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(e);

 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 (15 U.S.C. Section 6401 et seq.) or other

2-11     applicable 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; and

 3-6                 (6)  that the name or seal of the commission shall not

 3-7     be used on any advertising that promotes the propane water heater

 3-8     rebate program.

 3-9           SECTION 4.  Section 113.244, Natural Resources Code, is

3-10     amended to read as follows:

3-11           Sec. 113.244.  FEE ON DELIVERY OF LPG.  (a)  A fee is imposed

3-12     on [the first sale of] odorized LPG delivered into any means of

3-13     conveyance to be sold and placed into commerce.  Except as provided

3-14     by Subsection (e), the [as provided by this section.  Each operator

3-15     of a loading rack on delivery into any cargo container shall

3-16     collect from the person who purchases the odorized LPG a] fee is in

3-17     an amount determined as follows:

3-18                 (1)  $7.50 for each delivery into a cargo tank having a

3-19     capacity of less than 1,500 gallons;

3-20                 (2)  $9 for each delivery into a cargo tank having a

3-21     capacity of 1,500 gallons or more but less than 1,800 gallons;

3-22                 (3)  $10 for each delivery into a cargo tank having a

3-23     capacity of 1,800 gallons or more but less than 2,000 gallons;

3-24                 (4)  $12.50 for each delivery into a cargo tank having

3-25     a capacity of 2,000 gallons or more but less than 2,500 gallons;

 4-1                 (5)  $13.50 for each delivery into a cargo tank having

 4-2     a capacity of 2,500 gallons or more but less than 2,700 gallons;

 4-3                 (6)  $25 for each delivery into a cargo tank having a

 4-4     capacity of 2,700 gallons or more but less than 5,000 gallons;

 4-5                 (7)  $37.50 for each delivery into a cargo tank having

 4-6     a capacity of 5,000 gallons or more but less than 8,000 gallons;

 4-7                 (8)  $50 for each delivery into a cargo tank having a

 4-8     capacity of 8,000 gallons or more but less than 12,000 gallons; and

 4-9                 (9)  [a] $25 [fee] for each increment of 5,000 gallons

4-10     or any part of 5,000 gallons delivered into a cargo tank having a

4-11     capacity of 12,000 gallons or more.

4-12           (b)  The owner of LPG at the time of odorization or at the

4-13     time of import of odorized LPG shall pay the fee based [shall be

4-14     computed] on the net amount of odorized LPG sold and placed into

4-15     commerce [delivered into a cargo tank].  The fee shall be collected

4-16     and remitted to the commission as provided by Section 113.245 by

4-17     the person who odorizes the LPG or imports odorized LPG.

4-18           (c)  "Time of import" means the time of entry into this state

4-19     from another state or from outside the United States.

4-20           (d)  The fee does not apply to a delivery of odorized LPG

4-21     destined for export from the United States or this state if the LPG

4-22     is in continuous movement to a destination outside the United

4-23     States or this state.  As to LPG exported from this state, and

4-24     notwithstanding any other provision of this chapter, a delivery fee

4-25     may be levied and collected under this section only if required to

 5-1     be levied and collected by implementation of the Propane Education

 5-2     and Research Act of 1996 (15 U.S.C. Section 6401 et seq.).

 5-3           (e)  If the commission is party to an agreement with another

 5-4     state's propane education and research program under Section

 5-5     113.246(c), the fee on LPG destined for export to that state and in

 5-6     continuous movement to a destination in that state shall be

 5-7     assessed at the rate in effect in that state.

 5-8           (f)  The commission may transfer fees collected under

 5-9     Subsection (e) to the agency or organization in the other state

5-10     that is party to the commission's agreement with that state.

5-11           SECTION 5.  Section 113.245, Natural Resources Code, is

5-12     amended to read as follows:

5-13           Sec. 113.245.  REPORT AND REMISSION OF FEES.  (a)  Each

5-14     person responsible for collecting and remitting a fee on a delivery

5-15     of LPG [operator of a loading rack] shall, on or before the 25th

5-16     day of the month following the end of each calendar month, file a

5-17     report with the commission and remit the amount of fees required to

5-18     be collected or paid during the preceding month.

5-19           (b)  Each person responsible for collecting and remitting a

5-20     fee on a delivery of LPG [operator of a loading rack] or the

5-21     person's [operator's] representative shall prepare the report

5-22     required under Subsection (a)  of this section on a form provided

5-23     or approved by the commission.

5-24           SECTION 6.  Effective as provided by Subsection (b) of

5-25     Section 8 of this Act, Section 113.246, Natural Resources Code, is

 6-1     amended to read as follows:

 6-2           Sec. 113.246.  RULES REGARDING FEES; AGREEMENTS WITH OTHER

 6-3     STATES.  (a)  The commission shall adopt rules necessary for the

 6-4     administration, collection, reporting, and payment of the fees

 6-5     payable or collected under this subchapter.

 6-6           (b)  The rebate program provided in Section 113.2435 shall be

 6-7     funded by 50 percent of the total delivery fees collected under

 6-8     Section 113.244.  Administrative costs for the Alternative Fuels

 6-9     Research and Education Division program may not exceed 25 percent

6-10     of the total delivery fees collected.  The remainder of the total

6-11     delivery fees collected may be expended at the discretion of the

6-12     commission.

6-13           (c)  The commission may enter into an agreement with an

6-14     agency of or an organization in another state to coordinate the

6-15     administration, collection, reporting, and payment of the fees

6-16     payable or collected under this subchapter and the other state's

6-17     propane education and research program created by that state's law

6-18     or rule.

6-19           (d)  An agreement executed under Subsection (c) may include

6-20     reporting, auditing, collecting, apportioning, and remitting fees

6-21     and assessments payable or collected under this subchapter, any

6-22     applicable federal law, and the other state's propane education and

6-23     research program.  The commission may adopt rules necessary to

6-24     implement the agreements authorized by this section.

6-25           SECTION 7.  Effective as provided by Subsection (c) of

 7-1     Section 8 of this Act, Section 113.246, Natural Resources Code, is

 7-2     amended to read as follows:

 7-3           Sec. 113.246.  RULES REGARDING FEES; AGREEMENTS WITH OTHER

 7-4     STATES.  (a)  The commission shall adopt rules necessary for the

 7-5     administration, collection, reporting, and payment of the fees

 7-6     payable or collected under this subchapter and the Propane

 7-7     Education and Research Act of 1996 (15 U.S.C. Section 6401 et seq.)

 7-8     or other applicable federal law.

 7-9           (b)  The rebate program provided in Section 113.2435 shall be

7-10     funded by 50 percent of the total delivery fees collected under

7-11     Section 113.244.  Administrative costs for the Alternative Fuels

7-12     Research and Education Division program may not exceed 25 percent

7-13     of the total delivery fees collected.  The remainder of the total

7-14     delivery fees collected may be expended at the discretion of the

7-15     commission.

7-16           (c)  The commission may enter into an agreement with an

7-17     agency of or an organization in another state and with the national

7-18     Propane Education and Research Council to coordinate the

7-19     administration, collection, reporting, and payment of the fees

7-20     payable or collected under the Propane Education and Research Act

7-21     of 1996 (15 U.S.C. Section 6401 et seq.) or other  applicable

7-22     federal law.

7-23           (d)  The commission may enter into an agreement with an

7-24     agency of or an organization in another state to coordinate the

7-25     administration, collection, reporting, and payment of the fees

 8-1     payable or collected under this subchapter and the other state's

 8-2     propane education and research program created by that state's law

 8-3     or rule.

 8-4           (e)  An agreement executed under Subsection (c) or (d) may

 8-5     include reporting, auditing, collecting, apportioning, and

 8-6     remitting fees and assessments payable or collected under this

 8-7     subchapter, the Propane Education and Research Act of 1996 (15

 8-8     U.S.C. Section 6401 et seq.) or other applicable federal law, and

 8-9     the other state's propane education and research program.  The

8-10     commission may adopt rules necessary to implement the agreements

8-11     authorized by this section.

8-12           (f)  None of the funds payable or collected under or by the

8-13     authority of the Propane Education and Research Act of 1996 (15

8-14     U.S.C. Section 6401 et seq.) may be spent on the promotion or

8-15     marketing of propane for use in on-the-road vehicles.

8-16           SECTION 8.  (a)  Except as otherwise provided by this

8-17     section, this Act takes effect September 1, 1997.

8-18           (b)  Sections 1 and 6 of this Act take effect on September 1,

8-19     1997, unless Sections 2 and 7 of this Act take effect on that date,

8-20     in which case Sections 1 and 6 of this Act have no effect.

8-21           (c)  Sections 2 and 7 of this Act take effect on the later of

8-22     September 1, 1997, or the date on which the Railroad Commission of

8-23     Texas by order acknowledges receipt and accepts a written report by

8-24     an independent auditing firm confirming that the industry referenda

8-25     required under Section 4 of the Propane Education and Research Act

 9-1     of 1996 (15 U.S.C. Section 6403) have been approved by producers

 9-2     representing two-thirds of the total volume of propane voted in the

 9-3     producer class and by retail marketers representing two-thirds of

 9-4     the total volume of propane voted in the retail marketer class.

 9-5           SECTION 9.  The importance of this legislation and the

 9-6     crowded condition of the calendars in both houses create an

 9-7     emergency and an imperative public necessity that the

 9-8     constitutional rule requiring bills to be read on three several

 9-9     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 925 passed the Senate on

         April 11, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendments on May 16, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 925 passed the House, with

         amendments, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor