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90_HB0279ham001
LRB9001301SMdvam02
1 AMENDMENT TO HOUSE BILL 279
2 AMENDMENT NO. . Amend House Bill 279 by replacing
3 everything after the enacting clause with the following:
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;
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1 "Odorized propane" means propane which has an odorant
2 added to it;
3 "Producer" means the owner of propane at the time it is
4 recovered at a gas processing plant or refinery; irrespective
5 of the state where production occurs;
6 "Propane" means a hydrocarbon whose chemical composition
7 is predominately C3H8, whether recovered from natural gas or
8 crude oil, and includes liquified petroleum gases and
9 mixtures thereof;
10 "Public member" means a member of the Council other than
11 a representative of producers or retail marketers
12 representing significant users of propane, public safety
13 officials, state regulatory officials, or other groups
14 knowledgeable about propane;
15 "Qualified industry organization" means the Illinois
16 Propane Gas Association, the National Propane Gas
17 Association, the Gas Processors Association, a successor
18 association of these associations, or any other propane
19 industry organization;
20 "Research" means any type of study, investigation or
21 other activities designed to advance the image, desirability,
22 usage, marketability, efficiency, and safety of propane and
23 to further the development of such information;
24 "Retail marketer" means a person engaged primarily in the
25 sale of odorized propane to the ultimate consumer or to
26 retail propane dispensers; and
27 "Retail propane dispenser" means a person who sells
28 odorized propane to the ultimate consumer but is not engaged
29 primarily in the business of such sales.
30 Section 10. Referendum; creation and termination of a
31 program.
32 (a) Qualified industry organizations shall conduct at
33 their own expense, a referendum among producers and retail
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1 marketers for the creation of an Illinois Propane Education
2 and Research Council. The Council, if established, shall
3 reimburse the qualified industry organizations for the cost
4 of the referendum accounting and documentation. The
5 referendum shall be conducted by an independent auditing firm
6 agreed to by the qualified industry organizations. The
7 results, as certified by an independent auditing firm, shall
8 be submitted to the Director within 30 days of certification.
9 Voting rights in the referendum shall be based on the volume
10 of propane produced or odorized propane sold in the previous
11 calendar year. Upon approval of those persons representing
12 two-thirds of the total volume of propane voted in the retail
13 marketer class and two-thirds of all propane voted in the
14 producer class, the Council shall be established, and shall
15 be authorized to levy an assessment on odorized propane in
16 accordance with Section 20. All persons voting in the
17 referendum shall certify to the independent auditing firm the
18 volume of propane represented by their vote.
19 (b) On the Council's own initiative, or on petition to
20 the Council by producers and retail marketers representing
21 35% of the volume of propane in each class, the Council
22 shall, at its own expense, hold a referendum to be conducted
23 by an independent auditing firm selected by the Council, to
24 determine whether the industry favors termination or
25 suspension of the Council. Termination or suspension shall
26 not take effect unless it is approved by persons representing
27 more than one-half of the total volume of odorized propane in
28 the retail marketer class and more than one-half the total
29 volume of propane in the producer class.
30 Section 15. Illinois Propane Education and Research
31 Council.
32 (a) The qualified industry organizations shall select
33 all retail marketers, public, and producer members of the
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1 Council. The producer organizations shall select the
2 producer members of the Council, the retail marketer
3 organizations shall select retail marketer members, and all
4 qualified industry organizations shall jointly select the
5 public members. Vacancies in the unfinished terms of Council
6 members shall be filled in the same manner as were the
7 original appointments.
8 (b) In selecting members of the Council, the qualified
9 industry organizations shall give due regard to selecting a
10 Council that is representative of the industry, including
11 representation of:
12 (1) gas processors and oil refiners among
13 producers;
14 (2) interstate and intrastate operators among
15 retail marketers;
16 (3) large and small companies among producers and
17 retail marketers, including agricultural cooperatives;
18 and
19 (4) diverse geographic regions of the State.
20 (c) The Council shall consist of 12 members, with 5
21 members representing retail marketers, 5 members representing
22 producers, and 2 public members. Other than the public
23 members, Council members shall be full-time employees or
24 owners of businesses in the industry or representatives of
25 agricultural cooperatives. No employee of a qualified
26 industry organization shall serve as a member of the Council,
27 and no member of the Council may serve concurrently as an
28 officer of the board of directors of a qualified industry
29 organization or other trade association. Only one person at
30 a time from any company or its affiliate may serve on the
31 Council. The Director may serve as an ex-officio non-voting
32 member of the Council.
33 (d) Council members shall receive no compensation for
34 their services, nor shall Council members be reimbursed for
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1 expenses relating to their service, except that public
2 members, upon request, may be reimbursed for reasonable
3 expenses directly related to their participation in Council
4 meetings.
5 (e) Council members shall serve terms of 3 years and may
6 not serve more than 2 full consecutive terms. Members
7 filling unexpired terms may serve not more than a total of 7
8 consecutive years. Former members of the Council may be
9 returned to the Council if they have not been members for a
10 period of 2 years. Initial appointments to the council shall
11 be for terms of 1, 2, and 3 years staggered to provide for
12 the selection of 4 members each year. The Council shall
13 notify the Director of the name, address, and propane-related
14 affiliation, if any, of a Council member within 30 days after
15 the appointment of the member to the Council.
16 (f) The Council shall develop programs and projects and
17 enter into contracts or agreements for implementing this Act,
18 including programs to enhance consumer and employee safety
19 and training, to provide for research and development of
20 clean and efficient propane utilization equipment, to inform
21 and educate the public about safety and other issues
22 associated with the use of propane, and to provide for the
23 payment of the costs thereof with funds collected pursuant to
24 this Act. The Council shall coordinate its activities with
25 industry trade associations and others as appropriate to
26 provide efficient delivery of services and to avoid
27 unnecessary duplication of activities.
28 (g) Issues related to research and development, safety,
29 education, and training shall be given priority by the
30 Council in the development of its programs and projects.
31 (h) The Council shall select from among its members a
32 Chairperson and other officers as necessary, may establish
33 committees and subcommittees of the Council, and shall adopt
34 rules and bylaws for the conduct of business and the
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1 implementation of this Act. The Council shall establish
2 procedures for the solicitation of industry comment and
3 recommendations on any significant plans, programs, and
4 projects to be funded by the Council. The Council may
5 establish advisory committees of persons other than Council
6 members.
7 (i) At the beginning of each fiscal period, the Council
8 shall prepare a budget plan for the next fiscal period,
9 including the probable cost of all programs, projects, and
10 contracts and a recommended rate of assessment sufficient to
11 cover such costs. The Council shall submit the proposed
12 budget to the Director for review and comment. The Director
13 may recommend programs and activities considered appropriate.
14 (j) The Council shall keep minutes, books, and records
15 that clearly reflect all of the acts and transactions of the
16 Council and make public such information. The books of the
17 Council shall be audited by a certified public accountant at
18 least once each fiscal year and at such other times as the
19 Council may designate. The expense of the audit shall be the
20 responsibility of the Council. Copies of such audit shall be
21 provided to all members of the Council, all qualified
22 industry organizations, and to other members of the industry
23 upon request.
24 Section 20. Assessments.
25 (a) The Council shall set the initial assessment at no
26 greater than 1/10 of 1 cent per gallon of odorized propane.
27 Thereafter, annual assessments shall be sufficient to cover
28 the costs of plans and programs developed by the Council.
29 The assessment shall not be greater than 1/2 cent per gallon
30 of odorized propane, unless approved by the majority of those
31 voting in a referendum in both the producer and retail
32 marketer class. In no case may the assessment be raised by
33 more than 1/10 of 1 cent per gallon of odorized propane
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1 annually.
2 (b) The owner of odorized propane at the time of
3 odorization, or the time of import of odorized propane shall
4 make the assessment based on the volume of odorized propane
5 sold and placed into commerce. The assessment, when made,
6 shall be listed as a separate line item on the bill labeled
7 "Illinois Propane Education and Research Assessment".
8 Assessments collected from purchasers of propane are payable
9 to the Council on a monthly basis by the 25th of the month
10 following the month of collection. If payment is not made to
11 the Council by the due date under this subsection, an
12 interest penalty of 1% of any amount unpaid shall be added
13 for each month or fraction of a month after the due date,
14 until final payment is made.
15 (c) The Council may establish an alternative means of
16 collecting the assessment if another means is found to be
17 more efficient and effective. The Council may establish a
18 late payment charge and rate of interest to be imposed on any
19 person who fails to remit or pay to the Council any amount
20 due under this Act.
21 (d) Pending disbursement pursuant to a program, plan, or
22 project, the Council shall invest funds collected through
23 assessments, and any other funds received by the Council,
24 only in obligations of the United States or any agency
25 thereof, in general obligations of any State or political
26 subdivision thereof, in any interest-bearing account or
27 certificate of deposit of a bank that is a member of the
28 Federal Reserve System, or in obligations fully guaranteed as
29 to principal and interest by the United States.
30 Section 25. Refunds. A purchaser of propane who has an
31 assessment added as a line item to the sale price may, by
32 application in writing to the Council, secure a refund in the
33 amount added. The refund shall be payable when the
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1 application has been made to the Council within 60 days after
2 the assessment. Interest shall be allowed and paid at the
3 rate of 6% per annum upon the total amount of such assessment
4 imposed by this Act, except that if any such assessment is
5 refunded within 90 days after an application for refund has
6 been made within the required 60 days after assessment or
7 within 90 days after the seller of the propane remits the
8 assessments collected to the Council, whichever is later, no
9 interest shall be allowed on such assessment. Each
10 application for refund by a purchaser of propane shall have
11 attached thereto proof of assessment charged. A purchaser who
12 obtains a refund is not eligible for any benefits provided
13 under the Council's programs.
14 Section 30. Compliance. The circuit court is vested
15 with the jurisdiction specifically to enforce this Act, and
16 prevent or restrain any person from violating any provisions
17 of this Act. A successful action for compliance under this
18 Section may also require payment by the defendant of the
19 costs incurred by the Council in bringing the action.
20 Section 35. Lobbying restrictions. No funds collected
21 by the Council shall be used in any manner for influencing
22 legislation or elections, except that the Council may
23 recommend to the Director changes in this Act or other
24 statutes that would further the purpose of this Act.
25 Section 40. Pricing. In all cases, the price of propane
26 shall be determined by market forces. Consistent with the
27 antitrust laws, the Council may take no action, nor may any
28 provision of this Act be interpreted as establishing an
29 agreement to pass along to consumers the cost of the
30 assessment provided for in Section 20.
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1 Section 45. Relation to other programs. Nothing in this
2 Act may be construed to preempt or supersede any other
3 program relating to propane education and research organized
4 and operated under the laws of the State of Illinois.".