Panel backs tougher misdemeanor penalties for stealing or defacing large propane tanks

The Senate Committee on Regulatory Affairs and Government Efficiency returned Senate Bill 1056 with a due-pass recommendation after testimony from industry representatives that higher penalties are necessary to prompt prosecution of propane-related theft and defacement.

Barry Aarons, representing the Arizona Propane Gas Association, testified that the measure responds to an increase in thefts and to companies that deface tanks to conceal ownership and obtain business unlawfully. “These are businesses who are either stealing propane, defacing somebody else's propane property, evacuating a propane tank that doesn't belong to them,” Aarons said in committee testimony.

Aarons told senators the legal language currently classifies the conduct as a class 3 misdemeanor in the propane-specific provision; that lower classification has made local law enforcement reluctant to pursue charges. He said the industry seeks consistency with nearby code sections that are class 2 misdemeanors and that elevating the offense would make prosecution more likely.

Committee members asked whether private homeowners could be affected; Aarons and other witnesses distinguished household barbecue cylinders — which are exempted — from the larger DOT-approved tanks used to serve homes or businesses. Witnesses described the typical tanks as ranging from about 20 to 200 gallons and said filling costs vary by market and usage; one committee exchange referenced a retail price example of about $6 per gallon and listed Tucson as an example market for statewide price comparisons.

Senators also asked whether the conduct could already be charged under general theft statutes. Industry speakers said those statutes are not consistently applied in these cases and that the propane-specific statute historically aligned similar violations at class 2.

After discussion the committee moved SB 1056 forward. The bill was returned with a due-pass recommendation on a committee vote of 6 ayes and 1 no.

What the bill would do

- Increase penalties for refilling, evacuating or defacing large liquefied petroleum gas tanks from a class 3 misdemeanor to a class 2 misdemeanor for the specified conduct in the propane code sections.

Context and details

Industry witnesses told the committee they have observed an “uptick” in unlawful activity by some operators that undercut lawful dealers and sometimes remove or obscure tank ownership information to solicit customers. Committee questions focused on whether the law could unintentionally penalize homeowners and on the size of tanks and likely financial impact for individual customers.

Next steps

SB 1056 will move to the full Senate for consideration after it received a due-pass recommendation from committee.