1. (a) A prospective licensee may apply to the commission for a license to engage in one or more of the categories specified in subsection (c)(1)-(6) of this section. Fees required to be paid shall be those established by the commission and in effect at the time of licensing or renewal, as specified in Table 1 of this section. A person may not engage in CNG activities unless that person has obtained a license as specified in this section. If a license expires or lapses, the person shall immediately cease CNG operations.
2. (b) License and renewal fees shall be prorated as specified in subsection (j) of this section.

3. (c) The license categories are as follows.

   1. (1) A Category 1 license for manufacturers of CNG cylinders authorizes the manufacture, assembly, repair, testing, sale, installation, or subframing of CNG cylinders.
   2. (2) A Category 2 license for general installers and repairmen authorizes the sale, installation, service, or repair of CNG systems, including cylinders.
   3. (3) A Category 3 license for retail and wholesale dealers authorizes the sale, storage, transportation for delivery, or dispensing of CNG for use other than by an ultimate consumer, and the sale, installation, service, or repair of CNG systems as set out in Categories 2, 5, and 6.
   4. (4) A Category 4 license for testing laboratories authorizes the testing of CNG cylinders.
   5. (5) A Category 5 license for service stations or cylinder exchangers authorizes the operation of a CNG service station, including filling CNG cylinders, or the operation of a cylinder exchange dealership, including filling CNG cylinders, the sale of CNG in cylinders, the sale of CNG cylinders, and the replacement of cylinder valves.
   6. (6) A Category 6 license for equipment dealers authorizes the sale of CNG cylinders or systems.
4. (d) An ultimate consumer is not subject to the licensing requirements of this title in order to perform those CNG activities dealing only with the ultimate consumer.
5. (e) An original manufacturer of a new motor vehicle powered by CNG, or a subcontractor of a manufacturer who produces a new CNG powered motor vehicle for the manufacturer, is not subject to the licensing requirements of this title, but must comply with all other regulations for compressed natural gas.
6. (f) A license obtained by an individual, partnership, corporation, or other legal entity extends to the entity's employees who are performing CNG work, provided that each employee is properly examined as required by this chapter.
7. (g) Licensees shall maintain a copy of the current Regulations for Compressed Natural Gas published by the commission and shall provide at least one copy to each company representative and operations supervisor. The copies shall be available to employees during business hours. Failure to maintain the required copies may result in enforcement action such as penalties or suspension of licenses.
8. (h) Licensees shall have copies of all current licenses and examination identification cards for employees at each location available for inspection during regular business hours.
9. (i) Licenses issued under this chapter expire one year after issuance at midnight on the last day of the month previous to the month in which they are issued.

10. (j) During the first year when a license changes from an August 31 renewal date to a staggered renewal date, the commission will randomly assign new license renewal dates to be staggered throughout the year. License renewal fees shall be prorated by:

    1. (1) dividing the applicable renewal fee by 12; and
    2. (2) multiplying that amount by the number of months assigned to the new staggered license. Fractions shall be rounded off to the nearest tenth of a dollar.
11. (k) Only licenses that are in effect during the time of the conversion to staggered renewal dates shall have prorated fees. New applicants for license shall pay all fees in full before the commission issues a license.

12. (l) When the commission assigns a new staggered license renewal date to a licensee, the commission shall notify the licensee of the new date at least 30 days in advance. For all subsequent renewals, the commission shall notify the licensee of the impending license expiration at least 15 days prior to the expiration date. Renewals shall be submitted to the commission along with the renewal fee specified in Table 1 of this section on or before the last day of the month in which the license expires in order for the licensee to continue CNG activities. Failure to meet the renewal deadline set forth in this section shall result in expiration of the license. If a person's license expires, that person shall immediately cease performance of any CNG activities.

    1. (1) If a person's license has been expired for fewer than 90 days, the person shall submit a late-filing penalty of one-half the amount of the annual renewal fee in addition to the required annual renewal fee. Upon receipt of the annual renewal fee and late-filing penalty, the commission shall verify that the person's license has not been suspended, revoked, or expired for more than two years. After verification, if the licensee has met all other requirements for licensing, the commission shall renew the license, and the person may resume CNG activities.
    2. (2) If a person's license has been expired for 90 days but less than two years, the person shall submit a late-filing penalty equal to the amount of the annual renewal fee in addition to the required annual renewal fee. Upon receipt of the annual renewal fee and late-filing penalty, the commission shall verify that the person's license has not been suspended, revoked, or expired for more than two years. After verification, if the licensee has met all other requirements for licensing, the commission shall renew the license, and the person may resume CNG activities.
    3. (3) If a person's license has been expired for more than two years, that person may not renew, but shall comply with the requirements for issuance of a new license.

13. (m) Applicants for license or license renewal shall file with the commission CNG Form 1001 designating a company representative who shall be an owner or employee of the licensee, and shall be directly responsible for actively supervising CNG operations of the licensee. A licensee may have more than one company representative.

    1. (1) An applicant for license shall not engage in CNG activities governed by the Texas Natural Resources Code, Chapter 116, and the Regulations for Compressed Natural Gas, until its company representative has successfully completed the management examination administered by the commission.
    2. (2) The licensee shall notify the commission in writing upon termination of its company representative of record and shall at the same time designate a replacement by submitting a new CNG Form 1001.
    3. (3) The licensee shall cease operations if, at the termination of its company representative, there is no other certified company representative of the licensee acknowledged and recorded by the commission at its Austin office. The licensee shall not resume operation until such time as it has a qualified company representative.

14. (n) In addition to complying with other licensing requirements set out in the Texas Natural Resources Code and the Regulations for Compressed Natural Gas, applicants for license or license renewal in the following categories shall comply with the specified additional requirements.

    1. (1) An applicant for a Category 1 license or renewal shall file with the commission for each of its outlets legible copies of:

       1. (A) its current DOT authorization. A licensee shall not continue to operate after the expiration date of the DOT authorization; and/or
       2. (B) its current ASME Code, Section VIII certificate of authorization or "R" certificate. If ASME is unable to issue a renewed certificate of authorization prior to the expiration date, the licensee may request in writing an extension of time not to exceed 60 calendar days past the expiration date. The licensee's request for extension shall be received by the commission prior to the expiration date of the ASME certificate of authorization referred to in this section, and shall include a letter or statement from ASME that the agency is unable to issue the renewal certificate of authorization prior to expiration and that a temporary extension will be granted for its purposes. A licensee shall not continue to operate after the expiration date of an ASME certificate of authorization until the licensee files a current ASME certificate of authorization with the commission, or the commission grants a temporary exception.
    2. (2) An applicant for a Category 4 license or renewal shall file a properly completed CNG Form 1505 with the commission, certifying that the applicant will follow the testing procedures indicated. CNG Form 1505 shall be signed by the appropriate CNG company representative designated on CNG Form 1001.

Source Note:The provisions of this §13.61 adopted to be effective June 13, 1995, 20 TexReg 3984.