By: Rodriguez of Travis H.B. No. 2470
A BILL TO BE ENTITLED
AN ACT
relating to liability insurance for ammonium nitrate operations;
creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 63.152(b), Agriculture Code, is amended
to read as follows:
(b) An application for a registration submitted by an
applicant who owns an ammonium nitrate facility must be:
(1) submitted on a form prescribed by the service that
includes:
(A) the name, address, and telephone number of
each ammonium nitrate facility owned by the applicant; [and]
(B) the name of the person designated by the
applicant as the point of contact for each facility owned by the
applicant; and
(C) proof of insurance required by Section
63.1525; and
(2) accompanied by a fee in an amount sufficient to
cover the service's costs to administer this subchapter.
SECTION 2. Subchapter I, Chapter 63, Agriculture Code, is
amended by adding Section 63.1525 to read as follows:
Sec. 63.1525. PUBLIC LIABILITY INSURANCE REQUIRED. (a) A
person may not produce, store, transfer, chemically blend, offer
for sale, or sell ammonium nitrate or ammonium nitrate material
unless the person files with the service a public liability
insurance policy issued by an insurance company authorized to
conduct business in this state and considered acceptable by the
Texas Department of Insurance.
(b) The liability insurance policy required by Subsection
(a) must afford bodily injury and property damage protection in an
amount determined by the Texas Department of Insurance to
compensate any person damaged as a result of ammonium nitrate
operations.
(c) A person shall maintain the liability insurance policy
required by this section in effect during:
(1) the term of a certificate of registration issued
to the person under this subchapter; and
(2) any period during which the person is engaged in an
activity described by Subsection (a).
(d) The commissioner of insurance shall coordinate with the
state fire marshal, the Department of State Health Services, the
Office of the Texas State Chemist, and other appropriate state
agencies and officials in studying the risk exposure for activities
related to ammonium nitrate and ammonium nitrate material and
assessing the appropriate liability insurance requirements for a
policy required by Subsection (a) based on risk exposure. In
assessing risk exposure, the commissioner and other agencies and
officials shall consider population density and proximity of the
ammonium nitrate operations to individuals, homes, other
buildings, livestock, and other individuals, places, or creatures
that may suffer damage from ammonium nitrate operations.
SECTION 3. Section 63.154(a), Agriculture Code, is amended
to read as follows:
(a) Before completing a sale of ammonium nitrate or ammonium
nitrate material, a person that engages in those sales shall:
(1) require the person making the purchase to:
(A) display a driver's license or other form of
identification containing the person's photograph;
(B) provide the other personal information
required by Subdivision (2); [and]
(C) provide proof of insurance required by
Section 63.1525; and
(D) sign for the purchase; and
(2) make a record of the sale, including:
(A) the name of the person making the purchase;
(B) the date of the purchase;
(C) the purchaser's address, date of birth, and
phone number;
(D) the form of identification the purchaser
presented;
(E) whether the purchase is being made on behalf
of another person; and
(F) the amount and brand name of the ammonium
nitrate or ammonium nitrate material purchased.
SECTION 4. Section 63.157, Agriculture Code, is amended by
adding Subsection (c-1) and amending Subsection (d) to read as
follows:
(c-1) A person commits an offense if the person produces,
stores, transfers, chemically blends, offers for sale, or sells
ammonium nitrate or ammonium nitrate material without maintaining
liability insurance as provided by this subchapter.
(d) An offense under Subsection (a), [or] (c), or (c-1) is a
Class A misdemeanor.
SECTION 5. Subchapter I, Chapter 63, Agriculture Code, as
amended by this Act, applies only to a person who produces, stores,
transfers, chemically blends, offers for sale, or sells ammonium
nitrate or ammonium nitrate material on or after March 1, 2016. A
person who produces, stores, transfers, chemically blends, offers
for sale, or sells ammonium nitrate or ammonium nitrate material
before March 1, 2016, is governed by the law in effect immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
SECTION 6. This Act takes effect September 1, 2015.