person of the results of the person's examination.
11-23 (l) [(j)] If requested in writing by a person who fails a
11-24 [the] licensing examination administered under this chapter
11-25 [section], the commission shall furnish the person with an analysis
11-26 of the person's performance on the examination.
11-27 (m) [(k)] The commission, by appropriate rule, shall [may]
11-28 require, in addition to examination requirements as set out in
11-29 Subsections (b), (c), and (d) of this section:
11-30 (1) an examination for technical competence that is
11-31 validated by a recognized educational testing organization or
11-32 similar organization; or
11-33 (2) attendance at approved academic, trade,
11-34 professional, or commission-sponsored seminars, other continuing
11-35 education programs, and periodic reexaminations.
11-36 (n) [(l)] Prior to qualifying an individual to perform
11-37 LP-gas work, the commission may establish by rule an initial course
11-38 of instruction for any person who has not yet passed the [category
11-39 of] examination for the LPG activity for which the person seeks
11-40 qualification; for any person who has not maintained qualified
11-41 status, as defined by rule; and for any person whose certification
11-42 has been revoked pursuant to Subchapter F of this code. If an
11-43 initial course of instruction is established by the commission, it
11-44 shall be available at least once every 180 [90] days.
11-45 (o) [(m)] The commission by rule may exempt from any
11-46 provision of this section:
11-47 (1) a journeyman or master plumber licensed by the
11-48 Texas State Board of Plumbing Examiners;
11-49 (2) a person licensed under the Air Conditioning and
11-50 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
11-51 Civil Statutes); or
11-52 (3) company representatives, operations supervisors,
11-53 or employees of a testing laboratory that was registered under
11-54 Section 113.135 prior to the effective date of this subsection.
11-55 SECTION 20. Subsections (a) and (c), Section 113.089,
11-56 Natural Resources Code, are amended to read as follows:
11-57 (a) If application is made for a license under [category "E"
11-58 of] Section 113.082(a)(5) [113.082 of this code] or for any other
11-59 type of license [category] specified by commission rule, the
11-60 commission, in addition to other requirements, shall have an actual
11-61 inspection conducted of any and all facilities, bulk storage
11-62 equipment, transportation equipment, and dispensing equipment of
11-63 the applicant to verify satisfactory compliance with all current
11-64 safety laws, rules, and practices. The inspection may be waived by
11-65 the commission on an application resulting solely from a change in
11-66 legal entities under which a current licensee operates.
11-67 (c) A [category "E"] license under Section 113.082(a)(5) and
11-68 any other type of license specified by commission rule shall not be
11-69 issued until the inspection under Subsection (a) of this section
12-1 verifies the applicant to be in satisfactory compliance with all
12-2 current safety laws, rules, and practices.
12-3 SECTION 21. Subsections (a) and (b), Section 113.090,
12-4 Natural Resources Code, are amended to read as follows:
12-5 (a) The commission by rule may establish reasonable fees for
12-6 the review of site applications [examination of plans and
12-7 specifications] related to the installation of containers when site
12-8 applications [plans and specifications] are reviewed by the
12-9 commission before such installation is placed into LP-gas service.
12-10 (b) The commission by rule may establish reasonable fees for
12-11 recording the location of containers at public buildings and
12-12 commercial installations when prior approval of site applications
12-13 [plans and specifications] is not required.
12-14 SECTION 22. Subsections (b), (c), and (d), Section 113.091,
12-15 Natural Resources Code, are amended to read as follows:
12-16 (b) Within 30 days of the notice of denial, an applicant for
12-17 license under this chapter who is denied a license may request a
12-18 hearing to determine whether or not the applicant has complied in
12-19 all respects with the licensing procedure applicable to each type
12-20 [the category or categories] of license sought. The applicant's
12-21 request for hearing must be in writing and delivered to the
12-22 commission [director of the LP-gas division].
12-23 (c) A hearing to determine an applicant's compliance with
12-24 the licensing procedure applicable to each type [the category or
12-25 categories] of license sought must be scheduled within 30 days
12-26 following receipt of a request under Subsection (b) of this
12-27 section.
12-28 (d) If the record made at the hearing supports the
12-29 applicant's claim, the commission shall enter an order in its
12-30 records to that effect, noting each type of license to [the
12-31 category or categories for] which the applicant is found entitled
12-32 [to be licensed], and the commission shall have the license or
12-33 licenses issued. If the applicant is found unqualified, the
12-34 commission shall likewise enter an order in its records to that
12-35 effect, and no license may be issued to the applicant.
12-36 SECTION 23. Section 113.093, Natural Resources Code, is
12-37 amended to read as follows:
12-38 Sec. 113.093. LICENSE RENEWAL. (a) A person who is
12-39 otherwise eligible to renew a license may renew an unexpired
12-40 license by paying the required [issued pursuant to this chapter is
12-41 renewable on the timely payment or tender of the] renewal [license]
12-42 fee to the commission before the expiration date of the license
12-43 [each year]. A person whose license has expired may not engage in
12-44 activities that require a license until the license has been
12-45 renewed.
12-46 (b) A person whose [If a person's] license has been expired
12-47 for [not longer than] 90 days or less[, the person] may renew the
12-48 license by paying to the commission a [the required] renewal fee
12-49 that is equal to 1-1/2 times the normally required [and a fee that
12-50 is one-half of the amount of the] renewal fee [for the license].
12-51 (c) A person whose [If a person's] license has been expired
12-52 for more [longer] than 90 days but less than one year [two years,
12-53 the person] may renew the license by paying to the commission a
12-54 [all unpaid] renewal [fees and a] fee that is equal to two times
12-55 the normally required [the amount of the unpaid] renewal fee [fees
12-56 for the license].
12-57 (d) A person whose [If a person's] license has been expired
12-58 for one year [two years] or more [longer, the person] may not renew
12-59 the license. The person may obtain a new license by complying with
12-60 the requirements and procedures, including the examination
12-61 requirements, for obtaining an original license.
12-62 (e) A person who was licensed in this state, moved to
12-63 another state, and is currently licensed and has been in practice
12-64 in the other state for the two years preceding the date of
12-65 application may obtain a new license without reexamination. The
12-66 person must pay to the commission a fee that is equal to two times
12-67 the normally required renewal fee for the license.
12-68 (f) Not later than the 30th day before the date a person's
12-69 license is scheduled to expire, the commission shall send written
13-1 notice of the impending expiration to the person at the person's
13-2 last known address according to the records of the commission.
13-3 (g) A renewal license will be issued to a licensee as soon
13-4 as is practicable after compliance with this section, and
13-5 fulfillment of insurance, examination, and seminar requirements
13-6 established by this chapter, and submission of any information and
13-7 data the commission may reasonably require.
13-8 (h) [(f)] Renewal [license] fees shall be nonrefundable.
13-9 [(g) At least 15 days before the expiration of a person's
13-10 license the commission shall notify the person in writing of the
13-11 impending license expiration and shall attempt to obtain from the
13-12 person a signed receipt confirming receipt of the notice.]
13-13 SECTION 24. Subchapter D, Chapter 113, Natural Resources
13-14 Code, is amended by adding Section 113.096 to read as follows:
13-15 Sec. 113.096. PROVISIONAL LICENSE. (a) The commission may
13-16 issue a provisional license to an applicant currently licensed in
13-17 another jurisdiction who seeks a license in this state and who:
13-18 (1) has been licensed in good standing for at least
13-19 two years in another jurisdiction, including a foreign country,
13-20 that has licensing requirements substantially equivalent to the
13-21 requirements of this chapter;
13-22 (2) has passed a national or other examination
13-23 recognized by the commission relating to the activities regulated
13-24 under this chapter; and
13-25 (3) is sponsored by a person licensed by the
13-26 commission under this chapter with whom the provisional license
13-27 holder will practice during the time the person holds a provisional
13-28 license.
13-29 (b) The commission may waive the requirement of Subsection
13-30 (a)(3) for an applicant if the commission determines that
13-31 compliance with that subsection would be a hardship to the
13-32 applicant.
13-33 (c) A provisional license is valid until the date the
13-34 commission approves or denies the provisional license holder's
13-35 application for a license. The commission shall issue a license
13-36 under this chapter to the provisional license holder if:
13-37 (1) the provisional license holder is eligible to be
13-38 licensed under Section 113.095; or
13-39 (2) the provisional license holder:
13-40 (A) passes the part of the examination under
13-41 Section 113.087 that relates to the applicant's knowledge and
13-42 understanding of the laws and rules relating to the activities
13-43 regulated under this chapter in this state;
13-44 (B) meets the academic and experience
13-45 requirements for a license under this chapter; and
13-46 (C) satisfies any other licensing requirements
13-47 under this chapter.
13-48 (d) The commission must approve or deny a provisional
13-49 license holder's application for a license not later than the 180th
13-50 day after the date the provisional license is issued. The
13-51 commission may extend the 180-day period if the results of an
13-52 examination have not been received by the commission before the end
13-53 of that period.
13-54 (e) The commission may establish a fee for provisional
13-55 licenses in an amount reasonable and necessary to cover the cost of
13-56 issuing the license.
13-57 SECTION 25. Subsections (d) and (h), Section 113.097,
13-58 Natural Resources Code, are amended to read as follows:
13-59 (d) Each [category "C," "E," "H," or "J"] licensee under
13-60 Section 113.082(a)(3), (5), (8), or (10) must carry motor vehicle
13-61 bodily injury and property damage liability coverage on each motor
13-62 vehicle, including trailers and semitrailers, used to transport
13-63 LP-gas. The commission shall establish by rule a reasonable amount
13-64 of coverage to be maintained, except that coverage shall not be
13-65 less than the amounts required as evidence of financial
13-66 responsibility under Chapter 601, Transportation Code.
13-67 (h) As required by commission rule, a [category "A," "B,"
13-68 "C," "E," or "O"] licensee under Section 113.082(a)(1), (2), (3),
13-69 (5), or (15) must carry completed operations or products liability
14-1 insurance, or both, in a reasonable amount, based on the type or
14-2 types of licensed activities.
14-3 SECTION 26. Subsections (a) and (c), Section 113.098,
14-4 Natural Resources Code, are amended to read as follows:
14-5 (a) As evidence that required insurance has been secured and
14-6 is in force, certificates of insurance which are approved by the
14-7 commission [division] shall be filed with the commission [division]
14-8 before licensing, license renewal, and during the entire period
14-9 that the license is in effect. Any document filed with the
14-10 commission [division] in a timely manner which is not completed in
14-11 accordance with the instructions indicated on the insurance
14-12 certificate forms supplied by the commission [division], but which
14-13 complies with the substantive requirements of this section and with
14-14 the rules adopted under this section may be considered by the
14-15 commission [division] to be evidence that required insurance has
14-16 been secured and is in force for a temporary period not to exceed
14-17 45 days. During this temporary period, a licensee shall file with
14-18 the commission [division] an amended certificate of insurance which
14-19 complies with all procedural and substantive requirements of this
14-20 section and the rules adopted hereunder.
14-21 (c) Cancellation of a certificate of insurance becomes
14-22 effective on the occurrence of any of the following events and not
14-23 before:
14-24 (1) commission [division] receipt of written notice
14-25 stating the insurer's intent to cancel a policy of insurance and
14-26 the passage of time equivalent to the notice period required by law
14-27 to be given the insured before the insurance cancellation;
14-28 (2) receipt by the commission [division] of an
14-29 acceptable replacement insurance certificate;
14-30 (3) voluntary surrender of a license and the rights
14-31 and privileges conferred by the license;
14-32 (4) commission [division] receipt of a statement made
14-33 by a licensee stating that the licensee is not actively engaging in
14-34 any operations which require a particular type of insurance and
14-35 will not engage in those operations unless and until all
14-36 certificates of required insurance applicable to those operations
14-37 are filed with the commission [division]; or
14-38 (5) written order of commission.
14-39 SECTION 27. Subsections (a) through (d), Section 113.099,
14-40 Natural Resources Code, are amended to read as follows:
14-41 (a) A [category "C," "E," "H," or "J"] licensee or an
14-42 applicant for a license under Sections 113.082(a)(3), (5), (8), or
14-43 (10) that does not operate or contemplate the operation of a motor
14-44 vehicle equipped with an LP-gas cargo container and does not
14-45 transport or contemplate the transportation of LP-gas by vehicle in
14-46 any manner, may make and file with the commission [division] a
14-47 statement to that effect in lieu of filing a certificate of motor
14-48 vehicle bodily injury and property damage insurance.
14-49 (b) A licensee or an applicant for a license that does not
14-50 engage in or contemplate engaging in any operations which would be
14-51 covered by general liability insurance for a period of time may
14-52 make and file with the commission [division] a statement to that
14-53 effect in lieu of filing a certificate of general liability
14-54 insurance.
14-55 (c) A licensee or an applicant for a license that does not
14-56 employ or contemplate the hiring of an employee or employees to be
14-57 engaged in LPG-related activities in this state may make and file
14-58 with the commission [division] a statement to that effect in lieu
14-59 of filing evidence of coverage of workers' compensation or other
14-60 alternative form of coverage as provided in this subchapter.
14-61 (d) A [category "A," "B," "C," "E," or "O"] licensee or an
14-62 applicant for a license under Section 113.082(a)(1), (2), (3), (5),
14-63 or (15) that does not engage in or contemplate engaging in any
14-64 LP-gas operations which would be covered by completed operations or
14-65 products liability insurance, or both, for a period of time may
14-66 make and file with the commission [division] a statement to that
14-67 effect in lieu of filing a certificate of insurance.
14-68 SECTION 28. The heading to Subchapter F, Chapter 113,
14-69 Natural Resources Code, is amended to read as follows:
15-1 SUBCHAPTER F. DISCIPLINARY ACTION [SUSPENSION AND REVOCATION OF
15-2 LICENSES AND REGISTRATIONS]
15-3 SECTION 29. Subsection (e), Section 113.161, Natural
15-4 Resources Code, is amended to read as follows:
15-5 (e) If the commission [or division] determines that the
15-6 probable violation or noncompliance constitutes an immediate danger
15-7 to the public health, safety, and welfare, it shall require the
15-8 immediate cessation of the probable violation or noncompliance and
15-9 proceed with a hearing as provided in Section 113.162 of this code.
15-10 SECTION 30. Section 113.163, Natural Resources Code, is
15-11 amended to read as follows:
15-12 Sec. 113.163. FINDINGS AND JUDGMENT. (a) The [If the]
15-13 commission shall revoke, suspend, or refuse to renew a license or
15-14 registration or shall reprimand a licensee or registrant if the
15-15 commission finds that the licensee or registrant has violated or
15-16 failed to comply with or is violating or failing to comply with
15-17 this chapter or a rule or standard promulgated and adopted under
15-18 this chapter[, or both, the commission may suspend the license or
15-19 registration for a definite period not to exceed 90 days or may
15-20 revoke the license or registration. If the commission determines
15-21 that no violation has occurred or is occurring, its order shall so
15-22 state. Whenever a license or registration is revoked by order of
15-23 the commission, a new license or registration shall not be issued
15-24 for at least 90 days from the effective date of the order. Such
15-25 time period shall be stated in the order].
15-26 (b) The commission may place on probation a person whose
15-27 license or registration is [has been] suspended. If a license or
15-28 registration suspension is probated, the commission may require the
15-29 person:
15-30 (1) to report regularly to the commission on matters
15-31 that are the basis of the probation;
15-32 (2) to limit practice to the areas prescribed by the
15-33 commission; or
15-34 (3) to continue or review professional education until
15-35 the person attains a degree of skill satisfactory to the commission
15-36 in those areas that are the basis of the [under Subsection (a) of
15-37 this section for a definite period not to exceed one year, but if
15-38 the commission does place the licensee or registrant on probation
15-39 and does allow him to continue to operate, the fact that the
15-40 license or registration has been suspended and the licensee or
15-41 registrant has been put on probation shall appear in the records of
15-42 the commission relating to the suspension and] probation.
15-43 SECTION 31. Subsection (b), Section 113.233, Natural
15-44 Resources Code, is amended to read as follows:
15-45 (b) Any authorized representative of the commission [LP-Gas
15-46 Division] may enter any buildings or premises where an accident has
15-47 occurred in which LP-gas was a probable cause for purposes of
15-48 investigating the cause, origin, and circumstances of such
15-49 accident. The commission [LP-Gas Division] may request that any
15-50 state or local authority having jurisdiction take appropriate
15-51 action, to the extent permitted by law, as may be necessary for
15-52 preservation of property and premises.
15-53 SECTION 32. Subsection (b), Section 113.243, Natural
15-54 Resources Code, as amended by Section 2, Chapter 496, Acts of the
15-55 75th Legislature, Regular Session, 1997, is amended to read as
15-56 follows:
15-57 (b) The fund consists of money from:
15-58 (1) fees charged under this subchapter;
15-59 (2) the penalties for the late payment of the fee
15-60 charged under this subchapter;
15-61 (3) gifts, grants, or other assistance received by the
15-62 commission from any source for the purposes of this subchapter;
15-63 (4) interest earned on amounts in the fund;
15-64 (5) amounts collected by the commission under an
15-65 agreement with another state in accordance with Section 113.246(e);
15-66 [and]
15-67 (6) assessments, rebates on assessments, and other
15-68 money collected by the commission under the Propane Education and
15-69 Research Act of 1996 (15 U.S.C. Section 6401 et seq.) or other
16-1 applicable federal law; and
16-2 (7) fees, royalties, or other things of value received
16-3 from the items described by Subsections (f)(1)(A)-(D).
16-4 SECTION 33. Section 113.243, Natural Resources Code, is
16-5 amended by amending Subsections (c) and (d) and adding Subsections
16-6 (f) and (g) to read as follows:
16-7 (c) The fund may be used only by the commission to pay for
16-8 activities relating to the specific fuel from which the fee,
16-9 royalty, or other thing of value was derived or the specific fuel,
16-10 if any, for which the gift, grant, or other assistance is given,
16-11 including direct and indirect costs relating to:
16-12 (1) researching all possible uses of LPG and other
16-13 environmentally beneficial alternative fuels to enhance air
16-14 quality;
16-15 (2) researching, developing, and implementing
16-16 marketing, advertising, and informational programs relating to
16-17 alternative fuels to make alternative fuels more understandable and
16-18 readily available to consumers;
16-19 (3) developing and implementing conservation and
16-20 distribution plans to minimize the frequency and severity of
16-21 disruptions in the supply of alternative fuels;
16-22 (4) developing a public information plan that will
16-23 provide advisory services relating to alternative fuels to
16-24 consumers;
16-25 (5) developing voluntary participation plans to
16-26 promote the use of alternative fuels by federal, state, and local
16-27 agencies;
16-28 (6) implementing consumer incentive or rebate programs
16-29 developed pursuant to Section 113.2435 of this subchapter;
16-30 (7) other functions the commission determines are
16-31 necessary to add a program established by the commission for the
16-32 purpose of promoting the use of LPG or other environmentally
16-33 beneficial alternative fuels; and
16-34 (8) the administrative costs incurred by the
16-35 commission under this subchapter.
16-36 (d) If a specific fee, royalty, gift, grant, other thing of
16-37 value, or other assistance is designated for or collected from
16-38 discrete components of the alternative fuels industry, the fee,
16-39 royalty, gift, grant, other thing of value, or other assistance
16-40 shall be deposited in a separate account in the fund.
16-41 (f) The commission may:
16-42 (1) apply for, register, secure, hold, and protect
16-43 under the laws of a state, the United States, or a foreign country
16-44 a patent, copyright, trademark, or other evidence of protection or
16-45 exclusivity issued for an idea, publication, or other original
16-46 innovation fixed in a tangible medium, including:
16-47 (A) a logo;
16-48 (B) a service mark;
16-49 (C) a study;
16-50 (D) an engineering, architectural, or graphic
16-51 design;
16-52 (E) a manual;
16-53 (F) automated systems software;
16-54 (G) an audiovisual work; or
16-55 (H) a sound recording;
16-56 (2) enter into a license agreement with a third party
16-57 in return for a fee, royalty, or other thing of value; and
16-58 (3) waive or reduce the amount of a fee, royalty, or
16-59 other thing of value to be assessed if the commission determines
16-60 that the waiver will:
16-61 (A) further the goals and missions of the
16-62 commission's division responsible for alternative fuels research
16-63 and education; and
16-64 (B) result in a net benefit to the state.
16-65 (g) Money received under Subsection (f) shall be deposited
16-66 in a separate account in the fund as provided by Subsection (d),
16-67 except that any money received by the commission from the items
16-68 described by Subsections (f)(1)(E)-(H) shall be deposited in the
16-69 general revenue fund.
17-1 SECTION 34. Subchapter J, Chapter 113, Natural Resources
17-2 Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular
17-3 Session, 1993, is redesignated as Subchapter K, and the heading to
17-4 that subchapter is amended to read as follows:
17-5 SUBCHAPTER K [J]. LIABILITY OF LICENSE HOLDER
17-6 SECTION 35. Subchapter B, Chapter 116, Natural Resources
17-7 Code, is amended by adding Section 116.016 to read as follows:
17-8 Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) The
17-9 commission may not adopt rules restricting advertising or
17-10 competitive bidding by a licensee or registrant except to prohibit
17-11 false, misleading, or deceptive practices.
17-12 (b) In its rules to prohibit false, misleading, or deceptive
17-13 practices, the commission may not include a rule that:
17-14 (1) restricts the use of any medium for advertising;
17-15 (2) restricts the use of a licensee or registrant's
17-16 personal appearance or voice in an advertisement;
17-17 (3) relates to the size or duration of an
17-18 advertisement by the licensee or registrant; or
17-19 (4) restricts the licensee or registrant's
17-20 advertisement under a trade name.
17-21 SECTION 36. Subsection (b), Section 116.032, Natural
17-22 Resources Code, is amended to read as follows:
17-23 (b) The commission by rule may establish reasonable fees for
17-24 each category of license. [A license fee may not exceed $1,000.]
17-25 SECTION 37. Section 116.033, Natural Resources Code, is
17-26 amended to read as follows:
17-27 Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) The
17-28 commission shall adopt rules establishing procedures for submitting
17-29 and processing applications for issuance and renewal of licenses
17-30 and for registration.
17-31 (b) A person who is otherwise eligible to renew a license or
17-32 registration may renew an unexpired license or registration by
17-33 paying the required renewal fee to the commission before the
17-34 expiration date of the license or registration. A person whose
17-35 license or registration has expired may not engage in activities
17-36 that require a license or registration until the license or
17-37 registration has been renewed.
17-38 (c) A person whose license or registration has been expired
17-39 for 90 days or less may renew the license or registration by paying
17-40 to the commission a renewal fee that is equal to 1-1/2 times the
17-41 normally required renewal fee.
17-42 (d) A person whose license or registration has been expired
17-43 for more than 90 days but less than one year may renew the license
17-44 or registration by paying to the commission a renewal fee that is
17-45 equal to two times the normally required renewal fee.
17-46 (e) A person whose license or registration has been expired
17-47 for one year or more may not renew the license or registration.
17-48 The person may obtain a new license or registration by complying
17-49 with the requirements and procedures, including the examination
17-50 requirements, for obtaining an original license or registration.
17-51 (f) A person who was licensed or registered in this state,
17-52 moved to another state, and is currently licensed or registered and
17-53 has been in practice in the other state for the two years preceding
17-54 the date of application may obtain a new license or registration
17-55 without reexamination. The person must pay to the commission a fee
17-56 that is equal to two times the normally required renewal fee for
17-57 the license or registration.
17-58 (g) Not later than the 30th day before the date a person's
17-59 license or registration is scheduled to expire, the commission
17-60 shall send written notice of the impending expiration to the person
17-61 at the person's last known address according to the records of the
17-62 commission.
17-63 SECTION 38. Section 116.034, Natural Resources Code, is
17-64 amended by adding Subsections (d) through (h) to read as follows:
17-65 (d) Not later than the 30th day after the date a person
17-66 takes a licensing or registration examination under this chapter,
17-67 the commission shall notify the person of the results of the
17-68 examination.
17-69 (e) If the examination is graded or reviewed by a testing
18-1 service:
18-2 (1) the commission shall notify the person of the
18-3 results of the examination not later than the 14th day after the
18-4 date the commission receives the results from the testing service;
18-5 and
18-6 (2) if notice of the examination results will be
18-7 delayed for longer than 90 days after the examination date, the
18-8 commission shall notify the person of the reason for the delay
18-9 before the 90th day.
18-10 (f) The commission may require a testing service to notify a
18-11 person of the results of the person's examination.
18-12 (g) If requested in writing by a person who fails a
18-13 licensing or registration examination administered under this
18-14 chapter, the commission shall furnish the person with an analysis
18-15 of the person's performance on the examination.
18-16 (h) The commission shall recognize, prepare, or administer
18-17 continuing education programs for its licensees and registrants. A
18-18 licensee or registrant must participate in the programs to the
18-19 extent required by the commission to keep the person's license.
18-20 SECTION 39. Subchapter C, Chapter 116, Natural Resources
18-21 Code, is amended by adding Sections 116.0345 and 116.0346 to read
18-22 as follows:
18-23 Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. The
18-24 commission may waive any prerequisite to obtaining a license or
18-25 registration for an applicant after reviewing the applicant's
18-26 credentials and determining that the applicant holds a license or
18-27 registration issued by another jurisdiction that has licensing
18-28 requirements substantially equivalent to those of this state.
18-29 Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION.
18-30 (a) The commission may issue a provisional license or registration
18-31 to an applicant currently licensed or registered in another
18-32 jurisdiction who seeks a license or registration in this state and
18-33 who:
18-34 (1) has been licensed or registered in good standing
18-35 for at least two years in another jurisdiction, including a foreign
18-36 country, that has licensing or registration requirements
18-37 substantially equivalent to the requirements of this chapter;
18-38 (2) has passed a national or other examination
18-39 recognized by the commission relating to the activities regulated
18-40 under this chapter; and
18-41 (3) is sponsored by a person licensed or registered by
18-42 the commission under this chapter with whom the provisional license
18-43 or registration holder will practice during the time the person
18-44 holds a provisional license or registration.
18-45 (b) The commission may waive the requirement of Subsection
18-46 (a)(3) for an applicant if the commission determines that
18-47 compliance with that subsection would be a hardship to the
18-48 applicant.
18-49 (c) A provisional license or registration is valid until the
18-50 date the commission approves or denies the provisional license or
18-51 registration holder's application for a license or registration.
18-52 The commission shall issue a license or registration under this
18-53 chapter to the provisional license or registration holder if:
18-54 (1) the provisional license or registration holder is
18-55 eligible to be licensed or registered under Section 116.0345; or
18-56 (2) the provisional license or registration holder:
18-57 (A) passes the part of the examination under
18-58 Section 116.034 that relates to the applicant's knowledge and
18-59 understanding of the laws and rules relating to the activities
18-60 regulated under this chapter in this state;
18-61 (B) meets the academic and experience
18-62 requirements for a license or registration under this chapter; and
18-63 (C) satisfies any other licensing or
18-64 registration requirements under this chapter.
18-65 (d) The commission must approve or deny a provisional
18-66 license or registration holder's application for a license or
18-67 registration not later than the 180th day after the date the
18-68 provisional license or registration is issued. The commission may
18-69 extend the 180-day period if the results of an examination have not
19-1 been received by the commission before the end of that period.
19-2 (e) The commission may establish a fee for provisional
19-3 licenses or registrations in an amount reasonable and necessary to
19-4 cover the cost of issuing the license or registration.
19-5 SECTION 40. The heading to Section 116.037, Natural
19-6 Resources Code, is amended to read as follows:
19-7 Sec. 116.037. DISCIPLINARY ACTION [SUSPENSION AND REVOCATION
19-8 OF LICENSE].
19-9 SECTION 41. Section 116.037, Natural Resources Code, is
19-10 amended by amending Subsections (f) and (g) and adding Subsection
19-11 (h) to read as follows:
19-12 (f) The [If the] commission shall revoke, suspend, or refuse
19-13 to renew the license or registration or shall reprimand the
19-14 licensee or registrant if the commission finds that the licensee or
19-15 registrant has violated or failed to comply with or is violating or
19-16 failing to comply with this chapter or a rule adopted under this
19-17 chapter[, the commission may suspend the license or registration
19-18 for a definite period not to exceed 90 days or may revoke the
19-19 license].
19-20 (g) The commission may place on probation a person whose
19-21 license or registration is suspended. If a license or registration
19-22 suspension is probated, the commission may require the person:
19-23 (1) to report regularly to the commission on matters
19-24 that are the basis of the probation;
19-25 (2) to limit practice to the areas prescribed by the
19-26 commission; or
19-27 (3) to continue or review professional education until
19-28 the person attains a degree of skill satisfactory to the commission
19-29 in those areas that are the basis of the probation.
19-30 (h) Any party to a proceeding before the commission is
19-31 entitled to judicial review under the substantial evidence rule.
19-32 SECTION 42. Subtitle D, Title 3, Natural Resources Code, is
19-33 amended by adding Chapter 118 to read as follows:
19-34 CHAPTER 118. PIPELINE ASSESSMENT AND TESTING
19-35 Sec. 118.001. AUTHORITY TO REQUIRE PLAN FOR PIPELINE
19-36 ASSESSMENT OR TESTING. (a) The Railroad Commission of Texas by
19-37 rule may require an operator to file for commission approval a plan
19-38 for assessment or testing of a pipeline if the commission finds
19-39 that:
19-40 (1) there is reason to believe that the pipeline may
19-41 present a hazard to public health or safety;
19-42 (2) the commission lacks adequate information to
19-43 assess the risk to public health or safety presented by the
19-44 pipeline; or
19-45 (3) a plan is necessary for the commission to initiate
19-46 or complete a pipeline safety investigation.
19-47 (b) The Railroad Commission of Texas may take enforcement
19-48 action against a person who fails to:
19-49 (1) submit a required plan; or
19-50 (2) participate in a pipeline safety investigation.
19-51 Sec. 118.002. PIPELINES FOR WHICH PLAN MAY BE REQUIRED. The
19-52 rules adopted under this chapter may apply to interstate pipelines,
19-53 intrastate pipelines, portions of pipeline systems the regulation
19-54 of which the federal government has temporarily delegated to the
19-55 Railroad Commission of Texas, or gathering lines, and to pipelines
19-56 for the transportation of any substance or material under the
19-57 jurisdiction of the commission, as specified by the commission.
19-58 Sec. 118.003. CONTENTS OF PLAN. The rules adopted under
19-59 this chapter may require that a plan include:
19-60 (1) an identification of risk factors associated with
19-61 a pipeline system, including population density;
19-62 (2) information about prior inspections and
19-63 maintenance;
19-64 (3) information about pressure tests;
19-65 (4) information about leaks;
19-66 (5) information about operating characteristics;
19-67 (6) information about corrosion protection methods;
19-68 and
19-69 (7) other information that may assist the Railroad
20-1 Commission of Texas in assessing the risk to public health or
20-2 safety presented by the pipeline.
20-3 Sec. 118.004. APPROVAL OF PLAN. The Railroad Commission of
20-4 Texas may approve a plan that complies with rules adopted under
20-5 this chapter.
20-6 Sec. 118.005. CONSEQUENCES OF PLAN APPROVAL. The approval
20-7 of a plan by the Railroad Commission of Texas does not constitute a
20-8 certification or representation that the pipeline is in compliance
20-9 with or exempt from applicable safety standards.
20-10 SECTION 43. Subchapter A, Chapter 102, Utilities Code, is
20-11 amended by adding Section 102.006 to read as follows:
20-12 Sec. 102.006. POWERS AND DUTIES OF STATE OFFICE OF
20-13 ADMINISTRATIVE HEARINGS. (a) The utility division of the State
20-14 Office of Administrative Hearings shall conduct each hearing in a
20-15 contested case that is not conducted by one or more members of the
20-16 railroad commission.
20-17 (b) The railroad commission may delegate to the utility
20-18 division of the State Office of Administrative Hearings the
20-19 authority to make a final decision and to issue findings of fact,
20-20 conclusions of law, and other necessary orders in a proceeding in
20-21 which there is not a contested issue of fact or law.
20-22 (c) The railroad commission by rule shall define the
20-23 procedures by which it delegates final decision-making authority
20-24 under Subsection (b).
20-25 (d) For purposes of judicial review, an administrative law
20-26 judge's final decision under Subsection (b) has the same effect as
20-27 a final decision of the railroad commission unless a member of the
20-28 commission requests formal review of the decision.
20-29 SECTION 44. Section 104.107, Utilities Code, is amended by
20-30 amending Subsection (b) and adding Subsection (c) to read as
20-31 follows:
20-32 (b) The 150-day period prescribed by Subsection (a)(2) shall
20-33 be extended for two days for each day the actual hearing on the
20-34 merits of the case exceeds 15 days.
20-35 (c) If the regulatory authority does not make a final
20-36 determination concerning a schedule of rates before expiration of
20-37 the applicable suspension period, the regulatory authority is
20-38 considered to have approved the schedule. This approval is subject
20-39 to the authority of the regulatory authority thereafter to continue
20-40 a hearing in progress.
20-41 SECTION 45. Section 121.206, Utilities Code, is amended by
20-42 amending Subsection (c) and adding Subsection (d) to read as
20-43 follows:
20-44 (c) In determining the amount of the penalty, the railroad
20-45 commission shall consider the guidelines adopted under Subsection
20-46 (d).
20-47 (d) The railroad commission by rule shall adopt guidelines
20-48 to be used in determining the amount of a penalty under this
20-49 subchapter. The guidelines shall include a penalty calculation
20-50 worksheet that specifies the typical penalty for certain
20-51 violations, circumstances justifying enhancement of a penalty and
20-52 the amount of the enhancement, and circumstances justifying a
20-53 reduction in a penalty and the amount of the reduction. The
20-54 guidelines shall take into account:
20-55 (1) the person's history of previous violations of
20-56 Section 121.201 or a safety standard or rule relating to the
20-57 transportation of gas and gas pipeline facilities adopted under
20-58 that section, including the number of previous violations;
20-59 (2) the seriousness of the violation and of any
20-60 pollution resulting from the violation; [and]
20-61 (3) any hazard to the health or safety of the public;
20-62 (4) the degree of culpability;
20-63 (5) the demonstrated good faith of the person charged;
20-64 and
20-65 (6) any other factor the commission considers
20-66 relevant.
20-67 SECTION 46. Subchapter C, Chapter 2003, Government Code, is
20-68 amended by adding Section 2003.0491 to read as follows:
20-69 Sec. 2003.0491. RAILROAD COMMISSION HEARINGS. The utility
21-1 division shall conduct contested case hearings and may make final
21-2 decisions and issue findings of fact, conclusions of law, and other
21-3 necessary orders in other proceedings on behalf of the Railroad
21-4 Commission of Texas as provided by Section 102.006, Utilities Code.
21-5 The provisions of Section 2003.049 apply to a proceeding under this
21-6 section except as otherwise provided by Section 102.006, Utilities
21-7 Code.
21-8 SECTION 47. The following laws are repealed:
21-9 (1) Chapter 93, Natural Resources Code;
21-10 (2) Subdivision (2), Section 113.002, and Sections
21-11 113.012 and 113.013, Natural Resources Code;
21-12 (3) Subsection (b), Section 113.243, Natural Resources
21-13 Code, as amended by Section 1, Chapter 496, Acts of the 75th
21-14 Legislature, Regular Session, 1997; and
21-15 (4) Section 113.246, Natural Resources Code, as
21-16 amended by Section 6, Chapter 496, Acts of the 75th Legislature,
21-17 Regular Session, 1997.
21-18 SECTION 48. (a) Except as otherwise provided by this Act,
21-19 this Act takes effect September 1, 2001.
21-20 (b) Section 102.006, Utilities Code, as added by this Act,
21-21 and Section 2003.0491, Government Code, as added by this Act, apply
21-22 only to a contested case filed at the Railroad Commission of Texas
21-23 on or after the effective date of this Act. A contested case filed
21-24 at the commission before that date is governed by the law in effect
21-25 at the time the case is filed, and the former law is continued in
21-26 effect for that purpose.
21-27 * * * * *