SEB S.B. 1184 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1184 By: Bivins Energy Resources 4/12/1999 Engrossed BACKGROUND AND PURPOSE The Railroad Commission of Texas (commission) regulates the liquefied petroleum gas (LPG) industry and issues licenses to persons who handle LPG or LPG systems. Under commission rules, there are various categories of licenses and specific requirements for each category. Currently, category "E" licensees, retail and wholesale dealers, are authorized to install and repair LPG motors or mobile fuel systems. The demand for LPG-propelled vehicles is increasing, however, and advancing technology requires a degree of skill and knowledge that exceeds the qualifications for a category "E" license. H.B. 3752 specifies that a category "E" licensee is not licensed to sell and install LPG motors or mobile fuel systems that have an engine with a rating of more than 25 horsepower, in effect requiring a category "L" license, the engine fuel category, for that activity. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Railroad Commission of Texas in SECTION 1 (Section 113.102, Natural Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 113.082 and 113.102, Natural Resources Code, as follows: Sec. 113.082. CATEGORIES OF LICENSEE; FEES. Establishes that the sale and installation of liquefied petroleum gas (LPG) motors or mobile fuel systems that have an engine with a rating of more than 25 horsepower do not belong in the category "E" application for a prospective LPG licensee. Category "E" pertains to retail and wholesale dealers. Provides that the sale and installation of LPG motor or mobile fuel systems belong in the category "L" application with engine fuel. Sec. 113.102. New title: ADDITIONAL ACTIVITIES PERMITTED UNDER CATEGORY "E" LICENSES. Authorizes the Railroad Commission of Texas, by rule, to permit a category "E" licensee whose LP gas license was issued before September 1, 1999, to perform an activity described by category "L" of Section 113.082 for a reasonable period. Establishes that this section expires September 1, 2001. Deletes existing text regarding prior LP gas licenses. SECTION 2. Provides that the change in law made by this Act applies to a license issued under Chapter 113, Natural Resources Code (Liquefied Petroleum Gas), before, on, or after the effective date of this Act. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause.