Senate Bill 2686

AN ACT TO AMEND SECTION 75-57-49, MISSISSIPPI CODE OF 1972, TO REQUIRE LIQUEFIED COMPRESSED GAS PERMITTEES TO OBTAIN ANNUAL RENEWAL PERMITS; TO REQUIRE THAT PERSONS WHO ENGAGE IN FILLING CYLINDERS AND MOTOR FUEL TANKS WITH LIQUEFIED COMPRESSED GAS SHALL CARRY CERTAIN AUTOMOBILE PUBLIC LIABILITY INSURANCE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 19. Section 75-57-49, Mississippi Code of 1972, is amended as follows:

75-57-49. Before any person shall be granted a permit to, or shall engage in or continue in the business of the distributing, either wholesale or retail, installing, altering, extending, changing or repairing of any liquefied compressed gas system, appliance or container, or in the business of distributing and selling liquefied compressed gas, either at wholesale or retail, whether from trucks or other vessels, in cylinders or in any other manner, such person shall satisfy the State Liquefied Compressed Gas Board that he or she is financially responsible; and this provision as to financial responsibility shall be met by such person by filing with the State Liquefied Compressed Gas Board evidence that he or she has in force such of the hereinafter listed insurance policies on standard contract forms and written by an insurance company, or companies, qualified to do business in the State of Mississippi, as the State Liquefied Compressed Gas Board shall require, based upon those activities listed above in which such person is engaged, to wit:

ANY PERSON THAT ENGAGES IN FILLING CYLINDERS AND MOTOR

FUEL TANKS WITH LIQUEFIED COMPRESSED GAS ON THEIR PREMISES

OR ANY PERSON WHO IS IN THE BUSINESS OF INSTALLING LC GAS

CARBURETION OR APPLIANCES:

Limits of Liability

Each

Occasion Aggregate

Manufacturers and Contractors

Public Liability $100,000 $300,000

Products Liability $100,000 $300,000

Workers' Compensation and

Employers' Liability

Insurance State Statute

Automobile Public Liability State Statute

ANY PERSON THAT ENGAGES IN ANY PHASE OF THE LIQUEFIED

COMPRESSED GAS BUSINESS OTHER THAN CYLINDER FILLING LOCATIONS:

Limits of Liability

Bodily Injury Property

Each Each Damage Each

Person Accident Accident

Automobile Public Liability $500,000 $1,000,000 $1,000,000

Each

Occasion Aggregate

Manufacturers and Contractors

Public Liability $1,000,000 $1,000,000

Products Liability $1,000,000 $1,000,000

Workers' Compensation and

Employers' Liability

Insurance State Statute

The State Liquefied Compressed Gas Board shall not require insurance coverage as specified above unless the hazard of liquefied compressed gases is involved.

No policy issued under the provisions of this chapter may be cancelled before thirty (30) days from the date of receipt by the Commissioner of Insurance of written notice of intention to cancel such policy.

It is expressly provided, however, that in lieu of filing with the State Liquefied Compressed Gas Board evidence that such insurance, as outlined above, is in force, any such person may file with the State Liquefied Compressed Gas Board a good and sufficient surety bond executed by a surety company licensed to do business in this state in the amount of One Million Dollars ($1,000,000.00), which said bond shall be payable to the State of Mississippi and shall be conditioned to guarantee the payment of all damages which proximately result from any act of negligence on the part of such person, or their agents or employees, while engaged in any of the activities herein specified. In lieu of such surety bond, any such person may execute and file a good and sufficient personal bond in the amount and conditioned as specified above, which said personal bond shall be secured by bonds or other obligations of the State of Mississippi or the United States government, of equal value. Beginning July 1, 2003, every person, including current permittees, shall apply for and obtain a permit from the board. The original permit fee and all annual renewals thereof shall be due as set forth herein. The fee shall be paid to the board in such a manner as the board may require. All funds received by the board shall be deposited in a special fund account in the State Treasury to the credit of the Department of Insurance. The original permit fee and all annual renewals thereof shall be Fifty Dollars ($50.00), except for filling station dealers which shall be Twenty-Five Dollars ($25.00).

Beginning July 1, 2003, every permit issued under this chapter shall be issued annually and shall expire on June 30 following the date upon which it was issued. Permit fees shall not be prorated for the remainder of the year in which the application was made but shall be paid for the entire year regardless of the date of the application. The board shall on or before April 30 of each year, forward a "notice of renewal," by regular United States mail, to each permittee at his or its last known mailing address.

Upon compliance with the provisions of this section, where such compliance is required, and upon compliance with all other provisions of this chapter, the State Liquefied Compressed Gas Board shall issue to such dealer a permit to engage in such business, but not before. The failure of the permittee to obtain a renewal permit on or before June 30 of the ensuing permit period shall act as an automatic revocation of the permit. During the period of revocation, any practice by the permittee under the color of such permit shall be deemed a violation of this chapter.

SECTION 2. This act shall take effect and be in force from and after July 1, 2003.