LRB-3140/1
MGG:lmk&jld:rs
2007 - 2008 LEGISLATURE
September 25, 2007 - Introduced by Senators A. Lasee, Plale, Hansen, Kapanke
and Schultz, cosponsored by Representatives Bies, Ballweg, Boyle, Davis,
Hahn, Kerkman, LeMahieu, Molepske, Montgomery, Mursau, Nerison,
Nygren, A. Ott, Petersen, Shilling, Tauchen and Zepnick. Referred to
Committee on Commerce, Utilities and Rail.
SB273,2,2
1An Act to repeal 182.0175 (1) (c) 1., 182.0175 (1) (c) 2. and 182.0175 (1m) (b);
2to renumber and amend 101.16 (1), 101.16 (3), 101.16 (4), 101.16 (5) and
3182.0175 (1) (c) (intro.);
to amend 101.02 (20) (a), 101.02 (21) (a), 101.16 (2),
4101.16 (6), 182.0175 (1m) (a), 182.0175 (1m) (bm) and 182.0175 (1m) (d) 5.; and
5to create 101.16 (1) (intro.), 101.16 (1) (a), 101.16 (1) (b) 1. to 5., 101.16 (1) (c),
6101.16 (1) (d), 101.16 (3) (title), 101.16 (3) (b), 101.16 (3g), 101.16 (3r), 101.16
7(4) (title), 101.16 (4) (b), 101.16 (4) (c), 101.16 (5) (title), 101.16 (5) (b), 101.16
8(5) (c), 101.16 (5) (d), 101.16 (5m), 101.19 (1) (L), 182.0175 (1) (bv), 182.0175
9(1m) (d) 4m., 182.0175 (1m) (e), 182.0175 (2m) (bm) (title) and 182.0175 (2m)
10(br) of the statutes;
relating to: the regulation of certain suppliers of liquefied
11petroleum gas, applicability of the statewide system for notification of the
1location of transmission facilities, granting rule-making authority, and
2providing a penalty.
Analysis by the Legislative Reference Bureau
Suppliers of liquified petroleum gas
Under current law, the Department of Commerce (Commerce) is authorized to
promulgate rules for the installation, operation, repair, and maintenance of
equipment for the storage, transportation, and use of liquefied petroleum gas (LPG)
that is used for fuel purposes. Types of liquefied petroleum gases include propane
gas and butane gas.
This bill requires that a supplier who fills containers with LPG, which is
intended to be used directly by the consumer, must be licensed. The bill authorizes
commerce to establish a fee for this license. The bill also requires such a supplier of
LPG maintain proof of insurance or other financial means to compensate third
parties for bodily injury and property damage for incidents associated with the
release of LPG. The bill specifies the types of insurance or other financial means that
the supplier may use.
Current law also requires that installers of equipment that use LPG for fuel
purposes furnish the customer a statement showing the customer how the design,
location, and installation of the equipment is in compliance with the rules
promulgated by Commerce. This bill imposes additional notice requirements.
Under the bill, a customer of a propane gas supplier must notify the supplier of any
interruption in the operation of the customer's propane gas system due to
modifications, repairs, servicing, or a replacement of the system that is performed
by any person other than the supplier. The bill defines for purposes of this
notification requirement that a "propane gas system" be one that has a total water
capacity of at least 100 gallons. The bill establishes a time frame for this notice
provided by the customer. The bill also requires that the supplier give the customer
written notice of the customer's duty to notify when the supplier first delivers
propane gas to the customer.
The bill also authorizes a licensed supplier who suffers damages caused by the
filling of LPG containers by a unlicensed supplier to sue for an injunction and for
monetary relief. The bill provides a formula for calculating the amount of the
monetary award.
Statewide communication system
Under current law, owners of "transmission facilities" of electricity, gases,
water, and other energy or telecommunication sources are required to be members
of a statewide communication system under which a single operational center
receives notices of proposed excavation and transmits certain information to the
transmission facility owners affected by those notices. This system is commonly
referred to as the "diggers hotline." Under current law, propane and other fuel
storage tanks and pipelines are excluded from the definition of "transmission
facilities" if they do not cross the public rights-of-way and if they are located on
property that is leased or owned by the owners of the tanks and pipelines (private
fuel systems). Therefore, none of the notification or excavation requirements under
the statewide system apply to private fuel systems. As to transmission facilities
other than private fuel systems that do not cross rights-of-way and that are on
property leased or owned by the owner of the facilities (private transmission
facilities), the owners of the transmission facilities are not required to be members
of the statewide system. Examples of these private transmission facilities are
underground lines from the principal building to a garage or barn or an underground
sprinkler system. However, excavators are required to take reasonable action to
learn the location of these facilities and owners of these facilities are required to
repair and inspect the facilities if they are notified that these facilities have been
damaged. Under the bill, private fuel systems are treated in the same manner as
private transmission facilities.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB273,3,83
101.02
(20) (a) For purposes of this subsection, "license" means a license,
4permit or certificate of certification or registration issued by the department under
5ss. 101.09 (3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e),
101.16 (3g), 101.17,
6101.177 (4) (a), 101.178 (2) or (3) (a), 101.63 (2) or (2m), 101.653, 101.73 (5) or (6),
7101.82 (2), 101.87, 101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4),
8145.035, 145.045, 145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB273,4,311
101.02
(21) (a) In this subsection, "license" means a license, permit or
12certificate of certification or registration issued by the department under s. 101.09
13(3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e),
101.16 (3g), 101.17, 101.177 (4)
1(a), 101.178 (2) or (3) (a), 101.63 (2), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87,
2101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4), 145.035, 145.045,
3145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB273, s. 3
4Section
3. 101.16 (1) (intro.) of the statutes is created to read:
SB273,4,55
101.16
(1) Definitions. (intro.) In this section:
SB273, s. 4
6Section
4. 101.16 (1) of the statutes is renumbered 101.16 (1) (b) (intro.) and
7amended to read:
SB273,4,128
101.16
(1) (b) (intro.)
The term "liquefied "Liquefied petroleum gas"
as used in
9this section, shall mean and include means any material which is composed
10predominantly of any of the following hydrocarbons or mixtures of the
same:
11propane, propylene, butanes, normal butane or isobutane and butylenes. the
12following hydrocarbons:
SB273, s. 5
13Section
5. 101.16 (1) (a) of the statutes is created to read:
SB273,4,1614
101.16
(1) (a) "Department of transportation cylinder" means a container that
15holds liquefied petroleum gas and that meets the specifications established by the
16federal department of transportation.
SB273, s. 6
17Section
6. 101.16 (1) (b) 1. to 5. of the statutes are created to read:
SB273,4,1818
101.16
(1) (b) 1. Propane.
SB273,4,1919
2. Propylene.
SB273,4,2121
4. Normal butane or isobutane.
SB273,4,2222
5. Butylene.
SB273, s. 7
23Section
7. 101.16 (1) (c) of the statutes is created to read:
SB273,5,424
101.16
(1) (c) "Propane gas system" means an assembly consisting of one or
25more containers that has a total water capacity of at least 100 gallons and a means
1of conveying propane gas from the container or containers to a point of connection
2with devices used to consume the propane gas. A "propane gas system" includes all
3piping and other components associated with the assembly that are used to control
4the quantity, flow, pressure, and physical state of the propane gas.
SB273, s. 8
5Section
8. 101.16 (1) (d) of the statutes is created to read:
SB273,5,106
101.16
(1) (d) "Retail supplier" means a person engaged in the business of
7filling containers that have a water capacity of at least 4 pounds with liquefied
8petroleum gas that is intended to be used directly from the containers as fuel. "Retail
9supplier" does not include a person who fills such containers with liquefied
10petroleum gas for the person's own use.
SB273, s. 9
11Section
9. 101.16 (2) of the statutes is amended to read:
SB273,5,1912
101.16
(2) Rules. The department shall
promulgate rules to ascertain, fix
, and
13order such reasonable standards, rules
, or regulations for the design, construction,
14location, installation, operation, repair
, and maintenance of equipment for storage,
15handling, use, and transportation by tank truck or tank trailer, of liquefied
16petroleum gases for fuel purposes, and for the odorization of said gases used
17therewith, as shall render such equipment safe.
The promulgation, effect and review
18of standards, rules and regulations adopted under this section shall be controlled by
19this chapter.
SB273, s. 10
20Section
10. 101.16 (3) (title) of the statutes is created to read:
SB273,5,2121
101.16
(3) (title)
Filling, evacuating, and use of containers.
SB273, s. 11
22Section
11. 101.16 (3) of the statutes is renumbered 101.16 (3) (a) and
23amended to read:
SB273,6,324
101.16
(3) (a)
No Except as provided in par. (b), no person,
firm or corporation,
25except other than the owner
thereof and those duly of a liquefied petroleum gas
1container or a person authorized by the owner
so to do, shall, may fill, refill
, evacuate, 2or use in any
other manner
a liquefied petroleum gas the container
or receptacle for
3any purpose
whatsoever.
SB273, s. 12
4Section
12. 101.16 (3) (b) of the statutes is created to read:
SB273,6,75
101.16
(3) (b) A retail supplier may evacuate a liquefied petroleum gas
6container not under its ownership in order to transfer the remaining liquefied
7petroleum gas that is in that container into a container that is under its ownership.
SB273, s. 13
8Section
13. 101.16 (3g) of the statutes is created to read:
SB273,6,149
101.16
(3g) License required. (a) No retail supplier may distribute liquefied
10petroleum gas without holding a license issued by the department. The department,
11subject to s. 101.02 (20) and (21), shall issue a license to be a retail supplier upon
12receiving the fee established under s. 101.19 (1) (L) and upon obtaining proof of
13financial responsibility as required under sub. (3r) (c). The term of the license shall
14be set by the department, not to exceed 2 years.
SB273,6,1615
(b) The department shall publish an annual list of all retail suppliers holding
16valid licenses under par. (a).
SB273, s. 14
17Section
14. 101.16 (3r) of the statutes is created to read:
SB273,6,2218
101.16
(3r) Financial responsibility. (a) Except as provided in par. (b), a retail
19supplier shall maintain proof of financial responsibility in the amount of $1,000,000
20per occurrence with an annual aggregate of $2,000,000 for compensating 3rd parties
21for bodily injury and property damages for incidents associated with the release of
22liquefied petroleum gas.
SB273,7,323
(b) A retail supplier who only fills department of transportation cylinders or
24who only fills containers for engine and recreational vehicle fueling systems shall
25maintain proof of financial responsibility in the amount of $500,000 per occurrence
1with an annual aggregate of $1,000,000 for compensating 3rd parties for bodily
2injury and property damages for incidents associated with the release of liquefied
3petroleum gas.
SB273,7,54
(c) A retail supplier may obtain any of the following to prove financial
5responsibility as required under par. (a) or (b):
SB273,7,86
1. A surety bond that is issued by a surety company that is listed as an
7acceptable surety for federal bonds on the date that the surety bond is obtained in
8the most recently published U.S. department of the treasury's circular 570.
SB273,7,119
2. An irrevocable letter of credit that is issued by a financial institution that
10is authorized to do business in this state or that is federally chartered. The letter of
11credit shall be for an initial period of at least one year.
SB273,7,1512
3. Commercial general liability insurance as an endorsement to an existing
13policy or as a separate policy from an insurer, or a risk retention group, that is
14licensed to transact the business of insurance in this state or that is eligible to
15provide insurance as a surplus lines insurer in one or more states.
SB273,7,1816
(d) A retail supplier who fails to maintain proof of financial responsibility as
17required under par. (a) or (b), may not distribute liquefied petroleum gas at retail
18until such proof is obtained.
SB273,7,2019
(e) Each retail supplier shall file proof of financial responsibility as required
20under this subsection with the department.
SB273,7,2421
(f) A 3rd party that issues a surety bond, letter of credit, or general liability
22insurance to a retail supplier for purposes of this subsection shall provide written
23notice to the retail supplier and to the department at least 60 days before canceling,
24revoking, suspending, or failing to renew the bond, letter, or insurance.
SB273,8,5
1(g) A retail supplier that cancels or fails to renew a surety bond, letter of credit,
2or general liability insurance shall notify the department at least 60 days before
3cancelling or failing to renew the bond, letter, or insurance. Upon receipt of the
4notice, the department shall revoke the retail supplier's license issued under sub.
5(3g).
SB273,8,86
(h) A financial institution that issues an irrevocable letter of credit to retail
7supplier for purposes of this subsection shall renew the letter automatically unless
8notice is given as required under par. (f).
SB273, s. 15
9Section
15. 101.16 (4) (title) of the statutes is created to read: