75R11664 E
By Hawley H.B. No. 1958
Substitute the following for H.B. No. 1958:
By Merritt C.S.H.B. No. 1958
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition, collection, and administration of LPG
1-3 delivery fees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Effective as provided by Section 8(b) of this
1-6 Act, Section 113.243(b), Natural Resources Code, is amended to read
1-7 as follows:
1-8 (b) The fund consists of money from:
1-9 (1) fees charged under this subchapter;
1-10 (2) the penalties for the late payment of the fee
1-11 charged under this subchapter;
1-12 (3) gifts, grants, or other assistance received by the
1-13 commission from any source for the purposes of this subchapter;
1-14 [and]
1-15 (4) interest earned on amounts in the fund; and
1-16 (5) amounts collected by the commission under an
1-17 agreement with another state in accordance with Section 113.246(c).
1-18 SECTION 2. Effective as provided by Section 8(c) of this
1-19 Act, Section 113.243(b), Natural Resources Code, is amended to read
1-20 as follows:
1-21 (b) The fund consists of money from:
1-22 (1) fees charged under this subchapter;
1-23 (2) the penalties for the late payment of the fee
1-24 charged under this subchapter;
2-1 (3) gifts, grants, or other assistance received by the
2-2 commission from any source for the purposes of this subchapter;
2-3 [and]
2-4 (4) interest earned on amounts in the fund;
2-5 (5) amounts collected by the commission under an
2-6 agreement with another state in accordance with Section 113.246(c);
2-7 and
2-8 (6) assessments, rebates on assessments, and other
2-9 money collected by the commission under the Propane Education and
2-10 Research Act of 1996 (Pub. L. No. 104-284) or other applicable
2-11 federal law.
2-12 SECTION 3. Section 113.2435(c), Natural Resources Code, is
2-13 amended to read as follows:
2-14 (c) Rules adopted and promulgated by the commission under
2-15 this section shall specify the following:
2-16 (1) rebate levels for various types of equipment such
2-17 that the rebates achieve an amount of public good comparable to the
2-18 rebate amount;
2-19 (2) a condition that the recipient agree to practice
2-20 environmentally sound operating principles;
2-21 (3) a condition that the rebate recipient agree to not
2-22 modify the equipment for a specified number of years as set by the
2-23 commission;
2-24 (4) any other conditions or restrictions determined by
2-25 the commission that would help ensure that either of the desired
2-26 goals of achieving energy conservation and efficiency or improving
2-27 air quality in this state is furthered;
3-1 (5) a limitation on the proportion of the fund usable
3-2 for the rebate program that limits the proportion usable to not
3-3 more than 50 [25] percent of the funds available.
3-4 SECTION 4. Section 113.244, Natural Resources Code, is
3-5 amended to read as follows:
3-6 Sec. 113.244. FEE ON DELIVERY OF LPG. (a) A fee is imposed
3-7 on [the first sale of] odorized LPG delivered into any means of
3-8 conveyance to be sold and placed into commerce. Except as provided
3-9 by Subsection (e), the [as provided by this section. Each operator
3-10 of a loading rack on delivery into any cargo container shall
3-11 collect from the person who purchases the odorized LPG a] fee is in
3-12 an amount determined as follows:
3-13 (1) $7.50 for each delivery into a cargo tank having a
3-14 capacity of less than 1,500 gallons;
3-15 (2) $9 for each delivery into a cargo tank having a
3-16 capacity of 1,500 gallons or more but less than 1,800 gallons;
3-17 (3) $10 for each delivery into a cargo tank having a
3-18 capacity of 1,800 gallons or more but less than 2,000 gallons;
3-19 (4) $12.50 for each delivery into a cargo tank having
3-20 a capacity of 2,000 gallons or more but less than 2,500 gallons;
3-21 (5) $13.50 for each delivery into a cargo tank having
3-22 a capacity of 2,500 gallons or more but less than 2,700 gallons;
3-23 (6) $25 for each delivery into a cargo tank having a
3-24 capacity of 2,700 gallons or more but less than 5,000 gallons;
3-25 (7) $37.50 for each delivery into a cargo tank having
3-26 a capacity of 5,000 gallons or more but less than 8,000 gallons;
3-27 (8) $50 for each delivery into a cargo tank having a
4-1 capacity of 8,000 gallons or more but less than 12,000 gallons; and
4-2 (9) [a] $25 [fee] for each increment of 5,000 gallons
4-3 or any part of 5,000 gallons delivered into a cargo tank having a
4-4 capacity of 12,000 gallons or more.
4-5 (b) The owner of LPG at the time of odorization or at the
4-6 time of import of odorized LPG shall pay the fee based on the net
4-7 amount of odorized LPG sold and placed into commerce. The fee
4-8 shall be collected and remitted to the commission as provided by
4-9 Section 113.245 by the person who odorizes the LPG or imports
4-10 odorized LPG [The fee shall be computed on the net amount of
4-11 odorized LPG delivered into a cargo tank].
4-12 (c) "Time of import" means the time of entry into this state
4-13 from another state or from outside the United States.
4-14 (d) The fee does not apply to a delivery of odorized LPG
4-15 destined for export from the United States or this state if the LPG
4-16 is in continuous movement to a destination outside the United
4-17 States or this state. As to LPG exported from this state, and
4-18 notwithstanding any other provision of this chapter, a delivery fee
4-19 may be levied and collected under this section only if required to
4-20 be levied and collected by implementation of the Federal Propane
4-21 Education and Research Act of 1996.
4-22 (e) If the commission is party to an agreement with another
4-23 state's propane education and research program under Section
4-24 113.246(b), the fee on LPG destined for export to that state and in
4-25 continuous movement to a destination in that state shall be
4-26 assessed at the rate in effect in that state.
4-27 (f) The commission may transfer fees collected under
5-1 Subsection (e) to the agency or organization in the other state
5-2 that is party to the commission's agreement with that state.
5-3 SECTION 5. Section 113.245, Natural Resources Code, is
5-4 amended to read as follows:
5-5 Sec. 113.245. REPORT AND REMISSION OF FEES. (a) Each
5-6 person responsible for collecting and remitting a fee on a delivery
5-7 of LPG [operator of a loading rack] shall, on or before the 25th
5-8 day of the month following the end of each calendar month, file a
5-9 report with the commission and remit the amount of fees required to
5-10 be collected or paid during the preceding month.
5-11 (b) Each person responsible for collecting and remitting a
5-12 fee on a delivery of LPG [operator of a loading rack] or the
5-13 person's [operator's] representative shall prepare the report
5-14 required under Subsection (a) of this section on a form provided
5-15 or approved by the commission.
5-16 SECTION 6. Effective as provided by Section 8(b) of this
5-17 Act, Section 113.246, Natural Resources Code, is amended to read as
5-18 follows:
5-19 Sec. 113.246. RULES REGARDING FEES; AGREEMENTS WITH OTHER
5-20 STATES. (a) The commission shall adopt rules necessary for the
5-21 administration, collection, reporting, and payment of the fees
5-22 payable or collected under this subchapter.
5-23 (b) The rebate program provided in Section 113.2435 shall be
5-24 funded by 50 percent of the total delivery fees collected under
5-25 Section 113.244. The remainder of delivery fees collected may be
5-26 expended by the Alternative Fuels Research and Education Division
5-27 (AFRED) of the commission in the amount of 25 percent for total
6-1 administrative costs of the AFRED program and 25 percent may be
6-2 expended at the discretion of the commissioners.
6-3 (c) The commission may enter into an agreement with an
6-4 agency of or an organization in another state to coordinate the
6-5 administration, collection, reporting, and payment of the fees
6-6 payable or collected under this subchapter and the other state's
6-7 propane education and research program created by that state's law
6-8 or rule.
6-9 (d) An agreement executed under Subsection (b) may include
6-10 reporting, auditing, collecting, apportioning, and remitting fees
6-11 and assessments payable or collected under this subchapter, any
6-12 applicable federal law, and the other state's propane education and
6-13 research program. The commission may adopt rules necessary to
6-14 implement the agreements authorized by this section.
6-15 SECTION 7. Effective as provided by Section 8(c) of this
6-16 Act, Section 113.246, Natural Resources Code, is amended to read as
6-17 follows:
6-18 Sec. 113.246. RULES REGARDING FEES; AGREEMENTS WITH OTHER
6-19 STATES. (a) The commission shall adopt rules necessary for the
6-20 administration, collection, reporting, and payment of the fees
6-21 payable or collected under this subchapter and the Propane
6-22 Education and Research Act of 1996 (Pub. L. No. 104-284) or other
6-23 applicable federal law.
6-24 (b) The commission may enter into an agreement with an
6-25 agency of or an organization in another state and with the national
6-26 Propane Education and Research Council to coordinate the
6-27 administration, collection, reporting, and payment of the fees
7-1 payable or collected under the Propane Education and Research Act
7-2 of 1996 (Pub. L. No. 104-284) or other applicable federal law.
7-3 (c) The commission may enter into an agreement with an
7-4 agency of or an organization in another state to coordinate the
7-5 administration, collection, reporting, and payment of the fees
7-6 payable or collected under this subchapter and the other state's
7-7 propane education and research program created by that state's law
7-8 or rule.
7-9 (d) An agreement executed under Subsection (b) or (c) may
7-10 include reporting, auditing, collecting, apportioning, and
7-11 remitting fees and assessments payable or collected under this
7-12 subchapter, the Propane Education and Research Act of 1996 (Pub. L.
7-13 No. 104-284) or other applicable federal law, and the other state's
7-14 propane education and research program. The commission may adopt
7-15 rules necessary to implement the agreements authorized by this
7-16 section.
7-17 SECTION 8. (a) Except as otherwise provided by this
7-18 section, this Act takes effect September 1, 1997.
7-19 (b) Sections 1 and 6 of this Act take effect on September 1,
7-20 1997, unless Sections 2 and 7 of this Act take effect on that date,
7-21 in which case Sections 1 and 6 of this Act have no effect.
7-22 (c) Sections 2 and 7 of this Act take effect on the later of
7-23 September 1, 1997, or the date on which the Railroad Commission of
7-24 Texas by order acknowledges receipt and accepts a written report by
7-25 an independent auditing firm confirming that the industry referenda
7-26 required under Section 4 of the Propane Education and Research Act
7-27 of 1996 (Pub. L. No. 104-284) have been approved by producers
8-1 representing two-thirds of the total volume of propane voted in the
8-2 producer class and by retail marketers representing two-thirds of
8-3 the total volume of propane voted in the retail marketer class.
8-4 SECTION 9. The importance of this legislation and the
8-5 crowded condition of the calendars in both houses create an
8-6 emergency and an imperative public necessity that the
8-7 constitutional rule requiring bills to be read on three several
8-8 days in each house be suspended, and this rule is hereby suspended.