Understanding the Qualified Industry Organization: Legal Definition and Importance

Q: Can any propane association be considered qualified?

No, only those that meet the specific criteria outlined in the law can be classified as such.

Q: How does this term affect my business?

Being part of a qualified organization can provide advocacy, funding opportunities, and compliance support.

Definition & Meaning

A qualified industry organization refers to specific associations that represent the interests of the propane industry in the United States. According to federal law, this term includes the National Propane Gas Association, the Gas Processors Association, or any successor associations. Additionally, it can refer to a collective group of retail marketers or producers who together account for at least 25 percent of the total volume of propane sold or produced in the country.

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Legal Use & context

This term is primarily used in the context of regulations and policies governing the propane industry. It plays a significant role in legal discussions related to trade, commerce, and industry standards. Understanding this term can be crucial for businesses involved in propane production or sales, as it may influence eligibility for funding, compliance with industry regulations, and participation in industry advocacy.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, a group of propane retailers in a state may form a qualified industry organization to advocate for favorable regulations. This organization could represent a significant portion of the propane market, thus qualifying under the federal definition.

(hypothetical example) A new association formed by several propane producers in the Midwest may qualify as a qualified industry organization if they collectively represent a sufficient volume of propane sales.

Relevant laws & statutes

The primary legal reference for the term "qualified industry organization" is found in 15 USCS § 6402 (8), which is part of the Propane Education and Research Act. This statute outlines the definitions and purposes related to the propane industry.

Comparison with related terms

Term	Definition	Key Difference
Industry Association	A group that advocates for the interests of a specific industry.	May not meet the volume threshold of 25 percent.
Trade Association	An organization that represents businesses in a specific trade.	Focuses more on business interests rather than volume representation.

Common misunderstandings

What to do if this term applies to you

If you are involved in the propane industry and believe your organization may qualify, consider reviewing your membership criteria and market share. You may also want to consult with legal professionals or industry experts to ensure compliance with relevant laws. For practical assistance, explore US Legal Forms' templates that can help you navigate industry regulations effectively.

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Quick facts

Definition: An organization representing a significant portion of the propane market.
Key Statute: 15 USCS § 6402 (8).
Market Share Requirement: At least 25 percent of propane sales or production.

Key takeaways

Frequently asked questions

What qualifies an organization as a qualified industry organization?

It must represent at least 25 percent of the propane market volume and be recognized by federal law.