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| [ Introduced ] | [ House Amendment 001 ] |
90_HB0279eng
New Act
Creates the Propane Education and Research Act. Provides
that propane industry organizations may conduct a referendum
for the creation of an Illinois Propane Education and
Research Council. The Council shall consist of 12 members
and shall develop programs to enhance consumer and employee
safety and training, to provide for research and development,
and to inform and educate the public about safety and other
issues associated with the use of propane. Provides for
assessments on odorized propane which are to be collected by
the entity which is the owner of odorized propane at the time
of odorization or at the time of import of odorized propane
and paid to the Council on a monthly basis. Those assessed
may apply for and receive a refund from the Council in the
amount of the assessment. No assessment funds may be used
for lobbying. The price of propane shall be determined by
market forces and assessment fees may not be passed on to
consumers.
LRB9001301SMcc
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1 AN ACT regarding assessments on the propane industry.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Illinois Propane Education and Research Act of 1997.
6 Section 5. Definitions. In this Act, unless the context
7 otherwise requires:
8 "Council" means a Propane Education and Research Council
9 created pursuant to Section 10 of this Act;
10 "Director" means Director of Agriculture or his or her
11 designee;
12 "Education" means any action to provide information
13 regarding propane, propane equipment, mechanical and
14 technical practices, and propane uses to consumers and
15 members of the propane industry;
16 "Industry" means those persons involved in the
17 production, transportation, and sale of propane, and the
18 manufacture and distribution of propane utilization
19 equipment;
20 "Industry trade association" means an organization exempt
21 from tax, under Section 501(c)(3), or (6) of the Internal
22 Revenue Code of 1986, representing the propane industry;
23 "Odorized propane" means propane which has an odorant
24 added to it;
25 "Producer" means the owner of propane at the time it is
26 recovered at a gas processing plant or refinery; irrespective
27 of the state where production occurs;
28 "Propane" means a hydrocarbon whose chemical composition
29 is predominately C3H8, whether recovered from natural gas or
30 crude oil, and includes liquified petroleum gases and
31 mixtures thereof;
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1 "Public member" means a member of the Council other than
2 a representative of producers or retail marketers
3 representing significant users of propane, public safety
4 officials, state regulatory officials, or other groups
5 knowledgeable about propane;
6 "Qualified industry organization" means the Illinois
7 Propane Gas Association, the National Propane Gas
8 Association, the Gas Processors Association, a successor
9 association of these associations, or any other propane
10 industry organization;
11 "Research" means any type of study, investigation or
12 other activities designed to advance the image, desirability,
13 usage, marketability, efficiency, and safety of propane and
14 to further the development of such information;
15 "Retail marketer" means a person engaged primarily in the
16 sale of odorized propane to the ultimate consumer or to
17 retail propane dispensers; and
18 "Retail propane dispenser" means a person who sells
19 odorized propane to the ultimate consumer but is not engaged
20 primarily in the business of such sales.
21 Section 10. Referendum; creation and termination of a
22 program.
23 (a) Qualified industry organizations shall conduct at
24 their own expense, a referendum among producers and retail
25 marketers for the creation of an Illinois Propane Education
26 and Research Council. The Council, if established, shall
27 reimburse the qualified industry organizations for the cost
28 of the referendum accounting and documentation. The
29 referendum shall be conducted by an independent auditing firm
30 agreed to by the qualified industry organizations. The
31 results, as certified by an independent auditing firm, shall
32 be submitted to the Director within 30 days of certification.
33 Voting rights in the referendum shall be based on the volume
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1 of propane produced or odorized propane sold in the previous
2 calendar year. Upon approval of those persons representing
3 two-thirds of the total volume of propane voted in the retail
4 marketer class and two-thirds of all propane voted in the
5 producer class, the Council shall be established, and shall
6 be authorized to levy an assessment on odorized propane in
7 accordance with Section 20. All persons voting in the
8 referendum shall certify to the independent auditing firm the
9 volume of propane represented by their vote.
10 (b) On the Council's own initiative, or on petition to
11 the Council by producers and retail marketers representing
12 35% of the volume of propane in each class, the Council
13 shall, at its own expense, hold a referendum to be conducted
14 by an independent auditing firm selected by the Council, to
15 determine whether the industry favors termination or
16 suspension of the Council. Termination or suspension shall
17 not take effect unless it is approved by persons representing
18 more than one-half of the total volume of odorized propane in
19 the retail marketer class and more than one-half the total
20 volume of propane in the producer class.
21 Section 15. Illinois Propane Education and Research
22 Council.
23 (a) The qualified industry organizations shall select
24 all retail marketers, public, and producer members of the
25 Council. The producer organizations shall select the
26 producer members of the Council, the retail marketer
27 organizations shall select retail marketer members, and all
28 qualified industry organizations shall jointly select the
29 public members. Vacancies in the unfinished terms of Council
30 members shall be filled in the same manner as were the
31 original appointments.
32 (b) In selecting members of the Council, the qualified
33 industry organizations shall give due regard to selecting a
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1 Council that is representative of the industry, including
2 representation of:
3 (1) gas processors and oil refiners among
4 producers;
5 (2) interstate and intrastate operators among
6 retail marketers;
7 (3) large and small companies among producers and
8 retail marketers, including agricultural cooperatives;
9 and
10 (4) diverse geographic regions of the State.
11 (c) The Council shall consist of 12 members, with 5
12 members representing retail marketers, 5 members representing
13 producers, and 2 public members. Other than the public
14 members, Council members shall be full-time employees or
15 owners of businesses in the industry or representatives of
16 agricultural cooperatives. No employee of a qualified
17 industry organization shall serve as a member of the Council,
18 and no member of the Council may serve concurrently as an
19 officer of the board of directors of a qualified industry
20 organization or other trade association. Only one person at
21 a time from any company or its affiliate may serve on the
22 Council. The Director may serve as an ex-officio non-voting
23 member of the Council.
24 (d) Council members shall receive no compensation for
25 their services, nor shall Council members be reimbursed for
26 expenses relating to their service, except that public
27 members, upon request, may be reimbursed for reasonable
28 expenses directly related to their participation in Council
29 meetings.
30 (e) Council members shall serve terms of 3 years and may
31 not serve more than 2 full consecutive terms. Members
32 filling unexpired terms may serve not more than a total of 7
33 consecutive years. Former members of the Council may be
34 returned to the Council if they have not been members for a
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1 period of 2 years. Initial appointments to the council shall
2 be for terms of 1, 2, and 3 years staggered to provide for
3 the selection of 4 members each year. The Council shall
4 notify the Director of the name, address, and propane-related
5 affiliation, if any, of a Council member within 30 days after
6 the appointment of the member to the Council.
7 (f) The Council shall develop programs and projects and
8 enter into contracts or agreements for implementing this Act,
9 including programs to enhance consumer and employee safety
10 and training, to provide for research and development of
11 clean and efficient propane utilization equipment, to inform
12 and educate the public about safety and other issues
13 associated with the use of propane, and to provide for the
14 payment of the costs thereof with funds collected pursuant to
15 this Act. The Council shall coordinate its activities with
16 industry trade associations and others as appropriate to
17 provide efficient delivery of services and to avoid
18 unnecessary duplication of activities.
19 (g) Issues related to research and development, safety,
20 education, and training shall be given priority by the
21 Council in the development of its programs and projects.
22 (h) The Council shall select from among its members a
23 Chairperson and other officers as necessary, may establish
24 committees and subcommittees of the Council, and shall adopt
25 rules and bylaws for the conduct of business and the
26 implementation of this Act. The Council shall establish
27 procedures for the solicitation of industry comment and
28 recommendations on any significant plans, programs, and
29 projects to be funded by the Council. The Council may
30 establish advisory committees of persons other than Council
31 members.
32 (i) At the beginning of each fiscal period, the Council
33 shall prepare a budget plan for the next fiscal period,
34 including the probable cost of all programs, projects, and
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1 contracts and a recommended rate of assessment sufficient to
2 cover such costs. The Council shall submit the proposed
3 budget to the Director for review and comment. The Director
4 may recommend programs and activities considered appropriate.
5 (j) The Council shall keep minutes, books, and records
6 that clearly reflect all of the acts and transactions of the
7 Council and make public such information. The books of the
8 Council shall be audited by a certified public accountant at
9 least once each fiscal year and at such other times as the
10 Council may designate. The expense of the audit shall be the
11 responsibility of the Council. Copies of such audit shall be
12 provided to all members of the Council, all qualified
13 industry organizations, and to other members of the industry
14 upon request.
15 Section 20. Assessments.
16 (a) The Council shall set the initial assessment at no
17 greater than 1/10 of 1 cent per gallon of odorized propane.
18 Thereafter, annual assessments shall be sufficient to cover
19 the costs of plans and programs developed by the Council.
20 The assessment shall not be greater than 1/2 cent per gallon
21 of odorized propane, unless approved by the majority of those
22 voting in a referendum in both the producer and retail
23 marketer class. In no case may the assessment be raised by
24 more than 1/10 of 1 cent per gallon of odorized propane
25 annually.
26 (b) The owner of odorized propane at the time of
27 odorization, or the time of import of odorized propane shall
28 make the assessment based on the volume of odorized propane
29 sold and placed into commerce. The assessment, when made,
30 shall be listed as a separate line item on the bill labeled
31 "Illinois Propane Education and Research Assessment".
32 Assessments collected from purchasers of propane are payable
33 to the Council on a monthly basis by the 25th of the month
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1 following the month of collection. If payment is not made to
2 the Council by the due date under this subsection, an
3 interest penalty of 1% of any amount unpaid shall be added
4 for each month or fraction of a month after the due date,
5 until final payment is made.
6 (c) The Council may establish an alternative means of
7 collecting the assessment if another means is found to be
8 more efficient and effective. The Council may establish a
9 late payment charge and rate of interest to be imposed on any
10 person who fails to remit or pay to the Council any amount
11 due under this Act.
12 (d) Pending disbursement pursuant to a program, plan, or
13 project, the Council shall invest funds collected through
14 assessments, and any other funds received by the Council,
15 only in obligations of the United States or any agency
16 thereof, in general obligations of any State or political
17 subdivision thereof, in any interest-bearing account or
18 certificate of deposit of a bank that is a member of the
19 Federal Reserve System, or in obligations fully guaranteed as
20 to principal and interest by the United States.
21 Section 25. Refunds. A purchaser of propane who has an
22 assessment added as a line item to the sale price may, by
23 application in writing to the Council, secure a refund in the
24 amount added. The refund shall be payable when the
25 application has been made to the Council within 60 days after
26 the assessment. Interest shall be allowed and paid at the
27 rate of 6% per annum upon the total amount of such assessment
28 imposed by this Act, except that if any such assessment is
29 refunded within 90 days after an application for refund has
30 been made within the required 60 days after assessment or
31 within 90 days after the seller of the propane remits the
32 assessments collected to the Council, whichever is later, no
33 interest shall be allowed on such assessment. Each
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1 application for refund by a purchaser of propane shall have
2 attached thereto proof of assessment charged. A purchaser who
3 obtains a refund is not eligible for any benefits provided
4 under the Council's programs.
5 Section 30. Compliance. The circuit court is vested
6 with the jurisdiction specifically to enforce this Act, and
7 prevent or restrain any person from violating any provisions
8 of this Act. A successful action for compliance under this
9 Section may also require payment by the defendant of the
10 costs incurred by the Council in bringing the action.
11 Section 35. Lobbying restrictions. No funds collected
12 by the Council shall be used in any manner for influencing
13 legislation or elections, except that the Council may
14 recommend to the Director changes in this Act or other
15 statutes that would further the purpose of this Act.
16 Section 40. Pricing. In all cases, the price of propane
17 shall be determined by market forces. Consistent with the
18 antitrust laws, the Council may take no action, nor may any
19 provision of this Act be interpreted as establishing an
20 agreement to pass along to consumers the cost of the
21 assessment provided for in Section 20.
22 Section 45. Relation to other programs. Nothing in this
23 Act may be construed to preempt or supersede any other
24 program relating to propane education and research organized
25 and operated under the laws of the State of Illinois.