(1) There is established a propane education and research program to be administered by the Department of Insurance through the State Liquefied Compressed Gas Board, created in Section 75-57-101, Mississippi Code of 1972, for the purpose of promoting the growth and development of the propane industry in Mississippi.

(2) There is created in the State Treasury a special fund to be designated as the “Mississippi Propane Education and Research Fund.”

(3)

(a) There is imposed and levied an assessment of One-tenth Cent (/¢) per gallon on compressed gas except for compressed natural gas or liquefied natural gas. The assessment may be increased by not more than One-tenth Cent (/¢) per gallon per year and the total assessment shall not exceed One-half Cent (½¢) per gallon.

(b) Section 27-59-11(1), Mississippi Code of 1972. On or before the fifteenth day of each month the funds collected by the State Tax Commission during the previous month, less three and one-half percent (3-½%) of the gross amount collected, shall be deposited into the special fund created in subsection (2) of this section. The State Tax Commission may retain three and one-half percent (3-½%) of the funds collected under this section as administrative fees. The assessment shall accrue at the same time and in the same manner as the tax levied on compressed gas under the provisions of . On or before the fifteenth day of each month the funds collected by the State Tax Commission during the previous month, less three and one-half percent (3-½%) of the gross amount collected, shall be deposited into the special fund created in subsection (2) of this section. The State Tax Commission may retain three and one-half percent (3-½%) of the funds collected under this section as administrative fees.

(c) Disbursements from the special fund created in subsection (2) of this section shall be made upon warrants issued by the State Fiscal Officer upon requisitions signed by the Commissioner of Insurance, or his designee, in the manner provided by law. Any interest earned by investing the proceeds in such special fund shall be credited to such special fund and shall not be deposited in the State General Fund. The State Fiscal Officer may issue warrants for the payment of monies from the special fund, upon requisition by the Commissioner of Insurance, or his designee, for refunds to dealers as provided in subsection (4) of this section.

(4) Any propane dealer may request and receive a refund of the amount of assessment remitted from the sale of propane if he makes a written application with the Department of Insurance by the end of each quarter in which the sales were made, supported by bona fide copies of tax reports. The application forms shall be prepared by the Department of Insurance and shall be available to all retailers. All such applications shall be processed and refunds paid by the Department of Insurance within sixty (60) days after the funds have been received by the department.

(5) At the end of each quarter, the Department of Insurance shall make available to the State Liquefied Compressed Gas Board all unencumbered funds collected under the provisions of this section. The Department of Insurance may retain an amount not to exceed three and one-half percent (3-½%) of the funds collected under the provisions of this section as administrative fees.

(6)

(a) Any person liable for the assessment shall be subject to the same requirements and penalties set forth for distributors under the provisions of Section 27-59-1 et seq., Mississippi Code of 1972.

(b) The State Tax Commission is hereby authorized and empowered to promulgate all rules and regulations necessary for the collection of the assessment.

(7) The State Liquefied Compressed Gas Board shall establish, with the approval of the Commissioner of Insurance, rules and regulations necessary to carry out the provisions of this section.

(8) The State Liquefied Compressed Gas Board may expend the proceeds collected under this section only on research and development of more cost effective uses of propane and on educational programs, safety programs and market development of propane.

(9) This section shall not be implemented until such time as the State Liquefied Compressed Gas Board conducts an election by all licensed propane dealers in this state. Each license holder shall have one (1) vote in such election. A ballot shall be sent to each license holder by certified mail. A majority of those ballots returned within thirty (30) days after the ballots are received by the propane dealers must be in the affirmative before this section is effective. An additional election may be held by the State Liquefied Compressed Gas Board at such time as approved by the Commissioner of Insurance.

(10) The State Liquefied Compressed Gas Board shall notify the State Tax Commission in writing of the imposition of the assessment and of any increase of the assessment. The imposition of the assessment and any increase of the assessment shall become effective on the first day of the second month succeeding the month in which the notice to impose or increase the assessment was given.

(11) The State Liquefied Compressed Gas Board shall notify the State Tax Commission in writing of the abatement or reduction of the assessment. The abatement or reduction of the assessment shall become effective on the last day of the month succeeding the month in which such notice was given.

(12) From and after July 1, 2017, none of the monies deposited in the Mississippi Propane Education and Research Fund may be used to reimburse or otherwise defray any costs that the Department of Insurance may incur in administering the fund.