LRB-3776/1
KRP:amn
2015 - 2016 LEGISLATURE
January 11, 2016 - Introduced by Senators Lasee and
Nass, cosponsored by
Representatives Heaton, Kulp, Ballweg, Kremer, Czaja, E. Brooks, T.
Larson, Thiesfeldt, Edming and Rodriguez. Referred to Committee on
Insurance, Housing, and Trade.
SB547,1,10
1An Act to repeal 101.16 (3r) (c) 1., 101.16 (3r) (c) 2. and 101.16 (3r) (h);
to
2consolidate, renumber and amend 101.16 (3r) (c) (intro.) and 3.;
to amend
3101.16 (1) (d), 101.16 (3) (b), 101.16 (3g) (a), 101.16 (3g) (b), 101.16 (3r) (a),
4101.16 (3r) (b), 101.16 (3r) (d), 101.16 (3r) (e), 101.16 (3r) (f), 101.16 (3r) (g),
5101.16 (4) (b) 1., 101.16 (4) (b) 2., 101.16 (4) (c) (intro.), 1. and 2., 101.16 (5) (b),
6101.16 (5) (c), 101.16 (5) (cm), 101.16 (5) (cn), 101.16 (5) (d), 101.16 (5m) (a),
7101.16 (5m) (b), 101.19 (1g) (L), 101.19 (1m) and 182.0175 (1m) (e) 2.; and
to
8repeal and recreate 101.16 (3r) (title) of the statutes;
relating to:
9requirements imposed on retailers of liquefied petroleum gas for proving
10financial responsibility.
Analysis by the Legislative Reference Bureau
This bill requires a retailer of liquefied petroleum gas (LPG) to obtain
commercial general liability insurance.
Under current law, a retail supplier of LPG must hold a license issued by the
Department of Safety and Professional Services. In order to receive a license, a retail
supplier must maintain proof of financial responsibility of the supplier's ability to
pay claims for bodily injury or property damages caused by incidents associated with
the release of LPG. Under current law, a retail supplier may prove financial
responsibility by obtaining a surety bond, an irrevocable letter of credit, or
commercial general liability insurance.
This bill eliminates the options of obtaining a surety bond or a letter of credit.
Under the bill, commercial general liability insurance must be obtained. The bill also
changes the term "retail supplier" to "retailer."
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB547,1
1Section
1. 101.16 (1) (d) of the statutes is amended to read:
SB547,2,62
101.16
(1) (d) "
Retail supplier
Retailer" means a person engaged in the
3business of filling containers that have a water capacity of at least 4 pounds with
4liquefied petroleum gas that is intended to be used directly from the containers as
5fuel. "
Retail supplier Retailer" does not include a person who fills such containers
6with liquefied petroleum gas for the person's own use.
SB547,2
7Section
2. 101.16 (3) (b) of the statutes is amended to read:
SB547,2,118
101.16
(3) (b) A
retail supplier
retailer may evacuate a liquefied petroleum gas
9container not under
its the retailer's ownership in order to transfer the remaining
10liquefied petroleum gas that is in
that the container into a container that is under
11its the retailer's ownership.
SB547,3
12Section
3. 101.16 (3g) (a) of the statutes is amended to read:
SB547,3,213
101.16
(3g) (a) No
retail supplier
retailer may distribute liquefied petroleum
14gas without holding a license issued by the department. The department, subject to
15s. 101.02 (20) and (21), shall issue a license to be a
retail supplier retailer upon
16receiving the fee established under s. 101.19 (1g) (L) or (1m) and upon
the retailer's 17obtaining
proof of financial responsibility commercial general liability insurance as
1required under sub. (3r) (c). The term of the license shall be set by the department,
2not to exceed 2 years.
SB547,4
3Section
4. 101.16 (3g) (b) of the statutes is amended to read:
SB547,3,54
101.16
(3g) (b) The department shall publish an annual list of all
retail
5suppliers retailers holding valid licenses under par. (a).
SB547,5
6Section
5. 101.16 (3r) (title) of the statutes is repealed and recreated to read:
SB547,3,77
101.16
(3r) (title)
Commercial general liability insurance.
SB547,6
8Section
6. 101.16 (3r) (a) of the statutes is amended to read:
SB547,3,139
101.16
(3r) (a) Except as provided in par. (b), a
retail supplier retailer shall
10maintain
proof of financial responsibility commercial general liability insurance in
11the amount of $1,000,000 per occurrence with an annual aggregate of $2,000,000 for
12compensating 3rd parties for bodily injury and property damages for incidents
13associated with the release of liquefied petroleum gas.
SB547,7
14Section
7. 101.16 (3r) (b) of the statutes is amended to read:
SB547,3,2015
101.16
(3r) (b) A
retail supplier
retailer who only fills department of
16transportation cylinders or who only fills containers for engine and recreational
17vehicle fueling systems shall maintain
proof of financial responsibility commercial
18general liability insurance in the amount of $500,000 per occurrence with an annual
19aggregate of $1,000,000 for compensating 3rd parties for bodily injury and property
20damages for incidents associated with the release of liquefied petroleum gas.
SB547,8
21Section
8. 101.16 (3r) (c) (intro.) and 3. of the statutes are consolidated,
22renumbered 101.16 (3r) (c) and amended to read:
SB547,4,323
101.16
(3r) (c) A
retail supplier
retailer may
obtain any of the following to prove
24financial responsibility as required meet the insurance requirement under par. (a)
25or (b)
: 3. Commercial by obtaining commercial general liability insurance as an
1endorsement to an existing policy or as a separate policy from an insurer, or a risk
2retention group, that is licensed to transact the business of insurance in this state
3or that is eligible to provide insurance as a surplus lines insurer in one or more states.
SB547,9
4Section
9. 101.16 (3r) (c) 1. of the statutes is repealed.
SB547,10
5Section
10. 101.16 (3r) (c) 2. of the statutes is repealed.
SB547,11
6Section
11. 101.16 (3r) (d) of the statutes is amended to read:
SB547,4,107
101.16
(3r) (d) A
retail supplier
retailer who fails to maintain
proof of financial
8responsibility commercial general liability insurance as required under par. (a) or
9(b)
, may not distribute liquefied petroleum gas at retail until
such proof the
10insurance is obtained.
SB547,12
11Section
12. 101.16 (3r) (e) of the statutes is amended to read:
SB547,4,1712
101.16
(3r) (e) Each
retail supplier
retailer shall file
with the department proof
13of
financial responsibility commercial general liability insurance coverage as
14required under this subsection
with the. The department
shall maintain a list on the
15department's Internet site that contains the names of each retailer licensed under
16this section and the status of the retailer's commercial general liability insurance
17coverage.
SB547,13
18Section
13. 101.16 (3r) (f) of the statutes is amended to read:
SB547,4,2319
101.16
(3r) (f) A 3rd party that issues
a surety bond, a letter of credit, or 20commercial general liability insurance to a
retail supplier retailer for purposes of
21this subsection shall provide written notice to the
retail supplier retailer and to the
22department at least 60 days before canceling, revoking, suspending, or failing to
23renew the
bond, letter, or insurance.
SB547,14
24Section
14. 101.16 (3r) (g) of the statutes is amended to read:
SB547,5,5
1101.16
(3r) (g) A
retail supplier that retailer who cancels or fails to renew
a
2surety bond, a letter of credit, or commercial general liability insurance shall notify
3the department at least 60 days before cancelling or failing to renew the
bond, letter,
4or insurance. Upon receipt of the notice, the department shall revoke the
retail
5supplier's retailer's license issued under sub. (3g).
SB547,15
6Section
15. 101.16 (3r) (h) of the statutes is repealed.
SB547,16
7Section
16. 101.16 (4) (b) 1. of the statutes is amended to read:
SB547,5,188
101.16
(4) (b) 1. A person who owns, leases, or uses a propane gas system and
9who is a customer of a
retail supplier retailer shall notify the
retail supplier retailer 10of propane gas for the propane gas system of any interruption in the operation of the
11propane gas system due to the replacement, modification, repair, or servicing of the
12propane gas system by any person other than the
retail supplier retailer. The
13customer shall provide the notice at least 7 days in advance of the interruption in the
14operation of the propane gas system, except as provided in subd. 2. The
retail
15supplier retailer, or the person replacing, modifying, repairing, or servicing the
16propane gas system, shall perform a check for leaks or other defects in the propane
17gas system before placing the propane gas system back into operation in the manner
18required by rule.
SB547,17
19Section
17. 101.16 (4) (b) 2. of the statutes is amended to read:
SB547,5,2320
101.16
(4) (b) 2. If the interruption of a propane gas system subject to subd. 1.
21is due to emergency repair or servicing, the customer shall provide the notice to the
22retail supplier retailer as soon as possible and no later than 24 hours after the repair
23or servicing is completed.
SB547,18
24Section
18. 101.16 (4) (c) (intro.), 1. and 2. of the statutes are amended to read:
SB547,6,6
1101.16
(4) (c) (intro.) Each
retail supplier retailer filling a container that is part
2of a propane gas system shall provide written notice to each customer subject to par.
3(b) of the customer's duty under par. (b) before the
retail supplier's retailer's first
4delivery of propane gas to that customer and shall provide subsequent notices on an
5annual basis. The notice shall include all of the following information concerning the
6duty to notify under par. (b):
SB547,6,77
1. The name, address, and telephone number of the
retail supplier retailer.
SB547,6,88
2. The purpose of giving the notification to the
retail supplier retailer.
SB547,19
9Section
19. 101.16 (5) (b) of the statutes is amended to read:
SB547,6,1310
101.16
(5) (b) Except as provided in par. (c), any
retail supplier retailer who
11violates sub. (3g) or (3r) shall forfeit not less than $500 and not more than $1,000 for
12the first offense and not less than $2,000
but and not more than $5,000 for each
13subsequent offense.
SB547,20
14Section
20. 101.16 (5) (c) of the statutes is amended to read:
SB547,6,1815
101.16
(5) (c) Any
retail supplier
retailer who violates sub. (3g) or (3r) shall
16forfeit not less than $200 and not more than $400 for the first offense and not less
17than $800
but and not more than $2,000 for each subsequent offense if the
retail
18supplier retailer is one of the following:
SB547,6,2019
1. A
retail supplier retailer who only fills department of transportation
20cylinders.
SB547,6,2221
2. A
retail supplier retailer who only fills containers for engine and recreational
22vehicle fueling systems.
SB547,21
23Section
21. 101.16 (5) (cm) of the statutes is amended to read:
SB547,7,324
101.16
(5) (cm) Except as provided in par. (cn), any
retail supplier retailer who
25intentionally violates sub. (3g) or (3r) shall be imprisoned not less than 30 days
nor
1and not more than 6 months or shall be fined not less than $500
nor and not more
2than $1,000 for the first offense and not less than $2,000
nor and not more than
3$5,000 for each subsequent offense.
SB547,22
4Section
22. 101.16 (5) (cn) of the statutes is amended to read:
SB547,7,105
101.16
(5) (cn) Any
retail supplier
retailer who only fills department of
6transportation cylinders or containers for engine and recreational vehicles and who
7intentionally violates sub. (3g) or (3r) shall be imprisoned not less than 30 days
nor 8and not more than 6 months or shall be fined not less than $200
nor and not more
9than $400 for the first offense and not less than $800
nor and not more than $2,000
10for each subsequent offense.
SB547,23
11Section
23. 101.16 (5) (d) of the statutes is amended to read:
SB547,7,1512
101.16
(5) (d) If a
retail supplier
retailer is found in violation of sub. (3g) or (3r),
13the court shall require that the
retail supplier
retailer cease distributing liquefied
14petroleum gas at retail until the
retail supplier
retailer is issued the license required
15under sub. (3g).
SB547,24
16Section
24. 101.16 (5m) (a) of the statutes is amended to read:
SB547,7,2117
101.16
(5m) (a) Any
retail supplier
retailer who is licensed under sub. (3g) and
18who suffers damages caused by the filling of a container that is not a department of
19transportation cylinder by another
retail supplier
retailer who is not so licensed may
20bring an action against the unlicensed
retail supplier
retailer to do any of the
21following:
SB547,7,2322
1. Enjoin the unlicensed
retail supplier retailer from distributing liquefied
23petroleum gas at retail until the
retail supplier
retailer receives the required license.
SB547,8,3
12. Receive monetary damages equal to 3 times the amount of any monetary loss
2sustained or $2,000, whichever is greater, multiplied by each day that the unlicensed
3supplier retailer is not licensed under sub. (3g).
SB547,25
4Section
25. 101.16 (5m) (b) of the statutes is amended to read:
SB547,8,65
101.16
(5m) (b) Notwithstanding s. 814.04 (1), a
retail supplier retailer who
6prevails in an action under par. (a) shall be awarded reasonable attorney fees.
SB547,26
7Section
26. 101.19 (1g) (L) of the statutes is amended to read:
SB547,8,108
101.19
(1g) (L) Issuing licenses to
retail suppliers retailers, as defined in s.
9101.16 (1) (d), of liquefied petroleum gas under s. 101.16 (3g), except as provided in
10sub. (1m).
SB547,27
11Section
27. 101.19 (1m) of the statutes is amended to read:
SB547,8,1412
101.19
(1m) The department shall collect an annual fee of $20 for issuing a
13license under s. 101.16 (3g) to a
retail supplier
retailer who only fills department of
14transportation cylinders.