House Bill 1090

AN ACT TO AMEND SECTION 75-57-101, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF SMALL LIQUEFIED COMPRESSED GAS DEALERS WHO MAY SERVE ON THE STATE LIQUEFIED COMPRESSED GAS BOARD; TO AMEND SECTION 75-57-109, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO ESTABLISH A SYSTEM OF FEES FOR THOSE ENGAGED IN THE LIQUEFIED COMPRESSED GAS BUSINESS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 75-57-101, Mississippi Code of 1972, is amended as follows:

75-57-101. (1) The State Liquefied Compressed Gas Board is hereby created and is vested with the power to regulate matters pertaining to liquefied compressed gas. All regulations by and actions of the board are subject to the approval of the commissioner. The board shall not exercise administrative and enforcement duties. The Commissioner of Insurance shall retain all administrative and enforcement duties related to liquefied compressed gas. The board is established within the Department of Insurance and shall consist of seven (7) members appointed by the Commissioner of Insurance as follows:

(a) Five (5) members, one (1) from each of the congressional districts, to be selected from a list of at least ten (10) individuals who are in the liquefied compressed gas industry doing business in the State of Mississippi; the list shall be submitted, within ten (10) days of July 1, 1995, by licensed liquefied compressed gas distributors doing business in the state.

(b) Two (2) members from the state at large who have a rational relationship to the liquefied compressed gas industry.

(c) At least three (3) members of the board must be dealers who sell less than * * * five million (5,000,000) gallons of propane per year.

(d) No two (2) members may be selected from the same company.

(e) The members of the board as constituted on January 1, 2004, whose terms have not expired shall continue to serve until the expiration of their respective terms. As the terms of the members expire, the members shall be appointed as follows: one (1) member from each of the four (4) Mississippi congressional districts and three (3) members from the state at large. The appointments shall be made in the same manner and with the same qualifications and restrictions as provided in this subsection (1).

(2) (a) The initial appointments to the board from the congressional districts shall be made as follows: One (1) member of the board shall be appointed for a term ending on June 30, 1996; one (1) for a term ending on June 30, 1997; one (1) for a term ending on June 30, 1998; one (1) for a term ending on June 30, 1999; and one (1) for a term ending June 30, 2000. After the expiration of such initial terms, all subsequent appointments shall be made in the same manner as the original appointments were made for terms of five (5) years.

(b) The three (3) members from the state at large shall serve for terms concurrent with the term of the Commissioner of Insurance.

(c) An appointment to fill a vacancy, other than by expiration of a term of office, shall be made by the Commissioner of Insurance for the balance of the unexpired term.

(3) There shall be a chairman of the board elected by and from the membership of the board.

(4) Board members shall receive per diem compensation according to Section 25-3-69 and be reimbursed for travel expenses as provided in Section 25-3-41(1). The board members shall not be compensated for more than twelve (12) meetings per year held at a site within the state selected by the board. Any member who fails to attend three (3) consecutive called meetings of the board may be removed by the Commissioner of Insurance.

SECTION 2. Section 75-57-109, Mississippi Code of 1972, is amended as follows:

75-57-109. (1) The board may establish by regulation a system of permits and fees for those engaged in the liquefied compressed gas business in the state. If adopted, and approved by the Commissioner of Insurance, no one may engage in the liquefied compressed gas business without first having obtained a permit from the board and paid any applicable fees. No person shall be denied a permit if he or she meets the requirements of state law. Fees shall be paid to the commissioner in such manner as the commissioner may require. All fees received shall be deposited in the State Treasury to the credit of the Mississippi Insurance Department in a special fund designated by the commissioner.

(2) The board may revoke a liquefied compressed gas permit for willful violation of this chapter or the regulations or for failure to comply with the chapter or regulations. The revocation may be made only after written notice to the affected party, an opportunity to respond in writing to the charges and a hearing before the board under the provisions of the Administrative Procedures Act. The revocation shall be subject to the approval of the Commissioner of Insurance.

(3) The board may establish reasonable bonding, insurance limits and personnel training qualifications for permit holders. These requirements are subject to approval of the Commissioner of Insurance.

(4) Designated members of the Mississippi Insurance Department, Division of Liquefied Compressed Gas, who execute a confidentiality agreement with the Department of Revenue, shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer and enforce the programs under the jurisdiction of the Mississippi Insurance Department, Division of Liquefied Compressed Gas. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Insurance Department, Division of Liquefied Compressed Gas, who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Insurance Department, Division of Liquefied Compressed Gas.

SECTION 3. This act shall take effect and be in force from and after July 1, 2016.