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  By: Rodriguez of Travis H.B. No. 2470
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to liability insurance for ammonium nitrate operations;
  creating a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 63.152(b), Agriculture Code, is amended
  to read as follows:
         (b)  An application for a registration submitted by an
  applicant who owns an ammonium nitrate facility must be:
               (1)  submitted on a form prescribed by the service that
  includes:
                     (A)  the name, address, and telephone number of
  each ammonium nitrate facility owned by the applicant; [and]
                     (B)  the name of the person designated by the
  applicant as the point of contact for each facility owned by the
  applicant; and
                     (C)  proof of insurance required by Section
  63.1525; and
               (2)  accompanied by a fee in an amount sufficient to
  cover the service's costs to administer this subchapter.
         SECTION 2.  Subchapter I, Chapter 63, Agriculture Code, is
  amended by adding Section 63.1525 to read as follows:
         Sec. 63.1525.  PUBLIC LIABILITY INSURANCE REQUIRED. (a) A
  person may not produce, store, transfer, chemically blend, offer
  for sale, or sell ammonium nitrate or ammonium nitrate material
  unless the person files with the service a public liability
  insurance policy issued by an insurance company authorized to
  conduct business in this state and considered acceptable by the
  Texas Department of Insurance.
         (b)  The liability insurance policy required by Subsection
  (a) must afford bodily injury and property damage protection in an
  amount determined by the Texas Department of Insurance to
  compensate any person damaged as a result of ammonium nitrate
  operations.
         (c)  A person shall maintain the liability insurance policy
  required by this section in effect during:
               (1)  the term of a certificate of registration issued
  to the person under this subchapter; and
               (2)  any period during which the person is engaged in an
  activity described by Subsection (a).
         (d)  The commissioner of insurance shall coordinate with the
  state fire marshal, the Department of State Health Services, the
  Office of the Texas State Chemist, and other appropriate state
  agencies and officials in studying the risk exposure for activities
  related to ammonium nitrate and ammonium nitrate material and
  assessing the appropriate liability insurance requirements for a
  policy required by Subsection (a) based on risk exposure. In
  assessing risk exposure, the commissioner and other agencies and
  officials shall consider population density and proximity of the
  ammonium nitrate operations to individuals, homes, other
  buildings, livestock, and other individuals, places, or creatures
  that may suffer damage from ammonium nitrate operations.
         SECTION 3.  Section 63.154(a), Agriculture Code, is amended
  to read as follows:
         (a)  Before completing a sale of ammonium nitrate or ammonium
  nitrate material, a person that engages in those sales shall:
               (1)  require the person making the purchase to:
                     (A)  display a driver's license or other form of
  identification containing the person's photograph;
                     (B)  provide the other personal information
  required by Subdivision (2); [and]
                     (C)  provide proof of insurance required by
  Section 63.1525; and
                     (D)  sign for the purchase; and
               (2)  make a record of the sale, including:
                     (A)  the name of the person making the purchase;
                     (B)  the date of the purchase;
                     (C)  the purchaser's address, date of birth, and
  phone number;
                     (D)  the form of identification the purchaser
  presented;
                     (E)  whether the purchase is being made on behalf
  of another person; and
                     (F)  the amount and brand name of the ammonium
  nitrate or ammonium nitrate material purchased.
         SECTION 4.  Section 63.157, Agriculture Code, is amended by
  adding Subsection (c-1) and amending Subsection (d) to read as
  follows:
         (c-1)  A person commits an offense if the person produces,
  stores, transfers, chemically blends, offers for sale, or sells
  ammonium nitrate or ammonium nitrate material without maintaining
  liability insurance as provided by this subchapter.
         (d)  An offense under Subsection (a), [or] (c), or (c-1) is a
  Class A misdemeanor.
         SECTION 5.  Subchapter I, Chapter 63, Agriculture Code, as
  amended by this Act, applies only to a person who produces, stores,
  transfers, chemically blends, offers for sale, or sells ammonium
  nitrate or ammonium nitrate material on or after March 1, 2016. A
  person who produces, stores, transfers, chemically blends, offers
  for sale, or sells ammonium nitrate or ammonium nitrate material
  before March 1, 2016, is governed by the law in effect immediately
  before the effective date of this Act, and that law is continued in
  effect for that purpose.
         SECTION 6.  This Act takes effect September 1, 2015.