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90_HB2430eng
New Act
5 ILCS 80/4.19 new
30 ILCS 105/5.480 new
Creates the Illinois Petroleum Education and Marketing
Act and the Illinois Petroleum Resources Board. Repeals the
Board on July 1, 2002. Provides that the Board shall consist
of 12 members appointed by the Governor. Sets out the powers
and duties of the Board. Creates the Petroleum Resources
Revolving Fund, a continuing fund not subject to fiscal year
limitations. Allows the Board to levy an assessment equal to
one-tenth of 1% of the gross revenues of oil and gas produced
from each well in the State. Requires the assessment to be
deducted from the proceeds of production by the first
purchaser and remitted to the Department of Revenue. Sets
out the procedures for requesting a refund. Allows the Board
to invest funds collected through the assessments. Provides
that this Act does not preempt or supersede other State or
national programs. Amends the State Finance Act to add the
Petroleum Resources Revolving Fund. Amends the Regulatory
Agency Sunset Act to repeal the Illinois Petroleum Education
and Marketing Act on January 1, 2008. Effective July 1,
1998.
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1 AN ACT to create the Illinois Petroleum Education and
2 Marketing Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Petroleum Education and Marketing Act.
7 Section 5. Definitions. As used in this Act:
8 "Board" means the Illinois Petroleum Resources Board.
9 "Person" means an individual, group of individuals,
10 partnership, corporation, association, limited liability
11 company, cooperative, or any other entity or an employee of
12 the entity.
13 "Producer" means a person who produces oil and gas or who
14 derives a majority of his or her oil and gas income from
15 working interest.
16 "Qualified producer association" means an entity that is
17 organized and operating within the State and that represents
18 oil producers on a Statewide basis.
19 Section 10. Illinois Petroleum Resources Board.
20 (a) There is hereby created until July 1, 2002, the
21 Illinois Petroleum Resources Board which shall be subject to
22 the provisions of the Regulatory Agency Sunset Act. The
23 purpose of the Board is to coordinate a program designed to
24 demonstrate to the general public the importance of the
25 Illinois oil exploration and production industry, to
26 encourage the wise and efficient use of energy, to promote
27 environmentally sound production methods and technologies, to
28 develop existing supplies of State oil resources, and to
29 support research and educational activities concerning the
30 oil exploration and production industry.
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1 (b) The Board shall be composed of 12 members to be
2 appointed by the Governor. The Governor shall make
3 appointments from a list of names submitted by qualified
4 producer associations, of which 10 shall be oil and gas
5 producers.
6 (c) A member of the Board shall:
7 (1) be at least 25 years of age;
8 (2) be a resident of the State of Illinois; and
9 (3) have at least 5 years of active experience in
10 the oil industry.
11 (d) Members shall serve for a term of 3 years, except
12 that of the initial appointments, 4 members shall serve for
13 one year, 4 members for 2 years, and 4 members for 3 years.
14 (e) Vacancies shall be filled for the unexpired term of
15 office in the same manner as the original appointment.
16 (f) The Board shall, at its first meeting, elect one of
17 its members as chairperson, who shall preside over meetings
18 of the Board and perform other duties that may be required by
19 the Board. The first meeting of the Board shall be called by
20 the Governor.
21 (g) No member of the Board shall receive a salary or
22 reimbursement for duties performed as a member of the Board,
23 except that members are eligible to receive reimbursement for
24 travel expenses incurred in the performance of Board duties.
25 Section 15. Board powers and duties. The Board shall
26 have the following powers and duties:
27 (1) To administer and enforce the provisions of
28 this Act.
29 (2) To establish an office for the Board within the
30 State of Illinois.
31 (3) To elect a chairperson and any other officers
32 that may be necessary to direct the operations of the
33 Board.
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1 (4) To employ personnel as shall be deemed
2 necessary to carry out the purpose and provisions of this
3 Act and to prescribe their duties and fix their
4 compensation.
5 (5) To administer the Petroleum Resources Revolving
6 Fund.
7 (6) To approve or disapprove the budget of the
8 Board.
9 (7) To adopt rules as it deems necessary to carry
10 out the provisions of this Act.
11 (8) To enter into contracts or agreements for
12 studies, research projects, experimental work, supplies,
13 or other services to carry out the purposes of this Act
14 and to incur those expenses necessary to carry out those
15 purposes. A contract or agreement entered into under
16 this item shall provide that:
17 (A) the person entering the contract or
18 agreement on behalf of the Board shall develop and
19 submit to the Board a plan or project together with
20 a budget that shows estimated costs to be incurred
21 for the plan or project; and
22 (B) the person entering the contract or
23 agreement shall keep accurate records of all of its
24 transactions, account for funds received and
25 expended, and make periodic reports to the Board of
26 activities conducted and other reports that the
27 Board may require.
28 (9) To keep accurate records of all financial
29 transactions performed pursuant to this Act. These
30 records shall be audited annually by an independent
31 auditor and an annual report shall be compiled and
32 presented to the Governor.
33 (10) To cooperate with any private, local, state,
34 or national commission, organization, agency, or group
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1 and to make contracts and agreements for joint programs
2 beneficial to the oil industry.
3 (11) To accept donations, grants, contributions,
4 and gifts from any public or private source and deposit
5 them into the Petroleum Resources Revolving Fund.
6 (12) To approve or disapprove the investment of
7 moneys into the Petroleum Resources Revolving Fund under
8 Section 45 of this Act.
9 (13) To keep an accurate record of all assessments
10 collected.
11 Section 20. Board meetings; appointment of Director.
12 (a) There shall be an annual meeting of the Board at
13 which the annual report and proposed budget will be
14 presented. The Board shall, at the call of the chairperson,
15 hold at least 3 other regular meetings each year. The
16 chairperson shall establish the time, manner, and place for
17 all meetings and shall provide notice of the meetings. A
18 majority of the members of the Board shall constitute a
19 quorum for the transaction of any Board business. In
20 addition, the Board shall determine the circumstances under
21 which additional meetings of the Board may be held.
22 (b) The Board may appoint a Director who shall carry out
23 the provisions of this Act. The Director shall not be one of
24 the appointed Board members.
25 Section 25. Petroleum Resources Revolving Fund. There is
26 hereby created in the State Treasury a special fund to be
27 designated the "Petroleum Resources Revolving Fund". The
28 Fund shall be a continuing fund, not subject to fiscal year
29 limitations and shall consist of all moneys received by the
30 Illinois Petroleum Resources Board from assessments received
31 and collected pursuant to Section 30 of this Act and
32 donations, grants, contributions, and gifts from any public
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1 or private source. Pursuant to appropriation, the Board may
2 expend funds as provided for by law. Expenditures from the
3 Fund shall be made upon warrants issued by the State
4 Comptroller against claims filed as prescribed by law.
5 Section 30. Assessment on oil and gas production.
6 (a) To fund the activities of the Illinois Petroleum
7 Resources Board, an assessment shall be levied in the amount
8 of one-tenth of 1% of gross revenues of oil and gas produced
9 from each well in the State of Illinois.
10 (b) The assessment levied by subsection (a) of this
11 Section shall be deducted from the proceeds of production and
12 collected by the first purchaser. The assessment, which is
13 imposed on the producer, shall be remitted to the Department
14 of Revenue by the first purchaser on a tax return filed no
15 later than the 15th day of each month following the end of
16 the month in which the assessment was collected. To defray
17 the costs of receiving and depositing the assessments levied
18 by this Section, the Department of Revenue shall retain $750
19 per month of the assessments received for deposit into the
20 Tax Compliance and Administration Fund. The remaining moneys
21 received by the Department of Revenue pursuant to this
22 Section shall be deposited into the Illinois Petroleum
23 Resources Revolving Fund.
24 (c) The Board shall be responsible for taking
25 appropriate legal actions to collect any assessment which is
26 not paid or is not properly paid.
27 Section 35. Refunds.
28 (a) Any person subject to the assessment levied by
29 Section 30 of this Act may request a refund as provided in
30 this Section of the assessment paid on production for the
31 preceding calendar year. Upon compliance with the provisions
32 of this Section and rules adopted by the Board to implement
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1 this Section, the Board shall refund to each person
2 requesting a refund the amount of the assessment paid by or
3 on behalf of the person during the preceding calendar year.
4 Refunds made to producers will include interest earned at the
5 rate equal to the average United States Treasury bill rate of
6 the preceding calendar year as certified by the State
7 Treasurer.
8 (b) The request for a refund of the assessment paid on
9 production for the preceding calendar year must be made
10 during the first 3 calendar months following the calendar
11 year for which the refund is requested. Failure to request a
12 refund during this period shall terminate the right of any
13 person to receive a refund for the assessment paid on
14 production for the preceding calendar year. The Board shall
15 give notice of the availability of the refund through press
16 releases or another means it deems appropriate.
17 (c) Each person requesting a refund shall execute an
18 affidavit showing the amount of refund requested and
19 demonstrating that the affiant was the owner of the
20 production for which the refund is requested. The Board may
21 verify the accuracy of the request for refund.
22 (d) No entity or person requesting a refund under this
23 Section shall be eligible to serve or have a representative
24 serve as a member of the Board.
25 Section 45. Use of funds.
26 (a) All interest earned on moneys in the Petroleum
27 Resources Revolving Fund shall remain in the Fund.
28 (b) The Board shall not utilize any funds collected
29 under Section 30 of this Act for the purpose of influencing
30 government action or policy, with the exception of
31 recommending amendments to this Act.
32 Section 50. Application of Act. Nothing in this Act may
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1 be construed to preempt or supersede any other program
2 relating to oil and gas promotion or marketing organized and
3 operated under the laws of the State of Illinois or the
4 United States. In the event of the establishment of a
5 national program for an assessment on oil and natural gas
6 production, the Board by majority vote, may elect to
7 designate up to a maximum of 50% of the funds collected under
8 this Act to the national program in lieu of an additional
9 assessment as may be required by the national program.
10 Section 70. The Regulatory Agency Sunset Act is amended
11 by adding Section 4.19 as follows:
12 (5 ILCS 80/4.19 new)
13 Sec. 4.19. Act repealed on January 1, 2008. The
14 following Act is repealed on January 1, 2008:
15 The Illinois Petroleum Education and Marketing Act.
16 Section 80. The State Finance Act is amended by adding
17 Section 5.480 as follows:
18 (30 ILCS 105/5.480 new)
19 Sec. 5.480. The Petroleum Resources Revolving Fund.
20 Section 99. Effective date. This Act takes effect July
21 1, 1998.