Public Act 90-0305 of the 90th General Assembly
Public Act 90-0305
SB151 Enrolled LRB9000670SMdvA
AN ACT regarding assessments on the propane industry.
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 Propane Education and Research Act of 1997.
Section 5. Definitions. In this Act, unless the context
otherwise requires:
"Council" means a Propane Education and Research Council
created pursuant to Section 10 of this Act;
"Director" means Director of Agriculture or his or her
designee;
"Education" means any action to provide information
regarding propane, propane equipment, mechanical and
technical practices, and propane uses to consumers and
members of the propane industry;
"Industry" means those persons involved in the
production, transportation, and sale of propane, and the
manufacture and distribution of propane utilization
equipment;
"Industry trade association" means an organization exempt
from tax, under Section 501(c)(3), or (6) of the Internal
Revenue Code of 1986, representing the propane industry;
"Odorized propane" means propane which has an odorant
added to it;
"Producer" means the owner of propane at the time it is
recovered at a gas processing plant or refinery; irrespective
of the state where production occurs;
"Propane" means a hydrocarbon whose chemical composition
is predominately C3H8, whether recovered from natural gas or
crude oil, and includes liquified petroleum gases and
mixtures thereof;
"Public member" means a member of the Council other than
a representative of producers or retail marketers
representing significant users of propane, public safety
officials, state regulatory officials, or other groups
knowledgeable about propane;
"Qualified industry organization" means the Illinois
Propane Gas Association, the National Propane Gas
Association, the Gas Processors Association, a successor
association of these associations, or any other propane
industry organization;
"Research" means any type of study, investigation or
other activities designed to advance the image, desirability,
usage, marketability, efficiency, and safety of propane and
to further the development of such information;
"Retail marketer" means a person engaged primarily in the
sale of odorized propane to the ultimate consumer or to
retail propane dispensers; and
"Retail propane dispenser" means a person who sells
odorized propane to the ultimate consumer but is not engaged
primarily in the business of such sales.
Section 10. Referendum; creation and termination of a
program.
(a) Qualified industry organizations shall conduct at
their own expense, a referendum among producers and retail
marketers for the creation of an Illinois Propane Education
and Research Council. The Council, if established, shall
reimburse the qualified industry organizations for the cost
of the referendum accounting and documentation. The
referendum shall be conducted by an independent auditing firm
agreed to by the qualified industry organizations. The
results, as certified by an independent auditing firm, shall
be submitted to the Director within 30 days of certification.
Voting rights in the referendum shall be based on the volume
of propane produced or odorized propane sold in the previous
calendar year. Upon approval of those persons representing
two-thirds of the total volume of propane voted in the retail
marketer class and two-thirds of all propane voted in the
producer class, the Council shall be established, and shall
be authorized to levy an assessment on odorized propane in
accordance with Section 20. All persons voting in the
referendum shall certify to the independent auditing firm the
volume of propane represented by their vote.
(b) On the Council's own initiative, or on petition to
the Council by producers and retail marketers representing
35% of the volume of propane in each class, the Council
shall, at its own expense, hold a referendum to be conducted
by an independent auditing firm selected by the Council, to
determine whether the industry favors termination or
suspension of the Council. Termination or suspension shall
not take effect unless it is approved by persons representing
more than one-half of the total volume of odorized propane in
the retail marketer class and more than one-half the total
volume of propane in the producer class.
Section 15. Illinois Propane Education and Research
Council.
(a) The qualified industry organizations shall select
all retail marketers, public, and producer members of the
Council. The producer organizations shall select the
producer members of the Council, the retail marketer
organizations shall select retail marketer members, and all
qualified industry organizations shall jointly select the
public members. Vacancies in the unfinished terms of Council
members shall be filled in the same manner as were the
original appointments.
(b) In selecting members of the Council, the qualified
industry organizations shall give due regard to selecting a
Council that is representative of the industry, including
representation of:
(1) gas processors and oil refiners among
producers;
(2) interstate and intrastate operators among
retail marketers;
(3) large and small companies among producers and
retail marketers, including agricultural cooperatives;
and
(4) diverse geographic regions of the State.
(c) The Council shall consist of 12 members, with 5
members representing retail marketers, 5 members representing
producers, and 2 public members. Other than the public
members, Council members shall be full-time employees or
owners of businesses in the industry or representatives of
agricultural cooperatives. No employee of a qualified
industry organization shall serve as a member of the Council,
and no member of the Council may serve concurrently as an
officer of the board of directors of a qualified industry
organization or other trade association. Only one person at
a time from any company or its affiliate may serve on the
Council. The Director may serve as an ex-officio non-voting
member of the Council.
(d) Council members shall receive no compensation for
their services, nor shall Council members be reimbursed for
expenses relating to their service, except that public
members, upon request, may be reimbursed for reasonable
expenses directly related to their participation in Council
meetings.
(e) Council members shall serve terms of 3 years and may
not serve more than 2 full consecutive terms. Members
filling unexpired terms may serve not more than a total of 7
consecutive years. Former members of the Council may be
returned to the Council if they have not been members for a
period of 2 years. Initial appointments to the council shall
be for terms of 1, 2, and 3 years staggered to provide for
the selection of 4 members each year. The Council shall
notify the Director of the name, address, and propane-related
affiliation, if any, of a Council member within 30 days after
the appointment of the member to the Council.
(f) The Council shall develop programs and projects and
enter into contracts or agreements for implementing this Act,
including programs to enhance consumer and employee safety
and training, to provide for research and development of
clean and efficient propane utilization equipment, to inform
and educate the public about safety and other issues
associated with the use of propane, and to provide for the
payment of the costs thereof with funds collected pursuant to
this Act. The Council shall coordinate its activities with
industry trade associations and others as appropriate to
provide efficient delivery of services and to avoid
unnecessary duplication of activities.
(g) Issues related to research and development, safety,
education, and training shall be given priority by the
Council in the development of its programs and projects.
(h) The Council shall select from among its members a
Chairperson and other officers as necessary, may establish
committees and subcommittees of the Council, and shall adopt
rules and bylaws for the conduct of business and the
implementation of this Act. The Council shall establish
procedures for the solicitation of industry comment and
recommendations on any significant plans, programs, and
projects to be funded by the Council. The Council may
establish advisory committees of persons other than Council
members.
(i) At the beginning of each fiscal period, the Council
shall prepare a budget plan for the next fiscal period,
including the probable cost of all programs, projects, and
contracts and a recommended rate of assessment sufficient to
cover such costs. The Council shall submit the proposed
budget to the Director for review and comment. The Director
may recommend programs and activities considered appropriate.
(j) The Council shall keep minutes, books, and records
that clearly reflect all of the acts and transactions of the
Council and make public such information. The books of the
Council shall be audited by a certified public accountant at
least once each fiscal year and at such other times as the
Council may designate. The expense of the audit shall be the
responsibility of the Council. Copies of such audit shall be
provided to all members of the Council, all qualified
industry organizations, and to other members of the industry
upon request.
Section 20. Assessments.
(a) The Council shall set the initial assessment at no
greater than 1/10 of 1 cent per gallon of odorized propane.
Thereafter, annual assessments shall be sufficient to cover
the costs of plans and programs developed by the Council.
The assessment shall not be greater than 1/2 cent per gallon
of odorized propane, unless approved by the majority of those
voting in a referendum in both the producer and retail
marketer class. In no case may the assessment be raised by
more than 1/10 of 1 cent per gallon of odorized propane
annually.
(b) The owner of odorized propane at the time of
odorization, or the time of import of odorized propane shall
make the assessment based on the volume of odorized propane
sold and placed into commerce. The assessment, when made,
shall be listed as a separate line item on the bill labeled
"Illinois Propane Education and Research Assessment".
Assessments collected from purchasers of propane are payable
to the Council on a monthly basis by the 25th of the month
following the month of collection. If payment is not made to
the Council by the due date under this subsection, an
interest penalty of 1% of any amount unpaid shall be added
for each month or fraction of a month after the due date,
until final payment is made.
(c) The Council may establish an alternative means of
collecting the assessment if another means is found to be
more efficient and effective. The Council may establish a
late payment charge and rate of interest to be imposed on any
person who fails to remit or pay to the Council any amount
due under this Act.
(d) Pending disbursement pursuant to a program, plan, or
project, the Council shall invest funds collected through
assessments, and any other funds received by the Council,
only in obligations of the United States or any agency
thereof, in general obligations of any State or political
subdivision thereof, in any interest-bearing account or
certificate of deposit of a bank that is a member of the
Federal Reserve System, or in obligations fully guaranteed as
to principal and interest by the United States.
Section 25. Refunds. A purchaser of propane who has an
assessment added as a line item to the sale price may, by
application in writing to the Council, secure a refund in the
amount added. The refund shall be payable when the
application has been made to the Council within 60 days after
the assessment. Interest shall be allowed and paid at the
rate of 6% per annum upon the total amount of such assessment
imposed by this Act, except that if any such assessment is
refunded within 90 days after an application for refund has
been made within the required 60 days after assessment or
within 90 days after the seller of the propane remits the
assessments collected to the Council, whichever is later, no
interest shall be allowed on such assessment. Each
application for refund by a purchaser of propane shall have
attached thereto proof of assessment charged. A purchaser who
obtains a refund is not eligible for any benefits provided
under the Council's programs.
Section 30. Compliance. The circuit court is vested
with the jurisdiction specifically to enforce this Act, and
prevent or restrain any person from violating any provisions
of this Act. A successful action for compliance under this
Section may also require payment by the defendant of the
costs incurred by the Council in bringing the action.
Section 35. Lobbying restrictions. No funds collected
by the Council shall be used in any manner for influencing
legislation or elections, except that the Council may
recommend to the Director changes in this Act or other
statutes that would further the purpose of this Act.
Section 40. Pricing. In all cases, the price of propane
shall be determined by market forces. Consistent with the
antitrust laws, the Council may take no action, nor may any
provision of this Act be interpreted as establishing an
agreement to pass along to consumers the cost of the
assessment provided for in Section 20.
Section 45. Relation to other programs. Nothing in this
Act may be construed to preempt or supersede any other
program relating to propane education and research organized
and operated under the laws of the State of Illinois.