Senate Study Bill 1113 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to propane inspection and regulation, imposing 1 an assessment, and making appropriations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1791XC (1) 88 gh/rn

S.F. _____ Section 1. NEW SECTION . 101.15 Propane industry oversight 1 committee. 2 1. The state fire marshal shall appoint a propane industry 3 oversight committee to provide technical expertise to the 4 state fire marshal to ensure that propane is used, installed, 5 and delivered safely. The committee shall be advisory and 6 shall assist the fire marshal in developing propane inspector 7 qualifications, providing propane inspector training, advising 8 the fire marshal of industry and regulatory changes, and 9 providing any other technical assistance as needed. 10 2. The membership of the committee shall be as follows: 11 a. Six members representing retail propane marketers as 12 defined in section 101C.2, subsection 12. Of these members, 13 two members shall represent interstate retail propane 14 marketers, two members shall represent intrastate retail 15 propane marketers, and two members shall represent agricultural 16 cooperatives. 17 b. One member representing a propane utilization equipment 18 marketer or manufacturer. 19 c. One member representing the propane insurance industry. 20 3. A member shall serve a term of three years. Vacancies 21 shall be filled for the unexpired term in the same manner as 22 the original appointment was made. 23 Sec. 2. NEW SECTION . 101.16 Propane inspector fund. 24 1. A propane inspector fund is created in the state treasury 25 under the control of the division of state fire marshal of 26 the department of public safety. The fund shall consist of 27 assessments collected pursuant to section 101.17 and any other 28 moneys available to and obtained or accepted for placement in 29 the fund. Moneys in the fund are appropriated to the division 30 of state fire marshal for the purposes specified in subsection 31 2. Notwithstanding section 8.33, moneys credited to the fund 32 that remain unexpended or unobligated at the end of a fiscal 33 year shall not revert to any other fund. Notwithstanding 34 section 12C.7, subsection 2, interest or earnings on moneys in 35 -1- LSB 1791XC (1) 88 gh/rn 1/ 3

S.F. _____ the fund shall be credited to the fund. 1 2. Moneys in the fund shall be used exclusively for 2 the state fire marshal to appoint one propane director and 3 three propane inspectors to assist the fire marshal in the 4 enforcement of applicable propane regulations, including 5 regulations covering inspections, investigations, education, 6 and training. The staff shall directly report to and work 7 under the supervision of the fire marshal. 8 Sec. 3. NEW SECTION . 101.17 Propane inspector assessment. 9 1. An assessment shall be made on propane to which an 10 odorant has been added and imported into the state. The 11 assessment shall be imposed at a rate of two-tenths of one 12 cent on each gallon of odorized propane imported. The owner 13 of odorized propane at the time of import shall calculate 14 the amount of the assessment based on the volume of odorized 15 propane being imported into the state. The assessment shall be 16 labeled “Iowa propane inspector assessment”. Assessments shall 17 be paid by the owners to the state treasury on a monthly basis 18 by the twenty-fifth day of the month following the month the 19 assessment was collected. If payment is not made to the state 20 treasury by the due date, as required by this subsection, an 21 interest penalty of one percent of any amount unpaid shall be 22 imposed against the owner for each month or fraction of a month 23 after the due date, until final payment is made. 24 2. The treasurer of state shall credit amounts collected 25 pursuant to this section to the propane inspector fund created 26 in section 101.16. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to propane inspection and regulation by 31 the state fire marshal. 32 The bill provides that the state fire marshal shall appoint a 33 propane industry oversight committee to advise the fire marshal 34 on inspector qualifications, training, industry and regulatory 35 -2- LSB 1791XC (1) 88 gh/rn 2/ 3

S.F. _____ changes, and other technical assistance. The committee shall 1 be composed of eight members that are representative of the 2 propane industry, as described in the bill. Members shall 3 serve a term of three years. 4 The bill establishes a propane inspector fund to consist 5 of assessments collected pursuant to the bill and any other 6 moneys obtained for placement in the fund. The fund shall 7 be under the control of the state fire marshal and shall be 8 used exclusively for the fire marshal to appoint one propane 9 director and three propane inspectors, working under the 10 supervision of the fire marshal, to assist in the enforcement 11 of propane regulations. 12 The bill requires odorized propane importers to pay an 13 assessment at a rate of two-tenths of one cent on each gallon 14 of odorized propane imported into the state as calculated at 15 the time of import. The assessment must be paid on a monthly 16 basis in the manner described in the bill. Failure to pay by 17 the due date shall require the importer to pay an interest 18 penalty of 1 percent of the unpaid assessment for each month or 19 fraction of the month until final payment is made. Assessments 20 collected pursuant to the bill shall be deposited in the 21 propane inspector fund. 22 -3- LSB 1791XC (1) 88 gh/rn 3/ 3