HB 4041

relating to the authority of the Railroad Commission of Texas to
impose an administrative penalty on a propane distribution system
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 141.009, Utilities Code, is amended to
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
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
(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
(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
(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.