77R14630 SMH-F
By Counts H.B. No. 3348
Substitute the following for H.B. No. 3348:
By Lewis of Orange C.S.H.B. No. 3348
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Energy Resource Council; authorizing the
1-3 imposition of an assessment on producers of oil, gas, and
1-4 condensate.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Title 70, Revised Statutes, is amended by adding
1-7 Article 4413(47g) to read as follows:
1-8 Art. 4413(47g). TEXAS ENERGY RESOURCE COUNCIL
1-9 PART 1. GENERAL PROVISIONS
1-10 Sec. 1.01. DEFINITIONS. In this article:
1-11 (1) "Condensate" has the meaning assigned by Section
1-12 201.001, Tax Code.
1-13 (2) "First purchaser" has the meaning assigned by
1-14 Section 201.001 or 202.001, Tax Code, as applicable.
1-15 (3) "Gas" has the meaning assigned by Section 201.001,
1-16 Tax Code.
1-17 (4) "Oil" has the meaning assigned by Section 202.001,
1-18 Tax Code.
1-19 (5) "Person" includes an individual or group of
1-20 individuals and a partnership, corporation, association,
1-21 cooperative, or other legal entity.
1-22 (6) "Producer" has the meaning assigned by Section
1-23 201.001 or 202.001, Tax Code, as applicable.
1-24 PART 2. TEXAS ENERGY RESOURCE COUNCIL
2-1 Sec. 2.01. COMPOSITION OF COUNCIL. (a) The Texas Energy
2-2 Resource Council is composed of 15 members.
2-3 (b) The governor shall appoint to serve on the council five
2-4 members as follows:
2-5 (1) one person who must be a member of the Texas Oil
2-6 and Gas Association;
2-7 (2) one person who must be a member of the Texas
2-8 Independent Producers and Royalty Owners Association;
2-9 (3) one person who must be a member of the Permian
2-10 Basin Petroleum Association;
2-11 (4) one person who must be a member of The Alliance of
2-12 Energy Producers; and
2-13 (5) one person who must be a member of the Panhandle
2-14 Producers and Royalty Owners Association.
2-15 (c) The governor shall appoint to serve on the council seven
2-16 members from lists of nominees provided by the organizations listed
2-17 in Subsection (b) of this section. The governor shall make at
2-18 least one appointment from each organization's list. The governor
2-19 may reject the nominees on a list and request a new list of
2-20 different nominees.
2-21 (d) The members of the council by majority vote shall
2-22 appoint to serve on the council three members as follows:
2-23 (1) one representative of royalty owners;
2-24 (2) one representative of the crude oil purchasing
2-25 industry; and
2-26 (3) one representative of the pipeline industry.
2-27 Sec. 2.02. TERMS; VACANCIES. (a) The members of the council
3-1 serve for staggered six-year terms, with the terms of five members
3-2 expiring February 1 of each odd-numbered year.
3-3 (b) A vacancy on the council shall be filled for the
3-4 unexpired portion of the term in the same manner as the original
3-5 appointment.
3-6 Sec. 2.03. OFFICERS. (a) The members of the council
3-7 annually shall elect a presiding officer of the council.
3-8 (b) The council may elect other officers it considers
3-9 necessary.
3-10 Sec. 2.04. COMPENSATION. A member of the council may not
3-11 receive compensation for service performed for the council. A
3-12 member is entitled to reimbursement, subject to any applicable
3-13 limitation provided by the General Appropriations Act, for actual
3-14 or necessary expenses incurred in performing services as a member
3-15 of the council. Money paid to a council member under this section
3-16 shall be paid from the energy resource account.
3-17 PART 3. POWERS AND DUTIES OF COUNCIL
3-18 Sec. 3.01. POWERS AND DUTIES OF COUNCIL. The council shall:
3-19 (1) coordinate a program designed to:
3-20 (A) promote environmentally sound energy
3-21 production methods and technologies;
3-22 (B) support educational activities regarding the
3-23 development of energy resources in this state;
3-24 (C) support job training and research activities
3-25 regarding energy production;
3-26 (D) educate the public regarding the importance
3-27 of the oil, natural gas, and pipeline industries;
4-1 (E) promote the exploration for and production
4-2 of energy; and
4-3 (F) promote pipeline safety; and
4-4 (2) implement the other provisions of this article.
4-5 PART 4. ENERGY RESOURCE ACCOUNT
4-6 Sec. 4.01. ENERGY RESOURCE ACCOUNT. (a) The energy resource
4-7 account is an account in the general revenue fund that may be
4-8 appropriated only to the council for the purposes of this article.
4-9 (b) The energy resource account consists of:
4-10 (1) gifts and grants;
4-11 (2) transfers of money to the account by the
4-12 legislature; and
4-13 (3) assessments collected under Part 5 of this
4-14 article.
4-15 PART 5. ASSESSMENT
4-16 Sec. 5.01. IMPOSITION OF ASSESSMENT. (a) An assessment is
4-17 imposed on each producer of oil, gas, or condensate. The amount of
4-18 the assessment is four-hundredths of one percent of the market
4-19 value of oil, gas, or condensate produced and saved in this state
4-20 by the producer. The market value of oil, gas, or condensate is
4-21 its value at the mouth of the well from which it is produced.
4-22 (b) Notwithstanding Subsection (a) of this section, a
4-23 producer may not be assessed more than $150,000 in any year.
4-24 (c) Except as otherwise provided by this article, Chapters
4-25 201 and 202, Tax Code, apply to the assessment imposed by this
4-26 article as if the assessment were a tax imposed by those chapters.
4-27 (d) The assessment imposed by this article is not an
5-1 occupation tax.
5-2 (e) A first purchaser or producer, as applicable, shall
5-3 include as a separate item in any report required by Chapter 201 or
5-4 202, Tax Code, any required information relating to the assessment
5-5 imposed by this article.
5-6 Sec. 5.02. DEPOSIT OF ASSESSMENT. (a) Except as provided by
5-7 Subsection (b) of this section, the comptroller shall deposit an
5-8 assessment collected under this article to the credit of the energy
5-9 resource account.
5-10 (b) The comptroller shall retain a portion of an assessment
5-11 collected under this article to cover the cost of administering the
5-12 imposition and collection of the assessment. The comptroller by
5-13 rule shall specify the portion of the assessment to be retained.
5-14 Sec. 5.03. COLLECTION OF ASSESSMENT. (a) The council is
5-15 responsible for taking appropriate legal action to collect any
5-16 assessment that is not paid to the comptroller. The comptroller is
5-17 not responsible for collecting any assessment that is not paid to
5-18 the comptroller.
5-19 (b) The comptroller shall report to the council any
5-20 information the comptroller obtains regarding the failure of any
5-21 person to properly pay an assessment and shall provide to the
5-22 council any documentation the comptroller may have of that failure.
5-23 Sec. 5.04. REFUND OF ASSESSMENT. (a) A person is entitled
5-24 to a refund of an assessment paid by the person during the
5-25 preceding state fiscal year if the person submits a request for a
5-26 refund as provided by this section.
5-27 (b) A request for a refund must be made to the comptroller
6-1 not later than the third calendar month following the state fiscal
6-2 year for which the refund is requested. The request must be in the
6-3 form and include the information required by the comptroller.
6-4 (c) If the assessment was paid by the producer, the producer
6-5 must submit the refund request, and any refund made shall be paid
6-6 to the producer. If the assessment was paid by a first purchaser
6-7 on behalf of the producer, the first purchaser, at the request of
6-8 the producer, shall submit a request for a refund, and any refund
6-9 made shall be paid to the first purchaser. The first purchaser
6-10 shall refund to the producer the amount refunded not later than the
6-11 60th day after the date the first purchaser receives the refund.
6-12 (d) The council shall give notice of the right to request a
6-13 refund through:
6-14 (1) press releases;
6-15 (2) paid advertisements placed in the newspaper with
6-16 the largest circulation in each county of the state; and
6-17 (3) other means it considers appropriate.
6-18 (e) The comptroller shall determine the validity of a
6-19 request for a refund. The comptroller shall perform the
6-20 comptroller's duties under this section in a manner that minimizes,
6-21 to the extent practicable and appropriate, the burden on persons
6-22 providing information to the comptroller.
6-23 (f) If the comptroller determines that a person is entitled
6-24 to a refund, the comptroller shall refund the amount of the
6-25 assessment paid during the preceding state fiscal year, together
6-26 with interest at a rate equal to the average rate paid over the
6-27 preceding calendar year on United States treasury bills with a
7-1 12-month maturity date.
7-2 (g) The comptroller shall make refunds under this section in
7-3 the order in which the comptroller receives requests for refunds.
7-4 Notwithstanding the other provisions of this section, the
7-5 comptroller may not make refunds in a state fiscal year in an
7-6 amount that, in the aggregate, exceeds 60 percent of the total
7-7 amount of assessments collected during the preceding state fiscal
7-8 year.
7-9 (h) The comptroller may adopt rules to implement this
7-10 section.
7-11 SECTION 2. (a) As soon as practicable after receiving the
7-12 lists described by Section 2.01(c), Article 4413(47g), Revised
7-13 Statutes, as added by this Act, the governor shall appoint persons
7-14 to serve on the Texas Energy Resource Council as required by
7-15 Sections 2.01(b) and (c), Article 4413(47g), Revised Statutes, as
7-16 added by this Act. The governor shall designate four persons to
7-17 serve on the council for terms expiring February 1, 2003, four
7-18 persons to serve on the council for terms expiring February 1,
7-19 2005, and four persons to serve on the council for terms expiring
7-20 February 1, 2007.
7-21 (b) As soon as practicable after taking office, the members
7-22 of the Texas Energy Resource Council appointed under Sections
7-23 2.01(b) and (c), Article 4413(47g), Revised Statutes, as added by
7-24 this Act, shall appoint one person to serve on the council for a
7-25 term expiring February 1, 2003, one person to serve on the council
7-26 for a term expiring February 1, 2005, and one person to serve on
7-27 the council for a term expiring February 1, 2007.
8-1 SECTION 3. (a) Except as otherwise provided by this section,
8-2 this Act takes effect September 1, 2001.
8-3 (b) Part 5 of Article 4413(47g), Revised Statutes, as added
8-4 by this Act, takes effect January 1, 2002, and applies only to oil,
8-5 gas, and condensate produced and saved on or after that date.