Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.

89(R) HB 4041 - Engrossed version - Bill Text

89R3841 SCR-F

By: Morales of Maverick

H.B. No. 4041

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the Railroad Commission of Texas to

impose an administrative penalty on a propane distribution system

retailer.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 141.009, Utilities Code, is amended to

read as follows:

Sec. 141.009. PERFORMANCE GUARANTEE.
(a)
A distribution

system retailer shall post, in favor of the commission, financial

surety in the form of a letter of credit, bond, or other acceptable

form of financial surety with the commission in an amount equal to

the lesser of $3 multiplied by the number of gallons of aggregate

storage capacity in all of the propane gas systems operated by the

distribution system retailer or $50,000. The issuer of the

financial surety used to meet this requirement shall honor the

financial surety if the issuer receives from the commission notice

that the financial surety is due and payable. The commission may

draw down all or a portion of the financial surety. The

distribution system retailer shall provide the commission with

verification of the adequacy of the financial surety, and the

commission may order the distribution system retailer to adjust the

amount of the financial surety annually.

(b)

A distribution system retailer who does not comply with

this section is subject to an administrative penalty as described

by Section 141.011.

SECTION 2. Chapter 141, Utilities Code, is amended by

adding Sections 141.011 and 141.012 to read as follows:

Sec.

141.011.

ADMINISTRATIVE PENALTY. (a)

The commission

may assess an administrative penalty against a distribution system

retailer who violates this chapter or a rule adopted under this

chapter.

(b)

The penalty for each violation may not exceed $1,000.

Each day a violation continues or occurs may be considered a

separate violation for the purpose of assessing a penalty, provided

that the maximum penalty that may be imposed for any related series

of violations may not exceed $10,000.

(c)

In determining the amount of the penalty, the commission

shall consider:

(1)

the distribution system retailer's history of

previous violations of this chapter;

(2) the seriousness of the violation; and

(3) any hazard to the health or safety of the public.

Sec.

141.012.

ADMINISTRATIVE PENALTY: ASSESSMENT

PROCEDURE. (a) An administrative penalty may be assessed under

Section 141.011 only after the distribution system retailer has

been given an opportunity for hearing.

(b)

If a hearing is held, the commission shall make findings

of fact and shall issue a written decision as to the occurrence of

the violation and the penalty amount warranted by the violation,

incorporating, if appropriate, an order requiring that the penalty

be paid.

(c)

If a distribution system retailer fails to take

advantage of the opportunity for a hearing, an administrative

penalty may be assessed by the commission after it has determined:

(1) that a violation occurred; and

(2) the penalty amount warranted by the violation.

(d)

After assessing the administrative penalty, the

commission shall issue an order requiring the penalty to be paid.

(e)

Not later than the 30th day after the date an order is

issued finding that a violation described by Section 141.011

occurred, the commission shall inform the distribution system

retailer found in violation of the amount of the penalty.

SECTION 3. The changes in law made by this Act apply only to

a violation that occurs on or after the effective date of this Act.

A violation that occurred before the effective date of this Act is

governed by the law in effect when the violation occurred, and the

former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.