89R3841 SCR-F

By: Morales of Maverick H.B. No. 4041

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 141.009, Utilities Code, is amended to read as follows:

Sec. 141.009. PERFORMANCE GUARANTEE. (a) A distribution system retailer shall post, in favor of the commission, financial surety in the form of a letter of credit, bond, or other acceptable form of financial surety with the commission in an amount equal to the lesser of $3 multiplied by the number of gallons of aggregate storage capacity in all of the propane gas systems operated by the distribution system retailer or $50,000. The issuer of the financial surety used to meet this requirement shall honor the financial surety if the issuer receives from the commission notice that the financial surety is due and payable. The commission may draw down all or a portion of the financial surety. The distribution system retailer shall provide the commission with verification of the adequacy of the financial surety, and the commission may order the distribution system retailer to adjust the amount of the financial surety annually.

(b) A distribution system retailer who does not comply with this section is subject to an administrative penalty as described by Section 141.011.

SECTION 2. Chapter 141, Utilities Code, is amended by adding Sections 141.011 and 141.012 to read as follows:

Sec. 141.011. ADMINISTRATIVE PENALTY. (a) The commission may assess an administrative penalty against a distribution system retailer who violates this chapter or a rule adopted under this chapter.

(b) The penalty for each violation may not exceed $1,000. Each day a violation continues or occurs may be considered a separate violation for the purpose of assessing a penalty, provided that the maximum penalty that may be imposed for any related series of violations may not exceed $10,000.

(c) In determining the amount of the penalty, the commission shall consider:

(1) the distribution system retailer's history of previous violations of this chapter;

(2) the seriousness of the violation; and

(3) any hazard to the health or safety of the public.

Sec. 141.012. ADMINISTRATIVE PENALTY: ASSESSMENT PROCEDURE. (a) An administrative penalty may be assessed under Section 141.011 only after the distribution system retailer has been given an opportunity for hearing.

(b) If a hearing is held, the commission shall make findings of fact and shall issue a written decision as to the occurrence of the violation and the penalty amount warranted by the violation, incorporating, if appropriate, an order requiring that the penalty be paid.

(c) If a distribution system retailer fails to take advantage of the opportunity for a hearing, an administrative penalty may be assessed by the commission after it has determined:

(1) that a violation occurred; and

(2) the penalty amount warranted by the violation.

(d) After assessing the administrative penalty, the commission shall issue an order requiring the penalty to be paid.

(e) Not later than the 30th day after the date an order is issued finding that a violation described by Section 141.011 occurred, the commission shall inform the distribution system retailer found in violation of the amount of the penalty.

SECTION 3. The changes in law made by this Act apply only to a violation that occurs on or after the effective date of this Act. A violation that occurred before the effective date of this Act is governed by the law in effect when the violation occurred, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.