By Counts                                             H.B. No. 3348
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Texas Energy Resource Council.
 1-4           SECTION 1. Title 70, Revised Statutes, is amended by adding
 1-5     Article 4413(47g) to read as follows:
 1-6           Art. 4413(47g).  TEXAS ENERGY RESOURCE BOARD
 1-7                       ARTICLE 1.  GENERAL PROVISIONS
 1-8           Sec. 1.01. In this Act:
 1-9                 (1)  "Condensate" has the meaning assigned by Section
1-10     201.001, Tax Code.
1-11                 (2)  "Gas" has the meaning assigned by Section 201.001,
1-12     Tax Code.
1-13                 (3)  "Oil" has the meaning assigned by Section 202.001,
1-14     Tax Code.
1-15                 (4)  "Person" means any individual, group of
1-16     individuals, or any partnership, corporation, association,
1-17     cooperative, or employee thereof, or any other entity.
1-18                 (5)  "Qualified producer association" means any
1-19     non-profit entity organized under Internal Revenue Service Code
1-20     501(c)(6) in existence as of September 1, 2001, a majority of whose
1-21     governing body is composed of persons involved in the exploration
1-22     and production of oil and gas in the State of Texas.
 2-1           Sec. 2.01. (a)  The Texas Energy Resource Council is created
 2-2     and is composed of nine members.
 2-3           (b)  The governor shall appoint the members of the council
 2-4     from lists provided by qualified producer associations.
 2-5           (c)  Appointed members serve for staggered terms of three
 2-6     years with the terms of three members expiring on December 31 of
 2-7     each year.
 2-8           (d)  The governor shall appoint an individual to fill the
 2-9     unexpired portion of the term of a vacancy of an appointed member
2-10     of the council in the same manner as the original appointment.
2-11           (e)  After September 1, 2001, the members of the council
2-12     appointed by the governor may by majority vote appoint a
2-13     representative from the following groups:
2-14                 (1)  a representative of royalty owners;
2-15                 (2)  a representative of the crude oil purchasing
2-16     industry; and
2-17                 (3)  a representative of the pipeline industry.
2-18           These additional members shall have full voting rights and
2-19     privileges and will serve three-year terms.  They may be removed
2-20     from the council by majority vote of the members appointed by the
2-21     governor.
2-22           Sec. 2.02. (a)  The members of the council shall elect
2-23     annually a presiding officer of the council.
2-24           (b)  The council may elect other officers it considers
2-25     necessary.
2-26           (c)  A member of the council may not receive compensation for
 3-1     service performed for the council.  A member is entitled to receive
 3-2     reimbursement, subject to any applicable limitation provided by the
 3-3     General Appropriations Act, for actual or necessary expenses
 3-4     incurred in performing services as a member of the council.  Money
 3-5     for expense reimbursement shall be deducted from the Energy
 3-6     Resource Fund as described by Section 3 of this Act.
 3-7           Sec. 2.03. The purposes of this Act and of the council are to
 3-8     coordinate a program designed to promote environmentally sound
 3-9     production methods and technologies, to support educational
3-10     activities regarding the development of energy resources in the
3-11     State of Texas, to support job training and research activities
3-12     regarding energy production, to educate the public regarding the
3-13     importance of the oil, natural gas, and pipeline industries, to
3-14     promote exploration, production, and pipeline safety, and to
3-15     implement and comply with the provisions of this Act.
3-16                      ARTICLE 3.  ENERGY RESOURCE FUND
3-17           Sec. 3.01 (a)  The energy resource fund is created as a
3-18     special fund in the general revenue fund.
3-19           (b)  The fund consists of gifts, grants, and funds
3-20     appropriated by the legislature and the assessments collected under
3-21     Section 4 of this Act.
3-22           (c)  Money in the fund may be used by the council, its
3-23     employees, or agents for the purposes described by Section 2.03 of
3-24     this Act.
3-25                           ARTICLE 4.  ASSESSMENT
3-26           Sec. 4.01. (a)  To fund the purposes and activities of the
 4-1     Texas Energy Resource Council, an assessment is imposed on the
 4-2     production of oil, gas, and condensate produced in this state in
 4-3     the amount of one-tenth of one percent of gross revenues received
 4-4     at the wellhead.
 4-5           (b)  Chapter 201 and 202, Tax Code, apply to the
 4-6     administration and collection of the assessment imposed by this
 4-7     Act.
 4-8           (c)  Proceeds from the assessment shall be deposited to the
 4-9     energy resource fund as provided by Section 3.01 of this Act.
4-10           (d)  To defray the costs of collecting and administering the
4-11     assessment imposed by this Section, the comptroller shall retain a
4-12     portion of the proceeds collected from the assessment in an amount
4-13     approximately equal to the amount necessary for administering this
4-14     Section.
4-15           Sec. 4.02. The council is responsible for taking appropriate
4-16     legal actions to collect any assessment which is not paid or is not
4-17     properly paid.  The comptroller shall not be responsible for
4-18     collecting any assessment not remitted to the comptroller for
4-19     deposit in the energy resource fund.  The comptroller shall report
4-20     to the council any information it obtains regarding failure of any
4-21     person to properly pay the assessment due, including any
4-22     documentation it may have of such failure.
4-23           Sec. 4.03. (a)  Any person subject to the assessment levied
4-24     by Section 4.01(a) of this Act may request a refund as provided in
4-25     this Section of the assessment paid on production for the preceding
4-26     calendar year.  Upon compliance with the provisions of this Section
 5-1     and rules promulgated by the council to implement this Section, the
 5-2     council shall refund to each person requesting a refund of the
 5-3     amount of the assessment paid by or on behalf of such person during
 5-4     the preceding calendar year.  Refunds will include interest earned
 5-5     at the rate equal to the average United States Treasury bill rate
 5-6     of the preceding calendar year as certified by the comptroller.
 5-7           (b)  The request for a refund of the assessment paid on
 5-8     production for the preceding calendar year for which the refund is
 5-9     requested.  Failure to request a refund during this period shall
5-10     terminate the right of any person to receive a refund for the
5-11     assessment paid on production for the preceding calendar year.  The
5-12     council shall give notice of the availability of the refund through
5-13     press releases, paid advertisements placed in the newspaper with
5-14     the largest general circulation in each county of the state, and
5-15     such other means as it deems appropriate.
5-16           (c)  Each person requesting a refund shall execute an
5-17     affidavit showing the amount of refund requested, and that the
5-18     affiant was the person responsible for paying the assessment for
5-19     which the refund is requested.  Each person requesting a refund
5-20     shall submit supporting evidence demonstrating the gross revenues,
5-21     net to the person's revenue interest, received person's revenue
5-22     interest, received for oil, gas, or condensate in Texas.  The
5-23     council may verify principally, through the use of audits, the
5-24     accuracy of the request for refund, the council shall exercise its
5-25     authority in a manner that will reduce, to the extent practicable
5-26     and appropriate, the burden on the persons providing the
 6-1     information to the Council.
 6-2           SECTION 2.  This Act takes effect september 1, 2001.