Public Act 90-0614
HB2430 Enrolled LRB9007993DPcw
AN ACT to create the Illinois Petroleum Education and
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Petroleum Education and Marketing Act.
Section 5. Definitions. As used in this Act:
"Board" means the Illinois Petroleum Resources Board.
"Person" means an individual, group of individuals,
partnership, corporation, association, limited liability
company, cooperative, or any other entity or an employee of
"Producer" means a person who produces oil and gas or who
derives a majority of his or her oil and gas income from
"Qualified producer association" means an entity that is
organized and operating within the State and that represents
oil producers on a Statewide basis.
Section 10. Illinois Petroleum Resources Board.
(a) There is hereby created until July 1, 2002, the
Illinois Petroleum Resources Board which shall be subject to
the provisions of the Regulatory Agency 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 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 resources, and to
support research and educational activities concerning the
oil exploration and production industry.
(b) The Board shall be composed of 12 members to be
appointed 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
(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
(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.
Section 15. Board powers and duties. The Board shall
have the following powers and duties:
(1) To administer and enforce the provisions of
(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
(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
(5) To administer the Petroleum Resources Revolving
(6) To approve or disapprove the budget of the
(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 and an annual report shall be compiled and
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 industry.
(11) To accept donations, grants, contributions,
and gifts from any public or private source and deposit
them into the Petroleum Resources Revolving Fund.
(12) To keep an accurate record of all assessments
Section 20. Board meetings; appointment of Director.
(a) There shall be an annual meeting of the Board at
which the annual report and proposed budget will be
presented. The Board shall, at the call of the chairperson,
hold at least 3 other regular meetings each year. The
chairperson shall establish the time, manner, and place for
all meetings and shall provide notice of the meetings. A
majority of the members of the Board shall constitute a
quorum for the transaction of any Board business. In
addition, the Board shall determine the circumstances under
which additional meetings of the Board may be held.
(b) The Board may appoint a Director who shall carry out
the provisions of this Act. The Director shall not be one of
the appointed Board members.
Section 25. Petroleum Resources Revolving Fund. There is
hereby created in the State Treasury a special fund to be
designated the "Petroleum Resources Revolving Fund". The
Fund shall be a continuing fund, not subject to fiscal year
limitations and shall consist of all moneys received by the
Illinois Petroleum Resources Board from assessments received
and collected pursuant to Section 30 of this Act and
donations, grants, contributions, and gifts from any public
or private source. Pursuant to appropriation, the Board may
expend funds as provided for by law. Expenditures from the
Fund shall be made upon warrants issued by the State
Comptroller against claims filed as prescribed by law.
Section 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 producer, shall be remitted to the Department
of Revenue by the first purchaser on 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.
Section 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 certified by the State
(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 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.
Section 45. Use of funds.
(a) All interest earned on moneys 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.
Section 50. Application of Act. Nothing in this Act may
be construed to preempt or supersede any other program
relating to oil and gas promotion or marketing organized and
operated under the laws of the State of Illinois or the
United States. In the event of the establishment of a
national program for an assessment on oil and natural gas
production, the Board by majority vote, may elect to
designate up to a maximum of 50% of the funds collected under
this Act to the national program in lieu of an additional
assessment as may be required by the national program.
Section 70. The Regulatory Agency Sunset Act is amended
by adding Section 4.19 as follows:
(5 ILCS 80/4.19 new)
Sec. 4.19. Act repealed on January 1, 2008. The
following Act is repealed on January 1, 2008:
The Illinois Petroleum Education and Marketing Act.
Section 80. The State Finance Act is amended by adding
Section 5.480 as follows:
(30 ILCS 105/5.480 new)
Sec. 5.480. The Petroleum Resources Revolving Fund.
Section 99. Effective date. This Act takes effect July