Bill > HB4041

This bill amends the Texas Utilities Code to establish clear administrative penalty provisions for propane distribution system retailers who fail to comply with state regulations. Specifically, the bill requires distribution system retailers to post a financial surety (such as a letter of credit or bond) with the Railroad Commission of Texas, calculated based on their propane storage capacity, not to exceed $50,000. If a retailer violates the chapter's requirements, the Commission can now assess administrative penalties up to $1,000 per violation, with each day of continued violation potentially counting as a separate incident, though the total penalty cannot exceed $10,000 for related violations. The Commission must consider the retailer's previous violation history, the seriousness of the current violation, and any potential public health or safety hazards when determining the penalty amount. The bill also establishes a formal procedure for assessing these penalties, which includes providing the retailer an opportunity for a hearing, making formal findings of fact, and issuing a written decision. These new penalty provisions will apply only to violations occurring on or after the bill's effective date of September 1, 2025, ensuring fair implementation of the new regulations.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4041