South Carolina General Assembly
116th Session, 2005-2006

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Bill 1230


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTIONS 40-82-50, 40-82-60, 40-82-70, 40-82-80, 40-82-90, 40-82-100, 40-82-115, 40-82-120, 40-82-130, 40-82-160, 40-82-210, 40-82-250, 40-82-260, 40-82-280, AND 40-82-290 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE LICENSING AND REGULATION OF LIQUEFIED PETROLEUM GAS, SO AS TO ELIMINATE THE LIQUEFIED PETROLEUM GAS BOARD AND DEVOLVE ITS DUTIES TO THE STATE FIRE MARSHAL; TO AMEND SECTION 40-82-220, RELATING TO THE ISSUANCE OF LICENSES, SO AS TO PROVIDE THAT THE STATE FIRE MARSHAL IS AUTHORIZED TO ISSUE ONLY THOSE LICENSES ALLOWED BY LAW; TO AMEND SECTION 40-82-230, RELATING TO EXAMINATIONS OF APPLICANTS, SO AS TO AUTHORIZE THE DEPARTMENT OF LABOR, LICENSING AND REGULATION TO PREPARE AND ADMINISTER THE EXAMINATION FOR CERTIFICATION; TO AMEND SECTION 40-82-240, RELATING TO DEALER STORAGE CAPACITIES, SO AS TO ELIMINATE THE MINIMUM STORAGE CAPACITY REQUIRED OF DEALERS; AND TO REPEAL SECTIONS 40-82-5 AND 40-82-10, RELATING TO GENERAL PROVISIONS OF THE LIQUEFIED PETROLEUM GAS BOARD.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Sections 40-82-50, 40-82-60, 40-82-70, 40-82-80, 40-82-90, 40-82-100, 40-82-115, 40-82-120, and 40-82-130 of the 1976 Code are amended to read:

"Section 40-82-50.    The Office of State Fire Marshal of the Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, inspectional, clerical, secretarial, and license renewal operations and activities of the board related to the licensing and regulation of the liquefied petroleum gas industry in accordance with Section 40-1-50.

Section 40-82-60.    The board Office of State Fire Marshal may adopt rules governing its proceedings and internal operations and may promulgate regulations related to liquefied petroleum gas to enforce, administer, and implement this chapter.

Section 40-82-70.    (A)    The board Office of State Fire Marshal shall:

(1)    ensure that the laws of this State governing liquefied petroleum gas are executed faithfully;

(2)    conduct investigations on alleged violations of this article and regulations promulgated under this article;

(3)    institute proceedings for violations of laws relevant to liquefied petroleum gas;

(3)(4)    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;

(5)    adopt a code of professional ethics appropriate to the profession or occupation which it licenses or regulates;

(6)    discipline persons licensed under this article in a manner provided for in this article; and

(7)    resolve consumer complaints, where appropriate and possible.

(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 40-82-80.    (A) The Department of Labor, Licensing and Regulation Office of State Fire Marshal shall investigate complaints and violations of this chapter as provided for in Section 40-1-80. In conducting an investigation, the State Fire Marshal may subpoena witnesses, compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation including, but not limited to, the existence, description, nature, custody, condition, and location of books, documents, or other tangible items and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence. Upon failure to obey a subpoena or to answer questions, the State Fire Marshal may apply to an administrative law judge for an order requiring the person to comply.

(B)    The State Fire Marshal or any of his agents may enter during reasonable business hours the premises of a person engaged in the liquefied petroleum gas industry in any of its phases to inspect properties or installations that relate in any way to the safe and proper operation of the business and may make investigations or examinations they consider necessary. When an emergency exists, as declared by the Office of State Fire Marshal, the inspector may enter the premises of a person and take necessary action for public safety including, but not limited to, the evacuation of the area in which the emergency exists.

(C)    The board may compel the attendance of witnesses to testify in relation to a matter within its jurisdiction.

Section 40-82-90.    The results of an investigation must be presented to the board, and any subsequent hearing must be conducted in accordance with Section 40-1-90 If it appears that a violation has occurred or that a licensee has become unfit, the State Fire Marshal, in accordance with the Administrative Procedures Act, may take disciplinary action in accordance with the Administrative Procedures Act as contained in Articles 3 and 5 of Chapter 23 of Title 1.

Section 40-82-100.    In addition to other remedies provided for in this chapter or Chapter 1, the board in accordance with Section 40-1-100 may issue a cease and desist order or may petition an administrative law judge for a temporary restraining order or other equitable relief to enjoin a violation of this chapter.

(A)    When the State Fire Marshal has reason to believe that a person is violating or intends to violate a provision of this chapter or a regulation promulgated under this chapter, in addition to all other remedies, he may file a request for a contested case hearing with the Administrative Law Court seeking an order to require the person to cease and desist from the action. The Office of State Fire Marshal also may apply, in accordance with the rules of the Administrative Law Court, to an administrative law judge for a temporary restraining order if a person:

(1)    is engaged in:

(a)    the manufacture, distribution, sale, storage, or transportation by tank truck, tank trailer, or cylinder of liquefied petroleum gases; or

(b)    the installation, servicing, repairing, adjusting, or connecting of appliances to liquefied petroleum gas systems and containers in this State without being licensed under this article;

(2)    is violating a provision of this chapter; or

(3)    is violating a regulation promulgated under this chapter.

The State Fire Marshal, any employee of the Office of State Fire Marshal, the Department of Labor, Licensing and Regulation, and any employee of the department may not be held liable for damages resulting from a wrongful temporary restraining order.

(B)    The Office of State Fire Marshal may seek from an administrative law judge other equitable relief to enjoin the violation or intended violation of this chapter or a regulation promulgated under this chapter.

Section 40-82-115.    The board Office of State Fire Marshal has jurisdiction over the actions of committed or omitted by licensees and former licensees as provided for in Section 40-1-115 during the entire period of licensure.

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 (A)    The State Fire Marshal may take disciplinary action against a person 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; or

(3)    there is a violation of the South Carolina Container Law, as provided for in Regulation 19-304.4.

(B)    A person subject to disciplinary action may request a contested case hearing before the Administrative Law Court in accordance with Article 5, Chapter 23, Title 1.

(C)    If, after notice of an opportunity for a hearing before the Administrative Law Court has been given to a licensee, the Office of State Fire Marshal determines that one or more of the grounds for discipline exists, the Office of State Fire Marshal may take one or more of the following actions:

(1)    impose a fine not to exceed five hundred dollars unless otherwise specified by statute or regulation of the Office of State Fire Marshal;

(2)    place a licensee on probation or restrict or suspend the individual's license for a definite or indefinite time and prescribe conditions to be met during probation, restriction, or suspension; and

(3)    permanently revoke the license.

(D)    A decision of the State Fire Marshal disciplining a licensee under this section is public information.

(E)    Upon a determination by the State Fire Marshal that discipline is not appropriate, the State Fire Marshal may issue a nondisciplinary letter of caution.

Section 40-82-130.    The board Office of State Fire Marshal may deny licensure to an applicant based on the same grounds for which the board it may take disciplinary action against a licensee."

SECTION    2.    Section 40-82-160 of the 1976 Code is amended to read:

"Section 40-82-160.    A person aggrieved by a final action of the board may seek review of the decision in accordance with Section 40-1-160 a decision of the Office of State Fire Marshal in which the legal rights, duties, or privileges of a person are required by law to be determined after an opportunity for a hearing may request a contested case hearing before the Administrative Law Court in accordance with Article 5, Chapter 23, Title 1."

SECTION    3.    Sections 40-82-210, 40-82-220, 40-82-230, 40-82-240, 40-82-250, and 40-82-260 of the 1976 Code are amended to read:

"Section 40-82-210.    In addition to initiating a criminal proceeding for a violation of this chapter, the board Office of State Fire Marshal may seek civil penalties and injunctive relief in accordance with Section 40-1-210.

Section 40-82-220.    (A)    The board Office of State Fire Marshal 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 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.

(B)    The board Office of State Fire Marshal 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;

(4)    payment of all required fees.

(C)    The board Office of State Fire Marshal 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 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.

(D)    The board Office of State Fire Marshal 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 Office of State Fire Marshal may issue a license to a utility gas plant which presents to the Department of Labor, Licensing and Regulation a completed application giving satisfactory evidence:

(1)    that the 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.

(F)    The board Office of State Fire Marshal 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)    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.

(G)    Each license must be renewed biennially and is valid through June 30 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.

(H)    The power of the Office of State Fire Marshal to issue licenses pursuant to this chapter shall be limited to those licenses described within this section.

Section 40-82-230.    The Department of Labor, Licensing and Regulation shall administer, at the request of the board, examinations approved by the board. The board may also recognize other examinations or training programs as the equivalent (1) prescribe the subjects, character, and manner of licensing examinations; and (2) prepare, administer, and grade the examination.

Section 40-82-240.    (A) A dealer conducting business in the State:,

(1)    must have or have access to facilities with a storage capacity of a minimum of 30,000 water gallons located within close proximity to the area to be served; however, no more than two dealers may share the capacity of one 30,000 gallon tank;

(2)    whose headquarters are outside of the State, must have storage capacity located in the State within close proximity to the area served in the State.

(B)    The board may waive the minimum bulk storage facility requirement of subsection (A).

(C)    If a dealer has access to another dealer's facility, for purposes of subsection (A)(1), the dealer must have a written agreement, signed by both parties, stipulating the terms, conditions, and available capacity. A current agreement must be submitted at the time of each license renewal, and the duration of the agreement must, at a minimum, coincide with the length of the licensing period.

Section 40-82-250.    A transporter of propane, utility gas plant, dealer, reseller, cylinder exchange company, 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 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 40-82-260.    Before a dealer may sell liquefied petroleum gas to a person for resale to the public, the dealer shall ascertain that the person is licensed and certified by the board through the Office of the State Fire Marshal to resell the liquefied petroleum gas. A dealer wilfully violating this section is subject to penalties provided in this chapter."

SECTION    4.    Sections 40-82-280 and 40-82-290 of the 1976 Code are amended to read:

"Section 40-82-280.    If 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, 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 Office of State Fire Marshal may impose a fine, suspend the license, or refuse to renew or continue the license.

Section 40-82-290.    Electrical circuits or electrical appliances including, but not limited to, radios, telephones, or other electrical apparatus may not be grounded to a liquefied petroleum gas system or appliance. A dealer or a dealer's agent finding a violation of this section shall request the owner of the property to remove the ground. If the owner fails to comply with this request, the dealer or the dealer's agent shall report the noncompliance immediately to the board through the Office of the State Fire Marshal."

SECTION    5.    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 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 Office of State Fire Marshal only pending investigation completion."

SECTION    6.    Sections 40-82-5 and 40-82-10 are hereby repealed.

SECTION    7.    This act takes effect upon approval by the Governor.

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