89R3841 SCR-F     By: Morales of Maverick H.B. No. 4041       A BILL TO BE ENTITLED   AN ACT   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.