By: Bailes, Harris (Senate Sponsor - Birdwell) H.B. No. 2714
(In the Senate - Received from the House April 11, 2019;
April 15, 2019, read first time and referred to Committee on
Natural Resources & Economic Development; April 25, 2019, reported
favorably by the following vote: Yeas 10, Nays 0; April 25, 2019,
sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the registration of liquefied petroleum gas container
manufacturers and the regulation of liquefied petroleum gas
licensees; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter D, Chapter 113,
Natural Resources Code, is amended to read as follows:
SUBCHAPTER D. LICENSING AND REGISTRATION
SECTION 2. Subchapter D, Chapter 113, Natural Resources
Code, is amended by adding Section 113.080 to read as follows:
Sec. 113.080. DEFINITIONS. In this subchapter:
(1) "Carrier" means a person licensed for
transportation of LP-gas by transport, including the loading and
unloading of LP-gas, and the installation and repair of transport
systems.
(2) "Portable cylinder exchange service" means an
operation conducted under a commission license for the sale of
LP-gas in portable cylinders that are not filled on site and that
have an LP-gas capacity not greater than 21 pounds.
(3) "Retail and wholesale dealer" means a person
licensed for any LP-gas activity except:
(A) the assembly, repair, subframing, or testing
of LP-gas containers; or
(B) the sale or installation of motor fuel
systems or mobile fuel systems that have an engine with a rating of
more than 25 horsepower.
(4) "Testing laboratory" means a person licensed for
testing containers, motor fuel systems or mobile fuel systems,
transfer systems, or transport systems for the purpose of
determining the safety of the containers or systems for LP-gas
service, including the necessary installation, disconnection,
reconnection, testing, or repair of motor fuel systems or mobile
fuel systems, transfer systems, or transport systems involved in
the testing of containers.
(5) "Transport outfitter" means a person licensed to:
(A) subframe, test, or sell LP-gas transport
containers;
(B) test LP-gas storage containers;
(C) install, test, or sell motor fuel containers
and systems or mobile fuel containers and systems;
(D) install transport systems; or
(E) repair transport systems, motor fuel
systems, or mobile fuel systems.
SECTION 3. Sections 113.081(a), (b), (c), (d), and (e),
Natural Resources Code, are amended to read as follows:
(a) Unless otherwise stated in this chapter, a [no] person
may not engage in any of the following activities unless that person
has obtained a license from the commission authorizing that
activity:
(1) container activities: the [manufacture,]
assembly, repair, testing, sale, installation, or subframing of
containers for use in this state, except that a [no] license is not
required for the sale of a new container of 96 pounds water capacity
or less;
(2) systems activities: the installation, service,
and repair of systems for use in this state, including the laying or
connecting of pipes and fittings connecting with or to systems or
serving a system and appliances to be used with LP-gas [liquefied
petroleum gas] as a fuel;
(3) appliance activities: the service, installation,
and repair of appliances used or to be used in this state in
connection with systems using LP-gas [liquefied petroleum gas] as a
fuel, except that a [no] license is not [shall be] required for
installation or connection of manufactured unvented appliances to
LP-gas [LPG] systems by means of LP-gas [LPG] appliance connectors,
or where only duct or electrical work is performed to or on an
LP-gas appliance; or
(4) product activities: the sale, transportation,
dispensation, or storage of LP-gas [liquefied petroleum gas] in
this state, except that a [no] license is not [shall be] required to
sell LP-gas [LPG] where the vendor never obtains possessory rights
to the product sold or where the product is transported or stored by
the ultimate consumer for personal consumption only.
(b) The licensing requirements [provisions] of Subsection
(a) [of this section do not] apply to a person other than a
political subdivision who [is not engaged in business as provided
in Section 113.082 of this code. A person, except a political
subdivision, is considered to be engaged in business as provided in
Section 113.082 of this code if such person] installs or services a
[an LPG] motor fuel system or mobile fuel system on a motor vehicle
used in the transportation of the general public. [The provisions
of] Subsections (a)(1) and (a)(2) [of this section] do not apply to
intermodal containers or intermodal portable tanks constructed in
accordance with United States Department of Transportation
specifications.
(c) The licensing requirements of Subsection (a) do not
apply to a [A mobile home park operator will not be deemed to be a
person engaged in business as provided in Section 113.082 of this
code if such] mobile home park operator who does not obtain any
[obtains no] possessory rights to LP-gas products, and utilizes
only LP-gas licensees in the installation and maintenance of the
LP-gas containers and system. For purposes of this subsection, the
term "mobile home park operator" means an individual or business
entity owning or operating a place, divided into sites, at which the
primary business is the rental or leasing of the sites to persons
for use in occupying mobile homes as dwellings. "Mobile home" has
the meaning set out in Chapter 1201, Occupations Code.
(d) The commission by rule may exempt [from Section
113.082(a)(4) of this code] journeymen or master plumbers licensed
by the Texas State Board of Plumbing Examiners from the license
requirements of Subsection (a).
(e) The commission by rule may exempt [from Section
113.082(a)(4) of this code] a person licensed under Chapter 1302,
Occupations Code, from the license requirements of Subsection (a).
SECTION 4. Subchapter D, Chapter 113, Natural Resources
Code, is amended by adding Section 113.0815 to read as follows:
Sec. 113.0815. REGISTRATION OF CONTAINER MANUFACTURERS AND
FABRICATORS. (a) A person may not engage in the manufacture or
fabrication of containers for use in this state unless the person
registers with the commission in accordance with rules adopted by
the commission.
(b) A registration under this section must be renewed
annually.
SECTION 5. Section 113.082, Natural Resources Code, is
amended to read as follows:
Sec. 113.082. CATEGORIES OF LP-GAS [LPG] ACTIVITIES; FEES.
(a) The commission by rule shall establish license categories for
LP-gas activities [A prospective licensee in LPG may apply to the
commission for a license to engage in any one or more of the
following categories of LPG activities:
[(1) container manufacturers/fabricators: the
manufacture, fabrication, assembly, repair, installation,
subframing, testing, and sale of LPG containers, including LPG
motor or mobile fuel containers and systems, and the repair and
installation of transport and transfer systems;
[(2) transport outfitters: the subframing, testing,
and sale of LPG transport containers, the testing of LPG storage
containers, the installation, testing, and sale of LPG motor or
mobile fuel containers and systems, and the installation and repair
of transport systems, and motor or mobile fuel systems;
[(3) carriers: the transportation of LPG by
transport, including the loading and unloading of LPG, and the
installation and repair of transport systems;
[(4) general installers and repairmen: the sale,
service, and installation of containers, excluding motor fuel
containers, and the service, installation, and repair of piping,
certain appliances as defined by rule, excluding recreational
vehicle appliances and LPG systems, excluding motor fuel and
recreational vehicle systems;
[(5) retail and wholesale dealers: the storage, sale,
transportation, and distribution of LPG at retail and wholesale,
and all other activities included in this section except the
manufacture, fabrication, assembly, repair, subframing, and
testing of LPG containers, and except the sale and installation of
LPG motor or mobile fuel systems that have an engine with a rating
of more than 25 horsepower;
[(6) cylinder filling: the operation of a
cylinder-filling facility, including cylinder filling, the sale of
LPG in cylinders, and the replacement of a cylinder valve;
[(7) service station: the operation of an LPG service
station filling ASME containers designed for motor and mobile fuel;
[(8) cylinder dealers: the transportation and sale of
LPG in cylinders;
[(9) service station and cylinder filling: any
service station and cylinder activity set out in Subdivisions (6)
and (7);
[(10) service station and cylinder facilities: the
operation of a cylinder-filling facility, including cylinder
filling and the sale, transportation, installation, and connection
of LPG in cylinders, the replacement of cylinder valves, and the
operation of an LPG service station as set out in Subdivision (7);
[(11) distribution system: the sale and distribution
of LPG through mains or pipes and the installation and repair of LPG
systems;
[(12) engine fuel: the sale and installation of LPG
motor or mobile fuel containers, and the sale and installation of
LPG motor or mobile fuel systems;
[(13) recreational vehicle installers and repairmen:
the sale, service, and installation of recreational vehicle
containers, and the installation, repair, and service of
recreational vehicle appliances, piping, and LPG systems,
including recreational vehicle motor or mobile fuel systems and
containers;
[(14) manufactured housing installers and repairmen:
the service and installation of containers that supply fuel to
manufactured housing, and the installation, repair, and service of
appliances and piping systems for manufactured housing;
[(15) testing laboratory: the testing of an LP-gas
container, LP-gas motor fuel systems or mobile fuel systems,
transfer systems, and transport systems for the purpose of
determining the safety of the container or systems for LP-gas
service, including the necessary installation, disconnection,
reconnecting, testing, and repair of LPG motor fuel systems or
mobile fuel systems, transfer systems, and transport systems
involved in the testing of containers; or
[(16) portable cylinder exchange: the operation of a
portable cylinder exchange service, where the sale of LP-gas is
within a portable cylinder with an LP-gas capacity not to exceed 21
pounds; the portable cylinders are not filled on site, and no other
LP-gas activity requiring a license is conducted].
(b) The commission by rule shall establish reasonable
application and original license fees and renewal fees for each
type of license category established under Subsection (a) [listed
in this section].
SECTION 6. Section 113.084(b), Natural Resources Code, is
amended to read as follows:
(b) A prospective licensee shall submit the required
application together with the original nonrefundable license fee
established by the commission under Section 113.082 for each type
of license category for which an application is made. The applicant
shall submit additional information and data with each application
as the commission may reasonably require.
SECTION 7. Sections 113.087(c), (d), and (g), Natural
Resources Code, are amended to read as follows:
(c) An [Each] individual who will be actively supervising
[those] operations that require a [requiring any] license under
this chapter, other than a portable cylinder exchange service [a
license under Section 113.082(a)(16)], at any outlet or location,
[as designated by the commission,] shall be required to provide
good and sufficient proof through examination that the supervisor
has a working knowledge of the safety requirements and penalties in
this chapter and the rules of the commission which apply to that
type of license. A [Each] licensee [under Section 113.082(a)(5)]
who provides portable cylinders to a licensee operating a portable
cylinder exchange service [under Section 113.082(a)(16)] shall:
(1) prepare or obtain a manual approved by the
commission covering the proper procedures for handling LP-gas in
the portable cylinder exchange process;
(2) provide a copy of the manual to each outlet or
location of the licensee operating the portable cylinder exchange
service [under Section 113.082(a)(16)]; and
(3) provide training approved by the commission
regarding the contents of the manual to each individual who will be
actively supervising operation of the portable cylinder exchange
service [operations requiring a license under Section
113.082(a)(16)] at each outlet or location.
(d) As determined by commission rule, each individual who is
or will be utilized by a licensee or a public employee of the state,
the federal government, or a state or federal subdivision in
LPG-related activities shall be required to provide good and
sufficient proof through examination that the employee has a
working knowledge of the safety requirements in the rules of the
commission relating to the activity or activities. Should the
commission determine that an individual has a history of failure to
comply with the requirements of this code or with the rules of the
commission, the commission shall promptly notify the individual in
writing [mail written notification] of failure to qualify for
LP-gas employee certification and the reasons therefor [to the
registrant]. Written notice by the commission, a written request
for a hearing, and the public hearing itself shall be governed by
Section 113.091.
(g) In no event shall an original or renewal license be
issued to an applicant whose listed representative has not
maintained qualified status, as defined by rule, or to any person
who has a history of failure to comply with the requirements of this
code or with the rules of the commission. The commission shall have
written notification of license denial and the reasons therefor
prepared promptly and provided [mailed] to both the representative
and the license applicant. Written notice by the commission, a
written request for a hearing, and the public hearing itself shall
be governed by Section 113.091 [of this code].
SECTION 8. Sections 113.089(a) and (c), Natural Resources
Code, are amended to read as follows:
(a) If application is made for a license by a retail and
wholesale dealer [under Section 113.082(a)(5)] or for any other
type of license specified by commission rule, the commission, in
addition to other requirements, shall have an actual inspection
conducted of any and all facilities, bulk storage equipment,
transportation equipment, and dispensing equipment of the
applicant to verify satisfactory compliance with all current safety
laws, rules, and practices. The inspection may be waived by the
commission on an application resulting solely from a change in
legal entities under which a current licensee operates.
(c) A license for which an inspection under Subsection (a)
is required may [under Section 113.082(a)(5) and any other type of
license specified by commission rule shall] not be issued until the
inspection [under Subsection (a) of this section] verifies the
applicant to be in satisfactory compliance with all current safety
laws, rules, and practices.
SECTION 9. Section 113.091(a), Natural Resources Code, is
amended to read as follows:
(a) If [Should] an applicant fails [fail] to meet the
requirements for original or renewal licensing set out in this
chapter, the commission shall promptly send notice to the applicant
specifying [have written notification prepared promptly and mailed
to the applicant. The notice shall specify] the reason for the
applicant's failure to qualify for license and advising [advise]
the applicant of the right to request a hearing.
SECTION 10. Sections 113.097(a), (b), (c), (d), (f), and
(h), Natural Resources Code, are amended to read as follows:
(a) The commission shall not issue a license authorizing
LP-gas activities [under Section 113.082 of this code] or renew an
existing license unless the applicant for license or license
renewal provides proof of required insurance coverage with an
insurance carrier authorized to do business in this state as
evidenced by a certificate of authority having been issued to the
carrier by the Texas Department of Insurance or, if the applicant is
unable to obtain coverage from such a carrier, provides, on
approval of the commission, proof of required insurance coverage
issued by a surplus lines insurer that meets the requirements of
Chapter 981, Insurance Code, and rules adopted by the commissioner
of insurance under that chapter.
(b) A licensee may [shall] not perform an LP-gas [any
licensed] activity licensed by the commission [under Section
113.082 of this code] unless the insurance coverage required by
this chapter is in effect.
(c) Except as provided in Section 113.099 [of this code],
the types and amounts of insurance provided in Subsections (d)
through (i) [of this section] are required while engaged in an
LP-gas activity licensed by the commission [any of the activities
set forth in Section 113.082 of this code] or any activity
incidental thereto.
(d) A person licensed to transport LP-gas [Each licensee
under Section 113.082(a)(3), (5), (8), or (10)] must carry motor
vehicle bodily injury and property damage liability coverage on
each motor vehicle, including trailers and semitrailers, used to
transport LP-gas. The commission shall establish by rule a
reasonable amount of coverage to be maintained, except that
coverage may [shall] not be less than the amounts required as
evidence of financial responsibility under Chapter 601,
Transportation Code.
(f) A [Each] licensee, other than a licensee operating a
portable cylinder exchange service [category "P" licensee], must
acquire and maintain appropriate workers' compensation or coverage
for its employees under policies of work-related accident,
disability, and health insurance, including coverage for death
benefits, from an insurance carrier authorized to provide coverage
in this state, in the amounts required by the commission.
(h) As required by commission rule, a person registered
under Section 113.0815 or licensed as a transport outfitter,
carrier, retail and wholesale dealer, or testing laboratory
[licensee under Section 113.082(a)(1), (2), (3), (5), or (15)] must
carry completed operations or products liability insurance, or
both, in a reasonable amount, based on the type or types of
registered or licensed activities.
SECTION 11. Sections 113.099(a) and (d), Natural Resources
Code, are amended to read as follows:
(a) A person licensed to transport LP-gas [licensee or an
applicant for a license under Section 113.082(a)(3), (5), (8), or
(10)] that does not operate or contemplate the operation of a motor
vehicle equipped with an LP-gas cargo container and does not
transport or contemplate the transportation of LP-gas by vehicle in
any manner, may make and file with the commission a statement to
that effect in lieu of filing a certificate of motor vehicle bodily
injury and property damage insurance.
(d) A person registered under Section 113.0815 or licensed
as a transport outfitter, carrier, retail and wholesale dealer, or
testing laboratory [licensee or an applicant for a license under
Section 113.082(a)(1), (2), (3), (5), or (15)] that does not engage
in or contemplate engaging in any LP-gas operations which would be
covered by completed operations or products liability insurance, or
both, for a period of time may make and file with the commission a
statement to that effect in lieu of filing a certificate of
insurance.
SECTION 12. Not later than January 1, 2020, the Railroad
Commission of Texas shall adopt rules required by Chapter 113,
Natural Resources Code, as amended by this Act.
SECTION 13. This Act takes effect September 1, 2019.
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