STATE OF WISCONSIN
Department of Safety and Professional Services
IN THE MATTER OF RULEMAKING
PROCEEDINGS BEFORE THE
DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
PROPOSED ORDER OF THE
DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
ADOPTING RULES
(CLEARINGHOUSE RULE )
PROPOSED ORDER
An order of the department to repeal SPS 305.73 (3) (a) (Note) and amend SPS 305.73 (3) (a) and
(4) (a) and (Note), (b) and (Note), and (c) (Note 1), relating to liquefied gas suppliers.
Analysis prepared by the Department of Safety and Professional Services.
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ANALYSIS
Statutes interpreted:
Statutory authority:
Explanation of agency authority:
Section
101.02 (1)
,
Stats.,
provides “[t]he department shall adopt reasonable and proper rules and regulations relative to the exercise of its powers and authorities and proper rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings.
Section
101.16 (3g) (a)
, Stats., as amended effective October 1, 2016, by
2015 Wisconsin Act 327
provides “[n]o retailer 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 retailer upon receiving the fee established under s. 101.19 (1g) (L) or (1m) and upon the retailer's obtaining commercial general liability insurance as required under sub. (3r) (c). The term of the license shall be set by the department, not to exceed 2 years.”
Related statute
s
or rule
s
:
None.
Plain language analysis:
The proposed rule
s
reflect the provisions of
2015 Wisconsin Act 327
, which changes the financial responsibility requirements for retailers of liquefied petroleum gas.
Current rules authorize a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license to have either 1) a surety bond, 2) an irrevocable letter of credit, or 3) commercial general liability insurance as the proof of financial responsibility required under s.
101.16
, Stats.
The proposed rule
amend
s
s.
SPS 305.73
to reflect the provisions of
2015 Wisconsin Act 327
, which, effective October 1, 2016, eliminates the first 2 options listed above. Under the Act, a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license is required to have commercial general liability insurance.
Summary of, and comparison with, existing or proposed federal
statutes and
regulation
s
:
None.
Comparison with rules in adjacent states:
An Internet-based search
found
the states of Illinois, Iowa, Michigan
,
and Minnesot
a do not
have rules relating to
the licensing of
retail
liquefied gas suppliers.
Summary of factual data and analytical methodologies:
The proposed rule
s
w
ere
developed by reviewing the provisions
of
2015 Wisconsin Act 327
in conjunc
tion with the current rules relating to liquefied gas suppliers under s
.
SPS 305.73
.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The proposed rules were posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals. No comments were received.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis document is attached.
Effect on small business
:
These
proposed
rules do not have a
n
economic impact on small businesses, as defined in s.
227.114 (1)
, Stats. The Department’s Regulatory Review Coordinator may be contacted by email at
Jeffrey.Weigand@wisconsin.gov
, or by calling (608) 267-2435.
Agency contact person
:
Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151,
P.O. Box 8366, Madison, Wisconsin 53708; telephone 608
-261-4472; email at
DSPSAdminRules
@wisconsin.gov
.
Place where comments are to be submitted and deadline for submission
:
Comments may be submitted to Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8935, or by email to
DSPSAdminRules@wisconsin.gov
. Comments must be received at or before the
public hearing to be held at 8:00 a.m. on January
3
1, 2017, to be included in the record of rule-making proceedings.
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TEXT OF RULE
Section
1
.
SPS
305.73 (3
)
(a) is amended
to read:
SPS 305.73
(3
)
(a)
A person applying for either a liquefied gas supplier or a liquefied gas supplier — restricted license shall
,
provide proof of financial responsibility
as required under s. 101.16 (3r)
(c)
, Stats.
, obtain
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.
Section
2
.
SPS 305.73 (3) (a) (Note) is repealed.
Section
3
.
SPS 305.73 (4) (a) and (Note)
, (b) and (Note), and (c) (Note 1)
are amended to read:
SPS 305.73
(
4
)
(a)
A person who holds either a liquefied gas supplier or a liquefied gas supplier — restricted license shall maintain
proof of financial responsibility
commercial general liability insurance
in accordance with s. 101.16 (3r) (a) or (b), Stats.
(
Note)
Section
101.16 (3r) (a)
and
(b)
,
Stats.,
reads as follows:
(a)
Except as provided in par. (b), a
retail supplier (a licensed liquefied gas supplier or a liquefied gas supplier – restricted)
retailer
shall maintain
proof of financial responsibility
commercial general liability insurance
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.
(b)
A
retail supplier (a licensed liquefied gas supplier or a liquefied gas supplier – restricted)
retailer
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
commercial general liability insurance
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.
(b
)
Pursuant to s. 101.16 (3r) (g), Stats., a person who holds either a liquefied gas supplier or a liquefied gas supplier — restricted license shall notify the department at least 60 days before cancelling or failing to renew
a surety bond, letter of credit or
commercial
general liability insurance
as proof of financial responsibility
.
(
Note)
Section 101.16 (3r) (f), Stats., requires a 3rd party that issues
a surety bond, letter of credit, or
commercial
general liability insurance to a
retail supplier
retailer
for
purposed
purposes
of this subsection shall provide written notice to the
retail supplier
retailer
and to the department at least 60 days before canceling, revoking, suspending, or failing to renew the
bond, letter or
insurance.
(c) (Note 1
)
Section
101.16 (4) (c), Stats., reads: Each
retail supplier
retailer
filling a container that is part of a propane gas system shall provide written notice to each
custom
customer
subject to par. (b)
of
the customer's duty under par. (b)
before
the
retail supplier's
retailer’s
first delivery of propane gas to that customer and shall provide subsequent notices on an annual basis. The notice shall include all of the following information concerning the duty to notify under par. (b):
1. The name, address, and telephone number of the
retail supplier
retailer
.
2. The purpose of giving the notification to the
retail supplier
retailer
.
3. A description of the type of propane gas system that is subject to the notification requirement.
4. A description of the types of activities that constitute a replacement, modification, repair, or servicing of a propane system.
5. A copy of the provisions under s. 101.16 (4) (b).
Section 4
.
Effective date
.
The rules adopted in this order shall take effect on the first day of the month following publication in the Wisconsin administrative register, pursuant to s.
227.22 (2) (intro.)
, Stats.
(END OF TEXT OF RULE)
