Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.

HB 4041 requires propane distribution system retailers in Texas to post financial surety (like a bond or letter of credit) with the Railroad Commission of Texas. The surety amount must equal either $3 multiplied by the retailer’s total propane storage capacity or $50,000, whichever is lower. Retailers who fail to comply face administrative penalties of up to $1,000 per violation per day, with a maximum $10,000 cap for related violations. Penalties are determined considering the retailer’s violation history, the seriousness of the violation, and public safety risks, and the Commission must provide a hearing opportunity before imposing fines. This bill directly affects propane retailers operating in Texas.