State of Illinois
90th General Assembly
Legislation

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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
HB0279 Engrossed                               LRB9001301SMcc
 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;
HB0279 Engrossed            -2-                LRB9001301SMcc
 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
HB0279 Engrossed            -3-                LRB9001301SMcc
 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
HB0279 Engrossed            -4-                LRB9001301SMcc
 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
HB0279 Engrossed            -5-                LRB9001301SMcc
 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
HB0279 Engrossed            -6-                LRB9001301SMcc
 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
HB0279 Engrossed            -7-                LRB9001301SMcc
 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
HB0279 Engrossed            -8-                LRB9001301SMcc
 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.

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