Texas 2025 - 89th Regular

Texas House Bill HB4041 Compare Versions

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Version 2 (New)

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1	1	89R3841 SCR-F
2	2	By: Morales of Maverick H.B. No. 4041
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of the Railroad Commission of Texas to
10	10	impose an administrative penalty on a propane distribution system
11	11	retailer.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 141.009, Utilities Code, is amended to
14	14	read as follows:
15	15	Sec. 141.009. PERFORMANCE GUARANTEE. (a) A distribution
16	16	system retailer shall post, in favor of the commission, financial
17	17	surety in the form of a letter of credit, bond, or other acceptable
18	18	form of financial surety with the commission in an amount equal to
19	19	the lesser of $3 multiplied by the number of gallons of aggregate
20	20	storage capacity in all of the propane gas systems operated by the
21	21	distribution system retailer or $50,000. The issuer of the
22	22	financial surety used to meet this requirement shall honor the
23	23	financial surety if the issuer receives from the commission notice
24	24	that the financial surety is due and payable. The commission may
25	25	draw down all or a portion of the financial surety. The
26	26	distribution system retailer shall provide the commission with
27	27	verification of the adequacy of the financial surety, and the
28	28	commission may order the distribution system retailer to adjust the
29	29	amount of the financial surety annually.
30	30	(b) A distribution system retailer who does not comply with
31	31	this section is subject to an administrative penalty as described
32	32	by Section 141.011.
33	33	SECTION 2. Chapter 141, Utilities Code, is amended by
34	34	adding Sections 141.011 and 141.012 to read as follows:
35	35	Sec. 141.011. ADMINISTRATIVE PENALTY. (a) The commission
36	36	may assess an administrative penalty against a distribution system
37	37	retailer who violates this chapter or a rule adopted under this
38	38	chapter.
39	39	(b) The penalty for each violation may not exceed $1,000.
40	40	Each day a violation continues or occurs may be considered a
41	41	separate violation for the purpose of assessing a penalty, provided
42	42	that the maximum penalty that may be imposed for any related series
43	43	of violations may not exceed $10,000.
44	44	(c) In determining the amount of the penalty, the commission
45	45	shall consider:
46	46	(1) the distribution system retailer's history of
47	47	previous violations of this chapter;
48	48	(2) the seriousness of the violation; and
49	49	(3) any hazard to the health or safety of the public.
50	50	Sec. 141.012. ADMINISTRATIVE PENALTY: ASSESSMENT
51	51	PROCEDURE. (a) An administrative penalty may be assessed under
52	52	Section 141.011 only after the distribution system retailer has
53	53	been given an opportunity for hearing.
54	54	(b) If a hearing is held, the commission shall make findings
55	55	of fact and shall issue a written decision as to the occurrence of
56	56	the violation and the penalty amount warranted by the violation,
57	57	incorporating, if appropriate, an order requiring that the penalty
58	58	be paid.
59	59	(c) If a distribution system retailer fails to take
60	60	advantage of the opportunity for a hearing, an administrative
61	61	penalty may be assessed by the commission after it has determined:
62	62	(1) that a violation occurred; and
63	63	(2) the penalty amount warranted by the violation.
64	64	(d) After assessing the administrative penalty, the
65	65	commission shall issue an order requiring the penalty to be paid.
66	66	(e) Not later than the 30th day after the date an order is
67	67	issued finding that a violation described by Section 141.011
68	68	occurred, the commission shall inform the distribution system
69	69	retailer found in violation of the amount of the penalty.
70	70	SECTION 3. The changes in law made by this Act apply only to
71	71	a violation that occurs on or after the effective date of this Act.
72	72	A violation that occurred before the effective date of this Act is
73	73	governed by the law in effect when the violation occurred, and the
74	74	former law is continued in effect for that purpose.
75	75	SECTION 4. This Act takes effect September 1, 2025.