H.B. No. 2172
AN ACT
relating to eligibility for a license or registration for an 
exemption to engage in liquefied petroleum gas-related activities 
and to disciplinary action against licensees and registrants.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 113.092(a), Natural Resources Code, is 
amended to read as follows:
	(a)  The commission shall issue the appropriate license to an 
applicant who has satisfied the licensing procedures and 
requirements set out in this chapter and in the rules of the 
commission, except as otherwise [where a prior license has been 
revoked as] provided for in [Subsection (a) of] Section 113.163 [of 
this code].
	SECTION 2.  The heading to Subchapter F, Chapter 113, 
Natural Resources Code, is amended to read as follows:
SUBCHAPTER F.  LICENSE AND REGISTRATION FOR AN EXEMPTION:
DENIAL AND DISCIPLINARY ACTION
	SECTION 3.  Section 113.163, Natural Resources Code, is 
amended to read as follows:
	Sec. 113.163.  DENIAL, REFUSAL TO RENEW, OR REVOCATION OF 
LICENSE OR REGISTRATION FOR AN EXEMPTION IN EVENT OF VIOLATION
[FINDINGS AND JUDGMENT].  (a)  Except as provided by Subsections (d) 
and (f), the commission may not approve an application for a license 
under this chapter or approve a registration for an exemption under 
Section 113.081(d) or (e) if:
		(1)  the applicant or registrant for an exemption has 
violated a statute or commission rule, order, license, permit, or 
certificate that relates to safety; or
		(2)  a person who holds a position of ownership or 
control in the applicant or registrant for an exemption has held a 
position of ownership or control in another person during the seven 
years preceding the date on which the application or registration 
for an exemption is filed and during that period of ownership or 
control the other person violated a statute or commission rule, 
order, license, permit, or certificate that relates to safety.
	(b)  An applicant, registrant for an exemption, or other 
person has committed a violation described by Subsection (a) if:
		(1)  a final judgment or final administrative order 
finding the violation has been entered against the applicant, 
registrant for an exemption, or other person and all appeals have 
been exhausted; or
		(2)  the commission and the applicant, registrant for 
an exemption, or other person have entered into an agreed order 
relating to the alleged violation.
	(c)  Regardless of whether the person's name appears or is 
required to appear on an application or registration for an 
exemption, a person holds a position of ownership or control in an 
applicant, registrant for an exemption, or other person if:
		(1)  the person is:                                                    
			(A)  an officer or director of the applicant, 
registrant for an exemption, or other person;
			(B)  a general partner of the applicant, 
registrant for an exemption, or other person;
			(C)  the owner of a sole proprietorship applicant, 
registrant for an exemption, or other person;
			(D)  the owner of at least 25 percent of the 
beneficial interest in the applicant, registrant for an exemption, 
or other person; or
			(E)  a trustee of the applicant, registrant for an 
exemption, or other person; or
		(2)  the applicant, registrant for an exemption, or 
other person has been determined by a final judgment or final 
administrative order to have exerted actual control over the 
applicant, registrant for an exemption, or other person.
	(d)  The commission shall approve an application for a 
license under this chapter or for a registration for an exemption 
under Section 113.081(d) or (e) if:
		(1)  the conditions that constituted the violation are 
corrected or are being corrected in accordance with a schedule to 
which the commission and the applicant, registrant for an 
exemption, or other person have agreed;
		(2)  all administrative, civil, and criminal penalties 
are paid or are being paid in accordance with a payment schedule to 
which the commission and the applicant, registrant for an 
exemption, or other person have agreed; and
		(3)  the application or registration for an exemption 
is in compliance with all other requirements of law and commission 
rules.
	(e)  If an application or registration for an exemption is 
denied under this section, the commission shall provide the 
applicant or registrant for an exemption with a written statement 
explaining the reason for the denial.
	(f)  Notwithstanding Subsection (a), the commission may 
issue a license to an applicant described by Subsection (a) or 
approve a registration for an exemption for a registrant for an 
exemption described by that subsection for a term specified by the 
commission if the license or registration for an exemption is 
necessary to remedy a violation of law or commission rules.
	(g)  A fee tendered in connection with an application or 
registration for an exemption that is denied under this section is 
nonrefundable.
	(h)  If the commission is prohibited by Subsection (a) from 
approving an application for a license or a registration for an 
exemption or would be prohibited from doing so by that subsection if 
the applicant, licensee, or registrant for an exemption submitted 
an application or registration for an exemption, the commission, 
after notice and opportunity for a hearing, by order may refuse to 
renew or may revoke a license or registration for an exemption 
issued to the applicant, licensee, or registrant for an exemption 
under this chapter.  The commission may not revoke or refuse to 
renew a license or registration for an exemption under this 
subsection if the commission finds that the applicant, licensee, or 
registrant for an exemption has fulfilled the conditions set out in 
Subsection (d).
	(i)  An order issued under Subsection (h) must provide the 
applicant, licensee, or registrant for an exemption a reasonable 
period to comply with the judgment or order finding the violation 
before the order takes effect.
	(j)  On refusal to renew or revocation of a person's license 
or registration for an exemption under Subsection (h), the person 
may not perform any activities under the jurisdiction of the 
commission under this chapter, except as necessary to remedy a 
violation of law or commission rules and as authorized by the 
commission under a license or registration for an exemption issued 
under Subsection (f).
	(k)  In determining whether to refuse to renew or to revoke a 
person's license or registration for an exemption under Subsection 
(h), the commission shall consider the person's history of previous 
violations, the seriousness of previous violations, any hazard to 
the health or safety of the public, and the demonstrated good faith 
of the person.
	(l)  Refusal to renew or revocation of a person's license or 
registration for an exemption under Subsection (h) does not relieve 
the person of any existing or future duty under law, rules, or 
license or registration conditions [The commission shall revoke, 
suspend, or refuse to renew a license or registration or shall 
reprimand a licensee or registrant if the commission finds that the 
licensee or registrant has violated or failed to comply with or is 
violating or failing to comply with this chapter or a rule or 
standard promulgated and adopted under this chapter].
	[(b)  The commission may place on probation a person whose 
license or registration is suspended.  If a license or registration 
suspension is probated, the commission may require the person:
		[(1)  to report regularly to the commission on matters 
that are the basis of the probation;
		[(2)  to limit practice to the areas prescribed by the 
commission; or
		[(3)  to continue or review professional education 
until the person attains a degree of skill satisfactory to the 
commission in those areas that are the basis of the probation.]
	SECTION 4.  (a)  The change in law made by this Act relating 
to a violation that is grounds for denial of a license or 
registration for an exemption or for disciplinary action applies 
only to a violation that occurs on or after the effective date of 
this Act.  For purposes of this section, a violation occurs before 
the effective date of this Act if any element of the violation 
occurs before that date.
	(b)  A violation that occurs before the effective date of 
this Act is covered by the law in effect on the date the violation 
occurred, and the former law is continued in effect for that 
purpose.
	SECTION 5.  This Act takes effect September 1, 2005.                           
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 2172 was passed by the House on April 
22, 2005, by a non-record vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	I certify that H.B. No. 2172 was passed by the Senate on May 
24, 2005, by the following vote:  Yeas 31, Nays 0.
                                                  ______________________________
                                                     Secretary of the Senate    
APPROVED:  _____________________                                            
 
                   Date                                                      
 
          _____________________                                          
 
                 Governor