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Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-116-compressed-natural-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE D. REGULATION OF SPECIFIC BUSINESSES AND OCCUPATIONS

CHAPTER 116. COMPRESSED NATURAL GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 116.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Railroad Commission of Texas.

(2) "Compressed natural gas" or "CNG" means natural gas

primarily consisting of methane in a gaseous state that is

compressed and used, stored, sold, transported, or distributed

for use by or through a CNG system.

(3) "Liquefied natural gas" or "LNG" means natural gas primarily

consisting of methane in liquid or semisolid state.

(4) "CNG cylinder" means a cylinder or other container designed

for use or used as part of a CNG system.

(5) "LNG container" means a container designed for use or used

as part of an LNG system.

(6) "CNG system" means a system of safety devices, cylinders,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other CNG equipment

intended for use or used in any building or public place by the

general public or in conjunction with a motor vehicle or mobile

fuel system fueled by compressed natural gas and any system or

facilities designed to be used or used in the compression, sale,

storage, transportation for delivery, or distribution of

compressed natural gas in portable CNG cylinders, but does not

include natural gas facilities, equipment, or pipelines located

upstream of the inlet of a compressor devoted entirely to

compressed natural gas.

(7) "LNG system" means a system of safety devices, containers,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other LNG equipment

intended for use or used with a motor vehicle fueled by liquefied

natural gas and any system or other facilities designed to be

used or used in the sale, storage, transportation for delivery,

or distribution of liquefied natural gas.

(8) "Motor vehicle" means any self-propelled vehicle licensed

for highway use or used on a public highway.

(9) "Compressed natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport compressed natural gas for delivery.

(10) "Liquefied natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport liquefied natural gas for delivery.

(11) "Mobile fuel system" means a CNG or LNG system to supply

natural gas fuel to an auxiliary engine other than the engine

used to propel the vehicle or for other uses on the vehicle.

(12) "Motor fuel system" means a CNG or LNG system to supply

natural gas as a fuel for an engine used to propel the vehicle.

(13) "Registrant" means any individual exempt from the licensing

requirements as established by rule of the commission who is

required to register with the commission, any person qualified by

examination by the commission, or any person who applies for

registration with the commission. Registrant includes an employee

of a licensee who performs CNG-related or LNG-related activities.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 276, Sec. 1, eff. Sept.

1, 1995.

Sec. 116.002. EXCEPTIONS. This chapter does not apply to:

(1) the production, transportation, storage, sale, or

distribution of natural gas that is not included in the

definition of compressed natural gas or liquefied natural gas;

(2) the production, transportation, storage, sale, or

distribution of natural gas that is subject to commission

jurisdiction under Subtitle A or B, Title 3, Utilities Code;

(3) pipelines, fixtures, and other equipment used in the natural

gas industry that are not used or designed to be used as part of

a CNG or LNG system; or

(4) pipelines, fixtures, equipment, or facilities to the extent

that they are subject to the safety regulations promulgated and

enforced by the commission pursuant to Chapter 117, Natural

Resources Code, or Subchapter E, Chapter 121, Utilities Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.42, eff.

Sept. 1, 1999.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 116.011. ADMINISTRATION. The commission shall administer

and enforce this chapter and rules and standards adopted under

this chapter relating to compressed natural gas and liquefied

natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.012. RULES AND STANDARDS. To protect the health,

safety, and welfare of the general public, the commission shall

adopt necessary rules and standards relating to the work of

compression and liquefaction, storage, sale or dispensing,

transfer or transportation, use or consumption, and disposal of

compressed natural gas or liquefied natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.013. NATIONAL CODES. The commission may adopt by

reference in its rules all or part of the published codes of

nationally recognized societies as standards to be met in the

design, construction, fabrication, assembly, installation, use,

and maintenance of CNG or LNG components and equipment.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.014. FEES. (a) Fees collected by the commission under

Section 116.034 of this code for training, examinations, and

seminars must be deposited in a special fund in the state

treasury designated as the CNG and LNG examination fund. The

commission shall use money in this fund to pay the cost of

training, examinations, and seminars sponsored or administered by

the commission.

(b) Except as provided by Subsection (a) of this section, money

collected by the commission as fees under this chapter shall be

deposited in the general revenue fund.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.015. ENTRY ON PROPERTY; INSPECTION AND INVESTIGATION.

(a) An employee, agent, or inspector of the commission may enter

the premises of a licensee under this chapter or any building or

other premises open to the public or inspect any CNG or LNG

system or motor vehicle equipped with CNG or LNG equipment at any

reasonable time for the purpose of determining and verifying

compliance with this chapter and rules of the commission adopted

under this chapter.

(b) Any authorized representative of the LPG division may enter

any building or premises where an accident has occurred in which

CNG or LNG was a probable cause for purposes of investigating the

cause, origin, and circumstances of such accident. The LPG

division may request that any state or local authority having

jurisdiction take appropriate action as may be necessary for

preservation of property and premises.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) The

commission may not adopt rules restricting advertising or

competitive bidding by a licensee or registrant except to

prohibit false, misleading, or deceptive practices.

(b) In its rules to prohibit false, misleading, or deceptive

practices, the commission may not include a rule that:

(1) restricts the use of any medium for advertising;

(2) restricts the use of a licensee or registrant's personal

appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the

licensee or registrant; or

(4) restricts the licensee or registrant's advertisement under a

trade name.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 54, eff. Sept. 1,

2001.

SUBCHAPTER C. LICENSING AND REGISTRATION

Sec. 116.031. LICENSE REQUIREMENT. (a) Unless otherwise

provided in this chapter or by commission rule, a person shall be

required to obtain a license from the commission to engage in any

of the following activities:

(1) work that includes the manufacture, assembly, repair,

testing, sale, installation, or subframing of CNG cylinders or

LNG containers for use in this state;

(2) systems work that includes the sale, installation,

modification, or servicing of CNG or LNG systems for use in this

state, including the installation, modification, or servicing by

any person, except a political subdivision, of a CNG or LNG motor

fuel system or mobile fuel system on a vehicle used in the

transportation of the general public; or

(3) product work that includes the sale, storage, transportation

for delivery, or dispensing of CNG or LNG in this state.

(b) A license obtained by a partnership, corporation, or other

legal entity extends to the entity's employees who are performing

CNG or LNG work, provided that each employee is qualified and

registered as required by rules adopted by the commission.

(c) No license is required by an original vehicle manufacturer

or a subcontractor of such manufacturer for the installation and

sale of a new CNG or LNG system when such system is installed on

a new original vehicle fueled by CNG or LNG.

(d) The commission by rule may provide for the annual

registration of all individuals performing CNG-related or

LNG-related activities who are exempt from the licensing

requirements of the commission. Employees of a political

subdivision are not required to be licensed or registered under

this chapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.032. LICENSE AND REGISTRATION FEES. (a) The

commission shall adopt rules establishing registration fees and

license categories and license fees to be charged for application

for and issuance and renewal of a license or registration.

(b) The commission by rule may establish reasonable fees for

each category of license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 55, eff.

Sept. 1, 2001.

Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) The

commission shall adopt rules establishing procedures for

submitting and processing applications for issuance and renewal

of licenses and for registration.

(b) A person who is otherwise eligible to renew a license or

registration may renew an unexpired license or registration by

paying the required renewal fee to the commission before the

expiration date of the license or registration. A person whose

license or registration has expired may not engage in activities

that require a license or registration until the license or

registration has been renewed.

(c) A person whose license or registration has been expired for

90 days or less may renew the license or registration by paying

to the commission a renewal fee that is equal to 1-1/2 times the

normally required renewal fee.

(d) A person whose license or registration has been expired for

more than 90 days but less than one year may renew the license or

registration by paying to the commission a renewal fee that is

equal to two times the normally required renewal fee.

(e) A person whose license or registration has been expired for

one year or more may not renew the license or registration. The

person may obtain a new license or registration by complying with

the requirements and procedures, including the examination

requirements, for obtaining an original license or registration.

(f) A person who was licensed or registered in this state, moved

to another state, and is currently licensed or registered and has

been in practice in the other state for the two years preceding

the date of application may obtain a new license or registration

without reexamination. The person must pay to the commission a

fee that is equal to two times the normally required renewal fee

for the license or registration.

(g) Not later than the 30th day before the date a person's

license or registration is scheduled to expire, the commission

shall send written notice of the impending expiration to the

person at the person's last known address according to the

records of the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 56, eff.

Sept. 1, 2001.

Sec. 116.034. EXAMINATION AND SEMINAR REQUIREMENTS. (a) The

commission may adopt rules providing training and seminar

attendance requirements and shall adopt rules providing

examination requirements for persons who are required or who wish

to be licensed or registered under this chapter.

(b) The commission may adopt a reasonable fee to cover the cost

of any training, examination, or seminar required by and

sponsored or administered by the commission.

(c) Before a license or registration may be issued, the person

to be licensed or registered must satisfactorily complete any

training, examinations, and seminars required by the commission.

(d) Not later than the 30th day after the date a person takes a

licensing or registration examination under this chapter, the

commission shall notify the person of the results of the

examination.

(e) If the examination is graded or reviewed by a testing

service:

(1) the commission shall notify the person of the results of the

examination not later than the 14th day after the date the

commission receives the results from the testing service; and

(2) if notice of the examination results will be delayed for

longer than 90 days after the examination date, the commission

shall notify the person of the reason for the delay before the

90th day.

(f) The commission may require a testing service to notify a

person of the results of the person's examination.

(g) If requested in writing by a person who fails a licensing or

registration examination administered under this chapter, the

commission shall furnish the person with an analysis of the

person's performance on the examination.

(h) The commission may recognize, prepare, or administer

continuing education programs for its licensees and registrants.

A licensee or registrant must participate in the programs to the

extent required by the commission to keep the person's license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 57, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1038, Sec. 1, eff. September 1, 2005.

Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. The

commission may waive any prerequisite to obtaining a license or

registration for an applicant after reviewing the applicant's

credentials and determining that the applicant holds a license or

registration issued by another jurisdiction that has licensing

requirements substantially equivalent to those of this state.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION. (a) The

commission may issue a provisional license or registration to an

applicant currently licensed or registered in another

jurisdiction who seeks a license or registration in this state

and who:

(1) has been licensed or registered in good standing for at

least two years in another jurisdiction, including a foreign

country, that has licensing or registration requirements

substantially equivalent to the requirements of this chapter;

(2) has passed a national or other examination recognized by the

commission relating to the activities regulated under this

chapter; and

(3) is sponsored by a person licensed or registered by the

commission under this chapter with whom the provisional license

or registration holder will practice during the time the person

holds a provisional license or registration.

(b) The commission may waive the requirement of Subsection

(a)(3) for an applicant if the commission determines that

compliance with that subsection would be a hardship to the

applicant.

(c) A provisional license or registration is valid until the

date the commission approves or denies the provisional license or

registration holder's application for a license or registration.

The commission shall issue a license or registration under this

chapter to the provisional license or registration holder if:

(1) the provisional license or registration holder is eligible

to be licensed or registered under Section 116.0345; or

(2) the provisional license or registration holder:

(A) passes the part of the examination under Section 116.034

that relates to the applicant's knowledge and understanding of

the laws and rules relating to the activities regulated under

this chapter in this state;

(B) meets the academic and experience requirements for a license

or registration under this chapter; and

(C) satisfies any other licensing or registration requirements

under this chapter.

(d) The commission must approve or deny a provisional license or

registration holder's application for a license or registration

not later than the 180th day after the date the provisional

license or registration is issued. The commission may extend the

180-day period if the results of an examination have not been

received by the commission before the end of that period.

(e) The commission may establish a fee for provisional licenses

or registrations in an amount reasonable and necessary to cover

the cost of issuing the license or registration.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.035. DENIAL OF LICENSE. The commission may deny

issuance or renewal of a license or registration to any person

who fails to qualify under the requirements of this chapter and

rules adopted by the commission under this chapter. The

commission shall give written notice to an applicant for the

issuance or renewal of a license or for registration of the

denial of the license or registration and the reasons for denial.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.036. INSURANCE REQUIREMENT. (a) All licensees must

acquire and maintain appropriate workers' compensation or

coverage for its employees under policies of work-related

accident, disability, and health insurance, including coverage

for death benefits, from an insurance carrier authorized to

provide coverage in this state and other insurance coverage

required by the commission in the amounts required by the

commission.

(b) Notwithstanding Subsection (a) of this section, a state

agency or institution, county, municipality, school district, or

other governmental subdivision may submit evidence of workers'

compensation coverage by self-insurance if permitted by the Texas

Workers' Compensation Act (Article 8308-1.01 et seq., Vernon's

Texas Civil Statutes).

(c) The commission shall adopt rules establishing specific

requirements for insurance coverage under this chapter and

evidence of such coverage. The types and amounts of insurance

coverage required by the commission shall be based on the type

and category of licensed activity. The commission by rule may

allow a licensee to self-insure under Subsection (a) or (e) and

by rule shall establish standards for that self-insurance.

(d) The commission may not issue or renew a license, and a

licensee may not perform any licensed activity unless the

insurance coverage required by the commission's rules is in

effect and evidence of that coverage is filed with the commission

as required by commission rule.

(e) Every motor vehicle operated in this state as a conveyance

for a CNG or an LNG cargo tank must meet motor vehicle insurance

requirements established by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 6, eff. Sept.

1, 1997.

Sec. 116.037. DISCIPLINARY ACTION. (a) The commission shall

notify a licensee or registrant in writing if it finds probable

violation or noncompliance with this chapter or the rules adopted

under this chapter.

(b) The notice shall specify the particular acts, omissions, or

conduct comprising the alleged violation and shall designate a

date by which the violation must be corrected or discontinued.

(c) The licensee or registrant shall report timely compliance or

shall request extension of time for compliance if considered

necessary.

(d) If a licensee or registrant objects to the complaint or

requirements under this section, or if the commission determines

that the licensee or registrant is not proceeding adequately to

compliance, then, on written request of the licensee or

registrant or order of the commission, a public hearing must be

conducted.

(e) If the commission or division determines that the probable

violation or noncompliance constitutes an immediate danger to the

public health, safety, and welfare, it shall require the

immediate cessation of the probable violation or noncompliance

and proceed with a hearing.

(f) The commission shall revoke, suspend, or refuse to renew a

license or registration or shall reprimand the licensee or

registrant if the commission finds that the licensee or

registrant has violated or failed to comply with or is violating

or failing to comply with this chapter or a rule adopted under

this chapter.

(g) The commission may place on probation a person whose license

or registration is suspended. If a license or registration

suspension is probated, the commission may require the person:

(1) to report regularly to the commission on matters that are

the basis of the probation;

(2) to limit practice to the areas prescribed by the commission;

or

(3) to continue or review professional education until the

person attains a degree of skill satisfactory to the commission

in those areas that are the basis of the probation.

(h) Any party to a proceeding before the commission is entitled

to judicial review under the substantial evidence rule.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 59, 60, eff.

Sept. 1, 2001.

Sec. 116.038. STAGGERED RENEWAL OF LICENSES. The commission by

rule may adopt a system under which license and registration fees

required by Section 116.032 of this code expire on various dates

during the year. For the year in which the license and

registration expiration dates are changed, license and

registration fees payable on a specified date shall be prorated

on a monthly basis so that each licensee shall pay only that

portion of the license and registration fees that is allowable to

the number of months during which the license and registration is

valid. On renewal of the license and registration on the new

expiration date, the total license and registration fees are

payable.

Added by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. MOTOR VEHICLE REGULATION

Sec. 116.071. REGISTRATION RULES. The commission shall adopt

rules relating to the registration of motor vehicles that are

equipped with a CNG or LNG cargo tank and motor vehicles used

principally to transport compressed natural gas or liquefied

natural gas in portable cylinders or containers.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.072. REGISTRATION. (a) Each motor vehicle that is

equipped with a CNG or LNG cargo tank and each motor vehicle used

principally to transport CNG or LNG in portable cylinders or

containers must be registered with the commission as provided by

commission rules.

(b) The commission may not impose a fee for registration under

this section on a motor vehicle owned by a county.

(c) The commission by rule shall establish a reasonable,

nonrefundable annual registration and transfer fee for each CNG

or LNG cargo trailer, semitrailer, bobtail, and cylinder-delivery

unit registered or transferred as follows:

(1) the annual registration fee established by the commission

shall not be less than $100 nor more than $500; and

(2) the annual transfer fee established by the commission shall

not be less than $25 nor more than $100.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1991, 72nd Leg., ch. 375, Sec. 1, eff.

Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept.

1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 7, eff. Sept. 1,

1997.

Sec. 116.073. SAFETY RULES. The commission shall adopt safety

rules relating to the transportation of compressed natural gas

and liquefied natural gas in this state.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.074. COOPERATION OF THE DEPARTMENT OF PUBLIC SAFETY.

The Department of Public Safety shall cooperate with the

commission in administering and enforcing this chapter and rules

of the commission relating to regulation of motor vehicles

required to be registered under this subchapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.075. APPLICATION OF OTHER LAWS. This chapter and the

rules adopted under this chapter do not modify, amend, or repeal

any laws of this state relating to the regulation of motor

carriers.

Renumbered from Sec. 116.076 by Acts 1993, 73rd Leg., ch. 227,

Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER E. MISCELLANEOUS PROVISIONS

Sec. 116.101. MALODORANTS. Compressed natural gas must be

odorized as provided by Subchapter F, Chapter 121, Utilities

Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.43, eff.

Sept. 1, 1999.

Sec. 116.102. TESTING LABORATORIES. The commission shall adopt

rules relating to testing of CNG and LNG equipment and to the

qualifications required of the persons who are to perform those

tests.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.103. WARNING TAGS. (a) An employee, agent, or

inspector of the commission may declare unsafe or dangerous for

service any motor vehicle required to be registered under this

chapter or any CNG or LNG equipment or system that is defective

or that does not otherwise conform to the safety requirements of

this chapter and the rules adopted under this chapter and shall

attach a warning tag to the motor vehicle, equipment, or system

in a conspicuous location.

(b) A person may not sell, furnish, deliver, or supply

compressed natural gas and liquefied natural gas for use or

consumption by or through a motor vehicle or system in a public

place or operate a motor vehicle having CNG or LNG equipment to

which a warning tag is attached.

(c) A warning tag may be removed on approval of the commission

or by a person designated by the commission to remove the tag. A

warning tag may not be removed by any person who is not

authorized to remove the tag by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

SUBCHAPTER F. ENFORCEMENT

Sec. 116.141. INJUNCTIVE RELIEF. (a) On request of the

commission, the attorney general shall bring suit in the name of

the state to enjoin a person from violating this chapter or a

rule adopted under this chapter.

(b) A suit for injunction instituted under this section is in

addition to other remedies available to the commission under this

chapter.

(c) A suit seeking injunctive relief under this section shall be

brought in a district court in Travis County.

(d) The commission is not required to provide a bond in a suit

instituted under this section.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.142. CRIMINAL PENALTY. (a) A person who knowingly

violates this chapter or rules adopted by the commission under

this chapter commits an offense.

(b) An offense under this section is punishable by a fine of not

less than $100 nor more than $5,000.

(c) Each day a violation continues constitutes a separate

offense.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.143. ADMINISTRATIVE PENALTY. (a) If a person violates

this chapter, a rule of the commission adopted under this

chapter, or a term, condition, or provision of a license or

registration issued by the commission under this chapter and the

violation results in pollution of the air or water of this state

or poses a threat to the public safety, the person may be

assessed a civil penalty by the commission.

(b) The penalty may not exceed $10,000 a day for each violation.

Each day a violation continues may be considered a separate

violation for purposes of penalty assessments.

(c) In determining the amount of the penalty, the commission

shall consider the person's history of previous violations of

this chapter, the seriousness of the violation, any hazard to the

health or safety of the public, and the demonstrated good faith

of the person charged.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.144. PENALTY ASSESSMENT PROCEDURE. (a) A civil

penalty under Section 116.145 of this code may be assessed only

after the person charged with the violation has been given an

opportunity for a public hearing.

(b) If a public hearing has been held, the commission shall make

findings of fact, and it shall issue a written decision as to the

occurrence of the violation and the amount of the penalty that is

warranted, incorporating, when appropriate, an order requiring

that the penalty be paid.

(c) If appropriate, the commission shall consolidate the

hearings with other proceedings under this chapter.

(d) If the person charged with the violation fails to avail

himself of the opportunity for a public hearing, a civil penalty

may be assessed by the commission after it has determined that a

violation did occur and the amount of the penalty that is

warranted.

(e) The commission shall then issue an order requiring that the

penalty be paid.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.145. PAYMENT OF PENALTY; REFUND. (a) On the issuance

of notice or an order charging that a violation has occurred, the

commission shall inform the person charged within 30 days of the

proposed amount of the penalty.

(b) Within the 30-day period immediately following the day on

which the notice or order is issued, the person charged with the

penalty shall pay the proposed penalty in full or, if the person

wishes to contest either the amount of the penalty or the fact of

the violation, forward the proposed amount to the commission for

placement in an escrow account.

(c) If through administrative or judicial review of the proposed

penalty it is determined that no violation occurred or that the

amount of the penalty should be reduced, the commission shall,

within the 30-day period immediately following that

determination, remit the appropriate amount to the person, with

interest at the prevailing United States Department of the

Treasury rate.

(d) Failure to forward the money to the commission within the

time provided by Subsection (b) of this section results in a

waiver of all legal rights to contest the violation or the amount

of the penalty.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.146. RECOVERY OF PENALTY. Civil penalties owed under

Sections 116.143 through 116.145 of this code may be recovered in

a civil action brought by the attorney general at the request of

the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-116-compressed-natural-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE D. REGULATION OF SPECIFIC BUSINESSES AND OCCUPATIONS

CHAPTER 116. COMPRESSED NATURAL GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 116.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Railroad Commission of Texas.

(2) "Compressed natural gas" or "CNG" means natural gas

primarily consisting of methane in a gaseous state that is

compressed and used, stored, sold, transported, or distributed

for use by or through a CNG system.

(3) "Liquefied natural gas" or "LNG" means natural gas primarily

consisting of methane in liquid or semisolid state.

(4) "CNG cylinder" means a cylinder or other container designed

for use or used as part of a CNG system.

(5) "LNG container" means a container designed for use or used

as part of an LNG system.

(6) "CNG system" means a system of safety devices, cylinders,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other CNG equipment

intended for use or used in any building or public place by the

general public or in conjunction with a motor vehicle or mobile

fuel system fueled by compressed natural gas and any system or

facilities designed to be used or used in the compression, sale,

storage, transportation for delivery, or distribution of

compressed natural gas in portable CNG cylinders, but does not

include natural gas facilities, equipment, or pipelines located

upstream of the inlet of a compressor devoted entirely to

compressed natural gas.

(7) "LNG system" means a system of safety devices, containers,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other LNG equipment

intended for use or used with a motor vehicle fueled by liquefied

natural gas and any system or other facilities designed to be

used or used in the sale, storage, transportation for delivery,

or distribution of liquefied natural gas.

(8) "Motor vehicle" means any self-propelled vehicle licensed

for highway use or used on a public highway.

(9) "Compressed natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport compressed natural gas for delivery.

(10) "Liquefied natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport liquefied natural gas for delivery.

(11) "Mobile fuel system" means a CNG or LNG system to supply

natural gas fuel to an auxiliary engine other than the engine

used to propel the vehicle or for other uses on the vehicle.

(12) "Motor fuel system" means a CNG or LNG system to supply

natural gas as a fuel for an engine used to propel the vehicle.

(13) "Registrant" means any individual exempt from the licensing

requirements as established by rule of the commission who is

required to register with the commission, any person qualified by

examination by the commission, or any person who applies for

registration with the commission. Registrant includes an employee

of a licensee who performs CNG-related or LNG-related activities.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 276, Sec. 1, eff. Sept.

1, 1995.

Sec. 116.002. EXCEPTIONS. This chapter does not apply to:

(1) the production, transportation, storage, sale, or

distribution of natural gas that is not included in the

definition of compressed natural gas or liquefied natural gas;

(2) the production, transportation, storage, sale, or

distribution of natural gas that is subject to commission

jurisdiction under Subtitle A or B, Title 3, Utilities Code;

(3) pipelines, fixtures, and other equipment used in the natural

gas industry that are not used or designed to be used as part of

a CNG or LNG system; or

(4) pipelines, fixtures, equipment, or facilities to the extent

that they are subject to the safety regulations promulgated and

enforced by the commission pursuant to Chapter 117, Natural

Resources Code, or Subchapter E, Chapter 121, Utilities Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.42, eff.

Sept. 1, 1999.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 116.011. ADMINISTRATION. The commission shall administer

and enforce this chapter and rules and standards adopted under

this chapter relating to compressed natural gas and liquefied

natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.012. RULES AND STANDARDS. To protect the health,

safety, and welfare of the general public, the commission shall

adopt necessary rules and standards relating to the work of

compression and liquefaction, storage, sale or dispensing,

transfer or transportation, use or consumption, and disposal of

compressed natural gas or liquefied natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.013. NATIONAL CODES. The commission may adopt by

reference in its rules all or part of the published codes of

nationally recognized societies as standards to be met in the

design, construction, fabrication, assembly, installation, use,

and maintenance of CNG or LNG components and equipment.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.014. FEES. (a) Fees collected by the commission under

Section 116.034 of this code for training, examinations, and

seminars must be deposited in a special fund in the state

treasury designated as the CNG and LNG examination fund. The

commission shall use money in this fund to pay the cost of

training, examinations, and seminars sponsored or administered by

the commission.

(b) Except as provided by Subsection (a) of this section, money

collected by the commission as fees under this chapter shall be

deposited in the general revenue fund.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.015. ENTRY ON PROPERTY; INSPECTION AND INVESTIGATION.

(a) An employee, agent, or inspector of the commission may enter

the premises of a licensee under this chapter or any building or

other premises open to the public or inspect any CNG or LNG

system or motor vehicle equipped with CNG or LNG equipment at any

reasonable time for the purpose of determining and verifying

compliance with this chapter and rules of the commission adopted

under this chapter.

(b) Any authorized representative of the LPG division may enter

any building or premises where an accident has occurred in which

CNG or LNG was a probable cause for purposes of investigating the

cause, origin, and circumstances of such accident. The LPG

division may request that any state or local authority having

jurisdiction take appropriate action as may be necessary for

preservation of property and premises.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) The

commission may not adopt rules restricting advertising or

competitive bidding by a licensee or registrant except to

prohibit false, misleading, or deceptive practices.

(b) In its rules to prohibit false, misleading, or deceptive

practices, the commission may not include a rule that:

(1) restricts the use of any medium for advertising;

(2) restricts the use of a licensee or registrant's personal

appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the

licensee or registrant; or

(4) restricts the licensee or registrant's advertisement under a

trade name.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 54, eff. Sept. 1,

2001.

SUBCHAPTER C. LICENSING AND REGISTRATION

Sec. 116.031. LICENSE REQUIREMENT. (a) Unless otherwise

provided in this chapter or by commission rule, a person shall be

required to obtain a license from the commission to engage in any

of the following activities:

(1) work that includes the manufacture, assembly, repair,

testing, sale, installation, or subframing of CNG cylinders or

LNG containers for use in this state;

(2) systems work that includes the sale, installation,

modification, or servicing of CNG or LNG systems for use in this

state, including the installation, modification, or servicing by

any person, except a political subdivision, of a CNG or LNG motor

fuel system or mobile fuel system on a vehicle used in the

transportation of the general public; or

(3) product work that includes the sale, storage, transportation

for delivery, or dispensing of CNG or LNG in this state.

(b) A license obtained by a partnership, corporation, or other

legal entity extends to the entity's employees who are performing

CNG or LNG work, provided that each employee is qualified and

registered as required by rules adopted by the commission.

(c) No license is required by an original vehicle manufacturer

or a subcontractor of such manufacturer for the installation and

sale of a new CNG or LNG system when such system is installed on

a new original vehicle fueled by CNG or LNG.

(d) The commission by rule may provide for the annual

registration of all individuals performing CNG-related or

LNG-related activities who are exempt from the licensing

requirements of the commission. Employees of a political

subdivision are not required to be licensed or registered under

this chapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.032. LICENSE AND REGISTRATION FEES. (a) The

commission shall adopt rules establishing registration fees and

license categories and license fees to be charged for application

for and issuance and renewal of a license or registration.

(b) The commission by rule may establish reasonable fees for

each category of license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 55, eff.

Sept. 1, 2001.

Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) The

commission shall adopt rules establishing procedures for

submitting and processing applications for issuance and renewal

of licenses and for registration.

(b) A person who is otherwise eligible to renew a license or

registration may renew an unexpired license or registration by

paying the required renewal fee to the commission before the

expiration date of the license or registration. A person whose

license or registration has expired may not engage in activities

that require a license or registration until the license or

registration has been renewed.

(c) A person whose license or registration has been expired for

90 days or less may renew the license or registration by paying

to the commission a renewal fee that is equal to 1-1/2 times the

normally required renewal fee.

(d) A person whose license or registration has been expired for

more than 90 days but less than one year may renew the license or

registration by paying to the commission a renewal fee that is

equal to two times the normally required renewal fee.

(e) A person whose license or registration has been expired for

one year or more may not renew the license or registration. The

person may obtain a new license or registration by complying with

the requirements and procedures, including the examination

requirements, for obtaining an original license or registration.

(f) A person who was licensed or registered in this state, moved

to another state, and is currently licensed or registered and has

been in practice in the other state for the two years preceding

the date of application may obtain a new license or registration

without reexamination. The person must pay to the commission a

fee that is equal to two times the normally required renewal fee

for the license or registration.

(g) Not later than the 30th day before the date a person's

license or registration is scheduled to expire, the commission

shall send written notice of the impending expiration to the

person at the person's last known address according to the

records of the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 56, eff.

Sept. 1, 2001.

Sec. 116.034. EXAMINATION AND SEMINAR REQUIREMENTS. (a) The

commission may adopt rules providing training and seminar

attendance requirements and shall adopt rules providing

examination requirements for persons who are required or who wish

to be licensed or registered under this chapter.

(b) The commission may adopt a reasonable fee to cover the cost

of any training, examination, or seminar required by and

sponsored or administered by the commission.

(c) Before a license or registration may be issued, the person

to be licensed or registered must satisfactorily complete any

training, examinations, and seminars required by the commission.

(d) Not later than the 30th day after the date a person takes a

licensing or registration examination under this chapter, the

commission shall notify the person of the results of the

examination.

(e) If the examination is graded or reviewed by a testing

service:

(1) the commission shall notify the person of the results of the

examination not later than the 14th day after the date the

commission receives the results from the testing service; and

(2) if notice of the examination results will be delayed for

longer than 90 days after the examination date, the commission

shall notify the person of the reason for the delay before the

90th day.

(f) The commission may require a testing service to notify a

person of the results of the person's examination.

(g) If requested in writing by a person who fails a licensing or

registration examination administered under this chapter, the

commission shall furnish the person with an analysis of the

person's performance on the examination.

(h) The commission may recognize, prepare, or administer

continuing education programs for its licensees and registrants.

A licensee or registrant must participate in the programs to the

extent required by the commission to keep the person's license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 57, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1038, Sec. 1, eff. September 1, 2005.

Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. The

commission may waive any prerequisite to obtaining a license or

registration for an applicant after reviewing the applicant's

credentials and determining that the applicant holds a license or

registration issued by another jurisdiction that has licensing

requirements substantially equivalent to those of this state.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION. (a) The

commission may issue a provisional license or registration to an

applicant currently licensed or registered in another

jurisdiction who seeks a license or registration in this state

and who:

(1) has been licensed or registered in good standing for at

least two years in another jurisdiction, including a foreign

country, that has licensing or registration requirements

substantially equivalent to the requirements of this chapter;

(2) has passed a national or other examination recognized by the

commission relating to the activities regulated under this

chapter; and

(3) is sponsored by a person licensed or registered by the

commission under this chapter with whom the provisional license

or registration holder will practice during the time the person

holds a provisional license or registration.

(b) The commission may waive the requirement of Subsection

(a)(3) for an applicant if the commission determines that

compliance with that subsection would be a hardship to the

applicant.

(c) A provisional license or registration is valid until the

date the commission approves or denies the provisional license or

registration holder's application for a license or registration.

The commission shall issue a license or registration under this

chapter to the provisional license or registration holder if:

(1) the provisional license or registration holder is eligible

to be licensed or registered under Section 116.0345; or

(2) the provisional license or registration holder:

(A) passes the part of the examination under Section 116.034

that relates to the applicant's knowledge and understanding of

the laws and rules relating to the activities regulated under

this chapter in this state;

(B) meets the academic and experience requirements for a license

or registration under this chapter; and

(C) satisfies any other licensing or registration requirements

under this chapter.

(d) The commission must approve or deny a provisional license or

registration holder's application for a license or registration

not later than the 180th day after the date the provisional

license or registration is issued. The commission may extend the

180-day period if the results of an examination have not been

received by the commission before the end of that period.

(e) The commission may establish a fee for provisional licenses

or registrations in an amount reasonable and necessary to cover

the cost of issuing the license or registration.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.035. DENIAL OF LICENSE. The commission may deny

issuance or renewal of a license or registration to any person

who fails to qualify under the requirements of this chapter and

rules adopted by the commission under this chapter. The

commission shall give written notice to an applicant for the

issuance or renewal of a license or for registration of the

denial of the license or registration and the reasons for denial.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.036. INSURANCE REQUIREMENT. (a) All licensees must

acquire and maintain appropriate workers' compensation or

coverage for its employees under policies of work-related

accident, disability, and health insurance, including coverage

for death benefits, from an insurance carrier authorized to

provide coverage in this state and other insurance coverage

required by the commission in the amounts required by the

commission.

(b) Notwithstanding Subsection (a) of this section, a state

agency or institution, county, municipality, school district, or

other governmental subdivision may submit evidence of workers'

compensation coverage by self-insurance if permitted by the Texas

Workers' Compensation Act (Article 8308-1.01 et seq., Vernon's

Texas Civil Statutes).

(c) The commission shall adopt rules establishing specific

requirements for insurance coverage under this chapter and

evidence of such coverage. The types and amounts of insurance

coverage required by the commission shall be based on the type

and category of licensed activity. The commission by rule may

allow a licensee to self-insure under Subsection (a) or (e) and

by rule shall establish standards for that self-insurance.

(d) The commission may not issue or renew a license, and a

licensee may not perform any licensed activity unless the

insurance coverage required by the commission's rules is in

effect and evidence of that coverage is filed with the commission

as required by commission rule.

(e) Every motor vehicle operated in this state as a conveyance

for a CNG or an LNG cargo tank must meet motor vehicle insurance

requirements established by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 6, eff. Sept.

1, 1997.

Sec. 116.037. DISCIPLINARY ACTION. (a) The commission shall

notify a licensee or registrant in writing if it finds probable

violation or noncompliance with this chapter or the rules adopted

under this chapter.

(b) The notice shall specify the particular acts, omissions, or

conduct comprising the alleged violation and shall designate a

date by which the violation must be corrected or discontinued.

(c) The licensee or registrant shall report timely compliance or

shall request extension of time for compliance if considered

necessary.

(d) If a licensee or registrant objects to the complaint or

requirements under this section, or if the commission determines

that the licensee or registrant is not proceeding adequately to

compliance, then, on written request of the licensee or

registrant or order of the commission, a public hearing must be

conducted.

(e) If the commission or division determines that the probable

violation or noncompliance constitutes an immediate danger to the

public health, safety, and welfare, it shall require the

immediate cessation of the probable violation or noncompliance

and proceed with a hearing.

(f) The commission shall revoke, suspend, or refuse to renew a

license or registration or shall reprimand the licensee or

registrant if the commission finds that the licensee or

registrant has violated or failed to comply with or is violating

or failing to comply with this chapter or a rule adopted under

this chapter.

(g) The commission may place on probation a person whose license

or registration is suspended. If a license or registration

suspension is probated, the commission may require the person:

(1) to report regularly to the commission on matters that are

the basis of the probation;

(2) to limit practice to the areas prescribed by the commission;

or

(3) to continue or review professional education until the

person attains a degree of skill satisfactory to the commission

in those areas that are the basis of the probation.

(h) Any party to a proceeding before the commission is entitled

to judicial review under the substantial evidence rule.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 59, 60, eff.

Sept. 1, 2001.

Sec. 116.038. STAGGERED RENEWAL OF LICENSES. The commission by

rule may adopt a system under which license and registration fees

required by Section 116.032 of this code expire on various dates

during the year. For the year in which the license and

registration expiration dates are changed, license and

registration fees payable on a specified date shall be prorated

on a monthly basis so that each licensee shall pay only that

portion of the license and registration fees that is allowable to

the number of months during which the license and registration is

valid. On renewal of the license and registration on the new

expiration date, the total license and registration fees are

payable.

Added by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. MOTOR VEHICLE REGULATION

Sec. 116.071. REGISTRATION RULES. The commission shall adopt

rules relating to the registration of motor vehicles that are

equipped with a CNG or LNG cargo tank and motor vehicles used

principally to transport compressed natural gas or liquefied

natural gas in portable cylinders or containers.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.072. REGISTRATION. (a) Each motor vehicle that is

equipped with a CNG or LNG cargo tank and each motor vehicle used

principally to transport CNG or LNG in portable cylinders or

containers must be registered with the commission as provided by

commission rules.

(b) The commission may not impose a fee for registration under

this section on a motor vehicle owned by a county.

(c) The commission by rule shall establish a reasonable,

nonrefundable annual registration and transfer fee for each CNG

or LNG cargo trailer, semitrailer, bobtail, and cylinder-delivery

unit registered or transferred as follows:

(1) the annual registration fee established by the commission

shall not be less than $100 nor more than $500; and

(2) the annual transfer fee established by the commission shall

not be less than $25 nor more than $100.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1991, 72nd Leg., ch. 375, Sec. 1, eff.

Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept.

1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 7, eff. Sept. 1,

1997.

Sec. 116.073. SAFETY RULES. The commission shall adopt safety

rules relating to the transportation of compressed natural gas

and liquefied natural gas in this state.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.074. COOPERATION OF THE DEPARTMENT OF PUBLIC SAFETY.

The Department of Public Safety shall cooperate with the

commission in administering and enforcing this chapter and rules

of the commission relating to regulation of motor vehicles

required to be registered under this subchapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.075. APPLICATION OF OTHER LAWS. This chapter and the

rules adopted under this chapter do not modify, amend, or repeal

any laws of this state relating to the regulation of motor

carriers.

Renumbered from Sec. 116.076 by Acts 1993, 73rd Leg., ch. 227,

Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER E. MISCELLANEOUS PROVISIONS

Sec. 116.101. MALODORANTS. Compressed natural gas must be

odorized as provided by Subchapter F, Chapter 121, Utilities

Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.43, eff.

Sept. 1, 1999.

Sec. 116.102. TESTING LABORATORIES. The commission shall adopt

rules relating to testing of CNG and LNG equipment and to the

qualifications required of the persons who are to perform those

tests.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.103. WARNING TAGS. (a) An employee, agent, or

inspector of the commission may declare unsafe or dangerous for

service any motor vehicle required to be registered under this

chapter or any CNG or LNG equipment or system that is defective

or that does not otherwise conform to the safety requirements of

this chapter and the rules adopted under this chapter and shall

attach a warning tag to the motor vehicle, equipment, or system

in a conspicuous location.

(b) A person may not sell, furnish, deliver, or supply

compressed natural gas and liquefied natural gas for use or

consumption by or through a motor vehicle or system in a public

place or operate a motor vehicle having CNG or LNG equipment to

which a warning tag is attached.

(c) A warning tag may be removed on approval of the commission

or by a person designated by the commission to remove the tag. A

warning tag may not be removed by any person who is not

authorized to remove the tag by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

SUBCHAPTER F. ENFORCEMENT

Sec. 116.141. INJUNCTIVE RELIEF. (a) On request of the

commission, the attorney general shall bring suit in the name of

the state to enjoin a person from violating this chapter or a

rule adopted under this chapter.

(b) A suit for injunction instituted under this section is in

addition to other remedies available to the commission under this

chapter.

(c) A suit seeking injunctive relief under this section shall be

brought in a district court in Travis County.

(d) The commission is not required to provide a bond in a suit

instituted under this section.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.142. CRIMINAL PENALTY. (a) A person who knowingly

violates this chapter or rules adopted by the commission under

this chapter commits an offense.

(b) An offense under this section is punishable by a fine of not

less than $100 nor more than $5,000.

(c) Each day a violation continues constitutes a separate

offense.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.143. ADMINISTRATIVE PENALTY. (a) If a person violates

this chapter, a rule of the commission adopted under this

chapter, or a term, condition, or provision of a license or

registration issued by the commission under this chapter and the

violation results in pollution of the air or water of this state

or poses a threat to the public safety, the person may be

assessed a civil penalty by the commission.

(b) The penalty may not exceed $10,000 a day for each violation.

Each day a violation continues may be considered a separate

violation for purposes of penalty assessments.

(c) In determining the amount of the penalty, the commission

shall consider the person's history of previous violations of

this chapter, the seriousness of the violation, any hazard to the

health or safety of the public, and the demonstrated good faith

of the person charged.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.144. PENALTY ASSESSMENT PROCEDURE. (a) A civil

penalty under Section 116.145 of this code may be assessed only

after the person charged with the violation has been given an

opportunity for a public hearing.

(b) If a public hearing has been held, the commission shall make

findings of fact, and it shall issue a written decision as to the

occurrence of the violation and the amount of the penalty that is

warranted, incorporating, when appropriate, an order requiring

that the penalty be paid.

(c) If appropriate, the commission shall consolidate the

hearings with other proceedings under this chapter.

(d) If the person charged with the violation fails to avail

himself of the opportunity for a public hearing, a civil penalty

may be assessed by the commission after it has determined that a

violation did occur and the amount of the penalty that is

warranted.

(e) The commission shall then issue an order requiring that the

penalty be paid.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.145. PAYMENT OF PENALTY; REFUND. (a) On the issuance

of notice or an order charging that a violation has occurred, the

commission shall inform the person charged within 30 days of the

proposed amount of the penalty.

(b) Within the 30-day period immediately following the day on

which the notice or order is issued, the person charged with the

penalty shall pay the proposed penalty in full or, if the person

wishes to contest either the amount of the penalty or the fact of

the violation, forward the proposed amount to the commission for

placement in an escrow account.

(c) If through administrative or judicial review of the proposed

penalty it is determined that no violation occurred or that the

amount of the penalty should be reduced, the commission shall,

within the 30-day period immediately following that

determination, remit the appropriate amount to the person, with

interest at the prevailing United States Department of the

Treasury rate.

(d) Failure to forward the money to the commission within the

time provided by Subsection (b) of this section results in a

waiver of all legal rights to contest the violation or the amount

of the penalty.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.146. RECOVERY OF PENALTY. Civil penalties owed under

Sections 116.143 through 116.145 of this code may be recovered in

a civil action brought by the attorney general at the request of

the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-116-compressed-natural-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE D. REGULATION OF SPECIFIC BUSINESSES AND OCCUPATIONS

CHAPTER 116. COMPRESSED NATURAL GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 116.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Railroad Commission of Texas.

(2) "Compressed natural gas" or "CNG" means natural gas

primarily consisting of methane in a gaseous state that is

compressed and used, stored, sold, transported, or distributed

for use by or through a CNG system.

(3) "Liquefied natural gas" or "LNG" means natural gas primarily

consisting of methane in liquid or semisolid state.

(4) "CNG cylinder" means a cylinder or other container designed

for use or used as part of a CNG system.

(5) "LNG container" means a container designed for use or used

as part of an LNG system.

(6) "CNG system" means a system of safety devices, cylinders,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other CNG equipment

intended for use or used in any building or public place by the

general public or in conjunction with a motor vehicle or mobile

fuel system fueled by compressed natural gas and any system or

facilities designed to be used or used in the compression, sale,

storage, transportation for delivery, or distribution of

compressed natural gas in portable CNG cylinders, but does not

include natural gas facilities, equipment, or pipelines located

upstream of the inlet of a compressor devoted entirely to

compressed natural gas.

(7) "LNG system" means a system of safety devices, containers,

piping, fittings, valves, compressors, regulators, gauges, relief

devices, vents, installation fixtures, and other LNG equipment

intended for use or used with a motor vehicle fueled by liquefied

natural gas and any system or other facilities designed to be

used or used in the sale, storage, transportation for delivery,

or distribution of liquefied natural gas.

(8) "Motor vehicle" means any self-propelled vehicle licensed

for highway use or used on a public highway.

(9) "Compressed natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport compressed natural gas for delivery.

(10) "Liquefied natural gas cargo tank" means a container built

in accordance with A.S.M.E. or D.O.T. specifications and used to

transport liquefied natural gas for delivery.

(11) "Mobile fuel system" means a CNG or LNG system to supply

natural gas fuel to an auxiliary engine other than the engine

used to propel the vehicle or for other uses on the vehicle.

(12) "Motor fuel system" means a CNG or LNG system to supply

natural gas as a fuel for an engine used to propel the vehicle.

(13) "Registrant" means any individual exempt from the licensing

requirements as established by rule of the commission who is

required to register with the commission, any person qualified by

examination by the commission, or any person who applies for

registration with the commission. Registrant includes an employee

of a licensee who performs CNG-related or LNG-related activities.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 276, Sec. 1, eff. Sept.

1, 1995.

Sec. 116.002. EXCEPTIONS. This chapter does not apply to:

(1) the production, transportation, storage, sale, or

distribution of natural gas that is not included in the

definition of compressed natural gas or liquefied natural gas;

(2) the production, transportation, storage, sale, or

distribution of natural gas that is subject to commission

jurisdiction under Subtitle A or B, Title 3, Utilities Code;

(3) pipelines, fixtures, and other equipment used in the natural

gas industry that are not used or designed to be used as part of

a CNG or LNG system; or

(4) pipelines, fixtures, equipment, or facilities to the extent

that they are subject to the safety regulations promulgated and

enforced by the commission pursuant to Chapter 117, Natural

Resources Code, or Subchapter E, Chapter 121, Utilities Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.42, eff.

Sept. 1, 1999.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 116.011. ADMINISTRATION. The commission shall administer

and enforce this chapter and rules and standards adopted under

this chapter relating to compressed natural gas and liquefied

natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.012. RULES AND STANDARDS. To protect the health,

safety, and welfare of the general public, the commission shall

adopt necessary rules and standards relating to the work of

compression and liquefaction, storage, sale or dispensing,

transfer or transportation, use or consumption, and disposal of

compressed natural gas or liquefied natural gas.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.013. NATIONAL CODES. The commission may adopt by

reference in its rules all or part of the published codes of

nationally recognized societies as standards to be met in the

design, construction, fabrication, assembly, installation, use,

and maintenance of CNG or LNG components and equipment.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.014. FEES. (a) Fees collected by the commission under

Section 116.034 of this code for training, examinations, and

seminars must be deposited in a special fund in the state

treasury designated as the CNG and LNG examination fund. The

commission shall use money in this fund to pay the cost of

training, examinations, and seminars sponsored or administered by

the commission.

(b) Except as provided by Subsection (a) of this section, money

collected by the commission as fees under this chapter shall be

deposited in the general revenue fund.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.015. ENTRY ON PROPERTY; INSPECTION AND INVESTIGATION.

(a) An employee, agent, or inspector of the commission may enter

the premises of a licensee under this chapter or any building or

other premises open to the public or inspect any CNG or LNG

system or motor vehicle equipped with CNG or LNG equipment at any

reasonable time for the purpose of determining and verifying

compliance with this chapter and rules of the commission adopted

under this chapter.

(b) Any authorized representative of the LPG division may enter

any building or premises where an accident has occurred in which

CNG or LNG was a probable cause for purposes of investigating the

cause, origin, and circumstances of such accident. The LPG

division may request that any state or local authority having

jurisdiction take appropriate action as may be necessary for

preservation of property and premises.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) The

commission may not adopt rules restricting advertising or

competitive bidding by a licensee or registrant except to

prohibit false, misleading, or deceptive practices.

(b) In its rules to prohibit false, misleading, or deceptive

practices, the commission may not include a rule that:

(1) restricts the use of any medium for advertising;

(2) restricts the use of a licensee or registrant's personal

appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the

licensee or registrant; or

(4) restricts the licensee or registrant's advertisement under a

trade name.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 54, eff. Sept. 1,

2001.

SUBCHAPTER C. LICENSING AND REGISTRATION

Sec. 116.031. LICENSE REQUIREMENT. (a) Unless otherwise

provided in this chapter or by commission rule, a person shall be

required to obtain a license from the commission to engage in any

of the following activities:

(1) work that includes the manufacture, assembly, repair,

testing, sale, installation, or subframing of CNG cylinders or

LNG containers for use in this state;

(2) systems work that includes the sale, installation,

modification, or servicing of CNG or LNG systems for use in this

state, including the installation, modification, or servicing by

any person, except a political subdivision, of a CNG or LNG motor

fuel system or mobile fuel system on a vehicle used in the

transportation of the general public; or

(3) product work that includes the sale, storage, transportation

for delivery, or dispensing of CNG or LNG in this state.

(b) A license obtained by a partnership, corporation, or other

legal entity extends to the entity's employees who are performing

CNG or LNG work, provided that each employee is qualified and

registered as required by rules adopted by the commission.

(c) No license is required by an original vehicle manufacturer

or a subcontractor of such manufacturer for the installation and

sale of a new CNG or LNG system when such system is installed on

a new original vehicle fueled by CNG or LNG.

(d) The commission by rule may provide for the annual

registration of all individuals performing CNG-related or

LNG-related activities who are exempt from the licensing

requirements of the commission. Employees of a political

subdivision are not required to be licensed or registered under

this chapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.032. LICENSE AND REGISTRATION FEES. (a) The

commission shall adopt rules establishing registration fees and

license categories and license fees to be charged for application

for and issuance and renewal of a license or registration.

(b) The commission by rule may establish reasonable fees for

each category of license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 55, eff.

Sept. 1, 2001.

Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) The

commission shall adopt rules establishing procedures for

submitting and processing applications for issuance and renewal

of licenses and for registration.

(b) A person who is otherwise eligible to renew a license or

registration may renew an unexpired license or registration by

paying the required renewal fee to the commission before the

expiration date of the license or registration. A person whose

license or registration has expired may not engage in activities

that require a license or registration until the license or

registration has been renewed.

(c) A person whose license or registration has been expired for

90 days or less may renew the license or registration by paying

to the commission a renewal fee that is equal to 1-1/2 times the

normally required renewal fee.

(d) A person whose license or registration has been expired for

more than 90 days but less than one year may renew the license or

registration by paying to the commission a renewal fee that is

equal to two times the normally required renewal fee.

(e) A person whose license or registration has been expired for

one year or more may not renew the license or registration. The

person may obtain a new license or registration by complying with

the requirements and procedures, including the examination

requirements, for obtaining an original license or registration.

(f) A person who was licensed or registered in this state, moved

to another state, and is currently licensed or registered and has

been in practice in the other state for the two years preceding

the date of application may obtain a new license or registration

without reexamination. The person must pay to the commission a

fee that is equal to two times the normally required renewal fee

for the license or registration.

(g) Not later than the 30th day before the date a person's

license or registration is scheduled to expire, the commission

shall send written notice of the impending expiration to the

person at the person's last known address according to the

records of the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 56, eff.

Sept. 1, 2001.

Sec. 116.034. EXAMINATION AND SEMINAR REQUIREMENTS. (a) The

commission may adopt rules providing training and seminar

attendance requirements and shall adopt rules providing

examination requirements for persons who are required or who wish

to be licensed or registered under this chapter.

(b) The commission may adopt a reasonable fee to cover the cost

of any training, examination, or seminar required by and

sponsored or administered by the commission.

(c) Before a license or registration may be issued, the person

to be licensed or registered must satisfactorily complete any

training, examinations, and seminars required by the commission.

(d) Not later than the 30th day after the date a person takes a

licensing or registration examination under this chapter, the

commission shall notify the person of the results of the

examination.

(e) If the examination is graded or reviewed by a testing

service:

(1) the commission shall notify the person of the results of the

examination not later than the 14th day after the date the

commission receives the results from the testing service; and

(2) if notice of the examination results will be delayed for

longer than 90 days after the examination date, the commission

shall notify the person of the reason for the delay before the

90th day.

(f) The commission may require a testing service to notify a

person of the results of the person's examination.

(g) If requested in writing by a person who fails a licensing or

registration examination administered under this chapter, the

commission shall furnish the person with an analysis of the

person's performance on the examination.

(h) The commission may recognize, prepare, or administer

continuing education programs for its licensees and registrants.

A licensee or registrant must participate in the programs to the

extent required by the commission to keep the person's license.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 57, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1038, Sec. 1, eff. September 1, 2005.

Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. The

commission may waive any prerequisite to obtaining a license or

registration for an applicant after reviewing the applicant's

credentials and determining that the applicant holds a license or

registration issued by another jurisdiction that has licensing

requirements substantially equivalent to those of this state.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION. (a) The

commission may issue a provisional license or registration to an

applicant currently licensed or registered in another

jurisdiction who seeks a license or registration in this state

and who:

(1) has been licensed or registered in good standing for at

least two years in another jurisdiction, including a foreign

country, that has licensing or registration requirements

substantially equivalent to the requirements of this chapter;

(2) has passed a national or other examination recognized by the

commission relating to the activities regulated under this

chapter; and

(3) is sponsored by a person licensed or registered by the

commission under this chapter with whom the provisional license

or registration holder will practice during the time the person

holds a provisional license or registration.

(b) The commission may waive the requirement of Subsection

(a)(3) for an applicant if the commission determines that

compliance with that subsection would be a hardship to the

applicant.

(c) A provisional license or registration is valid until the

date the commission approves or denies the provisional license or

registration holder's application for a license or registration.

The commission shall issue a license or registration under this

chapter to the provisional license or registration holder if:

(1) the provisional license or registration holder is eligible

to be licensed or registered under Section 116.0345; or

(2) the provisional license or registration holder:

(A) passes the part of the examination under Section 116.034

that relates to the applicant's knowledge and understanding of

the laws and rules relating to the activities regulated under

this chapter in this state;

(B) meets the academic and experience requirements for a license

or registration under this chapter; and

(C) satisfies any other licensing or registration requirements

under this chapter.

(d) The commission must approve or deny a provisional license or

registration holder's application for a license or registration

not later than the 180th day after the date the provisional

license or registration is issued. The commission may extend the

180-day period if the results of an examination have not been

received by the commission before the end of that period.

(e) The commission may establish a fee for provisional licenses

or registrations in an amount reasonable and necessary to cover

the cost of issuing the license or registration.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 58, eff. Sept. 1,

2001.

Sec. 116.035. DENIAL OF LICENSE. The commission may deny

issuance or renewal of a license or registration to any person

who fails to qualify under the requirements of this chapter and

rules adopted by the commission under this chapter. The

commission shall give written notice to an applicant for the

issuance or renewal of a license or for registration of the

denial of the license or registration and the reasons for denial.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.036. INSURANCE REQUIREMENT. (a) All licensees must

acquire and maintain appropriate workers' compensation or

coverage for its employees under policies of work-related

accident, disability, and health insurance, including coverage

for death benefits, from an insurance carrier authorized to

provide coverage in this state and other insurance coverage

required by the commission in the amounts required by the

commission.

(b) Notwithstanding Subsection (a) of this section, a state

agency or institution, county, municipality, school district, or

other governmental subdivision may submit evidence of workers'

compensation coverage by self-insurance if permitted by the Texas

Workers' Compensation Act (Article 8308-1.01 et seq., Vernon's

Texas Civil Statutes).

(c) The commission shall adopt rules establishing specific

requirements for insurance coverage under this chapter and

evidence of such coverage. The types and amounts of insurance

coverage required by the commission shall be based on the type

and category of licensed activity. The commission by rule may

allow a licensee to self-insure under Subsection (a) or (e) and

by rule shall establish standards for that self-insurance.

(d) The commission may not issue or renew a license, and a

licensee may not perform any licensed activity unless the

insurance coverage required by the commission's rules is in

effect and evidence of that coverage is filed with the commission

as required by commission rule.

(e) Every motor vehicle operated in this state as a conveyance

for a CNG or an LNG cargo tank must meet motor vehicle insurance

requirements established by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 6, eff. Sept.

1, 1997.

Sec. 116.037. DISCIPLINARY ACTION. (a) The commission shall

notify a licensee or registrant in writing if it finds probable

violation or noncompliance with this chapter or the rules adopted

under this chapter.

(b) The notice shall specify the particular acts, omissions, or

conduct comprising the alleged violation and shall designate a

date by which the violation must be corrected or discontinued.

(c) The licensee or registrant shall report timely compliance or

shall request extension of time for compliance if considered

necessary.

(d) If a licensee or registrant objects to the complaint or

requirements under this section, or if the commission determines

that the licensee or registrant is not proceeding adequately to

compliance, then, on written request of the licensee or

registrant or order of the commission, a public hearing must be

conducted.

(e) If the commission or division determines that the probable

violation or noncompliance constitutes an immediate danger to the

public health, safety, and welfare, it shall require the

immediate cessation of the probable violation or noncompliance

and proceed with a hearing.

(f) The commission shall revoke, suspend, or refuse to renew a

license or registration or shall reprimand the licensee or

registrant if the commission finds that the licensee or

registrant has violated or failed to comply with or is violating

or failing to comply with this chapter or a rule adopted under

this chapter.

(g) The commission may place on probation a person whose license

or registration is suspended. If a license or registration

suspension is probated, the commission may require the person:

(1) to report regularly to the commission on matters that are

the basis of the probation;

(2) to limit practice to the areas prescribed by the commission;

or

(3) to continue or review professional education until the

person attains a degree of skill satisfactory to the commission

in those areas that are the basis of the probation.

(h) Any party to a proceeding before the commission is entitled

to judicial review under the substantial evidence rule.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 1233, Sec. 59, 60, eff.

Sept. 1, 2001.

Sec. 116.038. STAGGERED RENEWAL OF LICENSES. The commission by

rule may adopt a system under which license and registration fees

required by Section 116.032 of this code expire on various dates

during the year. For the year in which the license and

registration expiration dates are changed, license and

registration fees payable on a specified date shall be prorated

on a monthly basis so that each licensee shall pay only that

portion of the license and registration fees that is allowable to

the number of months during which the license and registration is

valid. On renewal of the license and registration on the new

expiration date, the total license and registration fees are

payable.

Added by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. MOTOR VEHICLE REGULATION

Sec. 116.071. REGISTRATION RULES. The commission shall adopt

rules relating to the registration of motor vehicles that are

equipped with a CNG or LNG cargo tank and motor vehicles used

principally to transport compressed natural gas or liquefied

natural gas in portable cylinders or containers.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.072. REGISTRATION. (a) Each motor vehicle that is

equipped with a CNG or LNG cargo tank and each motor vehicle used

principally to transport CNG or LNG in portable cylinders or

containers must be registered with the commission as provided by

commission rules.

(b) The commission may not impose a fee for registration under

this section on a motor vehicle owned by a county.

(c) The commission by rule shall establish a reasonable,

nonrefundable annual registration and transfer fee for each CNG

or LNG cargo trailer, semitrailer, bobtail, and cylinder-delivery

unit registered or transferred as follows:

(1) the annual registration fee established by the commission

shall not be less than $100 nor more than $500; and

(2) the annual transfer fee established by the commission shall

not be less than $25 nor more than $100.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1991, 72nd Leg., ch. 375, Sec. 1, eff.

Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff. Sept.

1, 1993; Acts 1997, 75th Leg., ch. 66, Sec. 7, eff. Sept. 1,

1997.

Sec. 116.073. SAFETY RULES. The commission shall adopt safety

rules relating to the transportation of compressed natural gas

and liquefied natural gas in this state.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.074. COOPERATION OF THE DEPARTMENT OF PUBLIC SAFETY.

The Department of Public Safety shall cooperate with the

commission in administering and enforcing this chapter and rules

of the commission relating to regulation of motor vehicles

required to be registered under this subchapter.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.075. APPLICATION OF OTHER LAWS. This chapter and the

rules adopted under this chapter do not modify, amend, or repeal

any laws of this state relating to the regulation of motor

carriers.

Renumbered from Sec. 116.076 by Acts 1993, 73rd Leg., ch. 227,

Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER E. MISCELLANEOUS PROVISIONS

Sec. 116.101. MALODORANTS. Compressed natural gas must be

odorized as provided by Subchapter F, Chapter 121, Utilities

Code.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, Sec. 18.43, eff.

Sept. 1, 1999.

Sec. 116.102. TESTING LABORATORIES. The commission shall adopt

rules relating to testing of CNG and LNG equipment and to the

qualifications required of the persons who are to perform those

tests.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

Sec. 116.103. WARNING TAGS. (a) An employee, agent, or

inspector of the commission may declare unsafe or dangerous for

service any motor vehicle required to be registered under this

chapter or any CNG or LNG equipment or system that is defective

or that does not otherwise conform to the safety requirements of

this chapter and the rules adopted under this chapter and shall

attach a warning tag to the motor vehicle, equipment, or system

in a conspicuous location.

(b) A person may not sell, furnish, deliver, or supply

compressed natural gas and liquefied natural gas for use or

consumption by or through a motor vehicle or system in a public

place or operate a motor vehicle having CNG or LNG equipment to

which a warning tag is attached.

(c) A warning tag may be removed on approval of the commission

or by a person designated by the commission to remove the tag. A

warning tag may not be removed by any person who is not

authorized to remove the tag by the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983. Amended by Acts 1993, 73rd Leg., ch. 227, Sec. 1, eff.

Sept. 1, 1993.

SUBCHAPTER F. ENFORCEMENT

Sec. 116.141. INJUNCTIVE RELIEF. (a) On request of the

commission, the attorney general shall bring suit in the name of

the state to enjoin a person from violating this chapter or a

rule adopted under this chapter.

(b) A suit for injunction instituted under this section is in

addition to other remedies available to the commission under this

chapter.

(c) A suit seeking injunctive relief under this section shall be

brought in a district court in Travis County.

(d) The commission is not required to provide a bond in a suit

instituted under this section.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.142. CRIMINAL PENALTY. (a) A person who knowingly

violates this chapter or rules adopted by the commission under

this chapter commits an offense.

(b) An offense under this section is punishable by a fine of not

less than $100 nor more than $5,000.

(c) Each day a violation continues constitutes a separate

offense.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.143. ADMINISTRATIVE PENALTY. (a) If a person violates

this chapter, a rule of the commission adopted under this

chapter, or a term, condition, or provision of a license or

registration issued by the commission under this chapter and the

violation results in pollution of the air or water of this state

or poses a threat to the public safety, the person may be

assessed a civil penalty by the commission.

(b) The penalty may not exceed $10,000 a day for each violation.

Each day a violation continues may be considered a separate

violation for purposes of penalty assessments.

(c) In determining the amount of the penalty, the commission

shall consider the person's history of previous violations of

this chapter, the seriousness of the violation, any hazard to the

health or safety of the public, and the demonstrated good faith

of the person charged.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.144. PENALTY ASSESSMENT PROCEDURE. (a) A civil

penalty under Section 116.145 of this code may be assessed only

after the person charged with the violation has been given an

opportunity for a public hearing.

(b) If a public hearing has been held, the commission shall make

findings of fact, and it shall issue a written decision as to the

occurrence of the violation and the amount of the penalty that is

warranted, incorporating, when appropriate, an order requiring

that the penalty be paid.

(c) If appropriate, the commission shall consolidate the

hearings with other proceedings under this chapter.

(d) If the person charged with the violation fails to avail

himself of the opportunity for a public hearing, a civil penalty

may be assessed by the commission after it has determined that a

violation did occur and the amount of the penalty that is

warranted.

(e) The commission shall then issue an order requiring that the

penalty be paid.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.145. PAYMENT OF PENALTY; REFUND. (a) On the issuance

of notice or an order charging that a violation has occurred, the

commission shall inform the person charged within 30 days of the

proposed amount of the penalty.

(b) Within the 30-day period immediately following the day on

which the notice or order is issued, the person charged with the

penalty shall pay the proposed penalty in full or, if the person

wishes to contest either the amount of the penalty or the fact of

the violation, forward the proposed amount to the commission for

placement in an escrow account.

(c) If through administrative or judicial review of the proposed

penalty it is determined that no violation occurred or that the

amount of the penalty should be reduced, the commission shall,

within the 30-day period immediately following that

determination, remit the appropriate amount to the person, with

interest at the prevailing United States Department of the

Treasury rate.

(d) Failure to forward the money to the commission within the

time provided by Subsection (b) of this section results in a

waiver of all legal rights to contest the violation or the amount

of the penalty.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.

Sec. 116.146. RECOVERY OF PENALTY. Civil penalties owed under

Sections 116.143 through 116.145 of this code may be recovered in

a civil action brought by the attorney general at the request of

the commission.

Added by Acts 1983, 68th Leg., p. 487, ch. 99, Sec. 1, eff. Sept.

1, 1983.