Referendum Educational Information
Since the establishment of the Kentucky Propane Education & Research in 1998, the propane industry has advanced significantly. Consumer surveys have shown a dramatic increase in awareness of the many uses of propane as an energy source. To further this effort and to fight back against the "Electrify Everything" movement, KYPERC is conducting a multi-media campaign across the state. The campaign has generated more than 6,000,000 impressions in the state and includes 1,560 sponsorship advertisements for "This Old House" and "Ask This Old House" for the year. Propane: Energy for Everyone materials are also available to you at a discount so that you may incorporate them into your own marketing programs. All of this additional support comes from the benefits of having a Kentucky PERC program and through the support of the National PERC in providing support materials for the propane industry.
KY PERC initiatives, like the consumer rebates under the Propane Appliance Safe Installation Program, have grown new accounts for marketers and allowed for the inspection of existing systems for safety hazards. By providing cash rebates toward installation, propane marketers have had a strong tool for involvement in new construction and expansion of existing accounts.
Through KYPERC promotions, propane buses are now a part of 24 school district fleets with more each year. Each bus uses approximately 5,000 gallons of propane each year, making this a tremendous and growing market.
KY PERC is the only state organization to be awarded the prestigious Milford Therrell award twice for innovation in employee and consumer safety education and training. You may recall the Milford Therrell Award. In its very first year, KY PERC had the focus and commitment to implement Propane Emergencies training so successfully that National PERC and other state counterparts recognized it as the first recipient of this award. This training continues to be a focal point for the Council as thousands of Kentucky firefighters have been trained with the most up-to-date propane materials and techniques available.
You may also recall that the Certified Employee Training Program (CETP) costs have dramatically reduced training costs. KY PERC is the only state organization to provide CETP classes through an accredited post-secondary institution. Through its partnership with the Kentucky Community & Technical College System, Kentucky CETP classes include not only the classroom components, but also accredited practical examinations. This relieves marketers of liability for skills certification.
These are just a few of the programs and successes of KY PERC. Still, the work has just begun. In order to continue our work, we must once again pass a referendum among our industry this year, and once every five years, thereafter. The assessment of two tenths of a cent per gallon of odorized propane sold for final use in Kentucky must be approved by two-thirds of our propane industry based on gallons sold.
Remember that each "yes" vote counts and will keep us moving down the road to success. Please show your continued commitment to the propane industry by supporting the Kentucky Propane Education and Research Council as we celebrate 25 years of service..
The following Statutes are from KRS Chapter 234:
234.278 Referendum to permit assessment -- Purpose of assessments.
Producers, suppliers, and retail marketers of propane shall be permitted by referendum, subject to the provisions of KRS 234.270 to 234.302, to levy upon themselves an assessment for the purpose of financing or contributing toward the financing of a program of research, market development, and education to increase the consumption, use, sale, and markets for propane and toward the financing of programs to enhance consumer and employee education and safety.
Effective July 15, 1998.
234.280 Application to conduct referendum -- Content of application form -- Publication of form.
(1) Any existing industry trade organization which is fairly representative of the propane industry in Kentucky, such as the Kentucky Propane Gas Association, may at any time after July 15, 1998, make application to the commissioner on forms prescribed by the department for certification and approval for the purpose of conducting a referendum among producers, suppliers, and retail marketers upon the question of levying an assessment under the provisions of KRS 234.270 to 234.302 and collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
(a) Applicant's name;
(b) Applicant's address;
(d) Program to be undertaken;
(e) Brief statement of how the program is to be implemented;
(f) Referendum to be conducted on a statewide basis;
(g) Proposed effective date of the program; and
(h) Signature of the applicant.
(2) Upon receipt of the application, the commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt.
Effective: July 15, 1998
234.282 Association authorized to hold referendum.
Upon being certified by the commissioner, the association in KRS 234.280(1) shall be fully authorized and empowered to hold a referendum among producers, suppliers, and retail marketers on the question of whether the industry shall levy upon itself an assessment for the purpose stated in KRS 234.270 to 234.302.
Effective: July 15, 1998
234.284 Referendum to be statewide -- Basing voting rights -- Question for voters.
Any referendum conducted under the provisions of KRS 234.270 to 234.302 shall be held on a statewide basis. Voting rights in the referendum shall be based on the volume of propane produced or odorized propane sold in the Commonwealth in the previous calendar year and shall be proportional to the gallons sold. In the referendum, persons eligible for participation shall vote upon the question of whether there shall be levied an annual assessment in the amount set forth in the call for the referendum.
Effective: July 15, 1998
234.286 Commissioner to supervise referendum -- Expenses -- Conducting referendum -- Voter to certify volume of propane represented by vote -- Mechanism for notification of eligible voters.
(1) The manner, conduct, and management of any referendum held under the provisions of KRS 234.270 to 234.302 shall be under the supervision and direction of the commissioner. Any and all expenses in connection with the initial referendum shall be borne by the association conducting the referendum. Any and all expenses in connection with subsequent referenda shall be borne by the council.
(2) With respect to any referendum conducted under the provisions of KRS 234.270 to 234.302, the association or council responsible for the referendum shall select an independent auditing firm, subject to the approval of the commissioner, to conduct the referendum.
(3) All persons voting in the referendum shall certify to the independent auditing firm the volume of propane represented by their vote. The information provided under this subsection shall be considered proprietary and shall remain confidential.
(4) The association or council responsible for the referendum shall develop a mechanism for notifying those persons eligible to vote in the referendum. Notice of the referendum, at a minimum, shall be given to all retail marketers in Kentucky holding a "Class A" license from the department and notice shall be published in existing industry publications with significant circulation within the Commonwealth.
Effective: July 15, 1998
234.288 Referendum results -- Issuance of order -- Initial and annual assessments.
(1) The results of the referendum, as certified by the independent auditing firm, shall be submitted to the commissioner, within thirty (30) days of certification.
(2) For the purpose of the referendum, producers and suppliers shall be considered a single class. Upon approval of those persons representing two-thirds (2/3) of the total volume of odorized propane voted in the retail marketer class and approval of those persons representing two-thirds (2/3) of the total volume of propane voted in the producer and supplier class, the commissioner shall issue an order authorizing the assessment.
(3) The initial assessment proposed shall be no greater than one-tenth of one cent ($0.001) per gallon of odorized propane. Thereafter, the annual assessment shall be set by the council in an amount adequate to cover the cost of plans and programs developed by the council. In no event shall the annual assessment levied under the provisions of the referendum exceed one-half of one cent ($0.005) per gallon of odorized propane unless approved by the majority of those voting in both the retail marketer class and the producer and supplier class in a separate referendum. The increase in the annual assessment as provided for in this subsection is limited to one-tenth of one cent ($0.001) per year.
Effective July 15, 1998