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PAG LIN 1 1 Section 1. NEW SECTION. 323B.1 SHORT TITLE. 1 2 This chapter shall be known and may be cited as the "Iowa 1 3 Fair Motor Fuel Marketing Act". 1 4 Sec. 2. NEW SECTION. 323B.2 LEGISLATIVE FINDINGS AND 1 5 INTENT. 1 6 1. The general assembly finds and declares all of the 1 7 following: 1 8 a. Marketing of motor fuel in the state of Iowa is 1 9 affected by the public interest and is vital to the state's 1 10 economic well-being. 1 11 b. The state of Iowa and petroleum marketers have invested 1 12 millions of dollars in maintaining an environmentally safe 1 13 delivery system for motor fuel to all areas of the state. 1 14 c. It is the policy of this state to promote the general 1 15 welfare through the prohibition of sales that create 1 16 monopolies or unfair methods of competition, in transactions 1 17 involving the sale of, or offer, or inducement to sell motor 1 18 fuel in the wholesale and retail markets in this state, and 1 19 the advertising, offering for sale, or sale of motor fuel 1 20 below cost or at a cost lower than that charged other persons 1 21 on the same marketing level is an unfair and deceptive 1 22 practice. 1 23 2. The purpose of the Iowa fair motor fuel marketing Act 1 24 is to carry out the policy stated in subsection 1 in the 1 25 public interest, providing for exceptions under certain 1 26 circumstances, and providing for penalties and enforcement. 1 27 Sec. 3. NEW SECTION. 323B.3 DEFINITIONS. 1 28 For purposes of this chapter, the following definitions 1 29 apply: 1 30 1. "Cost" means, as applied to the wholesale or retail 1 31 vendor of motor fuel, the actual current delivered invoice or 1 32 replacement cost, whichever is lower, without deducting 1 33 customary cash discounts, plus any excise or sales taxes or 1 34 fees imposed on such commodity, goods, wares, or merchandise 1 35 subsequent to the purchase of the commodity, goods, wares, or 2 1 merchandise and prior to the resale of the commodity, goods, 2 2 wares, or merchandise. 2 3 2. "Department" means the department of agriculture and 2 4 land stewardship. 2 5 3. "Motor fuel" means as defined in section 452A.2. 2 6 4. "Motor fuel pump" means a stationary pump, meter, or 2 7 similar measuring device used for measuring retail motor 2 8 vehicle fuel. 2 9 5. "Producer" means any person who is engaged in the 2 10 production of crude oil when it is produced, whether such 2 11 production occurs in this state or elsewhere, and includes any 2 12 affiliate of such person. 2 13 6. "Refiner" means any person engaged in the refining of 2 14 crude oil to produce motor fuel, whether or not such refining 2 15 occurs in this state, and includes any affiliate of such 2 16 person. 2 17 Sec. 4. NEW SECTION. 323B.4 UNLAWFUL FUEL SALES. 2 18 1. Any offer for sale of motor fuel by a refiner, 2 19 wholesaler, or retailer by way of posted price or indicating 2 20 meter that is below cost is a violation of this chapter unless 2 21 one of the following exceptions applies: 2 22 a. The offer to sell is an isolated transaction and not in 2 23 the usual course of business. 2 24 b. The offer to sell is pursuant to a bona fide clearance 2 25 sale for the purpose of discontinuing trade in such motor 2 26 fuel. 2 27 c. The motor fuel offered for sale is advertised or sold 2 28 as imperfect or damaged and the advertisement or offer to sell 2 29 states the imperfection or damage and the quantity of motor 2 30 fuel being sold. 2 31 d. The offer to sell is upon the final liquidation of a 2 32 business. 2 33 e. The offer to sell is by any fiduciary or other officer 2 34 of the court under the order or direction of a court. 2 35 f. The offer to sell is made in good faith to meet the 3 1 price of a competitor who is offering the same product. 3 2 2. a. A retail motor fuel outlet in this state shall be 3 3 operated by a retail motor fuel dealer. 3 4 b. A retail motor fuel outlet in this state may not be 3 5 operated by a producer or refiner of motor fuel in either of 3 6 the following manners: 3 7 (1) By a commissioned agent, company personnel, or a 3 8 subsidiary company of the producer or refiner. 3 9 (2) Pursuant to a contract with a person who manages the 3 10 retail motor fuel outlet on a fee arrangement with the 3 11 producer or refiner. 3 12 3. A retail motor fuel outlet is exempt from subsection 2 3 13 if, prior to July 1, 2002, the retail motor fuel outlet was 3 14 operated by a subsidiary of a producer or refiner of motor 3 15 fuel. 3 16 Sec. 5. NEW SECTION. 323B.5 PENALTIES. 3 17 A person found to be in violation of this chapter shall be 3 18 subject to a penalty by the department as follows: 3 19 1. For an initial violation, the motor fuel pumps at the 3 20 site of the violation shall be tagged and rendered inoperable 3 21 for twenty-four hours. 3 22 2. For a second violation within two years, the motor fuel 3 23 pumps at the site of the violation shall be tagged and 3 24 rendered inoperable for forty-eight hours. 3 25 3. For a third violation within two years, the motor fuel 3 26 pumps at the site of the violation shall be tagged and 3 27 rendered inoperable for seven days. 3 28 4. For a fourth violation within two years, the motor fuel 3 29 pumps at the site of the violation shall be tagged and 3 30 rendered inoperable for thirty days. 3 31 Sec. 6. NEW SECTION. 323B.6 RULES. 3 32 The department shall adopt rules pursuant to chapter 17A as 3 33 necessary to administer this chapter. 3 34 Sec. 7. EFFECTIVE DATE. This Act, being deemed of 3 35 immediate importance, takes effect upon enactment. 4 1 EXPLANATION 4 2 This bill relates to the marketing of motor fuel. 4 3 New Code section 323B.4 prohibits sales of motor fuel by 4 4 refiners, wholesalers, and retailers that are below cost 4 5 unless the offer to sell meets a specified exception: (1) it 4 6 is an isolated transaction not in the usual course of 4 7 business; (2) it is pursuant to a bona fide clearance sale for 4 8 the purpose of discontinuing business; (3) the goods are 4 9 advertised and sold as imperfect; (4) it is part of the final 4 10 liquidation of the business; (5) it is by a fiduciary or other 4 11 officer of the court under order or other direction of the 4 12 court; or (6) it is a good faith offer to meet the price of a 4 13 competitor offering the same product. 4 14 New Code section 323B.4 also requires a motor fuel outlet 4 15 to be operated by a retail motor fuel dealer, and requires 4 16 that it not be operated by a producer or a refiner either by a 4 17 commissioned agent, company personnel, or subsidiary company 4 18 of the producer or refiner or pursuant to a contract with a 4 19 person who manages the retail motor fuel outlet on a fee 4 20 arrangement with the producer or refiner. Motor fuel outlets 4 21 operated by a subsidiary of a producer or a refiner prior to 4 22 July 1, 2002, are exempt from this requirement, however. 4 23 Penalties for violations of Code section 323B.4 are set 4 24 forth in new Code section 323B.5, and involve tagging and 4 25 rendering the motor fuel pumps inoperable at the site of the 4 26 violation for periods of time ranging from 24 hours to 30 4 27 days, depending on whether the violation is a first, second, 4 28 third, or fourth violation within a two-year period. The 4 29 penalties are enforced by the department of agriculture and 4 30 land stewardship. 4 31 The bill also contains a short title, a statement of 4 32 legislative intent, and definitions. 4 33 The bill is effective upon enactment. 4 34 LSB 5538XS 79 4 35 jj/pj/5
Text: SF02232 Text: SF02234 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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