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.

8-20                          COMMITTEE AMENDMENT NO. 1

8-21           Amend S.B. 925 as follows:

8-22           In SECTION 3, add the following subsection (6):

8-23           (6)  that the name or seal of the commission shall not be

8-24     used on any advertising that promotes the propane water heater

8-25     rebate program.

 9-1                                                                  Moffat

 9-2                          COMMITTEE AMENDMENT NO. 2

 9-3           Amend S.B. 925 as follows:

 9-4           In SECTION 7, add the following subsection (e):

 9-5           (e)  None of the funds payable or collected under or by the

 9-6     authority of the Propane Education and Research Act of 1996 (Pub.

 9-7     L. No. 104-284), may be spent on the promotion or marketing of

 9-8     propane for use in on-the-road vehicles.

 9-9                                                                  Driver