By: Ogden S.B. No. 925
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the imposition, collection, and administration of LPG
1-2 delivery fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Effective as provided by Subsection (b) of
1-5 Section 8 of this Act, Subsection (b), Section 113.243, Natural
1-6 Resources Code, is amended to read as follows:
1-7 (b) The fund consists of money from:
1-8 (1) fees charged under this subchapter;
1-9 (2) the penalties for the late payment of the fee
1-10 charged under this subchapter;
1-11 (3) gifts, grants, or other assistance received by the
1-12 commission from any source for the purposes of this subchapter;
1-13 [and]
1-14 (4) interest earned on amounts in the fund; and
1-15 (5) amounts collected by the commission under an
1-16 agreement with another state in accordance with Section 113.246(d).
1-17 SECTION 2. Effective as provided by Subsection (c) of
1-18 Section 8 of this Act, Subsection (b), Section 113.243, Natural
1-19 Resources Code, is amended to read as follows:
1-20 (b) The fund consists of money from:
1-21 (1) fees charged under this subchapter;
1-22 (2) the penalties for the late payment of the fee
1-23 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(d);
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. Subsection (c), Section 113.2435, Natural
2-13 Resources Code, is 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
3-1 goals of achieving energy conservation and efficiency or improving
3-2 air quality in this state is furthered;
3-3 (5) a limitation on the proportion of the fund usable
3-4 for the rebate program that limits the proportion usable to not
3-5 more than 50 [25] percent of the funds available.
3-6 SECTION 4. Section 113.244, Natural Resources Code, is
3-7 amended to read as follows:
3-8 Sec. 113.244. FEE ON DELIVERY OF LPG. (a) A fee is imposed
3-9 on [the first sale of] odorized LPG delivered into any means of
3-10 conveyance to be sold and placed into commerce. Except as provided
3-11 by Subsection (e), the [as provided by this section. Each operator
3-12 of a loading rack on delivery into any cargo container shall
3-13 collect from the person who purchases the odorized LPG a] fee is in
3-14 an amount determined as follows:
3-15 (1) $7.50 for each delivery into a cargo tank having a
3-16 capacity of less than 1,500 gallons;
3-17 (2) $9 for each delivery into a cargo tank having a
3-18 capacity of 1,500 gallons or more but less than 1,800 gallons;
3-19 (3) $10 for each delivery into a cargo tank having a
3-20 capacity of 1,800 gallons or more but less than 2,000 gallons;
3-21 (4) $12.50 for each delivery into a cargo tank having
3-22 a capacity of 2,000 gallons or more but less than 2,500 gallons;
3-23 (5) $13.50 for each delivery into a cargo tank having
3-24 a capacity of 2,500 gallons or more but less than 2,700 gallons;
3-25 (6) $25 for each delivery into a cargo tank having a
4-1 capacity of 2,700 gallons or more but less than 5,000 gallons;
4-2 (7) $37.50 for each delivery into a cargo tank having
4-3 a capacity of 5,000 gallons or more but less than 8,000 gallons;
4-4 (8) $50 for each delivery into a cargo tank having a
4-5 capacity of 8,000 gallons or more but less than 12,000 gallons; and
4-6 (9) [a] $25 [fee] for each increment of 5,000 gallons
4-7 or any part of 5,000 gallons delivered into a cargo tank having a
4-8 capacity of 12,000 gallons or more.
4-9 (b) The owner of LPG at the time of odorization or at the
4-10 time of import of odorized LPG shall pay the fee based [shall be
4-11 computed] on the net amount of odorized LPG sold and placed into
4-12 commerce [delivered into a cargo tank]. The fee shall be collected
4-13 and remitted to the commission as provided by Section 113.245 by
4-14 the person who odorizes the LPG or imports odorized LPG.
4-15 (c) "Time of import" means the time of entry into this state
4-16 from another state or from outside the United States.
4-17 (d) The fee does not apply to a delivery of odorized LPG
4-18 destined for export from the United States or this state if the LPG
4-19 is in continuous movement to a destination outside the United
4-20 States or this state. As to LPG exported from this state, and
4-21 notwithstanding any other provision of this chapter, a delivery fee
4-22 may be levied and collected under this section only if required to
4-23 be levied and collected by implementation of the federal Propane
4-24 Education and Research Act of 1996 (Pub. L. No. 104-284).
4-25 (e) If the commission is party to an agreement with another
5-1 state's propane education and research program under Section
5-2 113.246(c), the fee on LPG destined for export to that state and in
5-3 continuous movement to a destination in that state shall be
5-4 assessed at the rate in effect in that state.
5-5 (f) The commission may transfer fees collected under
5-6 Subsection (e) to the agency or organization in the other state
5-7 that is party to the commission's agreement with that state.
5-8 SECTION 5. Section 113.245, Natural Resources Code, is
5-9 amended to read as follows:
5-10 Sec. 113.245. REPORT AND REMISSION OF FEES. (a) Each
5-11 person responsible for collecting and remitting a fee on a delivery
5-12 of LPG [operator of a loading rack] shall, on or before the 25th
5-13 day of the month following the end of each calendar month, file a
5-14 report with the commission and remit the amount of fees required to
5-15 be collected or paid during the preceding month.
5-16 (b) Each person responsible for collecting and remitting a
5-17 fee on a delivery of LPG [operator of a loading rack] or the
5-18 person's [operator's] representative shall prepare the report
5-19 required under Subsection (a) of this section on a form provided
5-20 or approved by the commission.
5-21 SECTION 6. Effective as provided by Subsection (b) of
5-22 Section 8 of this Act, Section 113.246, Natural Resources Code, is
5-23 amended to read as follows:
5-24 Sec. 113.246. RULES REGARDING FEES; AGREEMENTS WITH OTHER
5-25 STATES. (a) The commission shall adopt rules necessary for the
6-1 administration, collection, reporting, and payment of the fees
6-2 payable or collected under this subchapter.
6-3 (b) The rebate program provided in Section 113.2435 shall be
6-4 funded by 50 percent of the total delivery fees collected under
6-5 Section 113.244. The remainder of delivery fees collected may be
6-6 expended by the Alternative Fuels Research and Education Division
6-7 (AFRED) of the commission in the amount of 25 percent for total
6-8 administrative costs of the AFRED program and 25 percent may be
6-9 expended at the discretion of the commission.
6-10 (c) The commission may enter into an agreement with an
6-11 agency of or an organization in another state to coordinate the
6-12 administration, collection, reporting, and payment of the fees
6-13 payable or collected under this subchapter and the other state's
6-14 propane education and research program created by that state's law
6-15 or rule.
6-16 (d) An agreement executed under Subsection (c) may include
6-17 reporting, auditing, collecting, apportioning, and remitting fees
6-18 and assessments payable or collected under this subchapter, any
6-19 applicable federal law, and the other state's propane education and
6-20 research program. The commission may adopt rules necessary to
6-21 implement the agreements authorized by this section.
6-22 SECTION 7. Effective as provided by Subsection (c) of
6-23 Section 8 of this Act, Section 113.246, Natural Resources Code, is
6-24 amended to read as follows:
6-25 Sec. 113.246. RULES REGARDING FEES; AGREEMENTS WITH OTHER
7-1 STATES. (a) The commission shall adopt rules necessary for the
7-2 administration, collection, reporting, and payment of the fees
7-3 payable or collected under this subchapter and the Propane
7-4 Education and Research Act of 1996 (Pub. L. No. 104-284) or other
7-5 applicable federal law.
7-6 (b) The commission may enter into an agreement with an
7-7 agency of or an organization in another state and with the national
7-8 Propane Education and Research Council to coordinate the
7-9 administration, collection, reporting, and payment of the fees
7-10 payable or collected under the Propane Education and Research Act
7-11 of 1996 (Pub. L. No. 104-284) or other applicable federal law.
7-12 (c) The commission may enter into an agreement with an
7-13 agency of or an organization in another state to coordinate the
7-14 administration, collection, reporting, and payment of the fees
7-15 payable or collected under this subchapter and the other state's
7-16 propane education and research program created by that state's law
7-17 or rule.
7-18 (d) An agreement executed under Subsection (b) or (c) may
7-19 include reporting, auditing, collecting, apportioning, and
7-20 remitting fees and assessments payable or collected under this
7-21 subchapter, the Propane Education and Research Act of 1996 (Pub. L.
7-22 No. 104-284) or other applicable federal law, and the other state's
7-23 propane education and research program. The commission may adopt
7-24 rules necessary to implement the agreements authorized by this
7-25 section.
8-1 SECTION 8. (a) Except as otherwise provided by this
8-2 section, this Act takes effect September 1, 1997.
8-3 (b) Sections 1 and 6 of this Act take effect on September 1,
8-4 1997, unless Sections 2 and 7 of this Act take effect on that date,
8-5 in which case Sections 1 and 6 of this Act have no effect.
8-6 (c) Sections 2 and 7 of this Act take effect on the later of
8-7 September 1, 1997, or the date on which the Railroad Commission of
8-8 Texas by order acknowledges receipt and accepts a written report by
8-9 an independent auditing firm confirming that the industry referenda
8-10 required under Section 4 of the Propane Education and Research Act
8-11 of 1996 (Pub. L. No. 104-284) have been approved by producers
8-12 representing two-thirds of the total volume of propane voted in the
8-13 producer class and by retail marketers representing two-thirds of
8-14 the total volume of propane voted in the retail marketer class.
8-15 SECTION 9. The importance of this legislation and the
8-16 crowded condition of the calendars in both houses create an
8-17 emergency and an imperative public necessity that the
8-18 constitutional rule requiring bills to be read on three several
8-19 days in each house be suspended, and this rule is hereby suspended.