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A BILL TO BE ENTITLED
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AN ACT
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relating to liability insurance for ammonium nitrate operations; |
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creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 63.152(b), Agriculture Code, is amended |
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to read as follows: |
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(b) An application for a registration submitted by an |
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applicant who owns an ammonium nitrate facility must be: |
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(1) submitted on a form prescribed by the service that |
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includes: |
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(A) the name, address, and telephone number of |
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each ammonium nitrate facility owned by the applicant; [and] |
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(B) the name of the person designated by the |
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applicant as the point of contact for each facility owned by the |
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applicant; and |
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(C) proof of insurance required by Section |
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63.1525; and |
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(2) accompanied by a fee in an amount sufficient to |
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cover the service's costs to administer this subchapter. |
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SECTION 2. Subchapter I, Chapter 63, Agriculture Code, is |
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amended by adding Section 63.1525 to read as follows: |
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Sec. 63.1525. PUBLIC LIABILITY INSURANCE REQUIRED. (a) A |
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person may not produce, store, transfer, chemically blend, offer |
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for sale, or sell ammonium nitrate or ammonium nitrate material |
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unless the person files with the service a public liability |
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insurance policy issued by an insurance company authorized to |
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conduct business in this state and considered acceptable by the |
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Texas Department of Insurance. |
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(b) The liability insurance policy required by Subsection |
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(a) must afford bodily injury and property damage protection in an |
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amount determined by the Texas Department of Insurance to |
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compensate any person damaged as a result of ammonium nitrate |
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operations. |
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(c) A person shall maintain the liability insurance policy |
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required by this section in effect during: |
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(1) the term of a certificate of registration issued |
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to the person under this subchapter; and |
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(2) any period during which the person is engaged in an |
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activity described by Subsection (a). |
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(d) The commissioner of insurance shall coordinate with the |
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state fire marshal, the Department of State Health Services, the |
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Office of the Texas State Chemist, and other appropriate state |
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agencies and officials in studying the risk exposure for activities |
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related to ammonium nitrate and ammonium nitrate material and |
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assessing the appropriate liability insurance requirements for a |
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policy required by Subsection (a) based on risk exposure. In |
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assessing risk exposure, the commissioner and other agencies and |
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officials shall consider population density and proximity of the |
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ammonium nitrate operations to individuals, homes, other |
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buildings, livestock, and other individuals, places, or creatures |
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that may suffer damage from ammonium nitrate operations. |
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SECTION 3. Section 63.154(a), Agriculture Code, is amended |
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to read as follows: |
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(a) Before completing a sale of ammonium nitrate or ammonium |
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nitrate material, a person that engages in those sales shall: |
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(1) require the person making the purchase to: |
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(A) display a driver's license or other form of |
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identification containing the person's photograph; |
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(B) provide the other personal information |
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required by Subdivision (2); [and] |
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(C) provide proof of insurance required by |
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Section 63.1525; and |
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(D) sign for the purchase; and |
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(2) make a record of the sale, including: |
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(A) the name of the person making the purchase; |
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(B) the date of the purchase; |
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(C) the purchaser's address, date of birth, and |
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phone number; |
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(D) the form of identification the purchaser |
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presented; |
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(E) whether the purchase is being made on behalf |
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of another person; and |
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(F) the amount and brand name of the ammonium |
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nitrate or ammonium nitrate material purchased. |
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SECTION 4. Section 63.157, Agriculture Code, is amended by |
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adding Subsection (c-1) and amending Subsection (d) to read as |
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follows: |
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(c-1) A person commits an offense if the person produces, |
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stores, transfers, chemically blends, offers for sale, or sells |
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ammonium nitrate or ammonium nitrate material without maintaining |
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liability insurance as provided by this subchapter. |
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(d) An offense under Subsection (a), [or] (c), or (c-1) is a |
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Class A misdemeanor. |
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SECTION 5. Subchapter I, Chapter 63, Agriculture Code, as |
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amended by this Act, applies only to a person who produces, stores, |
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transfers, chemically blends, offers for sale, or sells ammonium |
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nitrate or ammonium nitrate material on or after March 1, 2016. A |
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person who produces, stores, transfers, chemically blends, offers |
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for sale, or sells ammonium nitrate or ammonium nitrate material |
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before March 1, 2016, is governed by the law in effect immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2015. |