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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. 1 22 2. The purpose of the Iowa fair motor fuel marketing Act 1 23 is to carry out the policy stated in subsection 1 in the 1 24 public interest, providing for exceptions under certain 1 25 circumstances, and providing for penalties and enforcement. 1 26 Sec. 3. NEW SECTION. 323B.3 DEFINITIONS. 1 27 For purposes of this chapter, the following definitions 1 28 apply: 1 29 1. "Cost" means, as applied to the wholesale or retail 1 30 vendor of motor fuel, the actual current delivered invoice or 1 31 replacement cost, whichever is lower, without deducting 1 32 customary cash discounts, plus any excise or sales taxes or 1 33 fees imposed on such commodity, goods, wares, or merchandise 1 34 subsequent to the purchase of the commodity, goods, wares, or 1 35 merchandise and prior to the resale of the commodity, goods, 2 1 wares, or merchandise. 2 2 2. "Department" means the department of agriculture and 2 3 land stewardship. 2 4 3. "Motor fuel" means as defined in section 452A.2. 2 5 4. "Motor fuel pump" means a stationary pump, meter, or 2 6 similar measuring device used for measuring retail motor 2 7 vehicle fuel. 2 8 5. "Producer" means any person who is engaged in the 2 9 production of crude oil when it is produced, whether such 2 10 production occurs in this state or elsewhere, and includes any 2 11 affiliate of such person. 2 12 6. "Refiner" means any person engaged in the refining of 2 13 crude oil to produce motor fuel, whether or not such refining 2 14 occurs in this state, and includes any affiliate of such 2 15 person. 2 16 Sec. 4. NEW SECTION. 323B.4 UNLAWFUL FUEL SALES. 2 17 1. Any offer for sale of motor fuel by a refiner, 2 18 wholesaler, or retailer by way of posted price or indicating 2 19 meter that is below cost is a violation of this chapter unless 2 20 one of the following exceptions applies: 2 21 a. The offer to sell is an isolated transaction and not in 2 22 the usual course of business. 2 23 b. The offer to sell is pursuant to a bona fide clearance 2 24 sale for the purpose of discontinuing trade in such motor 2 25 fuel. 2 26 c. The motor fuel offered for sale is advertised or sold 2 27 as imperfect or damaged and the advertisement or offer to sell 2 28 states the imperfection or damage and the quantity of motor 2 29 fuel being sold. 2 30 d. The offer to sell is upon the final liquidation of a 2 31 business. 2 32 e. The offer to sell is by any fiduciary or other officer 2 33 of the court under the order or direction of a court. 2 34 f. The offer to sell is made in good faith to meet the 2 35 price of a competitor who is offering the same product. 3 1 2. a. A retail motor fuel outlet in this state shall be 3 2 operated by a retail motor fuel dealer. 3 3 b. A retail motor fuel outlet in this state shall not be 3 4 operated by a producer or refiner of motor fuel in either of 3 5 the following manners: 3 6 (1) By a commissioned agent, company personnel, or a 3 7 subsidiary company of the producer or refiner. 3 8 (2) Pursuant to a contract with a person who manages the 3 9 retail motor fuel outlet on a fee arrangement with the 3 10 producer or refiner. 3 11 3. A retail motor fuel outlet is exempt from subsection 2 3 12 if, prior to the effective date of this Act, the retail motor 3 13 fuel outlet was operated by a subsidiary of a producer or 3 14 refiner of motor fuel. 3 15 Sec. 5. NEW SECTION. 323B.5 PENALTIES. 3 16 A person found to be in violation of this chapter shall be 3 17 subject to a penalty by the department as follows: 3 18 1. For an initial violation, the motor fuel pumps at the 3 19 site of the violation shall be tagged and rendered inoperable 3 20 for twenty-four hours. 3 21 2. For a second violation within two years, the motor fuel 3 22 pumps at the site of the violation shall be tagged and 3 23 rendered inoperable for forty-eight hours. 3 24 3. For a third violation within two years, the motor fuel 3 25 pumps at the site of the violation shall be tagged and 3 26 rendered inoperable for seven days. 3 27 4. For a fourth violation within two years, the motor fuel 3 28 pumps at the site of the violation shall be tagged and 3 29 rendered inoperable for thirty days. 3 30 Sec. 6. NEW SECTION. 323B.6 RULES. 3 31 The department shall adopt rules pursuant to chapter 17A as 3 32 necessary to administer this chapter. 3 33 EXPLANATION 3 34 This bill relates to the marketing of motor fuel. 3 35 New Code section 323B.4 prohibits sales of motor fuel by 4 1 refiners, wholesalers, and retailers that are below cost 4 2 unless the offer to sell meets a specified exception: (1) it 4 3 is an isolated transaction not in the usual course of 4 4 business; (2) it is pursuant to a bona fide clearance sale for 4 5 the purpose of discontinuing business; (3) the goods are 4 6 advertised and sold as imperfect; (4) it is part of the final 4 7 liquidation of the business; (5) it is by a fiduciary or other 4 8 officer of the court under order or other direction of the 4 9 court; or (6) it is a good faith offer to meet the price of a 4 10 competitor offering the same product. 4 11 New Code section 323B.4 also requires a motor fuel outlet 4 12 to be operated by a retail motor fuel dealer, and requires 4 13 that it not be operated by a producer or a refiner either by a 4 14 commissioned agent, company personnel, or subsidiary company 4 15 of the producer or refiner or pursuant to a contract with a 4 16 person who manages the retail motor fuel outlet on a fee 4 17 arrangement with the producer or refiner. Motor fuel outlets 4 18 operated by a subsidiary of a producer or a refiner prior to 4 19 July 1, 2004, are exempt from this requirement, however. 4 20 Penalties for violations of Code section 323B.4 are set 4 21 forth in new Code section 323B.5, and involve tagging and 4 22 rendering the motor fuel pumps inoperable at the site of the 4 23 violation for periods of time ranging from 24 hours to 30 4 24 days, depending on whether the violation is a first, second, 4 25 third, or fourth violation within a two-year period. The 4 26 penalties are enforced by the department of agriculture and 4 27 land stewardship. 4 28 The bill also contains a short title, a statement of 4 29 legislative intent, and definitions. 4 30 LSB 5294XS 80 4 31 da/pj/5
Text: SF02217 Text: SF02219 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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