Bill Text: TX HB4041 | 2025-2026 | 89th Legislature | Engrossed
Bill Title: Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2025-04-30 - Received from the House [HB4041 Detail]
Download: Texas-2025-HB4041-Engrossed.html
| 89R3841 SCR-F | ||
| By: Morales of Maverick | H.B. No. 4041 | |
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| 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. | ||
