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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 initial assessment at a rate
5 31 not greater than one-tenth of one cent per gallon of odorized
5 32 propane. Thereafter, the council shall set the annual
5 33 assessment at an amount sufficient to cover the cost of
5 34 programs and projects developed by the council. The
5 35 assessment shall not be greater than a rate of one-half cent
6 1 per gallon of odorized propane, unless approved by a majority
6 2 of those voting in a referendum conducted by an independent
6 3 auditing firm selected by the council in the same manner as
6 4 described in section 159B.3, subsection 1. In no case may the
6 5 assessment be raised by more than one-tenth of one cent per
6 6 gallon of odorized propane annually.
6 7 2. An owner of odorized propane at the time of odorization
6 8 or at the time of import of odorized propane shall make the
6 9 assessment based on the volume of odorized propane sold for
6 10 use in this state. The assessment, when made, shall be listed
6 11 as a separate line item on the bill labeled "Iowa propane
6 12 education and research assessment". An assessment collected
6 13 by an owner from a purchaser of propane is payable to the
6 14 council on a monthly basis by the twenty-fifth day of the
6 15 month following the month of collection. If payment is not
6 16 made to the council by the due date under this subsection, an
6 17 interest penalty of one percent of any amount unpaid shall be
6 18 assessed against the owner for each month or fraction of a
6 19 month after the due date, until final payment is made.
6 20 3. The council may establish an alternative means of
6 21 collecting the assessment if another means is found to be more
6 22 efficient and effective. The council may establish a late
6 23 payment charge and rate of interest to be imposed on a person
6 24 who fails to remit or pay the council any amount due under
6 25 this chapter.
6 26 4. Pending disbursement pursuant to a program or project,
6 27 the council shall invest moneys collected through assessments,
6 28 and any other moneys received by the council, in any of the
6 29 following only:
6 30 a. Obligations of the United States or any agency of the
6 31 United States.
6 32 b. General obligations of any state or political
6 33 subdivision of any state.
6 34 c. Any interest-bearing account or certificate of deposit
6 35 of a bank that is a member of the federal reserve system.
7 1 d. Obligations fully guaranteed as to principal and
7 2 interest by the United States.
7 3 Sec. 6. NEW SECTION. 159B.6 COMPLIANCE.
7 4 The district court is vested with the jurisdiction
7 5 specifically to enforce this chapter and prevent or restrain
7 6 any person from violating this chapter. A successful action
7 7 for compliance under this section may also require payment by
7 8 the defendant of the costs incurred by the council in bringing
7 9 the action.
7 10 Sec. 7. NEW SECTION. 159B.7 LOBBYING RESTRICTIONS.
7 11 Moneys collected by the council shall not be used in any
7 12 manner for influencing legislation or elections, except that
7 13 the council may recommend to the secretary changes in this
7 14 chapter or other statutes that would further the purpose of
7 15 this chapter.
7 16 Sec. 8. NEW SECTION. 159B.8 PRICING.
7 17 In all cases, the price of propane shall be determined by
7 18 market forces. Consistent with antitrust laws, the council
7 19 shall not take any action and this chapter shall not be
7 20 interpreted as establishing an agreement to pass along to
7 21 consumers the cost of the assessment provided for in section
7 22 159B.5.
7 23 Sec. 9. NEW SECTION. 159B.9 RELATION TO OTHER PROGRAMS.
7 24 This chapter shall not be construed to preempt or supersede
7 25 any other program relating to propane education and research
7 26 organized and operated under the laws of this state. This
7 27 chapter shall be administered and construed as complimentary
7 28 to the federal Propane Education and Research Act of 1996, 15
7 29 U.S.C. } 6401 et seq.
7 30 Sec. 10. NEW SECTION. 159B.10 BOND.
7 31 Any person occupying a position of trust under any
7 32 provision of this chapter shall provide a bond in an amount
7 33 required by the council. The premium for the bond shall be
7 34 paid out of council funds.
7 35 Sec. 11. NEW SECTION. 159B.11 REPORT.
8 1 Each year the council shall prepare and submit a report
8 2 summarizing the activities of the council under this chapter
8 3 to the secretary and the auditor of state. The report shall
8 4 show all income, expenses, and other relevant information
8 5 concerning assessments collected and expended under this
8 6 chapter.
8 7 Sec. 12. NEW SECTION. 159B.12 NOT A STATE AGENCY.
8 8 The Iowa propane education and research council, if
8 9 created, is not a state agency.
8 10 Sec. 13. NEW SECTION. 159B.13 PENALTY.
8 11 A person who willfully violates this chapter or willfully
8 12 renders or furnishes a false or fraudulent report, statement,
8 13 or record required by the secretary pursuant to this chapter
8 14 commits a simple misdemeanor.
8 15 EXPLANATION
8 16 This bill allows for the creation of the Iowa propane
8 17 education and research council. The bill provides that the
8 18 council is created only after approval in a referendum.
8 19 Approval by persons representing two-thirds of the total
8 20 volume of odorized propane sold in this state in the previous
8 21 year is required for approval. The referendum shall be
8 22 conducted by qualified industry organizations which are
8 23 defined as the Iowa propane gas association or similar
8 24 organizations representing the industry. On the council's own
8 25 initiative or on petition by retail marketers of propane, a
8 26 referendum may be conducted to determine whether the council
8 27 should be suspended or terminated. Approval by persons
8 28 representing one-half of the total volume of odorized propane
8 29 is required for approval of suspension or termination of the
8 30 council.
8 31 The bill provides that the council shall consist of seven
8 32 members selected by the qualified industry organizations with
8 33 five members representing retail marketers and two public
8 34 members. The secretary of agriculture shall serve as an ex
8 35 officio, nonvoting member. The bill provides that the members
9 1 shall serve three-year terms and shall not serve more than two
9 2 full consecutive terms. A former member may serve on the
9 3 council if the former member has not been a member for a
9 4 period of two years. The bill provides that public members on
9 5 the council shall receive a per diem and actual expenses in
9 6 performing official council functions.
9 7 The bill provides that the council shall develop programs
9 8 and projects relating to the enhancement of consumer and
9 9 employee safety and training, research and development of
9 10 clean and efficient propane equipment, and education of the
9 11 public regarding propane safety and other issues associated
9 12 with the use of propane. The bill provides that the council
9 13 may enter into agreements to administer the programs and
9 14 projects. The bill provides for council recordkeeping
9 15 requirements, auditing requirements, and reporting
9 16 requirements.
9 17 The bill provides that the council is authorized to levy an
9 18 assessment on odorized propane. The bill provides that moneys
9 19 collected through the assessments shall be used on council
9 20 programs and projects.
9 21 The bill provides that the district court has jurisdiction
9 22 for enforcement of the chapter. Moneys collected by the
9 23 council shall not be used for lobbying. The bill provides
9 24 that the assessments shall not be construed to be costs to be
9 25 passed on to the consumers. The bill provides that the
9 26 council is not a state agency and that a bond is required for
9 27 any person occupying a position of trust under the chapter.
9 28 The bill provides that it is a simple misdemeanor for a person
9 29 to violate any provision of the chapter.
9 30 LSB 1481SC 78
9 31 tm/jw/5
Text: SSB01011 Text: SSB01013 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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