2009 -- H 6287

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LC02828

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2009

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPANE

     Introduced By: Representative E Coderre

     Date Introduced: June 16, 2009

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 39-27 of the General Laws entitled "The Energy and Consumer

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Savings Act of 2005" is hereby amended by adding thereto the following section:

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     39-27-10. Propane gas suppliers. – (a) The sale and supply of propane gas shall be

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subject to license and regulation by the department of business regulation. The department shall

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issue licenses and promulgate rules and regulations to insure the safe, efficient, uninterrupted, and

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cost efficient supply of propane gas to the citizens of Rhode Island, and to otherwise carry out the

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provisions of this section.

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     (b) A commercial supplier and/or provider of propane gas which delivers such propane

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gas to consumers shall not deny customary sales and/or service to those consumers who are

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current with or no more than thirty (30) days past due on their accounts with the supplier and/or

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provider, or to members of the public who wish to purchase propane gas and/or service. The

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failure of a commercial supplier and/or provider to comply with this subsection shall be grounds

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for revocation of this license provided for herein.

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     (c) It furthers the economic well-being and interests of the state to encourage and enable

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persons to purchase propane gas at the lowest competitive prices available. Accordingly, to foster

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market competition, in the event a propane gas tank or other storage receptacle is furnished to a

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consumer by a commercial supplier and/or provider of propane gas, and such tank/receptacle is

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supplied for an open or on-going period to the consumer, the consumer shall have the option of

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purchasing said tank at its cost together with the cost of installation on the date of its installation

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in the manner herein provided. The supplier/provider may recoup the expense of such costs over

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the three (3) year period in its periodic billings to the consumer; provided, that such costs shall be

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prorated over the three (3) year period.

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     (d) Tanks that have been furnished to existing customers may, at the option of the

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customer be purchased by the customer in the same manner. Each commercial supplier and/or

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provider of propane gas shall be responsible for maintaining said tanks regardless of ownership,

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in a safe operating condition at all times, and said supplier and/or provider shall notify each

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customer of this option.

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     (e) Any person and/or entity who sells propane gas without a license as provided for by

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this section or who violates this section in any way shall have committed a misdemeanor and

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upon conviction thereof may be punished by imprisonment for a term not exceeding one year, or

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by a fine of not more than one thousand dollars ($1,000), or both.

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     (f) Any violation of the provisions of this section shall be grounds for the revocation of

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the license provided for herein. In promulgating the appropriate rules and regulations, the

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department shall establish a hearing and appeal process governing license revocation proceedings.

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     SECTION 2. This act shall take effect upon passage.

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LC02828

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPANE

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     This act would provide for regulation of the sales and service of propane gas and would

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require licensing of all persons and entities that sell propane gas.

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     This act would take effect upon passage.

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LC02828

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