By: Hunter H.B. No. 3368
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Energy Resource Council.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 70, Revised Statutes, is amended by adding
Article 4413(47g) to read as follows:
Art. 4413(47g). TEXAS ENERGY RESOURCE BOARD
ARTICLE 1. GENERAL PROVISIONS
Sec. 1.01. In this Act:
(1) "Condensate" has the meaning assigned by Section
201.001, Tax Code.
(2) "Gas" has the meaning assigned by Section 201.001
Tax Code.
(3) "Oil" has the meaning assigned by Section 202.001
Tax Code.
(4) "Person" means any individual, group of
individuals, or any partnership, corporation, association,
cooperative, or employee thereof, or any other entity.
(5) "Qualified producer association" means any
non-profit entity organized under Internal Revenue Service Code
501(c)(6) in existence as of September 1, 2003, a majority of whose
Governing body is composed of persons involved in the exploration
and production of oil and gas in the State of Texas.
ARTICLE 2. TEXAS ENERGY RESOURCE COUNCIL
Sec. 2.01. (a) The Texas Energy Resource Council is created
and is composed of nine members.
(b) The governor shall appoint the members of the council
from lists provided by qualified producer associations.
(c) Appointed members serve for staggered terms of three
years with the terms of three members expiring on December 31 of
each year.
(d) The governor shall appoint an individual to fill the
unexpired portion of the term of a vacancy of an appointed member of
the council in the same manner as the original appointment.
(e) After September 1, 2003, the members of the council
appointed by the governor may by majority vote appoint a
representative from the following groups:
(1) a representative of royalty owners;
(2) a representative of the crude oil purchasing
industry; and
(3) a representative of the pipeline industry. These
additional members shall have full voting rights and privileges and
will serve three-year terms. They may be removed from the council
by majority vote of the members appointed by the governor.
Sec. 2.02. (a) The members of the council shall elect
annually a presiding officer of the council.
(b) The council may elect other officers it considers
necessary.
(c) A member of the council may not receive compensation for
service performed for the council. A member is entitled to receive
reimbursement, subject to any applicable limitation provided by the
General Appropriations Act, for actual or necessary expenses
incurred in performing services as a member of the council. Money
for expense reimbursement shall be deducted from the Energy
Resource Fund as described by Section 3 of this Act.
Sec. 2.03. The purposes of this Act and of the council are
to coordinate a program designed to promote environmentally sound
production methods and technologies, to support educational
activities regarding the development of energy resources in the
State of Texas, to support job training and research activities
regarding energy production, to educate the public regarding the
importance of the oil, natural gas, and pipeline industries, to
promote exploration, production, and pipeline safety, and to
implement and comply with the provisions of this Act.
ARTICLE 3. ENERGY RESOURCE FUND
Sec. 3.01. (a) The energy resource fund is created as a
special fund in the general revenue fund.
(b) The fund consists of gifts, grants, and funds
appropriated by the legislature and the assessments collected under
Section 4 of this Act.
(c) Money in the fund may be used by the council, its
employees, or agents for the purposes described by Section 2.03 of
this Act.
ARTICLE 4. ASSESSMENT
Sec. 4.01. (a) To fund the purposes and activities of the
Texas Energy Resource Council, an assessment is imposed on the
production of oil, gas, and condensate produced in this state in the
amount of one-tenth of one percent of gross revenues received at the
wellhead.
(b) Chapter 201 and 202, Tax Code, apply to the
administration and collection of the assessment imposed by this
Act.
(c) Proceeds from the assessment shall be deposited to the
energy resource fund as provided by Section 3.01 of this Act.
(d) To defray the costs of collecting and administering the
assessment imposed by this Section, the comptroller shall retain a
portion of the proceeds collected from the assessment in an amount
approximately equal to the amount necessary for administering this
Section.
Sec. 4.02. The council is responsible for taking
appropriate legal actions to collect any assessment which is not
paid or is not properly paid. The comptroller shall not be
responsible for collecting any assessment not remitted to the
comptroller for deposit in the energy resource fund. The
comptroller shall report to the council any information it obtains
regarding failure of any person to properly pay the assessment due,
including any documentation it may have of such failure.
Sec. 4.03. (a) Any person subject to the assessment levied
by Section 4.01(a) of this Act may request a refund as provided in
this Section of the assessment paid on production for the preceding
calendar year. Upon compliance with the provisions of this Section
and rules promulgated by the council to implement this Section, the
council shall refund to each person requesting a refund of the
amount of the assessment paid by or on behalf of such person during
the preceding calendar year. Refunds will include interest earned
at the rate equal to the average United States Treasury bill rate of
the preceding calendar year as certified by the comptroller.
(b) The request for a refund of the assessment paid on
production for the preceding calendar year for which the refund is
requested. Failure to request a refund during this period shall
terminate the right of any person to receive a refund for the
assessment paid on production for the preceding calendar year. The
council shall give notice of the availability of the refund through
press releases, paid advertisements placed in the newspaper with
the largest general circulation in each county of the state, and
such other means as it deems appropriate.
(c) Each person requesting a refund shall execute an
affidavit showing the amount of refund requested, and that the
affiant was the person responsible for paying the assessment for
which the refund is requested. Each person requesting a refund
shall submit supporting evidence demonstrating the gross revenues,
net to the person's revenue interest, received person's revenue
interest, received for oil, gas, or condensate in Texas. The
council may verify principally, through the use of audits, the
accuracy of the request for refund, the council shall exercise its
authority in a manner that will reduce, to the extent practicable
and appropriate, the burden on the persons providing the
information to the Council.
SECTION 2. This Act takes effect September 1, 2001.