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Senate File 2394

Partial Bill History

Bill Text

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
     

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