H.B. No. 2714

	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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2714 was passed by the House on April
	10, 2019, by the following vote:  Yeas 144, Nays 1, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2714 was passed by the Senate on May
	3, 2019, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor