HB324 Alabama 2013 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Mike Jones
Republican
Session: Regular Session 2013
Title: Liquefied Petroleum Gas Board, LP-Gas Recovery Fund abolished, board required to post rules in lieu of mailing, surety in cash requirement for permit holders deleted, permit F further provide for, Secs. 9-17-100, 9-17-101, 9-17-103, 9-17-104, 9-17-105, 9-17-106, 9-17-107, 9-17-109, 9-17-121, 9-17-122, 40-17-161, 40-17-164, 40-17-165 am'd.
Summary: HB324 overhauls Alabama's LP-Gas regulation by abolishing the LP-Gas Recovery Fund, moving rules online, expanding and restructuring permits, and tightening insurance, storage, reporting, and fee requirements.
What This Bill Does
The bill abolishes the LP-Gas Recovery Fund and creates a LP-Gas Research and Education Fund to handle related programs. It requires board rules and amendments to be posted on the board's website rather than mailed pamphlets. It eliminates the cash surety requirement for permit holders (with some allowances for bonds) and broadens permit categories (A through F, including B-1, C, C-1, C-2, D, E, F, and F-1) with new duties, inspections, and temporary authorizations. It imposes minimum storage and facility planning for bulk LP-Gas operations, introduces annual decals for LP-Gas vehicles, and establishes a detailed fee and insurance framework for each permit type, plus reporting and enforcement provisions.

Who It Affects
LP-Gas dealers and permit holders (A, B-1, C, C-1, C-2, D, E, F, F-1) and their agents or branches, who face new permit types, storage requirements, insurance standards, reporting duties, and updated fee schedules.
Insurance companies and surety providers, which must meet specified minimum coverages and bond requirements or alternatives for permit holders.
End users and consumers of LP-Gas in Alabama, including out-of-state purchases, who will be affected by new fees, reporting, safety rules, and enforcement mechanisms.
State and local government and law enforcement, which gain authority to issue uniform nontraffic citations and administer new safety, inspection, and identification requirements (e.g., decals, red-tag system).

Key Provisions
Abolition of the Liquefied Petroleum Gas Recovery Fund and creation of the Liquefied Petroleum Gas Research and Education Fund; funds and claims handling transition with possible third-party hearings for claims.
Board rules and amendments to be posted on the board website instead of mailing pamphlets; printed copies still available on request.
Elimination of the cash surety requirement for permit holders, with alternative bonding options allowed and a continued requirement for insurance certifications for permits.
Creation and definition of Permit types A–F (including B-1, C, C-1, C-2, D, E, F, F-1) with described rights, responsibilities, and conditions for each type, including temporary authorizations to operate awaiting final permits.
New minimum storage requirements: A permits require at least 30,000 gallons of LP-Gas storage, B-1 requires at least 18,000 gallons, with exemptions for certain agents and welding gases; bulk storage plans require board approval before construction.
Fees and due dates for each permit category, with specific schedules (e.g., A/B issuance $300, annual $200; B-1 issuance $100, annual $100; C/C-1/C-2 $50 annually, D $250, E $50, F/F-1 $100 or $100 respectively, with delinquency penalties and potential automatic cancellation).
Insurance requirements by permit type (general liability and auto liability limits; MCS-90 or board-approved forms for cargo vehicles); option to substitute bonds for insurance under certain conditions; required forms and process for proof of insurance.
Vehicle decals and identification: annual decals for LP-Gas vehicles with specified costs and display rules; out-of-state and end-user reporting requirements for LP-Gas purchases and transportation.
Storage, planning, and inspection requirements for bulk storage facilities, including plan submissions, site inspections, and required fees; rules governing the location and plans for bulk storage installations.
Enforcement and penalties: new powers for board officers to shut down red-tagged systems, issue uniform citations, and prosecute violations; separate offenses for violations, and criminal penalties for serious violations.
Enhanced reporting and recordkeeping: dealers and end-users must maintain and provide detailed transaction records and pay fees on a schedule, with penalties for noncompliance and processes for audits, appeals, and refunds.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Liquefied Petroleum Gas Board, Alabama