Public Act 094-1085
 
SB1989 Enrolled SDS094 00121 LMT 30121 b

    AN ACT concerning drilling operations.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Regulatory Sunset Act is amended by changing
Sections 4.18 and 4.26 as follows:
 
    (5 ILCS 80/4.18)
    Sec. 4.18. Acts repealed January 1, 2008. The following
Acts are repealed on January 1, 2008:
    The Acupuncture Practice Act.
    The Clinical Social Work and Social Work Practice Act.
    The Home Medical Equipment and Services Provider License
Act.
    The Nursing and Advanced Practice Nursing Act.
    The Illinois Petroleum Education and Marketing Act.
    The Illinois Speech-Language Pathology and Audiology
Practice Act.
    The Marriage and Family Therapy Licensing Act.
    The Nursing Home Administrators Licensing and Disciplinary
Act.
    The Pharmacy Practice Act of 1987.
    The Physician Assistant Practice Act of 1987.
    The Podiatric Medical Practice Act of 1987.
    The Structural Pest Control Act.
(Source: P.A. 94-754, eff. 5-10-06.)
 
    (5 ILCS 80/4.26)
    Sec. 4.26. Acts Act repealed on January 1, 2016. The
following Acts are Act is repealed on January 1, 2016:
    The Illinois Athletic Trainers Practice Act.
    The Illinois Roofing Industry Licensing Act.
    The Illinois Dental Practice Act.
    The Collection Agency Act.
    The Barber, Cosmetology, Esthetics, and Nail Technology
Act of 1985.
    The Respiratory Care Practice Act.
    The Hearing Instrument Consumer Protection Act.
    The Illinois Physical Therapy Act.
    The Professional Geologist Licensing Act.
    The Illinois Petroleum Education and Marketing Act.
(Source: P.A. 94-246, eff. 1-1-06; 94-254, eff. 7-19-05;
94-409, eff. 12-31-05; 94-414, eff. 12-31-05; 94-451, eff.
12-31-05; 94-523, eff. 1-1-06; 94-527, eff. 12-31-05; 94-651,
eff. 1-1-06; 94-708, eff. 12-5-05; revised 12-8-05.)
 
    Section 10. The Illinois Petroleum Education and Marketing
Act is amended by changing Sections 5, 10, 15, 30, 35, and 45
and by adding Section 27 as follows:
 
    (225 ILCS 728/5)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 5. Definitions. As used in this Act:
    "Board" means the Illinois Petroleum Resources Board.
    "Department" means the Department of Natural Resources.
    "First purchaser" means any person who buys Illinois crude
oil or Illinois gas.
    "Interest owner" means a person who owns or possesses an
interest in the gross production of oil or gas produced from a
well in Illinois.
    "Person" means an individual, group of individuals,
partnership, corporation, association, limited liability
company, cooperative, or any other entity or an employee of the
entity.
    "Producer" means a person who produces oil and gas or who
derives a majority of his or her oil and gas income from
working interest.
    "Qualified producer association" means an entity that is
organized and operating within the State and that represents
oil and gas producers on a Statewide basis.
(Source: P.A. 92-610, eff. 7-1-02.)
 
    (225 ILCS 728/10)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 10. Illinois Petroleum Resources Board.
    (a) There is hereby created until January 1, 2016 2008, the
Illinois Petroleum Resources Board, which shall be subject to
the provisions of the Regulatory Sunset Act. The purpose of the
Board is to coordinate a program designed to demonstrate to the
general public the importance of the Illinois oil and gas
exploration and production industry, to encourage the wise and
efficient use of energy, to promote environmentally sound
production methods and technologies, to develop existing
supplies of State oil and gas resources, and to support
research and educational activities concerning the oil and gas
exploration and production industry.
    (b) The Board shall be composed of 12 members to be
appointed as follows:
        (1) Through December 31, 2006, by the Governor. The
    Governor shall make appointments from a list of names
    submitted by qualified producer associations, of which 10
    shall be oil and gas producers.
        (2) Beginning January 1, 2007, all appointments shall
    be made by the qualified producer associations.
    (c) A member of the Board shall:
        (1) be at least 25 years of age;
        (2) be a resident of the State of Illinois; and
        (3) have at least 5 years of active experience in the
    oil industry.
    (d) Members shall serve for a term of 3 years, except that
of the initial appointments, 4 members shall serve for one
year, 4 members for 2 years, and 4 members for 3 years.
    (e) Vacancies shall be filled for the unexpired term of
office in the same manner as the original appointment.
    (f) The Board shall, at its first meeting, elect one of its
members as chairperson, who shall preside over meetings of the
Board and perform other duties that may be required by the
Board. The first meeting of the Board shall be called by the
Governor.
    (g) No member of the Board shall receive a salary or
reimbursement for duties performed as a member of the Board,
except that members are eligible to receive reimbursement for
travel expenses incurred in the performance of Board duties.
(Source: P.A. 92-610, eff. 7-1-02; 92-651, eff. 7-11-02;
revised 8-12-02.)
 
    (225 ILCS 728/15)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 15. Board powers and duties. The Board shall have the
following powers and duties:
        (1) To administer and enforce the provisions of this
    Act.
        (2) To establish an office for the Board within the
    State of Illinois.
        (3) To elect a chairperson and any other officers that
    may be necessary to direct the operations of the Board.
        (4) To employ personnel as shall be deemed necessary to
    carry out the purpose and provisions of this Act and to
    prescribe their duties and fix their compensation.
        (5) To receive and administer all assessments,
    donations, grants, contributions, and gifts received by
    the Board pursuant to this Act and to deposit them into
    accounts maintained by the Board the Petroleum Resources
    Revolving Fund.
        (6) To annually establish priorities and approve a
    prepared or disapprove the budget consistent with
    estimated resources of the Board.
        (7) To adopt rules as it deems necessary to carry out
    the provisions of this Act.
        (8) To enter into contracts or agreements for studies,
    research projects, experimental work, supplies, or other
    services to carry out the purposes of this Act and to incur
    those expenses necessary to carry out those purposes. A
    contract or agreement entered into under this item shall
    provide that:
            (A) the person entering the contract or agreement
        on behalf of the Board shall develop and submit to the
        Board a plan or project together with a budget that
        shows estimated costs to be incurred for the plan or
        project; and
            (B) the person entering the contract or agreement
        shall keep accurate records of all of its transactions,
        account for funds received and expended, and make
        periodic reports to the Board of activities conducted
        and other reports that the Board may require.
        (9) To keep accurate records of all financial
    transactions performed pursuant to this Act. These records
    shall be audited annually by an independent auditor who is
    a certified public accountant and has been selected by the
    Board, and an annual report shall be compiled and made
    available to any interest owner and filed with the
    Department presented to the Governor.
        (10) To cooperate with any private, local, state, or
    national commission, organization, agency, or group and to
    make contracts and agreements for joint programs
    beneficial to the oil and gas industry.
        (11) To accept donations, grants, contributions, and
    gifts from any public or private source and deposit them
    into accounts maintained by the Board the Petroleum
    Resources Revolving Fund.
        (12) To keep an accurate record of all assessments
    collected.
(Source: P.A. 90-614, eff. 7-10-98.)
 
    (225 ILCS 728/27 new)
    Sec. 27. Petroleum Resources Revolving Fund abolished;
moneys and assets transferred to Board. On January 1, 2007, or
as soon thereafter as practical, the State Comptroller shall
direct and the State Treasurer shall pay the remaining balance
in the Petroleum Revolving Fund to the Board. Upon the
completion of this payment, the Fund is abolished, and any
future deposits due to the Fund and any outstanding obligations
or liabilities of the Fund pass to the Board. In addition,
ownership of all assets in the possession of the Board that are
property of the State shall be transferred to the Board.
 
    (225 ILCS 728/30)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 30. Assessment on oil and gas production.
    (a) To fund the activities of the Illinois Petroleum
Resources Board, an assessment shall be levied in the amount of
one-tenth of 1% of gross revenues of oil and gas produced from
each well in the State of Illinois.
    (b) The assessment levied by subsection (a) of this Section
shall be deducted from the proceeds of production and collected
by the first purchaser. The assessment, which is imposed on the
interest owner, shall be remitted to the Board Department of
Revenue by the first purchaser on an assessment form provided
by the Board, along with any other requested production records
in compliance with assessment payments and enforcement
provisions of this Act and rules adopted by the Board. The
remittance and specified data shall be delivered to the Board
no later than the 15th day of each month following the end of
the month in which the assessment was collected. The Board
shall deposit the assessment into accounts, operating or
reserve, to be used as authorized by this Act a tax return
filed no later than the 15th day of each month following the
end of the month in which the assessment was collected. To
defray the costs of receiving and depositing the assessments
levied by this Section, the Department of Revenue shall retain
$750 per month of the assessments received for deposit into the
Tax Compliance and Administration Fund. The remaining moneys
received by the Department of Revenue pursuant to this Section
shall be deposited into the Illinois Petroleum Resources
Revolving Fund.
    (c) The Board shall be responsible for taking appropriate
legal actions to collect any assessment which is not paid or is
not properly paid.
(Source: P.A. 92-610, eff. 7-1-02.)
 
    (225 ILCS 728/35)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 35. Refunds.
    (a) Any person subject to the assessment levied by Section
30 of this Act may request a refund as provided in this Section
of the assessment paid on production for the preceding calendar
year. Upon compliance with the provisions of this Section and
rules adopted by the Board to implement this Section, the Board
shall refund to each person requesting a refund the amount of
the assessment paid by or on behalf of the person during the
preceding calendar year. Refunds made to producers will include
interest earned at the rate equal to the average United States
Treasury bill rate of the preceding calendar year as documented
from government sources certified by the State Treasurer.
    (b) The request for a refund of the assessment paid on
production for the preceding calendar year must be made during
the first 3 calendar months following the calendar year for
which the refund is requested. Failure to request a refund
during this period shall terminate the right of any person to
receive a refund for the assessment paid on production for the
preceding calendar year. The Board shall give notice of the
availability of the refund through press releases or another
means it deems appropriate.
    (c) Each person requesting a refund shall execute an
affidavit showing the amount of refund requested and
demonstrating that the affiant was the interest owner of the
production for which the refund is requested. The Board may
verify the accuracy of the request for refund.
    (d) No entity or person requesting a refund under this
Section shall be eligible to serve or have a representative
serve as a member of the Board.
(Source: P.A. 92-610, eff. 7-1-02.)
 
    (225 ILCS 728/45)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 45. Use of funds.
    (a) All interest earned on moneys received by the Board
shall be the property of the Board in the Petroleum Resources
Revolving Fund shall remain in the Fund.
    (b) The Board shall not utilize any funds collected under
Section 30 of this Act for the purpose of influencing
government action or policy, with the exception of recommending
amendments to this Act.
(Source: P.A. 90-614, eff. 7-10-98.)
 
    (30 ILCS 105/5.482 rep.)
    Section 90. The State Finance Act is amended by repealing
Section 5.482.
 
    (225 ILCS 728/25 rep.)
    Section 95. The Illinois Petroleum Education and Marketing
Act is amended by repealing Section 25.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 1/19/2007