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PAG LIN 1 1 Section 1. NEW SECTION. 159B.1 SHORT TITLE. 1 2 This chapter shall be known as and may be cited as the 1 3 "Iowa Propane Education and Research Act". 1 4 Sec. 2. NEW SECTION. 159B.2 DEFINITIONS. 1 5 As used in this chapter, unless the context otherwise 1 6 requires: 1 7 1. "Council" means the Iowa propane education and research 1 8 council created pursuant to section 159B.3. 1 9 2. "Education" means any action to provide information 1 10 regarding propane, propane equipment, mechanical and technical 1 11 practices, and propane uses to consumers and members of the 1 12 propane industry. 1 13 3. "Industry" means those persons involved in the 1 14 production, transportation, and sale of propane, and the 1 15 manufacture and distribution of propane utilization equipment. 1 16 4. "Industry trade association" means an organization 1 17 exempt from tax under section 501(c)(3) or (6) of the Internal 1 18 Revenue Code, representing the propane industry. 1 19 5. "Odorized propane" means propane which has an odorant 1 20 added to it. 1 21 6. "Propane" means a hydrocarbon whose chemical 1 22 composition is predominately C3H8, whether recovered from 1 23 natural gas or crude oil, and includes liquefied petroleum 1 24 gases and mixtures. 1 25 7. "Public member" means a member of the council other 1 26 than representatives of retail marketers representing 1 27 significant users of propane, public safety officials, state 1 28 regulatory officials, or other groups knowledgeable about 1 29 propane. 1 30 8. "Qualified industry organization" means the Iowa 1 31 propane gas association or any other similarly constituted 1 32 industry trade association recognized by the secretary as 1 33 being representative of the industry. 1 34 9. "Research" means any type of study, investigation, or 1 35 other activities designed to advance the image, desirability, 2 1 usage, marketability, efficiency, and safety of propane and to 2 2 further the development of information related to such 2 3 activities. 2 4 10. "Retail marketer" means a person engaged primarily in 2 5 the sale of odorized propane to the ultimate consumer or to a 2 6 retail propane dispenser. 2 7 11. "Retail propane dispenser" means a person who sells 2 8 odorized propane to the ultimate consumer but is not engaged 2 9 primarily in the business of such sales. 2 10 12. "Secretary" means secretary of agriculture or the 2 11 secretary's designee. 2 12 Sec. 3. NEW SECTION. 159B.3 REFERENDUM CREATION AND 2 13 TERMINATION OF AN IOWA PROPANE EDUCATION AND RESEARCH COUNCIL. 2 14 1. Qualified industry organizations shall conduct at their 2 15 own expense a referendum among retail marketers for the 2 16 creation of an Iowa propane education and research council. 2 17 The council, if created, shall reimburse the qualified 2 18 industry organizations for the cost of the referendum 2 19 accounting and documentation. The referendum shall be 2 20 conducted by an independent auditing firm agreed to by the 2 21 qualified industry organizations. The results of the 2 22 referendum, as certified by the independent auditing firm, 2 23 shall be submitted to the secretary with thirty days of 2 24 certification. Voting rights in the referendum shall be based 2 25 on the volume of odorized propane sold in this state by retail 2 26 marketers in the previous calendar year. All persons voting 2 27 in the referendum shall certify to the independent auditing 2 28 firm the volume of propane represented by their vote. Upon 2 29 approval of those persons representing two-thirds of the total 2 30 volume of propane voted, the council shall be established, and 2 31 shall be authorized to levy an assessment on odorized propane 2 32 in accordance with section 159B.5. 2 33 2. On the council's own initiative, or on petition to the 2 34 council by retail marketers representing thirty-five percent 2 35 of the volume of propane sold in this state, the council 3 1 shall, at its own expense, hold a referendum to be conducted 3 2 by an independent auditing firm selected by the council in the 3 3 same manner as described in subsection 1, to determine whether 3 4 the industry favors termination or suspension of the council. 3 5 Termination or suspension shall not take effect unless it is 3 6 approved by persons representing more than one-half of the 3 7 total volume of odorized propane sold in this state by retail 3 8 marketers. 3 9 Sec. 4. NEW SECTION. 159B.4 IOWA PROPANE EDUCATION AND 3 10 RESEARCH COUNCIL. 3 11 1. The council shall consist of seven members, five of 3 12 whom shall represent retail marketers and two of whom shall be 3 13 public members. The qualified industry organizations together 3 14 shall select all members of the council. A vacancy in the 3 15 unfinished term of a council member shall be filled for the 3 16 unfinished term in the same manner as the original appointment 3 17 was made. Other than the public members, council members 3 18 shall be full-time employees or owners of a propane industry 3 19 business or representatives of an agricultural cooperative. 3 20 An employee of a qualified industry organization shall not 3 21 serve as a member of the council and a member of the council 3 22 shall not serve concurrently as an officer of the board of 3 23 directors of a qualified industry organization or other 3 24 industry trade association. The secretary may serve as an ex 3 25 officio, nonvoting member of the council. 3 26 2. In selecting members of the council, the qualified 3 27 industry organizations shall give due regard to selecting 3 28 council members that are representative of the industry, 3 29 including representation of all of the following: 3 30 a. Interstate and intrastate operators among retail 3 31 marketers. 3 32 b. Large and small companies among retail marketers, 3 33 including agricultural cooperatives. 3 34 c. Diverse geographic regions of the state. 3 35 3. A council member, other than a public member, shall not 4 1 receive compensation for the council member's service, and 4 2 shall not be reimbursed for expenses relating to the council 4 3 member's service. A public member shall receive a per diem as 4 4 specified in section 7E.6 and actual expenses in performing 4 5 official council functions not to exceed forty days per year. 4 6 A member of the council shall not be a salaried employee of 4 7 the council or any organization or agency which is receiving 4 8 funds from the council. 4 9 4. A council member shall serve a term of three years and 4 10 shall not serve more than two full consecutive terms. A 4 11 council member filling an unexpired term may serve not more 4 12 than a total of seven consecutive years. A former council 4 13 member may be returned to the council if the former member has 4 14 not been a member for a period of two years. Initial 4 15 appointments to the council shall be for terms of one, two, 4 16 and three years, staggered to provide for the selection of at 4 17 least two members each year. The council shall notify the 4 18 secretary of the name, address, and propane-related 4 19 affiliation, if any, of a council member within thirty days 4 20 after the appointment of the member to the council. 4 21 5. The council shall develop programs and projects and 4 22 enter into agreements for administering programs and projects 4 23 under this chapter, including programs to enhance consumer and 4 24 employee safety and training, to provide for research and 4 25 development of clean and efficient propane utilization 4 26 equipment, to inform and educate the public about safety and 4 27 other issues associated with the use of propane, and to 4 28 provide for the payment of the costs with funds collected 4 29 pursuant to this chapter. The council shall coordinate its 4 30 programs and projects with industry trade associations and 4 31 others as appropriate to provide efficient delivery of 4 32 services and to avoid unnecessary duplication of activities. 4 33 6. Issues related to research and development, safety, 4 34 education, and training shall be given priority by the council 4 35 in the development of programs and projects. 5 1 7. The council shall select a chairperson and other 5 2 officers as necessary from among the members of the council, 5 3 may establish committees and subcommittees of the council, and 5 4 shall adopt rules and bylaws for the conduct of business and 5 5 the implementation of this chapter. The council shall 5 6 establish procedures for the solicitation of industry comment 5 7 and recommendations on any significant plans, programs, and 5 8 projects to be funded by the council. The council may 5 9 establish advisory committees of persons other than council 5 10 members. 5 11 8. At the beginning of each fiscal period, the council 5 12 shall prepare a budget plan for the next fiscal period, 5 13 including the probable cost of all programs, projects, and 5 14 contracts and a recommended rate of assessment sufficient to 5 15 cover such costs. The council shall submit the proposed 5 16 budget to the secretary for review and comment. The secretary 5 17 may recommend programs, projects, and activities considered 5 18 appropriate. 5 19 9. The council shall keep minutes, books, and records that 5 20 clearly reflect all of the acts and transactions of the 5 21 council and make public such information. The books of the 5 22 council shall be audited by a certified public accountant at 5 23 least once each fiscal year and at such other times as the 5 24 council may designate. The expense of the audit shall be the 5 25 responsibility of the council. Copies of the audit shall be 5 26 provided to all members of the council, all qualified industry 5 27 organizations, and to other members of the industry upon 5 28 request. 5 29 Sec. 5. NEW SECTION. 159B.5 ASSESSMENTS. 5 30 1. The council shall set the assessment at a rate of one- 5 31 tenth of one cent per gallon of odorized propane. 5 32 2. An owner of odorized propane at the time of odorization 5 33 or at the time of import of odorized propane shall make the 5 34 assessment based on the volume of odorized propane sold for 5 35 use in this state. The assessment, when made, shall be listed 6 1 as a separate line item on the bill labeled "Iowa propane 6 2 education and research assessment". An assessment collected 6 3 by an owner from a purchaser of propane is payable to the 6 4 council on a monthly basis by the twenty-fifth day of the 6 5 month following the month of collection. If payment is not 6 6 made to the council by the due date under this subsection, an 6 7 interest penalty of one percent of any amount unpaid shall be 6 8 assessed against the owner for each month or fraction of a 6 9 month after the due date, until final payment is made. 6 10 3. The council may establish an alternative means of 6 11 collecting the assessment if another means is found to be more 6 12 efficient and effective. The council may establish a late 6 13 payment charge and rate of interest to be imposed on a person 6 14 who fails to remit or pay the council any amount due under 6 15 this chapter. 6 16 4. Pending disbursement pursuant to a program or project, 6 17 the council shall invest moneys collected through assessments, 6 18 and any other moneys received by the council, in any of the 6 19 following only: 6 20 a. Obligations of the United States or any agency of the 6 21 United States. 6 22 b. General obligations of any state or political 6 23 subdivision of any state. 6 24 c. Any interest-bearing account or certificate of deposit 6 25 of a bank that is a member of the federal reserve system. 6 26 d. Obligations fully guaranteed as to principal and 6 27 interest by the United States. 6 28 Sec. 6. NEW SECTION. 159B.6 COMPLIANCE. 6 29 The district court is vested with the jurisdiction 6 30 specifically to enforce this chapter and prevent or restrain 6 31 any person from violating this chapter. A successful action 6 32 for compliance under this section may also require payment by 6 33 the defendant of the costs incurred by the council in bringing 6 34 the action. 6 35 Sec. 7. NEW SECTION. 159B.7 LOBBYING RESTRICTIONS. 7 1 Moneys collected by the council shall not be used in any 7 2 manner for influencing legislation or elections, except that 7 3 the council may recommend to the secretary changes in this 7 4 chapter or other statutes that would further the purpose of 7 5 this chapter. 7 6 Sec. 8. NEW SECTION. 159B.8 PRICING. 7 7 In all cases, the price of propane shall be determined by 7 8 market forces. Consistent with antitrust laws, the council 7 9 shall not take any action and this chapter shall not be 7 10 interpreted as establishing an agreement to pass along to 7 11 consumers the cost of the assessment provided for in section 7 12 159B.5. 7 13 Sec. 9. NEW SECTION. 159B.9 RELATION TO OTHER PROGRAMS. 7 14 This chapter shall not be construed to preempt or supersede 7 15 any other program relating to propane education and research 7 16 organized and operated under the laws of this state. This 7 17 chapter shall be administered and construed as complimentary 7 18 to the federal Propane Education and Research Act of 1996, 15 7 19 U.S.C. } 6401 et seq. 7 20 Sec. 10. NEW SECTION. 159B.10 BOND. 7 21 Any person occupying a position of trust under any 7 22 provision of this chapter shall provide a bond in an amount 7 23 required by the council. The premium for the bond shall be 7 24 paid out of council funds. 7 25 Sec. 11. NEW SECTION. 159B.11 REPORT. 7 26 Each year the council shall prepare and submit a report 7 27 summarizing the activities of the council under this chapter 7 28 to the secretary and the auditor of state. The report shall 7 29 show all income, expenses, and other relevant information 7 30 concerning assessments collected and expended under this 7 31 chapter. 7 32 Sec. 12. NEW SECTION. 159B.12 NOT A STATE AGENCY. 7 33 The Iowa propane education and research council, if 7 34 created, is not a state agency. 7 35 Sec. 13. NEW SECTION. 159B.13 PENALTY. 8 1 A person who willfully violates this chapter or willfully 8 2 renders or furnishes a false or fraudulent report, statement, 8 3 or record required by the secretary pursuant to this chapter 8 4 commits a simple misdemeanor. 8 5 Sec. 14. NEW SECTION. 159B.14 REPEAL. 8 6 This chapter is repealed June 30, 2005. 8 7 EXPLANATION 8 8 This bill allows for the creation of the Iowa propane 8 9 education and research council. The bill provides that the 8 10 council is created only after approval in a referendum. 8 11 Approval by persons representing two-thirds of the total 8 12 volume of odorized propane sold in this state in the previous 8 13 year is required for approval. The referendum shall be 8 14 conducted by qualified industry organizations which are 8 15 defined as the Iowa propane gas association or similar 8 16 organizations representing the industry. On the council's own 8 17 initiative or on petition by retail marketers of propane, a 8 18 referendum may be conducted to determine whether the council 8 19 should be suspended or terminated. Approval by persons 8 20 representing one-half of the total volume of odorized propane 8 21 is required for approval of suspension or termination of the 8 22 council. 8 23 The bill provides that the council shall consist of seven 8 24 members selected by the qualified industry organizations with 8 25 five members representing retail marketers and two public 8 26 members. The secretary of agriculture shall serve as an ex 8 27 officio, nonvoting member. The bill provides that the members 8 28 shall serve three-year terms and shall not serve more than two 8 29 full consecutive terms. A former member may serve on the 8 30 council if the former member has not been a member for a 8 31 period of two years. The bill provides that public members on 8 32 the council shall receive a per diem and actual expenses in 8 33 performing official council functions. 8 34 The bill provides that the council shall develop programs 8 35 and projects relating to the enhancement of consumer and 9 1 employee safety and training, research and development of 9 2 clean and efficient propane equipment, and education of the 9 3 public regarding propane safety and other issues associated 9 4 with the use of propane. The bill provides that the council 9 5 may enter into agreements to administer the programs and 9 6 projects. The bill provides for council recordkeeping 9 7 requirements, auditing requirements, and reporting 9 8 requirements. 9 9 The bill provides that the council is authorized to levy an 9 10 assessment on odorized propane. The bill provides that moneys 9 11 collected through the assessments shall be used on council 9 12 programs and projects. 9 13 The bill provides that the district court has jurisdiction 9 14 for enforcement of the chapter. Moneys collected by the 9 15 council shall not be used for lobbying. The bill provides 9 16 that the assessments shall not be construed to be costs to be 9 17 passed on to the consumers. The bill provides that the 9 18 council is not a state agency and that a bond is required for 9 19 any person occupying a position of trust under the chapter. 9 20 The bill provides that it is a simple misdemeanor for a person 9 21 to violate any provision of the chapter. 9 22 The bill provides that new Code chapter 159B is repealed 9 23 June 30, 2005. 9 24 LSB 6931SV 78 9 25 tm/as/5
Text: SF02393 Text: SF02395 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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