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