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| [ Senate Amendment 001 ] |
90_HB0998ham001
LRB9004105DPmbam01
1 AMENDMENT TO HOUSE BILL 998
2 AMENDMENT NO. . Amend House Bill 998 by replacing
3 the title with the following:
4 "AN ACT to create the Illinois Petroleum Education and
5 Marketing Act."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Illinois Petroleum Education and Marketing Act.
10 Section 5. Definitions. As used in this Act:
11 "Board" means the Illinois Petroleum Resources Board;
12 "Person" means an individual, group of individuals,
13 partnership, corporation, association, limited liability
14 company, cooperative, or any other entity or an employee of
15 the entity.
16 "Producer" means a person who produces oil and gas or who
17 derives a majority of his or her oil and gas income from
18 working interest.
19 "Qualified producer association" means an entity that is
20 organized and operating within the State and that represents
21 oil producers on a Statewide basis.
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1 Section 10. Illinois Petroleum Resources Board.
2 (a) There is hereby created until July 1, 2002, the
3 Illinois Petroleum Resources Board which shall be subject to
4 the provisions of the Regulatory Agency Sunset Act. The
5 purpose of the Board is to coordinate a program designed to
6 demonstrate to the general public the importance of the
7 Illinois oil exploration and production industry, to
8 encourage the wise and efficient use of energy, to promote
9 environmentally sound production methods and technologies, to
10 develop existing supplies of State oil resources, and to
11 support research and educational activities concerning the
12 oil exploration and production industry.
13 (b) The Board shall be composed of 12 members to be
14 appointed by the Governor. The Governor shall make
15 appointments from a list of names submitted by qualified
16 producer associations, of which 10 shall be oil and gas
17 producers.
18 (c) A member of the Board shall:
19 (1) be at least 25 years of age;
20 (2) be a resident of the State of Illinois; and
21 (3) have at least 5 years of active experience in
22 the oil industry.
23 (d) Members shall serve for a term of 3 years, except
24 that of the initial appointments, 4 members shall serve for
25 one year, 4 members for 2 years, and 4 members for 3 years.
26 (e) Vacancies shall be filled for the unexpired term of
27 office in the same manner as the original appointment.
28 (f) The Board shall, at its first meeting, elect one of
29 its members as chairperson, who shall preside over meetings
30 of the Board and perform other duties that may be required by
31 the Board. The first meeting of the Board shall be called by
32 the Governor.
33 (g) No member of the Board shall receive a salary or
34 reimbursement for duties performed as a member of the Board,
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1 except that members are eligible to receive reimbursement for
2 travel expenses incurred in the performance of Board duties.
3 Section 15. Board powers and duties. The Board shall
4 have the following powers and duties:
5 (1) To administer and enforce the provisions of
6 this Act.
7 (2) To establish an office for the Board within the
8 State of Illinois.
9 (3) To elect a chairperson and any other officers
10 that may be necessary to direct the operations of the
11 Board.
12 (4) To employ personnel as shall be deemed
13 necessary to carry out the purpose and provisions of this
14 Act and to prescribe their duties and fix their
15 compensation.
16 (5) To administer the Petroleum Resources Revolving
17 Fund.
18 (6) To approve or disapprove the budget of the
19 Board.
20 (7) To adopt rules as it deems necessary to carry
21 out the provisions of this Act.
22 (8) To enter into contracts or agreements for
23 studies, research projects, experimental work, supplies,
24 or other services to carry out the purposes of this Act
25 and to incur those expenses necessary to carry out those
26 purposes. A contract or agreement entered into under
27 this item shall provide that:
28 (A) the person entering the contract or
29 agreement on behalf of the Board shall develop and
30 submit to the Board a plan or project together with
31 a budget that shows estimated costs to be incurred
32 for the plan or project; and
33 (B) the person entering the contract or
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1 agreement shall keep accurate records of all of its
2 transactions, account for funds received and
3 expended, and make periodic reports to the Board of
4 activities conducted and other reports that the
5 Board may require.
6 (9) To keep accurate records of all financial
7 transactions performed pursuant to this Act. These
8 records shall be audited annually by an independent
9 auditor and an annual report shall be compiled and
10 presented to the Governor.
11 (10) To cooperate with any private, local, state,
12 or national commission, organization, agency, or group
13 and to make contracts and agreements for joint programs
14 beneficial to the oil industry.
15 (11) To accept donations, grants, contributions,
16 and gifts from any public or private source and deposit
17 them into the Petroleum Resources Revolving Fund.
18 (12) To approve or disapprove the investment of
19 moneys into the Petroleum Resources Revolving Fund under
20 Section 45 of this Act.
21 (13) To keep an accurate record of all assessments
22 collected.
23 Section 20. Board meetings; appointment of Director.
24 (a) There shall be an annual meeting of the Board at
25 which the annual report and proposed budget will be
26 presented. The Board shall, at the call of the chairperson,
27 hold at least 3 other regular meetings each year. The
28 chairperson shall establish the time, manner, and place for
29 all meetings and shall provide notice of the meetings. A
30 majority of the members of the Board shall constitute a
31 quorum for the transaction of any Board business. In
32 addition, the Board shall determine the circumstances under
33 which additional meetings of the Board may be held.
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1 (b) The Board may appoint a Director who shall carry out
2 the provisions of this Act. The Director shall not be one of
3 the appointed Board members.
4 Section 25. Petroleum Resources Revolving Fund. There is
5 hereby created in the State Treasury a special fund to be
6 designated the "Petroleum Resources Revolving Fund". The
7 Fund shall be a continuing fund, not subject to fiscal year
8 limitations and shall consist of all moneys received by the
9 Illinois Petroleum Resources Board from assessments received
10 and collected pursuant to Section 30 of this Act and
11 donations, grants, contributions, and gifts from any public
12 or private source. Pursuant to appropriation, the Board may
13 expend funds as provided for by law. Expenditures from the
14 Fund shall be made upon warrants issued by the State
15 Treasurer against claims filed as prescribed by law.
16 Section 30. Assessment on oil and gas production.
17 (a) To fund the activities of the Illinois Petroleum
18 Resources Board, an assessment shall be levied in the amount
19 of one-tenth of 1% of gross revenues of oil and gas produced
20 from each well in the State of Illinois.
21 (b) The assessment levied by subsection (a) of this
22 Section shall be deducted from the proceeds of production by
23 the first purchaser. The assessment shall be remitted to
24 Department of Revenue, provided that the person remitting the
25 assessment may remit cumulative amounts of $25 or less
26 quarterly. To defray the costs of receiving and depositing
27 the assessments levied by this Section, the Department of
28 Revenue shall retain $750 per month of the assessments
29 received for deposit into the General Revenue Fund. The
30 remaining moneys received by the Department of Revenue
31 pursuant to this Section shall be deposited into the Illinois
32 Petroleum Resources Revolving Fund.
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1 (c) The Board shall be responsible for taking
2 appropriate legal actions to collect any assessment which is
3 not paid or is not properly paid.
4 Section 35. Refunds.
5 (a) Any person subject to the assessment levied by
6 Section 30 of this Act may request a refund as provided in
7 this Section of the assessment paid on production for the
8 preceding calendar year. Upon compliance with the provisions
9 of this Section and rules adopted by the Board to implement
10 this Section, the Board shall refund to each person
11 requesting a refund of the amount of the assessment paid by
12 or on behalf of the person during the preceding calendar
13 year. Refunds made to producers will include interest earned
14 at the rate equal to the average United States Treasury bill
15 rate of the preceding calendar year as certified by the State
16 Treasurer.
17 (b) The request for a refund of the assessment paid on
18 production for the preceding calendar year must be made
19 during the first 3 calendar months following the calendar
20 year for which the refund is requested. Failure to request a
21 refund during this period shall terminate the right of any
22 person to receive a refund for the assessment paid on
23 production for the preceding calendar year. The Board shall
24 give notice of the availability of the refund through press
25 releases or another means it deems appropriate.
26 (c) Each person requesting a refund shall execute an
27 affidavit showing the amount of refund requested and
28 demonstrating that the affiant was the owner of the
29 production for which the refund is requested. The Board may
30 verify the accuracy of the request for refund.
31 (d) No entity or person requesting a refund under this
32 Section shall be eligible to serve or have a representative
33 serve as a member of the Board.
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1 Section 45. Investment of funds.
2 (a) The Board may invest, pending disbursement, funds
3 collected through assessments only in obligations of the
4 United States or any agency thereof, in general obligations
5 of any state, in any interest-bearing account or certificate
6 of deposit of a bank that is a member of the Federal Reserve
7 System, or in obligations fully guaranteed as to principal
8 and interest by the United States.
9 (b) The Board shall not utilize any funds collected
10 under Section 30 of this Act for the purpose of influencing
11 government action or policy, with the exception of
12 recommending amendments to this Act.
13 Section 50. Application of Act. Nothing in this Act may
14 be construed to preempt or supersede any other program
15 relating to oil and gas promotion or marketing organized and
16 operated under the laws of the State of Illinois or the
17 United States. In the event of the establishment of a
18 national program for an assessment on oil and natural gas
19 production, the Board by majority vote, may elect to
20 designate up to a maximum of 50% of the funds collected under
21 this Act to the national program in lieu of an additional
22 assessment as may be required by the national program.
23 Section 99. Effective date. This Act takes effect
24 October 1, 1997.".