Texas 2019 - 86th Regular

Texas House Bill HB2714 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2714
	1	+	By: Bailes, Harris (Senate Sponsor - Birdwell) H.B. No. 2714
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on
	4	+	Natural Resources & Economic Development; April 25, 2019, reported
	5	+	favorably by the following vote: Yeas 10, Nays 0; April 25, 2019,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to the registration of liquefied petroleum gas container
6	13		manufacturers and the regulation of liquefied petroleum gas
7	14		licensees; authorizing fees.
8	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	16		SECTION 1. The heading to Subchapter D, Chapter 113,
10	17		Natural Resources Code, is amended to read as follows:
11	18		SUBCHAPTER D. LICENSING AND REGISTRATION
12	19		SECTION 2. Subchapter D, Chapter 113, Natural Resources
13	20		Code, is amended by adding Section 113.080 to read as follows:
14	21		Sec. 113.080. DEFINITIONS. In this subchapter:
15	22		(1) "Carrier" means a person licensed for
16	23		transportation of LP-gas by transport, including the loading and
17	24		unloading of LP-gas, and the installation and repair of transport
18	25		systems.
19	26		(2) "Portable cylinder exchange service" means an
20	27		operation conducted under a commission license for the sale of
21	28		LP-gas in portable cylinders that are not filled on site and that
22	29		have an LP-gas capacity not greater than 21 pounds.
23	30		(3) "Retail and wholesale dealer" means a person
24	31		licensed for any LP-gas activity except:
25	32		(A) the assembly, repair, subframing, or testing
26	33		of LP-gas containers; or
27	34		(B) the sale or installation of motor fuel
28	35		systems or mobile fuel systems that have an engine with a rating of
29	36		more than 25 horsepower.
30	37		(4) "Testing laboratory" means a person licensed for
31	38		testing containers, motor fuel systems or mobile fuel systems,
32	39		transfer systems, or transport systems for the purpose of
33	40		determining the safety of the containers or systems for LP-gas
34	41		service, including the necessary installation, disconnection,
35	42		reconnection, testing, or repair of motor fuel systems or mobile
36	43		fuel systems, transfer systems, or transport systems involved in
37	44		the testing of containers.
38	45		(5) "Transport outfitter" means a person licensed to:
39	46		(A) subframe, test, or sell LP-gas transport
40	47		containers;
41	48		(B) test LP-gas storage containers;
42	49		(C) install, test, or sell motor fuel containers
43	50		and systems or mobile fuel containers and systems;
44	51		(D) install transport systems; or
45	52		(E) repair transport systems, motor fuel
46	53		systems, or mobile fuel systems.
47	54		SECTION 3. Sections 113.081(a), (b), (c), (d), and (e),
48	55		Natural Resources Code, are amended to read as follows:
49	56		(a) Unless otherwise stated in this chapter, a [no] person
50	57		may not engage in any of the following activities unless that person
51	58		has obtained a license from the commission authorizing that
52	59		activity:
53	60		(1) container activities: the [manufacture,]
54	61		assembly, repair, testing, sale, installation, or subframing of
55	62		containers for use in this state, except that a [no] license is not
56	63		required for the sale of a new container of 96 pounds water capacity
57	64		or less;
58	65		(2) systems activities: the installation, service,
59	66		and repair of systems for use in this state, including the laying or
60	67		connecting of pipes and fittings connecting with or to systems or
61	68		serving a system and appliances to be used with LP-gas [liquefied
62	69		petroleum gas] as a fuel;
63	70		(3) appliance activities: the service, installation,
64	71		and repair of appliances used or to be used in this state in
65	72		connection with systems using LP-gas [liquefied petroleum gas] as a
66	73		fuel, except that a [no] license is not [shall be] required for
67	74		installation or connection of manufactured unvented appliances to
68	75		LP-gas [LPG] systems by means of LP-gas [LPG] appliance connectors,
69	76		or where only duct or electrical work is performed to or on an
70	77		LP-gas appliance; or
71	78		(4) product activities: the sale, transportation,
72	79		dispensation, or storage of LP-gas [liquefied petroleum gas] in
73	80		this state, except that a [no] license is not [shall be] required to
74	81		sell LP-gas [LPG] where the vendor never obtains possessory rights
75	82		to the product sold or where the product is transported or stored by
76	83		the ultimate consumer for personal consumption only.
77	84		(b) The licensing requirements [provisions] of Subsection
78	85		(a) [of this section do not] apply to a person other than a
79	86		political subdivision who [is not engaged in business as provided
80	87		in Section 113.082 of this code. A person, except a political
81	88		subdivision, is considered to be engaged in business as provided in
82	89		Section 113.082 of this code if such person] installs or services a
83	90		[an LPG] motor fuel system or mobile fuel system on a motor vehicle
84	91		used in the transportation of the general public. [The provisions
85	92		of] Subsections (a)(1) and (a)(2) [of this section] do not apply to
86	93		intermodal containers or intermodal portable tanks constructed in
87	94		accordance with United States Department of Transportation
88	95		specifications.
89	96		(c) The licensing requirements of Subsection (a) do not
90	97		apply to a [A mobile home park operator will not be deemed to be a
91	98		person engaged in business as provided in Section 113.082 of this
92	99		code if such] mobile home park operator who does not obtain any
93	100		[obtains no] possessory rights to LP-gas products, and utilizes
94	101		only LP-gas licensees in the installation and maintenance of the
95	102		LP-gas containers and system. For purposes of this subsection, the
96	103		term "mobile home park operator" means an individual or business
97	104		entity owning or operating a place, divided into sites, at which the
98	105		primary business is the rental or leasing of the sites to persons
99	106		for use in occupying mobile homes as dwellings. "Mobile home" has
100	107		the meaning set out in Chapter 1201, Occupations Code.
101	108		(d) The commission by rule may exempt [from Section
102	109		113.082(a)(4) of this code] journeymen or master plumbers licensed
103	110		by the Texas State Board of Plumbing Examiners from the license
104	111		requirements of Subsection (a).
105	112		(e) The commission by rule may exempt [from Section
106	113		113.082(a)(4) of this code] a person licensed under Chapter 1302,
107	114		Occupations Code, from the license requirements of Subsection (a).
108	115		SECTION 4. Subchapter D, Chapter 113, Natural Resources
109	116		Code, is amended by adding Section 113.0815 to read as follows:
110	117		Sec. 113.0815. REGISTRATION OF CONTAINER MANUFACTURERS AND
111	118		FABRICATORS. (a) A person may not engage in the manufacture or
112	119		fabrication of containers for use in this state unless the person
113	120		registers with the commission in accordance with rules adopted by
114	121		the commission.
115	122		(b) A registration under this section must be renewed
116	123		annually.
117	124		SECTION 5. Section 113.082, Natural Resources Code, is
118	125		amended to read as follows:
119	126		Sec. 113.082. CATEGORIES OF LP-GAS [LPG] ACTIVITIES; FEES.
120	127		(a) The commission by rule shall establish license categories for
121	128		LP-gas activities [A prospective licensee in LPG may apply to the
122	129		commission for a license to engage in any one or more of the
123	130		following categories of LPG activities:
124	131		[(1) container manufacturers/fabricators: the
125	132		manufacture, fabrication, assembly, repair, installation,
126	133		subframing, testing, and sale of LPG containers, including LPG
127	134		motor or mobile fuel containers and systems, and the repair and
128	135		installation of transport and transfer systems;
129	136		[(2) transport outfitters: the subframing, testing,
130	137		and sale of LPG transport containers, the testing of LPG storage
131	138		containers, the installation, testing, and sale of LPG motor or
132	139		mobile fuel containers and systems, and the installation and repair
133	140		of transport systems, and motor or mobile fuel systems;
134	141		[(3) carriers: the transportation of LPG by
135	142		transport, including the loading and unloading of LPG, and the
136	143		installation and repair of transport systems;
137	144		[(4) general installers and repairmen: the sale,
138	145		service, and installation of containers, excluding motor fuel
139	146		containers, and the service, installation, and repair of piping,
140	147		certain appliances as defined by rule, excluding recreational
141	148		vehicle appliances and LPG systems, excluding motor fuel and
142	149		recreational vehicle systems;
143	150		[(5) retail and wholesale dealers: the storage, sale,
144	151		transportation, and distribution of LPG at retail and wholesale,
145	152		and all other activities included in this section except the
146	153		manufacture, fabrication, assembly, repair, subframing, and
147	154		testing of LPG containers, and except the sale and installation of
148	155		LPG motor or mobile fuel systems that have an engine with a rating
149	156		of more than 25 horsepower;
150	157		[(6) cylinder filling: the operation of a
151	158		cylinder-filling facility, including cylinder filling, the sale of
152	159		LPG in cylinders, and the replacement of a cylinder valve;
153	160		[(7) service station: the operation of an LPG service
154	161		station filling ASME containers designed for motor and mobile fuel;
155	162		[(8) cylinder dealers: the transportation and sale of
156	163		LPG in cylinders;
157	164		[(9) service station and cylinder filling: any
158	165		service station and cylinder activity set out in Subdivisions (6)
159	166		and (7);
160	167		[(10) service station and cylinder facilities: the
161	168		operation of a cylinder-filling facility, including cylinder
162	169		filling and the sale, transportation, installation, and connection
163	170		of LPG in cylinders, the replacement of cylinder valves, and the
164	171		operation of an LPG service station as set out in Subdivision (7);
165	172		[(11) distribution system: the sale and distribution
166	173		of LPG through mains or pipes and the installation and repair of LPG
167	174		systems;
168	175		[(12) engine fuel: the sale and installation of LPG
169	176		motor or mobile fuel containers, and the sale and installation of
170	177		LPG motor or mobile fuel systems;
171	178		[(13) recreational vehicle installers and repairmen:
172	179		the sale, service, and installation of recreational vehicle
173	180		containers, and the installation, repair, and service of
174	181		recreational vehicle appliances, piping, and LPG systems,
175	182		including recreational vehicle motor or mobile fuel systems and
176	183		containers;
177	184		[(14) manufactured housing installers and repairmen:
178	185		the service and installation of containers that supply fuel to
179	186		manufactured housing, and the installation, repair, and service of
180	187		appliances and piping systems for manufactured housing;
181	188		[(15) testing laboratory: the testing of an LP-gas
182	189		container, LP-gas motor fuel systems or mobile fuel systems,
183	190		transfer systems, and transport systems for the purpose of
184	191		determining the safety of the container or systems for LP-gas
185	192		service, including the necessary installation, disconnection,
186	193		reconnecting, testing, and repair of LPG motor fuel systems or
187	194		mobile fuel systems, transfer systems, and transport systems
188	195		involved in the testing of containers; or
189	196		[(16) portable cylinder exchange: the operation of a
190	197		portable cylinder exchange service, where the sale of LP-gas is
191	198		within a portable cylinder with an LP-gas capacity not to exceed 21
192	199		pounds; the portable cylinders are not filled on site, and no other
193	200		LP-gas activity requiring a license is conducted].
194	201		(b) The commission by rule shall establish reasonable
195	202		application and original license fees and renewal fees for each
196	203		type of license category established under Subsection (a) [listed
197	204		in this section].
198	205		SECTION 6. Section 113.084(b), Natural Resources Code, is
199	206		amended to read as follows:
200	207		(b) A prospective licensee shall submit the required
201	208		application together with the original nonrefundable license fee
202	209		established by the commission under Section 113.082 for each type
203	210		of license category for which an application is made. The applicant
204	211		shall submit additional information and data with each application
205	212		as the commission may reasonably require.
206	213		SECTION 7. Sections 113.087(c), (d), and (g), Natural
207	214		Resources Code, are amended to read as follows:
208	215		(c) An [Each] individual who will be actively supervising
209	216		[those] operations that require a [requiring any] license under
210	217		this chapter, other than a portable cylinder exchange service [a
211	218		license under Section 113.082(a)(16)], at any outlet or location,
212	219		[as designated by the commission,] shall be required to provide
213	220		good and sufficient proof through examination that the supervisor
214	221		has a working knowledge of the safety requirements and penalties in
215	222		this chapter and the rules of the commission which apply to that
216	223		type of license. A [Each] licensee [under Section 113.082(a)(5)]
217	224		who provides portable cylinders to a licensee operating a portable
218	225		cylinder exchange service [under Section 113.082(a)(16)] shall:
219	226		(1) prepare or obtain a manual approved by the
220	227		commission covering the proper procedures for handling LP-gas in
221	228		the portable cylinder exchange process;
222	229		(2) provide a copy of the manual to each outlet or
223	230		location of the licensee operating the portable cylinder exchange
224	231		service [under Section 113.082(a)(16)]; and
225	232		(3) provide training approved by the commission
226	233		regarding the contents of the manual to each individual who will be
227	234		actively supervising operation of the portable cylinder exchange
228	235		service [operations requiring a license under Section
229	236		113.082(a)(16)] at each outlet or location.
230	237		(d) As determined by commission rule, each individual who is
231	238		or will be utilized by a licensee or a public employee of the state,
232	239		the federal government, or a state or federal subdivision in
233	240		LPG-related activities shall be required to provide good and
234	241		sufficient proof through examination that the employee has a
235	242		working knowledge of the safety requirements in the rules of the
236	243		commission relating to the activity or activities. Should the
237	244		commission determine that an individual has a history of failure to
238	245		comply with the requirements of this code or with the rules of the
239	246		commission, the commission shall promptly notify the individual in
240	247		writing [mail written notification] of failure to qualify for
241	248		LP-gas employee certification and the reasons therefor [to the
242	249		registrant]. Written notice by the commission, a written request
243	250		for a hearing, and the public hearing itself shall be governed by
244	251		Section 113.091.
245	252		(g) In no event shall an original or renewal license be
246	253		issued to an applicant whose listed representative has not
247	254		maintained qualified status, as defined by rule, or to any person
248	255		who has a history of failure to comply with the requirements of this
249	256		code or with the rules of the commission. The commission shall have
250	257		written notification of license denial and the reasons therefor
251	258		prepared promptly and provided [mailed] to both the representative
252	259		and the license applicant. Written notice by the commission, a
253	260		written request for a hearing, and the public hearing itself shall
254	261		be governed by Section 113.091 [of this code].
255	262		SECTION 8. Sections 113.089(a) and (c), Natural Resources
256	263		Code, are amended to read as follows:
257	264		(a) If application is made for a license by a retail and
258	265		wholesale dealer [under Section 113.082(a)(5)] or for any other
259	266		type of license specified by commission rule, the commission, in
260	267		addition to other requirements, shall have an actual inspection
261	268		conducted of any and all facilities, bulk storage equipment,
262	269		transportation equipment, and dispensing equipment of the
263	270		applicant to verify satisfactory compliance with all current safety
264	271		laws, rules, and practices. The inspection may be waived by the
265	272		commission on an application resulting solely from a change in
266	273		legal entities under which a current licensee operates.
267	274		(c) A license for which an inspection under Subsection (a)
268	275		is required may [under Section 113.082(a)(5) and any other type of
269	276		license specified by commission rule shall] not be issued until the
270	277		inspection [under Subsection (a) of this section] verifies the
271	278		applicant to be in satisfactory compliance with all current safety
272	279		laws, rules, and practices.
273	280		SECTION 9. Section 113.091(a), Natural Resources Code, is
274	281		amended to read as follows:
275	282		(a) If [Should] an applicant fails [fail] to meet the
276	283		requirements for original or renewal licensing set out in this
277	284		chapter, the commission shall promptly send notice to the applicant
278	285		specifying [have written notification prepared promptly and mailed
279	286		to the applicant. The notice shall specify] the reason for the
280	287		applicant's failure to qualify for license and advising [advise]
281	288		the applicant of the right to request a hearing.
282	289		SECTION 10. Sections 113.097(a), (b), (c), (d), (f), and
283	290		(h), Natural Resources Code, are amended to read as follows:
284	291		(a) The commission shall not issue a license authorizing
285	292		LP-gas activities [under Section 113.082 of this code] or renew an
286	293		existing license unless the applicant for license or license
287	294		renewal provides proof of required insurance coverage with an
288	295		insurance carrier authorized to do business in this state as
289	296		evidenced by a certificate of authority having been issued to the
290	297		carrier by the Texas Department of Insurance or, if the applicant is
291	298		unable to obtain coverage from such a carrier, provides, on
292	299		approval of the commission, proof of required insurance coverage
293	300		issued by a surplus lines insurer that meets the requirements of
294	301		Chapter 981, Insurance Code, and rules adopted by the commissioner
295	302		of insurance under that chapter.
296	303		(b) A licensee may [shall] not perform an LP-gas [any
297	304		licensed] activity licensed by the commission [under Section
298	305		113.082 of this code] unless the insurance coverage required by
299	306		this chapter is in effect.
300	307		(c) Except as provided in Section 113.099 [of this code],
301	308		the types and amounts of insurance provided in Subsections (d)
302	309		through (i) [of this section] are required while engaged in an
303	310		LP-gas activity licensed by the commission [any of the activities
304	311		set forth in Section 113.082 of this code] or any activity
305	312		incidental thereto.
306	313		(d) A person licensed to transport LP-gas [Each licensee
307	314		under Section 113.082(a)(3), (5), (8), or (10)] must carry motor
308	315		vehicle bodily injury and property damage liability coverage on
309	316		each motor vehicle, including trailers and semitrailers, used to
310	317		transport LP-gas. The commission shall establish by rule a
311	318		reasonable amount of coverage to be maintained, except that
312	319		coverage may [shall] not be less than the amounts required as
313	320		evidence of financial responsibility under Chapter 601,
314	321		Transportation Code.
315	322		(f) A [Each] licensee, other than a licensee operating a
316	323		portable cylinder exchange service [category "P" licensee], must
317	324		acquire and maintain appropriate workers' compensation or coverage
318	325		for its employees under policies of work-related accident,
319	326		disability, and health insurance, including coverage for death
320	327		benefits, from an insurance carrier authorized to provide coverage
321	328		in this state, in the amounts required by the commission.
322	329		(h) As required by commission rule, a person registered
323	330		under Section 113.0815 or licensed as a transport outfitter,
324	331		carrier, retail and wholesale dealer, or testing laboratory
325	332		[licensee under Section 113.082(a)(1), (2), (3), (5), or (15)] must
326	333		carry completed operations or products liability insurance, or
327	334		both, in a reasonable amount, based on the type or types of
328	335		registered or licensed activities.
329	336		SECTION 11. Sections 113.099(a) and (d), Natural Resources
330	337		Code, are amended to read as follows:
331	338		(a) A person licensed to transport LP-gas [licensee or an
332	339		applicant for a license under Section 113.082(a)(3), (5), (8), or
333	340		(10)] that does not operate or contemplate the operation of a motor
334	341		vehicle equipped with an LP-gas cargo container and does not
335	342		transport or contemplate the transportation of LP-gas by vehicle in
336	343		any manner, may make and file with the commission a statement to
337	344		that effect in lieu of filing a certificate of motor vehicle bodily
338	345		injury and property damage insurance.
339	346		(d) A person registered under Section 113.0815 or licensed
340	347		as a transport outfitter, carrier, retail and wholesale dealer, or
341	348		testing laboratory [licensee or an applicant for a license under
342	349		Section 113.082(a)(1), (2), (3), (5), or (15)] that does not engage
343	350		in or contemplate engaging in any LP-gas operations which would be
344	351		covered by completed operations or products liability insurance, or
345	352		both, for a period of time may make and file with the commission a
346	353		statement to that effect in lieu of filing a certificate of
347	354		insurance.
348	355		SECTION 12. Not later than January 1, 2020, the Railroad
349	356		Commission of Texas shall adopt rules required by Chapter 113,
350	357		Natural Resources Code, as amended by this Act.
351	358		SECTION 13. This Act takes effect September 1, 2019.
352		-	______________________________ ______________________________
353		-	President of the Senate Speaker of the House
354		-	I certify that H.B. No. 2714 was passed by the House on April
355		-	10, 2019, by the following vote: Yeas 144, Nays 1, 1 present, not
356		-	voting.
357		-	______________________________
358		-	Chief Clerk of the House
359		-	I certify that H.B. No. 2714 was passed by the Senate on May
360		-	3, 2019, by the following vote: Yeas 31, Nays 0.
361		-	______________________________
362		-	Secretary of the Senate
363		-	APPROVED: _____________________
364		-	Date
365		-	_____________________
366		-	Governor
	359	+	* * * * *