House File 556 - Enrolled

PAG LIN

1	1	HOUSE FILE 556
1	2
1	3	AN ACT
1	4 ESTABLISHING THE IOWA PROPANE EDUCATION AND RESEARCH COUNCIL,
1	5	PROVIDING FOR THE DEVELOPMENT OF PROGRAMS AND PROJECTS
1	6	RELATED TO PROPANE, PROVIDING FOR AN ASSESSMENT ON THE SALE
1	7	OF ODORIZED PROPANE, PROVIDING CRIMINAL PENALTIES, AND
1	8	PROVIDING FOR A FUTURE REPEAL AND FOR EFFECTIVE DATES.
1	9
1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 11
1 12	Section 1.	NEW SECTION.	101B.1	SHORT TITLE.
1 13	This chapter shall be known as and may be cited as the
1 14 "Iowa Propane Education and Research Act".
1 15	Sec. 2.	NEW SECTION.	101B.2	DEFINITIONS.
1 16	As used in this chapter, unless the context otherwise
1 17 requires:
1 18	1.	"Council" means the Iowa propane education and research
1 19 council established pursuant to section 101B.3.
1 20	2.	"Education" means any activity designed to provide
1 21 information regarding propane, propane equipment, mechanical
1 22 and technical practices, and uses of propane, to consumers and
1 23 members of the propane industry.
1 24	3.	"Fire marshal" means the state fire marshal as provided
1 25 in section 100.1.
1 26	4.	"Odorized propane" means propane to which an odorant
1 27 has been added.
1 28	5.	"Propane" means a hydrocarbon with a chemical
1 29 composition that is predominately C3H8, whether recovered from
1 30 natural gas or crude oil, and includes liquefied petroleum
1 31 gases and mixtures.
1 32	6.	"Propane industry" means those persons involved in the
1 33 production, transportation, and sale of propane, and in the
1 34 manufacture and distribution of propane utilization equipment.
35	7.	"Propane industry trade association" means an
1 organization exempt from tax under section 501(c)(3) or
2	2 501(c)(6) of the Internal Revenue Code, that represents the
2	3 propane industry.
2	4	8.	"Public member" means a member of the council, other
2	5 than a representative of a retail propane marketer, who
2	6 represents a significant user of propane, a public safety
2	7 official, a state regulatory official, or another group
2	8 knowledgeable about propane.
2	9	9.	"Qualified propane industry organization" means the
2 10 Iowa propane gas association or any other similarly
2 11 constituted industry trade association that represents at
2 12 least thirty=five percent of the total volume of odorized
2 13 propane sold at retail in this state.
2 14	10.	"Research" means any type of study, investigation,
2 15 program, or other activity designed to advance the image,
2 16 desirability, usage, marketability, efficiency, or safety of
2 17 propane or to further the development of information related
2 18 to such activities.
2 19	11.	"Retail propane dispenser" means a person who sells
2 20 odorized propane to the ultimate consumer but is not engaged
2 21 primarily in the business of such sales.
2 22	12.	"Retail propane marketer" means a person engaged
2 23 primarily in the sale of odorized propane to the ultimate
2 24 consumer or to a retail propane dispenser.
2 25	Sec. 3.	NEW SECTION.	101B.3	IOWA PROPANE EDUCATION AND
2 26 RESEARCH COUNCIL ESTABLISHED.
2 27	1.	The Iowa propane education and research council is
2 28 established.	Members of the council shall be appointed by the
2 29 governor from a list of nominees submitted by qualified
2 30 propane industry organizations within thirty days after the
2 31 effective date of this Act and by December 15 of each year
2 32 thereafter.	The council shall consist of ten voting members,
2 33 nine of whom represent retail propane marketers and one of
2 34 whom shall be a public member.	Qualified propane industry
35 organizations shall together nominate all members of the
1 council.	A vacancy in the unfinished term of a council member
3	2 shall be filled for the remainder of the term in the same
3	3 manner as the original appointment was made.	Other than the

3	4 public member, council members shall be full=time employees or
3	5 owners of a propane industry business or representatives of an
3	6 agricultural cooperative actively engaged in the propane
3	7 industry.	An employee of a qualified propane industry
3	8 organization shall not serve as a member of the council.	An
3	9 officer of the board of directors of a qualified propane
3 10 industry organization or propane industry trade association
3 11 shall not serve concurrently as a member of the council.	The
3 12 fire marshal or a designee may serve as an ex officio,
3 13 nonvoting member of the council.
3 14	2.	In nominating members of the council, qualified propane
3 15 industry organizations shall give due consideration to
3 16 nominating council members who are representative of the
3 17 propane industry, including representation of all of the
3 18 following:
3 19	a.	Interstate and intrastate retail propane marketers.
3 20	b.	Large and small retail propane marketers, including
3 21 agricultural cooperatives.
3 22	c.	Diverse geographic regions of the state.
3 23	3.	The following persons shall be ex officio, nonvoting
3 24 members of the council designated for three=year terms as
3 25 follows:
3 26	a.	A professional fire fighter designated by the Iowa
3 27 association of professional fire chiefs.
3 28	b.	A volunteer fire fighter designated by the Iowa
3 29 firemen's association.
3 30	c.	An experienced plumber involved in plumbing training
3 31 programs designated by the Iowa state building and
3 32 construction trades council.
3 33	d.	A heating, ventilation, and air conditioning
3 34 professional involved in heating, ventilation, and air
35 conditioning training programs designated by the Iowa state
1 building and construction trades council.
4	2	e.	A community college instructor with experience in
4	3 conducting fire safety programs designated by the Iowa
4	4 association of community college presidents.
4	5	f.	A representative of a property and casualty insurance
4	6 company with experience in insuring sellers of propane gas
4	7 designated by the Iowa insurance institute.
4	8	4.	A council member, other than the public member, shall
4	9 not receive compensation for the council member's service and
4 10 shall not be reimbursed for expenses relating to the council
4 11 member's service.	The public member shall receive a per diem
4 12 as specified in section 7E.6 and shall be reimbursed for
4 13 actual expenses incurred in performing official duties of the
4 14 council not to exceed forty days per year.	A member of the
4 15 council shall not be a salaried employee of the council or of
4 16 any organization or agency which receives funds from the
4 17 council.
4 18	5.	A council member shall serve a term of three years and
4 19 shall not serve more than two full consecutive terms.	A
4 20 council member filling an unexpired term may serve not more
4 21 than a total of seven consecutive years.	A former council
4 22 member may be appointed to the council if the former member
4 23 has not been a member of the council for a period of at least
4 24 two years.
4 25	6.	Initial appointments to the council shall be for terms
4 26 of one, two, and three years that are staggered to provide for
4 27 the future appointment of at least two members each year.
4 28	7.	The voting members of the council shall select a
4 29 chairperson and other officers as necessary from the voting
4 30 members and shall adopt rules and bylaws for the conduct of
4 31 business and the implementation of this chapter.	The council
4 32 may establish committees and subcommittees comprised of
4 33 members of the council and may establish advisory committees
4 34 comprised of persons other than council members.	The council
35 shall establish procedures for the solicitation of propane
1 industry comments and recommendations regarding any
5	2 significant plans, programs, or projects to be funded by the
5	3 council.
5	4	8.	The council shall develop programs and projects and
5	5 enter into agreements for administering such programs and
5	6 projects as provided in this chapter, including programs to
5	7 enhance consumer and employee safety and training, provide for
5	8 research and development of clean and efficient propane
5	9 utilization equipment, inform and educate the public about
5 10 safety and other issues associated with the use of propane,
5 11 and develop programs and projects that provide assistance to
5 12 persons who are eligible for the low=income home energy
5 13 assistance program.	The programs and projects shall be
5 14 developed to attain equitable geographic distribution of their

5 15 benefits to the fullest extent practicable.	The costs of the
5 16 programs and projects shall be paid with funds collected
5 17 pursuant to section 101B.4.	The council shall coordinate its
5 18 programs and projects with propane industry trade associations
5 19 and others as the council deems appropriate to provide
5 20 efficient delivery of services and to avoid unnecessary
5 21 duplication of activities.	Issues concerning propane that are
5 22 related to research and development, safety, education, and
5 23 training shall be given priority by the council in the
5 24 development of programs and projects.
5 25	9.	At the beginning of each fiscal year, the council shall
5 26 prepare a budget plan for the next fiscal year, including the
5 27 probable cost of all programs, projects, and contracts to be
5 28 undertaken.	The council shall submit the proposed budget to
5 29 the fire marshal for review and comment.	The fire marshal may
5 30 recommend appropriate programs, projects, and activities to be
5 31 undertaken by the council.
5 32	10.	The council shall keep minutes, books, and records
5 33 that clearly reflect all of the acts and transactions of the
5 34 council which are public records open to public inspection.
35 The books and records shall indicate the geographic areas
1 where benefits were conferred by each individual program or
6	2 project in detail sufficient to reflect the degree to which
6	3 each program or project attained equitable geographic
6	4 distribution of its benefits.	The books of the council shall
6	5 be audited by a certified public accountant at least once each
6	6 fiscal year and at such other times as the council may
6	7 designate.	The cost of the audit shall be paid by the
6	8 council.	Copies of the audit shall be provided to all council
6	9 members, all qualified propane industry organizations, and to
6 10 other members of the propane industry upon request.	In
6 11 addition, a copy of the audit and a report detailing the
6 12 programs and projects conducted by the council and containing
6 13 information reflecting the degree to which equitable
6 14 geographic distribution of the benefits of each program or
6 15 project was attained shall be submitted each fiscal year to
6 16 the chief clerk of the house of representatives and the
6 17 secretary of the senate.
6 18	11.	The council is subject to the open meeting
6 19 requirements of chapter 21.
6 20	12.	The council shall promulgate administrative rules
6 21 pursuant to chapter 17A which shall have the same force and
6 22 effect as if adopted by a state agency.	Initial rules shall
6 23 be promulgated on an emergency basis.
6 24	13.	The council shall also perform the functions required
6 25 of a state organization under the federal Propane Education
6 26 and Research Act of 1996, be the repository of funds received
6 27 under that Act, and separately account for those funds.	The
6 28 council shall coordinate the operation of the program with the
6 29 federal council as contemplated by 15 U.S.C. } 6405.
6 30	Sec. 4.	NEW SECTION.	101B.4	FUNDING == ASSESSMENTS.
6 31	1.	The council and its activities shall be funded by an
6 32 annual assessment.	Upon establishment of the council and each
6 33 year thereafter the annual assessment shall be made at a rate
6 34 of one=tenth of one cent on each gallon of odorized propane
35 sold.
1	2.	The owner of odorized propane at the time of
7	2 odorization or at the time of import shall calculate the
7	3 amount of the assessment based on the volume of odorized
7	4 propane sold for use in this state.	The assessment, when
7	5 made, shall be listed as a separate line item on the bill of
7	6 sale for the odorized propane and titled "Iowa propane
7	7 education and research assessment".	Assessments shall be
7	8 collected by the owner from purchasers of the odorized propane
7	9 and shall be paid by the owner to the council on a monthly
7 10 basis by the twenty=fifth day of the month following the month
7 11 the assessment was collected.	If payment is not made to the
7 12 council by the due date as required by this subsection, an
7 13 interest penalty of one percent of any amount unpaid shall be
7 14 imposed against the owner for each month or fraction of a
7 15 month after the due date, until final payment is made.
7 16	3.	Notwithstanding subsection 2, the council may establish
7 17 an alternative means of collecting such assessments if the
7 18 council determines that another method would be more efficient
7 19 or effective and may establish an alternative late payment
7 20 charge or interest penalty to be imposed on a person who fails
7 21 to timely pay any amount due under this chapter to the
7 22 council.
7 23	4.	Pending the disbursement of assessments collected, the
7 24 council shall invest moneys collected through assessments and
7 25 any other monies received by the council in any of the

7 26 following:
7 27	a.	Obligations of the United States or any agency of the
7 28 United States.
7 29	b.	General obligations of any state or political
7 30 subdivision of any state.
7 31	c.	Any interest=bearing account or certificate of deposit
7 32 of a bank that is a member of the federal reserve system.
7 33	d.	Obligations that are fully guaranteed as to principal
7 34 and interest by the United States.
35	Sec. 5.	NEW SECTION.	101B.5	REFERENDUM FOR TERMINATION
1 OF COUNCIL.
8	2	On the council's own initiative or on petition to the
8	3 council by retail propane marketers representing thirty=five
8	4 percent of the volume of odorized propane sold in this state,
8	5 the council shall, at its own expense, arrange for a
8	6 referendum to be conducted by an independent auditing firm
8	7 agreed upon by the retail propane marketers, to determine
8	8 whether the council should be terminated or suspended.	Voting
8	9 rights in the referendum shall be based on the volume of
8 10 odorized propane sold in this state by each retail propane
8 11 marketer during the previous calendar year.	Each retail
8 12 propane marketer voting in the referendum shall certify to the
8 13 independent auditing firm the volume of odorized propane sold
8 14 by that person as represented by that person's vote.	Upon the
8 15 approval of those retail propane marketers representing more
8 16 than one=half of the total volume of odorized propane sold in
8 17 this state, the council shall be terminated or suspended and
8 18 the general assembly shall consider the repeal of this chapter
8 19 during its next regular session.
8 20	Sec. 6.	NEW SECTION.	101B.6	COMPLIANCE.
8 21	The district court is vested with the jurisdiction
8 22 specifically to enforce this chapter and to prevent or
8 23 restrain any person from violating this chapter.	A successful
8 24 action for compliance brought under this section may also
8 25 require payment by the defendant of the costs incurred by the
8 26 council in bringing the action.
8 27	Sec. 7.	NEW SECTION.	101B.7	LOBBYING RESTRICTIONS.
8 28	Moneys collected by the council shall not be used in any
8 29 manner for influencing legislation or elections, except that
8 30 the council may recommend changes in this chapter or other
8 31 statutes that would further the purposes of this chapter to
8 32 the general assembly.
8 33	Sec. 8.	NEW SECTION.	101B.8	PRICING.
8 34	In all cases, the price of propane shall be determined by
35 market forces.	Consistent with antitrust laws, the council
1 shall not take any action regarding, and this chapter shall
9	2 not be interpreted as establishing, an agreement to pass along
9	3 to consumers the cost of the assessment provided for in
9	4 section 101B.4.
9	5	Sec. 9.	NEW SECTION.	101B.9	RELATION TO OTHER PROGRAMS.
9	6	This chapter shall not be construed to preempt or supersede
9	7 any other program relating to propane education and research
9	8 organized and operated under the laws of this state.	This
9 chapter shall be administered and construed as complementary
9 10 to the federal Propane Education and Research Act of 1996, 15
9 11 U.S.C. } 6401 et seq.
9 12	Sec. 10.	NEW SECTION.	101B.10	BOND.
9 13	Any person occupying a position of trust under any
9 14 provision of this chapter shall provide a bond in an amount
9 15 required by the council.	The costs of obtaining the bond
9 16 shall be paid out of council funds.
9 17	Sec. 11.	NEW SECTION.	101B.11	REPORT.
9 18	The council shall prepare and submit an annual report to
9 19 the fire marshal and the auditor of state summarizing the
9 20 activities of the council conducted pursuant to this chapter.
9 21 The report shall show all income, expenses, and other relevant
9 22 information concerning assessments collected and expended
9 23 under this chapter.
9 24	Sec. 12.	NEW SECTION.	101B.12	NOT A STATE AGENCY.
9 25	The Iowa propane education and research council is not a
9 26 state agency.
9 27	Sec. 13.	NEW SECTION.	101B.13	PENALTY.
9 28	A person who willfully violates the provisions of this
9 29 chapter or willfully renders or furnishes a false or
9 30 fraudulent report, statement, or record required by the fire
9 31 marshal pursuant to this chapter is guilty of a simple
9 32 misdemeanor.
9 33	Sec. 14.	NEW SECTION.	101B.14	FUTURE REPEAL.
9 34	This chapter is repealed December 31, 2014.
9 35	Sec. 15.	EFFECTIVE DATES.
1	1.	This Act, except section 4, being deemed of immediate

10	2 importance, takes effect upon enactment.
10	3	2.	Section 4 of this Act takes effect January 1, 2008, or
10	4 upon adoption of administrative rules implementing section 4,
10	5 whichever occurs first.
10	6
10	7
10	8
10	9	PATRICK J. MURPHY
10 10	Speaker of the House
10 11
10 12
10 13
10 14	JOHN P. KIBBIE
10 15	President of the Senate
10 16
10 17	I hereby certify that this bill originated in the House and
10 18 is known as House File 556, Eighty=second General Assembly. 10 19
10 20
10 21
10 22	MARK BRANDSGARD
10 23	Chief Clerk of the House
10 24 Approved	, 2007
10 25
10 26
10 27  	
10 28 CHESTER J. CULVER
10 29 Governor