SB273: Bill Text

LRB-3140/1

MGG:lmk&jld:rs

2007 - 2008 LEGISLATURE

2007 Senate BILL 273

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 An Act to repeal 182.0175 (1) (c) 1., 182.0175 (1) (c) 2. and 182.0175 (1m) (b); to renumber and amend 101.16 (1), 101.16 (3), 101.16 (4), 101.16 (5) and 182.0175 (1) (c) (intro.); to amend 101.02 (20) (a), 101.02 (21) (a), 101.16 (2), 101.16 (6), 182.0175 (1m) (a), 182.0175 (1m) (bm) and 182.0175 (1m) (d) 5.; and to create 101.16 (1) (intro.), 101.16 (1) (a), 101.16 (1) (b) 1. to 5., 101.16 (1) (c), 101.16 (1) (d), 101.16 (3) (title), 101.16 (3) (b), 101.16 (3g), 101.16 (3r), 101.16 (4) (title), 101.16 (4) (b), 101.16 (4) (c), 101.16 (5) (title), 101.16 (5) (b), 101.16 (5) (c), 101.16 (5) (d), 101.16 (5m), 101.19 (1) (L), 182.0175 (1) (bv), 182.0175 (1m) (d) 4m., 182.0175 (1m) (e), 182.0175 (2m) (bm) (title) and 182.0175 (2m) (br) of the statutes; relating to: the regulation of certain suppliers of liquefied petroleum gas, applicability of the statewide system for notification of the location of transmission facilities, granting rule-making authority, and providing 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, s. 1 Section 1. 101.02 (20) (a) of the statutes, as affected by 2005 Wisconsin Act 456, is amended to read:

SB273,3,8 101.02 (20) (a) For purposes of this subsection, "license" means a license, permit or certificate of certification or registration issued by the department under ss. 101.09 (3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.16 (3g), 101.17, 101.177 (4) (a), 101.178 (2) or (3) (a), 101.63 (2) or (2m), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87, 101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4), 145.035, 145.045, 145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).

SB273, s. 2 Section 2. 101.02 (21) (a) of the statutes, as affected by 2005 Wisconsin Act 456, is amended to read:

SB273,4,3 101.02 (21) (a) In this subsection, "license" means a license, permit or certificate of certification or registration issued by the department under s. 101.09 (3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.16 (3g), 101.17, 101.177 (4) (a), 101.178 (2) or (3) (a), 101.63 (2), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87, 101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4), 145.035, 145.045, 145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).

SB273, s. 3 Section 3. 101.16 (1) (intro.) of the statutes is created to read:

SB273,4,5 101.16 (1) Definitions. (intro.) In this section:

SB273, s. 4 Section 4. 101.16 (1) of the statutes is renumbered 101.16 (1) (b) (intro.) and amended to read:

SB273,4,12 101.16 (1) (b) (intro.) The term "liquefied "Liquefied petroleum gas" as used in this section, shall mean and include means any material which is composed predominantly of any of the following hydrocarbons or mixtures of the same: propane, propylene, butanes, normal butane or isobutane and butylenes. the following hydrocarbons:

SB273, s. 5 Section 5. 101.16 (1) (a) of the statutes is created to read:

SB273,4,16 101.16 (1) (a) "Department of transportation cylinder" means a container that holds liquefied petroleum gas and that meets the specifications established by the federal department of transportation.

SB273, s. 6 Section 6. 101.16 (1) (b) 1. to 5. of the statutes are created to read:

SB273,4,18 101.16 (1) (b) 1. Propane.

SB273,4,19 2. Propylene.

SB273,4,20 3. Butane.

SB273,4,21 4. Normal butane or isobutane.

SB273,4,22 5. Butylene.

SB273, s. 7 Section 7. 101.16 (1) (c) of the statutes is created to read:

SB273,5,4 101.16 (1) (c) "Propane gas system" means an assembly consisting of one or more containers that has a total water capacity of at least 100 gallons and a means of conveying propane gas from the container or containers to a point of connection with devices used to consume the propane gas. A "propane gas system" includes all piping and other components associated with the assembly that are used to control the quantity, flow, pressure, and physical state of the propane gas.

SB273, s. 8 Section 8. 101.16 (1) (d) of the statutes is created to read:

SB273,5,10 101.16 (1) (d) "Retail supplier" means a person engaged in the business of filling containers that have a water capacity of at least 4 pounds with liquefied petroleum gas that is intended to be used directly from the containers as fuel. "Retail supplier" does not include a person who fills such containers with liquefied petroleum gas for the person's own use.

SB273, s. 9 Section 9. 101.16 (2) of the statutes is amended to read:

SB273,5,19 101.16 (2) Rules. The department shall promulgate rules to ascertain, fix , and order such reasonable standards, rules, or regulations for the design, construction, location, installation, operation, repair, and maintenance of equipment for storage, handling, use, and transportation by tank truck or tank trailer, of liquefied petroleum gases for fuel purposes, and for the odorization of said gases used therewith, as shall render such equipment safe. The promulgation, effect and review of standards, rules and regulations adopted under this section shall be controlled by this chapter.

SB273, s. 10 Section 10. 101.16 (3) (title) of the statutes is created to read:

SB273,5,21 101.16 (3) (title) Filling, evacuating, and use of containers.

SB273, s. 11 Section 11. 101.16 (3) of the statutes is renumbered 101.16 (3) (a) and amended to read:

SB273,6,3 101.16 (3) (a) No Except as provided in par. (b), no person, firm or corporation, except other than the owner thereof and those duly of a liquefied petroleum gas container or a person authorized by the owner so to do, shall, may fill, refill, evacuate, or use in any other manner a liquefied petroleum gas the container or receptacle for any purpose whatsoever.

SB273, s. 12 Section 12. 101.16 (3) (b) of the statutes is created to read:

SB273,6,7 101.16 (3) (b) A retail supplier may evacuate a liquefied petroleum gas container not under its ownership in order to transfer the remaining liquefied petroleum gas that is in that container into a container that is under its ownership.

SB273, s. 13 Section 13. 101.16 (3g) of the statutes is created to read:

SB273,6,14 101.16 (3g) License required. (a) No retail supplier may distribute liquefied petroleum gas without holding a license issued by the department. The department, subject to s. 101.02 (20) and (21), shall issue a license to be a retail supplier upon receiving the fee established under s. 101.19 (1) (L) and upon obtaining proof of financial responsibility as required under sub. (3r) (c). The term of the license shall be set by the department, not to exceed 2 years.

SB273,6,16 (b) The department shall publish an annual list of all retail suppliers holding valid licenses under par. (a).

SB273, s. 14 Section 14. 101.16 (3r) of the statutes is created to read:

SB273,6,22 101.16 (3r) Financial responsibility. (a) Except as provided in par. (b), a retail supplier shall maintain proof of financial responsibility in the amount of $1,000,000 per occurrence with an annual aggregate of $2,000,000 for compensating 3rd parties for bodily injury and property damages for incidents associated with the release of liquefied petroleum gas.

SB273,7,3 (b) A retail supplier who only fills department of transportation cylinders or who only fills containers for engine and recreational vehicle fueling systems shall maintain proof of financial responsibility in the amount of $500,000 per occurrence with an annual aggregate of $1,000,000 for compensating 3rd parties for bodily injury and property damages for incidents associated with the release of liquefied petroleum gas.

SB273,7,5 (c) A retail supplier may obtain any of the following to prove financial responsibility as required under par. (a) or (b):

SB273,7,8 1. A surety bond that is issued by a surety company that is listed as an acceptable surety for federal bonds on the date that the surety bond is obtained in the most recently published U.S. department of the treasury's circular 570.

SB273,7,11 2. An irrevocable letter of credit that is issued by a financial institution that is authorized to do business in this state or that is federally chartered. The letter of credit shall be for an initial period of at least one year.

SB273,7,15 3. Commercial general liability insurance as an endorsement to an existing policy or as a separate policy from an insurer, or a risk retention group, that is licensed to transact the business of insurance in this state or that is eligible to provide insurance as a surplus lines insurer in one or more states.