Public Act 90-0614 of the 90th General Assembly

State of Illinois
Public Acts
90th General Assembly

[ Home ] [ Public Acts ] [ ILCS ] [ Search ] [ Bottom ]

Public Act 90-0614

HB2430 Enrolled                                LRB9007993DPcw

    AN ACT to create the  Illinois  Petroleum  Education  and
Marketing Act.

    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
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 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
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.

    Section  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
         (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
1, 1998.

[ Top ]