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H. 4688
STATUS INFORMATION
General Bill
Sponsors: Rep. Battle
Document Path: l:\council\bills\nbd\12003ac08.doc
Introduced in the House on February 13, 2008
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Liquefied petroleum gas
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/13/2008 House Introduced and read first time HJ-4
2/13/2008 House Referred to Committee on Labor, Commerce and Industry
HJ-5
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-82-1 SO AS TO PROVIDE THAT THE POLICY AND PURPOSE OF CHAPTER 82, TITLE 40 IS TO PROMOTE THE SAFETY OF THE PUBLIC AND THE ENVIRONMENT BY EFFECTIVE REGULATION OF LIQUEFIED PETROLEUM GAS; TO AMEND SECTION 40-82-5, RELATING TO OTHER LAW APPLICABLE TO THE LIQUEFIED PETROLEUM GAS BOARD AND LICENSEES, SO AS TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 40-82-10, RELATING TO THE LIQUEFIED PETROLEUM GAS BOARD, SO AS TO DELETE THE PROVISION THAT REQUIRES A VOTE BY FOUR OF THE SEVEN MEMBERS TO TAKE ACTION; TO AMEND SECTION 40-82-20, RELATING TO THE DEFINITION OF TERMS USED IN THE LICENSURE AND REGULATION OF LIQUEFIED PETROLEUM GAS, SO AS TO DEFINE "WHOLESALER" AND "BULK PLANT" AND TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 40-82-70, RELATING TO DUTIES OF THE BOARD, SO AS TO DELETE OUTDATED REFERENCES; TO AMEND SECTION 40-82-120, RELATING TO SANCTIONS THAT MAY BE IMPOSED BY THE BOARD FOR VIOLATIONS, SO AS TO INCLUDE REPRIMANDS, CIVIL FINES, AND LICENSE RESTRICTION, SUSPENSION, AND REVOCATION; TO AMEND SECTION 40-82-220, RELATING TO LICENSURE REQUIREMENTS, SO AS TO FURTHER SPECIFY THESE REQUIREMENTS, INCLUDING ESTABLISHING A LIMITATION ON THE NUMBER OF SITES FOR WHICH A PERSON MAY BE RESPONSIBLE AND THE DISTANCE OF SUCH SITES FROM THE PERSON'S WORK SITE AND ESTABLISHING LICENSURE FOR LIQUEFIED PETROLEUM GAS WHOLESALERS; TO AMEND SECTION 40-82-250, RELATING TO LIABILITY INSURANCE REQUIREMENTS FOR LIQUEFIED PETROLEUM GAS PLANTS, DEALERS, RESELLERS, CYLINDER EXCHANGE COMPANIES, AND INSTALLERS, SO AS TO INCLUDE WHOLESALERS AND TO INCREASE THE REQUIRED COVERAGE FROM FIVE HUNDRED THOUSAND DOLLARS TO ONE MILLION DOLLARS; TO AMEND SECTION 40-82-280, RELATING TO SANCTIONS THAT MAY BE IMPOSED BY THE STATE FIRE MARSHAL FOR CONDITIONS HAZARDOUS TO THE PUBLIC SAFETY, SO AS TO PROVIDE THAT SUCH SANCTIONS MAY BE IMPOSED FOR CHAPTER VIOLATIONS AND TO FURTHER SPECIFY THE ADMINISTRATIVE PENALTIES THAT MAY BE IMPOSED; TO AMEND SECTION 40-82-310, RELATING TO REQUIRING FIRE REPORTS TO BE MADE BY AN OWNER, MANAGER, OR OPERATOR OF A VEHICLE OR EQUIPMENT REGULATED BY THIS CHAPTER, SO AS TO DELETE OWNERS, MANAGERS, AND OPERATORS OF VEHICLES FROM THIS REQUIREMENT; TO REPEAL SECTIONS 40-82-240, 40-82-290, AND 40-82-300 RELATING, RESPECTIVELY, TO DEALER STORAGE CAPACITIES, GROUNDING ELECTRICAL CIRCUITS OR APPLIANCES, AND SAFETY CUT OFF VALVES; AND TO RENAME CHAPTER 82, TITLE 40 "LIQUEFIED PETROLEUM GAS".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 82, Title 40 of the 1976 Code is amended by adding:
"Section 40-82-1. It is the policy of this State, and the purpose of this chapter, to promote the safety of the public and the environment by effective regulation of liquefied petroleum gas. The public safety requires that persons who handle liquefied petroleum gas have demonstrated their qualifications and that they adhere to reliable safety standards. It is not the policy of this State or the purpose of this chapter to place undue restrictions upon entry into business handling liquefied petroleum gas."
SECTION 2. Section 40-82-5 of the 1976 Code is amended to read:
"Section 40-82-5. Unless otherwise provided for in this chapter, Article 1, Chapter 1 of Title 40 applies to the Liquid Liquefied Petroleum Gas Board and licensees regulated under this chapter. If there is a conflict between this chapter and Article 1, Chapter 1 of Title 40, the provisions of this chapter control."
SECTION 3. Section 40-82-10 of the 1976 Code is amended to read:
"Section 40-82-10. (A) There is created the Liquefied Petroleum Gas Board composed of seven members appointed by the Governor. One appointee must be a fireman, two must be liquefied petroleum gas dealers licensed under this chapter, one must be licensed under this chapter in any other classification, one must be a representative of the insurance industry, and two must be members of the public who do not possess a pecuniary interest in an entity engaged in a business directly involving liquefied petroleum gas. Board members from the general public may be nominated by an individual, group, or association and must be appointed by the Governor in accordance with Section 40-1-45.
(B) The chairman must be elected for a one-year term. Terms of office for members are for two years and until their successors are appointed and qualify. Vacancies must be filled in the manner of original appointment for the unexpired term. The board shall meet at least annually and not more than once a month. All meetings must be scheduled at the call of the chairman. All members shall receive mileage, per diem, and subsistence as provided by law for members of boards, committees, and commissions for days on which they transact official business, to be paid from the General Fund of the State. The department's Office of State Fire Marshal shall provide administrative support as required by the board to perform its prescribed functions. The State Fire Marshal is an official consultant and is authorized to attend all meetings.
(C) No action may be taken by the board except upon the affirmative vote of four members."
SECTION 4. Section 40-82-20 of the 1976 Code is amended to read:
"Section 40-82-20. As used in this chapter:
(1) 'Bulk Plant' means a facility where the primary function is to store liquefied petroleum gas prior to further distribution.
(2) 'Containers' means all vessels including, but not limited to, tanks, cylinders, or pressure vessels used for storage of liquefied petroleum gases.
(23) 'Contractor' means a person or company engaging in the installation, servicing, repairing, adjusting, disconnecting or connecting piping to bulk storage tanks, pumps, compressors and equipment for gas systems.
(34) 'Cylinder exchange company' means a business which provides filled that is authorized to engage in filling liquefied petroleum gas cylinders of not more than one hundred pounds or transporting, or filling and transporting, for purchase or exchange such cylinders. A 'cylinder exchange company' is not authorized to connect or disconnect cylinders to liquefied petroleum gas systems or appliances.
(45) 'Dealer' means a person engaging authorized to engage in the installation of liquefied petroleum gas systems or in the manufacture, distribution, sale, storing, or transporting by tank truck, tank trailer, or container of liquefied petroleum gases or engaging in installing, servicing, repairing, adjusting, disconnecting, or connecting appliances to liquefied petroleum gas systems and containers.
(56) 'Installer of appliances and equipment' means a person engaging authorized to engage in the business of installing, servicing, repairing, adjusting, disconnecting, or connecting appliances and equipment to liquefied petroleum gas systems or containers.
(67) 'Liquefied petroleum gas' means material composed predominately of hydrocarbons or mixtures of hydrocarbons, including propane, propylene, butanes (normal butane or isobutane), and butylenes.
(78) 'Reseller' means a person engaging authorized to engage in the resale retail sale of liquefied petroleum gas by filling cylinders of not more than one hundred pounds capacity of liquefied petroleum gas and who owns and operates this business separate and independent of a dealer except that the reseller may purchase liquefied petroleum gas from a dealer as an independent contractor.
(89) 'Systems' means an assembly of equipment consisting of the container and any device which is connected to the container for the utilization of liquefied petroleum gas.
(9) 'Transporter' means a person engaging in the transportation of liquefied petroleum gas for hire only in quantities greater than three thousand five hundred water gallons from pipeline terminals to bulk plants.
(10) 'Utility Gas plant' means a fuel gas distribution facility owned or operated by a public utility or municipal or local government authority that uses liquefied petroleum gas to supplement natural gas supplies when necessary or a facility that has a storage container or containers twelve thousand gallons or greater and is not a licensed dealer.
(11) 'Wholesaler' means a distributor of liquefied petroleum gas, other than a dealer, that sells directly to an end user in tank load quantities of at least nine thousand gallons or more."
SECTION 5. Section 40-82-70 of the 1976 Code is amended to read:
"Section 40-82-70. (A) The board shall:
(1) ensure that the laws of this State governing liquefied petroleum gas are executed faithfully;
(2) institute proceedings for violations of laws relevant to liquefied petroleum gas;
(3) promulgate and enforce regulations setting forth minimum general standards covering the design, construction, location, installation, and operation of equipment for storing, handling, transporting by tank truck or tank trailer, and utilizing liquefied petroleum gases and specifying the odorization and degree of odorization of these gases. The regulations must be reasonably necessary for the protection of the health, welfare, and safety of the public and persons using these materials and must be in substantial conformity with the generally accepted standards of safety concerning liquid petroleum gas. The regulations must contain standards not less than those published by the National Fire Protection Association Pamphlet No. 54, National Fire Protection Association Pamphlet No. 58, with the exception of Section 4-2.2.1, 1992 Edition, and National Fire Protection Association Pamphlet No. 59 1992 Edition. The regulations must be adjusted to reflect revisions by the National Fire Protection Association.
(B) In addition to the powers and duties provided in this chapter, the board has those powers and duties set forth in Section 40-1-70."
SECTION 6. Section 40-82-120 of the 1976 Code is amended to read:
"Section 40-82-120. In addition to the sanctions the board may impose against a person pursuant to this chapter and Section 40-1-120, the board may take disciplinary action against a person if: (A) Upon a determination by the board that grounds for discipline exist, the board is authorized to:
(1) issue a public reprimand;
(2) impose a civil penalty not to exceed two thousand five hundred dollars;
(3) place a licensee on probation or restrict or suspend the license for a definite or indefinite time period and prescribe conditions to be met during this period, including, but not limited to, satisfactory completion of additional education of a supervisory period;
(4) permanently revoke the license.
(B) The board may take disciplinary action against a person for the grounds stated in Chapter 1 or if:
(1) a condition is found as a result of the inspection, examination, or investigation provided in Section 40-82-80 that is hazardous to the public safety;
(2) a condition is found in violation of other laws or regulations applicable to the liquefied petroleum gas industry;
(3) there is a violation of the South Carolina Container Law, as provided for in Regulation 19-304.4 a licensee is found to have worked on equipment, including filling tanks, without permission of the owner of the equipment;
(4) a licensee fails to mark licensee-owned equipment under the control of other persons clearly with a record of ownership and emergency contact information."
SECTION 7. Section 40-82-220 of the 1976 Code is amended to read:
"Section 40-82-220. (A) The board may issue a license to a dealer who presents to the Department of Labor, Licensing and Regulation a completed application giving satisfactory evidence:
(1) that the each site where bulk liquefied gas is stored for distribution has been approved;
(2) of insurance as required by this chapter;
(3) of principals or employees who have passed examinations required under this chapter. No person may be responsible for the safety of more than five identified sites, all of which must be located within fifty miles of the worksite of the qualifying person;
(4) that all fees have been paid.
(B) The board may issue a license to an installer of appliances and equipment who presents to the Department of Labor, Licensing and Regulation a completed application with satisfactory evidence of:
(1) insurance as required by this chapter;
(2) equipment needed for safe installation;
(3) principals or employees who have passed examinations under this chapter and who are responsible for the safety of installations;
(4) payment of all required fees.
(C) The board may issue a license to a reseller who presents a completed application to the Department of Labor, Licensing and Regulation giving satisfactory evidence:
(1) that the site where liquefied gas is stored for distribution has been approved;
(2) of insurance as required by this chapter and is responsible for safety at the facility;
(3) of principals or employees who have passed examinations required under this chapter;
(4) that all fees have been paid.
(D) The board may issue a license to a transporter who presents to the Department of Labor, Licensing and Regulation a completed application giving satisfactory evidence:
(1) of insurance as required by this chapter;
(2) of principals or employees who have passed examinations required under this chapter;
(3) that all fees have been paid.
(E) The board may issue a license to a utility gas plant which that presents to the Department of Labor, Licensing and Regulation a completed application giving satisfactory evidence:
(1) that site has been approved;
(2) of insurance as required by this chapter;
(3) of principals or employees who have passed examinations required under this chapter;
(4) that all fees have been paid.
(FE) The board may issue a license to a cylinder exchange facility who presents a completed application to the Department of Labor, Licensing and Regulation giving satisfactory evidence:
(1) that each site within the state where the liquefied gas cylinders are filled has been approved;
(2) of insurance as required by this chapter;
(2) satisfactory evidence of equipment needed for safe operation of the facility;
(3) of principals or employees who have passed examinations required under this chapter;
(4) that all fees have been paid.
(F) The board may issue a license to a wholesaler who presents a complete application to the Department of Labor, Licensing and Regulation giving satisfactory evidence:
(1) of insurance as required by this chapter;
(2) of principals or employees, or both, who have passed examinations required under this chapter;
(3) that all fees have been paid.
(G) Each license must be renewed biennially and is valid through June 30 thirtieth of the applicable year. A late fee of one hundred dollars may be charged to a licensee who fails to file a renewal application before July 1 in the applicable year. A licensee who fails to renew may be required to comply with the requirements of initial licensure."
SECTION 8. Section 40-82-250 of the 1976 Code is amended to read:
"Section 40-82-250. A transporter of propane, utility gas plant, dealer, reseller, cylinder exchange company, wholesaler, or installer of appliances engaged in any of the activities provided for in Section 40-82-30 shall obtain general liability insurance in the amount of five hundred thousand one million dollars from a company licensed to conduct business in this State as a prerequisite to obtaining a license under this chapter. The general liability insurance must include manufacturer's or contractor's liability and product's liability insurance. The insurance carrier shall certify to the board through the Office of State Fire Marshal by a standard certificate of insurance executed by a licensed insurance agent that the required coverages are in effect and may not be canceled by the insurance carrier without at least thirty days notice to the board through the Office of State Fire Marshal by registered mail."
SECTION 9. Section 40-82-280 of the 1976 Code is amended to read:
"Section 40-82-280. (A) If the State Fire Marshal or his designee finds a condition is found as a result of the an inspection, examination, or investigation provided in Section 40-82-80 that is hazardous to the public safety or a violation of this chapter or regulations promulgated pursuant to this chapter, the board or the Office of the State Fire Marshal or an agent of the State Fire Marshal shall issue an order in writing to remove or correct the condition. If a person fails to comply with the terms of the order, the board State Fire Marshal may impose a fine, suspend the license, or refuse to renew or continue the license issue administrative citations and may assess administrative penalties against any licensee.
(B) Administrative penalties authorized under this section are separate from and in addition to all other remedies, either civil or criminal.
(C) Administrative penalties assessed pursuant to this section may not exceed two thousand five hundred dollars for each violation.
(D) An entity or individual assessed administrative penalties by citation under this section may appeal the citation to the Liquefied Petroleum Gas Board within fifteen days of receipt of the citation. The appeal must be filed in writing. If an appeal is filed, the State Fire Marshal shall schedule a hearing before the board, which shall make a determination in the matter. If no appeal is filed, the citation is deemed a final order and the administrative penalties must be paid within thirty days of receipt of the citation."
SECTION 10. Section 40-82-310 of the 1976 Code is amended to read:
"Section 40-82-310. An owner, manager, or operator of a vehicle or equipment regulated by this chapter within twenty-four hours shall make a report to the board through the office of the State Fire Marshal of any fire or explosion in connection with the equipment or gas system which the person has serviced, installed, or performed other work upon of accidental or incendiary origin of which the person has knowledge, with as complete detail as possible, together with evidence as he has obtained after investigation of the discovery of the fire or explosion. Reports filed pursuant to this section are confidential and for the use of the board only pending investigation completion."
SECTION 11. Sections 40-82-240, 40-82-290, and 40-82-300 of the 1976 Code are repealed.
SECTION 12. Chapter 82, Title 40 of the 1976 Code is renamed "Liquefied Petroleum Gas".
SECTION 13. This act takes effect upon approval by the Governor.
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