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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 13REGULATIONS FOR COMPRESSED NATURAL GAS (CNG)
SUBCHAPTER CCLASSIFICATION, REGISTRATION, AND EXAMINATION
RULE §13.67Changes in Ownership and/or Form of Dealership

(a) Transfer of dealership outlet or location by sale, lease, or gift.

  (1) Licensing. The purchaser, lessee, or donee of any dealership outlet or location shall apply for and be issued a notice of tentative CNG license approval, prior to engaging in the transfer of such an entity. Such tentative CNG license approval, when issued, shall be valid for a period not to exceed 90 days from the date of issue. During this 90-day period, the licensee and the recipient of the tentative CNG license approval shall be allowed to conduct business under this subchapter. Any applicable licensing fees shall be prorated to cover this period of tentative approval and shall be payable at the time of application for tentative approval. Any portion of the licensing fees unused during this 90-day period shall be applied on a prorated basis to the licensing fee required of the new purchaser, lessee, or donee of such dealership or outlet.

  (2) Notice. After the transfer of any dealership outlet or location, the new operator/owner or the authorized representative thereof, shall notify LP-Gas Operations of the completed transfer of such dealership by certified mail immediately upon the completion of said transfer, and file with LP-Gas Operations all forms of application for licensing or registration required by this subchapter.

(b) Other changes in ownership.

  (1) Licensing. Upon the death of a sole proprietor or partner, the dissolution of a corporation or partnership, any changes in the members of a partnership, or other changes in ownership not specifically provided for elsewhere in this section, the CNG operation shall continue for no longer than 30 days, unless a CNG license is issued to the successor in interest and the notice requirements of paragraph (2) of this subsection have been satisfied. This 30-day period shall be allowed only when the licensee meets all other pertinent requirements of this subchapter, specifically those regarding the licensee's representative.

  (2) Notice. The successor in interest shall notify LP-Gas Operations by certified mail of the death of a sole proprietorship or partner, the dissolution of a corporation or partnership, any change in partnership members, or other changes in ownership not specifically provided for in this section.

  (3) Change in partnership members. A change in partnership members occurs upon the death, withdrawal, expulsion, or addition of a partner.

  (4) Transfer of stock. Notwithstanding, the provisions of paragraphs (1) - (3) of this subsection, a change in ownership does not occur, for the purpose of this section, when shares of stock in a corporation are transferred, exchanged, sold, or alienated, unless such action creates a new controlling interest in such corporation.

(c) Changes in dealership business form.

  (1) Licensing. When a dealership converts from one business entity to a different kind of business entity, the newly formed entity shall apply for and be issued a notice of tentative CNG license approval, prior to engaging in the conversion. Such tentative CNG license approval, when issued, shall be valid for a period not to exceed 90 days from the date of issue. During this 90-day period, the licensee (regardless of form) shall be allowed to conduct business under this subchapter. Any applicable licensing fees shall be paid or maintained to cover this period of tentative approval and shall be paid or payable at the time of application for tentative approval. Any fees paid by this original entity shall be credited on a prorated basis to the account of the new entity.

  (2) Notice. An authorized representative of the original entity or of the new entity shall notify LP-Gas Operations by certified mail of an accomplished change in business form immediately upon the completion of such conversion, and shall cause to be filed with LP-Gas Operations all forms of applications for licensing or registration required by this subchapter.


Source Note: The provisions of this §13.67 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective December 24, 2012, 37 TexReg 9917

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