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HB 4041

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

89th Legislature (2025) Introduced by Eddie Morales

Bill grants Texas Railroad Commission power to fine propane retailers for regulatory violations, strengthening enforcement of safety and operational standards in the propane distribution system.

Received from the House
#civilremedies&liabilities(i0065) #railroadcommission(v0089) #utilities--general(i0830) #utilities--naturalgas(i0001)
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Bill Summary · HB 4041

Legislative bill overview

HB 4041 grants the Railroad Commission of Texas (RCT) authority to impose administrative penalties on propane distribution system retailers who violate regulations. The bill establishes a mechanism for the RCT to enforce compliance with propane safety and operational standards through financial sanctions rather than solely relying on other enforcement methods.

Why is this important

Propane is a critical energy source for heating, cooking, and industrial uses across Texas, affecting hundreds of thousands of consumers. Giving regulators direct penalty authority allows faster enforcement against non-compliant retailers, potentially improving public safety, preventing supply chain disruptions, and reducing reliance on court proceedings for violations.

Potential points of contention

  • Small business impact: Retail propane distributors, particularly smaller operators, may face financial penalties that could strain operations or increase costs passed to consumers
  • Regulatory authority scope: Questions about whether the RCT has adequate oversight mechanisms to ensure penalties are applied fairly and proportionally to violations
  • Due process clarity: Depending on implementation details, concerns about the procedural rights available to retailers before penalties are assessed

Compiled from official sources — confirm details with the bill’s official record.

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