Bill Text: MN HF2537 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Propane; terms of sale and service regulated and service during the heating season discontinued with respect to residential propane customers, and registration of and reporting by propane distributors required.
Sponsorship: Partisan Bill (Democrat 7)
Status: (Introduced - Dead) 2014-03-12 - Committee report, to adopt as amended and re-refer to Commerce and Consumer Protection Finance and Policy [HF2537 Detail]
Download: Minnesota-2013-HF2537-Engrossed.html
1.2relating to energy; regulating terms of sale and service and the discontinuance of
1.3service during the heating season with respect to residential propane customers;
1.4requiring registration of and reporting by propane distributors;amending
1.5Minnesota Statutes 2012, sections 239.051, subdivision 29; 239.785, by adding
1.6a subdivision; 325E.027; proposing coding for new law in Minnesota Statutes,
1.7chapter 216B.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [216B.0991] DEFINITIONS.
1.10 Subdivision 1. Scope. For the purposes of sections 216B.0991 to 216B.0998, the
1.11terms defined in this section have the meanings given them.
1.12 Subd. 2. Customer. "Customer" means a person who purchases or signs a contract
1.13to purchase propane from a propane distributor for residential heating.
1.14 Subd. 3. Delinquent. "Delinquent" means a customer's account with a propane
1.15distributor that is in arrears because the customer has failed to pay a valid bill or charge in
1.16full within 20 days of its due date.
1.17 Subd. 4. Discontinuance or discontinue. "Discontinuance" or "discontinue" means
1.18the refusal of a propane distributor to deliver propane to a customer previously receiving
1.19residential heating service from the propane distributor.
1.20 Subd. 5. Heating season. "Heating season" means the time period from October
1.2115 through April 15.
1.22 Subd. 6. LIHEAP. "LIHEAP" means the low-income home energy assistance
1.23program.
1.24 Subd. 7. Low-income customer. "Low-income customer" means a customer whose
1.25household income is at or below 50 percent of the state median household income.
2.1 Subd. 8. Propane distributor. "Propane distributor" means a person who:
2.2(1) sells propane at retail to customers; and
2.3(2) received more than $200,000 in payments from the LIHEAP program for
2.4propane delivered during the previous heating season; or
2.5(3) received less than $200,000 in payments from the LIHEAP program for propane
2.6delivered during the previous heating season, and meets one of the following conditions:
2.7(i) markets propane under a single brand and the aggregate amount of payments
2.8received from the LIHEAP program for propane delivered during the previous heating
2.9season by all entities selling propane under that brand within the state exceeds $200,000;
2.10(ii) is organized as a cooperative association under chapter 308A or 308B; or
2.11(iii) operates a pipeline, rail or pipeline terminal, or bulk plant at which propane is
2.12received.
2.13For the purposes of this subdivision, "bulk plant" means an aboveground or underground
2.14tank facility with a storage capacity of more than 1,000 gallons that dispenses propane
2.15into cargo tanks for transportation and sale at another location.
2.16 Subd. 9. Residential heating service. "Residential heating service" means the
2.17provision of the primary source of heat for the interior of a residential structure.
2.18 Sec. 2. [216B.0992] PRICE AND FEE DISCLOSURE.
2.19A propane distributor must prepare a document listing the current per-gallon price of
2.20propane and all additional charges, fees, and discounts that pertain to residential heating
2.21service. The document must be:
2.22(1) made available to a person upon request;
2.23(2) posted on the propane distributor's Web site, if applicable; and
2.24(3) provided to a new customer before residential service is initiated.
2.25 Sec. 3. [216B.0993] BUDGET PAYMENT PLAN.
2.26(a) A propane distributor must offer a reasonable and effective budget payment plan
2.27to a customer whose payments for residential heating service are current, or who has
2.28entered into and is complying with a contract with the propane distributor for residential
2.29heating service, without regard to the length of time the customer has purchased propane
2.30from the propane distributor.
2.31(b) A budget payment plan must levelize a customer's estimated annual propane bill
2.32by dividing it into 12 equal monthly payments.
3.1(c) A propane distributor must notify a customer on a budget payment plan within
3.230 days of a price or fee change that may affect the monthly amount due under the budget
3.3payment plan by more than 20 percent.
3.4 Sec. 4. [216B.0994] DELINQUENT ACCOUNT; PAYMENT AGREEMENT.
3.5(a) A propane distributor must offer a reasonable payment agreement to a
3.6low-income customer whose account is delinquent that allows the customer to pay the
3.7delinquent bill over time. The propane distributor and the customer may negotiate the
3.8terms of a payment agreement to arrive at a mutually acceptable agreement. A reasonable
3.9payment agreement must consider at least the following factors:
3.10(1) the amount that is delinquent;
3.11(2) the customer's financial resources and circumstances;
3.12(3) the reason the account became delinquent; and
3.13(4) the customer's eligibility for LIHEAP and other emergency energy assistance
3.14programs.
3.15(b) A reasonable payment agreement must have a term no less than six months.
3.16(c) A reasonable payment agreement may not require a customer to pay more than
3.17ten percent of the customer's monthly household income toward current and past propane
3.18bills, unless the customer agrees to pay more.
3.19(d) A customer who has entered into a payment agreement with a propane distributor
3.20may request a modification of the terms of the payment agreement if the customer's
3.21financial circumstances have changed or the customer is unable to make timely payments.
3.22 Sec. 5. [216B.0995] SERVICE DISCONTINUANCE.
3.23 Subdivision 1. During heating season. (a) A propane distributor may not discontinue
3.24residential heating service to a customer during the heating season if the customer:
3.25(1) is a low-income customer; and
3.26(2) has entered into and made reasonably timely payments under a payment
3.27agreement.
3.28(b) A propane distributor may verify income on forms it provides or from
3.29information obtained from the local energy assistance provider. A customer is deemed
3.30to be a low-income customer if the customer receives any form of public assistance,
3.31including energy assistance, whose income eligibility threshold is set at or below 50
3.32percent of the state median household income.
4.1 Subd. 2. Notice. A propane distributor must, between September 1 and October
4.215 each year, send by regular mail to all customers a written summary of the provisions
4.3of this section.
4.4 Subd. 3. Refusal to deliver. (a) A propane distributor may refuse to deliver propane
4.5to a customer if the customer's account is delinquent and the customer has failed to pay
4.6two consecutive monthly payments under a payment agreement entered into with the
4.7propane distributor.
4.8(b) A refusal to deliver during the heating season must not occur on a weekend,
4.9holiday, the day before a holiday, or when the propane distributor's offices are closed.
4.10(c) This subdivision shall not apply to any discontinuance of propane service made
4.11necessary for reasons of the immediate health or safety of the customer or the general public.
4.12 Subd. 4. Discontinuation notice. Before discontinuing residential heating service
4.13to a customer during the heating season, a propane distributor must send a written notice
4.14of discontinuance to the customer by regular mail at least 14 days, but not more than 20
4.15days, prior to the date of discontinuance. The discontinuance notice must include:
4.16(1) the delinquent amount and the date on which propane delivery will be
4.17discontinued unless the customer pays the delinquency in full by a specified date;
4.18(2) a list of local organizations that may provide financial assistance to customers
4.19who cannot pay their energy bills; and
4.20(3) a statement explaining options a customer has to secure continued supply of
4.21propane, including, but not limited to, entering into a payment agreement with the propane
4.22distributor.
4.23 Sec. 6. [216B.0996] NONDISCRIMINATION.
4.24A propane distributor that offers customers payment and service options, including,
4.25but not limited to, prepurchase contracts, keep-fill delivery, and credit payments, must
4.26offer the same terms and conditions to all new and existing customers, including residents
4.27of mobile home parks.
4.28 Sec. 7. [216B.0997] TERMS OF SALE.
4.29 Subdivision 1. Minimum delivery. (a) During the heating season, a propane
4.30distributor may not require a customer to purchase, per delivery, more than:
4.31(1) 150 gallons of propane, if the customer's propane tank has a capacity below
4.32500 gallons; or
4.33(2) 200 gallons of propane, if the customer's propane tank has a capacity of 500
4.34gallons or more.
5.1(b) At times other than during the heating season, a propane distributor may not
5.2require a customer to purchase, per delivery, more than the lesser of 250 gallons of
5.3propane or 35 percent of the capacity of the customer's propane tank.
5.4(c) The purchase limits in this subdivision apply to the initial delivery of propane
5.5following installation of a customer's propane tank.
5.6(d) A propane distributor may not charge an additional minimum delivery fee
5.7to a customer because the customer has purchased propane in the minimum amounts
5.8allowed under this subdivision, unless the customer is making payments under a payment
5.9agreement or budget payment plan and the charge for the minimum delivery fee is
5.10included in the payment agreement or budget payment plan. If a customer has not entered
5.11a payment agreement or budget payment plan, a propane distributor must allow the
5.12customer to pay for any minimum service delivery fee in four monthly installments.
5.13 Subd. 2. Cannot refuse certain sales. (a) A propane distributor with an available
5.14supply of propane must not refuse to sell propane to a customer who:
5.15(1) pays the lawful price upon delivery in cash, by certified or cashier's check, or by
5.16commercial money order or its equivalent; or
5.17(2) receives energy assistance from LIHEAP or a governmental or private agency
5.18that has funds available to pay for a delivery.
5.19(b) A propane distributor must apply 75 percent of a cash payment made by a customer
5.20whose account is delinquent toward the current propane delivery bill and 25 percent to
5.21the delinquent bill until the delinquent amount owed is paid in full. The distributor must
5.22deliver to the customer the quantity of gas purchased by 75 percent of the cash payment.
5.23 Subd. 3. Minimal usage charge. No propane distributor may charge a fee to a
5.24customer for failing to consume a minimal amount of propane, as set by the propane
5.25distributor, over a given period of time.
5.26 Subd. 4. LIHEAP participation and payments. A propane distributor must make
5.27available to its customers information regarding LIHEAP, including income eligibility
5.28and contact information for organizations accepting LIHEAP applications, upon request
5.29and with each bill and receipt for propane delivered to a customer. A propane distributor
5.30must accept payments from LIHEAP and must deliver the full amount of propane and any
5.31related cost or service paid for by LIHEAP funds.
5.32 Subd. 5. Third-party credit disclosure. A propane distributor must not make
5.33known the names of past or present delinquent customers to other propane distributors,
5.34except in the course of a routine credit check performed when a prospective customer
5.35applies for credit privileges.
6.1 Subd. 6. Security deposit. During the heating season, a propane distributor may not
6.2require a customer eligible to receive heating assistance under LIHEAP to pay a security
6.3deposit as a condition of service. At all other times, a security deposit may not exceed the
6.4lesser of $200 or five percent of the customer's estimated annual heating bill.
6.5 Sec. 8. [216B.0998] REGISTRATION; REPORTING.
6.6 Subdivision 1. Registration. Annually by September 1, a propane distributor shall
6.7register with the department on a form prescribed by the commissioner. A propane
6.8distributor may not sell propane at retail in this state unless the propane distributor has
6.9received a registration certificate from the commissioner.
6.10 Subd. 2. Reporting. (a) Annually by September 1, a propane distributor must
6.11submit the following information to the commissioner:
6.12(1) the amount of fees associated with propane delivery to a customer, including, but
6.13not limited to, tank purchasing, leasing, installation, inspection, pump-out and pick-up
6.14fees, emergency and after-hours delivery fees, and meter service fees;
6.15(2) a copy of the standard contract between the propane distributor and a customer;
6.16(3) terms and conditions of payment and credit options made available to a customer,
6.17including but not limited to prepurchase, fixed-price, and capped-price options, payment
6.18agreements and budget payment plans, and price discounts; and
6.19(4) the capacity of propane storage located on site at the propane distributor's
6.20place of business, and the capacity of any other storage locations owned or leased by
6.21the propane distributor.
6.22(b) Beginning at the start of the heating season of 2014-2015, and continuing each
6.23subsequent heating season, a propane distributor must, on a form prescribed by the
6.24commissioner, submit to the commissioner each week the average wholesale price the
6.25distributor paid for propane delivered that week, and the average retail price per gallon
6.26charged by the propane distributor to a customer.
6.27EFFECTIVE DATE.This section is effective the day following final enactment and
6.28the initial registration and reporting required must be submitted on or before September
6.291, 2014.
6.30 Sec. 9. Minnesota Statutes 2012, section 239.051, subdivision 29, is amended to read:
6.31 Subd. 29. Refinery, terminal. "Refinery" or "terminal" means a petroleum refinery,
6.32pipeline terminal, river terminal, storage facility, or other point of origin where liquefied
6.33petroleum gas or petroleum products are manufactured, or imported by rail, truck, barge, or
6.34pipe; and held, stored, transferred, offered for distribution, distributed, offered for sale, or
7.1sold. For the purpose of restricting petroleum product blending, this definition includes all
7.2refineries and terminals within and outside of Minnesota, but does not include a licensed
7.3distributor's bulk storage facility that is used to store petroleum products for which the
7.4petroleum inspection fee charged under this chapter is either not due or has been paid.
7.5 Sec. 10. Minnesota Statutes 2012, section 239.785, is amended by adding a subdivision
7.6to read:
7.7 Subd. 7. Notification of product unavailability; terminal operators. A person
7.8who operates a terminal where liquefied petroleum gas is loaded into transport trucks for
7.9subsequent distribution shall notify the commissioner within 24 hours when liquefied
7.10petroleum gas is physically not available for sale to licensed distributors.
7.11 Sec. 11. Minnesota Statutes 2012, section 325E.027, is amended to read:
7.12325E.027 DISCRIMINATION PROHIBITION.
7.13 (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
7.14who has signed a low-income home energy assistance program vendor agreement with the
7.15Department of Commerce may refuse to deliver liquid propane gas or number 1 or number
7.162 fuel oil to any person located within the dealer's or distributor's normal delivery area
7.17who receives direct grants under the low-income home energy assistance program if:
7.18 (1) the person has requested delivery;
7.19 (2) the dealer or distributor has product available;
7.20 (3) the person requesting delivery is capable of making full payment at the time of
7.21delivery; and
7.22 (4) the person is not in arrears regarding any previous fuel purchase from that dealer
7.23or distributor.
7.24 (b) A dealer or distributor making delivery to a person receiving direct grants
7.25under the low-income home energy assistance program may not charge that person any
7.26additional costs or fees that would not be charged to any other customer and must make
7.27available to that person any discount program on the same basis as the dealer or distributor
7.28makes available to any other customer.
7.29(c) The commissioner of commerce may enforce this section using any of the
7.30authority granted to the commissioner under section 45.027.
7.31 Sec. 12. EFFECTIVE DATE.
7.32Sections 1 to 11 are effective the day following final enactment.
1.3service during the heating season with respect to residential propane customers;
1.4requiring registration of and reporting by propane distributors;amending
1.5Minnesota Statutes 2012, sections 239.051, subdivision 29; 239.785, by adding
1.6a subdivision; 325E.027; proposing coding for new law in Minnesota Statutes,
1.7chapter 216B.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [216B.0991] DEFINITIONS.
1.10 Subdivision 1. Scope. For the purposes of sections 216B.0991 to 216B.0998, the
1.11terms defined in this section have the meanings given them.
1.12 Subd. 2. Customer. "Customer" means a person who purchases or signs a contract
1.13to purchase propane from a propane distributor for residential heating.
1.14 Subd. 3. Delinquent. "Delinquent" means a customer's account with a propane
1.15distributor that is in arrears because the customer has failed to pay a valid bill or charge in
1.16full within 20 days of its due date.
1.17 Subd. 4. Discontinuance or discontinue. "Discontinuance" or "discontinue" means
1.18the refusal of a propane distributor to deliver propane to a customer previously receiving
1.19residential heating service from the propane distributor.
1.20 Subd. 5. Heating season. "Heating season" means the time period from October
1.2115 through April 15.
1.22 Subd. 6. LIHEAP. "LIHEAP" means the low-income home energy assistance
1.23program.
1.24 Subd. 7. Low-income customer. "Low-income customer" means a customer whose
1.25household income is at or below 50 percent of the state median household income.
2.1 Subd. 8. Propane distributor. "Propane distributor" means a person who:
2.2(1) sells propane at retail to customers; and
2.3(2) received more than $200,000 in payments from the LIHEAP program for
2.4propane delivered during the previous heating season; or
2.5(3) received less than $200,000 in payments from the LIHEAP program for propane
2.6delivered during the previous heating season, and meets one of the following conditions:
2.7(i) markets propane under a single brand and the aggregate amount of payments
2.8received from the LIHEAP program for propane delivered during the previous heating
2.9season by all entities selling propane under that brand within the state exceeds $200,000;
2.10(ii) is organized as a cooperative association under chapter 308A or 308B; or
2.11(iii) operates a pipeline, rail or pipeline terminal, or bulk plant at which propane is
2.12received.
2.13For the purposes of this subdivision, "bulk plant" means an aboveground or underground
2.14tank facility with a storage capacity of more than 1,000 gallons that dispenses propane
2.15into cargo tanks for transportation and sale at another location.
2.16 Subd. 9. Residential heating service. "Residential heating service" means the
2.17provision of the primary source of heat for the interior of a residential structure.
2.18 Sec. 2. [216B.0992] PRICE AND FEE DISCLOSURE.
2.19A propane distributor must prepare a document listing the current per-gallon price of
2.20propane and all additional charges, fees, and discounts that pertain to residential heating
2.21service. The document must be:
2.22(1) made available to a person upon request;
2.23(2) posted on the propane distributor's Web site, if applicable; and
2.24(3) provided to a new customer before residential service is initiated.
2.25 Sec. 3. [216B.0993] BUDGET PAYMENT PLAN.
2.26(a) A propane distributor must offer a reasonable and effective budget payment plan
2.27to a customer whose payments for residential heating service are current, or who has
2.28entered into and is complying with a contract with the propane distributor for residential
2.29heating service, without regard to the length of time the customer has purchased propane
2.30from the propane distributor.
2.31(b) A budget payment plan must levelize a customer's estimated annual propane bill
2.32by dividing it into 12 equal monthly payments.
3.1(c) A propane distributor must notify a customer on a budget payment plan within
3.230 days of a price or fee change that may affect the monthly amount due under the budget
3.3payment plan by more than 20 percent.
3.4 Sec. 4. [216B.0994] DELINQUENT ACCOUNT; PAYMENT AGREEMENT.
3.5(a) A propane distributor must offer a reasonable payment agreement to a
3.6low-income customer whose account is delinquent that allows the customer to pay the
3.7delinquent bill over time. The propane distributor and the customer may negotiate the
3.8terms of a payment agreement to arrive at a mutually acceptable agreement. A reasonable
3.9payment agreement must consider at least the following factors:
3.10(1) the amount that is delinquent;
3.11(2) the customer's financial resources and circumstances;
3.12(3) the reason the account became delinquent; and
3.13(4) the customer's eligibility for LIHEAP and other emergency energy assistance
3.14programs.
3.15(b) A reasonable payment agreement must have a term no less than six months.
3.16(c) A reasonable payment agreement may not require a customer to pay more than
3.17ten percent of the customer's monthly household income toward current and past propane
3.18bills, unless the customer agrees to pay more.
3.19(d) A customer who has entered into a payment agreement with a propane distributor
3.20may request a modification of the terms of the payment agreement if the customer's
3.21financial circumstances have changed or the customer is unable to make timely payments.
3.22 Sec. 5. [216B.0995] SERVICE DISCONTINUANCE.
3.23 Subdivision 1. During heating season. (a) A propane distributor may not discontinue
3.24residential heating service to a customer during the heating season if the customer:
3.25(1) is a low-income customer; and
3.26(2) has entered into and made reasonably timely payments under a payment
3.27agreement.
3.28(b) A propane distributor may verify income on forms it provides or from
3.29information obtained from the local energy assistance provider. A customer is deemed
3.30to be a low-income customer if the customer receives any form of public assistance,
3.31including energy assistance, whose income eligibility threshold is set at or below 50
3.32percent of the state median household income.
4.1 Subd. 2. Notice. A propane distributor must, between September 1 and October
4.215 each year, send by regular mail to all customers a written summary of the provisions
4.3of this section.
4.4 Subd. 3. Refusal to deliver. (a) A propane distributor may refuse to deliver propane
4.5to a customer if the customer's account is delinquent and the customer has failed to pay
4.6two consecutive monthly payments under a payment agreement entered into with the
4.7propane distributor.
4.8(b) A refusal to deliver during the heating season must not occur on a weekend,
4.9holiday, the day before a holiday, or when the propane distributor's offices are closed.
4.10(c) This subdivision shall not apply to any discontinuance of propane service made
4.11necessary for reasons of the immediate health or safety of the customer or the general public.
4.12 Subd. 4. Discontinuation notice. Before discontinuing residential heating service
4.13to a customer during the heating season, a propane distributor must send a written notice
4.14of discontinuance to the customer by regular mail at least 14 days, but not more than 20
4.15days, prior to the date of discontinuance. The discontinuance notice must include:
4.16(1) the delinquent amount and the date on which propane delivery will be
4.17discontinued unless the customer pays the delinquency in full by a specified date;
4.18(2) a list of local organizations that may provide financial assistance to customers
4.19who cannot pay their energy bills; and
4.20(3) a statement explaining options a customer has to secure continued supply of
4.21propane, including, but not limited to, entering into a payment agreement with the propane
4.22distributor.
4.23 Sec. 6. [216B.0996] NONDISCRIMINATION.
4.24A propane distributor that offers customers payment and service options, including,
4.25but not limited to, prepurchase contracts, keep-fill delivery, and credit payments, must
4.26offer the same terms and conditions to all new and existing customers, including residents
4.27of mobile home parks.
4.28 Sec. 7. [216B.0997] TERMS OF SALE.
4.29 Subdivision 1. Minimum delivery. (a) During the heating season, a propane
4.30distributor may not require a customer to purchase, per delivery, more than:
4.31(1) 150 gallons of propane, if the customer's propane tank has a capacity below
4.32500 gallons; or
4.33(2) 200 gallons of propane, if the customer's propane tank has a capacity of 500
4.34gallons or more.
5.1(b) At times other than during the heating season, a propane distributor may not
5.2require a customer to purchase, per delivery, more than the lesser of 250 gallons of
5.3propane or 35 percent of the capacity of the customer's propane tank.
5.4(c) The purchase limits in this subdivision apply to the initial delivery of propane
5.5following installation of a customer's propane tank.
5.6(d) A propane distributor may not charge an additional minimum delivery fee
5.7to a customer because the customer has purchased propane in the minimum amounts
5.8allowed under this subdivision, unless the customer is making payments under a payment
5.9agreement or budget payment plan and the charge for the minimum delivery fee is
5.10included in the payment agreement or budget payment plan. If a customer has not entered
5.11a payment agreement or budget payment plan, a propane distributor must allow the
5.12customer to pay for any minimum service delivery fee in four monthly installments.
5.13 Subd. 2. Cannot refuse certain sales. (a) A propane distributor with an available
5.14supply of propane must not refuse to sell propane to a customer who:
5.15(1) pays the lawful price upon delivery in cash, by certified or cashier's check, or by
5.16commercial money order or its equivalent; or
5.17(2) receives energy assistance from LIHEAP or a governmental or private agency
5.18that has funds available to pay for a delivery.
5.19(b) A propane distributor must apply 75 percent of a cash payment made by a customer
5.20whose account is delinquent toward the current propane delivery bill and 25 percent to
5.21the delinquent bill until the delinquent amount owed is paid in full. The distributor must
5.22deliver to the customer the quantity of gas purchased by 75 percent of the cash payment.
5.23 Subd. 3. Minimal usage charge. No propane distributor may charge a fee to a
5.24customer for failing to consume a minimal amount of propane, as set by the propane
5.25distributor, over a given period of time.
5.26 Subd. 4. LIHEAP participation and payments. A propane distributor must make
5.27available to its customers information regarding LIHEAP, including income eligibility
5.28and contact information for organizations accepting LIHEAP applications, upon request
5.29and with each bill and receipt for propane delivered to a customer. A propane distributor
5.30must accept payments from LIHEAP and must deliver the full amount of propane and any
5.31related cost or service paid for by LIHEAP funds.
5.32 Subd. 5. Third-party credit disclosure. A propane distributor must not make
5.33known the names of past or present delinquent customers to other propane distributors,
5.34except in the course of a routine credit check performed when a prospective customer
5.35applies for credit privileges.
6.1 Subd. 6. Security deposit. During the heating season, a propane distributor may not
6.2require a customer eligible to receive heating assistance under LIHEAP to pay a security
6.3deposit as a condition of service. At all other times, a security deposit may not exceed the
6.4lesser of $200 or five percent of the customer's estimated annual heating bill.
6.5 Sec. 8. [216B.0998] REGISTRATION; REPORTING.
6.6 Subdivision 1. Registration. Annually by September 1, a propane distributor shall
6.7register with the department on a form prescribed by the commissioner. A propane
6.8distributor may not sell propane at retail in this state unless the propane distributor has
6.9received a registration certificate from the commissioner.
6.10 Subd. 2. Reporting. (a) Annually by September 1, a propane distributor must
6.11submit the following information to the commissioner:
6.12(1) the amount of fees associated with propane delivery to a customer, including, but
6.13not limited to, tank purchasing, leasing, installation, inspection, pump-out and pick-up
6.14fees, emergency and after-hours delivery fees, and meter service fees;
6.15(2) a copy of the standard contract between the propane distributor and a customer;
6.16(3) terms and conditions of payment and credit options made available to a customer,
6.17including but not limited to prepurchase, fixed-price, and capped-price options, payment
6.18agreements and budget payment plans, and price discounts; and
6.19(4) the capacity of propane storage located on site at the propane distributor's
6.20place of business, and the capacity of any other storage locations owned or leased by
6.21the propane distributor.
6.22(b) Beginning at the start of the heating season of 2014-2015, and continuing each
6.23subsequent heating season, a propane distributor must, on a form prescribed by the
6.24commissioner, submit to the commissioner each week the average wholesale price the
6.25distributor paid for propane delivered that week, and the average retail price per gallon
6.26charged by the propane distributor to a customer.
6.27EFFECTIVE DATE.This section is effective the day following final enactment and
6.28the initial registration and reporting required must be submitted on or before September
6.291, 2014.
6.30 Sec. 9. Minnesota Statutes 2012, section 239.051, subdivision 29, is amended to read:
6.31 Subd. 29. Refinery, terminal. "Refinery" or "terminal" means a petroleum refinery,
6.32pipeline terminal, river terminal, storage facility, or other point of origin where liquefied
6.33petroleum gas or petroleum products are manufactured, or imported by rail, truck, barge, or
6.34pipe; and held, stored, transferred, offered for distribution, distributed, offered for sale, or
7.1sold. For the purpose of restricting petroleum product blending, this definition includes all
7.2refineries and terminals within and outside of Minnesota, but does not include a licensed
7.3distributor's bulk storage facility that is used to store petroleum products for which the
7.4petroleum inspection fee charged under this chapter is either not due or has been paid.
7.5 Sec. 10. Minnesota Statutes 2012, section 239.785, is amended by adding a subdivision
7.6to read:
7.7 Subd. 7. Notification of product unavailability; terminal operators. A person
7.8who operates a terminal where liquefied petroleum gas is loaded into transport trucks for
7.9subsequent distribution shall notify the commissioner within 24 hours when liquefied
7.10petroleum gas is physically not available for sale to licensed distributors.
7.11 Sec. 11. Minnesota Statutes 2012, section 325E.027, is amended to read:
7.12325E.027 DISCRIMINATION PROHIBITION.
7.13 (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
7.14who has signed a low-income home energy assistance program vendor agreement with the
7.15Department of Commerce may refuse to deliver liquid propane gas or number 1 or number
7.162 fuel oil to any person located within the dealer's or distributor's normal delivery area
7.17who receives direct grants under the low-income home energy assistance program if:
7.18 (1) the person has requested delivery;
7.19 (2) the dealer or distributor has product available;
7.20 (3) the person requesting delivery is capable of making full payment at the time of
7.21delivery; and
7.22 (4) the person is not in arrears regarding any previous fuel purchase from that dealer
7.23or distributor.
7.24 (b) A dealer or distributor making delivery to a person receiving direct grants
7.25under the low-income home energy assistance program may not charge that person any
7.26additional costs or fees that would not be charged to any other customer and must make
7.27available to that person any discount program on the same basis as the dealer or distributor
7.28makes available to any other customer.
7.29(c) The commissioner of commerce may enforce this section using any of the
7.30authority granted to the commissioner under section 45.027.
7.31 Sec. 12. EFFECTIVE DATE.
7.32Sections 1 to 11 are effective the day following final enactment.
