1-1     By:  Ogden                                             S.B. No. 925

 1-2           (In the Senate - Filed March 4, 1997; March 6, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 4, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 0; April 4, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 925                    By:  Ogden

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the imposition, collection, and administration of LPG

1-11     delivery fees.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Effective as provided by Subsection (b) of

1-14     Section 8 of this Act, Subsection (b), Section 113.243, Natural

1-15     Resources Code, is amended to read as follows:

1-16           (b)  The fund consists of money from:

1-17                 (1)  fees charged under this subchapter;

1-18                 (2)  the penalties for the late payment of the fee

1-19     charged under this subchapter;

1-20                 (3)  gifts, grants, or other assistance received by the

1-21     commission from any source for the purposes of this subchapter;

1-22     [and]

1-23                 (4)  interest earned on amounts in the fund; and

1-24                 (5)  amounts collected by the commission under an

1-25     agreement with another state in accordance with Section 113.246(c).

1-26           SECTION 2.  Effective as provided by Subsection (c) of

1-27     Section 8 of this Act, Subsection (b), Section 113.243, Natural

1-28     Resources Code, is amended to read as follows:

1-29           (b)  The fund consists of money from:

1-30                 (1)  fees charged under this subchapter;

1-31                 (2)  the penalties for the late payment of the fee

1-32     charged under this subchapter;

1-33                 (3)  gifts, grants, or other assistance received by the

1-34     commission from any source for the purposes of this subchapter;

1-35     [and]

1-36                 (4)  interest earned on amounts in the fund;

1-37                 (5)  amounts collected by the commission under an

1-38     agreement with another state in accordance with Section 113.246(c);

1-39     and

1-40                 (6)  assessments, rebates on assessments, and other

1-41     money collected by the commission under the Propane Education and

1-42     Research Act of 1996 (Pub. L. No. 104-284) or other applicable

1-43     federal law.

1-44           SECTION 3.  Subsection (c), Section 113.2435, Natural

1-45     Resources Code, is amended to read as follows:

1-46           (c)  Rules adopted and promulgated by the commission under

1-47     this section shall specify the following:

1-48                 (1)  rebate levels for various types of equipment such

1-49     that the rebates achieve an amount of public good comparable to the

1-50     rebate amount;

1-51                 (2)  a condition that the recipient agree to practice

1-52     environmentally sound operating principles;

1-53                 (3)  a condition that the rebate recipient agree to not

1-54     modify the equipment for a specified number of years as set by the

1-55     commission;

1-56                 (4)  any other conditions or restrictions determined by

1-57     the commission that would help ensure that either of the desired

1-58     goals of achieving energy conservation and efficiency or improving

1-59     air quality in this state is furthered;

1-60                 (5)  a limitation on the proportion of the fund usable

1-61     for the rebate program that limits the proportion usable to not

1-62     more than 50 [25] percent of the funds available.

1-63           SECTION 4.  Section 113.244, Natural Resources Code, is

1-64     amended to read as follows:

 2-1           Sec. 113.244.  FEE ON DELIVERY OF LPG.  (a)  A fee is imposed

 2-2     on [the first sale of] odorized LPG delivered into any means of

 2-3     conveyance to be sold and placed into commerce.  Except as provided

 2-4     by Subsection (e), the [as provided by this section.  Each operator

 2-5     of a loading rack on delivery into any cargo container shall

 2-6     collect from the person who purchases the odorized LPG a] fee is in

 2-7     an amount determined as follows:

 2-8                 (1)  $7.50 for each delivery [into a cargo tank having

 2-9     a capacity] of less than 1,500 gallons;

2-10                 (2)  $9 for each delivery [into a cargo tank having a

2-11     capacity] of 1,500 gallons or more but less than 1,800 gallons;

2-12                 (3)  $10 for each delivery [into a cargo tank having a

2-13     capacity] of 1,800 gallons or more but less than 2,000 gallons;

2-14                 (4)  $12.50 for each delivery [into a cargo tank having

2-15     a capacity] of 2,000 gallons or more but less than 2,500 gallons;

2-16                 (5)  $13.50 for each delivery [into a cargo tank having

2-17     a capacity] of 2,500 gallons or more but less than 2,700 gallons;

2-18                 (6)  $25 for each delivery [into a cargo tank having a

2-19     capacity] of 2,700 gallons or more but less than 5,000 gallons;

2-20                 (7)  $37.50 for each delivery [into a cargo tank having

2-21     a capacity] of 5,000 gallons or more but less than 8,000 gallons;

2-22                 (8)  $50 for each delivery [into a cargo tank having a

2-23     capacity] of 8,000 gallons or more but less than 12,000 gallons;

2-24     and

2-25                 (9)  [a] $25 [fee] for each increment of 5,000 gallons

2-26     or any part of 5,000 gallons included in a delivery [delivered into

2-27     a cargo tank having a capacity] of 12,000 gallons or more.

2-28           (b)  The owner of LPG at the time of odorization or at the

2-29     time of import of odorized LPG shall pay the fee based [shall be

2-30     computed] on the net amount of odorized LPG sold and placed into

2-31     commerce [delivered into a cargo tank].  The fee shall be collected

2-32     and remitted to the commission as provided by Section 113.245 by

2-33     the person who odorizes the LPG or imports odorized LPG.

2-34           (c)  "Time of import" means the time of entry into this state

2-35     from another state or from outside the United States.

2-36           (d)  The fee does not apply to a delivery of odorized LPG

2-37     destined for export from the United States [this state] if the LPG

2-38     is in continuous movement to a destination outside the United

2-39     States [this state].

2-40           (e)  If the commission is party to an agreement with another

2-41     state's propane education and research program under Section

2-42     113.246(b), the fee on LPG destined for export to that state and in

2-43     continuous movement to a destination in that state shall be

2-44     assessed at the rate in effect in that state.

2-45           (f)  The commission may transfer fees collected under

2-46     Subsection (e) to the agency or organization in the other state

2-47     that is party to the commission's agreement with that state.

2-48           SECTION 5.  Section 113.245, Natural Resources Code, is

2-49     amended to read as follows:

2-50           Sec. 113.245.  REPORT AND REMISSION OF FEES.  (a)  Each

2-51     person responsible for collecting and remitting a fee on a delivery

2-52     of LPG [operator of a loading rack] shall, on or before the 25th

2-53     day of the month following the end of each calendar month, file a

2-54     report with the commission and remit the amount of fees required to

2-55     be collected or paid during the preceding month.

2-56           (b)  Each person responsible for collecting and remitting a

2-57     fee on a delivery of LPG [operator of a loading rack] or the

2-58     person's [operator's] representative shall prepare the report

2-59     required under Subsection (a)  of this section on a form provided

2-60     or approved by the commission.

2-61           SECTION 6.  Effective as provided by Subsection (b) of

2-62     Section 8 of this Act, Section 113.246, Natural Resources Code, is

2-63     amended to read as follows:

2-64           Sec. 113.246.  RULES REGARDING FEES; AGREEMENTS WITH OTHER

2-65     STATES.  (a)  The commission shall adopt rules necessary for the

2-66     administration, collection, reporting, and payment of the fees

2-67     payable or collected under this subchapter.

2-68           (b)  The commission may enter into an agreement with an

2-69     agency of or an organization in another state to coordinate the

 3-1     administration, collection, reporting, and payment of the fees

 3-2     payable or collected under this subchapter and the other state's

 3-3     propane education and research program created by that state's law

 3-4     or rule.

 3-5           (c)  An agreement executed under Subsection (b) may include

 3-6     reporting, auditing, collecting, apportioning, and remitting fees

 3-7     and assessments payable or collected under this subchapter, any

 3-8     applicable federal law, and the other state's propane education and

 3-9     research program.  The commission may adopt rules necessary to

3-10     implement the agreements authorized by this section.

3-11           SECTION 7.  Effective as provided by Subsection (c) of

3-12     Section 8 of this Act, Section 113.246, Natural Resources Code, is

3-13     amended to read as follows:

3-14           Sec. 113.246.  RULES REGARDING FEES; AGREEMENTS WITH OTHER

3-15     STATES. (a)  The commission shall adopt rules necessary for the

3-16     administration, collection, reporting, and payment of the fees

3-17     payable or collected under this subchapter and the Propane

3-18     Education and Research Act of 1996 (Pub. L. No. 104-284) or other

3-19     applicable federal law.

3-20           (b)  The commission may enter into an agreement with an

3-21     agency of or an organization in another state and with the national

3-22     Propane Education and Research Council to coordinate the

3-23     administration, collection, reporting, and payment of the fees

3-24     payable or collected under the Propane Education and Research Act

3-25     of 1996 (Pub. L. No. 104-284) or other  applicable federal law.

3-26           (c)  The commission may enter into an agreement with an

3-27     agency of or an organization in another state to coordinate the

3-28     administration, collection, reporting, and payment of the fees

3-29     payable or collected under this subchapter and the other state's

3-30     propane education and research program created by that state's law

3-31     or rule.

3-32           (d)  An agreement executed under Subsection (b) or (c) may

3-33     include reporting, auditing, collecting, apportioning, and

3-34     remitting fees and assessments payable or collected under this

3-35     subchapter, the Propane Education and Research Act of 1996 (Pub. L.

3-36     No. 104-284) or other applicable federal law, and the other state's

3-37     propane education and research program.  The commission may adopt

3-38     rules necessary to implement the agreements authorized by this

3-39     section.

3-40           SECTION 8.  (a)  Except as otherwise provided by this

3-41     section, this Act takes effect September 1, 1997.

3-42           (b)  Sections 1 and 6 of this Act take effect on September 1,

3-43     1997, unless Sections 2 and 7 of this Act take effect on that date,

3-44     in which case Sections 1 and 6 of this Act have no effect.

3-45           (c)  Sections 2 and 7 of this Act take effect on the later of

3-46     September 1, 1997, or the date on which the Railroad Commission of

3-47     Texas by order acknowledges receipt and accepts a written report by

3-48     an independent auditing firm confirming that the industry referenda

3-49     required under Section 4 of the Propane Education and Research Act

3-50     of 1996 (Pub. L. No. 104-284) have been approved by producers

3-51     representing two-thirds of the total volume of propane voted in the

3-52     producer class and by retail marketers representing two-thirds of

3-53     the total volume of propane voted in the retail marketer class.

3-54           SECTION 9.  The importance of this legislation and the

3-55     crowded condition of the calendars in both houses create an

3-56     emergency and an imperative public necessity that the

3-57     constitutional rule requiring bills to be read on three several

3-58     days in each house be suspended, and this rule is hereby suspended.

3-59                                  * * * * *