This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0815.ACR
DATE: 1/17/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 815 Sale of Liquefied Petroleum Gas
SPONSOR(S): Smith
TIED BILLS: IDEN./SIM. BILLS: SB 998
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Agriculture, Conservation & Resiliency
Subcommittee
Gawin Moore
2) Infrastructure Strategies Committee
SUMMARY ANALYSIS
Liquefied petroleum (LP) gas is any material that is composed predominantly of any of the following
hydrocarbons, or mixtures of the same: propane, propylene, butanes, and butylenes. The Department of
Agriculture and Consumer Services (DACS) is responsible for licensing individuals and businesses that sell,
transport, dispense, or store LP gas or that manufacture, install, service, or repair LP gas containers, systems,
or appliances.
To engage in LP gas-related activities such as sales, installations, service and repair work, manufacture of
equipment, and other miscellaneous activities, a business must follow certain licensing requirements. Licenses
are divided into categories I through VI based on the activity the business is involved in. Every business
organization in LP license category I, category II, or category V is required to employ a full-time qualifier who
has successfully completed the competency exam in the corresponding category of the license held by the
business organization. Additionally, each category I and category V licensee is required, at the time of
application for licensure, to identify to DACS one master qualifier who is a full-time employee at the licensed
location. As a prerequisite to obtaining a LP gas license, each person who engages in distribution of LP gas for
resale to domestic, commercial, or industrial consumers is required to install, own, or lease a bulk storage
filling plant of not less than 18,000 gallons (water capacity) within the state and located within a 75-mile radius
of the licensed company’s business location.
The bill specifies that a category I LP gas dealer license may include up to two remote bulk storage locations to
meet the minimum bulk storage requirements and requires a remote bulk storage location to be documented
and located within 75 miles of the licensed location.
The bill revises requirements related to licensed qualifiers, including when a competency exam must be
completed and the required qualifications to be employed in certain roles. The bill also specifies that a qualifier
may only oversee one storage location and must function in a position with authority to monitor and enforce
safety provisions.
The bill authorizes DACS to condemn unsafe equipment and order the immediate removal of LP gas from
storage that does not comply with statutory regulations and is deemed a threat to the public health, safety, and
welfare.
The bill specifies what information must be included in work order, invoice, or similar documents when a
person services, repairs, maintains, or installs LP gas equipment and systems. Additionally, the bill prohibits a
person, other than those authorized by the end user, from adding gas to or removing gas from any container or
receptacle that contains LP gas purchased or contracted for transfer by, and in the lawful possession of, the
end user. DACS must adopt rules to provide exceptions for emergencies.
The bill may have an insignificant negative fiscal impact on state government. STORAGE NAME: h0815.ACR PAGE: 2
DATE: 1/17/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Liquefied Petroleum (LP) Gas
LP gas is any material which is composed predominantly of any of the following hydrocarbons, or
mixtures of the same: propane, propylene, butanes, and butylenes.
1
LP gasses can be used as a fuel
gas for heating appliances, cooking, or vehicles. The Department of Agriculture and Consumer
Services (DACS) is responsible for licensing individuals and businesses that sell, transport, dispense,
or store LP gas or that manufacture, install, service, or repair LP gas containers, systems, or
appliances.
2
DACS also inspects facilities where LP gas is sold or stored and investigates accidents
involving LP gas or equipment.
3
LP Gas Licensing
To engage in LP gas-related activities such as sales, installations, service and repair work,
manufacture of equipment, and other miscellaneous activities, a business must follow certain licensing
requirements.
4
It is a third-degree felony
5
to intentionally or willfully engage in any LP gas-related
activities without first obtaining the appropriate licensure from DACS.
6
Businesses with multiple
locations must have a separate license for each location.
7
DACS grants licenses to applicants after
determining that the applicant is competent, qualified, and trustworthy.
8
An applicant is required to file a
surety bond, insurance affidavit, or other proof of insurance with DACS.
9
The LP license categories and associated license fees are as follows:
10
License Category Annual License Fee
Category I LP Gas Dealer $400
Category II LP Gas Dispenser $400
Category III LP Gas Cylinder Exchange Unit
Operator
$65
Category IV Dealer in Appliances and
Equipment
$65
Category V LP Gas Installer $200
Category VI Miscellaneous Operator $200
All licenses must be renewed annually, biennially, or triennially at the rates provided for in the above
chart.
11
1
Section 527.01(1), F.S.
2
Section 527.055, F.S.
3
Section 527.055(3), F.S.
4
See ch. 527, F.S.
5
A third-degree felony is punishable by up to five years in prison or a fine up to $5,000. Sections 775.082(3)(e) and 775.083(1)(c),
F.S. Additionally, a person who commits three or more felonies is subject to habitual offender sentencing guidelines. See Section
775.084, F.S.
6
Section 527.02(1), F.S.
7
Section 527.02(2), F.S.
8
Id. DACS determines lack of trustworthiness as evidenced by an applicant or licensee having a conviction or pleading nolo
contendere to a felony involving moral turpitude or an established and repeated history of intentional non-compliance with the
applicable safety standards set forth in ch. 527, F.S., or duly adopted rules and regulations of DACS. Rule 5J-20.005, F.A.C.
9
Id.
10
Section 527.02(2), F.S.
11
Section 527.03, F.S. When an applicant renews their license biennially or triennially, the rate fee is an accumulation of cost of those
years. For example, a Category I LP gas dealer renewing biennially or triennially would pay $800 or $1,200, respectively. DACS,
Liquefied Petroleum Gas Licenses, https://www.fdacs.gov/Business-Services/LP-Gas-Licenses (last visited Jan. 10, 2024). STORAGE NAME: h0815.ACR PAGE: 3
DATE: 1/17/2024
Additionally, a person applying for a license to engage in category I, category II, or category V activities
is required to prove competency by passing a written examination administered by DACS or its agent
and pass with a grade of 70 percent or above in each tested area.
12
Any person engaged in the business of servicing, testing, repairing, maintaining, or installing LP gas
equipment and systems must initially present proof of licensure to consumers, owners, or end users
prior to working on such equipment or system.
13
Licensure must also be presented when a consumer,
owner, end user, or person who has authorized such work requests it.
14
A person, other than the owner or those authorized by the owner, cannot sell, fill, refill, remove gas
from, deliver, permit to be delivered, or use in any manner a LP gas container or receptacle for any gas
or compound, or for any other purpose.
15
Qualifiers
Every business organization in LP license category I, category II, or category V is required to employ a
full-time qualifier
16
who has successfully completed the competency exam in the corresponding
category of the license held by the business organization.
17
The qualifier must function in a supervisory
capacity of other company employees performing licensed activities,
18
and there must be a separate
qualifier for every 10 such employees at the location.
19
A person may not act as a qualifier for more
than one licensed location.
20
Additionally, each category I and category V licensee is required, at the time of application for
licensure, to identify to DACS one master qualifier who is a full-time employee at the licensed
location.
21
To apply to be a master qualifier, the applicant must have a minimum of three years of
verifiable LP gas experience or other specified professional certification, must be employed by a
licensed category I or category V licensee or applicant for such license, and must pass a master
qualifier competency examination administered by DACS.
22
The applicant must pass the exam with a
grade of 70 percent or higher.
23
The master qualifier must be a manager, owner, or otherwise primarily
responsible for overseeing the operations for the licensed location.
24
Both qualifiers and master qualifiers are required to earn continuing education credits as part of
maintaining their licensure.
25
LP Gas Storage
Chapter 527, F.S., which regulates the sale of LP gas, applies to a bulk storage location when a single
container in the bulk storage location has a capacity of 2,000 gallons or more; the aggregate container
capacity of the bulk storage location is 4,000 gallons or more; or a container or containers are installed
for the purpose of serving the liquid product to the public.
26
As a prerequisite to obtaining a LP gas license, each person who engages in the distribution of LP gas
for resale to domestic, commercial, or industrial consumers is required to install, own, or lease a bulk
12
Section 527.0201(1), F.S.
13
Section 527.067(1), F.S.
14
Id.
15
Section 527.07, F.S.
16
“Qualifier” means any person who has passed a competency examination administered by DACS and is employed by a licensed
category I, category II, or category V business. Section 527.01(5), F.S.
17
Section 527.0201(2)(b), F.S.
18
Section 527.0201(3), F.S.
19
Id.
20
Section 527.0201(2)(b), F.S.
21
Section 527.0201(5), F.S.
22
Section 527.0201(5)(a), F.S.
23
Id.
24
Id. DACS, LP Gas Training, https://www.fdacs.gov/Business-Services/LP-Gas-Licenses/LP-Gas-Training (last visited Jan. 10,
2024).
25
Sections 527.0201(3) and 527.0201(5)(c), F.S.
26
Section 527.0605(1), F.S. STORAGE NAME: h0815.ACR PAGE: 4
DATE: 1/17/2024
storage filling plant of not less than 18,000 gallons (water capacity) within the state and located within a
75-mile radius of the licensed company’s business location.
27
Dealers in LP gas who were licensed as
of August 31, 2000, and who enter into a written agreement with a wholesaler
28
that the wholesaler will
provide LP gas to the dealer for a period of 12 continuous months is exempt from these regulations if
certain conditions are met.
29
A wholesaler may not enter into written agreements that allocate an
amount of storage that exceeds the wholesaler’s total storage capacity minus 18,000 gallons (water
capacity).
30
Effect of the Bill
The bill defines “licensed location” to mean the premises on which category I, category II, category III,
category IV, category V, or category VI LP gas operations are performed. Additionally, the bill defines
“remote bulk storage” to mean the location of LP gas stored for the sole purpose of filling delivery
vehicles used in delivery to an end user.
The bill specifies that a category I LP gas dealer license may include up to two remote bulk storage
locations to meet the minimum bulk storage requirements. The bill requires a remote bulk storage
location to be located within 75 miles of the licensed location and requires the bulk storage location to
be included in the category I LP gas dealer license application. Additionally, the bill specifies that each
remote bulk storage location of a category I LP gas dealer must comply with the category I LP gas
dealer licensing requirements.
The bill specifies that a qualifier examination for competency must be completed within 90 days after
the application has been accepted by DACS. In order to apply for certification as a category I or
category V qualifier, the bill requires each applicant to have a minimum of one year of verifiable LP gas
experience. The bill specifies that a person may not act as a qualifier for more than one licensed or
remote bulk storage location. In addition, the bill requires a qualifier for a business to actually function
in a position with authority to monitor and enforce safety provisions under ch. 527, F.S., at the licensed
location.
The bill specifies that a category I or category V licensee must identify one master qualifier who is a
full-time employee of the licensee, rather than a full-time employee at the licensed location. A person is
prohibited from acting as a master qualifier for more than one licensee.
The bill authorizes DACS to have the power and authority to condemn unsafe equipment and order the
immediate removal of LP gas from storage that does not comply with ch. 527, F.S., and is deemed a
threat to the public health, safety, and welfare.
The bill specifies that the provisions of ch. 527, F.S., apply to LP gas bulk storage locations when the
aggregate container capacity of the bulk storage location is more than 4,000 gallons, rather than 4,000
gallons or more.
The bill requires all persons engaged in the business of servicing, testing, repairing, maintaining, or
installing LP gas equipment and systems to include on all work orders, invoices, or similar documents
the name of the person performing the work and the applicable qualifier number.
Additionally, the bill prohibits a person, other than those authorized by the end user, from adding gas to
or removing gas from any container or receptacle that contains LP gas purchased or contracted for
transfer by, and in the lawful possession of, the end user. DACS must adopt rules to provide exceptions
for emergencies.
27
Section 527.11(1), F.S.
28
“Wholesaler” means any person selling or offering to sell any LP gas for industrial, commercial, or domestic use to any person
except the consumer. Section 527.01(13), F.S.
29
Section 527.11(2), F.S.
30
Id. STORAGE NAME: h0815.ACR PAGE: 5
DATE: 1/17/2024
The bill specifies that every person who engages in the distribution of LP gas for resale to domestic,
commercial, or industrial consumers, as a prerequisite to obtaining a LP gas license, must install, own,
or lease bulk storage with an aggregate capacity of not less than 18,000 gallons (water capacity) within
the state. The bill removes the requirement that such storage must be within a 75-mile radius of the
licensed company’s business location. Additionally, the bill removes the minimum storage exemption
for dealers in LP gas licensed as of August 31, 2000.
The bill prohibits a dealer from entering into written agreements that allocate an amount of storage that
exceeds the dealer’s total storage capacity minus 18,000 gallons (water capacity).
B. SECTION DIRECTORY:
Section 1. Amends s. 527.01, F.S., related to sale of LP gas definitions.
Section 2. Amends s. 527.02, F.S., related to LP licenses.
Section 3. Amends s. 527.02, F.S., related to LP licenses.
Section 4. Amends s. 527.0201, F.S., related to LP qualifiers.
Section 5. Amends s. 527.055, F.S., related to DACS general powers and duties.
Section 6. Amends s. 527.0605, F.S., related to LP gas bulk storage locations.
Section 7. Amends s. 527.067, F.S., related to persons engaged in servicing LP gas equipment
and systems.
Section 8. Amends s. 527.07, F.S., related to restriction on use of containers.
Section 9. Amends s. 527.11, F.S., related to minimum storage.
Section 10. Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill may have an insignificant negative fiscal impact on DACS associated with the rulemaking
requirements of the bill that can be absorbed within existing resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
STORAGE NAME: h0815.ACR PAGE: 6
DATE: 1/17/2024
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires DACS to adopt rules to provide exceptions for when a person, other than those
authorized by the end user, may add or remove gas in an emergency.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.