By: Haywood S.B. No. 1751
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.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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.
1-23 ARTICLE 2. TEXAS ENERGY RESOURCE COUNCIL
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
3-8 to 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 must be made during the
5-9 first three (3) calendar months following the calendar year for
5-10 which the refund is requested. Failure to request a refund during
5-11 this period shall terminate the right of any person to receive a
5-12 refund for the assessment paid on production for the preceding
5-13 calendar year. The council shall give notice of the availability
5-14 of the refund through press releases, paid advertisements placed in
5-15 the newspaper with the largest general circulation in each county
5-16 of the state, and such other means as it deems appropriate.
5-17 (c) Each person requesting a refund shall execute an
5-18 affidavit showing the amount of refund requested, and that the
5-19 affiant was the person responsible for paying the assessment for
5-20 which the refund is requested. Each person requesting a refund
5-21 shall submit supporting evidence demonstrating the gross revenues,
5-22 net to the person's revenue interest, received person's revenue
5-23 interest, received for oil, gas, or condensate in Texas. The
5-24 council may verify principally, through the use of audits, the
5-25 accuracy of the request for refund, the council shall exercise its
5-26 authority in a manner that will reduce, to the extent practicable
6-1 and appropriate, the burden on the persons providing the
6-2 information to the Council.
6-3 SECTION 2. This Act takes effect September 1, 2001.