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A01975 Summary:

COSPNSRGalef, Lupardo, Otis, Schimminger, Crouch, Skoufis, McDonald
MLTSPNSRMcDonough, Rivera, Skartados, Thiele
Add Art 14 14-101 - 14-109, Energy L; add 391-aa, Gen Bus L
Implements the New York propane education and safety act; authorizes the creation of certain propane education programs; requires the creation of a New York propane education and safety council; enumerates the duties and purposes of the New York propane education and safety council.
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A01975 Actions:

01/17/2017referred to energy
01/03/2018referred to energy
02/02/2018enacting clause stricken
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A01975 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Paulin (MS)
  TITLE OF BILL: An act to amend the energy law, in relation to imple- menting the New York propane education and safety act; and to amend the general business law, in relation to consumer protections for liquefied petroleum gas systems   PURPOSE: To establish the New York Propane Education and Safety Act to promote education, training, safety, and consumer protections relating to propane and propane systems; and to require certain training for indi- viduals involved in the installation, inspection or service of propane systems.   SUMMARY OF PROVISIONS: Section 1 of the bill adds a new Article 14 to the Energy Law to estab- lish the New York Propane Education and Safety Act. Section 2 of the bill adds a new section to the General Business Law relating to training for individuals involved in the installation, inspection or service of liquefied petroleum gas systems. It also adds a disclosure requirement pertaining to safety training. Section 3 of the bill is the effective date.   JUSTIFICATION: The New York State Propane Education and Safety Council will provide safety training and education to propane industry workers and emergency responders, and will be funded through a fee charged to propane retail- ers. The Council will be similar to the federal Propane Education and Research Council (PERC), which was created in 1996 and has proven successful. While New York propane dealers contribute a significant portion of money to fund the federal PERC, they only receive about 20% of those funds back to use for training and other programming. Creating the New York State Propane Education and Safety Council will allow the New York propane dealers to supplement the federal efforts, and provide more safety education here in New York. The legislation will also estab- lish new safety measures such as training and disclosure requirements for workers involved in the installation, inspection or service of propane systems, which will improve safety and awareness across the state.   LEGISLATIVE HISTORY: A.54, 2015 and 2016 referred to energy. A.9212, 2014 referred to energy. Same as S.4542, 2013 passed Senate and 2014 committed to rules.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: Immediately.
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A01975 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 17, 2017
        Introduced  by  M.  of  A.  PAULIN,  GALEF,  LUPARDO, OTIS, SCHIMMINGER,
          CROUCH, SKOUFIS, McDONALD -- Multi-Sponsored by -- M. of A. LUPINACCI,
          McDONOUGH, RIVERA, SKARTADOS, THIELE -- read once and referred to  the
          Committee on Energy
        AN ACT to amend the energy law, in relation to implementing the New York
          propane  education  and  safety act; and to amend the general business
          law, in relation to consumer protections for liquefied  petroleum  gas
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The energy law is amended by adding a  new  article  14  to
     2  read as follows:
     3                                 ARTICLE 14
     5  Section 14-101. Short title.
     6          14-102. Definitions.
     7          14-103. Referendum; creation and termination of a program.
     8          14-104. New York propane education and safety council.
     9          14-105. Assessments.
    10          14-106. Compliance.
    11          14-107. Lobbying restrictions.
    12          14-108. Pricing.
    13          14-109. Relation to other programs.
    14    § 14-101. Short title. This article shall be known and may be cited as
    15  the New York propane education and safety act.
    16    §  14-102.  Definitions.  For  purposes  of  this  article, unless the
    17  context otherwise requires:
    18    1. "Council" means a New York propane  education  and  safety  council
    19  created pursuant to section 14-104 of this article;
    20    2. "President" means the chairman of NYSERDA or his or her designee;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1975                             2
     1    3.  "Education"  means  any  action  to  provide information regarding
     2  propane, propane equipment,  mechanical  and  technical  practices,  and
     3  propane uses to consumers, and members of the propane industry;
     4    4.  "Industry"  means those persons involved in the production, trans-
     5  portation, and sale of propane, and the manufacture and distribution  of
     6  propane utilization equipment;
     7    5. "Industry trade association" means an organization exempt from tax,
     8  under  Section  501(c)(3)  or  501(c)(6) of the Internal Revenue Code of
     9  1986, representing the propane industry;
    10    6. "NYSERDA" means the New York state energy and research  development
    11  authority;
    12    7. "Odorized propane" means propane which has an odorant added to it;
    13    8.  "Producer"  means the owner of propane at the time it is recovered
    14  at a gas processing plant or refinery; irrespective of the  state  where
    15  production occurs;
    16    9.  "Propane" means a hydrocarbon whose chemical composition is predo-
    17  minately C3H8, whether recovered from natural  gas  or  crude  oil,  and
    18  includes liquified petroleum gases and mixtures thereof;
    19    10.  "Public member" means a designee of the president of the New York
    20  state energy research and development authority;
    21    11. "Qualified industry organization" means the New York  propane  gas
    22  association,  the  national propane gas association, a successor associ-
    23  ation of these associations, or any other propane industry organization;
    24    12. "Research" means any type of study, investigation or other  activ-
    25  ities designed to advance the image, desirability, usage, marketability,
    26  efficiency, and safety of propane and to further the development of such
    27  information;
    28    13.  "Retail marketer" means a person engaged primarily in the sale of
    29  odorized propane to the ultimate consumer or to retail  propane  dispen-
    30  sers; and
    31    14.  "Retail  propane  dispenser"  means  a  person who sells odorized
    32  propane to the ultimate consumer but is not  engaged  primarily  in  the
    33  business of such sales.
    34    § 14-103. Referendum; creation and termination of a program. 1.  Qual-
    35  ified  industry  organizations  shall  conduct  at  their own expense, a
    36  referendum among producers and retail marketers for the  creation  of  a
    37  New  York  propane  education and safety council. The council, if estab-
    38  lished, shall reimburse the qualified  industry  organizations  for  the
    39  cost  of  the  referendum  accounting  and documentation. The referendum
    40  shall be conducted by an independent auditing  firm  agreed  to  by  the
    41  qualified  industry organizations. The results, as certified by an inde-
    42  pendent auditing firm, shall be submitted to the president within thirty
    43  days of certification. Voting rights in the referendum shall be based on
    44  the volume of propane produced or odorized propane sold in the  previous
    45  calendar year. Upon approval of those persons representing two-thirds of
    46  the  total  value of propane voted in the retail marketer class and two-
    47  thirds of all propane voted in the producer class, the council shall  be
    48  established,  and  shall be authorized to levy an assessment on odorized
    49  propane in accordance with section 14-105 of this article.  All  persons
    50  voting  in the referendum shall certify to the independent auditing firm
    51  the volume of propane represented by their vote.
    52    2. On the council's own initiative, or on petition to the  council  by
    53  producers  and  retail marketers representing thirty-five percent of the
    54  volume of propane in each class, the council shall, at its own  expense,
    55  hold  a  referendum  to  be  conducted  by  an independent auditing firm
    56  selected by the council, to determine whether the industry favors termi-

        A. 1975                             3
     1  nation or suspension of the council. Termination or suspension shall not
     2  take effect unless it is approved  by  persons  representing  more  than
     3  one-half  of the total volume of odorized propane in the retail marketer
     4  class and more than one-half the total volume of propane in the producer
     5  class.
     6    § 14-104. New York propane education and safety council. 1. The quali-
     7  fied  industry  organizations  shall select all retail marketers members
     8  and producer members of the council. The president shall  designate  one
     9  public  member.  Vacancies  in  the  unfinished terms of council members
    10  shall be filled in the same manner as were the original appointments.
    11    2. In selecting members of the council, the qualified industry  organ-
    12  izations  shall give due regard to selecting a council that is represen-
    13  tative of the industry, including representation of:
    14    (a) gas processors and oil refiners among producers;
    15    (b) interstate and intrastate operators among retail marketers;
    16    (c) large and small companies among producers  and  retail  marketers,
    17  including agricultural cooperatives; and
    18    (d) diverse geographic regions of the state.
    19    3.  The  council  shall  consist  of no less than five and up to seven
    20  members, with no less than four  and  up  to  six  members  representing
    21  retail  marketers  and  producers, and one public member. Other than the
    22  public member, council members shall be full-time employees or owners of
    23  businesses in the industry or representatives  of  agricultural  cooper-
    24  atives.  No employee of a qualified industry organization shall serve as
    25  a member of the council, and no member of the council may serve  concur-
    26  rently  as  an officer of the board of directors of a qualified industry
    27  organization or other trade association. Only one person at a time  from
    28  any company or its affiliate may serve on the council. The president may
    29  serve as an ex-officio non-voting member of the council.
    30    4.  Council  members shall receive no compensation for their services,
    31  nor shall council members be reimbursed for expenses relating  to  their
    32  service, except that public members, upon request, may be reimbursed for
    33  reasonable  expenses  directly related to their participation in council
    34  meetings.
    35    5. Council members shall serve terms of three years and may not  serve
    36  more  than  two  full consecutive terms. Members filling unexpired terms
    37  may serve not more than a  total  of  seven  consecutive  years.  Former
    38  members  of  the council may be returned to the council if they have not
    39  been members for a period of two  years.  Initial  appointments  to  the
    40  council  shall  be  for  terms of one, two, and three years staggered to
    41  provide for the selection of four members each year. The  council  shall
    42  notify  the  president  of the name, address, and propane-related affil-
    43  iation, if any, of  a  council  member  within  thirty  days  after  the
    44  appointment of the member to the council.
    45    6.  The  council  shall  develop  programs and projects and enter into
    46  contracts  or  agreements  for  implementing  this  article,   including
    47  programs to enhance consumer and employee safety and training, which may
    48  include  the training required by section three hundred ninety-one-aa of
    49  the general business law, to provide for  research  and  development  of
    50  clean and efficient propane utilization equipment, to inform and educate
    51  the  public  about  safety  and  other issues associated with the use of
    52  propane, and to provide for the payment of the costs thereof with  funds
    53  collected  pursuant  to  this  article. The council shall coordinate its
    54  activities with industry trade  associations,  Hudson  Valley  community
    55  college,  other  community colleges and others as appropriate to provide

        A. 1975                             4
     1  efficient delivery of services and to avoid unnecessary  duplication  of
     2  activities.
     3    7.  Issues related to research and development, safety, education, and
     4  training shall be given priority by the council in  the  development  of
     5  its programs and projects.
     6    8.  The  council shall select from among its members a chairperson and
     7  other officers as necessary, may establish committees and  subcommittees
     8  of  the  council,  and  shall  adopt rules and bylaws for the conduct of
     9  business and the implementation  of  this  article.  The  council  shall
    10  establish procedures for the solicitation of industry comment and recom-
    11  mendations on any significant plans, programs, and projects to be funded
    12  by the council. The council may establish advisory committees of persons
    13  other than council members.
    14    9. At the beginning of each fiscal period, the council shall prepare a
    15  budget  plan  for the next fiscal period, including the probable cost of
    16  all programs, projects, and contracts and a recommended rate of  assess-
    17  ment  sufficient  to  cover  such  costs.  The  council shall submit the
    18  proposed budget to the president for review and comment.  The  president
    19  may recommend programs and activities considered appropriate.
    20    10.  The  council  shall keep minutes, books, and records that clearly
    21  reflect all of the acts and transactions of the council and make  public
    22  such  information. The books of the council shall be audited by a certi-
    23  fied public accountant at least once each fiscal year and at such  other
    24  times  as  the  council may designate. The expense of the audit shall be
    25  the responsibility of  the  council.  Copies  of  such  audit  shall  be
    26  provided to all members of the council, all qualified industry organiza-
    27  tions, and to other members of the industry upon request.
    28    §  14-105.  Assessments. 1. The council shall set the assessment at no
    29  greater than one-tenth of one cent per gallon of odorized propane.
    30    2. The owner of odorized propane at the time of  odorization,  or  the
    31  time  of  import  of odorized propane shall make the assessment based on
    32  the volume of odorized propane sold. The assessment, when made, shall be
    33  listed as a separate line item on the bill  labeled  "New  York  Propane
    34  Education  and Safety Assessment". Assessments collected from purchasers
    35  of propane are payable to the council on a monthly basis by the  twenty-
    36  fifth of the month following the month of collection.
    37    If  payment  is  not  made  to  the council by the due date under this
    38  subdivision, an interest penalty of one percent  of  any  amount  unpaid
    39  shall be added for each month or fraction of a month after the due date,
    40  until final payment is made.
    41    3.  The  council  may establish an alternative means of collecting the
    42  assessment if another means is found to be more efficient and effective.
    43  The council may establish a late payment charge and rate of interest  to
    44  be  imposed  on  any person who fails to remit or pay to the council any
    45  amount due under this article.
    46    4. Pending disbursement pursuant to a program, plan, or  project,  the
    47  council  shall invest funds collected through assessments, and any other
    48  funds received by the council, only in obligations of the United  States
    49  or  any agency thereof, in general obligations of any state or political
    50  subdivision thereof, in any interest-bearing account or  certificate  of
    51  deposit  of a bank that is a member of the Federal Reserve System, or in
    52  obligations fully guaranteed as to principal and interest by the  United
    53  States.
    54    §  14-106.  Compliance. The supreme court is vested with the jurisdic-
    55  tion specifically to enforce the provisions of this article, and prevent
    56  or restrain any person from violating any such provision.  A  successful

        A. 1975                             5

     1  action for compliance under this section may also require payment by the
     2  defendant of the costs incurred by the council in bringing the action.
     3    §  14-107.  Lobbying  restrictions.  No funds collected by the council
     4  shall be used in any manner for influencing  legislation  or  elections,
     5  except  that  the council may recommend to the president changes in this
     6  article or other statutes that would further the purpose of  this  arti-
     7  cle.
     8    §  14-108. Pricing. In all cases, the price of propane shall be deter-
     9  mined by market forces. Consistent with the antitrust laws, the  council
    10  may take no action, nor may any provision of this article be interpreted
    11  as  establishing an agreement to pass along to consumers the cost of the
    12  assessment provided for in section 14-105 of this article.
    13    § 14-109. Relation to other programs. Nothing in this article  may  be
    14  construed  to preempt or supersede any other program relating to propane
    15  education and safety organized and operated under the laws of the  state
    16  of New York.
    17    §  2. The general business law is amended by adding a new section 391-
    18  aa to read as follows:
    19    § 391-aa. Liquefied petroleum gas systems; consumer protections.    1.
    20  On  or  after  July first, two thousand eighteen, no liquefied petroleum
    21  gas marketer or any other  person  shall  install,  inspect  or  service
    22  liquefied  petroleum  gas  systems  in  New  York state or hold himself,
    23  herself or itself out to be qualified or adequately trained to  install,
    24  inspect  or  service  liquefied  petroleum gas systems in New York state
    25  without first  successfully  completing  the  following  portions  of  a
    26  propane  safety  and training program known as the Propane Education and
    27  Research Council's Certified Employee Training Program, as amended  from
    28  time to time:
    29    a. Basic Principles and Practices of Propane (also known as Book 1.0);
    30    b. Designing and Installing Exterior Vapor Distributions Systems (also
    31  known as Book 4.1);
    32    c.  Placing  Vapor  Distribution Systems and Appliances into Operation
    33  (also known as Book 4.2);
    34    d. Installing Appliances and Interior Vapor Distribution Systems (also
    35  known as Book 4.3); and
    36    e. Designing and Installing Dispenser Transfer Systems (also known  as
    37  Book 5.1);
    38  Such  training  shall be provided by a qualified propane industry organ-
    39  ization.
    40    2.  Within thirty days of the effective date of  this  section,  every
    41  liquefied  petroleum  gas marketer or any other person hired to install,
    42  inspect, or service a liquefied petroleum gas system shall post on  his,
    43  her,  or  its website, if such a website is maintained, an indication of
    44  whether the training required by this section has been completed by  the
    45  individuals  that will be performing such work.  Prior to commencing the
    46  installation, inspection or service of a liquefied petroleum gas system,
    47  a liquefied petroleum gas marketer or any other person hired to  perform
    48  such  work  shall  provide  the  customer  or prospective customer, upon
    49  request, a written notice that the individuals that  will  perform  such
    50  work have successfully completed the training required by this section.
    51    3.  In  the event that a liquefied petroleum gas marketer or any other
    52  person hired to install, inspect or service a  liquefied  petroleum  gas
    53  system  performs  such  work without having first successfully completed
    54  the training required by this  section,  such  liquefied  petroleum  gas
    55  marketer  or  such other person shall be civilly liable for any property

        A. 1975                             6

     1  damage, injury or death  caused  by  such  installation,  inspection  or
     2  service.
     3    4.  It is hereby declared to be a deceptive trade act and practice and
     4  unlawful for any liquefied petroleum gas marketer or any other person to
     5  hold himself, herself or  itself  out  to  be  qualified  or  adequately
     6  trained  to  install, inspect or service liquefied petroleum gas systems
     7  in New York state without first  successfully  completing  the  training
     8  required by this section.
     9    5.  Nothing  in  this section shall be construed to alter or supersede
    10  any requirements pertaining to liquefied petroleum gases  set  forth  in
    11  the Fire Code of New York State or the Fuel Gas Code of New York State.
    12    6. For the purposes of this section the following terms shall have the
    13  following meanings:
    14    a.  "Person" shall mean any natural person, sole proprietorship, part-
    15  nership, corporation, limited liability company, trust, incorporated  or
    16  unincorporated association, or any other legal entity.
    17    b.  "Liquefied  petroleum  gas"  shall mean liquefied petroleum gas as
    18  such term is defined in section one hundred ninety-two-e of the agricul-
    19  ture and markets law.
    20    c. "Liquefied petroleum gas system" shall mean any system,  equipment,
    21  or  component,  individually  or  collectively,  that utilizes liquefied
    22  petroleum gas including but not limited to a storage container,  storage
    23  cylinder,  end point or points of combustion, appliances and all attach-
    24  ments utilizing or transporting liquefied petroleum gas.
    25    d. "Liquefied petroleum gas marketer" shall mean any  natural  person,
    26  sole  proprietorship, partnership, corporation, limited liability compa-
    27  ny, trust, incorporated or  unincorporated  association,  or  any  other
    28  legal  entity engaged directly in the retail sale or retail transport of
    29  liquefied petroleum gas.
    30    e. "Qualified propane industry organization" shall mean the  New  York
    31  propane gas association, the national propane gas association, a succes-
    32  sor  organization  of  these associations, or any other propane industry
    33  organization authorized to  do  business  in  New  York  state  that  is
    34  designed  primarily  to  provide  information regarding propane, propane
    35  equipment, mechanical and  technical  practices,  and  propane  uses  to
    36  consumers and members of the propane industry.
    37    § 3. This act shall take effect immediately.
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