AN ACT Relating to the retail sales of motor vehicle fuels; amending RCW 19.120.010; adding a new section to chapter 19.120 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 19.120 RCW to read as follows:

No motor fuel refiner-supplier may operate any retail motor fuel outlet in the state of Washington with company personnel, a subsidiary company, or a commissioned agent or under a contract with any person, firm, or corporation managing any such outlet on a fee arrangement with the motor fuel refiner-supplier when the combined retail sales of all motor fuel refiner-supplier operated retail outlets reaches twenty percent or more of the total volume sold state-wide as determined by the department of licensing using reported sales volume in a calendar year. The retail motor fuel outlet must be operated by a motor fuel retailer.

Sec. 2. Section 1, chapter 320, Laws of 1986 and RCW 19.120.010 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Advertisement" means any written or printed communication or any communication by means of recorded telephone messages or spoken on radio, television, or similar communication media published in connection with an offer or sale of a franchise.

(2) "Affiliate" means any person, firm, or corporation who controls or is controlled by any motor fuel refiner-supplier which shares a trademark with a motor fuel retailer, and includes any subsidiary or affiliated corporation in which the motor fuel refiner-supplier or its shareholders, officers, agents, or employees hold or control more than twenty-five percent of the voting shares.

(3) "Community interest" means a continuing financial interest between the motor fuel refiner-supplier and motor fuel retailer in the operation of the franchise business.

((~~(5)~~)) (4) "Motor fuel" means gasoline or diesel fuel of a type distributed for use in self-propelled motor vehicles and includes gasohol.

((~~(6)~~)) (5) "Motor fuel franchise" means any oral or written contract, either expressed or implied, between a motor fuel refiner-supplier and motor fuel retailer under which the motor fuel retailer is supplied motor fuel for resale to the public under a trademark owned or controlled by the motor fuel refiner-supplier or for sale on commission or for a fee to the public, or any agreements between a motor fuel refiner-supplier and motor fuel retailer under which the retailer is permitted to occupy premises owned, leased, or controlled by the refiner-supplier for the purpose of engaging in the retail sale of motor fuel under a trademark owned or controlled by the motor fuel refiner-supplier supplied by the motor fuel refiner-supplier.

((~~(7)~~)) (6) "Motor fuel refiner-supplier" means any person, firm, or corporation, including any affiliate of the person, firm, or corporation, engaged in the refining of crude oil into petroleum who supplies motor fuel for sale, consignment, or distribution through retail outlets.

((~~(8)~~)) (7) "Motor fuel retailer" means a person, firm, or corporation that resells motor fuel entirely at one or more retail motor fuel outlets pursuant to a motor fuel franchise entered into with a refiner-supplier.

((~~(9)~~)) (8) "Offer or offer to sell" includes every attempt or offer to dispose of or solicitation of an offer to buy a franchise or an interest in a franchise.

((~~(10)~~)) (9) "Person" means a natural person, corporation, partnership, trust, or other entity and in the case of an entity, it shall include any other entity which has a majority interest in such an entity or effectively controls such other entity as well as the individual officers, directors, and other persons in act of control of the activities of each such entity.

((~~(11)~~)) (10) "Price" means the net purchase price, after adjustment for commission, brokerage, rebate, discount, services or facilities furnished, or other such adjustment.

((~~(12)~~)) (11) "Publish" means publicly to issue or circulate by newspaper, mail, radio, or television or otherwise to disseminate to the public.

((~~(13)~~)) (12) "Retail motor fuel outlet" means any location where motor fuel is distributed for purposes other than resale.

((~~(14)~~)) (13) "Sale or sell" includes every contract of sale, contract to sell, or disposition of a franchise.

((~~(15)~~)) (14) "Trademark" means any trademark, trade name, service mark, or other identifying symbol or name.

NEW SECTION. Sec. 3. The department of licensing shall adopt rules under chapter 34.04 RCW to implement section 1 of this act.